While many homeowners interested in selling their home are waiting for the market to improve, others have taken the steps to sell their homes now. I recently sold a home (my own) within five days. Another home nearby sold within 7 days. What made these houses appealing was the prep work done by the homeowners (covering and repainting nail holes, cleaning everything, staging the homes to look their best) and pricing them to sell. While, we didn't expect to receive the prices of 2007, we did price the homes a bit higher than other homes in the area because these homes were "ready" for sale. Compared to the competition, these homes were stand-outs. The end result was that they sold quickly and we got our price! That meant that while other sellers were fretting the next showing, my clients were already enjoying the feeling of relief that comes when your home is under contract with a solid buyer.

You've got other things to worry about. I'm fortunate to have a real estate partner who's a certified stager, and every listing I take comes with a free staging consultation.

Your home can sell faster and for more than the competition, as long as it is prepared better than the competition, or priced lower than it.

If you need to sell, I can show you what you need to do to make it happen. If you've tried to sell but couldn't, I can help. Call for a free home selling consultation.

Talk to Top!

Al "Top" Stickland

www.TALKtoTOP.com

360-359-1274

Riley Jackson Real Estate

When you talk real estate, Talk to Top!

Many builders enter into relationships with lenders that go well beyond a property or building loan. Often wrapped up into these arrangements is marketing services and other "seed" money that the builder might require to sell the properties the bank has financed. That leaves the builder beholden to the bank, and often results in the bank becoming the "preferred" lender.

The relationship can become even more convoluted when the builder co-locates lenders at their model homes, touting the service as a one-stop convenience for patrons. But what happens when you have your own lender, perhaps one you've done business with for years? The answer is that the builder will often offer finance concessions only available if using the preferred lender, and often the preferred lender charges more, in some cases much more, than you might find with a lender you've done business with in the past. That is what happened recently with clients purchasing a home through a national builder in the area.

The on-site agent explained that the builder offered $8,000 to qualified buyers. She stated that our clients could use their own lender and still receive the credit. However, the builder countered their own agent's offer and required our buyer to use their lender. That would have cost my clients an additional $4,000. After some negotiation the "preferred" lender agreed to lower their costs to match what our lender had offered. A definite win for my clients, but a stain on the reputation of the builder.

You always need your own Realtor! Throughout the negotiations, my clients knew what was happening, the pros and cons of the choices presented, and were able to make informed decisions. Trusting to the site agent in this case would have cost them $4,000 more.

TALK to TOP!

Al "Top" Stickland

www.TALKtoTOP.com

360-359-1274

Riley Jackson Real Estate

I bought a new home and am faced with selling my old one. We all know that this is a tough market, and there is lots of inventory to choose from. Here are some of the actions I've taken to make sure my house sells:

• In evaluating the pricing strategy I was going to use, I first made sure my client (my wife) realized that we don't want to become another comparable. We need to be different, so once I determined what houses were selling for in my neighborhood, I dropped my price. I want to be a great deal, not just another home priced about the same as all the rest. On Day one, I'll be $10,000 below the exact same floor plan around the corner.
• I've spent a little time and money prepping. I've replaced the faucets, I've done some repainting, I've had my yard guy and my handy man out to get everything in tip-top shape, and I've had the carpets cleaned (again). My goal is for the first buyer to walk through the door and realize there is nothing that needs to be done to the house. No picture holes to touch up. No deferred maintenance to perform. Nada. Just move in.

• I've also scrubbed my fingers to the bone. Sinks, floors, window sills, cabinets, you name it, I've cleaned and conditioned. I've ripped out all the contact paper, dusted the furnace exchanges, and removed every lime deposit I could find. I don't want a buyer to look under the sink, see a dust ball (or worse) and wonder if the house has been cared for. I've pressure washed everything, re-stained the porch (yeah, its winter time, and it was no fun!) and touch up painted the porch railings.
• I'm also having the house staged (thanks Sandy!) since I no longer live in it. Staging goes a long way in making a house feel homey while not reducing the size of the rooms like a lot of furniture can do.
• I'll put a home warranty on the house (I do that for all my listings) so buyers won't have to worry about the plumbing failing on them.
• Finally, I'm preparing little signs to post around the house that highlight items that aren't listed in the MLS.

After all the prep work, and after viewing the properties for sale around me, I'm convinced my house is in better shape, has more to offer, and is priced less. What a combination for the lucky buyer!

As a last step, I've prepared myself that more might have to be done. When the offers start coming in, I'll be flexible and remember that my goal is to sell quickly. If I get a full price offer on the first day, that won't mean my price was too low. It will mean that my preparation and pricing strategy were right on.

I think I'm ready. And since I use an automated feedback program on all my listings, I'll hear from the majority of real estate professionals who show the house, and I'll do whatever else needs to be done.

I'll keep you posted.

When you talk real estate, Talk to Top!

Al "Top" Stickland

Associate Broker, ABR, GRI

Riley Jackson Real Estate

My Real Estate Partner, Sandy Nelson, blogged not long ago about Washington's new law requiring a contractor's license for "laymen" who flip houses. Recently, Dennis Yonker, Assistant Chief of Contractor Compliance with the Department of Labor and Industries, was the guest speaker at the weekly Multiple Listing Sales Association (more on the association soon).

As you likely know, House flipping has become a major hobby for some, and a career change for others. As a result, Washington State felt it imperative to inact laws to regulate it. I write this as an information paper only, I am neither trying to defend or support the decision. But many of you might be a little confused over this and I thought I'd pass along the information I obtained. In other words, don't kill the messenger!

According to Mr. Yonker, the purpose of the law was to protect consumers. A contractor is required to establish a bond, which if a suit is brought, can be used to cover the harmed consumer. So the intent of the new law was to add that coverage to a consumer who bought a home that had been flipped, by ensuring that the same bond process is in place for all home purchases.

I thought the best part of the session was the question and answer period, so let me cover a few of the more significant:

• If I own a home, have lived in it for 3 years, do I need a license to fix it up to sell? The answer is no if you have owned the home for more than 12 months. 12 months is the "magic" time frame.
• I plan to buy a lot, construct a house myself or hire a contractor to build for me, for the purpose of selling that improved property. Do I need to be a registered contractor? Yes. If instead of selling, I plan to build my dream home and live in, am I still subject to the new contractor requirments? No.
• I am purchasing a home to renovate with the purpose of selling it. Do I need to be a registered contractor? Yes. What is I live in the home while I renovate it and, then to I need to be a contractor? Not if you live in it or own it for more than 12 months.
• What kind of activities would require that I have a contractor's license for a property I buy with the intent to sell? Paining, replacing counter tops, cabinets or carpets, pressure washing the roof, etc.
• How does this apply to specialty contractors (cabinet installers, carpet installers, etc?) Will they have to have a contractors license ? Not as long as they stay within their specialty. For example, a cabinet installer which would require moving an electrical outlet could sub-contract the electric work. However, a cabinet installer requested to renovate an entire kitchen could not sub-contract the work, since those trades are not incidental to the normal job of installing cabinets. That work would require a contractor's license.
• What about roofing specialists? If I am a roofer and in the process of removing the old roof find rotted trusses, can I replace the trusses or sub-contract to have them replaced? No, the homeowner would have to contract with a general contractor to have them replaced.

As you can see, some of this could cause quite a bit of controversy, depending on what you do for a living. There is no doubt that this adds a lot of red tape to anyone who uses house repair as an income source. Only time will tell if this has a positive or negative impact on the market. But it seems obvious that at a time when there are more foreclosures on the market than in recent history, this will likely greatly slow the rehab process of these homes.

We'll try to keep you posted.

When you talk real estate, Talk to Top! www.TALKtoTOP.com

Al Stickland'

Riley Jackson Real Estate

Before I cover what happened at the seller walk-through, I want to review our decision-making process. It's true that emotion has played a big part in the process. And how sad it would be if it hadn't! This is the kind of home my wife and I have dreamed of it seems, forever. So when the opportunity to buy it arose, we didn't just start the process, we attacked it. We wanted that home and were going to do what we reasonable could to get it.

The first consideration was the value of the home we're buying. There's no doubt we're below market value on price. The only fear is that we'll be resented by our neighbors, but this home is on five acres and the home is smack dab in the middle of it, so I can be hard to find if need be. The second consideration is the sale of our home. It's in a popular neighborhood and if needed, I can rent it. But I feel that I can sell my home where some of my neighbors are struggling. But here's why I'm confident mine will sell:

1. My home is eight years old and has had some of the upgrades people are currently looking for:

• Laminate flooring throughout the kitchen, family room and hallways
• Updated downstairs bath with pedestal sink
• New plumbing hardware and lighting throughout
• Upgraded carpet installed last year (thick pad, neutral color)
• An upstairs office with laminate flooring and an entire wall of built-in cabinets that match the cabinets in the rest of the house
• A lush backyard (though winter doesn't do it justice) with extended patio, gravel pathways, concrete side yard with shed and dog run. In the summer there's screening from every neighboring house.

2. I'll also tout the maintenance that has been done recently to make the home as worry-free as possible, like the new garage door opener, garage springs, new heavy-duty disposal, furnace service, pest inspection and abatement treatment, etc.

3. I'll also have the house staged. My partner is a stager and I have seen the impact first hand.

4. And most importantly, I'll price it to sell. I'll do my best not to leave any money on the table, but I am willing to pay (in reduced costs) to sell the home in a timely manner. Frankly, some of my neighbors are a bit too adamant about their price.

You might wonder where the granite counter tops are. They were on the 2009 plan that we won't be here long enough (I hope) to follow through on. And frankly if I need to turn this into a rental I'm not sure solid counters would be a wise investment.

The bottom line is that the new house is the right price and I can either sell or rent this one. Seems like a no brainer, but there's another consideration, and that is of continued falling prices. When I mentioned that to my broker the other day, he dismissed it immediately. The new house has dropped substantially in the last 6 months and neither I nor my broker feels it would fall further. The fact is however that no one can predict the future, and prices could fall. If you were to purchase a home for $500,000 and the value plummeted a hundred thousand dollars, it would take about 10 years for the value to recover (using national statistics, much less on average here in the northwest). We realize the risk, though I think it's minimal, especially considering that this is our "forever" house. Waiting 10 years won't be a problem (God willing).

So, decision made. Now its time to continue the process, and I'll fill you in as we go. Stay tuned.

When you talk real estate, Talk to Top! www.TALKtoTOP.com

Al Stickland

Riley Jackson Real Estate