REAL ESTATE IN RETROGRADE

WELCOME

Hello and happy August!

Well, it looks like Mercury is in retrograde again. If you believe in your horoscope, this means that we’re headed into a cycle that can disrupt our daily lives, our relationships, and our energy levels for the next two and a half weeks.

Per scientists, Mercury in retrograde is a minor phenomenon and most suggest that our feeling any impact is pure bunk. But per an article I read in Vogue, Mercury in retrograde can lead to brain fog and stress. Personally, I’m not sure what to think, so I’ll keep working to control what I can.

What we all can help control is our topic today, and that’s keeping the momentum going. So let’s get into it!

THE REALITY OF REAL ESTATE

Chaos, Inc.

The new NAR ruling goes into effect next weekend and I feel like everyone is scrambling. While we could technically blame this on Mercury in retrograde, the more likely answer is that no agents, brokerages, or brokers quite grasp how to handle this change, as everything to come down the pike has been confusing.

I swear, no one (myself included) yet knows their own head from a hole in the ground. What I do know is I just saw an infographic saying that since the judgment came down, commissions are down half a percent and that gives me pause.

All this tells me for sure is that who buyers and sellers work with now is more critical than ever. So stay tuned and we’ll all see how this shakes out together.

But never forget exactly why and how we create value.

@glenndabaker

For the first time since 2013 NAR recorded a decline in REALTOR membership… #GlenndaBaker #RealEstate #AtlantaRealEstate #REALTOR #NAR #Re... See more

STORY TIME WITH GLENNDA

The Biggest Mistake a Seller Can Make

I’m telling y’all right now, the biggest mistake a seller can make is allowing a motivated buyer to lose their momentum. I have had this happen twice in the past month and I am just so frustrated for my buyers.

First scenario—I’m working with a retired couple from out of town. Just two of the nicest people I ever did meet. They’re moving here to be closer to their family. I found them what I thought was just the most perfect house because it ticked all their boxes and then some.

First of all, the place I showed them is in your typical 2.5 kids neighborhood, so finding a home there with a first floor primary was a bit of a needle in a haystack. However, I found that unicorn and the house was just perfect for this couple. They could walk right out to the pool from the main level and everything they need is located on the first floor, which is nice because they’re older and they have an eye toward their future. The place also has some auxiliary bedrooms on the second floor for when guests or grandkids stay over, and the stairs are really easy, so it was a great fit.

The place had been listed for 70 days already for $1.9M. Now, 70 days is a lifetime in this neighborhood, especially since the buying season for younger families with children is over, as it’s so close to the start of school.

I didn’t quite understand the comps the other agent used, because it was a bit apples to oranges, given the finishes and the lack of first floor primary suites she used when she made the determination. The comps that I’d have used were more like $1.5M. So my people made an offer at $1.7M to start the whole buying conversation. They were so in love with this place and were already mentally moving in, figuring out what would go where, so we thought this was a solid jumping-in point.

The seller’s agent said the pending comps were more like $1.79M and it appraised for $1.825, so her sellers refused to even counter because they were so offended. If you’re doing the math, the offer—their opening bid—was 11% lower than list price, but only 4% lower than comps and 5% lower than the appraisal. The other agent said, “But, Glennda, your offer is 11% off list price.” And I replied, “But your list price is fictional!”

Even though I begged them to come back to me with something, the sellers and agent were resolute. My buyers were absolutely devastated and they were so sad about this when they returned home. They really thought this was the place for them, but the seller just wouldn’t play ball.

Two whole weeks later, I saw that they had only one other showing and no offers, so now we’re at the 84 day mark, school’s about to start, and we’re heading into the pre-election slump. My buyers’ original offer had expired by this point so they couldn’t counter. So, the other agent said she could do a reverse offer for $1.825M.

But you know what happened?

My buyers had since talked themselves out of the property because they were so disappointed, saying, “Maybe this was a blessing because the kitchen was a little small.” The sellers waited so long that my buyers had turned on the listing as a way to make themselves feel better about the loss. That is a bell we cannot unring.

So we’re looking at other houses (which, of course, we will find) and that seller is back at Square One because they refused to capitalize on my buyers’ momentum.

Even worse than this example happened over the weekend. A buyer and I specifically flew down to Florida to look at a $5M property that he was going to pay cash for. He was super excited about this place and he wanted to close by August 29th so he could spend Labor Day there. His only stipulation was that if there were any issues with the inspection, that the seller would cover the first $25K, which seemed very fair. But I’m telling you, this place was so perfect that I couldn’t imagine any problems, let alone $25K-worth.

Instead of jumping on my buyer offering all cash at asking price, this seller wanted to argue, saying he didn’t want to have to cover $25K in potential repairs, even though the whole area’s heading directly into hurricane season, that flood insurance is suddenly a hot topic, and the new HOA legislation going into effect. (Plus, school starting, election, the sudden stock market correction, etc.)

This deal should have been a slam-dunk for all involved. But, the seller hemmed and hawed so much that it made my buyer suddenly start worrying about red flags he missed on the property, because why would the guy suddenly be so cagey about repairs?

Given the seller’s reaction, my buyer decided to pass.

I know it’s touch sledding out there, but I beg of you—if y’all encounter excited buyers, please, please do yourselves a favor and negotiate that deal while everyone’s still itching to deal. If the offer isn’t quite right, at least be on the field to bat it back because it’s almost impossible to bring back that lovin’ feeling once it’s gone.

GLENNDAISM

It’s More Important Than Ever

GO HOMES.COM WITH GLENNDA

Make an Entrance

This week, let’s check out my listing in Cumming, GA. I’m showing you this one because I am just wild about the level of detail in this place.

Now, Christmas is a big deal in the Baker household and even though I’m in my dream house, I cannot stop picturing how I’d deck this place out at the holidays, with everyone posing in matching holiday jammies on that magnificent staircase, and all the stockings hung with care on that gorgeous mantel. And would I place a two-story Christmas tree right smack in the middle of the entryway? I think y’all know the answer to that.