Within a six month period in 2015 and 2016 both of my parents, John Kearney and Jo Kearney, passed away. I mention this and post it here, because many of you who will read this have done business with or have had contact with them over the years. It is a great loss to our community not to have them still around. I was very lucky to have had two great parents. They laid the foundation on which I have built a wonderful life and career. I worked with them both closely for over twenty years and together they were my steady and consistent mentor. They taught me mostly by example. Here are some of the lessons I learned from my parents on how to conduct business.
Lead with service. The number one goal is to be of service to each person who comes through the door. Whether it results in a sale or not.
Treat everyone well. Not just the people who you think can help you. It all comes around in the end.
Be grateful. Know how lucky we are to be doing what we do. Relish in the opportunity to meet nice and interesting people.
Love is reflected with love. It’s amazing how nice everyone is to work with when you don’t take the bait at any point to make it confrontational. The attitude that “everyone is a friend” makes it much easier to make friends. “The Golden Rule” works in all instances.
Go the extra mile. Take the time to do something special. Make someone’s day. Do the unexpected. Not only will others notice, you will feel great about yourself.
Be Consistent. Be someone people can count on. Being dependable and doing small things consistently adds up to big things over time.
See the best in others. Look for the best in others. Look to compliment, don’t look to criticize.
Have compassion for others. Give someone a break. Be kind. Do something unexpectedly nice. Take a chance on someone where others have passed. Use your intuition about people, not always their credit score.
Win-win-win negotiations are best. Be the first one to suggest a reasonable solution. Go more than half-way when needed. Take a long view and don’t take negotiations personally.
Have an abundance mentality – Be generous. Expect the good to continue and don’t be afraid to share it with others.
Do everything with integrity. Honesty, transparency, fairness are always the right things to do. If it seems like it’s in the grey area, it’s probably the wrong thing to do.
Don’t burn bridges. Treat everyone with respect. Never leave on a sour note. Don’t take advantage of an opportunity to say “I told you so”.
Work hard. Showing up every day and working hard when you are at work ensures longevity.
Have fun! Deciding to have fun wherever you are is a great recipe for having a happy life.
Set goals. If you can see it and believe it you can achieve it. Aim high and write them down.
Take a long view. Everything that you do should be congruent with the person who you want to become and should be leading you in the direction that you want to go.
Smile. A warm and genuine smile help every situation and it puts people at ease.
Take responsibility. Don’t pass the buck. Do more than your share. Be the first to find a solution and the last to place blame.
Be loyal. Take care of your clients, your friends and your family.
Obviously I have a wonderful legacy to fulfill and I’m striving every day to embody these principles into my thoughts and actions. In in doing so I remember and honor my parents.
During 2015 43% of all homes sold in the City of Boulder sold for more than asking price (see more context in my year end report) . Presumably most of these homes had multiple buyers making competing offers. So what does it take to be the winner of a multiple bid situation? Here are seven strategies for winning multiple offers. I liken these ideas to a set of arrows in a quiver.
Price – The most effective way to win the hearts and minds of a seller is to give them the most money. In theory it’s easy give them more than anyone else. In practice, given limited information, it’s very difficult to know what others who are exactly in your position will do. On average in 2015, those homes that sold for a price over asking price sold for 4% above. The range is from just a few hundred dollars over to 20% over. Now that’s using a sharp and effective arrow!
Escalation Clause – This could be a subheading under price but I think it’s worth giving it top billing. An escalation clause is a paragraph inserted in the contract which states; that the buyers agrees that if their offer isn’t high enough their offer will be automatically increased to beat any competing offers by $X,000 up to a cap price. Some sellers and their agents announce that they will not accept escalation clauses because they view them as a hedge (we are willing to go higher but only if we need to). For a buyer an escalation clause is a good way to state your intentions to the Seller without paying way more than you need to. If a buyer is going to use an escalation clause, I recommend that the contract price be strong as well. If you offer $10,000 lower than asking price but are willing to go up t0 $30,000 above if pushed the seller may not see this as earnest as an offer who offers $25,000 over the asking price right off the bat.
Financing – Sellers want the most money with the smallest potential of the contract cancelling. It doesn’t do any good to get a great price and then not be able to close. As a buyer you can tie into this fear by making your financing as clean as possible. Cash is king. And it removes many contingencies as well. But if you don’t have cash you can do well by having your financing in order. Get pre-approved not just pre-qualified. Have your lender picked out. Choose a local lender. Make sure your lender is available to answer questions about you.
Waive the Appraisal – Your lender will require an appraisal but if you are putting enough money down you can still waive the right to object to the appraisal. In a fast appreciating market the appraisal contingency is something sellers worry about and if the appraisal doesn’t match the price as explained in #1 above the transaction has a real chance of not closing. But as a buyer if you are putting enough money down (think at least 25%) you can talk to your lender and see if waiving the appraisal provision is a possibility.
Inspection – Some buyers come in really strong during the negotiations and then try to re-negotiate during the inspection period. As an earnest buyer you can promise the seller that you will not negotiate after the inspection. To do this we add a clause to the contract that states that the buyer will take the property in as-is condition but that they still retain the right to terminate the contract if they find something big or unexpected during the inspection.
Personal Letter – Earlier this year I had a listing that received three offers. The two best offers were nearly identical; same price, same escalation clause, closing date within a week of each other, local lenders with the same down payment. There was nothing in either of the contracts that was swaying the seller. The only difference was that one buyer sent with their offer a personal letter that introduced themselves and let the seller know how much they loved their home. Winner, winner chicken dinner!!
Clean Contract – Your agent needs to do their part by writing a “clean” offer. This means that the contract is filled out correctly, all required paperwork is attached, all dates in the offer are reasonable and make sense, all negotiable payments like HOA transfer fee and title closing fee are at least split if not. Small things that cost a few hundred dollars can make all the difference when you are competing. Also, if you like working with your agent chances are that the listing agent likes working with them as well. This cooperation is essential and it’s a feather in your cap to work with an agent who has experience and is known as easy to work with. Working with an agent with a tag line of “The Enforcer” (this is made up) may be an indication that they may like to fight and win and not cooperate. When given a choice agents like to work with other cooperative agents.
Good luck out there. These multiple offer strategies have worked well for my buyers over the past couple of years. If you are looking for quality representation please let me know.
At the beginning of October new guidelines took affect that changed the way that lenders interact with borrowers. The new TRID rules require earlier and supposedly easier to read disclosures to go to borrowers. Both at the beginning and the end of the process. These new disclosure requirements have lengthened the time it takes to close on a loan and now more than ever it’s important to choose your lender wisely.
In the past it was very common for lenders to swoop in to the closing at the last minute with documents and closing figures. Sometimes this happened the day of closing which left the buyer/borrow in limbo wondering how much money they really needed to bring to the closing. Many times buyers were forced to get a cashier’s check for an estimated amount plus a little extra to make sure and then get a refund from the title company. We’ll the good news is that these last minute shenanigans are no longer possible. It is now required that the buyer/borrower view and acknowledge the newly revised closing disclosure three business days in advance of the closing. This eliminates the last minute paperwork on the day of closing but it doesn’t seem to have eliminated the drama. It has just moved it up a few days.
As lenders are getting their act together and setting up systems around these new rules the disparity between good lenders and the not so good ones has become even more apparent. Here is my wishlist for a lender:
Do a thorough pre-qualification/pre-approval process so that there are no surprises later. This goes beyond checking boxes on a software program. This involves experience and knowledge that anticipates and handles potential stumbling blocks in advance. In my experience a brand new lender working as a part of a team in a bull-pen at a big national lender doesn’t excel here.
Communication throughout the process should be easy. Having one person who knows what is going on at all times has been the best scenario for me. Having a team or an office that is handling the loan leads to communication gaps that can last days.
Having someone who takes personal responsibility throughout the process allows things to get done when the chips are down. I have found that a local lender who is looking to build ongoing relationships with both the borrower and the agent will go the extra mile and get it done.
Having a lender who has a proven track record is, in my opinion more critical that saving an extra 1/8th of a % point on the rate. Many times the advertised rate doesn’t actually make it to the closing table and having a lender who will get the loan done on time is good insurance. Many buyers don’t realize that if their lender doesn’t perform it’s they who are on the hook. The penalties for not closing range from not closing to not closing AND losing their earnest money. The lender will not pay you back the lost $10,000 even though it was their fault.
I’m writing this because I have three bad experiences with out of state lenders this year that added stress to all involved and definitely put the buyers at financial risk. The first one was a big national company who advertises directly to the consumer on sports broadcasts. This lender seemed organized until a day before the appraisal deadline they asked me, the buyers agent for a list of local appraisers. The appraisal should have been ordered at least two weeks previously and they were just now realizing that they didn’t have one in the queue. It turns out that they needed my help because none of the local appraisers wanted to work with them. The appraisers that I talked to said that they were busy enough and didn’t think that this big out of state company would pay them if the property didn’t close. So in the end they found an appraisal company out of Minnesota, I’m in Colorado, to do the appraisal but that it wouldn’t be in until four days after our scheduled closing date! We were able to extend and close two weeks late but it certainly wasn’t convenient and the buyers almost lost a great price on their townhome.
The second and third instances were with the same bank. This out of state bank offered a great deal to physicians. But their processes were so bad that both closings were delayed and it took some major hand holding by myself and the buyers in order to get it closed. One was a week late and the other was three weeks late. In both instances the buyers were able to get an extension (vacant homes) but it cost them on a per-diem basis. The most frustrating thing about this bank was that there was no-body who took personal responsibility and their internal communication between departments was really bad. When the files went to underwriting they would disappear behind the dark side of the moon for days and or weeks with no news leaking. As we were working hard to finally get a closing disclosure signed the person who was working on it sent it to the title company and then left for the day. Of course there were a few mistakes but nobody to fix them. If it didn’t get taken care of that night it would mean that the closing would move from Friday to Monday and the buyer would incur an extra $600 in fees. Luckily at this point the lead lender was able to rouse some after hours people to make the changes and we closed.
If you’d like to avoid this type of drama use a good local lender. Yes, I have some recommendations. Just ask.
Most people head to Chautauqua Park to take a hike. Here is a different take on the enjoying this beautiful part of Boulder Colorado. Here is a detailed walking tour starting from the Chautauqua Dining Hall that heads through the neighborhood that is closest to the park.
Begin at the Chautauqua Dining Hall within Chautauqua Park. The Park is located at 9th and Baseline. There is free parking in the area. From the Dining Hall head east (away from the mountains) toward the playground and walk past the tennis court.
At 12th Street take a left and start heading downhill.
Once you pass a house or two take a right on Columbine Ave. for one block. I especially like this area so you may want to wander a bit on your own before you…
Take a left on 13th Street and cross baseline Road (Note, there is no cross walk here so if you need extra time crossing head back up toward the park for a crosswalk).
Take a left on Cascade and enjoy the walk back towards Flagstaff Mountain on this nice wide street. At 6th Street continue West even though it says it isn’t a through street. homes.
At the “T” take a right on Willowbrook . This tucked away street is especially charming.
Then take a right on Park. You are now headed downhill for a short stretch and then…
Take a right onto Aurora Avenue. This part of the neighborhood has some nice wild areas in people’s back yards and bears and other critters find this a great place to spend some time. Before you head back up a hill.
Take a Left on 6th This narrow street winds downhill and halfway it turns into Rosehill Drive. You will see a mix of homes here from modern and new to the only log home that I know of in Boulder.
Take a right onto College this street isn’t marked but at the intersection you can see the schoolyard of Foothills Elementary. Head toward the cemetery.
Take a right onto 8thGet ready for your uphill portion of the walk. As you walk you will see many remodeled homes and a few original cottages as well.
Take a left on Aurora then a Right on Grant – Grant is one way going the wrong way so if you are driving this route continue one block further to 9th. Grant will continue up the hill and take you directly back to Chautauqua Park.
On Saturday September 12th Neil Kearney appeared on Tiny House Hunting on the FYI Network. The show was filmed back in May and features two bluegrass musicians from the local band The Railsplitters looking for a tiny home. Neil served as the tour guide and broker on the nationally broadcast show.
The episode shows Neil leading Lauren and Christine through three tiny homes in Boulder County. The price range for the houses was $50,000 and did not include the land. It was a really fun experience to see how a show is put together.
the Dining Hall head east (away from the mountains) toward the playground and walk past the tennis court.
new to the only log home that I know of in Boulder.
