Author: Katherine Grote

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The #1 Secret Your Real Estate Agent Wants You to Know

Have you ever bought or sold real estate? If you have, you know what it’s like to sweat through the offer, inspection, appraisal, and negotiation process. You either made it through to the end with success or a whiskey caffeine addiction and a twitch under your left eye. Or all of that.

Maybe it was easy-peasy thanks to a fabulous agent who made it look like a walk in the park, and you know nothing about said agent’s new nicotine addiction. 

But here’s the deal. Even if you had an award-winning, go-getting, nerves-of-steel-even-after-6-cups-of-coffee agent who makes it all look like sunshine….it’s not. Real estate, albeit enjoyable, is challenging. You’re dealing with human beings and their emotions centering around the most significant purchase they will ever make, dealing with some of the most important decisions they will ever make. Throw in any number of other extenuating circumstances, like:

  • Foreclosure
  • Divorce
  • Death

Just to name a few…..

And you have a recipe for a high-pressure, trauma-inducing, therapy-necessitating event. 

Having just anybody represent you is not a great plan. But even if you have the best possible agent beside you, you need to know something. It’s actually the number one secret that every agent wants you to know.

Ready?

Real estate agents do not own a crystal ball. 

Shocking, I know, but the fact remains that we can give you the very best updated market statistics. A detailed comparative market analysis, including showing you the average days on the market for properties in your area. We can send you spreadsheets, videos, and data with exhaustive information regarding interest rates, potential buyers, and marketing scenarios, but at the end of the day….

We’re just really educated guessers. The most experienced agent can give you all the information, list, and market your home perfectly, and it might not sell right away. Although real estate is all about numbers, list price, days on the market, interest rates, and potential buyers through the door, ultimately, it’s also about people. People who have emotions, life changes, and changing desires. 

As an agent, anxious sellers often ask me how long I think it will take for their house to sell. And with all the confidence of a 4-year-old in a Batman shirt, I cite the current market statistics and pray for the best. 

And I consider myself a good agent. 

So I guess what I’m trying to say is be realistic and don’t assume your agent has psychic skills, a crystal ball, or practices witchcraft. 

However, there are ways you can help mitigate some of the unknown. First, listen to your agent. Even without black magic, a good agent (like me!) can guide you through the process.

Remember, homes require three things to successfully sell. Price, marketing, and condition are the most important criteria. Listen to your agent’s advice about these three points. If you do, I can almost guarantee your house will be sold, and you’ll be on your way to new pastures. 

Second, give yourself and your agent grace. Selling (or buying) is a process, often with factors out of your control as well as your agents’. 

And finally, practice patience! We know that you want and need your property sold. No one wants it to happen for you more than your agent. It can be a difficult and emotional journey, but patience is the best trait to bring with you for the trip. 

As a final aside, going through a challenge with someone can often bring you closer. Facing obstacles together allows individuals to rely on one another, offer support, and work towards a common goal. In the process, connections can grow stronger, and what once started as a challenging situation can lead to developing a meaningful friendship. So, embrace challenges with an open mind, as they may bring you the gift of a good friend as well as a fabulous agent. 

Now I’m off to eBay to see if they have crystal balls for sale.

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So What’s the Deal With the Ugly Home Buyers Anyway?

We’ve all seen those signs for the “ugly house” buyers. Maybe you’ve personally considered giving them a call. But what do they do exactly? What’s the process, why do people choose to sell this way, and is it even legit?  Grab a cup of coffee (I’m already on my 3rd), and let’s see if I can answer these questions.

Our family has been investing in real estate since 2006, so I’m pretty well-versed in how this works. First, let’s talk about what a traditional sale on the open market might look like, and then we’ll compare that to a sale to a real estate investor.

Traditional sale:

The first step is to find a great agent who knows your area well. From there, the preparation of the home for the market begins. This includes paperwork, cleaning, staging, more paperwork, photos, and more paperwork. This process can take weeks. Once your property hits the market, potential buyers traipse through your home with their agents while you wait, drinking copious amounts of liquor or coffee, definitely Pepto-Bismol, for offers to come in. The average days on the NWA area market are 89 days (as of July 2023). 

Once the home is under contract, it takes anywhere from 30-45 days to close and fund. During that time, you, the seller, sweat through an option period while drinking more coffee/liquor, which can last up to 10-14 days  (the option period, not the liquor), where the buyer has the unrestricted right to back out of the contract for any reason. At this point, the buyer will bring in a 3rd party inspector to go through the home with a fine tooth comb, unearthing every possible issue, from the crack in the fireplace tile to the struggling HVAC. While it is vital that a buyer does their due diligence, it is also a very stressful time for the seller.

If all goes well during the option period, the buyer’s lender will order the appraisal, and you will enter yet another waiting period to be sure the home meets value. At this point in time, you will probably now exist solely on Pepto Bismol. On the closing date, you must vacate and clean the home for the new buyer. Traditional home sales usually have very little flexibility because you are working with buyers who have timing constraints of their own that need to be met. Plus, they won’t want a Pepto-Bismol addict living in their new home.

About 80% of home sales typically happen this way. That’s a lot of liquor and Pepto Bismol.

The other option is:

Selling to an investor:

First of all, it is legit. Well….if you’re dealing with a professional homebuyer. We’ll address that in another post. Overall, you may wonder why someone chooses this route anyway. Here are the three C’s of why this could be a good option for a seller.

Controlled Sale

Convenient Sale

Critical Sale

The Controlled Sale is an ideal option for homeowners who desire greater control over the timing and pricing of their property sale, and alcohol and Pepto just won’t cut it for them. This approach is particularly advantageous when the seller needs to secure the proceeds from the sale to rent or purchase a new residence, and they need to remain in the current home until the transaction is complete. Reputable investors or investor companies involved in Controlled Sales often offer the flexibility of a short-term lease back or transition period, allowing sellers to smoothly transition to their next living arrangements. Additionally, a Controlled Sale can be an optimal solution for individuals experiencing legal issues such as divorce or undergoing a relocation for work, where precise timing is crucial. With a Controlled Sale, sellers can confidently navigate their unique circumstances while maintaining control over the sale process and eliminating much of the stress.

Then there are those sellers who may need a Convenient Sale. They simply do not have time for the repairs or preparations needed for listing with a real estate agent. The seller might have inherited the property with or without a probated will, and there are legal ramifications to wade through. The seasoned investor is knowledgeable about working through heirship and probate issues.

Perhaps the seller is dealing with an emotionally charged situation and is in no position to cope with open houses, inspection periods, or be subject to the pressures of a demanding buyer. It is common for a landlord looking to exit the rental business, who needs to sell and is mindful of the tenants still in place, not wishing to disrupt them or cause undue pressure or stress. Simple and smooth is what the seller who needs a Convient Sale is looking for.

Finally, a Critical Sale can be a lifeline for sellers facing urgent financial circumstances. Whether the seller is caught amid bank foreclosure proceedings, struggling to maintain the property, or paying mounting property taxes, time is of the essence. Unlike a traditional market sale, a Critical Sale provides a fast and hassle-free solution. With the help of someone knowledgeable about the foreclosure process in Arkansas, a smooth and quick sale can be achieved. For sellers in dire need of a quick exit strategy, a Critical Sale is the answer they have been looking for.

So now that we’ve identified the three “C’s,” let’s talk about what an investor does. A reputable real estate investor will likely come in and purchase the property with cash, a short closing, and a timeline to address any of the three C’s we just mentioned. Their process should be simple and straightforward. However, the negative is you will not get as much money for your property going with an investor. They typically look to purchase properties somewhere around 65-75% of retail price. Remember, they are business people, not a charity. Their exit strategy will involve taking into consideration how much it will cost them to make repairs or updates and the value of the property after repairs are made (ARV)

Selling your house to an investor is all about convenience. Think about the difference between a 7-11 and a grocery store. You’ll pay more for a loaf of bread at a convenience store, but it sure is easy to run in and grab it.

For a lot of people, however, it is more important to get as much cash out of the sale of their property as possible, so it’s worth it to them to go the traditional route. Remember, everyone’s situation is unique.

So now you know the difference between selling on the open market versus selling to a real estate investor.

If you have more questions, check out our family business’s website at http://www.sellmyhousearkansas.org, where you’ll find more info on the process and learn what to look for in a reputable investor. That way, you don’t end up hooked on Pepto-Bismol after all.

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Why Arkansas?!

I’m only on my second cup of coffee this morning, so I’m still moving slowly, but I had a thought. I was just thinking about how people are always asking us why we moved to Arkansas from Texas, especially amid economic turmoil The funny thing is, we moved out of Texas BECAUSE of the economic turmoil. Especially when it relates to real estate there.

Unless you’ve been living under a rock, you know that Covid did some insane things to the real estate market. However, the market in Austin was like nothing I’d ever seen before. It was enough to drive the most staunch Baptist to drink. In the midst of these fun times, our family decided to start looking elsewhere. And it’s true, overall, things are a little unsettling. Turn on the news or hop on to social media, and you’ll be blasted with bad news from everywhere!  But in our latest relocation adventure, we’ve discovered that it’s not so gloomy and doomy everywhere.

Here in NWA, it’s a whole different climate than Austin…and I don’t just mean the weather.

  • In 2022, the NWA area was ranked the nation’s 13th fastest-growing metro area.
  • A healthy job market with a welcoming environment for entrepreneurs as well as home to three of the Fortune 500 companies, Walmart, Tyson, and JB Hunt.
  • The low tax rate on state income tax.
  • A plethora of outdoor activities, specifically mountain biking.
  • A robust cultural environment complete with live music and art (pretty important to this Austin gal)
  • A healthy housing market with sustained appreciation and affordable housing.

It’s a crazy thought to pack up one’s entire family and move to a completely different state, and I fully appreciate the fact that we were in a position to do so. This is not a possibility for everyone. However, I think sometimes fear holds us back more than anything else. It was a risk, but isn’t that true of just about everything in life? Maybe I’m a risk taker (although my teenagers would disagree), and that’s why I love real estate. Regardless, our move here was one of our best decisions.

So grab a cup of coffee, and let’s talk NWA real estate!