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To Renovate or not To Renovate… is it even a Question?
Our front entrance is a disaster. It’s a catch-all and has driven me crazy from the minute we moved into our home 4 years ago. It’s an entrance from the garage AND front door. It’s the stairway up to the boys’ bedrooms, it’s the basement stairway access AND the hallway to the guest bathroom. It’s a LOT of things. Well traveled and a complete dumpster fire. When we moved in, I purchased a few items online to get us through- a bench with some storage drawers, a shoe storage/hook & storage wall type of unit. It’s not functional for a family of 5. Aside from us needing a system (and needing to train our kids that we don’t need FIFTY pairs of shoes piled up in the entrance and making it a competition to see how many coats we can fit on each hook), it just doesn’t look pretty. I am the only girl in the house so I am out numbered, but I LOVE to host and it just isn’t a space that works efficiently for us. So I made the call. I have a friend that is a designer and i invited her over to get some vision (along with some of my Pinterest posts that I had already found for some inspiration) and to come up with a plan that would be sensible, functional, and pretty (yes. I said pretty- because gosh dangit, I deserve it).
The plan came back yesterday and it is BEAUTIFUL. I’m SO excited. It’s bold, it’s got so much storage I want to cry… AND… the quote came back 3 times the amount we had hoped it would be. Once I was able to bring Jerold back to life after he passed out (he actually handled it better than I thought… though I DID choose to tell him while we were in front of his work colleagues- follow me for more marriage advice), we had a really great discussion about it. Throughout the day I’ve been reflecting quite a bit on what we discussed and I’ve come to a few conclusions. Conclusion 1- when it comes to my own home, I lose all sense of reality and practicality. I want what I want when I want it. No reasoning. I remember the last home I purchased a home on my own as a single mom, Jerold (my now husband, then “friend”), came along to the showing to walk through it as a second set of eyes. All I saw was the island that my kids could pull up to while I baked with them. The yard was so close to a park, and the basement gave us way more space to host friends for sleepovers. When I left, I had decided I would buy it. As I spoke to J about it, I realized I had literally done NONE of the services and due diligence items that I would do if I was working as a real estate agent for anyone else. I didn’t remember what kind of furnace it had– I don’t even know if I had looked in the furnace room… and that’s LITERALLY one of the first places I go to at showings! So, in true form with this proposed reno, I have been so caught up in how “cute” it will be and the idea of wallpaper that I hadn’t looked at any of the practical items. Conclusion #2- I don’t really have a conclusion 2. I just thought it would sound better.
Let’s analyze this potential reno the same way that I would advise you, a potential client when they ask me whether it’s “worth it” to move forward with a renovation– it is one of the most popular questions I get asked and one of my favorite things to talk out with families. It is extremely common that I will go over to a client’s home, do a walk through of their place and give comments on little things they can do to increase their value or just give “yes” or “no” answers on whether certain projects are a good idea or not. I truly believe that real estate agents are incredibly underused. These are free services because it makes my job easier if it ever becomes time to sell your home down the road. And even if not, we had a good time and we got to talk about things that we both love! Here are the questions I ask everyone that is considering a renovation or home project… and that I have been forced to consider this week:
- budget. Do you have the money for this? Does this make sense for your current financial situation? How is this getting paid for- what’s the plan? If you are refinancing your home for a major renovation, you’ll want to make sure that you are doing the things that will increase your homes value, not just because you feel that it’s time or because you read or saw somewhere that someone else thought it was a good idea. It’s not worth doing a renovation if you cannot afford to see it through to the end or if it will cause stress on your relationship. Be realistic and don’t guess on the numbers. Get quotes from multiple people and companies. Allow for something to go wrong so that you have a buffer. And if you don’t have the budget right now, that’s completely ok! Maybe you can do one or 2 things such as changing out your light fixtures or updating the pulls/hardware to give it a look that you are happy with until you can move forward with the bigger plan.
- purpose/value. What is the reason for the renovation? Is this something to increase the value of your home so that you can sell it or is it a long term home and you’re doing something because you it will make you love you home even more. Very often I am asked “will I get my money back if I do “. Some of these are easy yes or no’s… bathroom and kitchen’s are easy yes’s- depending on what level of finish you go and what you choose to do. But even if it’s a no, that doesn’t mean you shouldn’t do it. You own a house to live in and you should enjoy it while you’re there. A pool doesn’t give you a great return on investment and lowers the number of buyers interested in purchasing it. Does that mean you shouldn’t put one in if you’re planning on staying and enjoying years of your kids’ summers with it? Or if you’re in a job where you don’t get away to the lake or on holidays and will use that pool at every possible chance? Not at all. All of these items need to be considered. The same goes for a finished basement. Typically right now you’re getting 50 cents on the dollar back for a finished basement. Does that mean that you should put your kids down there with some sheets and foam floor pieces or force them to share a room upstairs? Not at all. If it’s going to be used and your family will benefit from it that’s a judgement decision that will help you figure it out. You will likely be staying there longer term and paying down your mortgage over the time that you’re enjoying it which will help get that cost down over time. If you ARE in a home short term and are skilled, sometimes I will advise clients to finish out the bathroom, give the framing a head start or some of those items dependent on your situation and the market.
- realistic. Is your vision a pristine white home with white couches and white area rugs while your reality is slobbery (yet lovable) animals (or husbands haha), messy toddlers and you can’t make it through a lunch without slopping on your shirt? This is an over-exaggeration, but you know what I mean. If you are getting rid of storage where are you putting the items in those places? If your style is minimalist but you have a LOT of stuff, where will it go? If you want a kitchen with open shelving, do you have nice dishes to display or will you need new dishes as well? Give it some thought. Is the color you have chosen trendy and one that you will hate in a year? Yes it is just paint, but it’s a TON of work.
- do it right the first time. If you have thought through all these points, I have one more piece of advice that my husband has taught me over the years. Don’t just do it halfway. Wait until you can do it the right way and go all in. Commit. If you want it to last, use the nicer product and if you can’t afford that, hold off an extra month or 2 until you can. Don’t rush it just because you want it right now. You will not regret waiting for that kitchen installer or company to have time for you rather than just going with the option that is available right now. There could be a reason why they are available and the other guy has a wait list.
So, will we be moving forward? Maybe. But there will be a few adjustments and concessions. Jerold pointed out a few practical things that I hated to admit at the time that make sense to me– a second or third opinion and set of eyes is never a bad thing. I’ve been hung up on turning our storage space under the stairs into cute pull out shoe storage bins. The price- astronomical because it’s incredibly involved and custom. But it’s cute. I hadn’t even considered not doing it. Jerold pointed out that we have a full double closet right across that is completely unused and we can convert that WAY easier into shoe storage. I’m shaking my head right now when I think about why I couldn’t have thought of it. Anyway. That’s all for now. I’m sure you’ll be updated along the way!
Happy renovating! And if you have ANY questions or want me to pop by with a second look or opinion shoot me a text! I’d LOVE it! Do NOT clean your house for me… I’m used to chaos. You should see my entrance. 😉
-Abby
May e-newsletter!
Here we go! Hot off the press, or keyboard. Whatever. I’m not techy. This took me far too long, but it’s here! An article for buyers on what to look for when you’re viewing homes! Also some pointers on staging your home to sell! An interview with my mom, and an AMAZING recipe/easy supper idea from Pam!
Click on the link below and check it out!!!
How to Become your Realtor’s Favorite Client!
I’m a people pleaser to a fault. I NEED people to like me. If you don’t, I will kill you with kindness until you do. I need my kids’ teachers to like me, I even need my counselor to like me- when I first started seeing her, I would make sure I asked her some personal questions to show that I cared about her and wasn’t just there to talk about myself… until she told me that she actually did like me and looked forward to my appointments (it could have been a lie, but it sure helped).
Quite often in my job, clients will call me and say “I’m so sorry to bother you…” or, “I feel bad for bugging you, but can we see this and this house?”, or if the house isn’t the right one, they’ll apologize for wasting my time. It’s time for a pep talk to correct this thinking! Stop apologizing!
My job is to work for you! That means taking your calls, answering your texts and showing you homes! When I signed up for this career, I knew it was not an 8-5 job because likely, if you are purchasing a home those are hours that you are working your job so I need to be available for your evenings and weekends off! I love my job- I love looking at homes and finding the right one for you, or showing someone your home so that it can sell and you can move on. If I didn’t love it, I wouldn’t be doing it. Most of my work happens in the evenings and on weekends, so PLEASE call me whenever it works for you! (If it’s at 1am, I may not reply right away…) I get the majority of my texts/calls between 8-9am, lunch hours, and after 5pm, so you are not intruding. If I don’t answer, it just means that I am with someone else and will get right back to you as soon as you can! When we look at homes, it doesn’t bother me that you aren’t purchasing the first one we look at- that is a RARE occurrence. It’s important to see several homes to compare and become familiar with the market so that you know when your deal comes. This is your largest investment in life- not something to rush into because you feel bad that you’re taking up someone’s time (remember… this is my job!). If you’re feeling rushed or pushed or pressured in any way, get out of that situation and find a new Realtor!
BUT… if you want to be sure that you’re a favorite here are a couple tips to make sure you’re in the good books!
- Get Pre-Approved. No pre-approval means no house showings. I usually meet up with new buyers to explain the process of purchasing a home and what it looks like, how we will go about finding the right fit. After that, I send you to the bank/lender of your choice to meet up with them and hand over your paystubs and financial information. They take a look at your credit score, savings (for your downpayment and closing costs), and let you know what price of home you can afford. It’s not scary. It’s not intimidating. If it is, find a new bank/lender. You do not have to go to the bank that you have your bank account at. When I was newly single, I knew that I was in rough shape financially. I sat down with my lender and told her my goal was to purchase a home and asked her what I needed to do to make that happen. She pulled my credit score, highlighted the items I needed to clean up and debts I needed to pay off, got me a credit card to help build my score and in 2 years I was good to go! If you are declined or not qualified the first time you meet, that is not a failure. That is education and 1 step towards your goal. It is something to be proud of. You are taking your future in your hands. If you are NOT pre-qualified or waiting for your banker to get back to you, I can sign you up for an “auto email” that has your search parameters on what type of home you are looking for and the area. It automatically sends you all new listings that come on the market, and it helps you get a feel for what is out there and the pricing of the current market- it sets you up for realistic expectations on what you will be getting/price point. Which brings me to my next point…
- Have Realistic Expectations. We all want a 5 bed 3 bath home close to schools with a huge yard for under $200000. But unfortunately in most cases that isn’t possible. Have a list of your “needs” and “wants” (HGTV), and figure out what you are willing to be flexible on, and what is not negotiable. Once you have seen a few homes or taken a look at your auto email and seen what homes with your needs are selling for, this may need to be adjusted. A miracle once in a lifetime deal rarely happens. If it does, chances are you will be up against 100s of others that have been waiting for that deal. And unlike HGTV, we don’t get qualified for $1 million mortgages with a basket weaving or yarn sorting job. It is important to be picky about the things that are your priority, but it is just as important to be realistic and know when expectations need to be slightly adjusted.
- Respect all Parties’ Time. How horrible would it be if I showed you a home and while you were looking around, I was on my phone texting other people or taking calls? The only time that it is frustrating as a Realtor is when someone wants to look at a home “just for fun”, or because they’ve always wondered what it would look like inside. There’s a difference if you are in the market and it’s a wildcard home that you’d like to feel out and check to see if it could actually work for you. But if you honestly have no intentions of moving or purchasing or even considering that home, you need to consider all the time and effort that others have put into making that showing possible. The home owners/sellers have spent time cleaning their home in hopes that this is the showing that will bring them an offer. They have found a place to go with their family during the showing time (which is typically right over a supper hour so it costs them a supper out). As a Realtor showing the home, I usually put in at least 30 minutes of time into researching the home that we will be viewing- looking into improvements, history of the home, tax & utility info, property assessments and property lines- it’s not just something that we show up for to hang out for 30 minutes. As much as I am more than willing to take my evenings and spend them with my buyers, if it is “just for fun”, then I would prefer to be at home with my kids or with clients that are seriously looking for a home that have limited time frames that we took time away from. If it’s a boredom thing, I 100% believe that there are more entertaining things out there than hanging out with me in homes! I’m fun, but not that fun…
If you are doing all 3 of those items above, you are 100% in my good books and have nothing to worry about! My favorite texts that I get from clients are the random ones of something funny they’ve seen online (an ugly house for sale or a weird toilet placement), or questions about real estate to settle arguments with their husbands or even the difficult ones from people going through hard times and trying to figure out where the heck to start and which direction financially they need to go to either stay in their home, or get it sold to start fresh. They’re never dreaded– let’s be real. I’m probably just designing rooms on my “Design Home” app, or online shopping on Amazon. Save me!
Knock knock knocking on sellers doors…
What do you do in a market where there aren’t enough homes for sale and too many buyers?
In the age of electronics, texting, social media and all non-intrusive, passive forms of not putting yourself out there to be rejected, cold calling is definitely not the most popular form of sales. But there is a time and place for everything… as much as I hate it some days!!!
My first time ever knocking on doors was when I was a brand new agent (8 years ago), young(er) and ready to change the world. Okay, not really. But I was desperate to sell something and find some buyers! I decided to invite the neighborhood to my only listing’s open house. I bought some Lindt chocolate to bribe all of my visits with so that I’d appear welcoming, and not-so-secretly hoped that none of them were home and I could just leave my little flier that I had made. At the first house that opened the door, I lunged by chocolate into their face, forgot to introduce myself and threw the flier in their direction leaving them completely baffled and confused as to who the heck was this random woman throwing chocolate their way. Each house got a little bit easier and I learned to introduce myself and not waste the moment. Was it a success? No. Did I score a new client? No. But I got over the fear. Nobody flipped out. Nobody slammed the door. Nobody chased me off their property. I’ve been told that anybody that does those things are the ones with the problem and are over reacting… but all it takes is one crazy person…
I met one of my favorite clients during a door knocking session. I had sold a home on a street in Steinbach, and their family also wanted to live on the same street so I prepared my letters, loaded up on the chocolate and set off on my way. It was her due date with her first baby and they had been thinking about selling. That began our first transaction. 8 years later, we are just in the midst of finalizing our 4th transaction together! We’ve seen each other through some major life changes, and she has been with me from the very beginning of my career when not a ton of people were willing to take a chance on a newb (as charming as I was).
So, 8 years in, why am I knocking on doors? Honestly, it’s not a regular occurrence. I’m lucky enough that I have a solid client base where a lot of my business is referrals from previous clients… something I do NOT take for granted and am super proud of! Here are a few instances when asking your realtor to knock on a few doors could be worth while:
- You are wanting a specific neighborhood and nothing is on the market.
- You need a specific home or amount of acreage in a certain area.
- You have a certain home in mind.
Things to keep in mind when you are looking for specific properties and have asked your Realtor to knock on a few doors/tap some shoulders to see if they might be interested in selling:
- Be ready to pay a premium. Your negotiating power is decreased to some degree when you are letting the potential seller know that it is THEIR specific property that you are interested in. Of course it is my job to show you comparables and give you a reasonable fair market assessment on the home’s value, but there will not be a lot of “low ball” offers that would be considered at this point. As my brother (and boss/broker) has said, “if you’re looking for a needle in a haystack, know that the needle could be made of diamonds”. Wisdom from Adam Neustaedter…
- It is a long shot. We are approaching someone that may not have considered selling, and could very well be settled on staying. We don’t know their financial situation, their family situation, or if they are even in a position that would work for them to move at this point in time. Unfortunately as bad as you may want the home, you can’t force somebody to move. lol.
- It could take some time to put the deal together. If they hadn’t considered the possibility of selling, they would need some time to see if it works financially for them PLUS they need a home to go to! Your possession date could be further out, so if you are in a rush, this is a tougher situation to navigate.
That’s all the wisdom I have on this topic! One of my favorite buyers of all time couldn’t find a home in the area they wanted for their family. I had showed them over a dozen homes. She eventually took to Google Earth and started sending me images on places that had fabulous backyards- not knowing what the interior of the homes looked like. We still laugh about this… and we DID find them a home! It was NOT one of my many door knocking homes. Usually with my buyers, I set up a search for them online and it auto emails them, and then I’ll send them random “wild card” homes (after I have shown them properties and have a feel for what they really love) that are outside their criteria. These guys ended up purchasing my “wild card”. It’s actually crazy how often that happens! Anyway! That’s all for today!
April Newsletter! Tackling Competing Offers!
Click the “April 2021” link below to take a peak at my latest newsletter! And don’t forget to enter your email on the bottom of this page to subscribe so you don’t miss out on any of my random thoughts, monthly market updates/newsletters and any other fun stuff that comes up along the way!
