Selling Your House for What You Need!
June 22nd, 2008 categories: Market Trends, Relocation Tips, Selling Strategies
In today’s Wall Street Journal section of The Denver Post is a column written by Jeff Opdyke. “A Trip - And a Change of Heart” tells the story of his unfortunate experience in trying to relocate to Hong Kong. Unlike the New York Times, WSJ blocks out online readers unless they subscribe, so I don’t have a link to the column.
Opdyke tells of the difficulties of selling his home, of finding the proper school situation for his children, and of locating a suitable apartment in Hong Kong. It sounds like is was a heart wrenching decision for his family, but they decided to pass up the opportunity after a fraught trip to settle the details.
There are probably many reasons why the decision was the right one for this family - international relocations can be difficult.
The rewards for some are huge, but it still causes upheaval. Much of my client base are relocating families, and several have been posted in China and Hong Kong. They describe such an acute lack of closet space that the extra shower becomes suitcase storage. They also describe the joy of finding peanut butter in the small local grocery mart.
A Realtor friend of mine, Bill Dolan, was so moved by Opdyke’s column that he wrote the author a letter in response. Bill noticed some very telling things about the comments Opdyke made regarding the sale of his home in Louisana. He’s given me permisson to reprint his comments, but I’ve edited them down a bit. You’ll get the gist.
Having worked with many corporate transferees over the years, I couldn’t help but take special notice of some select sentences from your article:
- “Nor can we afford to reduce our house price by the amount we’d need to move it quickly.”
- “We can’t afford to throw away tens of thousands of dollars in equity to facilitate a rapid sale.”
- “That leaves us no choice but to wait out the market.”
Real estate values have declined in every single area of the United States. In my opinion, before you even entertained the idea of moving to Hong Kong, you should have contacted three brokers and/or an appraiser to ascertain market value of your home and used that as a platform: if I jump, can I make it to the other side of the gorge? I am amazed at how few sellers are willing to accept or even try to understand the concept of “fair market value.”
- Your house would move quickly if you priced it at “fair market value.”
- You are not throwing away tens of thousands of dollars in equity to facilitate a rapid sale. You can’t throw away something that isn’t there to begin with. What you paid for your house, and what you owe against it are not relevant. The definition of fair market value is what a ready, willing and able buyer pays for a commodity. (As an aside, what do think the current fair market value of a large SUV is these days? Same as last year, or the year before?)
- You don’t need to wait out the market. If you are not willing to accept today’s “fair market value,” then take the home off the market until the market tells you that you have the equity you want or need to make a move.
I love this article from the New York Times. It is now part of my listing presentation. Over the years I have come to the conclusion that if a property is on the market for more than 30 days or has had 15 showings without an offer, then the price is too high (There are certain exceptions when it comes to very high-priced multi-million dollar properties.)
Good luck with your future relocations.
I’d like to call Bill’s comments an open letter to sellers. This is such a tough conversation to have with sellers. We Realtors aren’t without sympathy for your plight. We certainly wish you could “get what you need”.
I’m a little more patient than Bill seems to be. I generally say 20-25 showings and at least 30 days on the market is the test period. If you don’t have an offer after 25 bona fide buyers have walked through the door, then the price is too high. Your broker is doing his/her job if you’ve had that many lookers. The broker’s job is to expose the property and get traffic.
I’ve had sellers say to me, “Well, you’re just not convincing them to write an offer.” What should I do? Put a gun to their heads? Often the feedback is just disguised price objections. If the Buyer’s agent says that the house is on a busy street or needs too much work or looks outdated, then that’s a disguised price objection. A seller’s choice it to pick up and move the house or drop the price; update the house or drop the price. Sellers don’t like to hear this, and delivering the news isn’t the fun part of our jobs. It’s probably even worse than putting out open house signs…
So, thanks for sharing Bill. Good luck!
If you like what you read here at LifeStyleDenver, subscribe by clicking on the button top right.
| Discussion: 2 Comments »
Buyers Beware - Market Turnaround Ahead
June 8th, 2008 categories: Market Trends, Real Estate News, Relocation Tips
Multiple offers? New listings gone in under a week? Is this the Denver real estate market?
Yes! In our medium price ranges, $250,000 to $800,000, things are going fast. I’ve had several brokers in my office tell me that they’ve been in competitive bidding situations recently. More than one - sometimes they’ve actually had two or three competitive bids on houses for the same buyers. That must be surprising for buyers who read the main-stream media and think they should still be underbidding for everything.
Buyers - you need your broker’s advice more than anytime now. Ask to see recent comparable sales in the neighborhood you’ve identified before you make an offer. Sometimes a house is already competitively priced, or at least well-priced. Sometimes there’s room for a bit of negotiation, sometimes there’s room for a lot.
Another important piece of information to know about a house is how many days the house has been on the market. A short time on the market usually indicates less room for negotiation. A short time on the market and well-priced means very little room for negotiation.
If the house you love is also in tip-top condition, recently remodeled or brand new, then there is more of a chance it will sell quickly.
When we see multiple offers, there are usually 3 things in common:
- They’re well-priced.
- They’re in Central Denver neighborhoods - not so much the suburbs.
- They’re in top showing condition.
Buyers who buy today are going to look back a year from now and find they’re sitting in the cat-bird seat. That’s when we’ll all realize the market turnaround began in the summer of 2008.
| Discussion: 4 Comments »
How to Find Your Children’s Next School
April 5th, 2008 categories: Life In Denver, Relocation Tips
This is a guest post written by Diane Sweeney of Spark Innovation. Remember, it’s not all about test scores.
Choosing the Right School for your Child
As an Educational Consultant and a mom with two small children, I have run into countless parents asking for advice on how to choose the right school for their child. Parents have an unprecedented array of choices when it comes to schooling today, and it is this array of choices that is stressing them out. They worry what type of school will best meet their child’s needs. They wonder if they should go public or private. And they fear that they might make the wrong decision. Here’s some advice if you are one of these parents:
Expect the school to be responsive:
Just like other aspects of our consumer-driven society, all schools are in the position to recruit students. It is never too much to ask to set up a meeting with the principal, visit classrooms, or meet with teachers. If a school seems to be less-than-responsive to these types of requests, it is an indication of potential climate issues that should be explored further.
Observe during instructional time:
Find out when the best time of day is to visit so you can observe during instructional time, and be sure to observe across the grades so you get a complete picture of the whole school. While observing, pay attention to how the teacher interacts with students. Does the teacher seem to like the kids? Does the teacher provide enough structure so that the class runs smoothly? Does the teacher also give the students freedom so they have the time and opportunity to discover new learning? My guiding question is always, “Would I want to be a student here”.
Don’t let nostalgia be your guide:
Odds are, if you have school age kids, you were in school about 30 years ago. Just like all professions, education has changed a lot in the past 30 years and schools look remarkably different today than they did in the 1970’s. When choosing a school, parents are sometimes comforted by the familiar, but the familiar isn’t always how children learn best.
Examine how classrooms are set up:
Elementary school classrooms can tell you a lot about instruction. When you visit schools, look for classrooms that have meeting areas where the class comes together to discuss ideas and share. Look for desks or tables that are clustered into conversational settings. Desks in rows, albeit familiar, indicate that students are isolated in their daily work…something that is no longer considered good instructional practice.
Real books are essential for literacy learning:
Classrooms should be bursting with books that are accessible and are at the students’ reading level. Most elementary classrooms today have a classroom library that is organized by reading level. Look for a school that spends money to provide teachers with the tools they need.
Math manipulatives count:
“Math what?” you might ask. Math manipulatives are the hands-on tools we use to teach math so the students not only understand how to solve math problems but also have a conceptual understanding of the math behind the problem. Ask the teacher if and how these are used with students.
Trust that it is going to be okay:
This is the hard part…no school is going to be perfect. Whether it is an upscale private school or the neighborhood school down the street, there will inevitably be challenges for your child. There will be years when your child has a teacher that is terrific and years when the teacher might not be top notch. There will also be times when you wonder if you made the right decision. If you’ve read this far, it’s fair to assume that you are a parent who cares deeply about the success of your child, and for that reason alone your child will be just fine. Well, maybe even better than fine.
Diane Sweeney is Lead Consultant for Spark Innovation, an organization that provides consulting support to school districts across the US. In the past, she has been a classroom teacher, a literacy coach, a trainer for literacy coaches, and an instructor at the university level.
| Discussion: 4 Comments »
Why Do We Bother to Educate our Kids?
March 9th, 2008 categories: Life In Denver, Relocation Tips
School search while relocating?
My kids know everything, they don’t need to learn. They certainly know way more than I do - and they won’t hesitate to point that out on a daily basis. But some people seem to want to provide an education for their offspring. How many times have we Realtors heard, “where are the good schools?” It’s hard enough to find the perfect house, without having to worry about visiting every school. Rest assured, Denver has excellent school choices. Our metro area public and private schools offer programs designed for every type of child and style of learning.
How do you know which schools to focus on?
My boys have been attending Denver Public Schools since kindergarten - and, ugh, now they’re teenagers. I have one son who is gifted and another with an emotional disability. The Denver schools have been supportive of both of them, and the teachers work hard to give them what they need to learn. We ask questions and stay involved. It isn’t enough to look just at CSAP scores. Go visit the schools, interview the teachers, observe the classrooms. It is time consuming, especially if you’re focused on house-hunting.
Hunt Schools First
Many of the relocation buyers I’ve worked with have researched schools extensively before even coming for their first visit here. They conduct phone interviews and research online. This helps me narrow down neighborhoods for them. Here is a link to my web site with available school information, www.gretchensdenver.com.
Our experience with DPS goes to show you that children can receive an excellent education from many school situations and from different school districts - even a “city” district like ours. You should advocate for your child, no matter where she goes to school, and pay attention to what he needs. The schools care, the teachers care. I care too, and will help in any way I can with school information.
O.K., I have a confession. My “gifted” son has recently made me revisit the idea of what that label means. He was caught on video last month with a friend writing an inappropriate word on a cut-out of a banana (the top banana reader award). Age appropriate? Maybe. Gifted? Not so much.
| Discussion: No Comments »
If You Don’t Like the Weather in Denver, Stay a Minute
March 2nd, 2008 categories: Life In Denver, Real Estate News, Relocation Tips
The weather changes here every 5 minutes. I’ve been in Denver for 26 years and I still can’t get used to it. We live and die by the weather report. We don’t discuss last night’s sitcom around the water cooler, we discuss the weather.
Yesterday it was 74 Degrees!
I snapped these photos yesterday while I was headed out to pick up a buyer who is relocating to Denver from Dallas. It was a stunningly beautiful day here, and we were excited to look at potential homes. As we drove throughout the south Metro Denver area, we marveled at the spectacular view of the Rockies. We laughed that the forecast was calling for snow today. I reminded her that the weather here can be pretty changeable.
Food for the Soul
When I got home in the evening, my husband and I decided to get a bite to eat at our favorite Indian restaurant, Royal India. I reveled in the fact that I was wearing my open toed shoes. I even bent over to admire my freshly painted red toenails. We enjoyed our Chicken Biryani and Paneer Vindaloo, and noticed that it seemed a little cooler as we were leaving.
Descent of the Blizzard
At 5 am I woke up to hear the rushing sound of heavy winds. I thought perhaps it was snowing, after all. Occasionally our newscasters actually get the weather right. I peeked out the window - no snow! Cozy back in my bed, I thought maybe we’d dodged the winter bullet (although March is typically the snowiest month here…) When I finally rolled out of bed this morning this is what I saw. A pile of snow, blowing winds, and freezing temperatures. Our high temperature today was over 40 degrees below our high yesterdays.
California Dreamin’
Those California friends and relatives of mine don’t get it. When I was growing up there, we didn’t look at the weather forecast for months at a time. It was always the same. One of my new California friends recently told me not to put the weather bug on this blog site. He said, “no one really cares about the weather.” I said, “that’s because you’re in San Diego you nut! In Denver we’re addicted to the weather, and anyone relocating here needs to know that!” We’re more addicted to the weather than we are to the Broncos.
So if you come here, and especially if you plan to relocate to Denver, stay a minute.
| Discussion: 1 Comment »
Top 10 Reasons to Work with a REALTOR
February 26th, 2008 categories: Real Estate News, Relocation Tips
A Fool For a Client
1. The old cliche about a Lawyer who represents himself has a fool for a client is true in real estate too. This is one of your largest transactions and should be guided by a professional. If you had a $500,000 legal or tax issue would you handle that one by yourself? An experienced broker can handle your most valuable transaction.
2. Maintain future value by relying on your broker to help suggest repairs and cosmetic work that will impress future buyers and will increase the value of your home. Time to ditch the blue toilet.
3. REALTOR? Rel e ter? What’s the difference? The National Association of REALTORS 2006 Profile of Home Buyers and Sellers states that the sellers who use a licensed agent and REALTOR (member of NAR) get an average of 16% higher for their home sale than those who don’t. Trust a professional to help you set and negotiate the best price for your home.
4. Your broker will professionally market and promote your property to other brokers and to the public. In Denver, Colorado nearly 90% of home transactions are co-op transactions between a buyer’s and seller’s broker. Get more for your money. Market to the brokers who walk clients through the door, and also market to the buyers. You should have both going for you.
What Now, Honey?
5. After you make the offer on your dream home, you’ll still need to have it inspected, appraised, and the title reviewed. Do you really want to find an inspector in the phone book? Do you really want to read the title commitment?
6. Sometimes talking to the other party directly causes a host of problems. Your REALTOR will communicate for you with all parties in the transaction: the seller or buyer, the appraiser, the lender, the title closer, the other broker, sometimes the attorney (in Colorado we typically do not use attorneys to transfer property). You do your job, getting ready to move.
7. Time is of the Essence. We have this clause in the Colorado contract. It basically means that all of the dates and deadlines in the date table must be met. Do you want to track the deadlines for inspections, appraisals or other contingencies? Your broker does it for you.
Skeletons in the Closet
8. Issues. There are always issues. 9 times out of 10 they are resolved by the brokers before the clients even need to know about them. Your REALTOR can help you work through any issues that come up during the process. The typical home sale today involves more than 20 steps after the initial contract is accepted. Why go it alone?
9. Negotiating. This should probably have been higher on the list, but I don’t feel like cutting and pasting. Congrats for reading so far! Your broker helps you negotiate throughout the process. There is the initial negotiation, then the counteroffer, maybe another counter. Later, you have the inspection negotiations - an entirely new set of negotiations.
10. Ugly paperwork. We have a joke that for every closing we kill a tree. It’s actually kind of sad, and not very green. There is a movement to get to paperless closings, but we’re not there yet. You’ll be daunted by the paperwork. Your broker is behind the scenes every day during the transaction managing the entire process.
11. Your bonus point - Someone should explain to you what you’re filling out, either an attorney or your broker. The paperwork (see above) is legally binding. You must be able to comprehend what it is you’re signing. Remember point 1? This is an expensive transaction. Don’t learn this point in court.
| Discussion: No Comments »
3 Things You Should Know About Denver Real Estate
February 22nd, 2008 categories: Relocation Tips
Denver real estate - as much a mystery as any market. Our real estate market has always seemed to be counter-cyclical to the rest of the U.S. and when we’re booming, California is busting. When we’re on a downward slide, Florida and Nevada are hotter than hot. The conventional wisdom around here used to be that we were a one-industry town, and our dependence on one industry meant that we rode it up and down regardless of where the balance of the U.S. economy was.
Oil No More
Our economy has diversified since the early 1990’s. We parrot Martha Stewart, “that’s a good thing.” But, we saw the bulk of the U.S. experiencing huge appreciation rates through 2006, while we were in the early doldrums beginning in 2002. Many sellers here were frustrated, but still some city-close neighborhoods saw significant appreciation.
Now the headlines are covering the mortgage meltdown; it’s a scientifically proven fact that bad news sells papers. With the reduction of qualified buyers able to purchase a home, the high level of inventory could take awhile for us to sell off. Certainly, true for some neighborhoods, but our market in Denver is in good shape for 2008. We were only off by 1% in 2007 from 2006. I’ve been selling homes in Denver for 12 years, and this time of year always feels optimistic. I know that the recent bump-up in showings is a great sign for our buyers and sellers.
Location, Location, Location
Real estate is local – heard that one before? Lawrence Yun, The National Association of Realtors economist visited Denver in January and said, “Denver is one of the markets to watch. Austin already has seen a boom. Denver will be among the next markets to see a boom.” Our location can’t be beat. Well… maybe by Tahiti. We don’t have the blue sparkling waters, but we do have 300 sunny days a year - a scientifically proven fact, a great outdoor lifestyle, access to a world-class international airport, and the mountains out our back door. We also have terrific schools and first-rate shopping (Nordstrom and Neimans, yea!).
Cottages to Castles
“What are your houses like?” I hear that one a lot. Hard to answer. What are you looking for? We have beautiful stately neighborhoods like Country Club and Cherry Hills Village. We have older Tudor and Bungalow styles in Washington Park and Bonnie Brae. We also have so much new construction in the suburbs that you can find any style of house you like. There are some fabulous examples of modern and contemporary construction throughout the city, in a variety of price ranges. Ever heard of Krisana Park? As beautiful an example of Usonian architecture as you’ll find anywhere.
Come visit Denver and see for yourself. We have a growing economy, an unbeatable location and any style of house your heart desires. Ignore the press, read the blogs.
| Discussion: 2 Comments »
