Ozaukee & Washington County Real Estate

I received a call early this morning from one of my sellers to let me know she decided to accept the latest counter offer we received from the buyer who had written an offer on her house. Admittedly, I breathed a sigh of relief.

It's a great offer. Clean, fair, and a pretty quick closing, too. But getting this to the "accepted offer" status wasn't as easy as I thought it would be. And this morning I found out why.

It came down to the realization that agreeing to this latest counter offer meant taking one step closer to letting go of the house. It's the house where she raised her kids. It's the house that defined her independence after a divorce. She told me she gets a lump in her throat when she thinks about accepting this offer. She was realizing she was having a hard time letting go.

I told the seller that no matter why a house is being sold -- good or not so good -- there is going to be emotion weaving its way throughout the process. It's not just a business deal. It's about letting go and moving on to that next chapter.

That house isn't just a bunch of wood and nails and tile and windows and shingles; it's a home. It's where we laugh together, cry together, create holiday and birthday memories, share family meals, and grow together. It's home.

My seller knows her life is pretty great right now. She said it herself. It's time for her to close this chapter and continue the one she started with her new husband last year. I know she's going to be just fine. And I know she's excited for this family about to start a new chapter of their own. 

I'm doubtful there is a "blogging" real estate agent out there who has never blogged about the importance of proper pricing when it comes to selling your house. It is the key to getting to the closing table -- no pun intended.

If you are truly committed to selling your house, you must listen to what your Realtor® is telling you when it comes to pricing your house compellingly in this or any market.

Buyers buy by comparison. And right now, in most markets, they have a lot of comparing to do. You hire us for our expertise and for the tools we have available to us to help you get your house sold and move on to the next chapter as quickly as possible.

Part of our job is to sift through the pricing data and help you understand where your house needs to priced. Being faced with the news that you may need to consider a price reduction is never easy -- doesn't matter why you're selling. It's just not a fun part of the process.

But getting that price where it needs to be will generate an offer. Maybe even two.

Don't believe me? Ask two of my sellers who reluctantly adjusted the prices on their respective homes in the past few weeks. One is just a few days from sitting at the closing table, and the other is in the middle of negotiations with a well-qualified buyer.

Price your house to sell -- not sit.

A couple of days ago I wrote a post, What I Ask of My Buyers. Now it's my seller's turn.

These past couple of years have been especially challenging for sellers and agents alike. I really think it's more important than ever to work together, as a team, to get the job done. So here is what I ask of you.

Honesty -- Why are you moving? Has there been a job loss? Is there a pending divorce? Are you upside down on your mortgage? I know it can be embarrassing and scary to have to talk about the more difficult reasons some folks are having to sell their home these days. But if I have all the information  -- even the not-so-pretty stuff -- about your circumstances, we can both work smarter and more efficiently in getting the job done.

Trust Me -- You hired me for my expertise. I am "out there" every day watching what is happening in your market. I am reading blogs, newspaper articles and magazine articles, and talking with colleagues and industry experts to gain more knowledge about what marketing techniques work the best, what is expected to happen with interest rates, what has been happening and what is expected to happen with prices in your community. The graphs, charts, and statistics I show you are facts. To get your house sold, we both have to pay attention to them.

Hear What the Market is Telling You -- I will do everything I can to provide you with feedback from private showings and open houses. Sometimes what perspective buyers have to say isn't so easy to hear but they are determining the value of your home. They are out there checking out your competition and comparing each home to the next. They will determine the value of your house, regardless of what you need or want to walk away with.

Keep Me Informed -- If anything about your home selling plans changes, tell me. If you have decided to declare bankruptcy, tell me. If you have received notice of foreclosure proceedings starting, tell me. If you have decided that you really don't need or want to sell right now, tell me. If anything in your personal circumstances has changed, tell me. Each of these does affect the strategy we need to follow and the steps we need to take to get your house sold.

Understand Neither I Nor Any Agent Can Make A Buyer Write an Offer -- I cannot make an agent who shows your house write an offer on it. That agent cannot make their buyer write an offer. I cannot make any buyer I show your house to write an offer. The buyer decides which of the houses they've seen is "the one" for them.

Understand How Real Estate Agents Are Compensated -- As I said in my earlier post, I think many consumers assume that real estate agents are paid a salary in addition to commission. That's not the case. We do not get paid until we close on a property. Therefore, I have to do everything I can to ensure that the sellers I am working with are committed to selling. There is an expense involved in marketing a home, and to survive in the business, I have to be assured my sellers are as committed to selling their house as I am.

I need you to help me just as you need me to help you. So let's be committed to working together to help you reach that goal of selling your house.

It happened last night. I got that call every real estate agent dreads. "My buyer wants out."

Ugh.

It was a solid deal. There was no reason to think things would take a turn over the next few days. But then the phone calls start coming in from the buyer's agent, and you can just feel that this solid deal is melting away.

Yet until you actually hear the words, you hold out every bit of hope that the buyer will see things clearly and meet you and your sellers at the closing table. But that just wasn't the case this time.

The phone conversation with my seller reminded me of the level and number of emotions that are wrapped up in every single real estate transaction.

Hope. Anxiety. Fear. Happiness. Relief. Frustration. Gratitude. Excitement. Anticipation.

It also reminded me that one of the most important parts of our job is to support our sellers and provide assurance that everything will be O.K. when we hit a bump in the road.

It's easy to make assumptions or pass judgment, but I think it's important and necessary for us to take the time to listen to our sellers. Let them vent. Let them be angry. And then help them to let go of this one and move on.

Help them to trust that a better buyer is out there. Assure them that you will do everything you can to bring that buyer to them. And then go out and do it.

I admit it. Having been in the business for about eight years, I tend to forget sometimes that some of my sellers who are selling for the first time simply don't know what they need to do to prepare for an open house.

So if you're about to have your house open for the first time this weekend or in the near future, here are a few pointers:

1. Clean. Dust the tables, vacuum, and pick up dirty laundry. Do the dishes -- both those that need to be hand washed and those that go in the dishwasher. Opening up the dishwasher and seeing it full of dirty dishes can be a little unappealing.

2. Remove pets. Remember that some buyers may be allergic to certain animals or just may not be an animal-lover. Even though your cat may "stay to itself," seeing it laying on the bed could be a turn off for some. Same goes for hamsters, guinea pigs or any other creature that lives in a cage. You may feel confident that they won't get out, but a buyer may not share that same assuredness.

3. Put away personal paperwork. Don't leave bills, listing paperwork or other personal items out on the counter.

4. Put away valuables. Never leave jewelry or other items that have monetary or sentimental value out in the open. Better not to have the temptation there.

5. Put away prescriptions.

6. Clear the front sidewalk, driveway and patio/deck. During the winter months, make sure the snow and ice are cleared from the walkways, driveway and patio or deck. It encourages buyers to walk around the property to get a better idea of the yard size, etc.

7. Mow the lawn and clean up landscaping. During the spring, summer, and fall months, make sure the lawn is cut, weeds are pulled, bushes are cut back, and leaves are raked up. The buyer's first impression will be made the moment they drive up to your house. Do what you can to make it the best impression.

8. Try to avoid using strongly scented room deodorizers or cleaners. It seems more and more people are sensitive to strong odors. What you or I might find as a pleasing odor, may be offensive to someone else.

9. Don't hang around during the open house. Try to be out of the house at least 15 minutes before and 15 minutes after the scheduled time. Buyers typically don't feel comfortable looking at a house with the seller in their midst. If you come home and see cars out front, drive around the block a few times. Trust that your agent will contact you to let you know how things went.

Bottom line is you want to make the buyers feel welcome. It's a lot of work to keep your house in showing condition. But the time and effort you put into it could set you apart from the other opens going on at the same time. That makes it worth it, doesn't it?

Probably one of the most common areas of discussion between a seller and their agent is price. Is the seller pricing their house to sell it or is it priced based on what they want or need to net from the sale?

Sometimes no matter what stats, blog post, or newspaper article I show a seller, they just don't see that a house has to be priced to sell. It doesn't matter to a buyer how much they need or want to walk away with at closing.

The other day a past seller had posted her opinion on pricing on my Facebook page, and with her permission, I'm sharing it in my blog. A perfect example of how one seller lost out on a sale and ultimately tens of thousands of dollars.

"Here's some info you can share with clients: When Tony was doing our house shopping here, he also looked at another house on our street, but the asking price was 20 grand more than this one. If they were priced the same, that house would've been his choice, but the price difference was a deal breaker. Fast forward six months, when that house finally sold--for 30 grand LESS than we paid for this house. Pricing right in the first place is crucial!"

Do you want to list your house or do you want to sell it??

It's not uncommon to be asked by a potential seller if I will reduce my commission, especially in cases where this individual will also be using my services to purchase a new home. And oh, how I used to cringe when that question would arise. But having been in the business for a few years now and gaining a clear understanding of the time, effort, and manpower it takes to get a house sold, I've learned that saying "no" really isn't so hard after all.

So where does all that commission go?

OFFICE -- rent, electricity, phones, computers, copy machine, fax machine, secretary, sales director, paper, insurance, Closing staff, Accounting staff

SALES AGENT COMMISSION -- cell phone, errors and omissions insurance, tech fees, car expenses, association dues, license fee, personal web site, living expenses, self-employment taxes,

COMPANY PROFIT

CO-BROKE COMMISSION -- Incentive offered to other brokers to show and sell your house

MARKETING -- shorewest.com, billboards, radio, mailings, open house, Shorewest TV, yard sign, Shorewest hotline, smart phone apps, listing flyers

Charging less means spending less.

If the broker spends less on overhead, they wouldn't be able to do the work they need to do.

If the broker reduces the percentage paid to the sales agents, those agents will work elsewhere.

If the broker reduces their profit margin, they won't survive.

If the broker reduces the co-broke percentage, fewer agents are motivated to show their listings.

And if the broker reduces the marketing dollars, homes will not get the same level of exposure, which translates to fewer buyers, longer times on the market and lower sale prices.

I remember when I bought my first house I did the math. I thought the agent, who both listed and sold the house, was walking away with literally thousands of dollars in her pocket on a $100,000 house.

But I get it now.

Those thousands of dollars are covering several paychecks and paying several overhead bills.

I just have to remember that the general public isn't in the business so really have no way of understanding this, and it's therefore my job to explain it to them. And it's my job to prove to them my broker and I are worth every penny.

I recently received an offer on one of my past listings from a "protected buyer." The sellers are no longer together but are still tied to one another because of this house.

Both told me individually that it's time to move on -- that they needed to be done with this. I could hear in each of their voices the "wear and tear" this house was putting on them. You can't help but feel for them.

The parties in the transaction were far apart on the price, and it was easy to see why. It's simply a difference in perspective. One sees the dated kitchen, the dated baths, the old windows, and the oil tank in the basement. The other sees the the financial ramifications of accepting an offer any less than their "bottom line."

I can't help but feel for both parties. Here are two buyers who love the house enough to come back months after seeing it to put in a bid, and two sellers wanting to move on with their individual lives but held back because of financial constraints.

Circumstances like this are something I have yet to "get used to." My heart goes out to those who see the equity in their home disappear but continue to pay the mortgage on time. And when a broken relationship is added to the mix, the situation becomes even heavier.

But it is also in circumstances such as this that each person has to decide for themselves the value in being able to move on. Is it worth bringing some money to closing to get the deal done? Is it worth talking to your lender about a possiblel short sale to allow each of you to move on? What is having the sale of this house behind you worth to you?

I wish I had the answer for any of my sellers faced with this. The answer, though, is within each of them -- only they know, in their heart of hearts, what they are willing to do to close this chapter and start living the next.

Effective February 1, 2011, all single-family and two-family homes in the state of Wisconsin will be required to have a carbon monoxide detector installed. This law was signed by former Governor Jim Doyle on March 10, 2010. (All existing multi-family structures were required to have carbon monoxide detectors installed effective April 1, 2010.)

What is carbon monoxide? It is an invisible, odorless, poisonous gas that cannot be detected by humans, but can cause death within a few minutes. It is oftentimes called "the silent killer," causing more than 2000 deaths each year.

This new law requires one detector to be installed in the basement and on each floor (excluding the attic) of the home, and new construction must have the detector hard-wired to comply with national model safety codes. Battery-operated detectors may be installed in existing homes and be combined with a smoke detector. Also, if the home does not have a basement, fuel-burning appliances, or fireplaces, it is exempt from this new law.

While no fines or penalties will be implemented if this law is not complied with, be aware that all home inspectors will be required to check for carbon monoxide detectors.

Whether or not you have plans to sell your home in the near future, don't take any chances. Make it a priority to have the proper number of detectors installed in your home for the safety of you and your family.

If you would like more information, contact Tom Larson, Director of Regulatory & Legislative Affairs at 608-240-8254 or tlarson@wra.org

One of the many things I try to plant in my sellers' minds is the fact that this real estate market we're in is ever-changing. Every day is a new adventure. Every day I learn something new.

And although this has been the reality for some time now, it still can be difficult to really wrap your head around the way things are. Prices are low and inventory is high. Foreclosures and short sales are out there -- even in "your neighborhood."

No one is immune from this. No one.

What does that mean  if you are ready to sell? LIST YOUR HOUSE AT A COMPELLING PRICE!

You want the buyers to come through your house, not your competition's.

You want the buyers to write an offer on your house, not your competition's.

So be aggressive. See things as they really are. Really study the comps your Realtor® provides for you and heed his/her advice.

Pay attention to what comparable homes have recently sold for in your area and consider those numbers when deciding on a list price.

Price below your competition -- not the same as your competition.

Compel a buyer to buy your house.

Having trouble swallowing that you need to price your house "there?" Well, consider this.

How are you going to feel if that For Sale sign is sitting in your front yard six months from now?

Stay ahead of the competition -- be aggressive. Sell your house -- don't just list it.

Now...what do you think your house should be listed for?