Real Estate and Millennials

I just read an article that says it’s hard to get ‘Millennials’ into the DIY stores these days, but hope springs eternal as the older ones in the cohort are reaching the median age for home buying. That’s a mouthful. It’s true that they are aging like the rest of us, and it gives me something else to watch swirl around the drain as the marketing folks miss the mark again.

Millennials are buying new homes much of the time, not old homes that need work, and their DIY days are way ahead of them. I’ve watched business after business change their paradigm to cater to Millennials and fail miserably at it. Why? They don’t have a clue. They read the articles that say Millennials are at shopping age OMG! Well heads up people. Millennials don’t shop. They save, they pay student loan debt and they are not baby boomers who live beyond their means.

The impending focus by the big box DIY stores toward Millennials is just another example of how people get on the cart path, so to speak, trying to change things to satisfy the media hype, rather than paying attention to their clientele. Look around you in the DIY stores. There are no DJs or Wifi boutique areas. It’s a big old tool and garden shop. It smells like plywood and there’s always an aisle full of guys on their knees searching through the bin for that perfect screw or bolt. Which still makes me go hmmmm. And I don’t see any Millennials! Not one! Could you envision one of them being interested in the LEAST about that perfect bolt? Not unless you hide a cell phone in the bin as a prize.

It would benefit these businesses to look at JC Penney, for example, who tried to change everything to cater to the young people. Look at their stock price real quickly. I’ll wait. See? Disaster. When JC Penney shut out their foundation clientele you could hear the toilet flushing their income stream. It’s the older generation who are the bread and butter, the ones who made these stores ‘big box’ to start with. They can change things around to be ready for Millennials to arrive, and they can listen to crickets chirping…you know like JC Penney did.

For DIY stores, it’s a bad idea to negate the needs of the foundational clientele, because they are older folks (and I mean over thirty) who have kids who need a nice yard in which to play, kids who make you need to paint, grandkids who break things and flush things that shouldn’t be flushed. And Millennials don’t have kids or are just getting started and they don’t need yards. But all of that aside, the Millennials are not shoppers. Not yet. Electronics? Yes. But that’s about it for now.

They are not ready for big box DIY. They couldn’t care less about planting a flower bed and if they do, chances are it will be neglected and die because…they have other things to do! Fun things! They go to their friends’ weddings, or their wedding. They go clubbing, they go biking and hiking, they date. Or they get ready to date, or they start a family. It’s that time of their lives. DIY and flower beds are way out there on the radar, if at all.

Some of my all time favorite clients are Millennials. They exhibit true partnership in choosing a home and defining a price range. They never want to max out their purchase power; rather, they stay conservative and realize that they also want to continue to play, or think about starting a family. They don’t need a palace to start with. Don’t get me wrong, they want a nice home, but they are smart about it. They plan to HIRE people to fix things because they are on their computers and iPads and iPhones…or Samsung Galaxies. Millennials budget in repair people! They do not plan to be one.

Oh I know they WILL be one, but they don’t know that yet.

Millennials are tech savvy, not circular saw savvy. They are VERY okay with electronic interaction, including documentation…which is my absolute preference…and they are fun. They also have a true partnership. They think about things together, each has input, and I swear, one person NEVER makes the decision without looking at the other and saying, “What do you think?” And…you might find a Millennial doing some DIY but it’s usually because his father is helping him and Dad is the one shopping for plywood. Young son has researched the issue online so he knows what’s going on, but it’s DAD who is doing the work. Trust me.

On the flip side: There are some Millennials who buy fixer-uppers, but its to save money. And when something breaks, they freak out. They don’t run to the DIY center; they call Dad or somebody they know “who does this stuff”…usually NOT a Millennial. True! Usually a parent or older friend with kids and a big truck and lots of bills who does this work to make extra money…not a Millennial paradigm at all.

And another thing: Better to start catering to women in these places because the Millennial women are strong and smart and engaged. They will be one half of all buying decisions about those nuts and bolts when the time comes. That’s the cohort behavior. A great idea would be to look at how many women are already shopping there and cater to them. Right now. The Millennials will be there in 15 years but if you look around, you will see a lot of women in these places right now…but you won’t see them at the bolt bin. To us a bolt is a bolt.

I know, men think all casserole dishes are the same too.

MARKET STRATEGY FOR THE TRIANGLE

If I said it’s a crazy market would you think I’m repeating myself? Well, it’s a crazy market. There’s a housing shortage folks, which makes it the strongest seller market I have experienced. For the first time in my experience, all of my buyer clients (and one seller) are BUILDING their next home. That’s because…duh…there’s as housing shortage, and people can’t find a home they want to buy! If they find one, there are five offers on the table already! ALERT! TIME TO LIST IF YOU ARE THINKING OF SELLING!! I’ve said that so much I’m out of breath. Again, you can make the MOST on the sale of your home now, while there are people clamoring for a great home to buy and who don’t want to wait six months to build!

Remember when I said I couldn’t wait until the pendulum swung back to center? When I was tired of my sellers getting the pants beaten off of them? Well, I’m glad alright. Sellers are now in control. Like I said, the universe WILL balance. Never fails.

But like always, there’s a “but”.

I find that many real estate agents negate the power of supply-and-demand when pricing homes to list. For example…one-level living is the hottest thing going right now, except for senior living communities…which are also one-level living. So if you have a ranch style home, you are in the proverbial cat-bird seat. Now that only applies if you home is marketable. I’ll explain later.

Back to pricing: Yes, look at the price range of homes in your zip code and focus on your comps. Then search for ranch style homes in the MLS AREA, and see how many ranches are out there. If you find ONE or NONE? Instant benefit to you, Seller. You may now price at the high end of the range and expect to get it. I recently had an agent lambast me in her feedback telling me that my listing was priced TWENTY THOUSAND too high. Well, we sold that house for the price I set. Booyah! Pricing is my strong suit folks. I get it done. If she had listed the house, well, not a happy face on that one. And it would have hurt the market for the community too.

When you meet with me, I will ask you this, “What is your selling goal?” Now that might sound stupid, but bear with me. If your goal is to get rid of the house FAST, that initiates a different STRATEGY for pricing your home. In other words, we might aim a bit lower in price, or come up with some enticing concessions. But if your goal is to get every last penny the market will allow for your property, well that’s another STRATEGY, and its my favorite. That means we price you at the high end of your range, but we expect to MAYBE take a bit longer to sell. I don’t know about you, but I’d wait two or three more weeks to net 5 grand. If you are not in a rush, relax and focus on your bottom line getting BETTER.

If your agent doesn’t talk strategy with you…ask why! There is more to pricing your home than pulling up some comps and taking an average! Supply and demand MUST be considered! If you have the only ranch style home with an acre or more lot in the whole area? You just hit the jackpot on pricing; I don’t care what the other homes went for.

Understand that pricing your home is a many-faceted operation that takes time, it takes knowledge of the greater market, your LOCAL market…which sometimes means your exact community…and it takes an understanding of what you, the seller, want to achieve.

My goal in any listing situation is to get you, the seller, every penny I can get for you on pricing. But if you just need to move on, we can change that strategy. It’s a team effort and your agent MUST know your needs, not just how to average the sale price of three properties sold in the last three months.

Now, back to having your home “marketable”…People sometimes hate to hear this, but here is the cold, hard truth. If you want TOP DOLLAR for your home, it MUST be in top dollar CONDITION. That means you have to roll up your sleeves and do some cleaning and re-arrange or maybe even remove some pieces of furniture. Remember we look at houses ALL THE TIME. We know what sells and what doesn’t. You HAVE TO DECLUTTER.

Buyers are buying space, not your decor. Don’t fault the professional real estate agent when she tells you what you have to do to get top dollar. Is your decor worth ten thousand dollars to your bottom line? I’ve seen people say yes to that time after time! Amazing! I don’t have that kind of money to spare, how about you? If you do, don’t worry about making your home “marketable”.

So…remember that if you want top dollar, the house must be WORTHY of it. If you are not willing to put in the sweat equity to get top dollar, do NOT blame your real estate agent! Instead, look in the mirror. Remember that selling your home is a team effort and you…let me repeat…YOU are one half of the team. So get involved, know your strategy, and get that home spiffed up to garner the best price! If I’m your agent, I’m going to work very closely with you to get you that price.

Let me just add one more thing: Don’t start getting antsy. If you have chosen a savvy real estate agent who has clearly understood your needs and laid out a great pricing strategy, listen to her and settle down. Selling a home is nerve wracking I know, but you will shorten your life by pacing around being nervous. Relax and let the strategy work. You can count your money and your blessings later, trust me. And if you can’t trust your agent, you’ve got the wrong agent. Just sayin’.

Are You Sitting On a Goldmine?

The universe balances; what goes up must come down; if you don’t like the way things are, wait a minute for the change. Same is true for real estate. Remember when it was a strong buyers’ market, such that sellers had to jump through multiple hoops just to have a CHANCE to sell? Not anymore.

It is now a strong seller market, particularly if you own a one-level home with half an acre or more. In Wake county and surrounding areas, it’s very hard to find a ranch-style home with a big yard. If you can find one, it’s expensive! So chances are, if you are the owner of a property like I just described, your property value is higher than you think!

Add to that the fact that interest rates are still low AND lenders have loosened the process to make it possible to get a loan now, even with no money down, and you, homeowner, have a chance to capitalize on your investment in a big way. If you are ready to up-size or downsize, and you own a ranch style home with some land, think about listing now. You might be surprised what your home is worth…so don’t underprice it if you list. Supply and demand DO make a difference. Hire a realtor who understands this concept.

Email me and let’s talk about your property. I’d love to meet you and I’d love to list your house.

Recent Hot Market Effects…

Hello again! I hope your life is going well for you and that you are finding time to do things which bring you joy.

As you know, I am a real estate agent, and somewhere along the recent past I made a comment about what to be aware of in the coming months, with regard to the crazy real estate market. Well, some of the things I feared are showing up, just as I predicted. For example, heightened emotions due to multiple offers are definitely in play. Emotion is not a great idea in a business transaction. Hard to eliminate, to be sure, but never should emotion lead the way. I cautioned real estate agents to advise their clients well in that regard, to prepare them for the inevitability of multiple offers and even offers above list price.

I tell my clients to know their limits, discuss them with one another, and be prepared to walk away from an overheated offer situation. They know before we get in the car, what they are facing and how they will probably react.

It’s funny how people might be ambivalent about a particular home until they know someone else is interested. If you, as an agent, see that phenomenon, it’s up to you to be the good advisor and make sure your client hasn’t gotten caught up in the competition, that they truly want the house.

And let me also add this: real estate agents are not immune to getting caught up in emotions. It’s your job to guide, not lose control.

The other issue I cautioned about was homes not appraising for the elevated offer prices. And now that’s also happening. Listen, it is up to the realtor to know the market and know when an offer just won’t fly when it comes to the lending part of the equation. Yes, it feels good to have your offer accepted over the others, but you had better know what to do and how to explain to your excited clients what happened, when the appraisal comes in low and the deal falls apart. And if you get crazy with the offer price, it will.

Of course sellers want to get every penny they can from the sale of their house…and they should… but listing agents, you need to make sure they understand the implications of an above-list-price offer if it falls through at appraisal. In other words, it’s not just buyers who need to be prepared.

Okay, here’s another issue. EVERYBODY is busy. So inspections take more time, repairs take more time, and underwriters take more time. If your realtor tells you he can sell your house in 3 weeks and a mortgage is involved, or repairs are involved? Fire him. Any good agent knows that service providers are no longer sitting around waiting for the phone to ring. They are busy and your request will be put into their queue. DON’T RUSH THE TRANSACTION. Nobody benefits from that.

This market is going to be hot for a while; it takes a while for the pendulum to swing. Knowledge is power. Know what to expect and plan ahead.

Shrinking Inventory in the Real Estate World

The Perfect Storm is looming. Interest rates are creeping up; housing inventory is shrinking; people are rushing to buy, people who were on the fence for some time. It’s turning into a seller market, for these reasons and one other one that’s HUGE. Multiple offers are commonplace. Great for sellers. Not good for buyers who are used to insisting on paint color being perfect before they even buy, carpet being new in a ten year old house, the right smell, the right temperature. Sellers, celebrate. Buyers, take a deep breath. The world we knew a year ago has flipped.

When sellers have multiple offers on a home you really love, suddenly their repair budget shrinks or yes, even disappears altogether. Some offers are high with ZERO concessions. Suddenly that decor isn’t so bad after all, suddenly sellers are smack dab in the middle of the driver’s seat. And folks, as inventory continues to go away, it’s going to become even more dramatic.

For so long sellers were put through the wringer trying to sell, and now it’s about to swing strongly in the other direction, moving so quickly through the middle ground we’re likely to miss it. If you’re a seller, it’s a great time to have your home listed. Buyers, better get busy, because not only might you have to compete with several others to get the home you love, you’re going to pay a lot more each month as interest rates creep up.

I said, some time ago, that one truism is that the universe WILL balance. It happens in all areas of life, and it’s happening in real estate now. Don’t you feel it? Exciting times. Don’t miss out on the still good prices and interest rates, people. We’re about to see house prices, first on new construction, take a big leap.

Call me and let’s get busy!

Why Work So Hard?

Well, here’s another great reason. This is a letter of reference from one of my first time buyer couples:

As first time home buyers, we were nervous about finding our first home and establishing a relationship with our agent. Brenda was referred to us by a mutual friend who admired her professionalism and wonderful spirit. Brenda left a wonderful impression after our first meeting. She LOVES first time buyers and helped us to understand the process, was patient and detail oriented when showing us each home, and offered support during each step. She understands the market and takes pride in her work, something that you will see after your first meeting with Brenda. She has a heart of gold and we thank her for making our first purchase special.

-Cameron

Real Estate Referral Letter

There is no higher compliment in my business than referrals from past clients. Not only does it help create a firm foundation for your business, but it just plain makes you feel good. Here’s one that made my day:

Recommendation for Brenda Briggs

Selecting the right realtor can be a daunting task, as there are so many agencies and qualified individuals available in today’s marketplace. After interviewing several, we chose Brenda as she was ‘down-to-earth’, easy to talk to, and very professional in her approach. She more than exceeded our expectations!

Rather than feeling like just clients of hers, we felt “special”. We knew that she was doing her utmost to find a buyer for our property. She answered our calls and emails promptly, listened to all of our concerns, offered valuable advice, and made the whole process of selling our house run smoothly. If she felt a room needed a special something, she addressed the situation herself, rather than asking us to do so. She instinctively knew what needed to be done to make the house sell, and she succeeded in short order in a slow moving market.

Brenda excels at negotiations, and has perfected the art of dealing with buyers and sellers. She possesses just the right touch when anxiety flares on either side, remains professional in all aspects of the transaction from the signing of the listing agreement to the closing, along with demonstrating integrity in her business relationships. We always knew that she was there for us, representing our best interests at all times.

We appreciate all the extra work that Brenda Briggs did to make the sale of our property a reality. We cannot recommend her high enough!

Jaine and Brian Parry

And by the way…these people are special to me. I never knew them before I listed their home, but they are now a part of my history…and hopefully my future as well.

Real Estate no-news

Guess what? Real estate tastes are changing. Well…no kidding. People are always like a school of fish, aren’t we? We follow the leader or change direction en mass as though a signal from outer space was just received. This time, though, there’s an indication that some of the new trend behavior makes sense.

Like this: McMansions are going bye bye in favor of smaller homes, ultimately for the energy savings of not having to heat and cool large spaces nobody uses. Duh. It’s getting less and less cool to have giant spaces in the age of ‘green’. But the look of these smaller homes is still open and spacious, accomplished by fewer dividing walls, more careful decor to accent areas versus rooms, and lots more glass.

And here’s another one…stairs are losing favor. That makes sense, doesn’t it? Baby Boomers are aging. Who are we kidding; we’ve AGED. One level is a good thing…again. So all of the ranch style home owners who couldn’t get a showing are going to continue to be happy about the new trends. But you’re going to have to update and maybe even knock downs some walls to open up the spaces…or cut the sale price to compensate.

Granite is still in. That’s a good thing, because almost everybody either wants it or has it. I shudder to think what’s going to happen when granite becomes passe. Open spaces are still in and growing in favor. Modern styles are back, sort of an early sixties throwback; lots of floor to ceiling glass and fewer walls to break up spaces, lower roof pitches, single level. Ornate is packing up and leaving; lean and clean lines are in. If it’s true that neo-Mediterranian is coming on strong, we should see stucco make a comeback. Imagine that.

The kitchen still sells the house; no surprise there. If you want to sell and your kitchen is OLD, you’re going to have to either update or compensate by lowering your selling price…a lot. Almost every seller has to spend update money these days. The best place to spend? Kitchen. Next place to update: bathrooms. Now, how many times have you heard that?

And have you noticed that it’s the SELLERS who are the fixer-uppers now? It used to be buyers who did the fixing. Not anymore, at least not right now. Oh that’s going to change back when the market becomes a seller market again, but for now…sellers have to ante up the renovation money. Buyers want a kitchen they can walk into and start using. Period: End of discussion…for now.

Here’s some more no-news: neutral paint colors! If your home looks like the Sherwin-Williams color wheel, you’re going to have to paint if you want to sell.

All of this is the market speaking. The schools of fish are still swimming. If you want to sell your home and choose to ignore what the population at large are buying, then the simple, absolute conclusion is that you don’t want to sell your home. You just don’t. Your realtor, even the realllly good one, can’t sell what the market has zero interest in buying. You might want to read that last sentence again.

If you’re buying, it’s a good idea to see what’s heating up in the market so that you buy smart. You don’t want to buy a Victorian with small rooms if glass houses with two interior walls becomes the norm. And by the way, almost nobody lives in a house long enough to outlast the trends anymore. I know, you think you will be the one…but the data say you won’t.

And here’s one last thing: live like you want to while you own your home. Paint all of the rooms electric blue if that floats your boat. But when you’re ready to sell, remember this: you must appeal to the market or you will not sell. People follow the trends. Oh, there will be one person who would LOVE your blue house, but if that fish isn’t swimming with the school of other fish, swimming along JUST LIKE all of the other fish…it’s probably been eaten by a bigger fish already. Paint.

brendabriggsrealtor

Welcome to my world!

Tag Archives: real estate