Valuing Transparency and Honesty

I lost a potential listing the other day. They decided to go with someone else which is totally okay. You can’t win them all, right?!

In this market it’s incredibly hard to price property. Homes are regularly going for over asking and often with multiple offers. Sometimes I feel like an agent turned fortune teller, trying to predict the future for my clients. I am a data freak. In other words, I rely on the data to guide me. So when you ask me to list your home, I am coming prepared with the facts.

What are homes selling for?

How long are they on the market?

What’s the price per square foot?

What’s the available inventory?

How much more can I add to the list price knowing the current market conditions?

At the end of the day, I told these sellers a list price they didn’t like. I want all my clients, both buyers and sellers, to feel heard, not pressured and above all respected. But part of my job is delivering professional advice.

I can promise you I won’t blow smoke. I will tell you the straight facts. I value transparency and being honest. I will give you my honest opinion on price but ultimately the the list price is up to you and I will likely support it even if its over what I think is appropriate. And I will advocate for you every step of the way.

With gratitude.

AGENT REPUTATION

Agent reputation. Does it matter? I think it does and let me tell you why. If your agent is unprofessional it could hurt YOU in the long run.

Does your agent have a reputation of honest and transparent dealings?

Are their buyers prequalified and ready to buy?

Are their sellers serious and straightforward?

Has your agent set proper expectations with YOU, their client, so everyone is set up to succeed?

Is your agent easy to work with?

Does your agent return phone calls, text messages, and emails?

All of this can affect YOU when the rubber meets the road because in multiple offer situations, who you work with might make or break the deal.

So how do you know if you are working with a professional? Read reviews online (Zillow is a great resource), ask your friends and neighbors but most of all, interview your agent.

What did you say? Yes, interview your agent!

Any time someone allows us to help them with buying and selling we have in some way or another “got the job”. It’s okay to talk to multiple agents and then decide who you feel most comfortable working with. True professionals welcome the chance to shine and earn your trust and business.

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5 Things To Always Check Out When Buying A Home

5 things to always check out when buying a home.

  • The roof. Two things here. What’s the condition of the roof and how many layers of shingles? If there are already two layers of shingles you will have to tear off all layers and re-roof. If there is just one layer you can probably re-roof over it.

  • The septic system or sewer line. It is possible to have a septic issue and not know it, especially if you are buying a home that has been used as a second home.

  • Latent moisture. Looks like an old leak, and it might be. But there still could be mold behind the wall.

  • Water quality and quantity. Will you have enough water and is your water drinkable? Not as much of an issue when you have city water but if you are on a well it’s important to understand quality and quantity.

  • Radon levels. Radon is an invisible gas that the EPA reports can cause cancer. It has been around since the beginning of time. Some homes have very high radon levels and while it might not be a concern to you, you will have to address it when you go to sell your home.

If you have questions, hit me up!

BUY REAL ESTATE AND WAIT

Don’t wait to buy real estate. Buy real estate and wait.

We all know the media loves a sensational story and there have been plenty surrounding the real estate market. Lately, there has been lots of talk about “The Bubble”. But when we compare what the talking heads SAY is going to happen to what ACTUALLY has happened the outcome is very different. The following example starts with a buyer looking at a home valued at $300,000

Oct 2015 “Housing today- a bubble larger than 2006” - we saw 5.1% appreciation - home is now worth $315,000

Aug 2016 “We’re in a housing bubble” - we saw 5.4% appreciation - home is now worth $332,000

Nov 2017 “Homeownership doesn’t build wealth, a study finds” - we saw 6.1% appreciation- home is now worth $353,000

Sept 2018 “It’s better to rent than buy in today’s housing market” - we saw 4.1% appreciation - home is now worth $367,000

July 2019 “The housing market is about to shift in a bad way for buyers” - we saw 4.0% appreciation- home is now worth $382,000

Dec 2019 “Next year will be hard on the housing market, especially in big cities” - we saw 16% appreciation in 2020- home is now worth $443,000

July 2021 “Housing boom is over as new home sales fall to pandemic lows” - we saw 18% appreciation - home is now worth $523,000

Had fear consumed this buyer back in 2015 they would’ve lost out on $223,000 of increased value, not to mention the seven years of payments made on the mortgage creating even more equity.

Remember, the interest rate on rent is 100%….

Make your financial decisions based on logic, reason, and expert opinions. Don’t make decisions based on fear as you may miss out on big opportunities.

Nine years in a row real estate continues to be rated as one of the BEST long-term wealth strategies.

Questions? Leave them in the chat or DM me. You don’t have to do this alone.

Should I Buy A New Home Now?

You bought your first home. You were feeling like you were on Cloud 9. You had so many great ideas on your Pinterest board to make this place your own. But now several years have gone by and nothing has changed. Your space is feeling cramped and tight and you are dreaming of a new home. But how could you swing it?

Everyone knows this market is nuts. You would have your current home sold in a heartbeat but wouldn’t be able to find a suitable replacement. Prices have gone up so much, it wouldn’t make sense to buy a new home now.

Does this sound like you? If so, we need to talk. I’ve got proven strategies to help you with this kind of move. Please reach out for a free copy of my Pathway to Peace guide or with any questions.

But if I sell my home now I will be homeless!

“But if I sell my home now I will be homeless!”

I’m hearing this sentiment a lot these days. Everyone knows inventory is still low and many sellers are putting off selling because they worry about finding a replacement property. But what if I told you I’ve got a couple of tricks up my sleeve to ease the transition and stress involved with selling and buying in this HOT market?

Seller Contingency - Once your home goes under contract you have a specific time period to find another home. If you can’t find another house to buy you can get out of your contract.

Rent Back - After closing, you can rent the home back from the buyers. This is typically calculated to cover their new monthly mortgage payment and can last up to 60 days.

Extra Long Closing - Contracts are taking longer than normal anyway because we are experiencing an appraisal backlog but it’s not uncommon for parties to agree to a 90-day extended closing.

All three of these strategies give some much need and valuable time to find your next home so you don’t end up homeless.

5 Costliest Mistakes To Avoid When Selling Your Home

The 5 costliest mistakes to avoid when selling your home (watch out for #3)!

  1. Not approving showings. Let’s face it - selling your home can be an inconvenience and inconvenient showings come with the territory. Remember this is just a small slice of your life, the showings won’t last forever

  2. Skipping the cleaning and decluttering. You are used to all your “stuff” but to a buyer, a dirty and cluttered home is a major distraction. Clean and cleared surfaces are attractive and give buyers confidence about the quality and value of your home.

  3. Overpricing the market. You hired your agent for their professional guidance. If they tell you your home is worth $400,000 don’t insist on listing it for $500,000. That unicorn buyer (the one that will overpay for your home) is not out there.

  4. Skipping major repairs and offering a “credit” instead. Carpet credits or painting credits don’t really work. As a rule of thumb if a repair or replacement costs you $1000 the buyer will want $1500 as a credit. Put your best foot forward and you will be rewarded with top dollar for your home.

  5. Not listening to the market. If your feedback is consistently the same: the price is too high, buyers don’t like the shag carpet or the cigarette smell is a turn-off. Listen! These are your customers and not adjusting to their feedback is a mistake.

Home Inspections

I’m going to tell you a little secret: Negotiating inspection items can be a bit tricky. Shows like Million Dollar Listing have not helped either. I cannot tell you how many times the agent on TV says, “We will just get the seller at inspection”. Yeah, it doesn’t work that way.

The purpose of the inspection is to reveal items that cannot be seen with the naked eye or issues that only a thorough home inspection would find. In other words, the giant carpet stain you saw during the showing is not something that should end up on your list of inspection requests. For the best results stick to health and safety issues. And remember, it doesn’t hurt to ask for the things that are important to you. The seller cannot “ditch” you because you sent over a list of inspection requests. All they can do is say no.

If you have kept your list to major items that “any reasonable buyer” would find objectionable the seller is probably going to agree with you. One of my biggest roles in a real estate transaction is helping you through this process whether you are the buyer or the seller.

Being A "Local" Real Estate Agent

Being a “local” has become a somewhat territorial statement. “I’m a local so I know better, have priority, or get to complain about all the non-locals”. This is kinda BS in my opinion, after all, we are all “locals” of planet earth At least I think so. But there is a situation where being a local is super important. Your real estate agent.

I often have clients ask me to help them buy or sell in other areas such as Denver or Grand Junction. And while my real estate license is good for the entire state of Colorado, I don’t feel I am providing the best service possible by helping buyers and sellers in areas I don’t know. If you are not a local you might not know about the large employer that’s about to relocate, the proposed airport expansion, or areas notorious for bad water or shifting soils.

It is so flattering that my clients want to “take me with them” to their new area. And while I cannot be their boots-on-the-ground agent, I’m more than happy to interview agents in other areas and find a great fit - a local who knows their community and can look out for your best interests. My network of excellent agents is literally worldwide so if you need any agent in another area, please let me know. It would be my pleasure to assist you.

Don’t Get Caught!

Did you know that some homeowners insurance policies only cover damages to your home within 30 days of you moving out? I found this out the hard way.

We had moved out of our house and I was checking on it every other day, BUT on the one day I wasn’t there the dishwasher decided to go kaput! What ensued was the basement filling up with water and doing tons of damage.

I called my insurance company to make a claim and received the bad news; all repairs would be out of pocket! Sucker punch to the gut! So what can you do?

If you move out of your primary residence make sure you check with your insurance company to find out what will be covered. In most cases, you can get “vacant home” insurance which is more money than a standard policy but much, much cheaper than dealing with a flooded basement.

Please, please, please learn from my mistake and don’t make the same one yourself. BTW - second homes have different insurance policies that typically fall under different guidelines.

First Offer Is Your Best Offer

“First offer is your best offer.”

This is a phrase we hear in real estate and what I have found over 18 years is that oftentimes it’s correct.

When I help sellers price their homes I use other homes that have sold to narrow in on pricing. Buyers are very savvy and with the help of technology, they can do their own research to see what other homes like yours have sold for.

If you get an offer on your home right away that means you priced it right. In this market, if your home has had very few showings and/or no offers you are likely priced too high. It’s better to get ahead of the market than chase it down with price reductions.

Hold or Sell?

Hold or sell? Should I stay or should I go? Here are a couple of things to consider if you are thinking about selling your home.

If you’ve bought your home within the past 12 months you might not have enough equity in your home to end up ahead.

If you’ve not lived in your home for at least 2 years you might be subject to prorated capital gains even if it was your primary home.

If you’ve had a significant life change (divorce or death of a loved one) most experts would say not to make any changes to your living situation for at least 6 months if possible.

If the market is trending downward and you can stay put it might be a good idea to do so.

If none of the above apply to you and your home no longer fits your needs give me a call, I’d love to help.

LIFE ISN'T FAIR

I was 9 years old when I first learned that life isn’t fair. My third-grade teacher would have a monthly calendar contest. We were tasked with making a creative and colorful calendar on poster board to be displayed as the “official class calendar” for the month.

Oh, this was right up my alley. I loved coming up with ideas and seeing how many items I could hot glue to a poster board before it could no longer support itself. Conversation hearts and doilies for February and spring flowers and Lucky Charms cereal for March And what better to glue to a calendar in October than the candy corn no one will eat.

Each month, as I poured my heart and soul into my creation, I thought surely my classmates would be awed with wonder and crown me the queen of the calendar. But alas, I never won. Not a single time. Now I know this was a long time ago and my memory might be a little foggy but I’m 99.8% sure my calendars were the best, at least some of the time. But I never won.

And that’s when I was introduced to the “good ole boy (and girl)” system. Some of these kids had been together since kindergarten! They had history! And I was the new kid in 3rd grade. It was always the same handful of kids that would win. Were their calendars good? Meh, sometimes, but they had the votes and that’s all that mattered.

One month I had had enough and I campaigned on the playground. Disclaimer: nothing of value was exchanged for votes, but I did present a persuasive argument. Well, that didn’t go over well, and ended up with a call to my parents. I wasn’t acting the the “spirit of the contest.” At the tender age of 9, I realized that the “best girl” doesn’t always win. It broke my heart. And truth be told, it still does.

Life isn’t fair, we all know this but it doesn’t make it any easier. And I know there will be an occasion that I can share this story with my girls and they might realize that while life isn’t always fair, there is so much to be grateful for and if we focus on the good nothing can get in the way.

Team Work Makes The Dream Work!

In order to have a great experience when buying a home you need to have a team of superheroes on your side. Real estate agent. Someone you trust, who has your back and understands the market and area.

A rock star lender who understands mountain properties is easy to communicate with and delivers on time.

An experienced home inspector who is knowledgeable and takes the time to explain the findings in your inspection report.

A title company that is responsive, accommodating, and precise.

You don’t have to do this alone and a great team will walk you through every step.

Tips For Readying Your Home For Sale

Just because we have a lack of inventory doesn’t mean you get to skip the key components for readying your home for sale. Putting your best foot forward still matters and will be a direct result of a quick sale.

  • Take time to declutter. You are moving anyway so take this time to pack up the items you will not be using or needing in the next couple of months. Clear and clean surfaces matter to buyers.

  • Deep cleaning. No one likes to clean baseboards but now is the time. An unclean house is distracting to buyers and they notice everything.

  • Touch-up painting or repainting. Getting rid of scuff marks and dirty walls is a quick and easy way to give your home a nice clean look.

  • Repairs. You know the ones you said you would do when you moved in The loose railing, the missing screen, the broken window pane, now is the time to get those small but important repairs done.

Lesson learned.

You know how you can sometimes learn from someone else’s mistake.

Well here’s an opportunity for you. I recently heard about a home that sold “off market”. This is a home that is sold privately, no Realtors involved. Apparently, the seller (let’s just call her Jane) did not want to pay real estate commissions so she sold it herself. There is nothing inherently wrong with this, however, while Jane saved herself the commissions she cost herself over $200,000 in the purchase price.

Had she called a local Realtor they would have helped her price her home accordingly, in line with fair market value. Jane ended up selling her home for WAY under market value. Your home is likely your most valuable asset. Don’t leave it to chance, fate, or your best guess. Get some expert and professional advice so you don’t end up like Jane.

SOMETIMES THE TRUTH HURTS

You’ve all seen it. American Idol auditions gone bad. They are cringe-worth at best. I find myself squirming in my seat, its perplexing, strangely fascinating and downright sad.

The worst part is when the families greet the crestfallen contestant with soothing words of comfort. “Oh, sweetie, those judges don’t know a thing. You are the best signer in the world!” This is the part that drives me insane. Why lie to these poor people? They are terrible singers and NEVER should have auditioned for the show.

Telling someone the cold hard truth is sometimes very hard. You don’t want to hurt their feelings, crush their dreams or seem insensitive. But your honesty is sometimes the most important thing they need to hear.

A couple of years ago I met with a very nice family who wanted to sell their home and move out of state. The winters were getting tough for them and they were having some health issues. Selling was a must. I met them at their house and noticed right away this was going to be a tough property. There was stuff everywhere, inside and out. The house was dirty, dark, and falling apart.

They gave me the grand tour and we sat down to talk. I asked them about their goals and timeline for selling their home. They needed to be out of here by September which only gave us 3 months to sell. They were short on time, money and resources to get their home ready for market. They looked at me with hope in their eyes and asked what was next. This was the moment for the cold hard truth.

.When I first started in real estate I probably would have tried to gloss things over and ease the blow. “No, its not that bad, buyers can look past your stuff.” Now I know better.

.People hire me for my professional and honest advice. This family had a tight timeframe and a pressing need to leave the area. So I told them the truth.

That no one would buy their home in its current condition. And because we were dealing with a very tight timeframe they were going to need to price their home much below market value to get it sold quickly. I said all of these things with tenderness and grace, because I very much care about how my words make people feel. At the end of our meeting they thanked me for my encouraging words.. What?? I didn’t think I sounded encouraging at all, but then I recognized it was the honesty and a thoughtful game plan that gave them feelings of encouragement.

.Sometimes the truth hurts, but I believe if you really care for someone you owe them the truth and nothing but.