Better money sooner for Sun City sellers

Category: Staging Your Home (page 1 of 1)

Divorced? Depressed? Deceased? When you are selling your Sun City home, no one should be able to guess the state of your desperation.

I am every day aghast at a class of homes-for-sale that I have never seen before, nowhere but here in Sun City. I call them ‘throwaway’ homes, since this seems to be the essence of their marketing appeal: The net effect if not the conscious intent is to repel all but the most rapacious of all-cash investors.

Do you doubt me? Take the time to watch that slide show – until your heart breaks. Home after home, worst feet forward – and these are marketing photos, intended to entice buyers!

A Sun City home represents a lifetime of effort for its owners. And at every step of their residential history, those owners were fastidious about the husbandry of their wealth. Until the last step.

Is the home’s seller widowed or divorced – abruptly amputated from the place where we are most human? Or beset by diminishing health and rising expenses? Or has the owner expired without heirs?

Many throwaway homes fall into the last category – probate sales. There is literally no one to defend the homeowner’s equity – nor anyone to defend it for.

That justifies nothing. Whatever the seller’s state of mind – or state of desperation – this is none of the buyer’s business. The listing agent is being paid a substantial sum of money to obtain the best possible return on the seller’s investment, even if the seller is no longer with us. Neither the buyer nor the buyer’s agent should be able to tell, either from the listing or the home itself, what the seller is going through.

Nothing about the seller’s circumstances should be obvious to the buyer from the listing. It is literally the listing agent’s job to direct the seller toward the highest attainable return, and telegraphing desperation – or even just despair – achieves the opposite: It attracts only predators and makes them ravenous to inflict the greatest possible pain.

Moreover, the neighbors have not volunteered to have their own equity trashed because they made the mistake of living too near a throwaway home.

There can be no wolves without sheep, but the owner of real property should never be a sheep, not even post mortem: It is never an honest man’s job to talk the other guy into making a mistake. I would go further and say that it is incumbent upon a listing agent to make sure his seller, regardless of the circumstances, is not being fed to the wolves.

How one Sun City listing agent is using duct tape to repel insects – and buyers.

Me on Facebook:

Hard to see what’s going on? Here are the three photos at full size:

See the duct tape? Why is it there? Much as any buyer would, I read the worst possible portents into the mystery.

My wife Cathleen, herself an exemplary lister, explained to me what’s going on.

First: Sewer Roaches. Big, red, ugly, crunchy when dead. They’re not an infestation but an accident: They live where the unmild things are, not in houses.

But: When plumbing J-pipes dry out, as they will in the desert, dumb roaches climb up and get lost in houses, where they die of starvation, dehydration or ennui.

They are NEVER found in occupied homes, where the drains are in steady use, but ONLY in vacant homes that are not being serviced.

That last clause matters: The listing agent for an Active property should be in the home every day – if only to make sure it wasn’t left unlocked from the last showing.

But for the entire time a vacant Sun City property is subject to the listing contract, the home should be serviced at least every-other-day. Why? To keep the Sewer Roaches out. All you have to do is run water down the drains.

And that’s why the drains are taped over, Cathleen reveals: Either the seller or the lister doesn’t want to service the property and yet doesn’t want for it to be cemetery to a dozen red warriors.

Hence it was truly inspired on the agent’s part not to remove the tape prior to taking the photos: The house should be safe from roaches and buyers, both. 😉

Not one but three Sun City golf course homes could make this the Summer of sweat equity in Newlife…

I fell in love with this house yesterday. I liked it on the hotsheet, so I went to see it in person, then I ended up writing about it on Facebook:

It was still bugging me this morning, in the wee hours, so I made a CMA to see if I was right about the price.

The bad news: The house is completely livable as-is, but it will need upgrading everywhere – either over time or all at once. Most notably, the home is clad in vinyl siding that will want a costly replacement.

The good news: The list price is fully supported, which means the house will appraise at list. FHA-ready, too, I should think. It’s not a flipper-scale bargain, but it is a good deal for owner-occupants who are willing to upgrade their way into a truly remarkable golf course home.

As it turns out, two of the three ‘comparables’ I used to price this home – 12471 N. Augusta Dr. – are also actively for sale and and are also good candidates for owner-occupant upgrading.

Newlife is South of Grand Avenue and adjacent to Youngtown, so it’s not quite as tony as other Sun City golf course communities. But these houses are selling for around $100k less than they would go for bestride Palmbrook in Phase Two – kind of a big difference.

Pricing real estate is an art. I’ve always been good at it. But then I was a ‘pricing algorithm’ for Zillow-the-catastrophic-iBuyer for a year and a day, and I came away a house-whisperer, fast and unassailable. And then I started reading all of the Sun City listings…

There’s more to pricing than just math, but the math makes it harder to make mistakes. So to figure out what our subject property is actually worth to the buyer, we need to compare it to other, very similar properties and then adjust for the differences. Here’s my worksheet for the houses we worked with:

The CMA software enables easy adjustment for objective factors – Fireplace, yes or no? – so my notes concern subjective matters and special adjustments. Interior and Exterior adjustments run from -2 to +2, adjusting by multiples of $5k, $10k or $20k depending on the price range of the properties. We’re not adjusting for the presumptive cost of the upgrade, but simply estimating how much the difference might move the needle among buyers.

I didn’t adjust for time, because the past year has been a flat ripple in Sun City, but I did adjust for square footage and lot size, using this calculator I put together in my Zillow days:

The net result, after taking everything into account, is a reliable number:

The list price for Augusta is great, but 10917 W Oakmont Dr and 12601 N Augusta Dr are both good deals at $340k each – the price both are hinting at.

“The Season” is ending, so all three could suffer from a lack of golf course buyers. But all three have an After-Repair-Value of $400k+, so this Summer could be the season of sweat equity in Newlife…

Del Webb built houses. The people of Sun City turned them into Homes, Dentist’s Offices or Art Galleries.

It’s not a Home, but it’s not even an Art Gallery, not quite. It’s everything you hate about intermission at the symphony: One overmatched bartenderista and no place to get comfortable…

This is my new taxonomy of Sun City housing:

Virtually all houses are Homes – meaning places of residence where shoes and clothes are shed, family members two- and four-footed are fed, TVs are watched, even from bed.

Because of the unique life-cycle of the Sun Citian, we are encysted with craven flippers, who for now and foreseeably intend for us to reside only in spaces that mimic offices, especially medical offices, expressing in their bounteous palette every shade of the rainbow from white to black. I call these houses Dentist’s Offices. They can tilt toward Art Gallery status, but most are simply failed and fractured Homes, restored by their buyers to a simulation of hominess with furniture, art and tchotchkes in the warm colors of the cornucopia.

Art Galleries are Homes only by necessity. As in the photo above, they are show-pieces – inherently and irredeemably soiled by the emanations and extrusions of human life. They are meant to be seen always as they are in their photographs: Breathtakingly, fastidiously, impeccably perfect.

Not very livable? Perhaps. But on the right lot – on the golf course or the lake – a Home that has been upgraded to full-on, no-human-comfort-accomodated Art Gallery status has the best chance of commanding an above-market price on resale.

It’s kind of funny – we do in fact buy houses in order for them to be our Homes – but scarcity is simply what the other guy can’t have. Premium Sun City lots are rare, and houses upgraded to Art Galleries are rarer still. And that makes them catnip for a certain kind of buyer.

Nota bene: If you live in a sturdy Del Webb house on a non-premium lot, beware of over-improvement. Please, please, please resist the urge to make everything gray, but mind what your neighbors are doing. Everything you do that eclipses them is likely to yield you little or nothing extra on resale.

Meanwhile, if the idea of cashing out at the top from a premium lot as an unobtainable Art Gallery appeals to you, consider doing it on the way out. Live in a Home, then when it’s time to sell, vacate it and make it into a show-piece for the next buyers. They may warm things up with Thanksgiving colors – or they may host nightly, very-brightly-lit cocktail parties. Either way, they’ll pay more for a house that hides its heritage as a Home.

So many shades of white: Making homes look like offices robs them of their ultimate value – their hominess.

May be an image of kitchen island, lighting, range hood and indoors

At last! Relief from your lifelong yearning to live full-time at the dentist’s office…

May be an image of range hood, kitchen island and indoors

That’s funny. Here’s what isn’t: This icy, monochromatic style of interior decor is everywhere. The rule of the MLS is this: If the homeowners spent money on their home on the way out, they made it grayer and less homey – by a lot. Flippers? So much the worse.

No photo description available.

Women’s magazines don’t give advice on exterior decor, so from the outside homes are done in creams and browns, meat and potatoes. Iceberg interiors are a fad driven by people who abhor human beings and their actual emotional needs. Literally no one wants to live at the dentist’s office, they just can’t stop heeding bad advice.

May be an image of range hood, kitchen island and indoors

Workplace decor is sterile so that you never get too comfortable. This style of interior design is inflicted upon home-buyers by people who hate homey colors – creams and browns – and the warmth and comfort they induce.

May be an image of range hood, kitchen island and indoors

It’s worth noting that this home design fad took root just about the same time the government outlawed warm, homey incandescent light bulbs. Our light is cold and blue, and so are the surfaces reflecting it.

I’m showing you the kitchen, the homiest room in a home. It’s not there to make a design statement, but rather to make stew – ideally in the colors of stew. Plus which, a homey kitchen cannot seem to abhor drips and splashes – which is what medical countertops are meant to reveal.

I’m mocking cheesy flippers mimicking cheesy women’s magazines, but more deeply I’m objecting to this whole design esthetic for homes: Home is literally meat and potatoes. Almost always looks like that from the outside. Only lately have we fled from that look for interiors, opting for this sterile monochromatic office look.

Clearly, I’m against it, but I’ll add a couple of caveats: First, I’m only interested in marketing to the middle of the bell curve – the Buick Regal buyer. Second, the stoutest heart of that market is here, in Sun City. I don’t think anyone feels at ease in an iceberg interior, not without overlaying everything in browns and creams, but I’m pretty sure my demographic – 55+, very middle class – wants nothing like what they get from flipper after flipper.

How do you sell a Sun City historic mid-century-modern renovation? “Barbie and Ken slept here!”

I’ve been watching this house for months. There is after-market stuff in there, but the kitchen and baths are original insouciant MCM – Rob and Laura Petrie in a 1963 state of optimism. It would be wonderful if someone adopted this as a project home, an historic renovation as it were, to put Rob and Laura where they belong by now – in Sun City.

Sun City’s youngest were born in 1969 – spawned at Woodstock? – which has amazing demographic implications. Like this: There is a market for MCM historic renovations here – houses like this built in the early ’60s. The sign rider? “Barbie and Ken slept here!”

Price matters — but so does everything else: When buyers come to see your home, they’re looking for reasons to reject it, not to buy it

This is my column for this week from the Arizona Republic (permanent link).

 
Price matters — but so does everything else: When buyers come to see your home, they’re looking for reasons to reject it, not to buy it

If price matters more than anything else in the sale of a home, why bother to clean, repair, stage and market the property for sale?

In a buyer’s market, if a home is priced above its market value, it probably will not show. If it doesn’t show, it can’t sell, and this by itself is all the argument anyone should need to price a home to the current market.

The corollary proposition is that, if your home is properly priced, it should get frequent showings.

So the battle is won, right? All you had to do was price your home to the current market, and you attracted the attention of buyers. Victory is at hand.

Not quite.

Your home is showing, and that’s good. But if it is dirty, if there are obvious repair issues, if the space is cluttered and confusing, if no one has worked to point out why it’s such a good buy — other houses will sell and yours will languish on the market.

As long as you’re priced right — and price can be a moving target in this market — you’ll get showings. But if your home is not a better value than the other houses your buyers are seeing, they’ll buy those homes instead.

That’s exactly what you would do in their place, isn’t it? When you’re picking through the melons at the grocery, you aren’t looking for the ones that are bruised and shopped over, unsightly and unappetizing. Why would you expect buyers to buy a property that you would pass on in a heartbeat, if you were in their shoes?

When buyers come to see your home, they aren’t looking for reasons to buy it. They’re looking for reasons to reject it, so they can move on to the next home. The one they buy will be the one that raises the fewest objections, for the money. If you want that money, you have to do everything you can to take away your buyers’ objections — before they think to raise them.

Not willing to do that? It’s not a problem. Just cut your price.

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Home staging advice: How you can get your house ready to sell on a shoestring budget

We know a seller who doesn’t have the budget to spruce up her house to get it ready for market. Though it would be better for her to put a fresh coat of paint on the walls, there are still things she can do for free to help her house sell.

The first thing that every seller should do to help their lister sell the house is box things up. You’re going to have to box up everything once the house sells anyway, so start right now… before you put your house on the market. Go through your closets. What’s in there that you don’t plan to wear for the next three to six months? Pack it up and put it in storage. Take a critical look at the traffic flow in your house. Have you just become accustomed to swerving to avoid that overstuffed chair that sticks out a little too far? Time to downsize. If you can’t afford to rent an inexpensive storage unit until the house sells, store that chair and those boxes of clothes that you plan to fit back into by the holidays in the garage. If you’ve run out of room there, ask your friends and family to help. Maybe one of them would love to lay back in that chair to watch the tube until you need it back again — in your new house. Do you keep the leaf in your dining room table, so you don’t have to bother with it when you have company for dinner? Plan to not have company for dinner until you invite them over to see your new house. Take the leaf out of the table and pare down the number of chairs that are set up around the table to only three or four. If the kids bring home a friend for dinner, give them the TV trays.

Next — and probably most important — clean, clean, clean. Clean as though you were having Martha Stewart over for dinner. Is your bathroom floor so clean that you would sit down and play a game of jacks on it? It should be. Touch the walls of your shower. Are they smooth as glass? If not, here’s an investment you must make: Kaboom! Thirteen dollars for two bottles and add your elbow grease — this is a small enough investment to sell your home in this market. Everything that’s made of glass should shine: windows, mirrors, light fixtures, oven door windows (oh yes, clean that oven, too!), everything that’s glass. All your appliances need to shine. All of your countertops need to shine. You want a light, bright, shiny house. Dust the slats in your window blinds; dust the tops of your ceiling fans; dust every surface that you haven’t already just scrubbed. Make sure your air filter is fresh … and put a new one in every month till the house sells. You haven’t noticed it for years, but the prospective buyers will see the dark build-up that’s accumulated along the edges of the air vents and returns, so clean those, too. Scrub everything that hands have touched and over the years left their mark — light switches, door knobs, drawer pulls. Don’t neglect your floors. Clean them like Christmas is coming. And after you’re done with all this you’ll be able to notice the other areas that need your attention before the photographer comes.

Remember high school? Remember when the photographer scheduled a day to come take pictures of all the underclassmen? The seniors had each already payed a handsome sum for private studio sessions to make sure that would great senior pictures for posterity. But the underclassmen had one chance and a prayer of getting a decent photograph in that year’s yearbook. If you were like me, you paid extra attention to your skin during the weeks leading up to the shots, to make sure your complexion was clear. The night before the photography, you picked out your nicest looking outfit. And the morning of the pictures, if you were a girl anyway, you got up early to make sure your makeup and hair were perfect. Well now — with your house — we’re talking about a six-figure asset. So the morning that the photographer is scheduled to arrive do whatever you can to make your house picture perfect.

Put away the Sunday paper.

Wipe the dishes and put them away — don’t leave them out draining. Clear the reminders from your refrigerator. And — for goodness sakes — don’t leave your prescription bottle sitting out on the counter.

Take your dirty clothes off the bed and make it! This includes putting a cover on the bed that’s at least long enough that the bed skirt’s slip isn’t showing. (Do I need to mention picking the garbage and more dirty clothes up off the floor?)

And please put the toilet seat down!

But there’s more you can do. Set the table as though you were expecting guests. Make up the bed so it looks like a display in the Neiman Marcus Bed & Bath Department. Put out a vase or two of cut flowers. Fill a glass bowl with fresh fruit.

I recently staged a home for sale, which had previously been listed but not staged. Pictures from the earlier listings were well taken… but just look at what a big difference little touches can make.

One final tip. Look at the photos your agent uses when the listing goes into the MLS. Be very particular.

This photo was used on MLS with the caption, “Master Bedroom.” Is this the image you want prospective buyers to have of your master bedroom? If this is the image that’s being presented, then expect yours to be one of the tens of thousands of houses on the market today that are not selling.

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Do you want to make sure your home will sell? Little things matter

This is my column for this week from the Arizona Republic (permanent link):

 
Do you want to make sure your home will sell? Little things matter

I tend to do a lot of previewing. I will go into houses alone to take photographs. My buyers and I then use those photos to draft a short-list of homes to view when they’re ready to see for themselves.

Because of this, I get to spend a lot of time alone in homes, looking at absolutely everything, with no distractions.

Here’s what I’ve learned from looking at thousands of homes for sale: Little things matter.

Is the home picked up, or are there clothes, toys and magazines scattered everywhere? Are there dirty breakfast dishes on the kitchen table? Dried up orange juice splotches? Toast crumbs? Are last night’s dirty dishes piled up in the sink?

Is the house clean? Does it look and smell like the cleaning crew just left? If I look for dirt, I can find it. But can I find it easily without having to look?

Is every room of the house packed to the walls with furniture? Are there pictures of every member of the family for three generations tacked all over the walls? Do the kids like dark blue, dark purple, dark black paint?

I can probably guess your religion by the stuff you own and the other stuff you don’t own, but my buyers should never, ever see symbols of your religion in the house. Why? Because it can be subtly off-putting to them without their even knowing why at a conscious level.

Likewise, if they can smell your cat — or the fish you fried for dinner last week — you’ve probably already alienated potential buyers before they have even given your house half a chance. Odors kill sales, so kill those odors now.

Fix any obvious defects. Only a specialist can say for sure if the air conditioner is working properly, but no one has to be told when it’s completely broken.

It only takes a few small things to drive buyers on to the next house on their list. If you want for yours to be the one that sells, it simply must be better than others. Little things matter.

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Web site demonstrates how much goes into staging a home for sale

This is my column this week from the Arizona Republic (permanent link):

 
Web site demonstrates how much goes into staging a home for sale

Week after week, I hammer away on the idea that the only homes that will sell in our current market are the ones that are priced right, prepared right and presented right.

But here’s an unwelcome fact about the real estate market: Home-sellers can be bull-headed. I don’t know how many times I’ve had sellers tell me all about what is wrong with the other houses for sale in their neighborhood.

My answer? I agree. But we’re not talking about those houses. We’re talking about what it will take to sell the sellers’ house.

And that’s when I get to hear about all the improvements the sellers have made — some of which are actually worth what they think they’re worth.

But what I really want is for my sellers to look at their own home with the same critical eye they bring to the neighbors’ homes. It’s motes and beams, surely, but seeing your home through a buyer’s eyes is a very instructive exercise.

It’s fun for me, because one of the things I tell sellers is, “You know what’s wrong with this house. You know exactly what you would frown over — or your mother-in-law would frown over — if you were seeing this home for the first time. Those are the issues we need to address before we can try to sell this house.”

This is the threshold of staging, which entails a lot more, in most cases, than laying out a few decorator items. A home that is prepared for sale is in complete turn-key condition, with no obvious defects left uncorrected.

One of our listings in North Central Phoenix just sold. We made a before-and-after record of the staging process, so you can see what we’re aiming for. You can view this demonstration by clicking here.

Staging is all the rage right now, and preparation is only one part of a sound marketing plan. But staging is a wasted effort if the home is dirty or in palpable disrepair. Our slide show illustrates a more robust idea of home staging.

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