real

OK to take a contingency offer?

by John Rice

Well, I don’t really like to do it. Sure, an offer without that type of contingency is better, but there is a good side to this type of contract. Guess what it is? The buyer will typically pay you more with a contingency to sell or close their old house than a regular buyer will without that contingency.

I see it all the time. A buyer with a house to sell or close gets really nervous about not knowing where they will be living. They are desperate to find a house and will pay top dollar for the mental peace of knowing where they are going to land.

The bummer part is if the deal on their old house falls apart, so does your deal. There is an upside though, and it is the home inspection. If the inspection goes okay on the buyer’s old house, it typically means it will too on your house. Short of some catastrophic issue, a buyer will not walk away from your house. Why? There is not enough time to find another house prior to closing their old house…..and remember, they did all this because they do not want to be homeless once they close on their old house.

Decor can make or break the sale of your house

by John Rice

This past weekend, I was out with a young couple. We went in two houses in the same neighborhood that happen to be the exact same floor plan. There were some minor differences. One had a tiled backsplash, trendy furniture and finishes.  The other was very plain and was decorated with an older vibe……..guess I’d call it Early American Yard Sale. Guess which one my young couple liked with the most? When the agent for the “Older House” asked for feedback, I told her about this and suggested the seller make some changes. The most likely buyers in this price range and neighborhood are first time Gen Z buyers.

So, if you are selling, think about your buyer and make any needed changes that will make your house more appealing to them. First time buyers are mostly buying houses from Millennials, Millennials are buying houses from Gen X and Boomers. It is important to make your house appealing to each group as they move up the property ladder.

What I like about a contingency contract

by John Rice

Well, I don’t really like them, but there is a good side to this type of contract if you are the seller.  Guess what it is? The buyer will typically pay you more with a contingency to sell their house first than they would without it.

I see it all the time. A buyer with a house to sell gets really nervous about not knowing where they will be living once they sell their old home. Now, unless the buyer already has a contract on the house they are selling, I always counter back with a kickout clause.  That basically means that IF the seller would like to sell the house to another buyer who does not have a contingency, they give the contingency buyer a certain amount of time to remove the contingency or back out of the deal. 

Another thing I like is that IF the contingency buyer can and does remove their contingency,  you have a back up buyer. Sometimes it helps when negotiating repairs if the buyer knows there is somebody else wanting the house if the deal falls apart!

I don’t really care for this kind of contract though when I am working with a buyer…..for all the same reasons. When I have a buyer who wants to write a contingency offer, I usually try to get them to just wait until we sell their house first. Here is why I don’t think they are a good idea for the buyer who can’t possibly remove the contingency if needed: Any decent realtor is going to counter back with a kickout clause. That means that if another buyer comes along they will lose the house. If no such buyer comes along, that means that the house would still be there when the buyer’s old house eventually sells, and they could probably strike a better deal at that point.

Happy 20th Realtor Anniversary to me!

by John Rice

This month marks my 20th year as a Realtor.

I had always wanted to be in real estate. I wanted to do it all. I wanted to be a Realtor, renovate houses, be a landlord and build houses. I have done all of those other than building a house. Guess there is still time.

When I was in high school, one of my favorite things to do was skip school and drive around neighborhoods all over town. I got to where I knew most every street. One day a friend of mine and I were talking about where something was and I started naming streets and talking about the area. He said I was quite “The LEXpert.” Thank you Bo List. I had no idea that one day I would trademark that name for my brokerage.

Many other realtors back then didn’t think I would make it. Why? I did not want to waste my time doing the old school versions of making Tiktok reels, which were mailing people stuff throughout the year like UK sports schedules, calendars and junk to remind them you are a realtor. I remember saying that if my clients didn’t remember me when it came time to buy or sell, or when their friends or family asked for a recommendation, then I didn’t deserve to be remembered. Guess it worked since I rarely have a client who hasn’t used me before or hasn’t been sent by somebody who has.

Those early years were fun. Everything was an adventure and new. I sure learned a lot about myself, others, houses, mortgages, title work and about everything else a good realtor needs to know about.

I’ve been told I should write a book someday about my adventures. Maybe I will. I could go on and on about many of them here but I’ll save you the time. I’ve been stuck in an elevator, opened doors in houses and found people asleep, I’ve chased pets that have escaped, I’ve been chased by pets, my car has been keyed while showing a house, and I once found a naked guy playing guitar in a house that was supposed to be vacant. Sound like a book you might buy?

I could not have gotten here without a whole lot of people. Clearly my parents are at the top of that list. My wife put up with me being gone many evenings over the years and always having to reply to calls/texts during every vacation we have ever been on since I got my real estate license. Many friends would watch my two sons when they were young so I could go show houses when my wife was at work….the Ponders, the Boyds, The Davises, The Jones, The Leahys, Amanda Brady. I have Kris Vanzant and the whole Vanzant family to thank for giving a loud and obnoxious guy in shorts and sandals a chance to work with them and learn from their real estate wisdom. I also have my best friend Shaun Ring to thank. He is the one who said back in about 2009 that I should do this new thing called blogging. He has also said I should have a podcast, but nah. He is a realtor who got into this about the same time I did so Happy 20th Anniversary to him as well. His first sale was my first listing. It has been a great 20 years with him. And then there is you. I reckon if you are reading this, you are a friend, client or just somebody who cares enough to get this far into this post.

I will be a very old man 20 years from now. I plan on still being here though to write a little about what the next 20 years holds for me.

Things you hear when I am your realtor

by John Rice

1)  “Don’t buy a 2 bedroom house.” They are harder to sell when most every buyer and their realtor enters “3” for the minimum bedroom count on searches. A two bedroom listings is like playing Marco Polo alone. You’re shouting Marco, but there is nobody listening to reply with Polo.

2)  “If you buy a house that had been on the market for a long time and was realistically priced, you will have the same thing happen to you when you go to sell.” I find usually that means there is something odd about the house that most buyers don’t want, or else it would have sold sooner.

3)  “It is good to be in multiple offers when in a slow to balanced market.”  My experience tells me that when this happens in a slow to balanced market, you either have a fantastic house or one that is priced below market. When you go to sell you will either have a house that everybody wants or are buying it right, or maybe both!

4)  “If you have to use the word ‘Except’ when you describe your purchase, it was a bad one.”  “Except” means there is some major negative that will bite you on the bum if you need to sell in a slow market. “We got a great house…..EXCEPT for the tiny yard…..EXCEPT for backing to the loading docks of a grocery store…..EXCEPT for being on a busy road.”

5)  “Avoid a bad school district.” There are exceptions here, such as a condo complex that appeals mainly to empty nesters. However, if you have a house where the target buyer will likely have kids, it will be important to them even if it wasn’t to you. And notice what I did not say. I did not say to buy only in the best district. Why? Because most buyers with kids are okay with an average or better performing school, they just don’t want a poorly performing one.

6)  “A fixer upper isn’t always a bargain.”  I learned this one the hard way long before I got into real estate. If you buy a house for 80% of the potential market value, but must spend the 20% savings to make it just as good as any other house on the street, all you have gained is experience that will help you if you ever decide to become a realtor.

7)  “Buying the least house in the best neighborhood doesn’t always make sense.” This one runs contrary to what most people think. The reality is that the typical buyer for the nicer neighborhood is going to find your house plain or too small. I see it all the time where people will pick the better house in a lesser neighborhood over the lesser house in the better neighborhood for the same price.

So, follow these rules and you should be on a good start to not losing your shirt when you need to sell!