Rob Graham

Here is an idea that can make you money and cost you nothing up front.

A good friend of mine works for The Snow Leopard Trust, here in Seattle's Wallingford neighborhood. The trust is dedicated to protecting the snow leopards. In brief, the snow leopards are an endangered species that inhabits the mountainous regions of Southern Asia. Their biggest threat is the people that live in the same habitat. The leopards are hunted by poachers and also by local farmers looking to protect their livestock. The trust is attempting to give an alternative economic avenue to the locals by selling their goods here in the US. By doing so the local people can shift their economic focus and no longer hunt the leopards.

My friend contacted me and asked if I would like to do some advertizing through various avenues. Long story short we have had a meeting or two and here is what we came up with. The trust and I have come up with some marketing that they are going to distribute through various channels. For every client that I receive through their efforts that leads to a successful close, I have agreed to make a $500 donation in that clients name toward the trust.

For me this is a great avenue because it cost me nothing up front, and others who are full time marketers and in the business of eliciting donations and working with the public, are doing the marketing for me. The already have a data base of donors and are willing to do the work themselves. If it works and I begin to receive clients, I don't need to pay anything until after close.

How many marketing ideas are there, that cost you nothing until you have

already received cash in your hand?

For the trust, they receive one more avenue to receive a donation. It is a win win for both of us.

So in this difficult time, you may want to think a little outside the box. Pick a charity that is near and dear to your heart. It could be your children's school, the local animal shelter, or whatever. Approach them and see if they would have any interest in such a partnership. If it works out, it benefits both you and your favorite charity.

I'll keep you posted on how successful this is.

Many of you have probably asked the question, "What happens to a persons house and personal belongings when they die?"  The answer is that there is usually an estate sale.  This weekend there is an estate sale at a listing I will be co-listing later this month.  I thought I would take the opportunity to show you how they work. 

So when the owner of this home died he willed his estate to his three children.  They are located all over the country.  The owner's wife passed away several years ago and they have lived in the house for several decades. 

The family hired an estate lawyer to act as executor for the estate.  He in turn hired us to handle the sale of the home.  

The first step is allowing the family members the opportunity to go through the home and remove any personal items they would like to have. 

The next step is having the contents removed.  For this step we hired a company that specializes in estate sale situations.  They have been amazing.  Yesterday they came through and in one day, priced and arranged all the contents of the house similar to a yard sale.  (See pictures)  The actual sale of the items will happen this weekend.  All day Saturday and Sunday people can come in and purchase items. 

Next week I'll make another post on how the sale went.

On Monday the same company invites non profits and charities to comb through what didn't sell and take anything they think they might be able to use.  Later that day a final person is invited through to recycle any items that can be recycled and haul away the items that need to be thrown out.

So here is the timeline:

• Wed: Arranging and pricing of all items
• Sat and Sun: Estate Sale
• Monday: Donation of all usable items, recycling and removal of any remaining items. 

By Monday night the house goes from looking like the photos to completely empty.

Then the estate sale company subtracts their costs from the proceeds of the sale and hands the family a check for the balance. 

Its amazing and a fantastic service to a family who would rather not be burdened with the trouble of having to do all of this themselves.

Tune in next week for the next update.

Thinking like a Home Seller is different than thinking like a home owner.

One of the most common questions I hear from potential home buyers is, "What clean up and fix up should I do before bringing my house on the market?" I love this question because it means that the seller hasn't sunk thousands of dollars into the home already. Unfortunately, sometimes homeowners come to me after having sunk a lot of money into their home assuming that updating kitchens and bathrooms is the way to get a lot more back when they sell a home. Agents will disagree on this topic, but when it comes to selling your home I have a few key rules to follow:

You shouldn't put a dime into preparing your home to sell that you won't get back when you sell!

•· Fix it, Replace it or Remove it - anything broken, should be addressed. If the garbage disposal doesn't work, replace it fix it or remove it. Broken items in a home indicate to a buyer that the previous owner didn't take good care of the home. They will see the disposal and wonder what else hasn't been taken care of.

•· Clean it - This is so simple and yet so important. Again a clean house indicates care of a home. If the house is dirty, a potential buyer is going to have a negative impression, spend less time in the listing and wonder what else hasn't been cared for.

•· Paint it - It is amazing what a huge difference a coat of paint does for a home. I can't tell you how many times I have been in a home with a buyer and they say, "I like it but I can't stand the Paint." Paint?! What would cost you $25 at the paint store and an afternoon could cost you an offer on your home. One more thought on Paint: Don't use white! Cream, beige or tan is a much better option.

•· DON'T UPGRADE - Don't remodel that kitchen or bathroom. You will spend a lot of money that you will not get back dollar for dollar. You also run the risk of finishing off a room in a way a potential buyer will not like. A buyer would rather see a functional bathroom that is dated that they can customize to their own taste, then a finished upgraded room that they do not like.

•· Clean up the yard - The more you can up the curb appeal the better the sale will go. I have had some great houses where potential buyers don't even get out of the car because the house doesn't have enough curb appeal. They pull up, take a peek and keep on going. Clean it up, cut the grass, trim the bushes, hide the garbage cans

•· Depersonalize the home - A buyer wants to be able to see themselves in the home not you. Take all the pictures off the fridge, and hide the wedding photos. Try to make it look like a hotel lobby. Clean, bright, but neutral. No buyer wants to feel like they are standing in YOUR living room.

One more comment on depersonalization. I don't care how strong your political convictions are, take that politicians sign off the lawn. You don't want to offend a potential buyer who is a card carrying member of the libertarian party. (It's a real party, you can look it up)

So what are the upgrades that I would recommend?

Anything that is tastefully done and increases space, bedrooms or bathrooms. Finish out that basement or attic space. If you can go from a 2 bedroom 1 bath 1200 square foot home, to a 3 bedroom 2 bath 1800 square foot home, you have made an enormous improvement. Keep in mind though that adding bedrooms has a diminishing return with each room. 2 bedrooms is far greater then 1. 3 bedrooms is certainly better then 2. The 4^th and 5^th bedrooms become questionable and the 6^th is almost useless unless you have the Brady Bunch as a client. (Shoot, now I am going to have that theme song stuck in my head for the rest of the day. Here's the story...)

Keep in mind that any decent agent is going to give you clean up and fix up recommendations when they give you a price analysis of your home, so before you run out to the home depot, give me a call and ask if it is a good idea.

Talk to you soon.

I frequently hear people say that real estate agents try to under price homes to try to get them to sell quickly. There seems to be a sentiment that we are all money grubbing misers who don't care if our sellers lose out on a few grand so long as we get our commission at the end. Well, the truth is that over pricing your home can have really detrimental consequences.

Many times when I go to a listing appointment the seller has a price in their head at to what their home is worth. It is sometimes unrealistic. Sellers of a home have learned to love their home and see it through their own eyes, not those of a potential buyer. Buyer's don't care that your favorite uncle helped you build the shed in the back or that your child took their first steps right there on the gleaming hardwoods. All they see is a place to make their own future memories. They also see that leaky faucet that you have learned to overlook. Therefore, it isn't uncommon that seller's think their home is worth more then what it is truly worth to an objective eye.

It doesn't help that frequently banks will allow owners to overextend themselves to make improvements or to pay off bills using the equity in their home. Then when the time comes to sell the seller believes that the appraisal value is what they should get for their home, when in fact it is sometimes inflated to justify a loan.

FACT: Price a house to high and you will find yourself "chasing the market".

What is "chasing"? Chasing is when a house is over priced initially and does not sell in the first few weeks on the market. Then the seller agrees to price reductions over time. Frequently the price they will get for the home is considerably less then what they would have gotten if they had priced the home correctly in the first place.

Chasing the Market Costs you Money!

I can't tell you how many times my buyers will look at a listing that has been around for a while and assume there is something wrong with it, and ask to not even go see it.

The most eyeballs that will see your home will see it in the first few weeks. After that you are trying to market the home to fewer and fewer people. This leads to chasing the market.

Yea Yea Yea. I hear the skeptics out there. "Sure Rob. All agents say this so they can under price my home". Well here is the worst example I could find:

I had a listing presentation today and came across this house as a comparable.

I won't tell you the address or listing number to protect the seller and listing agent from further embarrassment, but here is the situation.

The house was originally listed in April of '07 for $590K. Since that time they have reduced the price no less than 11 times! The house is still for sale right now for (you may want to sit down for this) $410K. AND IS STILL NOT SEEING OFFERS! Let's recap.

17 months, 11 price reductions, and no sale!

How would you like to be that seller?

Admittedly this is an extreme example. In my estimation the house is truly worth about $445. At $410 I wouldn't expect them to see offers above $400K from here on out. So by grossly overpricing the home they have spent 17 months and cost themselves as much as $50K.

The moral of the story in today's market is price it right the first time.

If you price too high and end up chasing the market, you can end up costing yourself a lot of money in the long run.

Give me a call if you need help.

Selling a home in Seattle has become a little more treacherous then it was a few years ago. This isn't a surprise to anyone. You may have also heard the truism that price is king. The price you choose to list your home for is the single most important decision that you and your agent will make. It is estimated that price is as much as 80% of the marketing of your home. In the age of internet shopping, if you don't have the right price, most buyers will never even find much less consider buying your home.

Here is the risk:

• Price your home too high and it will sit on the market. If it doesn't sell right away you are what we call "chasing the market". Meaning you are now adjusting the price downward to try to generate more interest. This strategy often ends up costing you money compared to pricing your home correctly in the first place.
• The second scenario is pricing your home too low. This was much less of a risk in the feeding frenzy of the housing market of say 2006. If you priced a house "too low", multiple offers would stream in and compete with each other. In many cases this netted the seller even more money then had they priced it fairly. But those days are long gone.

Today the best and only strategy to follow is to price your home fairly from the beginning. This leaves little room for error. So what is the best way to feel comfortable that the price you and your agent have chosen is going to sell your home?

Wouldn't it be great if you could have the opinion of several agents and not just one?

Well you can!

It's called a price opinion, and agents do it all the time. Here in my office it is as simple as picking up the phone or firing off a few e-mails to other agents that you trust. I set up a time and meet them at the house. They go through the home and then we mill around discussing the pros and cons of the house and of course the price. By the end of the process, you have a much better feeling for the true value a buyer will find in your home. It is also much more objective.

If you are thinking of selling your home, ask your agent if they would be willing to get a price opinion from other agents they trust. If the answer is no, ask them why. Some agents allow their own ego to get in the way, fearing that agents will not agree with their opinion. Other offices just don't have much of a collegial atmosphere that makes a price opinion an option. That is really a shame. I find it a great way to offer more value and piece of mind to my clients as well as a nice advantage over the competition.

Selling a home is still a dicey proposition right now, but doing your homework upfront can help you avoid a lot of pitfalls.

Give me a call if you need help.