It's beginning to dawn on me that my family and I are probably NOT going to be able to live through the remodel of our new/OLD home - or as I've lovingly taken to calling it - the S***t Shack! (Yes, you can take the girl out of Sacramento, but you can't take Sacramento out of the girl).
Through six other home remodels, the boys and I have huddled in a room or two, subsisted on microwave meals for months, and put up with the dust and mess that invariably IS a construction site, but in our current case, I may have been a tad too optimistic . . . I don't want to appear ungrateful here; we saw a "fixer" opportunity, seized it, and went in with eyes wide open (well, partially open). Moreover, we caught the market just right and sold our previous home earlier this spring for a healthy profit, which allowed this current adventure to come about. That was ALL great! But when I went downstairs earlier this week to retrieve the laundry (and can I just interject that washers and dryers have NO business being in the basement), I discovered a pool of sewage had seeped through an abandoned plumbing pipe and left a rather large puddle on the floor. (Ewww, Yuck! I'll spare you the photos.) Hey, I'm willing to camp through a remodel, but even I have limits. Knowing that construction is, unfortunately, still a few months away, it's probably time to rethink our strategy . . . and move out! Like saner more rational folk, we'll downsize into temporary housing for the duration. A thoughtful "strategy" isn't just an important component of life and the challenges we face day in and day out, it's also a HUGE component of selling or buying a home as well. Certainly, it can't have escaped anyone's attention that Realtors have developed an unusual "strategy" here in the Bay Area that includes full disclosure, fresh paint and staging, and camera- ready presentation. These gold standards for selling one's home with the expectation of receiving offers above the list price, go hand-in-hand with advantageous market timing, full market exposure, and good old-fashioned know how. But perhaps the most important "strategy" a Realtor employs is pricing a home appropriately from the start. Granted, this isn't always easy to do, especially when we are taking the listing prior to investigation and often weeks or months in advance of a home's actual debut. Nor do Sellers always greet our suggestions with unbridled enthusiasm and acceptance. (In fact, they often don't.) However, if we misjudge this critical component and price higher than the market supports, based on our Sellers' insistence or worse yet, on our lack of understanding of the current marketplace, than the resulting sale will take much longer than it should have and likely, bring far poorer results. (I hate it when that happens.) "Can't we just continue to market the home aggressively until we get what we want and need?" Uhhhh, "No" (or rather, yes, you can, but it's a fatal mistake). Unfortunately, Buyers neither care nor respond to what you want or need. The plain truth is that the best results come about rapidly (and in our market, that's typically no more than 14 days). Statistically, the longer your home stays on the market, the less likely you are to receive your list price. Trust me, when Buyers find a property they believe to be of value to them, fits their family's needs in particular, and is difficult to replicate, they will step in quickly and make a serious offer. It's what I refer to as the "value proposition." Conversely, if it is perceived as overpriced, they'll stay away. (BTW - the "value proposition" is as much at play for the $5,000,000 house as it is for the $500,000 house. "Value" is ALWAYS about perception and it isn't the same for everyone.) "But my house is better, nicer, more special . . ." and so it goes. I believe you and yet, it doesn't necessarily matter. The recent home sale down the street has set the market value and IS your home's comp moving forward. Remember, the market defines the "value" of any given home at any given time! It may also be true that your home isn't as nice as you thought and suffers by comparison, which will absolutely affect its value. (Please don't shoot the messenger.) Which is another way of saying that the condition of your home is incredibly important so protect this valuable asset and don't let it fall into disrepair. We can keep our homes meticulous inside, but if we're not paying attention to the roof or foundation, it's likely to catch up with us come time to sell. So take heed and be strategic about your home's care, pricing and your presentation. Come the offer date, you might be pleasantly surprised, and isn't that a happier ending? (Which is a whole lot better than the surprise I received this week. I need a mop - and a new house!) How can I help you?
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I'm not sure the parade has ever been so well attended as last week's celebration. Like the birds to Capistrano, the folding chairs began to appear on Sunday - five days before the bagpipe bands and Mop Brigade arrived to proudly march down Highland Avenue. Young kids seeking candy filled the street, teenagers strolled, and parties lined the block on nearly every front lawn.
Red, white and blue bunting draped windows and porches throughout town and everywhere I turned I ran into someone familiar. . . "Julie Gardner!" Dhira called out, "Do you remember my mother? We still plan to have you over for dinner to thank you . . ." (I'll hold you to that.) Dhira, her husband, and kids (and mother) are new to the parade this year, having just moved into their home in Piedmont a few short months ago. I'd met Dhira and her husband, Kartik, at an open house on a Sunday afternoon and a few weeks later, they were successfully in contract on a terrific property here in town. That's quick work. (Believe me, it doesn't always happen that way.) I'd like to think that their quick success was predicated on my representation and that's partly true, but it also had a great deal to do with their fast learning curve and their desire to attain their goal before the market climbed out of reach. (We'd lost a house a week earlier in Montclair and they quickly rebooted and recalculated.) Moreover - and I cannot emphasize this enough (!) - they stayed reasonable and even-tempered throughout the deal. Perhaps it's because Kartik, as a CEO for a high-profile company, negotiates deals all day long, or because Dhira, as a practicing MD, needs to stay calm and collected when speaking with her patients, but whatever the reason, they came to town armed and ready, but did so unemotionally and pragmatically. Even better, they quickly got up to speed on current market "value" and wrote accordingly. Suffice it to say that there have been a few occasions in this heated marketplace where Buyers or Sellers were far more emotional in the course of the deal and turned to me in frustration: "Julie, we need you to advocate for US!" (Of course you do. That's my job.) This typically happens when the transaction has run into an unexpected snag - or two (a very common occurrence during the course of escrow) and the Buyers or Sellers are highly charged. Their perception is that I am bending over backwards to lay out the other party's point of view and, indeed, I am. While a person's divorce, job relocation, or family drama may not be relevant to you, it is to them and it absolutely colors the transaction moving forward. Moreover, the psychology of the deal is every bit as important as the financing. If we approach each hurdle as something to get through, as opposed to something that blocks our way, we begin to look for solutions, instead of problems. And as your "ADVOCATE," isn't that what you really want me to do? At the risk of disappointing those of you looking for a Pitt Bull, it's just not my style. Not because I can't dig my heels in and draw a line in the sand (I can; just ask my husband, Cliff) but because I believe that even when we win this type of battle, we risk losing the war. Knowing where the other side stands and their motivations around their decisions, definitely informs our response and strategy. In other words, it doesn't serve to polarize the other side, creating unnecessary resentments that typically come to roost, either in a quick exit or worse yet, in the form of a lawsuit after the close of escrow. Avoiding discontentment can save you BIG BUCKS down the road. So yes, the best deals always come about when the transaction ends on a high note. In short, being accommodating and helpful isn't just the polite thing to do - it's the strategic thing to do. So answer those questions when asked, accurately fill in your disclosures, invite inspections as appropriate, welcome your Buyers into the home with designers, architects and contractors (especially if they have given you a generous rent-back) and understand that overcoming objections is part and parcel to every home purchase and more importantly, that "the deal" is a two way street. How we handle our side of it, is exceedingly important; our intentions, our actions and our words lay the groundwork for what's to come. This simply goes back to what our mothers taught us way back when: "Play nice!" (Thank you mom. As it turns out, mothers know a thing or two about negotiating.) Speaking of streets (and mothers), I ran into so many wonderful families on July 4th, both on Highland Avenue and at my Open House immediately following, that I never made it all the way to the lawn parties I was headed to (my apologies). No matter, it was so great seeing each of you with the knowledge that somewhere along the way, I had helped each family into (or out of) homes here in town, or nearby. What a gift! Now please send your friends and family my way. I'd love to 'politely' help them as well. "WE think we'll bid X," my clients anxiously said after conferring for a few moments, "so that we've got a little room to negotiate when the Seller counters." Ah yes; the elusive "call back."
Forget "when." How about "IF?" Years ago, before moving to San Francisco, before meeting Cliff, WELL before babies, preschools, PTA meetings, baseball tournaments, soccer matches, dances, graduations, and long before a career in real estate, I danced. To be honest, I waitressed, with an occasional paying gig on the side. Dance jobs were scarce in Hollywood in the early 80s (yes, I realize I am dating myself), MTV was just emerging, and New York was out of reach, but that hadn't stopped a young, naive, Sacramento girl from pursuing her dreams - "So I loaded up the truck and I moved to Beverly - Hills that is, swimmin' pools and movie stars!" (Actually it was Sherman Oaks, but this plays better.) Between tap, ballet and jazz classes, my friends and I would pour over Variety; the trade paper for those in "show business," and then scramble to find someone to cover our restaurant shifts so that we could attend whatever dance audition has been published that week. The big auditions like the Oscars or the American Music Awards might attract 3,000 would-be starlets, heavy dance bags in tow with tap, ballet and jazz shoes at the ready. For hours we'd perform in lines as cut after cut was made, hoping for the golden ticket - THE CALL BACK. Call backs didn't come easily . . . "Thank you, you're too tall." "Thank you, you're too short." "Thank you, we're looking for um . . . something else." (Those hurt the most.) "Dance ten, looks three, and I'm still on unemployment, dancin' for my own enjoyment. That ain't it kid, that ain't it kid. . ." Unless you actually enjoy spending week after week (month after month!) looking at homes (Surprisingly, there are people who make a hobby of this!) you are better served NOT waiting for the CALL BACK, but spotting the opportunity and getting the job done. The "opportunity " may come in the form of an overlooked house, a less desirable property (aka a 'fixer'), or a narrow opening in the marketplace (holidays often provide such windows). Whatever it is, recognize the opening and SEIZE it! But if your heart is set on the house that everyone else loves too and you are willing to compete for it in a meaningful way, DO NOT hold back, hoping for a counter offer. Nine times out of 10, it ISN'T coming! Sellers with multiple offers from which to choose, often don't renegotiate. If they are smart (and well coached), they'll take the best offer on the table and call it a day, rather than offend the Buyer who just arrived with "the gift" in hand. (Thank you very much.) When Sellers do counter in today's world, it's typically because several offers have presented that are nearly identical. In such a case, a "multiple counter" will often be issued to see who's willing to come up with more dollars (blunt, but true). If everyone agrees to the counter, the seller will simply pick their favorite. Alarmingly, it's tantamount to a closed auction and a popularity contest all rolled into one. ("That ain't it kid, that ain't it kid.") So if you have identified how much you are willing to spend on a popular home, be brave and ante it up! Remember, in the Bay Area marketplace, you are seeking the "value," not the "deal." Amortized over thirty years, the difference is probably a fairly nominal amount on a monthly basis, and you'll kick yourself later on if you missed the winning bid by the $25,000 you were 'holding back.' While it may seen unkind, or worse yet, unfair, today's hot, hot, HOT marketplace makes no allowances for those that are hoping for, or counting on, the elusive "call back." Hey, I'm still dancing in a sense; it's just on a different stage. As it turns out, Real Estate is its own form of dance as we gently tap are way through the transactions and the emotions that tend to attach to almost every sale or purchase. Ironically, all those years of training have proven to be very good groundwork for what lays ahead. "Suddenly I'm getting national tours . . ." (TRIVIA TIME: Who wrote the lyrics to the song I've been quoting and in what musical was it sung? Lattes at Mulberry's Market for every correct response!) I spent the early morning hours battling a couple of tree roses at my upcoming listing. (I take the term "full service" to a whole different level.) Let me state for the record, that I'm not a fan of these prissy plants; bushes that have been trained and pruned to grow like floral lollipops. Sure, they look elegant going in, but too often they stop performing after a few years and all you're left with are a few struggling buds and some rather unattractive rusted leaves on top of an ugly wooden stock. (BTW - the deer love snacking on these roses making them uglier still.)
"Do you mind if I bring my shovel over and pull these out?" I asked my amenable Seller. "I'll replace them with something healthier and more vibrant.." (I was just being polite. She didn't really get a vote.) And so the assault began . . . Let me tell you, those sickly looking roses had a tap root that went way down and didn't want to yield to my incessant digging. (I imagine this must be what it feels like to be an oral surgeon pulling out a wisdom tooth.) A woman, or should I say a "Realtor" on a mission, I wouldn't be deterred. I've yet to meet the stubborn rose bush that can beat me in a battle. Sure, they'll scratch the heck out you, but in the end, I'm going to end up the victor, come hell or high water. I think that's often the way Buyers and Sellers feel as they move towards the purchase or the sale of a home and it's rarely ever (to quote Martha Stewart) "a good thing." What often starts out as a lovely transaction turns into a thorny mess as the battle progresses and tap roots are firmly established (aka: lines in the sand). Until one side yields, nothing much good is going to come of it. "You tell them I said . . .!", OR "We're absolutely NOT going to . . .!", OR "Why should I, unless they . . . ?" And so the war rages. Let's pause for a moment and reevaluate the goal, which is to transfer ownership of the home. Remember, both the Buyer and the Seller want the same thing, but how to get there is often the part we have to navigate with some common sense and grace. We don't have to like each other, we just have to be respectful. (BTW - kindness and generosity never hurt either.) No matter the circumstances, the backdrop is always STRESS on both ends, so let's keep drama to a minimum, shall we? (This goes for the Realtors too.) One Seller recently summed it all up: "This is the one time in my life when I have the opportunity to sell a rare commodity that is truly based on supply and demand and dammit, I want every dollar!" (I understand.) Juxtapose that sentiment against: ""We can wait and we don't want to overpay." (No one does.) Whatever your belief, it's sure to be EMPHATIC (!) especially in a highly-charged market such as today's, but if you lose the forest for the trees (or the roses for the thorns) you'll undoubtedly be left bloody and bruised and worse yet, without a house, and that's certainly not the outcome you were hoping for. While there are those who, either by training or by nature, thrive on turning UP the volume, there's something to be said for giving up the struggle and yielding to the flow. Granted, this isn't easy. I'll be the first to say that there's a lot at stake and no one wants to be taken advantage of, or worse yet, miss an opportunity, but in the greater scheme of things, the buying or selling of a home are the problems most of the rest of the world aspires to. Let's keep our mission in perspective, recognize or redefine the concept of "victory," and remember for all the worry, angst, and posturing, the outcome is rarely ever impacted enough to have made an ugly struggle worthwhile under any circumstances. In other words, be nice and play fair. Which isn't to say that there won't be some battles along the way, but let's resolve them quickly and amicably. "But what if . . .?" So what? I mean it, "So what?" Second guessing is the quickest way to insanity in this, or any other market. Let me save you some time and trouble; we can only ever work with the inventory, buying pool, lending policies, and the circumstances available to us now. Sure, this may all change in a year or two (in a month or two) and then we will be forced to recalibrate and work with a new set of perimeters, but for today, we work with what we have in front of us . . . I spent months second guessing my decision on our last home (coveting others, bemoaning our purchase, doubting the journey . . .) only to have our lovely house break records when we sold it this spring. When I finally let go of expectations, everything (and I mean EVERYTHING) tumbled nicely into place. What a gift. So pick your battles wisely (and wear long sleeves) or you may find yourself focused on the thorns instead of the blooms - and wouldn't that be a shame? Save your fighting for the issues that really matter. Now where's my shovel? Those roses have got to go! It's the annual STAR testing at school which means there's been a fair amount of grumbling in my household about these "stupid tests." I understand my son's point of view (I do); STAR testing tells us nothing more than how well our kids perform on a particular day - not whether or not they've gained important skills, like critical thinking. Because the results are largely used to measure the success of the school and not the child, I'm inclined to agree with him (but don't tell Tristan I said so). However, when my son steps back and looks at the inconvenience more objectively, he discovers that the week includes little to NO homework, early dismissal, and later start times, allowing him to sleep in (bonus)! On balance, it's probably one of the easiest weeks of the year, given that this son has always scored incredibly well on standardized tests. "DON"T wake me tomorrow morning," Tristan commanded, "I'll get up at the right time on my own." (Okay then.) Never mind that I haven't woken him in years (unless there were chores involved). Honestly, there's not a lot I've asked of my pampered kids besides their best efforts, BUT getting themselves up and off to school is one of them. I think my clients are being tested as well - there's just no way to objectively measure their scores. "We're FREAKING OUT!" is a refrain I'm unfortunately getting use to hearing. No wonder. The pace of the market makes for tremendous uncertainty. With multiple bidding on most properties, a HIGH number of preemptive offers in play, and some downright startling results, Buyers are really struggling to keep some degree of sanity as they navigate these challenging market realities. Honestly, it's a reasonable response to a very trying situation. "How are we ever going to find a home?" (You will.) "But what if we don't?" (You will.) Buyers are not alone. Sellers fair no better. "Why isn't my house jumping off the market like my neighbor's did?" In short, your house may be missing the 'value proposition,' OR it may have expensive defects that need correcting, OR it may need extensive renovating, OR it is too big, OR it is too small, OR it may simply be priced too high. (That's usually the culprit. Everything sells at the right price.) Whatever the case may be, adapt if possible. Unfortunately, it's the inconsistencies that are proving to really test us all, making it difficult to predict what is going to happen and when it is going to happen. Some homes, regardless of their condition, find a strong audience, while seemingly terrific homes, get nary a nod. In other words, not all listings are created equal, nor do they attract the same kind of attention. (Chemistry is an evasive concept.) By way of example, I currently have two listings on the market which are experiencing both ends of the spectrum. The first, has competing Buyers knocking down my door asking for disclosures and booking appointments for the offer date a week in advance (!); while the second has had far less activity even though it is 'value priced,' and has been aggressively marketed as well. I think they're both great opportunities, but results aren't about what I think, they're about how the market responds. So what gives? While these properties are nothing alike, the first stands virtually alone in its neighborhood, while the other has come to market with 31 other competing houses, and many of them with newer amenities and updates. Moreover, supply is narrowing the gap on demand, and in turn, there's been a subtle, but profound, market adjustment. This is NOT a correction mind you; it's a leveling off of the marketplace which is TYPICAL for this time of the year. In fact, it's the same pattern we see every year as inventory rises and Buyers start to rethink their options, waiting for next week's offerings. In many cases, Sellers who delayed, are now scrambling to capture the market highs the last two months delivered and often, finding it more difficult to live up to these earlier results. Still, DON'T panic if your home has sold swiftly, but DO make adjustments as needed and make them quickly. Homes that haven't sold within two weeks should reduce the price and reset their position immediately. It's simply foolish to wait for the market to meet your expectations. Remember, a willing and able Buyer defines the value of any given property at any given time - NOT THE SELLER. (Sorry about that.) Buyers, if you haven't been successful up to this point, this is good news, you're now in a much better position to compete (although you'll still need to be willing to be the highest bidder at the table). Whatever the case may be, sharpen your pencils, prepare for battle, and get ready to be tested. Buying or selling under the best of circumstances is always stressful, and in the Bay Area marketplace, it's exponentially more difficult. Of course, you're 'freaking out' - who can blame you? (Not me.) Take a breath, seek objectivity (the rest of the world aspires to house- hunting angst), get into action, and understand that life is a series of tests as we transition from one stage to the next . . . AND I might add from my own recent experience, that transition and change ALWAYS require a fair amount of trust and faith . . . You're just not going to be able to sleep in while you're going through the process. Now, how can I help you?
Last Sunday Cliff, Tristan, and I met with a college counselor my good friend, Andrea, had highly recommended, to explore Tristan's post high school options come 2015. We hadn't done this with our older son, Case, but in retrospect, probably should have. (Happily, Case will graduate from college this spring just the same.) It's just that Tristan's hoping to play college ball and as a result, may have several more options from which to choose. As it turns out, MORE choices don't always make the decision - or the journey - any easier. Let's back up just a few decades - or three . . . . My husband, Cliff, attended private school on the east coast, where the exalted "Ivy Leagues" were an attainable part of the equation, while I was the product of public education in Sacramento, where it was assumed that those moving onto higher education would be well served by the UC, state, or city college system (period). With the exception of a very few legacy families, I didn't know any kids who were heading east . . . north . . . or south, for that matter. That's not true anymore, where even the brightest and most talented seniors are all too often being turned away by the UCs of their choice and looking outside the state to other more welcoming institutions that want what our Piedmont graduates have to offer (thank you very much). It's a brave new world - and a highly anxious one (both for these kids and us doting parents). "We need a road map," I explained to Retta over coffee. "Something that outlines what we should be doing, when we should be doing it, and how to go about it." Nodding empathetically, she pulled out her yellow pad, began taking notes, and started asking pointed questions: "What's important to you, Tristan?" "Where do you see yourself going?" "Do you want a large, medium, or small experience?" "Would you prefer an urban environment or a closed campus?" "Do you want BIG sports including a football team?" "Is a Greek system part of the equation?" "How rigorously academic would you like the program to be?" And so it went . . . "I don't know. "Not sure." "It depends." "I hadn't thought about it." "Probably." "I guess." "Hmmm . . ." (Well, that narrows the field considerably!?!) "That's okay. you don't need to know the answers right now," Retta kindly explained, "but you're essentially in sales (we all are to some extent) AND at this stage of the game, HOW you sell yourself is going to be incredibly important with respect to your choices moving forward. Which means, I want you to think about your intentions from here on out." ("Now that's what I'm talking 'bout Willis!") Buyers take heed. Clarifying what you want and what you can afford are really critical to the home buying process (as is understanding what you DON'T). Where would you like to live? What can you afford to spend? What is your timeline for purchasing? Do you want or need to be near public transportation? Are good public schools part of the equation? What style of home do you prefer? And so it goes until we refine and hone your intentions. So here's my 'road map' for Buyers as you navigate the murky waters of our highly competitive marketplace . . . 1) Define your timelines, goals and expectations. 2) Speak with a Lender and get pre-approved (you'll need to circle back periodically as interest rates change).
3) Meet with an experienced LOCAL REALTOR (your cousin in San Jose isn't local unless you're planning on moving to San Jose.) 4) Visit Open Homes regularly and familiarize yourself with the different communities and neighborhoods in your price point. 5) Refine your search (style of home, neighborhood, price point, etc.) and provide detailed feedback to your Realtor on Monday mornings. 6) Track the available comps and the closed transactions in your preferred neighborhoods to better understand the going rate. 7) Request a Disclosure Package and highlight any concerns or questions you may have. 8) Pre-inspect when possible (but only with the Sellers' or Agents' permission). 9) Write a brief biography about you/your family and include a photo to have at the ready. 10) Be prepared to write an aggressive offer that can compete in the current marketplace Once in Contract:
I probably shouldn't admit this, but you know the guest who arrives ON TIME while the hostess is still putting on her make-up, hoping no one will show for another 15 minutes or so? Well that's me. (Do you want to just cross me off your party list now?)
I'm the early bird who shows up on your doorstep, gift in hand, at exactly 6:30pm. (My mother valued promptness.) As it turns out, that socially ingrained habit, while not so welcome at parties, works great in the world of Real Estate where recently, the victory seems to go to the swiftest. "Do you have an opinion about preemptives offers?" one client recently asked? Why yes, I do. In what has shaped up as perhaps, the most aggressive marketplace we have seen in years, Sellers - and their agents - have figured out that they needn't necessarily wait to put in an offer. In fact, I've successfully utilized this strategy on several homes this spring to beat the competition to the punch. Huh? Let me back up a moment to give you some context, especially if you're from out of town where your home may sit on the market for weeks, if not months, before receiving an offer for less than than the list price, OR for those of you who have been on the sidelines for the last decade or two . . . Because demand far exceeds supply, here's how the scenario usually unfolds for Sellers in the Bay Area wherein a listing has two Sunday Opens and two Broker's Opens before hearing ALL offers on a set date. At which point, several offers will usually present to both the agent and the Sellers of the home. It's an opportunity to sing the praises of one's Buyers in person, and to lay the groundwork for the deal and how they (the agent and the Sellers) may expect the transaction to progress. It's typical these days to hear at least 3-4 agent presentations, not unusual to hear 5-10, and not unheard of to hear 10-20. (Wow!) "My Buyers are a wonderful family with two darling children who absolutely love your home . . . They are preapproved through their lender, have waived the appraisal contingency . . . and can close in 17 days!" (Warning Mr. Spock, you should only ever waive the appraisal contingency IF you have cash reserves on hand to make up any delta a less than stellar appraisal may create.) And so it goes until all the offers have been heard and the Sellers come to a decision. BTW- the Sellers may reject ALL the offers presented; accept the highest (Winner, winner, chicken dinner!), take one that's lower with better terms (ALL CASH), choose their favorite just because, counter one to match the best at the table, OR counter several. That's right, the Sellers may, in fact, "cherry pick" from the available offers and decide to counter the price on one, the contingencies on another, and a rent-back on the third. If all three 'willing and able' Buyers accept the counter, the Seller has the right to choose which party they prefer the most in what can feel - to the Buyers - like an unfair popularity contest. While home sales are first and foremost, a business transaction, as we all know, they tend to be highly emotional as well. "Julie, make sure to find us a lovely family who will appreciate our home," is a sentiment I've heard on more than one occasion. To bypass this difficult waiting period and the threat of multiple competition, many Buyers are willing to quickly step up upon finding a home they desire and write an offer the Sellers would be foolish to reject, in what's often referred to as the "preemptive offer." I should point out that technically, it is only a "preemptive offer" IF an offer date has been set and published in the MLS (the Multiple Listing Service); otherwise, a quick offer is just an aggressive play by the Agent and their Buyer, and why not? (I'll speak to this in a moment.) The key words here are : "write an offer the Sellers would be FOOLISH TO REJECT!" With multiple offers from which to choose on most well-priced homes, a Seller will only consider this play IF the number presented is high AND the terms are exceedingly strong (well financed, quick close, no contingencies)! "Would the Sellers accept a full price offer today?" I've naively been asked at a Sunday Open. Sorry, no, you'll have to do much better than that. In other words, an early offers has to SERIOUSLY put to rest the idea that a better offer lay in the waiting. Not everyone likes this quicker, faster, highly heated marketplace and that's their prerogative; no one is forcing a Buyer to take an offer earlier than they had anticipated. However, one shouldn't always expect that the Buyer will return two weeks down the road either. A few years back I represented a fantastic family who asked me to present an early offer that was politely declined without so much as a counter. (Fair enough.) By the time the offer date rolled around, my Buyers had moved onto another house and were firmly in contract. (Footnote, the first home didn't receive the anticipated offers and sold for substantially less than our "preemptive" price, proving to be a very costly roll of the dice for those Sellers.) So is the "bird in the hand worth two in the bush?" That's a decision only the Seller can make and one their agent should allow them to make. (It's not our risk; it's yours.) The "Why not?" is that the quick sell can leave money on the table. Certainly, you'll never know if someone else would have paid more had you waited and therein lies the most difficult part of the play; the uncertainty of the "What if?" Whatever direction you decide to employ, DO understand that the quick or "preemptive" offer may show up on your doorstep as you bring your home to market. So define a strategy with your agent -upfront - with respect to your timelines and whether or not you are willing to entertain an early bid (as my husband and I recently did when selling our own home here in town). In many cases, time won't improve the offer you'll receive today. Personally, I'm a BIG fan of the early bird and that's the "What's up?" "Your home is lovely," my GRUBB colleagues pointed out, "but you'll need to get rid of about 50% your tchotchkes." ('Tchotchkes!?!' Really? Now that's rather insulting.)
Having decided to sell my own home this Spring, I had invited the GRUBB Co. team over to price my house after the weekly Tuesday morning meeting. (Like most homes in Piedmont, it's fairly unique which makes it tough to accurately comp.) For the record, I already had packed away every family photo, had judiciously edited my collection of white Stoneware, had removed almost every book from the bookshelves and had erased nearly every trace of my family's human imprint, and yet . . . . (I'd really only wanted a pricing consultation, yet the HITS kept on coming . . . ) "I'd take out your oriental carpets and replace them with sisal rugs instead. You'll want to 'neutralize' your home as much as possible," the stager proclaimed. (I'm beginning to hate that word.) ENOUGH ALREADY! (I'd only invited her over for a consult on the OUTSIDE gardens.) OMG (!) the process of selling a home is so much more invasive and offensive than I remembered. From the inspections to even the most well-intentioned opinions, it all feels so incredibly tortured, doesn't it? (I promise to be kinder to my Sellers from here on out.) "Thank you," I tersely responded, "but I don't think so. While I appreciate and understand your intention, the last thing I want to do with respect to my own home, is to 'neutralize' it," I said. "If nothing else, shouldn't a home at least be 'personal'?" (No, not really.) Here in lies the difficulty with most of the homes we bring to market these days. Having set the expectation of a fully-staged home, we have developed a tendency to liberally criticize those properties that aren't or don't look catalog ready - and with good reason. Statistically, STAGED properties sell for much higher and create the public perception we want to convey: serene, uncluttered, elegant . . . (you get the picture) AND, more importantly, they allow the prospective Buyers to move themselves in and you out. In short, we want the Buyers focused on the house - not on the lovely things in it! True, a home should be 'personal' when we live in it. It should absolutely convey who we are, what we love, and how we live, BUT it should be much less 'personal' when we go to sell. This is, after all, a BUSINESS TRANSACTION first and foremost. (It just doesn't feel like one.) Still, have we sacrificed the soul of the house to beige and blue? (Excuse me, I meant "Sahara Sand" and "Sea Glass." ) Are we to believe that no one reads anymore and that shelves should carry little more than a well placed piece of corral? And what of those who aren't in a position to afford moving out prior to the sale and then incurring additional expenses for staging, painting, gardening, and carpet and window cleaning? Staging costs aren't insignificant, starting at about $5000 and quickly escalating from there, depending on the size of your home and the amount of furniture, art, and accessories that will need to be brought in. Is there no reasonable middle ground? (Yes, there is.) While some houses truly require a full-on intervention, others will only need some modest rearranging and some good editing to get the job done. My current listing on Alta Avenue in Piedmont used Edit/Style/Shoot for their staging and in the space of two days this dynamic team came in and did a remarkable job rearranging what was already there, editing what didn't fit, and bringing in new bedding, pillows, towels and a perfect chandelier to replace the over scaled one that had previously hung there. While the bones haven't been changed much, the experience in the home is dramatically different now and it photographed just beautifully. (Thank you ladies.) So what's the moral of the story? Knowing that doctors make the worst patients, lawyers, the worst clients, and Realtors, the worst, Sellers; I may have to follow my own advice which is to step back, emotionally disconnect, and get out of my own way. (There may be hope for me yet.) Most importantly, I have co-listed my home with my colleague, Jane Anderson, and I am going to let her hold my house open to the public - it's time to turn it over to the professionals. (Time take a dose of my own medicine . . .) "You were totally on my mind," the card read, "until I started thinking about bacon." OR as my friend, Mavis (typically, a STRICT a vegetarian) says whenever she orders a BLT, "Bacon doesn't count; it's a condiment!" Ahhh, the things we tell ourselves. . . This is especially true of our homes and the value we place upon them, AS IN:: "I know my neighbor's home sold for 'X,' but mine is in better shape, more special, and has more style . . .". That may be so, but it doesn't necessarily follow that whatever improvements you have made to your home will directly translate to what others are willing to pay to own it. In fact, it's the nature of Home Buyers to poke holes in every property they see as they begin to move you out - and them in. So it's not just that Buyers are being hypercritical, it's truly (for better or worse), part of the process . . . "I don't like the color on the walls." "What were they thinking putting beige carpet in the bedrooms?" "Oooh, I hate the wallpaper." And so it goes . . . the list of cosmetic complaints can be as varied as the people coming to view the home. (It's why we ask Home Sellers to leave whenever the house is being shown. Trust me, you don't want to be there.)
As your Realtor, it's my job to point out to prospective Buyers that these elements can all be easily changed. True, some cosmetic changes and improvements are more expensive than others, but on the whole, most of a prospective Buyer's concerns are easily addressed with a good contractor and minimal fuss and expense. *On the other hand, moving walls and adding on to a home are much BIGGER challenges that may require not only an architect, but often, design review as well . . . so don't confuse the two. Still, even "turn key" homes are rarely, "turn key." What's perceived as a plus for you, such as wall-to-wall carpet, may prove a stumbling block for someone else with dogs. That pool you love? It may be insurmountable for a family with young children. And granite countertops, while typically a good choice, may in fact, be off-putting if the new Buyer has their heart set on carrara marble instead. In other words, our choices are OUR choices - and don't necessarily translate into higher dollars when it comes time to sell. But let's just concede for argument's sake that your home is more special, in better shape, and worth more than your neighbor's house that just sold down the street (mine is). Even so, I'm still going to recommend that you price it appropriately and let the market carry it UP! Why? Because, strategically, it's nearly impossible to underprice a home, but it's almost fatal to overprice it. Today's buying public has never been more keenly educated on market values thanks to the Internet and they'll come in droves if your house is perceived as an excellent value, while conversely, Buyers will stay away if it is perceived as overpriced - even in an overheated marketplace. "But won't I get more if I start higher?" Not in my experience. Overpriced properties tend to languish on the marketplace and end up chasing the market DOWN . . . and that's a very tough road as you correct the price until it finally finds its sweet spot. This is especially true for multi-million dollar homes, that quite honestly, can be difficult to price. While square footage of both the house and the property are important factors, it's the "emotional component" that really drives the success of a sale. Which is why some charming, smaller homes often factor out for MORE money per square foot than do the mansions on Sea View or Glen View. Finally, given that every home in Piedmont is unique and special (there's nothing cookie cutter about our community), pricing is truly a subjective art for every agent - no matter the years in the game. Sometimes we get is right and sometimes we don't. BUT if you believe in your home (as I do) have a little faith; the market will deliver, especially with too little inventory and unprecedented Buyer demand. What I'm really saying is don't get hung up on the starting point when it's the finish line we are working towards. Hey, that's just my two cents for what's it worth. Not everyone agrees and they are entitled to their opinion. In the end, I work for you and I will price the home to meet your objectives (within reason). However, your objectives shouldn't be a moving target, so let's clarify them upfront and then work to bring home the bacon. Which brings me back to my original premise; when it comes to BLT's (and home sales), let's just agree that it's all about the bacon! I don't care what you tell yourself - that's non-negotiable. What's Happening? *HEADS UP! Please note that a new ordinance is in place with respect to home improvements that I suspect has much to do with the drought California has been experiencing these past few years. As of January 1, 2014, California Civil Code Section 1101.4(a) mandates that when remodeling or making improvements on your home, ALL nonconforming fixtures must be converted to low flow, conforming faucets, showerheads and toilets BEFORE a certificate of occupancy or a finaled permit will be issued! Say what? In other words, minor home repairs may just trigger more expense than you previously thought with respect to any nonconforming fixtures in other rooms. How broadly this new ordinance is applied with respect to "improvements," is anybody's guess. (Is a replaced water heater enough to kick off this requirement? How about a new roof?) While each city's planning department may ultimately decide to enforce this rule subjectively, DO expect that if a permit is involved, this ordinance will very likely come into play. Unfortunately, the scope is rather large and the wording rather vague. (Don't you hate that?) Yes, I do. Aloha, welcome 2014. I hope your holiday break was everything you had hoped for - and more. I spent the first part of mine with my family in Hawaii and the New Year in Phoenix at a the world's most elegant and understated wedding (how refreshing), which means it's time to get back to work to pay for these lovely holiday getaways. Our scenic vacation in Oahu included long walks along the beach, tennis with my husband, and snorkeling among the reefs, which also meant (alas) that a new swimsuit was in order (sigh . . . ). "I'm not getting in the water," I complained bitterly to my sister, Jill, over the phone just before boarding the plane. "I look like the whales I plan to be watching." (I'm prone to hyperbole). You'll get in the ocean," she calmly replied: "ONE, because it's Hawaii and you've worked hard to have time away with your family, TWO, because you'll be swimming with turtles for goodness sakes, and THREE, because our bodies are practically weightless in the water! (I love her so much.) While I didn't spy any turtles, I did eventually throw vanity to the wind, and donned some flippers and a mask (a ridiculous get-up even for the fittest of Sports Illustrated models) and was met with schools of colorful fish and balmy sea waves. Yes,Virginia, there are still some rewards for being brave, OR as my husband, Cliff, joked while putting on his own swimsuit, "Some clothing is truly 'aspirational' at our age." (I love him even more.) Homes are 'aspirational' as well. In fact, I think they are the very definition of "aspiration" as I push to complete my long-overdue kitchen and look ahead toward spring for the next 'DIY' project that lies ahead. (Maybe there's a 12-step program for that.) I was reminded of just how "aspirational" a home can be this week by a Buyer far less experienced than me, but with vision of his own. He had called me out of the blue, having found my site on the Internet (glad to know someone's looking online) and then sent me a long list of opportunities to see - many of which were already pending or had languished for months on the MLS (the Multiple Listing Service). In truth, he was all over the map, so I kindly suggested that, perhaps, his vision needed a bit of fine tuning. (Okay, I was more blunt than kind; I'll add that to the 'Resolution's' List.) We then met up to tour the area and see several properties that were still available but after a long afternoon together, I'd felt we hadn't really seen anything that met this Buyer's specific "wish list," or would even prove a viable candidate, given our conversations. That's unfortunately been a pattern as of late, what with too many Buyers and too little inventory to meet their growing demand, let alone their "needs and wants." In truth, we were grasping at straws and sadly, there weren't even any fancy little umbrellas in those glasses. Mr. Buyer had identified "all-level living" as being high on his priority list and yet, there we were, touring vertical view homes on the ridge!?! This would never do. (Suffice it to say that I felt we were barking up the wrong coconut tree.) Turns out, I was the one who was wrong. (That wasn't the first time and it certainly won't be the last.) A week later, Mr. Buyer texted me that he'd like to return to one home in particular with an architect in tow . . . (Your wish is my command.) And after working my magic (thank you Ahmad of Tecta Associates; it's good to have friends one can call on at a moment's notice), this very gifted architect identified where an elevator could potentially be placed and better yet, he discovered a Golden Gate view we hadn't yet incorporated into the growing list of possible attributes. Now, the home made much better sense for this successful landscape artist. Long story, short, I spent New Year's Day writing an aggressive offer and Mr. Buyer is now successfully in contract as a result of following his own instincts and jumping feet first into the waves. (Honestly, I don't know who's teaching WHO some days . . . ) So be brave and find your inspiration (wherever it lies) and swim beyond the reef. Who knows what's in your future??? Whatever it is (wherever it is) I am here to help - and looking forward to further growth. Happy New Year and Mahalo; 2014 has started off with a resounding bang. (PS - if you need help finding your "aspiration," call my friend Ahmad Mohazab, with Tecta Associates. He's very clever!) ______________________________________________________________________________________________________________ What Sold? Before we dive into 2014, I thought I'd provide a quick overview of last year's sale's results, specifically as it pertains to Piedmont . . . We ended the year of 2013 with a grand total of 107 homes having transferred ownership, which was slightly down from 2012, wherein 130 property changed hands, per the MLS (Multiple Listing Service). As such, DEMAND was incredibly high for these fewer listings. It follows then, that the average price per sale rose in 2013 to $1,597,701, as compared to $1,475,011 in 2012 - as did the medium, which jumped in equal proportion from $1,367,500 in 2012 to $1,475,000 in 2013*. The lowest sale of the year came in at $598,000 for a fixer on Rose Avenue, while the highest, was recorded at $4,900,000 for a stunning Mediterranean on King. (For a complete list of home sales, click here.) These figures speak to sales recorded on the MLS only and do not account for any sales sold privately. As for 2014? All indications speak to another banner year where projections have the market rising another 10-18%! And this isn't just specific to Piedmont, but to most of our communities here in the East Bay, whether you are focused on Alameda, El Cerrito, Berkeley, or here in Piedmont, where I live. Clearly, if a purchase is on your radar this spring, the sooner, the better. Historically, our market sees the biggest jump between March and June, levels off somewhere in the summer and declines slightly in the winter months.This year, we had little reprieve in the escalating prices at any point. Building Community, One Family at a Time . . . |
AuthorJulie Gardner, has been writing The Perspective for 18 years and has published more than 750 humorous but always informative, essays on life and real estate. Categories
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