Robert Guthridge's Blog

Financing Contingency Pitfalls [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.] One of the surprises lurking in the standard Minnesota Financing Addendum is the weaker of the two clauses addressing the Buyer’s financing. In layman’s terms, it says that if the closing date arrives and the Buyer’s financing falls through:  a) there’s no deal; and b) the Buyer gets their earnest money back. For obvious reasons, the vast majority of Sellers find that “left at the altar” scenario unattractive. Solution: a Non-Refundable Dowry So instead, there’s a second, stronger option stating that the Buyer has until a specified date — usually 15-20 business days after the Purchase Agreement has been signed — to finalize their financing. As evidence of that, the Buyer’s lender is to provide the S...

“Hmm . . . Where Have I Seen That Arm Before??” “The apple doesn’t fall far from the tree.” –Proverb Where does Chiefs’ quarterback Patrick Mahomes get his rocket right arm? Minnesota Twins fans of a certain age (I qualify) know the answer: “from his old man.” Mahomes senior was a journeyman major league pitcher who ultimately played for six teams over a decade, including 4 years for the Twins in the ’90’s. I remember exactly two things about the Dad: 1) he was tall and whippet-thin (by contrast, his son is tall and a burly 235 lbs.); and 2) he had a wicked fastball. I’d root for the Chiefs in this Sunday’s Super Bowl against the 49er’s, but I can still remember Chiefs Coach Hank Stram taunting Vikings fans in their upset win in Super Bowl IV (I’m also an old Vikings fan). Plus, once upon a time, I used to live in the Bay Area . . . from RSSMix.com Mix ID 8230700 https://ift.tt/2RD0fDk via IFTTT

[ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] Just to be clear: former Harvard Law Professor and now Trump Impeachment lawyer Alan Dershowitz didn’t explicitly say Richard Nixon shouldn’t have been impeached. I did. But, that’s the crystal-clear import of the argument he made on behalf of Donald Trump yesterday. Here’s what Dershowitz actually said: “Every public official that I know believes that his election is in the public interest . . . If a President does something which he believes will help him get elected, in the public interest, that cannot be the kind of quid pro quo that results in impeachment.”  –Alan Dershowitz, arguing before the Senate in defense of Donald Trump. I’m not a Harvard-trained lawyer — I went to the University of Minnesota Law School — but Dershowitz’s argument is beyond ris...

There is a silent trend unfolding across the United States.  Like most things, it is slowly brewing and will tip over in the next decade or so.  While many baby boomers feel as though they will never need it, millions upon millions will end up in retirement homes.  Retirement homes are not cheap so in […] from RSSMix.com Mix ID 8230700 https://ift.tt/2U7i9jd via IFTTT

Consumer Psychology and the Too-Precise Price When you see an oddly-priced “For Sale” home, there are two possible explanations (at least in my experience selling residential real estate): One.  Drawing Attention. The way to stand out from homes listed at $389,900, $399,900, etc. is to price at $398,731 or some such (I haven’t seen a home priced in cents . . . yet ). Marketing Gimmicks & Cockroaches Which leads to reason #2 :  anecdotal data suggests that consumers may think that a (very) specific asking price is somehow more accurate and “scientifically” arrived at than a round number. Experienced agents, on the other hand, view a too-precise price for what it is:  a marketing gimmick. Just like cockroaches, however, you seldom see only one, which is why I frown on the practice — and generally have a negative association with such listings (and their agents). P.S.: What should a Buyer offer for a house listed at $398,731? My suggestion: ...

Real estate agents are expensive, which makes many people consider selling their house on their own. When you sell without an agent, it is commonly called FSBO or for sale by owner. On the surface, selling your house as a FSBO may save thousands of dollars. However, there is a lot of work involved in ... Read more The post Pros and Cons of Selling Your House For Sale By Owner (FSBO) appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2uGoebs via IFTTT

Realtors vs. Appraisers vs. Zillow “347-0”. That’s approximately the number of times — including just this afternoon — that I’ve been called by appraisers wanting the scoop on a property I’ve recently sold, vs. the number of times I’ve called an appraiser to find out the same. Which makes sense: as the listing agent (representing the Seller), I’m thoroughly acquainted with the Comp’s, from the inside out . . . while all they have is the finished square feet, number of bedrooms and baths, and the sales price. That should give pause to anyone who relies on an appraised value to buy or sell a home — let alone sites like Zillow . . . P.S.:  Why “347” when I’ve only been involved in perhaps 250 deals? Because appraisers also handle refinancings. See also , “ Cultivating Good “Appraisal Karma” .” from RSSMix.com Mix ID 8230700 https://ift.tt/2O0UInB via IFTTT

“One Post Every Two Weeks” vs.  . . . Daily(!) “A good blog needs to publish new, original content on a regular basis . . . As a general rule of thumb, a good blog should be updated with new posts at least once every other week.” –“Today’s Best Real Estate Blogs,” RETipster. Applying the standard above, a Realtor blog needs to publish at least 26 posts a year to be topical. If so, I could’ve stop writing for the year . . . last week. Pay for Play? If you really want to know the best Realtor blogs in the U.S., ignore all the lists titled, “29 Real Estate Blogs Every Realtor Should Read in 2020,” “24 Must-Read Real Estate Blogs,” and the like. At least in my experience, those lists either use highly arbitrary selection criteria, or, practice what I’ll call “The Golden Rule”: whomever pays them the most gold somehow ends up on their list. Instead, go ahead and Google “best Realtor blogs,” skip the ads and “best” lists, and check out the individual blogs that appear. Trust ...

The Virtue of a Well-Stocked Pipeline “We will sell no wine before its time.” –Ad campaign for Paul Masson wine. If you’ve never made a living 100% on commissions — and not selling apparel or widgets, but big-ticket items like homes — it can be terrifying. Not only are the paydays few and far between, but, especially in today’s housing market, there seem to be more steps along the way, and more things that can go wrong. Right up to and (sometimes) continuing through the closing. Virtue of Patience — and a Big Customer Base It’s also the case that agents feeling financial pressure can succumb to the temptation to pressure clients. Unh-unh. There are two reasons why good agents never do that: One . It doesn’t work. Clients sense that, and (rightfully) react badly to high pressure sales tactics — usually by getting another agent. Two . It’s a violation of the Realtors’ fiduciary duty, which requires that they put their client’s interests ahead of their own. Which is wher...

“Build It and They Will Come” Real Estate Development “Silicon Valley Spec House Seeks $42.8 Million.” –Headline, The Wall Street Journal. For the uninitiated, a “spec” or “speculative” house is a home that a developer first builds, then tries to sell. That’s opposed to a home that’s commissioned by/for an existing client, and built according to their specifications (and budget). To calculate the usual going rate for spec homes here in the Twin Cities (vs. Silicon Valley), subtract a digit. Then divide by two or three. from RSSMix.com Mix ID 8230700 https://ift.tt/37tRiSl via IFTTT

“The race is not to the swift, nor the battle to the strong — but that’s the way to bet.” –Ecclesiastes (with an assist from Damon Runyon). For the benefit of non-Realtors, here’s a “Top Ten” List of ways that seasoned Realtors know that a home Buyer is serious. 10. They’re represented by a good, experienced Realtor (vs. their part-time Realtor buddy . . . or no one ). 9. They’ve been qualified by a lender, and know what their budget is. 8. They ask germane questions (“How old is the furnace?” “What work has the homeowner done to the house?”) vs. irrelevant ones (“where did the owner get their artwork?”). 7. The Buyer’s home search has “traction”: their home search progressively tightens around a specific location, style of home, and price point. 6. They adjust their schedule(s) to learn the market in a concentrated time period, and block out 2-3 hours, minimum, to see multiple homes per outing. 5. All ultimate decision makers are “on board” and present for showings (vs. partn...

“So Done” vs. “Are You Done Yet?” For an unassuming four letter word, “done” sure has a lot of different connotations. I count at least eight (below), including two meanings — one good, one bad — popular in residential real estate. One . To perfection. Example: “That house is done.  It’s not staged like a spec house.”   See , “done to the nines.” Two . Dated, out-of-fashion; over.  Sometimes preceded with a “so” for emphasis.  “Earth tones/granite counters/stainless steel are [so] done” (actually, they aren’t). Three . Completed a chore or task. “Are you done with your homework?”; “the laundry’s done,” etc. Four . Completed an unsavory or illegal task, usually uttered in a low, confidential voice. Hit man to client:  “it’s done.” Five.  Thoroughly cooked food; upbeat declarative. “The steaks are done!” Six . Exhausted one’s patience — usually a parent’s — following which the activity in question is abruptly ended.  Most common formulation...

Three Quibbles A new study purports to put a number on the value of curb appeal: 7%. The study’s authors did that by analyzing Google Street View photos and sales data from 88,980 properties in the greater Denver area. Specifically, they performed these three steps: “The researchers manually scored a set of properties, grading 400 images on a scale of 1 to 4, with 1 indicating the lowest appeal and 4 the highest. Low-appeal properties had blemishes like broken pavement and overgrown grass, while high-appeal properties were characterized by features like well-kept lawns and nice landscaping. The researchers then used these scored images to train their deep-learning algorithm to assign curb-appeal values. Lastly, they used the algorithm to grade the photos in the larger data set.” –“Selling Your Home? It’s What’s on the Outside That Counts”; The Wall Street Journal (1/23/2020). All of which begs the question: is the study right? (about curb appeal being worth a 7% premium)....

Realtor “Atta-Boy”: ‘Nice Listing!’ A new listing has a surprising number of parallels with the opening of a Broadway play. There’s the opening night anticipation. There are the hopes (and fears) about whether the audience (prospective Buyers) will like it. And there can be a sense of dread about what the toughest critics will have to say. Agent-to-Agent Feedback In real estate, the toughest critics are invariably . . .  fellow Realtors. Which is why one of the best — and earliest — signs that a new listing is going to meet with a strong reception is when seasoned agents weigh in with a “Nice listing!,” “Congratulations,” or the equivalent when the home’s on Broker Tour (held for Twin Cities Realtors every Tuesday from 11 a.m. to 1 p.m.). What they’re really saying: the home is attractively priced, well-staged and presented, and — perhaps most importantly — likely to sell quickly. P.S.: notwithstanding the foregoing, I like to tell clients that the only feedback I’m real...

(Partial) Realtor Job Description 2020: Multiple Choice Test your knowledge of modern residential real estate practice, and answer the following multiple choice question: Q:  Who should the listing agent (representing the Seller) meet at the home? A. The appraiser working for the Buyer’s lender; B. The home inspector doing the city Truth-in-Sale-of-Housing (“TISH”) inspection; C. The photographer; D. The Buyer’s home inspector. Correct answer(s):  “A.” and “C.” Here are the explanations: A. Yes. Especially if the home sold in multiples above ask, it’s imperative that the listing agent support the sales price for the subsequent appraisal. The Realtor does  that by documenting the existence of multiples; explaining why Buyers found the “subject” home so attractive; and sharing any relevant details about nearby Comp’s, Pending’s, and Active’s. B. No. City inspectors do have some discretion, but in general their scope is limited and well-defined. C. Yes. L...

Grain vs. Stain If you can’t identify a food you’ve never tasted before, the cliche answer is that it “tastes like chicken.” That’s usually a safe answer, because, depending on how it’s prepared, chicken can taste like anything . Oak floors are a bit the same way (at least to my eye). “Tastes Like Chicken” I recently previewed a home with what appeared to be striking walnut floors. In fact, they were oak, just stained darker to look like (more expensive) walnut. Nice way to save some money — and I’m guessing 9 out of 10 prospective Buyers can’t tell the difference (and won’t care!). See also , “ The Case of the Too-Shiny Hardwood Floors .” from RSSMix.com Mix ID 8230700 https://ift.tt/2Gf8aAa via IFTTT

Advice to Would-Be Home Sellers on Dual Agency: “Don’t” [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.] If your prospective Realtor won’t agree to adding the clause above to your listing contract . . . you should consider hiring another agent. In fact, I feel so strongly about that stance that I’ve included that language in every listing I’ve ever taken. Conflict of Interest Why is that promise such a big deal for would-be Sellers? Because otherwise, you have no assurance that your agent won’t also be negotiating against you, in their capacity representing your Buyer. I don’t know about other agents, but I don’t know how to negotiate against myself. Mutually Exclusive Roles Instead, agents who represent both the Buyer and Seller in the same transaction — a practice called “dual agency” — essentially play a ne...

Thinking Outside the Box Inside the Circle I definitely prefer walking around Lake Calhoun in the summer-time. For one thing, the people watching is better — there are more of them about, and, minus the bulky winter clothing, you can actually tell the genders apart. For another, you don’t have to worry about below zero windchill giving you frostbite. However, winter walks do have some redeeming virtues. Like, if you’re running late for something, you can always abbreviate your walk simply by cutting across the middle of the lake! P.S.: Psst! Don’t tell anyone, but you’re also looking at the world’s biggest off-leash dog park — at least until the March (April?) thaw. from RSSMix.com Mix ID 8230700 https://ift.tt/30EFRVe via IFTTT

“The More Things Change” Department Once upon a time, when I started selling real estate in 2002, the worksheet that Buyers and Sellers signed at closing was simply known as . . .  the settlement statement  (or just the closing worksheet, to avoid any jargon). Then it became the “HUD-1” (HUD stands for “Housing and Urban Development,” the federal agency — soon to be led by Ben Carson — that oversees the form). Most recently, it morphed into the “ALTA” (short for “American Land Title Association”). All of which leaves veterans such as myself referring to the form, once again, as “the settlement statement.” Format Tweaks Does the name matter? Not really. While there have been modest changes in format along the way, the constants remain a summary first page, followed by a second page that breaks out expenses. For Sellers, the key items to track are the Sales price; any Seller-paid’s; commission; closing fees; transfer taxes; and pro rata adjustments ...

I have invested in both real estate and the stock market, and I believe real estate is hands down the better investment. Even with the stock market increasing significantly, I am making more money on my rental properties, and they allow me to retire much earlier than the stock market would. The conventional thoughts are ... Read more The post Is It Better to Invest in Real Estate or Stocks? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2G5Klun via IFTTT

A Rose Penthouse by Any Other Name “Who are you going to believe, me or your own lying eyes?” — Caption, New Yorker cartoon. Quick! Guess how tall the hotel pictured above is? (located in Cancun, my wife and I recently celebrated our 21st(!) anniversary there). According to the resort’s owners and its marketing literature — not to mention the hotel’s own elevator buttons — it’s 29 stories. But, a cursory count of the actual floors from outside suggests that it’s actually only 19 stories. Another tell: the exercise room that’s billed as being on floor #12 looks curiously more like floor #4 (in the photo above, it’s the dark blue band of taller windows a couple stories up). Missing: 10 floors So, how do you conjure up an extra 10(!) floors, seemingly out of thin air? There are no floors #2 – #11; instead, there’s only one floor in that range (albeit with high ceilings), for conferences and meeting rooms. In addition, there’s no floor #13, presumably for superstitious reaso...

“Ball & Chain” vs. Source of Stability/Emotional Support A “contronym” is word that is its own antonym. Examples include the word “left” (“the gentlemen have left and the ladies are left”); “off” (“to turn off,” but also “activate,” as in “the alarm went off”); and “sanction” (both “approve” and “punish”). So, what do you call a symbol — like an anchor — that can mean two, opposite things? Meaning #1: someone’s rock or foundation; main source of emotional support. Meaning #2: “ball & chain.” I don’t know that there’s officially a term for that. Anyone?? P.S.: As best I can tell, the distinction between the two types of anchors comes down to the context, and specifically, whether the speaker values freedom (to do something), or emotional support. See also , “ Canadian Quirks: What’s the Opposite of “Tabling” Something? “Tabling Something” ; “Why is Calling Someone a “Piece of Work” an Insult?” ; and “ If “Colloboration” is Good, Why Are “Colloborators” Bad? .“ Also: “...

Did the Appraiser Goof? A client trying to refinance his mortgage recently ran into an infrequent but not unheard of problem: a low appraisal. My client was convinced that the appraiser goofed because — amongst other things — the appraiser listed the home as only having one Bathroom, not two. Unfortunately, the second Bathroom is in the basement. Because appraisals typically disregard anything below grade — including very nice full Baths(!) — the appraisal was technically correct. Disregarding Below Grade Space Why disregard below grade square feet?  Because it varies so much. At one extreme, walkout basements with high ceilings and lots of egress windows and high-end finishes (like recessed lighting and hardwood floors) practically feel like they’re above ground. The discount for such a basement might be as small as 30%. At the other extreme, a dark, dingy basement (the haunted, “Halloween” kind) could easily be discounted 75% or more. To avoid apples-to-oranges compari...

Guilt By Association When agents see a listing — in mid-January, in Minnesota — with leafy trees and a bright, green lawn, their knee-jerk response isn’t to say to themselves, “My, what gorgeous landscaping.” It’s to click on “History” on MLS to see how long the home’s been on the market — and find out how many price reductions the Seller has taken since then. Which is why home sellers who are especially proud of their (flattering) landscaping should put Summer photos on their Dining Room table, where prospective Buyers will be sure to see them when they do a showing. But make sure that the photos on MLS are seasonal . . . P.S.: The other association long-time Realtors have with unseasonal photos? The house is a foreclosure. When that’s the case, though, there are usually only a few (grainy) photos attached to the listing, not the 20-30 photos that are now standard for an average-sized home (technically, while MLS now allows unlimited photos, only large, uppe...

Setting the Bar (Way) Too High One of my favorite Op-Ed page cartoons shows an unconscious patient being operated on by a team of surgeons. Suddenly, there’s a spike in the patient’s vital signs, whereupon he bolts upright, and loudly announces to the laboring surgeons:  “You should know that I’m the most successful personal injury lawyer in town.  If you screw up, I’ll have all your licenses — and your houses, too!” Then, he lies back down. The last panel of the cartoon shows a light bulb simultaneously going off in the heads of all the doctors . . . whereupon the patient’s vital signs suddenly go flat. Home Seller Hubris ( make that , “ Would-be Home Seller Hubris”) What recalled all that was a would-be Minnetonka home seller I encountered recently. In the course of a two-hour meeting to discuss listing their home, the prospective client announced that they wanted to list for more than 25% over my recommended price range; “didn’t believe” in staging — or any other p...

Seasoned vs. Green Buyers; The Role of Pre-List Networking “The first Buyer is (often) the best Buyer.” –Popular Realtor saying. It’s accepted wisdom amongst veteran Realtors (which I happen to agree with): “the first Buyer is (often) the best Buyer.” Why’s that? The explanation has to do with the nature of the pool of home Buyers at any given moment, plus Buyer behavior in a Seller’s market with too-little inventory (true of many housing markets nationally right now, including the Twin Cities). Jumping the Gun Think of it this way: when new listings come on the market, who knows about them first? Answer: serious, “seasoned” Buyers represented by top agents at the biggest, most-connected Brokers. Such Buyers have already done their homework; are financially well-qualified; and both know the market and what they’re looking for. Thanks to modern technology, such Buyers learn in real-time when something meeting their criteria hits the market. They may even know a couple we...

Is it good news or bad news that a home scheduled to be on “Broker Tour” — essentially, open houses for local Realtors each Tuesday in the Twin Cities — abruptly cancelled? Answer: it depends. It’s good news if the reason is that the home received multiple offers, and sold at 11 p.m. Monday night. It’s bad if a vacant, “for sale” home isn’t shoveled out (in the wake of the Twin Cities’ most recent snow), and the listing agent felt compelled to cancel because the walk was too icy. P.S.: Ditto for plumbing or heating issues, or any other emergency repairs. from RSSMix.com Mix ID 8230700 https://ift.tt/30jxbDD via IFTTT

Reason Not to Lie #37 “Lying is hard, telling the truth is easy. By definition, every good Realtor juggles: multiple clients, dozens of showings, lots of parallel deals at varying stages. It’s hard enough keeping all the details straight and presenting them coherently to your client(s); not tripping yourself up in a web of lies would seem to increase the “difficulty factor” exponentially.” –Ross Kaplan, “Freakonomics Rebuttal“; City Lakes Real Estate blog. Faithful readers of this blog might be surprised to hear me say that, as far as I can tell, Realtors seldom lie — and good Realtors never do. There are multiple, reinforcing reasons for that: it’s unethical, it’s bad business, it’s hard to do (see above), it’s easily found out, etc., etc. On that last score — it’s easily found out — I heard a good anecdote recently about a Realtor who felt the need to “embellish” the turnout at a Tuesday broker open. If you didn’t know, at least in the Twin Cities, the custom is for Realtors to...

The Home Seller – Realtor Interview (aka “Listing Presentation”):  What Agents Need to Ask Homeowners [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.] When it comes to listing presentations — essentially, a job interview to represent prospective home sellers — most people think of questions for homeowners to ask Realtors. Things like, the Realtor’s average market time to sell a home; how many homes they sell annually; and those homes’ average sales price as a % of asking price. But, good Realtors know it’s a two-way street. Long before their marketing skills come into to play, prospective listing agents first need to be good investigative reporters. What’s the first thing they need to determine?** A. How much the owner owes on the home (i.e., what their mortgage balance is). B. Whether they have legal ...

A Fern Hill Primer — Plus, the Neighborhood’s Two Distinguishing Features There aren’t too many Twin Cities neighborhoods that include both 1950’s ramblers for $300k and — less than one mile away — custom, upper bracket Contemporaries with gorgeous views of Cedar Lake and the Downtown Minneapolis skyline commanding close to $3 million (for 2545 Huntington, pictured above). But, that succinctly describes the Fern Hill neighborhood in St. Louis Park. Also known as the “First Alphabet,”** Fern Hill is bounded by Minnetonka Blvd. on the south, Highway 100 on the west, France Ave. on the east, and the Lake Forest neighborhood to the north. $300k to $3M What accounts for Fern Hill’s broad price range? Its eastern edge, bordering Minneapolis, is increasingly dominated by upper bracket single family homes — a significant number of which have been recently remodeled. By contrast, the homes near Fern Hill’s western boundary, Highway 100, are much more modest in size — plus, depending...

Conspicuously Missing Term: Asking Price [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.] One of the more confusing contracts in residential real estate is what’s called a “One-Time Showing Contract.” As you might guess, unlike a Listing Contract, which allows the Realtor to market a home to the world, a One Time Showing Contract contemplates a deal with exactly one prospective Buyer. Key Terms In addition to naming the Buyer, the contract typically lists the agent and broker coordinating the one-time showing; the contract term (one year is standard); the commission the Seller will pay if a deal results; and who the Seller will use for closing. Notably missing? An asking price. Non-Binding on Seller The explanation is that the asking price — along with other key terms like the closing date, earnest money, and ...

“Just Say ‘No!’” (or, ”Tomorrow Works Much Better”) As a rule, the more accessible a home is to prospective Buyers . . . the easier it is to sell. But, that doesn’t mean Sellers can never say “no” — either to a showing request, or, to a Buyer (and their agent) literally standing in their doorway. Here are four situations where, as listing agent, I give my clients permission to “just say no” ( Note : arguably, there’s a fifth scenario as well:  temps in the teens (barely), with a below zero wind chill — Minneapolis’ current weather. But then, Buyers aren’t likely to want to see homes then, either): One . The agent and their client are late. At least in Minnesota, showings are always for a one hour window. An agent who requests 3-4 p.m. on a weekday and shows up at 4:30 p.m. should expect to be refused, especially if the homeowner is juggling small kids, work demands (they have a home office) — or is just preparing supper. Two . “Serendipitous” showing requests (also kno...

More than WHAT? My short answer to the question, “can I get more for my house if I put on a new roof?” is, “ yes , you can.” That is, if by “more,” you mean, “more than what you could have gotten for the home without a new roof — especially if the current one is leaking.” Unfortunately, what most homeowners (and would-be Sellers) are really asking is, “If I spend $10k (or $15k) on a new roof, can I add at least that much to the selling price?” My answer to that is an unqualified “no.” Avoiding Discount ≠ Premium That’s because home Buyers expect to buy a home with a functioning roof, that has at least some remaining useful life. If instead the roof is demonstrably failing, Buyers will deduct not just the cost of a new roof, but another 20% to 30% for the related hassle and risk (there’s ALWAYS a surprise or two). Of course, that’s assuming: 1) prospective Buyers are still interested in the home; and 2) their lender will let them close on a ...

Agent-to-Agent Closing Courtesy While the Seller is busy passing house keys, garage door openers, etc. to the Buyer at closing, guess what the Buyer’s agent often gives the listing agent (representing the Seller)? No , the correct answer isn’t, “a flask of whiskey”. Rather, it’s the listing agent’s lockbox. As a courtesy, Buyers’ agents will often ask if — at the conclusion of the Buyer’s walk-through inspection — the listing agent wants them to remove their lockbox and bring it to closing. That saves the listing agent one last trip to the home — doubly appreciated when they may be scrambling to review the final closing numbers and do any other last-minute, pre-closing prep. Creative Lockbox Placement Of course, that assumes the lockbox is attached to the home’s front door. Unfortunately, that wasn’t an option on a recent listing of mine, because the front door handle had an open loop, meaning the lockbox could be easily slipped off.** Instead, I looped a bike chain around a ...

Why “Just Previewing” (Usually) Serves Sellers’ Interests A Realtor showing is when a Realtor takes their client — a prospective Buyer (or one would certainly hope!) — through a “For Sale” home. No competing Sunday open house traffic, no busybody listing agent (representing the owner) present, and — perhaps most importantly — no owner around. The convention is to set up the showing online anywhere from a few hours to a day or two beforehand, and to block out a one hour window. “Preview,” Defined So, what’s a Realtor preview? When the client isn’t along. As a courtesy to the homeowner, the convention is to allow them to stay put while the previewing Realtor takes a look. That’s significant because the owner can forego the whole “lights-on-vacuum-clean-the-Kitchen-sink” fire drill (that’s only appropriate if the Realtor brings the client back). Practically, previewing can also mean that an owner with a bunch of little kids doesn’t have to bundle the...