Actively getting feedback on rehabbed properties for sale
In running my own volume rehab business (in addition to funding other people's deals), there is one thing I always want to get from the visitors at houses of mine that are on the market, and that is feedback.
Most MLS systems have a method by which brokers can enter comments or opinions about what a client thought about a property when they visited it. I don't really bother with that system much because I keep my own log separate from it. The reason I do this is because most brokers will sit down and enter only minimal comments. Here, in fact, are the last 5 feedback comments that were entered into the system for my properties:
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- “House shows well but client would like to look at other homes, but this one is on their list.”
- “Buyers loved upstairs, but downstairs was bare. Thank you for letting us see the home. “
- “Nice home, on the top 5 homes he liked.”
- “Showed well. Buyer still undecided.”
- “Client undecided.”
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Okay, that’s great. But these comments don’t really tell me much. What did they think of the recessed cans I put in downstairs? What did they think of the tiled shower we put in? What did they think of the new island in the kitchen? How did they like the countertops? What did they think of the small deck we put in leading out of the back door?
I want to know all of these things.
In my visitor log (which is just a spiral purchased at an office supply store), I devote one or two pages to each property. Then for each property I write down the name and contact information for each visiting broker who brings a prospective buyer. Less than twenty four hours after a visit takes place (usually just a couple of hours or so later while the house is still fresh in the broker’s mind), I call the broker and in the nicest possible way ask them for their client’s feedback. I need to be super friendly when doing this and I say things like “Listen I know you’re busy today and I certainly hate to bother you, but I actually make my living rehabbing houses, and your client’s feedback is very important to me. I really appreciate anything your client might have had to say about the house.” Then I mentally walk the broker through the main parts of the house and I take notes.
Believe it or not, you kind of need a thick skin to do this because you’re going to hear all kinds of stuff, some of it critical, some of it positive, and some of it a little nuts or pretty far from objective. But generally, in a good sampling of feedback, there is some material I can use about what, if anything, I might have done differently at a property.
Houses in my city generally come with a lot of ceiling fans. For the ceiling fans downstairs, I generally take them out and use the electrical hookup to wire in the recessed light cans I like to put in. (My friends think I’m recessed can crazy. I probably am.) So far I’ve never had feedback, though, that came in saying “Hey, I wish those old style ceiling fans were still in the ceilings downstairs.”
Since I always use neutral paint colors, I’ve never had feedback that came in “Oh, I hate that paint color.” However, I did do a flip once where the prior owner had recently painted the inside with “fashionable” colors that were not exactly neutral. I tried selling the house without repainting the interior, and I lost out on that shortcut. My visitor feedback helped me understand that no one liked those paint colors.
However, if I only rely on the MLS broker feedback system, there's a lot I will never hear. I am a big believer in calling brokers after visits and in a friendly way trying to get as much feedback as possible. Walking them mentally through the house is very helpful too instead of just saying "Okay what did they like and dislike about it." (Too general!)
Also, I am careful never to pressure a broker into telling me if the client is going to make an offer. In fact I emphatically ignore all of that. If the client is going to make an offer, I’ll find out about it later. No need to get into it on this phone call. I make it real clear that I’m interested in the feedback and I write it down in my book.
Sometimes a broker will get into the feedback with me with enthusiasm because they’ve seen a lot of houses in a neighborhood or an area and they themselves can provide valuable feedback on what people are looking for in general. This is really great. I mark these brokers' names with yellow highlighters and try to touch base with them periodically to find out what they're seeing and learning in the market.
I really find this feedback system helpful. It's a lot of extra work, but since my goal is to always provide the best rehab product I can, it really, really helps me to collect this feedback data, even (or especially) if it's something I don't want to hear! :)
What do you think? It would be fun to hear about your experiences.