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“Say What You Need To Say”

I am sitting at the counter in Kahili on Lake Street, my second office when the weather is hot and I can’t stand to be inside my real office anymore, waiting for my 2 o’clock and typing this blog entry. It’s God’s country here in Kirkland when the weather is out. At the table below me are two women; one looking distressed and the other sympathetic. Then I overhear the distressed woman speak the words that call to me like a siren calls to a ship lost at sea: “My condo isn’t selling. “ It’s like catnip to a cat. I have to listen in. I have no choice.

As a real estate consultant, I must listen to every client, analyze their individual situations, and give honest, serving, fact-based advice. But that also includes being a sympathetic ear, a nurturing confidant, and an understanding guide. And that is fine and I am. But sometimes my true nature wants to brutally, eye to eye, no holds barred, tell a client to buck up and do exactly what they need to do right this second to get their home sold under no uncertain terms. And they have no choice about it, I say it’s happening. Call it tough love. I have, after all, been here before many times and experience has made me, well, 95% of the time, right. But of course, that scenario cannot be. The client is the ultimate decision maker and it is human nature to not leave perceived money on the table, to think their home is decorated the best, and to, well, not always want to hear the brutal truth. So we compromise – I will tell you, my beloved client, the truth and what you need to do, and I will tell you in a professional, kind, not crazy manner.

Then the woman seller says, “I painted it last year and my agent says I need that repaint it with neutral colors. But it’s so much work and I think people like color. Tan is so boring. And it’s not like it’s going to get my more money. I think it will sell soon the way it is.”

Shivers down my spine. My id to my ego, “Jen, let go. It’s not like you’ve seen the place. She might be right.” My ego to my id, “But I have seen it! You know I have seen it a hundred times in every home! I’ve seen it over and over again.” And really I have. I know that. In various ways. Maybe it was the counters or the carpet and not the color of the walls but I have marched with hundreds of buyers through houses and I have seen their reactions to colored walls.

Refrain. Restrain. Deep breaths. Ohm. This is where every real estate agent’s natural tendencies are to jump into the conversation with their two cents of help and tell the poor, unsuspecting coffee shop patron out having an innocent coffee date with a girlfriend, how exactly she can to solve her problem. It’s in our DNA to “ fix” after all! And don’t we need - especially in this market – to all pitch in and help aide each other through these tough times? But we don’ t jump in because of social graces (it’s rude to eavesdrop) and because we shouldn’t and CAN’T. This is clearly a represented seller and it is unethical to approach and solicit a represented seller. The Golden (and agency) Rules apply. Ironically there is another customer at the bar studying for the WA state real estate exam and I wonder if he can hear this conversation as I can and if he will get the same rush as I do when we overhear real estate clients that are not our own.

Real estate now is such a hot topic. Everyone knows someone and every family member, friend, or co-worker has an opinion or story. Based on all of the information from loved ones and the media, everyone is right - based on what they’ve been told. But the only really accurate response I can come up with when someone asks me “How’s the market?” is “Experience has taught me that it really depends on where you live.” And then I ask them where they live. And I believe that. Those of us lucky enough to live in Kirkland and Bellevue are not hit as hard as other parts of the county or the outlying counties and have maintained respectable median home prices and closed sales number relative to the rest of the county. The MLS reports that since January of this year, median home prices have risen an average 4.4%.

The friend asks, “Have you had any interest?”

“No, I want to get $350k for it, so I priced it at $370k so I would have some negotiating room. I might lower it to $365k and see what happens.”

That’s it. Dear, sweet, anonymous coffee customer. I want to help, but I can’t and shouldn’t. So I am going to write, here, in this article, exactly, in my professional opinion, what I wish I could impress upon you.

1. Lister vs. Seller – Do you want to be a Lister or a Seller? Do you want to sit on the market with the competition or sell? Presumably you are on the market to sell and you likely have another place in mind. Everything comes down to price. The “I’m going to list high so I have room to negotiate” is an outdated strategy. The few serious buyers on the market today are savvy and know your overpriced and playing that game. It’s a turn off and will cost you showings. If you are priced high, you are going to sit on the market along-side sellers who have also been on the market for ages. I understand that for many it s a matter of financially not being able to cash out at any lower of a price because they purchased in the last 4 years, but if you can, you need to be priced along-side properties that have already SOLD, not those that are sitting. Ultimately the “solds” market is what is going to dictate your selling price. And right now, buyers do not care about updating or views or granite counters as much as they do price. Right now all anyone wants is affordable housing.

2. Have You Viewed Your Competition? - Have you physically been inside your competing listings to know how you stack up? Is the other larger, light, and brighter than yours? Do they have another window that you don’t? More usable yard space? Just because the listings show that you both have the same square footage and lot size, theirs may have a totally different feel and more appeal…for the same price. It may be tough to get inside sold comparables as well, but maybe you can find a way or at least do a drive by. You may see what you’re offering in an entirely different light – or at least a more realistic one.

3. Is Your Home Financeable? – Financing is tough these days. Is the home in good enough shape that it would pass an FHA or VA inspection? Have you had a pre-inspection so you know what to expect to be fixing? That could be valuable information when coming up with the price and when negotiating the initial offer. You may not go as low because you know to expect more concession after the inspection. Can you offer to carry a note for a potential buyer so make it easier for them to get into the home? Are you open to a lease-purchase? If so make sure it says so loud and clear in the listing.

4. Are You Doing Your Part to Get the Word Out? - You have hired a competent agent so that you can continue to live your life and take the hard work of selling the home off your plate. But in these tough times sellers need to be proactive. Have you been doing your part? Can you ask your agent for extra flyers so you can post them at work and church? Have you email blasted your database to let them know about the sale and asked them to pass it on? I instructed one client to tell her database that if anyone brought her a buyer she’d pay them 1%. It worked. Does your home show perfectly when you know an agent is bringing a buyer by? Have you aired the place out, set out cookies and, turned all of the lights on? Are OUT of the house?

I hope through telekinesis or simply reading this blog, that the woman at the coffee shop had a chance to hear this heartfelt advice. I hope I am echoing her Realtor. Although I may come across as acting a little monkey over this, I do wish to offer this advice to her and others in her position sincerely and professionally. There is still a massive amount of inventory currently on the market and it needs to move soon. I think Kirklandians are accepting and capable of having some reality in their real estate. But because today is just so beautiful out and I can barely concentrate on work, I’ll give her a slack day before I hope she gets to her new, selling to-do list.