We've had dozens of showings, but our home just won't sell...please help!

Dave,

We’ve had our house on the market for several years - with four different realtors. We’ve raised the price; we’ve lowered the price. According to our current Realtor, it is priced right. Comps are difficult because our house is unusual; most people seem to want a cookie cutter house. We’ve followed all the usual recommendations - cleared clutter, reduced furniture, painted, opened windows, turned on lights, have great photos and hired a stager. We’ve had dozens of showings and three main complaints: it’s a wood frame house, it has too many stairs (it’s 3 stories, 4100 sq. ft.), and it’s a reverse layout (millennials do not want children on a different level than parents). None of these can be changed without a major remodel. Our house is old (40 years - with us as original owners) and needs updating, but it is carefully maintained. I would appreciate any suggestions. If we lower the price anymore, we will be giving it away.

Lynn, Location Withheld

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Lynn,

Where to start? Your dilemma is one I have seen more times that I would care to admit and unfortunately it is somewhat likely you will not appreciate my solution to your situation. Although your current Realtor thinks your home is priced right, I will also assume that the previous three agents thought it was priced right and were apparently wrong since it still has not sold! One thing about your situation that is a little different is that typically in our market if a home is not priced correctly the market will eventually catch it. What I mean is that the market has been appreciating steadily and that over time it will eventually catch even the most overpriced homes…unless the pricing is just totally unrealistic. As I provide information to help you evaluate your situation keep in mind that when selling a home you can only control three things: how well your property is marketed, how well it is priced and the overall property condition. That’s right, when you boil down all the extraneous things people want to make selling a home about, these are the three primary things you can ultimately control, or have influence over, that will positively or negatively impact your ability to sell. 

It sounds as though from a condition standpoint you have gone to great lengths (clearing clutter, reducing furniture, painting and hiring a stager) to ensure your property is in great condition and is well prepared for showings. I am also going to read between the lines that since you have had “dozens” of showings that your Realtor(s) have marketed it sufficiently enough and your photos are good enough for buyers to find it and choose to come take a look. Ultimately a market stat that I have heard and used over the years is “for every 13 showings you should have an offer." I realize that that number may be 9 showings for some houses and 16 showings for others, but ultimately if you have had “dozens” of showings and no offers, you likely have a pricing problem.

To be totally honest, unique and dated can be a lethal combo. You narrow your buyer pool by having a home that has a “unique” layout and one that is in need of a cash infusion. The complaint about kids being on a different level is a very real issue for families with young kids (under 10). If a family has 3 teenagers then they are much more open to having them on a different level, but young kids and stairs everywhere is just not desirable, regardless of the generation. Let's also put into perspective the idea of updating a 4100 square foot house. The bigger the house, the more expensive it is to update. Updating a 4100 square foot home is much more expensive than updating a 2500 square foot house and to a younger family (and that is who buys large homes with multiple levels) the cost can be very intimidating and keep them from pulling the trigger. In order to “lure” them to buy, there has to be some significant monetary upside to putting in the work and money to bring it up to current tastes.  

“I believe your answer is relatively simple if your willing to hear it. You can keep the price where it is and eventually the market will catch you and you will find just the right butt the saddle or you can lower your price to make it more appealing to your target buyer. ”

I believe your answer is relatively simple if your willing to hear it. You can keep the price where it is and eventually the market will catch you and you will find just the right butt the saddle or you can lower your price to make it more appealing to your target buyer. To really solve the puzzle you must also find out what the buyers are buying instead of your home. Knowing what they are buying will tell you a lot about where you stand in relation to your competition and what you need to do to become more competitive. Remember, it is a competition and your perception of “giving it away” is clearly not the perception of the buyer pool thus far or your home would already be sold. Several years on the market, in this market, is too long. Stop and listen to what the market is telling you! Don’t hold it against me, I warned you that you might not like my answer! Make some adjustments to get more competitive and view your home through the eyes of your buyers and I bet your results will change.   

Dave Kimbrough
The Kimbrough Team

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Should You Leave Up Trophy Mounts When Selling Your Home?

Dear Dave,

My husband is a big game hunter and he has some incredible mounts in our home. Should we remove them or is it ok to leave them up? Of course, I think we have too many and he thinks they look awesome and they are prized possessions.

Betty, Fruita

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Betty,

This is a common theme for homes in Western Colorado. The fact that we live in Western Colorado and not Chicago, not that there is anything wrong with Chicago, makes trophy mounts more acceptable but there is a fine line of too much. Hunting is a way of life and not just a hobby, but in many cases, it borders on obsession. Many hunters like to showcase their mounts and in most cases, I am great with it.

“If your home has vaulted or volume ceilings then having a “mount or two” will generally be fine. Again, look at your home through the eyes of a buyer and ask your real estate agent what they recommend. ”

The key here is to make sure the mounts do not overpower your room. If you have low ceilings, there is no doubt it is better to remove and store them. If it is truly a “trophy” and you have low ceilings, it will make the room appear much smaller and more closed in. 

If your home has vaulted or volume ceilings then having a “mount or two” will generally be fine. Again, look at your home through the eyes of a buyer and ask your real estate agent what they recommend. The idea is to accentuate or complement your room and decor, not overpower it. Happy home selling and continued happy hunting!! Just sell it before he has a chance to add another one this fall! : )

Dave Kimbrough
The Kimbrough Team- RE/MAX 4000, Inc.

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Benefits of Using a Local Mortgage Lender

Dear Dave,

We are recently retired and sold our home of nearly 30 years. The people who bought our home were from out of state and did not use a local bank to get their loan and our closing was delayed 3 times while we waited for thing to get straightened out. We have not bought or sold in a long time, but according to our agent they got a great rate from this national lender and delays are just part of it. It seemed to us that because the lender was not local, all of the paperwork and decisions had to happen on the other side of the country and nobody here really had any good answers for why it kept occurring, however when it was said and done they did get a very good deal and saved some money.

We are now in the process of buying a new home. We want to make the best decision possible in obtaining our loan, but could you provide some advice on local banks vs. national companies that may have better rates?

Thank you,
Julie and Paul, Fruita

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Julie and Paul,

Ahhh the fresh scent of a lenders delay…The lending side of the world is the most frustrating part of the business for me. First, always remember that the information Realtors relay to our clients is only as good as the information relayed to us by the loan originator and their information is only as good as what all the mouths upstream are relaying to him or her. Let me say that finding a good and competent local lender is always the best idea and the vast majority of our local loan originators will work diligently to get your loan processed and completed through underwriting on or before the closing date.

One of the big delay offenders is when an underwriter needs clarification on a piece of information that was provided in the buyer's loan file or with the property appraisal. When this happens the processing can be delayed until the information is re-submitted or clarified and that can take days. It all depends on the volume of loans that a lender is processing and the location of their underwriter, but it can be like a one car breakdown on the 405 in L.A. It really does not take much to throw everything into a waiting game. Because underwriter delays happen at or near the end of the loan approval process the delays can have a significant impact. The underwriter is the St. Peter at the pearly gates of lending. They are the ones, to my way of understanding, that ultimately have the final say on if the loan meets all the required conditions or not and if the appraisal is satisfactory and meets their internal appraisal metrics. 

If it does, that is fantastic, we are moving to close and if it does not…well that’s not good. Not always fatal, but typically not good. It is best if you use a lender whose underwriter is local or in-state. Having a local or in-state underwriter is key, as they are more accessible and understand our local and state markets for interpreting appraisals and having a local underwriter review the file is far better than one in Boston, as they just have a better handle on our local market dynamics.  

“In my opinion, it also boils down to accountability. When you are deciding on whether to choose a local lender or a national lender accountability is key. Accountability is a rare commodity in any business, but you can bet there won’t be much if your lender is out of town or out of state. ”

In my opinion, it also boils down to accountability. When you are deciding on whether to choose a local lender or a national lender accountability is key. Accountability is a rare commodity in any business, but you can bet there won’t be much if your lender is out of town or out of state. You are most likely going to get a very similar interest rate from a local lender as you will from a national lender and where you might see the difference is in the fees the two charge, but I assure you a national lender and especially lenders from out of state are not as accountable and if something goes wrong, the small monetary savings will quickly become less important and at that point you will gladly be willing to pay a bit more for a lender who cares and gets the job done on time.

My motto is always, use local and keep your money working in our local economy and at the same time, build a relationship that you will have and can value for years to come. Not to mention they will likely work hard for you and be accountable so you spread the word to your friends and family. My experience has been much smoother when working with local lenders vs. the national ones. Hope this helps.

Dave Kimbrough
The Kimbrough Team

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Will my neighbor's "stuff" impact my land's property value?

Dave,

I own a 20-40 acre lot, zoned agricultural, in Mesa County. There are parcels surrounding my land which have RV's, outbuildings, and various stuff that is somewhat hard to look at. Would those variables affect the value of my land?

Thank you for your professional reply,

Ronald, Area Withheld

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Ron,

Welcome to Western Colorado! One of the charming things about our area is the eclectic collection of properties that neighbor each other in the more rural areas of our valley, but one of the not so charming things about our area is the eclectic collection of properties that neighbor each other when one or more of those properties more closely resembles a junk yard or antique farm implement graveyard than an agricultural property with a residence. All kidding aside, there is a relatively high level of likelihood that it will negatively impact your property value. 

Part of what makes (and has made) Grand Junction and Western Colorado charming is the mix of not only property types and styles but also the potential mix of the socioeconomic status of our neighbors. In my opinion that mix is wonderful and unique, because the lack of socioeconomic segregation that is created by neighborhoods forces us to become neighbors and many times friends with people who may or may not be the same or live a similar financial lifestyle. As Grand Junction continues to grow, this hodgepodge aspect is becoming much less acceptable and frankly not very desirable by many. Before we get into the potential negative impact these properties may have on your home, let’s exhaust positive options to mitigate their potential impact. 

There may be things you can do to minimize the eyesore aspects of your neighbor’s properties! Maybe you can plant a row of trees or large hedge. You might be able to put up a new fence or put up your own outbuilding that will help shield some of your neighbors “stuff’. Before assuming, or letting me assume for you, that your property will be negatively impacted, work on positive solutions that may partially or completely mitigate the visible issues and even potentially increase your property's value. You might also approach your neighbors and discuss with them cleaning up their “stuff” so you no longer have to look at it. My guess is they may not even realize that it does not sit well with you and if they knew, they very well may be willing to clean it up. If that fails and you find that you have few options to mitigate their “stuff” then it is likely you will see some value erosion.

Let’s face it, for most, owning a farm or “real” agricultural property is not high on the desirability scale, however more executive and well-kept estate type settings with large homes are quite desirable and this is where the mix is met with less than open arms by many. If you have properties surrounding you that have collected RV’s, broken down cars, dilapidated outbuildings, dilapidated fences, long forgotten farm implements, etc., there is little doubt that it will negatively impact your properties value, unless you find just the right “butt for your saddle.”

“If you find a buyer for your property that intends to collect RV’s, broken down cars, dilapidated outbuildings, worn out fences and long forgotten property implement tools then they are likely not to give it another thought and in this instance you will likely not have a significant, if any, negative impact on your property value.”

If you find a buyer for your property that intends to collect RV’s, broken down cars, dilapidated outbuildings, worn out fences and long forgotten property implement tools then they are likely not to give it another thought and in this instance you will likely not have a significant, if any, negative impact on your property value. It may take longer to find that “right” person, but ultimately there lies the theory that would provide you an alternative to the negative property value impact of less than slightly neighbors.

Again, look for proactive and positive options to minimize the impact, but my guess is that if you can’t find ways to mitigate, there will be some negative impact on your properties value! I am hopeful you can find a way to work this out to your favor. Thanks for the question and best of luck.

Dave Kimbrough
The Kimbrough Team

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Tips for Selling an Occupied Rental Home

Dave,

We decided to rent out one of our houses a few years ago. Now that the market is doing well and home values are up, we want to sell. The renter that currently lives there doesn’t want to purchase the home, but also doesn’t seem very keen about moving out. We’re worried that he will make the selling process more difficult than need be. What’s your advice for selling homes with tenants?

Thanks,

Rob, Orchard Mesa

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Rob,

Great question! Selling with a renter in place can be very tricky and can provide a significant obstacle if you don’t work to meet them in the middle. You will need their cooperation if you are going to be successful at selling and get anywhere close to market value. First, you must refer to your lease contract and use that as a guide on how to deal with your tenant during the process of selling. There should be language in the contract for how the process will work with your tenant, as far as showing and selling. If you still have months left on the lease, then obviously you will have to honor the remaining time and the new owner will inherit them as a tenant until the end of their lease. If they are under a month to month lease then things get easier as long as you provide ample notice (typically 30 days) of when they need to be out if the new owner does not want to keep him/her as tenants. Regardless of the contract language or length left on their lease, tenants typically (and understandably) are not thrilled about having the house they are renting sold!

“Let’s face it, put yourself in their shoes…from a renters perspective, how is showing a home for the landlord and potentially having to move out ever something they are going to get too excited about?”

Let’s face it, put yourself in their shoes…from a renters perspective, how is showing a home for the landlord and potentially having to move out ever something they are going to get too excited about? Cooperation is NOT in their best interest and let’s be honest again…the entire showing process (allowing stranger after stranger to march through your home) is the most stressful and inconvenient part of selling any home and your tenant is the one that will have to deal with showing process. It’s hard to take even when you are motivated to sell! With that in mind, there are many tactics you can use to help ensure that your renter is cooperative with the sales process. One way we encourage tenant cooperation is by showing them respect. Really respecting a tenant and treating them as if they were the homeowner goes a long way to gaining their trust and cooperation. Do your best to work around their schedule and family time, as long as their expectations are realistic and still allow ample days and times for showings. Being grateful is also a great way to gain their cooperation. Acknowledge that the process can be a painful one and that you are appreciative of their cooperation. Empathy is a powerful tool, especially when teamed up with respect. If respect, gratitude and empathy don’t get what you are after, you can always offer them incentives to cooperate. Just like kids, tenants love incentives.

If their rent is $1500 per month, offer to lower their rent by $300-400 a month until the home closes and watch their cooperation level increase significantly. $300-$400 a month is real money and a significant amount. It’s like a free car payment! You must tie this incentive to keeping the house clean and show ready and allowing showings to occur without resistance or the deal's off. Let them know you are going to check with the listing agent each month to evaluate their cooperation so you establish some accountability, but this tactic generally works well. You can also offer moving incentives, a one month buy out of their rental contract etc. Trust me, if you offer the tenant a month’s rent in payment upon move out, that’s pretty good incentive! Don’t be afraid to get creative with your incentives to encourage their cooperation. You can offer to hire a house cleaner, yard maintenance crew, daycare 3 days a week…whatever it takes to get the cooperation needed to sell. 

The bottom line, set up a win/win and you will generally get a better outcome. If it turns out to be only you who gains, expect resistance. A win/win is always the best way to get your desired result! 

Dave Kimbrough
The Kimbrough Team

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