Friday, April 6, 2012
Moving. We are. Are you? About movers...
We have heard an amazing array of mover stories over the years. Some good. Many not. Our own advice has always been to get in-house estimates, never assume the estimate is the gospel with respect to what you will actually end up paying, and try very hard to determine what will REALLY happen if (when) there is a problem.
A caveat: There are ads in the right hand column of this blog. Since this post will have "movers" etc as tags/labels as well as other keywords, I'll bet you a buck that google drops an ad or two for "acme movers" et al in there. We don't know who will be advertised and we have nothing to do with it. Do not assume the ad is in any way a positive or negative endorsement from us. Now, back to our post...
There are any number of legitimate reasons for variation from estimate to actual (you decide you will move the piano after all, or find a bunch of "little stuff" you forgot about, etc). However, there are any number of ways to lowball an estimate in order to get the deal, too. Some classics include simply underestimating weight or the number and type of boxes required (where these are part of an estimate).
A reference is extremely important, but there is rarely a guarantee that you will get the same estimator and crew as the positive-experience referring person.
A referral that may be even more valuable than "they did a great job" is one about how a company handled a damage claim. A good mover will almost always do less damage than you would if you did it yourself (be honest!). The key is how the company handles the problems.
The article below (after the "jump" or "read more" link) came to us from OREA (Ontario Real Estate Association) and we thought it good enough to pass on. The comment about not taking the lowest estimate may seem self-serving. Maybe it it, but it is also very true.
Do you have a great mover? Or a tip? Or a horror story that you can laugh at now (don't want you to relive the ones that still make you curl up in the corner and cry).
Wednesday, March 21, 2012
We're Moving! (part 13) SOLD!
So, here we are. It's Wednesday evening and we have three offers. Enough competition that we should see proper market value, but not one of the feeding frenzies you read about in the papers. With three, especially since one is being delivered and not presented, we can do it at the house where everyone is likely more comfortable. One or two more and I probably would have moved it to a meeting room at our office.
As it turns out, a health issue means only one offer is actually being "presented". This is unusual, even though more and more offers are just faxed or otherwise delivered. There are special circumstances -- for example, an estate sale with the lawyer as executor -- where just sending in the offers makes sense. There are also lots of not-so-good reasons for this happening, ranging from lazy to devious. But most agents in most cases prefer to come to the presentation with their offer. They can give some insight into their clients, answer questions and get a better sense of the sellers' situation and preferences.
We encourage our sellers to make the "rules" simple and clear and in writing. By stating up front that we will take the best acceptable offer if it is at least $5,000 (equivalent) better than the next offer, we make it clear that we are not going to "game" anyone. Our reputation -- and putting it in writing -- means that agents can more often bring their buyers' best offer right away.
The result should be the best chance for the buyer, the best price for the seller and less stress and running around (and theatrics) for all concerned.
In this case, our sellers -- us -- were easy sells for this approach.
So, if you haven't been through it, here's how this goes.
Assuming everybody shows up on time, the first agent comes in ... introductions ... can I get you some water, etc. ... blah, blah ... and hands the offer to the listing agent.
When that listing agent is one of us, we have already explained the process to our clients. Said process begins by reading through the offer silently, making notes if one wishes. Most importantly, do not either start whooping and dancing ... or make gagging sounds and insult the parentage of the bidders.
With the first offer, we will go through it pretty thoroughly -- even the standard clauses that will be in every offer.
We then find a little out about the potential buyers, clarify any issues, say thanks and send the agent away -- maybe to their car, maybe to the basement, not usually to eternal damnation.
[By the way, sitting in your car on a Sunday evening in mid-winter, waiting for the phone call saying you just "lost" may be the most common setting for agents questioning their career choices.]
With the buyers' agent gone, we can discuss the merits and issues of the offer.
Rinse and repeat. It gets faster with subsequent offers as the standard stuff need not be reviewed and explained in the same detail.
Then it's done. All the agents are stashed away and it's time for a decision. This can be obvious, or obvious with a question (can you move your closing date a week later?). Or it can be so close that the written rules mean you have to ask those poor agents to go back and see if their clients wish to improve -- everybody's evening gets a lot longer.
Or it can just be tough. The classic would be one high offer that has a loose condition (say, home inspection) and a firm offer for less money. How much is "firm" worth? (The answer: "a lot").
In our case, it was pretty straight forward. All three offers were firm and in the range we expected. One was higher. A lovely couple (we met at the open house and a later showing) will be taking over our home and garden on June 14.
An amazing number of little details, signatures, initials and phone calls later, we had that odd feeling that comes with selling your home of 21 years, albeit successfully. We, and the buyers' agent also had that exhilaration of a successful deal.
Two other agents had that unpleasant, but not uncommon these days, of not getting the deal and not getting the home that their clients wanted enough to bid on.
Saddest, are the two families who probably spent a lot of time stressing over what to offer for a house they must have liked and wanted and didn't get it. In this market, those couples may "lose" several times before they get their home. It is tougher than almost anyone can understand until they go through it. A good trusted, empathetic supportive, agent is very important here.
One more phone call to Florida: "Honey, I sold the house", a celebratory dram, and off to bed.
As I begin to drift off, my eyes pop open as I think: "Wait a minute. Where the heck are we going to live?"
As it turns out, a health issue means only one offer is actually being "presented". This is unusual, even though more and more offers are just faxed or otherwise delivered. There are special circumstances -- for example, an estate sale with the lawyer as executor -- where just sending in the offers makes sense. There are also lots of not-so-good reasons for this happening, ranging from lazy to devious. But most agents in most cases prefer to come to the presentation with their offer. They can give some insight into their clients, answer questions and get a better sense of the sellers' situation and preferences.
We encourage our sellers to make the "rules" simple and clear and in writing. By stating up front that we will take the best acceptable offer if it is at least $5,000 (equivalent) better than the next offer, we make it clear that we are not going to "game" anyone. Our reputation -- and putting it in writing -- means that agents can more often bring their buyers' best offer right away.
The result should be the best chance for the buyer, the best price for the seller and less stress and running around (and theatrics) for all concerned.
In this case, our sellers -- us -- were easy sells for this approach.
So, if you haven't been through it, here's how this goes.
Assuming everybody shows up on time, the first agent comes in ... introductions ... can I get you some water, etc. ... blah, blah ... and hands the offer to the listing agent.
When that listing agent is one of us, we have already explained the process to our clients. Said process begins by reading through the offer silently, making notes if one wishes. Most importantly, do not either start whooping and dancing ... or make gagging sounds and insult the parentage of the bidders.
With the first offer, we will go through it pretty thoroughly -- even the standard clauses that will be in every offer.
We then find a little out about the potential buyers, clarify any issues, say thanks and send the agent away -- maybe to their car, maybe to the basement, not usually to eternal damnation.
[By the way, sitting in your car on a Sunday evening in mid-winter, waiting for the phone call saying you just "lost" may be the most common setting for agents questioning their career choices.]
With the buyers' agent gone, we can discuss the merits and issues of the offer.
Rinse and repeat. It gets faster with subsequent offers as the standard stuff need not be reviewed and explained in the same detail.
Then it's done. All the agents are stashed away and it's time for a decision. This can be obvious, or obvious with a question (can you move your closing date a week later?). Or it can be so close that the written rules mean you have to ask those poor agents to go back and see if their clients wish to improve -- everybody's evening gets a lot longer.
Or it can just be tough. The classic would be one high offer that has a loose condition (say, home inspection) and a firm offer for less money. How much is "firm" worth? (The answer: "a lot").
An amazing number of little details, signatures, initials and phone calls later, we had that odd feeling that comes with selling your home of 21 years, albeit successfully. We, and the buyers' agent also had that exhilaration of a successful deal.
Two other agents had that unpleasant, but not uncommon these days, of not getting the deal and not getting the home that their clients wanted enough to bid on.
Saddest, are the two families who probably spent a lot of time stressing over what to offer for a house they must have liked and wanted and didn't get it. In this market, those couples may "lose" several times before they get their home. It is tougher than almost anyone can understand until they go through it. A good trusted, empathetic supportive, agent is very important here.
One more phone call to Florida: "Honey, I sold the house", a celebratory dram, and off to bed.
As I begin to drift off, my eyes pop open as I think: "Wait a minute. Where the heck are we going to live?"
Monday, March 19, 2012
We're Moving! (part 12) We're listed...Less work, More stress
This post should close the gap between blog-writing and actual event by quite a bit.
Once the house is listed, the work level can actually drop quite a bit. After all, the house is so freaking staged you CAN'T do anything in it even if you were allowed to. To the extent that you are getting good showing, you can't even be IN the house.
This may not apply if you have 3 rugrats, a dog, two cats and a slob for a spouse. In our case it's a bit hairy because my office is/was at home. So yes, that was probably me and not some terrorist hacker sitting in a van with a laptop with some weird antenna thing attached to it.
Also, even if the physical work slows down, your mind gets pretty busy... Why isn't the phone ringing? ... What if we priced wrong? ... Please don't let it snow ... Why did the dishwasher just make that noise ... What if nobody comes? ... Why are we doing this? ... What if we can't find a place to live?
By the way, we are holding off offers until Wed. evening. No doubt, holding off offers is designed to allow for a bidding war. But in a hot market where things sell quickly, it also allows buyers to find out about the property, see it, and make a decision and plans before somebody jumps in and nabs it.
Friday
Alex from videolistings.ca shows up right on time as Gord is returning from delivering the paperwork to the office and does his usual efficient job. We will find out tonight that it was also his usual gorgeous job. He beautifully incorporated our seasonal garden pics and some local scenery into the house video. (I mentioned it before, but the old place really looks good: www.videolistings.ca/video/35anndale)
As he walks out the door, the agents start appearing for the Agent Open House. While everything else we do helps, the major marketing tool is the tens of thousands of agents of the Toronto Real Estate Board who see the listing. If you can make it convenient for them to physically see the house, better still. And that is the Agent Open House.
The feedback is good, though we pick up a niggly little theme: "Great house, you'll do well, a little small for my people". We believed we had factored this in. The house is about three times the size that a good friend grew up in with his 5 siblings. But that was then. Young families looking for their second home in a perfect location are thinking dream home even if they are a little short of dream budget. We'll get back to this little issue later.
We have showings Friday afternoon and evening. Good start.
Saturday and Sunday
Public Open Houses both days. Not a zoo, but busy and steady. More than the usual number of clients WITH their agents -- as opposed to agents SENDING clients. That should be positive.
Once the house is listed, the work level can actually drop quite a bit. After all, the house is so freaking staged you CAN'T do anything in it even if you were allowed to. To the extent that you are getting good showing, you can't even be IN the house.
This may not apply if you have 3 rugrats, a dog, two cats and a slob for a spouse. In our case it's a bit hairy because my office is/was at home. So yes, that was probably me and not some terrorist hacker sitting in a van with a laptop with some weird antenna thing attached to it.
Also, even if the physical work slows down, your mind gets pretty busy... Why isn't the phone ringing? ... What if we priced wrong? ... Please don't let it snow ... Why did the dishwasher just make that noise ... What if nobody comes? ... Why are we doing this? ... What if we can't find a place to live?
By the way, we are holding off offers until Wed. evening. No doubt, holding off offers is designed to allow for a bidding war. But in a hot market where things sell quickly, it also allows buyers to find out about the property, see it, and make a decision and plans before somebody jumps in and nabs it.
Friday
Alex from videolistings.ca shows up right on time as Gord is returning from delivering the paperwork to the office and does his usual efficient job. We will find out tonight that it was also his usual gorgeous job. He beautifully incorporated our seasonal garden pics and some local scenery into the house video. (I mentioned it before, but the old place really looks good: www.videolistings.ca/video/35anndale)
As he walks out the door, the agents start appearing for the Agent Open House. While everything else we do helps, the major marketing tool is the tens of thousands of agents of the Toronto Real Estate Board who see the listing. If you can make it convenient for them to physically see the house, better still. And that is the Agent Open House.
The feedback is good, though we pick up a niggly little theme: "Great house, you'll do well, a little small for my people". We believed we had factored this in. The house is about three times the size that a good friend grew up in with his 5 siblings. But that was then. Young families looking for their second home in a perfect location are thinking dream home even if they are a little short of dream budget. We'll get back to this little issue later.
We have showings Friday afternoon and evening. Good start.
Saturday and Sunday
Friday, March 16, 2012
We're Moving! (part 11) Gentlemen...Start Your Engines
Part 9 left us with less than 24 hours to get everything finished and ready and the listing up on the TREB site. And Lee packing for a week in Florida.
We always tell clients how we need a few days lead time, once the house is 99% ready in order to get all the marketing materials designed, written, printed etc. The clients always understand and then reality happens and we are taking pictures while they paint and Lee is up at midnight writing a listing while Gord stays up until after 1am working on the feature sheet, etc.
And now we've done it to ourselves.
But we get it done.
Listing hits the computer Thursday afternoon, with decent photos by Gord.
This means it should be uploaded to realtor.ca by Friday, Saturday latest.
Sign ordered.
Just Listed postcards get designed and uploaded to the printer Thursday afternoon.
The feature sheet, window sheet, open house datasheets, etc get done in the wee hours Thursday night.
VideoTour and agent open house are scheduled for Friday morning. (www.videolistings.ca/video/35anndale)
Public Open Houses scheduled/uploaded to various sites for Saturday and Sunday.
Custom website designed and published Friday. (not our best, but better than most IMHO ... www.LeadingTheWayHome.com/anndale)
Sign rider prepared, printed laminated (rider has a QR code and the website address)
Janine brings in her accents to complete the staging ... last load to the locker ...
etc.
Make that 3am. ... Bed is already made, so I sleep on the couch.
We always tell clients how we need a few days lead time, once the house is 99% ready in order to get all the marketing materials designed, written, printed etc. The clients always understand and then reality happens and we are taking pictures while they paint and Lee is up at midnight writing a listing while Gord stays up until after 1am working on the feature sheet, etc.
And now we've done it to ourselves.
But we get it done.
Listing hits the computer Thursday afternoon, with decent photos by Gord.
This means it should be uploaded to realtor.ca by Friday, Saturday latest.
Sign ordered.
Just Listed postcards get designed and uploaded to the printer Thursday afternoon.
The feature sheet, window sheet, open house datasheets, etc get done in the wee hours Thursday night.
VideoTour and agent open house are scheduled for Friday morning. (www.videolistings.ca/video/35anndale)Public Open Houses scheduled/uploaded to various sites for Saturday and Sunday.
Custom website designed and published Friday. (not our best, but better than most IMHO ... www.LeadingTheWayHome.com/anndale)
Sign rider prepared, printed laminated (rider has a QR code and the website address)
Janine brings in her accents to complete the staging ... last load to the locker ...
etc.
Make that 3am. ... Bed is already made, so I sleep on the couch.
Thursday, March 15, 2012
We're Moving! (part 10) You Want How Much for That Dump?
Given that we are going to list this thing in the next day or so and people generally like to know how much they should write the cheque for, perhaps we should settle on a price.
Given, further, that it's our own house and some bias could sneak in, we hauled in three of our trusted local colleagues for a group think and sanity check on our best efforts at market evaluation.
Their estimates landed pretty much on top of ours. Market value homed in on a range from something over $850,000 to a about $885. One had us over $900k for a while and one had us initially quite a bit lower, but came to the pack after a short discussion.
Two things. First, note that even five really good experienced agents, in a non-competitive environment, giving their best shots produced a range of almost $40,000. There is complexity, art and gut involved in the process as well as the system and science.
Second, market value is what you should expect to get once the dust has settled. List price is a tactical decision to help you get there.
Right now, we remain in a hot sellers' market. Some of what follows would be dramatically different if that were not the case.
A critical rule is "Don't price too high or you will be punished".
For whatever deep psychological reasons, buyers are resistant to offer lower prices on over-priced listings. They just go elsewhere. When they go elsewhere, the listing doesn't sell; when the listing doesn't sell, it gets stale; stale listings get forgotten...quickly. You don't want to be quickly forgotten. Don't overprice.
When this happens you move quickly from dreaming of insane bidding wars to price reductions and praying for an offer.
So that seemingly clever approach: "Let's try it at $xxx and if it doesn't go we can always reduce it later."?
Nice thought. Doesn't work. Don't do it. You typically end up with less money and more time taking 45 minutes to make the bed and trying to find where you hid your toothbrush and toaster before the last showing.
Given, further, that it's our own house and some bias could sneak in, we hauled in three of our trusted local colleagues for a group think and sanity check on our best efforts at market evaluation.
Their estimates landed pretty much on top of ours. Market value homed in on a range from something over $850,000 to a about $885. One had us over $900k for a while and one had us initially quite a bit lower, but came to the pack after a short discussion.
Two things. First, note that even five really good experienced agents, in a non-competitive environment, giving their best shots produced a range of almost $40,000. There is complexity, art and gut involved in the process as well as the system and science.
Second, market value is what you should expect to get once the dust has settled. List price is a tactical decision to help you get there.
Right now, we remain in a hot sellers' market. Some of what follows would be dramatically different if that were not the case.
A critical rule is "Don't price too high or you will be punished".
For whatever deep psychological reasons, buyers are resistant to offer lower prices on over-priced listings. They just go elsewhere. When they go elsewhere, the listing doesn't sell; when the listing doesn't sell, it gets stale; stale listings get forgotten...quickly. You don't want to be quickly forgotten. Don't overprice.
When this happens you move quickly from dreaming of insane bidding wars to price reductions and praying for an offer.
So that seemingly clever approach: "Let's try it at $xxx and if it doesn't go we can always reduce it later."?
Nice thought. Doesn't work. Don't do it. You typically end up with less money and more time taking 45 minutes to make the bed and trying to find where you hid your toothbrush and toaster before the last showing.
Wednesday, March 14, 2012
We're Moving! (part 5A) Oh yeah, the Home Inspection
oops, forgot to have a little chat about the Home Inspection.
In this market, many sellers -- e.g. us -- would like to see and early "firm" offer.
Firm means without conditions.
A typical offer in a "normal" market will have one or both of these conditions: Financing and Inspection.
Both are what we call "loopholes you can drive a truck through".
We'll leave financing for now, but the issues aree very similar.
The standard wording of the Inspection clause gives the buyer a few days to arrange and conduct a home inspection with a licensed inspector and to receive a report to their satisfaction. The intent of the condition is to identify significant maintenance and structural issues that the buyers were not aware of.
Unfortunately, if the "structural issue" is waking up in the middle of the night screaming "OMG ... What have we done?!?!?!", the clause can generally be used to get out of the deal.
In this market, many sellers -- e.g. us -- would like to see and early "firm" offer.
Firm means without conditions.
A typical offer in a "normal" market will have one or both of these conditions: Financing and Inspection.
Both are what we call "loopholes you can drive a truck through".
We'll leave financing for now, but the issues aree very similar.
The standard wording of the Inspection clause gives the buyer a few days to arrange and conduct a home inspection with a licensed inspector and to receive a report to their satisfaction. The intent of the condition is to identify significant maintenance and structural issues that the buyers were not aware of.
Unfortunately, if the "structural issue" is waking up in the middle of the night screaming "OMG ... What have we done?!?!?!", the clause can generally be used to get out of the deal.
We're Moving! (part 9) Timing is Everything
We are professionals.
We understand the market cycles.
Clarification: We know enough and are experienced enough to know what we don't know. Which means we know that we don't know what is going to happen to the market in the next few years. We think it's just going to stabilize, maybe soften a bit, maybe not. But the guys who think it's going to keep chugging may be right. More worrisome, the guys who see a significant correction may be right too.
How Spring markets and Fall markets and the things in between work, that we know.
Location, location, location ... and timing.
Any house can be sold in any market. But if you want the best price in the shortest time ... that is a different story.
The market in December is near-dead. Why? Because we are at our condo in Florida. Wait. Lee is telling me that we are in Florida because the market is dead in December. Learn something every day.
July and August aren't so good either. Why? Because the weather is good for golf and the cottage. Wait. Lee is yelling at me again.
The so-called "Spring Market" doesn't exactly start in what a Canadian would consider Spring. The actual closing dates of spring-market sales are Springier than the days the deals are agreed to. In the recent hot market, Spring starts in January, and picks up speed in February and March. Somewhere in June, the world decides it's summer and things slow down ... a bit ... usually.
As mentioned in (part 1), the Buyers show up first because the Sellers who decide at Christmas to sell, need some time to get ready (see parts 1 through 8!). We know/knew all this but we still decided over Christmas and needed time to get ready.
One more thing about the Spring Market ... Spring Break is pretty dead. But we still have a few weeks until ... What? Spring Break starts in 10 days !!!!!!! Oh sh**. Gotta go. We have to get this listed tomorrow, materials, agent open house, public open houses, signs, website, oh sh**, oh sh** ... sorry, gotta go ... LEEEEEEEEEEEEEEE !
[Lee doesn't answer. She can't hear me. She's upstairs packing because she leaves for a week in Florida ... tonight! Oh dear, oh dear, oh dear]
We understand the market cycles.
Clarification: We know enough and are experienced enough to know what we don't know. Which means we know that we don't know what is going to happen to the market in the next few years. We think it's just going to stabilize, maybe soften a bit, maybe not. But the guys who think it's going to keep chugging may be right. More worrisome, the guys who see a significant correction may be right too.
How Spring markets and Fall markets and the things in between work, that we know.
Location, location, location ... and timing.
Any house can be sold in any market. But if you want the best price in the shortest time ... that is a different story.
The market in December is near-dead. Why? Because we are at our condo in Florida. Wait. Lee is telling me that we are in Florida because the market is dead in December. Learn something every day.
July and August aren't so good either. Why? Because the weather is good for golf and the cottage. Wait. Lee is yelling at me again.
The so-called "Spring Market" doesn't exactly start in what a Canadian would consider Spring. The actual closing dates of spring-market sales are Springier than the days the deals are agreed to. In the recent hot market, Spring starts in January, and picks up speed in February and March. Somewhere in June, the world decides it's summer and things slow down ... a bit ... usually.
As mentioned in (part 1), the Buyers show up first because the Sellers who decide at Christmas to sell, need some time to get ready (see parts 1 through 8!). We know/knew all this but we still decided over Christmas and needed time to get ready.
One more thing about the Spring Market ... Spring Break is pretty dead. But we still have a few weeks until ... What? Spring Break starts in 10 days !!!!!!! Oh sh**. Gotta go. We have to get this listed tomorrow, materials, agent open house, public open houses, signs, website, oh sh**, oh sh** ... sorry, gotta go ... LEEEEEEEEEEEEEEE !
[Lee doesn't answer. She can't hear me. She's upstairs packing because she leaves for a week in Florida ... tonight! Oh dear, oh dear, oh dear]
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