Archive for the 'Selling' Category
We Buy Houses Too
This story continues my fascination with the “We Buy Houses” signs throughout the region.
My first attempt to reach out to one of these buyers did not go as expected – it was far more successful.
I decided to call on one of the handwritten signs, though it was one that seemed fancier than some of the others, if that’s possible. It seemed more like a one-off than the type of sign that gets plastered all over the region.
My first surprise was that the buyer has an answering and messaging system – a virtual assistant really – to help route callers to the proper place. I didn’t even need to talk to a real person in order to get the information I wanted, which was perfect! Most interesting is that there was a website with information about the process and a specific property. He has even established a company to make his operation seem more legitimate, though the business address is an apartment.
The essence of this buyer’s business is that he buys homes, updates and resells them … he’s a flipper. It appears to be a small scale operation with one, or maybe two, properties under construction at once. The only property featured on his website has already been sold, though I was able to connect him to a second closed deal and a third property that is actively being renovated.
The purchases and sales that I found had been done through a real estate agent on the public market. This goes against the image I had of questionable characters roaming the streets trying to take advantage of uninformed homeowners. The first two deals even used a mortgage, though the third appears to be a cash transaction. It’s also possible that there are other deals out there too, though I would have expected to see something about them on his website. One final detail is that he seems to be buying the homes in his own name rather than the company’s name. Deal number two was bought as him personally and then transferred over to the company a month later. Why go through the trouble to set up a company and then not use it?
Taking in all the facts, this seems like a small but successful business, likely a part-time operation. It will be interesting to see how this entrepreneur evolves his business in the coming years. And, now that I know his preferred realtor, I should be able to check in on him periodically.
This is just the first step in my investigation, I plan to call a few more in the coming weeks/months to see how their business models compare. Stay tuned!
100 Years of Inflation
As part of our home’s 100 year birthday celebration, we learned that the original cost to build the structure in 1911 was $8,000. Starting with that data point, I tried to do some figurin’ to see how much that is in today’s dollars.
Doing the calculation in my head was a very bad idea. Without actually thinking about it very much, I jumped to the conclusion that the $8,000 was “like a million bucks” in today’s dollars – it just seems like so much money for that long ago. Though, full disclosure, I wasn’t alive 100 years ago, so I don’t have a good sense of how much people earned or how much everyday items cost.
It turns out that adjusting $8,000 for 100 years worth of inflation results in a present day value of less than $190,000. (The government websites only go back to 1913, so I ended up using Tom’s Inflation Calculator – the results were consistent with each other). Far, far less than my initial guess.
Although I find this interesting, and perhaps you do too, it has no impact on the current market value of the home. None what-so-ever. Really, no cost information does.
Buyers don’t care how much the house cost to build 100 years ago. They don’t care about how much that new roof, furnace, or family room addition cost either. And they still wouldn’t care even if all of these projects were done last year.
Sellers are on the receiving end of this kind of logic too. Buyers like to take the current asking price and reduce it by the full cost of the improvements they feel need to be made. If they started with the estimated value of the home once the work was complete it might be more relevant, but they usually don’t.
I just wanted to get that out there – trying to justify a bid or asking price with cost information is an uphill battle. You’re more likely to have success with recent comparable sales and homes that are still available for sale. But even then it can still be a struggle to get buyers and sellers to agree on a price.
We Buy Houses
I see signs all over town advertising for people, or companies, that are willing to buy homes.
There is a great diversity in the type of signs. The two examples here highlight some key decisions that go into creating the signs:
1. Do I get it printed, or do I write it by hand?
2. Do I spring for a toll-free number, or stick with a local number?
3. Do I mention cash?
Most signs are stapled well above reach on telephone poles, as both of these are, though there are other types of signs out there as well. Take a look the next time you’re out and about – they’re hard to miss if you’re looking for them!
80 Cone Street, Hartford’s West End
Mature landscaping frames this classic West End colonial located near Elizabeth Park. The home has 5 bedrooms and 2.5 baths over 2,887 square feet.
The enclosed front porch welcomes your guests and provides a nice space for relaxing. A beautiful entryway with original leaded glass leads to an open foyer and the formal living room with fireplace. The living room opens to a family room and dining room, each with pocket doors and canvas ceilings. The updated kitchen features an eat-in island with sink, plenty of cabinets for storage, stainless steel appliances and a butler’s pantry. The first floor also offers a remodeled half bathroom, mudroom and storage space.
Upstairs on the second floor you’ll find four nicely sized bedrooms and a renovated full bathroom.
The third floor has another bedroom, full bath with clawfoot tub and unfinished storage space.
Outside there is a private patio and 2-car garage.
Mechanical updates include a new gas furnace and hot water heater and newer roof.
80 Cone Street is offered at $350,000. If you’d like to see this home, please have your agent arrange a showing or call me at 860-655-2125 to schedule a visit. More details and a photo tour are available.
Real Estate Agent or Therapist?
The other day a client was sharing something personal with me and said “Gosh, I’m sorry, I’m acting like you’re my therapist.”
I hear this often. My job puts me in the position where people are sharing personal information with me. A lot. They’re asking for advice based on difficult decisions that they may be making. I hear about very happy and sad situations all of the time. A marriage. A new child. A better job. An impending divorce. Family sickness. Death of a loved one. Financial distress.
These are all reasons why people move. Depending on a particular situation, different advice needs to be given. This all requires listening. And empathy. Hence why folks often vocalize that they feel like they’re talking to a therapist when I have conversations with them.
I don’t really mind this. I left my job in corporate America because I felt that I wasn’t making a difference. In my role now I help people solve problems that they’re having. Sometimes their situations are happy, sometimes not. But I’m assisting them with moving on in most cases. I appreciate that my clients trust me enough to let me into their worlds. And I respect them by keeping our conversations confidential.
I guess the point is that you want to have an agent you feel you can trust with personal information, because there’s a good chance something sensitive will be shared along the way. And better yet, you want an agent who is trustworthy and actually cares about your situation.