retire in lexington

Is it turning to a Buyer’s Market?

by John Rice

Short answer: It depends on the house.

Long answer: I read an article this morning asking this same question. It had all the usual data in any article related to the nationwide real estate market. Average days on market, Average sale price compared to previous years, the number of listings compared to previous years……blah blah blah.

None of that really matters. Why? Because no two houses and no two markets are the same. There is no average house. Average means a composite of all data. It does not look at each house individually. Do you know who does look at each house individually? Buyers do.

A buyer looks at every house within their budget and decides which one they want to buy. Let’s say they look at 10 houses. They are only buying one so they pick the best one. Do you know what else happens? Usually every buyer in that same price range also picks the same best one. That means we have multiple buyers competing for the best houses on the market. Meanwhile, the rest of the houses sit there and dilute all those averages so the media can make illogical conclusions to share with the world.

I have been a realtor for 20 years. It was a Seller’s Market when I started. Then a Buyer’s Market. Then an EXTREME Buyer’s Market. Then a stable market. Then it slowly built into the strongest Seller’s Market ever. Now, more than ever, we sort of have two markets. If you want the best house in the best neighborhood, you better be prepared to go over the list price and be flexible on anything important to the seller. If you are not picky, make a low offer on one of those houses that nobody else has wanted. After 20 years of this, I can tell you that when you go to sell whatever house you decide to buy, picking the best one will always have been the wisest decision. The best houses will always be worth the most, be the easiest to sell, and will have the broadest appeal.

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.

It’s all about trust & credibility

by John Rice

Well, it finally paid off today. In a big way too!

I am all about keeping the trust I work so hard to establish with my clients. I want them to know I am looking out for them. I often look for ways to reinforce that vibe.

Let me give you a little background about this story so you’ll understand how me spending the money for a service call to have an air conditioner looked at turned out to be a fantastic decision.

I have a client who is buying a house. We had it inspected. The inspector said the copper had been cut out of the air conditioner lines. After informing the seller’s realtor about it, they had their HVAC person come out to inspected the unit. Their HVAC person said the lines were there and all was well. 

 Since we had opposing opinions about the lines, I decided to send my HVAC person out. I told my client I had no reason to believe what the seller’s realtor said was untrue, but I wanted to prove it to them. I was really expecting the lines to be there and all to be well. It was really about putting my client’s mind at ease that all was well………..

Only all wasn’t well. Turns out the copper lines were missing. Probably recycled by now and the thief that took them has already spent the money. My HVAC guy said it would be a few thousand dollars to get it working again.

I am so glad I decided to get this checked out myself. Not that I thought there was any deception here. This was just one of those things where the person checking it earlier didn’t investigate all that well and my realtor-friend passed along the info they were told. If anybody is to blame it would be the HVAC person who said it worked just fine. (So, realtor-friend, I am not pointing any fingers at you if you are reading this.)

Can you imagine if my client had closed on the house tomorrow, turned on the air, and it not work? Then find out they needed to spend that much money? Not only would that have been devastating, it would have killed any credibility and trust I had built with them. In the end, it was worth every penny of the service call to guarantee that my client’s wallet wouldn’t be drained, their house to be cool, and to maintain the trusting relationship we have.

Neutral or Character for Resale?

by John Rice

I had a chance to catch up with an old friend recently. This guy makes fine furniture and cabinets for a living. He was showing me all the things he has done to his house. It was pretty sweet. Not something you see everyday. Loads of character. Then he says to me that he doesn’t get this going neutral for resale thing. He just does what he likes. He then went on to say that the last house he had, he sold to the first person that saw it for top dollar. I’m usually the one saying go neutral and play it safe, but like so much in life, there are exceptions.

I think what my friend didn’t realize is that not everybody has such great taste. His house really rocked because all the work he did was so excellent and the house was full of hand-made furniture. Not everybody can pull that off……I know I couldn’t!

Most buyers are happy to have some common updates when they go looking for a house. It is safe to go neutral because that has the broadest appeal. But, I will say from experience that when a buyer walks into a house that has enough character to be remembered after they leave, they really like it or they really don’t. 

I sold a place recently that had a lot of character. Hardwood floors, unique lighting, a sunroom, a koi pond, a heavily landscaped backyard. Those sellers had great taste too. Their house really stood out as a winner. I’ve also seen several houses that the seller went with their own sense of style, and that is what made their house difficult to sell. 

So, if you are going to throw caution to the wind and go with something out of the ordinary, here is my advice: Make the whole house work together. Don’t do one room at a time without regard to how it relates to the rest of the house. No 4 different types of flooring or anything way random like that. The house will come across like you just went to Lowe’s and bought what was on clearance. Remember that a buyer is walking through your whole house and in their mind, they don’t separate the rooms mentally like we all do once we actually live in a house. 

Well, I hope I’m not contradicting myself too much here. I guess the bottom line is that playing it safe is fine….maybe a little boring, but fine. Character is a gamble. If you are planning on being in your current place for only a few years, go safe. If you want a house with character & will be there for a longer time, go for it. Chances are what you pick will be outdated/worn out by the time you sell, and you’ll get to enjoy it while you live there.

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.