by Neil Kearney | Oct 24, 2013 | General Real Estate Advice |
An out of state client recently asked me to get a quote for the replacement of two large windows for the house he owns and rents out in Colorado. In addition to them being old and inefficient, they don’t lock correctly. He wanted new vinyl windows. I wasn’t sure where to start so I typed in “replacement windows lafayette” into Google. The first name to come up was a company out of a northern Denver suburb that I had heard advertising on radio so I thought I would give them a call first.
Company 1:
I was very up front with them about who I was and what I was looking for. After taking my information down they asked me to hold while they checked their schedule.
When they came back I was asked whether I had authority to make a decision on the windows. I said no. I was asked to hold.
They then asked if the owner would be able to come to the appointment as well. I reminded them that the owner was out of state and that they probably wouldn’t want to make a special trip back for this purpose. (tongue firmly in cheek) I was asked to hold.
When they came back they said that they wouldn’t be able to schedule an appointment with me unless I had authority to make a decision on the spot. With that my hair stood up on my neck. And to think I was so close to meeting with their highly trained salesman who would have loved to put me in a beautiful set of windows on the spot! Thanks for nothing.
Company 2:
Fresh on the heels of making the first call, I called a local glass company to try my luck. I gave them the same information and was told that the estimator was out. I left my name, number and address and in less than two minutes I was off the phone.
I received a call the next morning and I was able to very quickly schedule an appointment. The day of the appointment the estimator showed up 5 minutes early, made some measurements asked what I was looking for and then left. No pressure, no up sell. They were there to serve.
This experience gave me a great example of the difference between a company with a sales mentality and one with a service mentality. Zig Ziglar always said “that if you help enough people get what they want you will have everything in the world that you want”. This is so true!
I didn’t want to be pressured, or sold something. I certainly didn’t want the pressure of evaluating a “one night only” special deal with no chance to do my research. All I wanted was to be able to get a reasonable price on a few new windows with the least hassle possible and Company 2 was able to do that for me.
Think about your purchase transactions (cars, appliances, technology etc.) and you will agree that the ones where you felt “served” were positive and the ones where you felt “sold” were not so good.
This got me to thinking about my job. As a Realtor, my job is to help people buy and sell homes. Most people would characterize what I do as a sales job. But I see it differently. My first goal every day is to be of service. I have a long term frame of reference and I know if I can serve people today in any capacity with honest motives, that I will be rewarded for those efforts sometime down the line. For me, it’s less about karma than it is the principle of the sowing and the reaping. One comes before the other. I’m here to serve in a totally transparent, no pressure way. I think people can tell the difference.
See also Kearney Realty’s core values.
by Neil Kearney | Oct 3, 2013 | For Buyers, For Sellers |
Why I Love Being a Realtor
My plan coming out of college was to be a real estate agent long enough to put myself through graduate school. I did just that, and after four years of night school I had a freshly minted MBA and no desire to do anything else but to continue on my path in real estate. Sixteen years later (24 in all), I still feel the same way. I’m really lucky to love going to work every day and here is why. I get to work with great people. I get to be creative, I get to work for myself and…
On any given day and within any given day I’m a:
- CEO
- Janitor
- Customer Service Representative
- Accountant
- Web designer
- Graphic Designer
- Counselor
- Chauffeur
- IT troubleshooter
- Confidant
- Furniture Mover
- Problem Solver
- Marketing Specialist
- Blog Writer
- Public Speaker
- Video Editor
- Social Media Director
- Board Member
- Ethics Committee Chairman
- Recruiter
- Negotiator
- Decorator
- Sales Person
- Copy Writer
- Database Specialist
- Photographer
- Advisor
- Office Manager
- Transaction Coordinator
- Sign Installer
- Researcher
- Strategic Planner
- Manager
- Bathroom cleaner
- Babysitter
Each day I am responsible for putting forth a professional effort in an increasingly competitive market. The perks are many and as you can see the variety and scope of what I do are large. I’m apt to work seven days a week for weeks on end, answer work emails at 11 pm, take business calls at 7:30 in the morning. But I also get to arrange my schedule so that I can watch most of my kids games and go on vacation without asking for permission. The responsibility to my clients and my personal code of excellence are my only boss. And I wouldn’t have it any other way!
by Neil Kearney | Oct 2, 2013 | Boulder Real Estate, General Real Estate Advice |
This is a follow-up on my previous post on the floods we had locally in September.
Many homes that were affected by water damage had never had any water infiltration previously. The combination of sustained rain, rising ground water and in some cases sewer backups caused a litany of water problems throughout the area. On my street about one in four houses was affected so it’s not fair to say only certain areas were hit or that others were dry. It was a regional problem with tens of thousands of homes affected.
So how will this affect a homeowner as they look to sell a home that was damaged and how will buyers view those homes. Three words come to mind: cleanup, documentation and disclosure.
In order for a buyer to feel good about a home that has had extensive water damage they will need to know what happened, how it was cleaned up and how it can be prevented from happening again. The proper cleanup should have started weeks ago by removing everything that was wet. This includes personal belongings like boxes, bedding, furniture but more importantly means carpet, baseboards, drywall and insulation. Once all porous materials are removed they must be dried out thoroughly and treated with a anti-mold solution. In addition all concrete needs to be cleaned with a bleach solution (1 cup to every 5 gallons of water). Once the cleaning and drying is complete the finishes are ready to be re-done with new materials.
While everything is fresh in your memory it would be a really good idea to document exactly what happened to your house. This should take the form of a written documents supported by photos at every stage of the process. In my experience, the more a buyer knows and the more forthright they think the seller is being the less spooked they will get during the purchase process.
Sellers are required by Colorado law to disclose every material fact of the house. Most sellers satisfy their disclosure requirement by filling out the Sellers Property Disclosure form. The second question on this form is: “Do the following conditions now exist or have they ever existed: Moisture and/or water problems”. The answer for so many of us (me included) is now a resounding YES. But if you left it at that, a check mark I think a buyer would still have many questions. So this is when your documentation comes in to tell the buyer 1) How it happened 2) How it was cleaned up 3) What was done so that it won’t happen again. Not only would you have fulfilled your statutory obligation you would have made the buyer feel more comfortable about what happened. The goal being that once everything is laid out in detail it is a non-issue.
UPDATE: Boulder County has created a form that gives a format for documentation of the water damage remediation. To view and use the form click on this link moldremediation.
by Neil Kearney | Apr 2, 2013 | For Sellers, General Real Estate Advice, Real Estate 101, Uncategorized |
Most homeowners throughout the United States are having a collective sigh of relief. The home sales market is recovering and prices are rebounding. Between good news on the home front and a strong bull stock market, many people have a positive outlook on their personal finances. This is called the wealth effect and the result is a loosening of the household wallet.
I don’t sell cars, appliances or stocks so I will comment on what I know and work with every day. In a recent post I commented on the best practices of the home buyer in a hot real estate market. Today I’m going to share my ideas on how to be a smart home seller in a sellers market.
Price it Right
In the Boulder area real estate market we are seeing very low inventory and high demand. This causes a shortage of homes and results in smart sellers getting multiple offers and selling their homes for more than they thought they might.
But this isn’t happening to all sellers. Here is a scenario I’m seeing a lot right now – Mr. and Mrs. Seller recognize that the market conditions favor them so they decide to price their home 10 – 20% higher than what the recent sales in the neighborhood show. Buyers come out to see the home in great numbers over the first week and the general sentiment is that the house would be acceptable but it’s not a house they want to break the neighborhood record on and they move on. The Sellers recognize a few weeks later that they are not going to get their “dream price” so they reduce it by 5%. Still too high for the market but by this time the market wave of activity for a new listing has passed and they are chasing.
A smart seller in this market looks at the recent sales and the competition with their Realtor and decides on a fair market value. They recognize that the market will bear a good price but they know that the house must appraise and be in good condition. If it is listed at a reasonable price near market value and in good condition there is a good chance there will be multiple offers.
Take Advantage of the First Wave
As I mentioned above there is a timeline for new listings. In basic terms here is how it works and why it is important.
At any one time there are (hopefully) many buyers who are in the market for homes in any given area or price range. In a market with low inventory they soon sift through the current listings (either in person or online) and decide that they are not willing to buy any of the current homes on the market. So they focus on what is coming on the market. Here is where a good Realtor is invaluable. This buyer cannot wait for an open house or wait for the Sunday paper. Buyers are trolling online at all times. I have automatic searches sending results to hot buyers three times a day. So when a new listing hits the market buyers flock to see if this is the “one”. If it is they want to be first. The current buyers waiting for new listings are the first wave and right now it is a strong wave that lasts 3-4 days and comes in strong. In this market it is not uncommon to have 15 showings within the first four days. These are the most likely buyers.
If a home lasts through the first wave without an offer you know something is off (price, condition, location). After the first wave passes you, as a seller, are counting on people who are new buyers and those who were not available to see the property over the first days. This is a smaller pool. You are in the backwash.
Multiple Offers
If you have priced the home correctly the hope is to get multiple offers on your home. This puts the seller in a advantageous position and with guidance from their Realtor, they can compare the merits of multiple offers and choose the best one. I find it’s best to give all potential buyers in a multiple offer situation equal information. For me, that means each offering party knows when the offers will be considered and how many offers they are competing against. As a sellers agent I encourage buyers to bring their highest and best offers and give everyone a chance to revise their offers if they choose to do so. I then go through each offer with the seller and let them decide which offer gives them the best chance to close for the most money.
Get a Backup Offer
There are many reasons that a house that is under contract doesn’t close. Here are a few:
- Buyers Remorse – This is especially common when the buyer feels pressure to make a quick offer and then feels that they have paid too much after beating out multiple bids.
- Inspection – When there is time pressure to submit an offer there is not time to look at the home carefully or to show family members. This makes getting through the inspection especially important.
- Appraisal – Just because a buyer is willing to pay a certain amount for a home doesn’t mean that the appraiser or the bank will agree. If the appraisal comes in low and the buyer doesn’t have additional funds available to mitigate the banks risk the contract will terminate unless the seller is willing to re-negotiate. And if there were multiple offers, it is a good chance that the sellers will not re-negotiate.
It’s for these reasons it is smart to encourage a backup offer. And the best time to get a backup offer is when there are multiple offers. All it takes is to create a quick counterproposal with appropriate language. It is a no risk insurance policy which is usually a win-win.
Inspection Issues
If a buyer has paid a premium price for a home it is common for them to be very picky on the inspection. They feel the home should reflect the price and unless an “as-is” clause was included in the contract you can expect to be negotiating again on some inspection issues. As a seller your negotiation position is greatly enhanced if you have a backup offer. A good gauge as you consider the buyers requests is whether another (the next buyer) would likely require the same items. If so, it might be a good idea to negotiate in good faith and move forward.
Finding a Replacement Home
The advantages of a tight market on the selling side lead to difficulty if the seller needs to find a replacement home that will not require a double move. In a strong sellers market, the sellers must have a plan of where they are going to go. Don’t get stuck in a situation where you are homeless for a period of time. Plan ahead!
Since each transaction is different it is hard to anticipate all scenarios but those are some of the major considerations when a seller is looking to list their home in a sellers market. If you are looking for expert representation in Boulder County call me, I have been successfully working in this market since 1991.
by Neil Kearney | Mar 22, 2013 | Boulder Real Estate, For Buyers |
Budding trees, singing birds and swarms of home buyers. These are the signs that spring is just around the corner. The first two happen every year but this year especially home buyers are our early and in droves. As we learned from the ‘birds and the bees’, ying and yang and Marvel Comic Books, it takes opposing forces to create balance. Right now the balance of the Boulder real estate market is off kilter. There are not enough homes on the market to satisfy the demand of the buyers.
Over the past week 171 properties have come on the market in Boulder County. Already 24% of those homes have gone under contract. If you look back two weeks that number jumps to 32%. It is a fast moving market. We just listed a home in Louisville and over the three days on the market there have been 18 showings. Multiple offers are very common and many buyers are getting caught up in the frenzy. Here are the top three mistakes I see being made in this market.
Paying Too Much
When you are at the supermarket comparing products and prices is easy. For example, you want some soup so you compare the choices available and decide; what flavor, what brand, what size, etc. It is easy to decide because there are ample choices and whether you are a value shopper looking for a generic brand or are willing to pay for organic soup with a brand name, you can easily make that choice. But if you go to a remote store, like you often find near a campground with one soup choice the decision is whether paying $5 for a can of Campbells is worth it to you. The scarcity in choice allows the seller to raise price and at that price soup will be worth it for some and not worth it for others.
Pardon the extended metaphor, but right now there is a scarcity in the real estate market and buyers are faced with buying decisions with limited options. In many cases the decision is, do I pay more than seems reasonable or do I wait and hope that something better comes on the market. I have seen many sellers pushing the market and some are being rewarded by buyers willing to pay high prices.
So, if you are a buyer how do you balance being competitive in this market where 18 buyers are looking at the same property within a few days and making a smart decision. The first tip is to do research like an appraiser would do. Look at the sales in the neighborhood over the past six months or year (depending upon how many have sold) and find the homes that are most like the home you are looking at. Compare the upgrades, price per square foot and I like to compare the assessed values as set by the county appraiser. After comparing the sold homes to the home you are interested in you should have a good idea if you are within a reasonable range or if you are going to be setting a new record for the neighborhood. If you are getting a loan, the appraiser hired by the bank will be doing the same analysis and they are much more conservative than the normal buyer who is newly in love and is riding an adrenaline high from beating all of those other buyers. If you have paid too much the appraisal will stop the sale. So save yourself some time and money and work with your Realtor to see if what you are paying is reasonable.
Getting Caught Up In A Scarcity Mentality
When houses are flying off of the market and you may have missed out on a home or two, it may be easy to start to think that the house you have just seen (and might just work) will be the only one and if we don’t make an offer now… Home buying is a process and sometimes there is a delicate balance between patience and action. This is where advice from a good buyers agent is invaluable. The truth is, even though you think that there will never be another house like the one you just lost out on, new listings are coming on the market all the time. A home buyer must always look forward and never dwell on houses that “might have been”. The right state of mind is one that objectively looks at the options and sees each house that doesn’t work as one step closer to the one that will work.
Not Acting Quickly Enough
In a sellers market the competition for good houses is fierce. Being a part-time buyer is frustrating and futile in many ways. In order to be successful you must be ready to pounce on a good home. Here are the steps that a buyer must take to be a active buyer, ready to buy.
- Financing Ready – You must have your ducks in a row. A lender letter is required with all offers and it is best that you are already in the process of loan approval, just waiting for the property, verification of your information and an appraisal. You also must have liquid funds for earnest money ready to go.
- Quick Information – Knowing about the homes on the market is the next hurdle. If you are waiting for the Sunday paper you are most likely missing most of the homes. What I do for my clients is to set them up with a search that automatically scourers the MLS for new listings every few hours and sends us both an email with the results.
- Quick Showings – Once you know about the new listings you need to get out there are see them quickly. Flexibility is a key and seeing promising new listings on the first day gives you an advantage. I showed a listing this week that had just come on the market at 10 am. We met at 5 pm and there were four other groups meeting there at the same time. What a zoo!
- Quick Offer – Being ready to make an offer quickly is another key. Be ready to analyze the data (see
above) and make a strong offer is key to getting an offer accepted. A few weeks back I was able to make an offer on the spot at the house by writing the contract on my IPad and having the buyers sign on the spot. The seller and listing agent were about to meet so we had a tight deadline and we were able to meet it.
- Be Smart- As coach John Wooden said “Be quick, but don’t hurry.” Buying real estate is a long term decision with large consequences if you don’t get it right. Be ready to make your best offer but don’t get caught up in the wave of competition.
Buying a home in a tight market is a stressful situation and under pressure it is much easier to make a poor decision. I hope the three tips above help you navigate the process a bit easier.
If you are looking for a proactive buyers agent call me Neil Kearney 303.818.4055
