Northwest Denver Undressed

Should You Hire a “Listing Specialist” to Sell Your Denver Home?

I might ruffle some feathers with this article, but I’m okay with that. I’m usually up for a good debate!

Many real estate agents market themselves as “listing specialists” – that is – they focus mainly on marketing houses for sale instead of working with buyers. Many “listing specialists” hire buyer agents to work for them, to handle the calls they receive from their many For Sale signs.

On the surface, this sounds logical; after all, don’t we all want a “specialist” to represent us when we’re looking for expert assistance?

Sure we do! But when I think of a “specialist” in real estate, I imagine that person to understand the entire process of marketing, selling and closing a home sale. And, to my way of thinking, someone who specializes in the exchange of real estate should have an intimate understanding of the Very Important Person on the other side of the table – the BUYER.

In my never-to-be-humble-opinion, if a real estate agent doesn’t work with buyers on a regular basis, he may not have the expertise to accurately price homes for market. I know a few agents who have dozens of For Sale signs in my market area, yet have never shown or previewed one of my listings. I don’t understand how they can be a neighborhood expert when they don’t know the competition, and more importantly, don’t have an understanding of how buyers think.

Because I work with both buyers and sellers equally, I can help a seller look at his home through the eyes of a buyer… and the buyer’s agent. I know what is currently in vogue with the local buyers. I know what will WOW a buyer as he walks in the door…and what will immediately turn him off.

I can advise my seller client on the upgrades and improvements that truly matter in our market, even specific to his particular neighborhood. I know how important a walk-in closet is… or isn’t. I know if buyers will overlook a dated kitchen… or if they won’t. I know if buyers will balk at the lack of a garage… or if they will be tickled just to have off-street parking.

I know how much value to add for being close to a popular coffee shop… or how much to subtract for being on a bus route. I know how to price an asbestos-sided house so that buyers will consider it… over the vintage brick Tudor they really want.

Other things I know because I work with buyers…

I understand why a 1,200 sqft Bungalow is far more valuable than a 1,000 sqft Bungalow (aside from the difference in square footage.)

I understand why a main floor master bedroom is undesirable for many buyers.

I know that in certain neighborhoods, one-story Bungalows are selling far more quickly than larger two-story Victorians. And I know why.

The real estate market changes on a daily basis and data from the MLS tells only part of the story. What you knew about the market six months ago is irrelevant to the market conditions today. To truly be a “listing specialist,” you must also be committed to knowing the inventory… and to knowing the buyer.

And Knowing the Buyer makes me a Listing Specialist. IMHO.

 www.CharmingOldDenver.com

What’s the Big Deal with Family Photos When Selling Your Home?

The article below was contributed by Geri Bigum of Staging Denver. Staging Denver is ONLY the very best homestaging company in Denver, and, in my opinion, anywhere in the world. Okay, okay, maybe I’m biased because I had a hand in creating the company back in the 90’s, but seriously – these gals are good. While I’m not involved in the company any more, I enthusiastically recommend their services to my clients and use ‘em myself whenever I sell a home I personally own.

What’s the big deal about family pictures?

We’ve often noticed homes on the market with a ton of family pictures on walls and tables. Since we are in your sellers’ homes constantly, we know the resistance you get when you ask them to pack up the pictures. Some people don’t see the importance of removing them and don’t have the conversation with their sellers in the beginning. Others may not be sure how to broach the subject. After all, little Johnny and Susie are adorable and if their pictures come down, what goes up in it’s place? Others may not think that it’s the family pictures that are keeping the house from selling.

Don’t believe everything you think.
 
Getting started in the staging industry, I worked with a Realtor (side note – that would be ME!) who allowed me to take her buyers out for those first looks at houses. It taught me invaluable lessons regarding the things that are important to buyers. The first thing women and I wanted to do was look at the seller’s pictures. We would walk out of the house and forget the floor plan. Obviously, we didn’t fall in love with that house.

We don’t want pictures of the kids on the internet with the property address. It’s one thing to know there are children in the house, another to see what they look like. Take their names down, while you are at it. Keep those babies protected!

Men don’t want to see pictures of someone else’s family in the house that they are considering for their family. They see pictures of the adults and wonder if they were in a meeting with them last week. They spend the entire tour of the home trying to place your clients’ faces and remember where they met them. Might as well take that house out of consideration.

Our team is well versed in what keeps a home from making the A list for buyers and we articulate them so well with your clients that they are glad you sent us to them. Especially when they go to the closing table!

Staging consultations start at $250.00 and can make you thousands in return. Would you like to talk to Geri? Email her at Geri@stagingdenver.com or call 303-886-1614. You’ll love her!

“Should I Offer a Paint & Carpet Allowance so Buyers Can Choose Their Own Colors?”

Question: “Should I offer a “paint and carpet” allowance instead of actually doing the work?”

What, Exactly, is “Selling with Soul?”

“What, exactly, is “Selling with Soul” and why should I care if my real estate agent does it?”

As you may or may not know (or may or may not care), I am the author of a book called “Sell with Soul: Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect.” I’m rather proud of it, if you want to know the truth!

Sell with Soul is part survival guide, part call-to-action for the real estate community. And this call-to-action part is why you, the general home-buying or -selling public might care about Selling with Soul and finding agents who do it.Selling with Soul has nothing to with new age philosophies, holier-than-thou attitudes or some new dance fad. Selling with Soul is simply a colorful term for playing by the Golden Rule in a real estate business — by doing unto his or her clients as the real estate agent would like to be done unto. Competently. Respectfully. Intelligently. Ethically. Soulfully.

Real estate agents who Sell with Soul truly want to be the best thing that could ever happen to their clients. They’re far more interested in taking great care of the clients they already have, rather than aggressively pursuing the ones they hope to have in the future. They’re smart enough to know that if they impress the heck out of their buyers and sellers, those buyers and sellers will be happy to sing their praises to everyone they know, thus enabling the Soulful Agent to devote most of his or her time to continuing to serve, instead of prospect. It’s a vicious cycle… and a beautiful one.

Are Sell with Soul Agents perfect? Nope. But their pursuit of excellence and sincere desire to serve the client is a breath of fresh air in the tumultous world of real estate!

So, if you chose to work with an agent who Sells with Soul, we thank you. We appreciate your support of our mission to improve the public’s perception of our industry and to provide exceptional service to those who honor us with their business!

Do you have questions about Selling with Soul? Just ask…

Q&A with JA – “Why Hasn’t My Home Sold?” Some Quick… and not-so-quick… solutions

Being the real estate goddess I am (tee hee), I was recently interviewed for my thoughts on what a homeseller can do to improve the chances of, well, SELLING his or her home!

I love this stuff. In fact, helping a homeowner prepare a home for market is one of my favorite things on the planet to do. Oh, no, I don’t paint or lay tile (and trust me, you wouldn’t want me to, even for free), but I’m awfully darn good at identifying what needs to be done and why. Anyway, here’s what I shared with the interviewer on the matter…

QUESTION: “Your house/condo listing has been on the market a while. You’ve had a couple of interested people walk through with a Realtor but no offers. Before you pull the property off the market to wait for better times, what should you look at to determine why the home hasn’t sold?”

JA’s ANSWER: “There are three factors that the seller can control that will affect market value and the chance of sale:
1) Price
2) Condition
3) Accessibility.
No amount of marketing can overcome these issues.”

QUESTION: “What is the quickest fix a home owner can do if the home hasn’t sold in a reasonable amount of time?”

JA’s ANSWER: “There’s no one answer because it will depend heavily on why the home hasn’t sold yet. It may be as simple as making the home easier to show (e.g. here in Denver, if a seller requires 24-hour notice to show, the home will NOT be shown), or perhaps the interior photos need improvement (good photos are a must  for both buyers searching online and agents perusing the MLS). Other quick fixes might include insisting that the seller vacate the home for showings (if the seller insists on being present for showings, it will almost always hurt the home’s chances for sale); doing a deep cleaning on the home or, of course, a price reduction. However, I tend to look for alternatives to a price reduction unless the market has truly depreciated during our listing period.”

QUESTION: “What is the cheapest, but most influential change a home owner can make?”

JA’s ANSWER: “Again, this depends on the situation – the items mentioned above are pretty much free and if any of them apply, it can dramatically improve the chances of sale.” 

QUESTION: “What is a more expensive fix, but one that is worth the extra money?”
 
JA’s ANSWER: “Flooring. In my experience, bad flooring is an incredible buzz-kill when a buyer walks into a home. Because buyers initially respond to homes based on emotion (not facts), offering a carpet or refinishing allowance simply won’t cut it. The flooring needs to be appealing in any area that is visible to a buyer when they walk in the door. Another expensive fix that is SO worth the money is repairing any structural deficiencies. There are very few buyers for a home that has structural problems (common in my Denver market), regardless of price, so if the seller is willing and able to make the repairs, they’ll net thousands more than the cost of making the repairs.
 
QUESTION: “Is there an area that is usually overlooked by the homeowner but is highly influential when selling?”

JA’s ANSWER: “Accessibility is what I see most often – the seller is obviously inconvenienced by the marketing process and attempts to put limits on when showings can occur and how much notice he needs for showings. If the seller’s agent isn’t upfront with the seller about the importance of accessibility, the seller may unknowingly sabotage the sale of his home by insisting on unreasonable showing hours and notice.”
 

QUESTION: “What other quick fixes can a homeowner consider?”

JA’s ANSWER: Home staging, replacing dated kitchen and bath countertops, replacing kitchen cabinet hardware and of course, all the obvious things – lawn care, paint, cleaning, decluttering, maintenance repairs, etc.
 

What’s the Difference Between a Bank-Owned Property and Short Sale?

“What’s the Difference Between a Bank-Owned Property and Short Sale?”

You know what? If you’d asked me that question 18 months ago, I’d have looked a little bewildered. Oh, I’m sure I’d have come up with an answer, but it probably wouldn’t have been anywhere close to correct! Ah… the days… where a Denver real estate agent didn’t have to KNOW the difference between a short sale and a bank-owned property (also known as an “REO”)!

But, alas, real estate agents in most parts of the country have had an un-asked-for education on the various types of distressed property situations, and the purchase and sale implications of each. It’s almost hard for me to imagine NOT being too-intimately-familiar with the process of a short-sale, or the challenges involved in purchasing a property owned by a corporate entity.

Sigh.

Anyway, to answer the question… what’s the difference and why should you care?

Well, if you’re not in the market to buy or sell a home anytime soon, then you probably don’t care. Just skip the rest of this article and we’ll catch up later. But if you are venturing into the real estate market, either as a home-buyer or seller, you definitely will want to read on.

A short sale listing is a property that is on the market for less than the current homeowner owes on it. For example, the mortgage might be $200,000, but it’s listed for sale at $160,000. Why on earth is it listed so far below the mortgage? Well, ‘cause that’s all it’s worth. It ain’t worth the $200,000 the homeowner owes on it. Bummer.

In this situation, the homeowner and his REALTOR are trying to generate an offer on the property, at the current market value, whatever that is. When and if an offer comes in, the offer will be presented to the homeowner/seller’s lender (e.g. Bank of America, GMAC) and hope that the lender will agree to take a loss. The lender is under no obligation to do so! But, to grossly simplify the process, “it doesn’t hurt to ask.”

In a short sale situation, the homeowner stills owns the property. He has not been foreclosed on. However, because the lower offer will need to be approved by the lender, the lender is a very important player in the negotiation.

A bank-owned property (sometimes called a “foreclosure” or “REO”), on the other hand, IS owned by a bank, lender or other corporate entity (for simplicity, let’s just call ‘em the “bank”). All offers and negotiations are presented to and handled by the bank, who has no emotional attachment whatsoever to the home. However, because the seller (the bank) actually has all decision-making authority, it’s not all that unlike a traditional retail sale with a “normal” homeowner seller.

There are whole books written about the ins & outs of short-sales and bank-owned properties, so I won’t even begin to address the various issues surrounding these types of real estate transactions here. I’ll just say that, of the two types, in my experience, a bank-owned property is MUCH more likely to end up at the closing table than a short sale. MUCH.

So, if you feel your real estate agent is trying to steer you away from short sale properties, you’re probably right, and please don’t think your agent is just being lazy. They’re frustrating for everyone involved, most of all YOU, and we really hate to see our clients frustrated.

The good news is that in Denver, we have the best of all worlds. If you want to participate in the distressed housing market, we have plenty of inventory for you (although in the lower price ranges you may very well be competing with investors), but if you don’t; if you just want a sweet house in a good neighborhood at a reasonable price, we have lotsa’ that, too.

“What’s the Average Days on Market in Northwest Denver?”

What’s the average Days on Market in Northwest Denver? That is, how long will it take my house to sell?”

In real estate-speak, “days on market,” (abbreviated DOM) means how many days it takes from the day a house goes on the market until the day it goes “under contract” (that is, when a buyer and seller agree on a purchase contract). Of course, after a home goes under contract, there are still a few pesky details to deal with like inspection, appraisal and loan approval which can take another 30-60 days, but the official DOM statistic refers to the date the listing is changed from “Active” to “Under Contract.”

I’m asked this question a lot, both in casual conversation (yeah, I’m a fascinating conversationalist) and when I’m formally speaking with a potential home-seller. Obviously, the home-seller wants to know how long it’s going to take to sell his home and plan accordingly.

And I SO wish I had an answer for him! Wouldn’t it be lovely if I could confidently tell a home-seller that he’ll need to plan for a 60-75 day marketing time and a 30-45 day contract period?

But that’s just not reality. No, I’m not saying that we can’t sell your house in 60-75 days or that a 30-45 day contract period is unrealistic; what I’m saying is that in our Denver real estate market, the average DOM statistic is meaningless. Utterly meaningless.

Here’s why.

In the last three months, there have been around 60 homes sell in the $250,000 to $300,000 range in zip codes 80211 and 80212 (Northwest Denver). The lowest DOM of the 60 properties is two days. Yes, TWO days. The highest DOM is 628 Days. Yes, 628.

The AVERAGE Days on Market for this group of properties is 61. However, of the 60 homes, 17 of them sold in less than two weeks. Nine took longer than 100 days to sell. And out of the 60 sold properties, not one of them took exactly 61 days to sell; in fact, only nine were within 10 days of the average DOM of 61.

So, when you’re looking at market data, please don’t be misled by “averages.” A better question to ask is “How can I sell my home in 30 days?” Because, clearly, in our market, that’s utterly do-able!

“Should I Restrict Showings on my Home to “Pre-Qualified Buyers Only?”

QUESTION: “Should I try to enforce a “pre-qualified buyers only” requirement on my home for sale? If so, how?”

JA’s ANSWER: Every once in awhile I’ll hear a real estate agent say that he (or she) restricts showings on his listings only to home-buyers who are already pre-qualified for the purchase price. His rationale is that it’s inappropriate to inconvenience a seller by allowing showings to buyers who in all likelihood cannot or will not purchase the property.

I disagree – I think it’s simply a matter of helping a home-seller better understand the process of showing and selling homes. I explain to my seller clients that I have no control over who looks at their home – some will be bona-fide buyers, some will be other real estate agents previewing the competition for their upcoming listing and some will be buyers out for the first time who won’t buy for six months.

“However,” I continue, “any activity is good activity, even if it doesn’t result in a sale, because the home has been exposed to one more (actually probably two or three more counting the Realtor & buyers) and exposure is always a good thing. We should do everything we can to encourage showings, rather than look for ways to trim them down. I’d much rather risk your being a bit inconvenienced by lookie-loo’s than miss a previously lukewarm buyer who suddenly turns into a red-hot one.”

My sellers ALWAYS say – “Of course! We want as many people as possible to look at our home!”

As a wise (wo)man once said… “Unseen is Unsold!”

Yes, being on the market is a drag. Your life is no longer your own. But hopefully, the inconvenience you put up with will result in a quicker sale at a higher price!

Own a Piece of Northwest Denver History (and then walk to the ice cream store)

This isn’t my listing, but it’s so freakin’ cool, I thought I’d post it to my blog. It’s listed by my new best friend Mary Beth Bonacci of RE/MAX Alliance in Denver. I spent last Thanksgiving with Mary Beth and her family in this home and it’s truly spectacular. And being next door to The Red Trolley ice cream shop is a sweeeeeet (pun intended) bonus!

The Details
2629 West 32nd Avenue, Denver
Bedrooms: 4
Bathrooms: 5
Square Feet: 4160
Year Built: 1895
Price $699,900
Style: 3-Story Victorian

Old World Charm meets 21st Century Convenience in this Beautifully Remodeled
Potter Highlands Victorian

Filled with authentic period details — from the original woodwork and tile fireplace to the antique pocket door and hidden back staircase – yet with a slew of high end modern amenities.

The large gourmet kitchen is amazing (note from JA – oh, yes, it’s awesome). The stainless steel <img src=”” alt=”Potter Highlands Home” />appliances are top of the line GE Monogram and Sub Zero. The cabinets are maple and the countertops are concrete. The island provides a large workspace as well as bar seating for entertaining or an informal family meal. There’s also a pot rack, a pasta sink, a large built-in wine rack and lots of open shelving.

The main floor offers gracious, spacious living. The living room features extensive original woodwork and the home’s original fireplace. The separate family room has a large, built-in entertainment/storage center hidden behind rustic antique doors. The dining room is bright, elegant and large enough to comfortably accomodate just about any dinner party or extended family gathering.

The three bedrooms are upstairs. The master is amazing. The bedroom itself is large, bright and airy. The master bath features subway tile, a claw-foot tub and a full steam shower. And the bed and bath are connected by a large walk-in closet with built-in drawers and shelves.

But there’s another upstairs! Climb the small staircase in the hall, and you’ll discover the cozy attic library/den with coved ceilings,large skylights and built-in bookshelves. Perfect for a home office, studio or just a private get-away.

Don’t stop there! We still have a finished basement with even more living space. The playroom/guest room has wall-to-wall built-in cabinets and shelves for toys or storage. And in the middle — a full, custom Murphy bed that can drop down at a moment’s notice to accomodate last-minute guests. The adjoining recreation room has exposed brick walls and lots of room for a pool table, ping-pong table or exercise equipment.

In the back, you’ll find a lovely carriage house! It’s actually a full apartment with two bedrooms and a remodeled kitchen. Use it for guests, for a home business, or rent it out for around $1,000 of extra income every month.

This beautiful home is located in the hot hot hot Potter Highlands neighborhood, which was recently named one of the top neighborhoods in America. It is just a few blocks from the shops and restaurants at 32nd and Zuni, and minutes from downtown. The property is zoned B2, so the possibilities are endless – a large single family residence, or a business, or both! Either way, it is a unique and beautiful piece of Denver history, and a lovely place for any person, family or business to call home!

Wanna see it? Just call Mary Beth – at 303-759-6605 or email her at mb@mblovesdenver.com.

www.CharmingOldDenver.com

Dear Real Estate Professional, I’d Like to See a House, Please.

A few months ago, I posted a Help Wanted ad for a graphics designer on www.Guru.com. If you’ve never used Guru – it’s a wonderful resource! Basically, it’s on online database of freelancers who are looking for work. GURU ROCKS!

Anyway, within 24 hours of posting my ad, I got at least 30 responses. Complete with resumes, pricing estimates and requests for further information about my project. All 30 responders seemed to sincerely want my business and not a one of them lectured, belittled or condescended to me.

Well, duh, you say, they’re after your business, why on earth would they be anything but delightful in their first encounter with you?

My thoughts exactly.

Well, I’ve recently been lurking on Trulia (www.trulia.com) because I’ve heard it’s a good place to blog. I stumbled onto a discussion started by a first-time homebuyer asking questions about a particular house for sale in her neighborhood.

I was stunned at the level of lecturing, belittling and condescension expressed by the responding real estate “professionals.” More than half of the responders sternly advised her to speak with a mortgage broker before “bothering” (okay, that’s my word, but the message was clear) a real estate agent. Another instructed her to better educate herself on the process before looking at homes, and helpfully provided links (surprisingly, not even to his own material, but stuff from NAR). Only two agents actually offered to show her the home, but even they seemed disinterested in becoming her favorite real estate agent.

I gotta ask… WHY are these real estate agents wasting their precious time on the Trulia forum if all they’re going to do is alienate the prospects they’re supposedly there to find?

Are graphics designers on guru.com more desperate than real estate agents (HA!) and therefore only grudgingly concede to being polite, enthusiastic and responsive? Whereas we in the real estate industry are so buried under a pile of qualified buyers and motivated sellers to the point where we simply don’t have a minute to spare to be polite, enthusiastic and responsive?

ROFLMAO. I crack myself up.