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"We're just starting our house hunt, my recently acquired clients explained . . . Perhaps we could meet with you and get a general overview so we know what to expect ? "
Perfect. I can definitely do that! Last week, I wrote a piece about the "Perfect Seller" and got a good deal of response from readers (and other Realtors) who related to my desire to map out the "perfect" Seller. Fortunately for me, I actually DO have the perfect Sellers right now. In fact, I am working with several - all of whom have surrendered to trust . . . Not surprisingly, "Trust" is exactly where we begin with Buyers as well. If there is no faith or trust in your Agent's ability to help you through what has become a very competitive marketplace as of late, and what is always a highly anxious transaction, even under the best of circumstances, then there is no point in moving forward with one another. In such cases, you are better served to part company and move on. Now that we have established a base of trust, let's talk about preparation . . . With Sellers, that preparation has a great deal to do with readying their home for market and with the mandatory disclosures required; vital steps which help prepare the Sellers to emotionally let go. For Buyers, your preparation takes an entirely different path, beginning with a real understanding of what you qualify for with respect to a loan, and more importantly, what you can afford, with respect to the other priorities and needs in your life. Irrespective of what a bank representative says, only you can define your level of comfort on mortgage debt. This should be crystal clear before you do anything else. In a perfect world, the conversation between you and your Mortgage Broker/Banker takes place before you call a Realtor. The last thing you want to do is fall in love with a home you can't afford, or worse yet, CAN, but aren't in a position to purchase. Step One: Define your budget and pre-qualify for a loan (and make sure your mate is on line as well). With strong financing in hand and a meeting of the minds, it's now time to establish a relationship with an agent you trust and to begin the house hunt in earnest. Expect to spend many Sundays in search of your new home, which should help pinpoint the style and the neighborhood you prefer. (Hint: the more open and flexible you are with both these elements, the easier your search will be.) If you are unclear as to one or the other, start by eliminating what you don't want. While you may not yet know exactly what you can live with, I guarantee, you will know what you cannot! Once you find the home you love, go all in and don't over analyze the numbers. Home purchases by and large are emotional buys - not pragmatic ones. If you lock yourself into charts and graphs and insist it's a numbers game, you'll be forever outbid by the Buyer who better understands the dynamics and is willing to leave nothing on the table. Hold nothing back (but DO keep your appraisal contingency in place as a safety net) and don't automatically expect a counter offer opportunity will come into play. It often does NOT materialize. Now that you are in contract, make sure to inspect your home thoroughly and read the reports provided (a surprising number of people don't). For most of us (me included) our homes are our single-largest asset. Therefore, it's incumbent upon you to know what you are purchasing and to feel comfortable with it - warts and all. (Understood? Good.) And finally, the "perfect Buyer" would understand that we don't, and cannot, control what anyone else will do on any given day. What another Buyer can afford, how motivated they may be, how many other opportunities they may have missed, or how badly they want the home, are all behaviors that our out of our control. Let's focus on our own intentions and actions and prepare for the very best. Eventually, your turn will come around. And while I'm laying out the recipe for the "perfect" Buyer (this part should sound familiar) he or she would check off their "To Do" list in short order once a ratified contract has been established. They would happily follow my suggestions, they would automatically trust and let go, they would set realistic expectations, they would defer to my experience and expertise, they would be flexible throughout the transaction, and finally, they would treat the sale as a business transaction first and foremost and NEVER take things personally. (Deja vu.) And since I'm repeating myself . . . they would think I walk on water. Then they would loudly brag about me to their friends and refer me at every turn, sending LOTS of business my way. And like my faithful dog, Buck, they'd love me unconditionally, regardless of the outcome . . . Now, is that too much to ask? Probably so, given that this is your dream - and you've probably got many expectations around it. So let's just agree to do our very best for one another. Fair? (I think so.) That much I can absolutely promise. Now, let's get to work. How can I help you? (And now that I've laid out the ground rules for the "perfect" Buyer and Seller, please let me know what qualities you think the "perfect" Realtor should possess and I'll print them up!)
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"Just give it to me straight. If you could pick the 'perfect' client," my Seller earnestly said, "what would that look like? In other words, what should I be doing to make YOUR life easier?
Wow, I'm in LOVE! Suffice it to say, I have A LOT of conversations with both Buyers and Sellers in any given week and that's NOT usually how these conversations proceed begin. Usually, the questions focus on how I intend to make my clients' lives easier and what I can do for THEM - not the other way around. That's reasonable; after all, they're paying me for my expertise. Still, the best results come when my clients and I work collaboratively with one another on the sale of their home, which in fact, does require a fair amount of surrender and trust. (And yes, it's always an invasive process at best. Let me apologize up front.) This collaboration begins with an open and honest assessment of your home and property, followed by FULL disclosure, resulting in a clear understanding of expectations, and ending with aggressive marketing and promotion that results in a bona fide offer that stays firmly in place through the close of escrow. (Have I lost you yet?) Initially, these first meetings can be quite difficult, as I walk with you through your home - often with a professional Stager in tow - and point out the hurdles we may be facing. "How do you feel about painting your dining room another color?" "Can we take down some of your family photos and your artwork?" "Would you mind if I removed the wallpaper in the baby's room?" And the kicker . . ."What do you believe your home is worth?" At the risk of offending, these blunt observations aren't meant to injure or hurt your feelings; they're meant to remove any Buyer objections prior to marketing. So while your design aesthetic may indeed, be very sophisticated (or more pedestrian) either way, I am probably going to steer you down several uncomfortable paths as we prepare to list and sell your home with the goal of achieving the highest and best result. (Remember, this isn't personal, it's business.) First, a word about a "staged" home . . . Staged homes are purposely neutral by nature and designed to look like they jumped off the pages of a magazine. No one actually lives in a perfect and pristine environment in real life. The intention is to emotionally "hook" the Buyer and place them (not you) in the home. So to the question "Do we have to stage our house?" "No, you do not," but you'll likely pale by comparison to nearby homes that are "staged" and suffer for it in the end. Once we have identified those cosmetic items that might benefit from a bit of updating and define your expectations, we begin, in earnest, the disclosure process; otherwise known as INSPECTIONS! A good inspection should not only point out the obvious, but the hidden defects of a home as well, and also quantify the cost to mitigate any such defects. In a perfect world, these reports would give your home a "clean bill of health," but absent perfection, better that you disclose potential flaws, than have your Buyer discover them once in escrow only to negotiate back the price, or worse yet, walk away from the sale altogether, and potentially tainting your home in the process. (Ouch!) And while I'm laying out the recipe for the "perfect" Seller (Were you just asking to be polite?) he or she would complete their disclosures in record time and check off their "To Do" list in short order. They'd happily follow my suggestions, they would automatically trust and let go, they would set realistic expectations, they would defer to my experience and expertise, they would be flexible throughout the transaction, and finally, they would treat the sale as a business transaction first and foremost and NEVER take things personally. Ideally, they would think I walk on water. Then they would loudly brag about me to their friends and refer me at every turn, sending LOTS of business my way. And like my faithful dog, Buck, they'd love me unconditionally, regardless of the outcome . . . Now, is that too much to ask? Probably so, given that this is your home - perhaps the most personal of all one's assets and none of us is perfect. (Heck, we're not even close. ) So let's just agree to do our very best for one another. Fair? (I think so.) That much I can absolutely promise. Now, let's get to work. How can I help you? "Have you discovered the 'Property Brothers' yet?'" my mother-in-law, Zee, inquired? "It's a program on HGTV and those boys are really amazing." So with several days of rainy weather and with some actual free time on my hands over the holidays, I treated myself to not only a "Property Brothers" marathon, but got hooked on the show that follows as well: "Love it or List It?" (Gee, you think I'd have enough Real Estate in my life without watching it on TV. Apparently not.)
In "Property Brothers," a pair of handsome, photogenic twins work in conjunction with one another to upgrade, remodel, and list the Sellers' current house, while identifying a replacement home that better meets almost everything the clients"must have" in order to move. (Spoiler alert - they always move.) The goal isn't much different in "Love It or List It?" except that in this program, the Realtor and the Decorator are competing with one another to see whether staying or selling proves more compelling to the Sellers by the end of the show. Now that the house has been remodeled, will the Sellers still want to "list it" or have they learned to "love it?" (It's anybody's guess.) Say what? In both cases, regardless of the amount of work required or the "surprises" they invariably run into, such as mold and mildew, bad wiring, pest and asbestos issues, or load-bearing walls that (surprise!) aren't in fact, load bearing; the Renovators still manage to complete ALL the work and buy new furniture for about $50,00o! Invariably, the scope of work almost always encompasses opening walls, refacing fireplaces, installing gourmet kitchens and state-of-the-art bathrooms with custom cabinets, shelving, skylights, French doors, etc., etc., etc. Really? (No, not really.) AND if that hasn't strained credibility enough, here's the best part . . . ALL the work gets completed in less than four weeks time! (I know this is "Reality Television," but I ask you, what's 'realistic' about that?) Okay, it's good TV for sure, and I'm all for shows that encourage home ownership and improved functionality, but take it from a serial renovator (that would be me) there's absolutely NO WAY those homes are getting the amount of work completed anywhere close to the budget as represented on TV - NO WAY! (Is no one getting paid for their time? What of the permit process?) So while I love a good transformation, I also think that reality shows like these are incredibly misleading to the uninitiated who might actually think that these unrealistic numbers are actually attainable. (They're not.) At least, not here in Piedmont, San Francisco, Palo Alto, Mill Valley, or the Bay Area at large where everyone confronts higher costs of living, including painters, plumbers, electricians and gardeners, which invariably, translates to higher building costs to you - the home owner. I suppose it's the price we pay for being able to walk on the beach in January. So love these programs all you like, but watch them with a grain of salt. DO involve a contractor and an architect upfront and PULL PERMITS, especially if a "fixer" is in your future. And if one is, understand the REAL costs going in; what repairs should be addressed right away, what can wait, and more importantly, what problems need immediate attention - and then start saving for a rainy day. (Even seemingly "done" homes can have expenses that are unexpected as we live in them.) And if you are on the fence about listing your current home OR remodeling it instead, the answer is found in its location and size. If you absolutely LOVE your current neighborhood (and your neighbors) and there is room to grow . . . you may be better off staying put and remodeling - in spite of the expense and inconvenience. On the other hand, if despite all your best efforts, you are never going to be satisfied with the street on which you live and you are bulging at the seams, then list your home now and let the next Buyer take on the improvements. "Love it or list it?" That's up to you, but either way, I'm here to help. |
AuthorJulie Gardner, has been writing The Perspective for 18 years and has published more than 775 humorous but always informative, essays on life and real estate. 
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