All Forum Posts by: Michael K.

My cousins cut their teeth on and (until recently) specialized in D-class (ghetto) properties. I used to help them but eventually had ENOUGH- self-management of those properties was NOT for me!

So today I was talking with one of my cousins. He got a phone call from his foreman.

"Wait, WAIT. What's missing??!"

They've been D-class since the 70s, but this was a first. Not only did some deadbeats do a midnight moveout, but they actually stole the 2.5 car garage door. Yes, I'm talking about the overhead door- not some small side service door.

Anybody ever been through anything similar? We're all kind of amazed that they actually stole the garage door.

Mike

Whoops- I took MO as meaning Missouri. My error.

...and frankly, $400k might be an average home in Orange County. (I don't know anything about CA markets except that the prices are astounding.) That said, I still stand by the advice above. Get the place cleaned, landscaped, staged, photographed by a professional, and pay for extra advertising. A <10% bump shouldn't be impossible if done right.

Mike

I'll caution you that some courts will look at that as abandoning responsibility or refusing to communicate with the tenant. I've found that a totally blank look, repeating "uh huh" a lot, and asking them to boil it down usually does the trick.

Mike

This.

You may win battles here and there, but nobody wins a war with building code departments.

Mike

Okay, VERY cool on the response time! I can take up to 12 hours, and I'm with you on the full time job.

And VERY cool about not getting into a pissing contest with a skunk! Excellent work by NOT lowering yourself to their level! That said, never forget that you're not a subordinate. Real leaders never stoop lower, but they still carry themselves as leaders.

There's zero negligence in their notification unless your lease specifically states acceptable methods of contact. You can call it whatever you want, but a judge or court commissioner is going to call it fine. Sucks, but it's reality. Chalk it up to an expensive lesson learned (we've all been there) and learn for your new future leases.

We've all been new- it's how we become old hands. :) Welcome to the fold, fix your leases to specify what communication works for you, and learn your local laws. Not knowing the laws is an open invitation to be used and abused by tenants. I advise paying good real estate attorney for 2 hours of time. Come prepared with a LONG list of questions about landlording rules and laws that includes "What should I know that I don't know enough to ask?"

Sincerely,

Mike

Okay, so you've got an obnoxious %$#@!. They pay the rent on time. If they're not causing trouble to the other tenants, I leave them be. They're still a tenant and I'm still the owner who is getting rich off of them. All of the rudeness in the world doesn't change any of those facts.

Now, should you respond faster? Yes, at least a follow-up within 12 hours that you're aware of the issue and will fix it on x date at y time. Not an excuse for being a %$#@!, but I will say that your response could use a slight change. (If you're already doing this but didn't write about it, I apologize and withdraw the suggestion.)

Was it THEIR negligence that caused the break in the line? If so, I'd evict and take their entire security. If it wasn't their fault- they notified you. It may not have been how you liked, but they did notify you. That's not their problem.

You hold the cards with their deposit and rent. If you don't like them that much, don't renew their lease. If they leave early and there's a 1-year lease, you get free rent and potentially security (subject to state/local rules).

I don't know MA rules. Frankly, if you don't either, that's a MUCH bigger problem than anything you've mentioned here. I strongly recommend that you consult with a COMPETENT landlord/tenant attorney to learn the legal ropes. You'll be QUICKLY hung with those ropes if you don't know your local, county, state, and federal housing laws.

Sincerely,

Mike

I just sold a home (via a referral) in St. Joseph, MO. It took a long time to sell and the Realtor told me that the MO market is tough. It's also relatively inexpensive, so I'm guessing that your 400k+ is a very nice property.

Again, if everything you are saying is true, you're getting screwed by the cheap Realtor. Interview some top Realtors in the 400-500k market in your locale. Pick one based on COMPETENCE and not by price alone. Keep in mind that this is a two-way interview. The best Realtors don't take every listing that comes their way. (I personally refuse slightly under 2/3 of the people who approach me.) Be open to their recommendations, and LOOK BEYOND COST if you want to make the big bucks.

You don't have a two bedroom wreck, and I'm guessing that you're not a two bedroom wreck of a person. Don't act like you have one or are one.

Mike

Hello!

As a real estate broker, I love flat fee brokerages. As soon as the contract ends, I rescue the disappointed and disillusioned sellers by providing REAL service. Here are a few things that you should consider:

1. A property is only worth what a ready, willing, and able buyer is willing to pay. You said that you got a "couple of offers" for 400k. That's what your property is worth.

If you want to increase your home's value:

a. Cleaning. Did you hire a professional service to clean your home top to bottom? If not, have you had multiple people through to give unvarnished opinions as to its level of cleanliness?

b. How new is the paint, and is it something neutral that isn't basic white? Did you pick colors in coordination with item (c) below?

c. What stager did you hire, what are their credentials, and what is their track record? Staging costs money, but it's FAR less than your first price reduction. Did you follow ALL of their suggestions, do the short term furniture rental, etc.?

d. How's the yard? Did you do professional landscaping? A basic treatment? Lawn care with quality lawn maintenance (fixing yellow areas, replacing dead grass, all weeds gone, fertilized, etc.)?

2. Okay, so you've done all of the above. Let's talk advertising!

a. Did you or your Realtor hire a real estate photographer? Using amateur photos on a random digital camera gets random results. And given that over 90% of buyers begin online, you can't afford to have random photos online. Buyers who don't like the web shots don't do drive-bys. Buyers who don't do drive-bys don't call for an appointment. Buyers who don't call for an appointment don't see the home in person. Buyers who don't see the home in person don't fall in love with the property. Buyers who don't fall in love with the property don't write any offer, much less ones between $430,000.00-$460,000.00.

b. Have you found out how many photos fit on your local MLS and used that number of photos?

c. Has your Realtor adjusted the description (and number of photos) for the paid services that they use beyond the MLS? Or is your Realtor too cheap to use these paid services? (In my case, I can do 24 photos on MLS and more on my paid services. Further, I adjust all of the descriptions and use real actual words versus real estate acronyms- you know, speak to the buying public in language that THEY understand. Has your Realtor done this?)

d. Is the description dull and sterile or sexy? Sell the sizzle, not the steak! A steak's a hunk of red meat. Hooray, it'll eventually sell. Explaining the concept of grass-fed beef, no preservatives, lean, the flavor... Not only will that sell, but I'll sell it for more than the basic description of "thick red meat, about 1 lb MOL."

e. Did your Realtor hold a Broker's Open? Open houses are only useful for your Realtor to meet buyers for other homes. (Ask 100 Realtors how often they meet a buyer for the home holding an open. You'll never do an open house again!) But introducing the home to Realtors only can be useful- they learn what's out there and may remember it when they meet a potential buyer. Another fact- buyers rarely find the homes these days; Realtors using their MLS who email listings to those buyers find homes.

3. Pricing is king. Bidding wars happen when a home is priced fairly and has interest. At this point, you're either overpriced (i.e. your home is 400k all day long) or you're not showing your value to potential buyers. Having not seen your home, I can't say which. If you've done all of the above, your idea of value is wrong. If you haven't done all of the above, do it. Or, don't and lower your expectations.

4. Never screw the buyer agent on commission. If your discounter offers less than what is normal for your area (common way to lower the overall commission), it's amazing how buyer agents "lose" your home, tell interested buyers that it "already sold," or sabotage the showing ("Wow, that's a HUGE crack in that wall!), etc. Moral? No. Reality? You bet your bottom dollar it's a reality! Never, ever screw the people who bring buyers- in other words, the people who will be the linchpin of your success! (See 2e above.)

There you go. I am going to be blunt but honest. Limited service brokers are excellent for two sets of people- those who don't care about the sale price of their home or who are cheap and clueless.

You care about the price of your home, or you would have sold for one of those prior offers already.

You're asking here, so you're not clueless.

Are you cheap? If so, you're going to get exactly what you paid for.

If you want top dollar, you're going to have to spend more on your sale AND perhaps put in a lot more work than you suspected. But that - as with anything in life - is how it works. Find a full-service broker who eats the cost of expert photography (we're out there!) and who has connections with amazing stagers and landscapers.

Do this right, even if it means spending more. In the end, the moderate amount you spend now WILL lead to that higher price you want.

Good luck!

Sincerely,

Mike

Brian, I had one like this two years ago.

Put your foot down, pay now or be evicted.

If they don't follow through, evict with all due haste and chalk it up to a lesson learned.

Mike

Hello and welcome from another Milwaukeean!

Mike