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Why it Might be Time to Refinance Your Mortgage
Interesting: (at 2:10), the idea: “we overweight the importance of housing…economically….culturally.” Disagree; Americans value independence.
Case Study: 816 NW Market St
Driving Elements:
- Investment
- Good agent relationships
- Showing up
I helped the buyers purchase this property in 2013. As of January 2015, 60% of the buyers loan is being covered by the rent generated in the lower level apartment. In this short time, the buyer has been accumulating cash and is preparing to make another investment.
A few things worked particularly well here. First, and most critically, the buyers had done their homework and understood the potential.
When we found ourselves in multiple offers, it was helpful that I had a good working relationship with the listing agent. Because of this, the seller agreed to meet for an in-person offer presentation (I don't believe competing agents/buyers presented in person). And, at that presentation, the listing agents encouraged their client to take my client's offer.
View listing details here.
Case Study: 5524 Ashworth Ave N
There are a few things that stand out for me in this project. They are:
- The importance of a good process
- The importance of a good team to implement that process
- Standing firm on price when appropriate, and
- The importance of managing the appraisers visit
As I left this property after meeting with Angie and James about listing it, I called my wife, who calmly said toward the end of our call: “Well, I think it is going to happen tonight.” It was the birth of our son, Tommy. It turned out that he wasn’t born until the next day, but…Holly’s labor sure happened that night. Thankfully, I have a process, and a great team to support me, so we were able to get the property listed and enjoyed great success.
We had considered listing at $1,400,000 based on other local inventory, but decided to push the number based on the premium we felt the home deserved. We considered lowering the price at two weeks on the market (the sellers had their own infant at home so showings were inconvenient, and also wanted the proceeds for a home they were under contract to purchase), but decided to hold the line on price, as we still believed in the value. We soon heard of one offer coming, and were able to use that offer to encourage another party to get off the fence which…encouraged that first party to make their offer better.
We sold at $1,665,000 and created what I call “an appraisal problem.” It is a goal of mine to create this dynamic whenever I represent sellers; a house that is under contract for more than the appraiser is likely to see the value for. I met the appraiser at the house with my version of the “comps” for the property. She pointed out that the actual square footage of the home – per her calculations – was less than the city record. I argued that that it didn’t matter; that the quality of the property stood firm, and shared an example of a smaller-sized home that had recently sold at a similar price (across town). The appraiser agreed and the sale closed. The family moved closer to their extended family and we all smiled.
View listing details here.
Case Study: 4202 Bagley Ave N
This project was a study in:
- Exercising restraint until the "right" time
- The importance of pre-inspection
- The importance of great staging
- The importance of great photography
- The importance of my getting in front of the buyer when possible to establish trust (for them) and to see first-hand their motivation (for my clients)
- Picking the right Buyer's Agent
This project was at first interesting in that we could have listed it for sale a month or so before we did. The owners had the ability to hold it until the right time, though, so we used that to our advantage and used the extra time to button up maintenance items that came out of the pre-inspection, get the home staged and then adjust the staging, have good photographs taken and then take a few more. The Sellers were not excited about the items that came up on pre-inspection (before listing) but having the inspection proved to be of great value. Not only were they able to get some maintenance items out of the way that buyers would have seen as important, but they were able to demonstrate to buyers that they knew the condition of the home (very good over-all) and had priced it with full knowledge.
The staging was good when first installed, but we made some tweaks to it before photography. One challenge with stagers is that they often use what they have. The Sellers and I felt that this home needed a “significant” dining room table in order to fit with the architectural design of the home, and also to show that home as one that would accommodate a family. We knew we were fighting a bit of a battle on this one, as many young families prefer at least three bedrooms on one level (one for the parents and the others for kids) and the house simply didn’t offer that.
Once the staging was perfect, we shot good photographs in good weather. There were a few angles that we then thought should be re-shot, so we did. It was nice to have the time to merchandize and market correctly. We held a few open houses, and everyone in the neighborhood showed up. I was personally able to spend a few moments with one of the eventual Buyers; this was important – I believe – as he needed to trust me later in order to get across the line.
On offer review day, the importance of the pre-inspection was reinforced when I had a prospective buyer ask me to see the report and then made an offer not subject to inspection based upon what they saw. More offers normally means a higher price, and this case was no different. We had a priced at a number that the Sellers would have been happy with, but were able to push that number, and our confidence in closing at that number. The Sellers chose the offer they wanted to work with, and we were able to make it better by having the buyer’s agent ask her clients if they would waive their financing protections. They did.
When we met the appraiser, we were sure to show the appraiser all of our offers, and to indicate how completely the Buyers wanted this house. The appraisal came in “at value,” the Buyers arrived in town and all were happy.
View listing details here.
Congratulations Joe & Brenda!
Joe and Brenda contacted me in early November to discuss moving from a great waterfront home that I had helped them purchase a couple years before. We had not yet sat down for a formal strategy session before Brenda identified the next dream home. They wrote a contingent offer on the new home and did great work to prepare and stage their home for market. We took great photos and within a few hours of listing it received a call from the party that would ultimately purchase it. That party wrote an offer that allowed Joe and Brenda’s purchase offer to work, and…Joe and Brenda closed escrow on the two homes and were moved to the new one within seven weeks of our initial discussion.
