SamBenner.com – REALTOR – Keller Williams Real Estate

Category: Sellers

Short Term Rentals: Good or Bad for Ventura County?

What Are Short Term Rentals?

Short term rentals are home rented for terms less than a typical lease of 12 months. We are talking about usually for a few days up to a few weeks. You see these for business travelers, family vacations, and even those temporarily displaced from their homes as we have experienced a big increase in here locally due to the Thomas Fire.

This trend of using short term rentals as travel accommodations has become very popular so I can see the appeal of property owners in Ventura County wanting to capitalize on this movement with travelers coming to enjoy our beaches, hillsides, and all points in between. On the flip side there is a very vocal contingent of homeowners who don’t want their neighborhoods invaded by travelers who can be known to disturb the peace and overstay their welcome.

This has led to some very interesting debates on short term rentals and I thought this would be a good opportunity to look at both sides and get your take on if they are good or bad for Ventura County, so let’s do this.

The Backstory

I’ve recently returned from a fantastic trip to Wine Country in California’s picturesque Central Coast. We weren’t there for the wine this time (kind of). It was the location of my son’s youth basketball tournament. Not a bad deal to hang out in the bustling communities of Paso Robles, Santa Margarita, Arroyo Grande, and San Luis Obispo for the President’s Day Weekend while watching some hoop.

Seeing that we had a big group traveling, which included my in-laws, going the hotel route just didn’t seem to be the right fit. We needed space and having a kitchen to prepare our own meals and all hang together was a priority. I started browsing popular short term rental websites like Air BnB and VRBO.com. Wine Country in California has boomed in recent years and there were swarms of available properties to choose from. After much browsing we settled on an incredible property in the hillsides of Paso Robles.

Managed by a firm Stay Paso Robles, upon my reservation I received a call to confirm my information and to see if I had any special requests during my stay. Was a great introduction to the home and what was nearby for us to enjoy while we were in town.

The home worked perfectly for us. Spacious, 3 bathrooms (which sped up the morning routine tremendously), and incredible views of the many vineyards below. Everything we needed to function was in the home including a fully decked out kitchen and entertainment system because we can’t travel without our Playstation.

We had a great time, it was a great way for our entire family to spend a lot of quality time together, so the consensus for us was that short term rentals are a beautiful thing. Where I can see the debate however is when I think about my next door neighbor renting out their home to vacationers and how excited I’d be to see them come and go each week not knowing exactly what type of people we’d be dealing with night in and night out.

The Plus Side of Short Term Rentals

Historically, renting beach homes for a week or even the entire Summer has long been part of the culture in Ventura and Oxnard. Families from all over the world have traditionally brought their families together for special occasions or just because we have the Pacific Ocean and sandy beaches at our doorstep.

With the growing popularity of home sharing websites like AirBnb.com and VRBO.com it has never been easier to find everything from just a room to a palatial estate in just about every city you can imagine. This ease of use of these sites and the competitive fees to getting a hotel room has made it very simple and cost effective to find the perfect place for your family vacation, business trip, or just about any reason to getaway these days.

Going Coastal

We live in a coastal community and by nature our home values are much higher than in other parts of the country. The increased expense to acquire an income property here puts more challenge on the owner to turn a profit.

The proximity to the ocean creates increased traveler demand as people come from all over the world to stay here for quick trips.

The rental rates for short term rentals are much higher and make it easier for homeowners to be cash positive vs. long term rentals.

The positive returns are hard to argue with and I can see why there is a big push to lease out their properties short term and one can easily see why this strategy is especially effective in our area.

The Downside of Short Term Rentals

We’ve all lived through a neighbor having a wild party. Usually it happens when you have a big event happening early in the morning the next day. Yeah, it wasn’t pretty and you might have even called the police to break things up but they are few and far between in most cases as there is a general respect that is owed to the people you see every day in your neighborhood.

Now imagine this happening every week when a new crop comes in who’s “on vacation” and wants to have the ultimate Ventura County experience. This is what many homeowners in Ventura County have experienced and have made themselves very vocal in local community meetings.

A Mixed Bag

With more and more travelers choosing to go this route vs. staying in hotels this has led to some neighborhoods feeling like hotel districts. Seeing that these communities are not zoned for this type of use has led to many homeowners lobbying to have short term rentals banned.

Most homes can’t accommodate multiple vehicles so they spill out and take up street spots usually available for neighbors. Have you ever lost your mind when someone takes your coveted curb spot in front of your home?

Travelers aren’t on normal schedules so it’s common for noise levels to and people coming in and out of the rental property at odd hours can be disruptive to the normal flow to people living there full time.

Many of those passing through don’t know or choose to respect the neighborhood culture and therefore interfere with neighbors’ daily lives. Neighboring homeowners become concierges, being asked where to go and what to do in their town. This type of behavior is expected at a hotel, not in a residential area.

Also, the owners of these short term rental properties have varying levels of talent when it comes to managing them. In my personal experience some of the properties have been meticulously cared for and have strict rules and regulations while some are more lax and disconnected from those they choose to let stay under their roof. This has led to a mixed bag of short term renters and some very horrific results.

The Long & the Short of It

Do a few bad apples ruin the bunch when it comes to short term rentals? Does it make long term financial sense to use your property as a short term rental? I’d love to hear from you in the comments.

February 27, 2018
Why You Need to Get Off the Fence
Ah, the white picket fence. Commonly used to encapsulate the American Dream of home ownership. Kids playing in the front yard, parents embracing, you know…the whole big thing.

Lately though I’ve been noticing the fence more as a place to sit on when it comes to real estate decision making. I get it. It has been an incredible run of low interest rates and rising home values and we’ve deserved it after some trying times almost a decade ago. With some things changing in recent months it has made it a little more difficult for people to know what is best for them and up on the fence they go.

Let’s be honest, a fence isn’t a very comfortable place to sit…especially a white picket one. Let’s talk about what’s going on in the market right now and help you get your feet back on the ground and moving in the direction you want to go.

What a start to 2018 eh? The Thomas Fire has effected us deeply in so many ways locally and there have been some global shifts that also have begun to dictate that 2018 will be a year of change.

So, what do we know so far?
- Inventory is low
- Interest rates are rising
- Getting harder to qualify for a loan
- Very competitive, multiple offer situations
What should this tell you? The time to strike is here.

Sellers, time to capitalize.

Chances are if you bought your property pre-2008 or post-2008 you are sitting on a decent chunk of equity to cash in on. If you’re happy where you are at and don’t need to upsize or downsize in the next 7-10 years then feel free to stay put. However, if you see your living situation changing in that time period this would be the ideal time to cash in on your investment and leverage that equity on your next property.

Buyers, time to get in while the gettin’ is good.

With interest rates climbing the amount of house you can afford dwindles. Every tick of percent up jacks up your monthly payment and potentially prices you out of the type of home you really want. This is never fun news for me to have to deliver. With prices potentially settling a bit and interest rates still at historic lows, this is a great time to get in and get the house you really want rather than settling for something that doesn’t hit all your wants and needs later on.

Fences are for bordering property, not sitting. I’m always here to help.
February 20, 2018
Setting the Stage: Sell Your Home to a Standing Ovation

My maternal grandmother was truly something else. A rebel in her youth that grew to appreciate the finer things in life. Her cedar-lined walk-in closet was wall to wall with coordinating outfits, accessories, and most importantly a shoe collection that rivaled Imelda Marcos. Car rides with her included deep cultural discussions while classical symphonies cascaded in the background.

My favorite memories with her are when she invited me along to enjoy one of her personal favorite cultural expressions, the theater.

My first theater experience with her wasn’t some small-town, playhouse production of Oklahoma. She got us front row seats at the Pantages theater for Phantom of the Opera. Seriously front row seats. I was so close I could literally hear the footsteps of the actors as they made their way across the stage.

Being only in 5th grade my young mind wasn’t ready to process the complex themes of the true nature of love, but I couldn’t help but be drawn to the seamless production, the unforgettable music, and the unifying feeling of experiencing all of this together with a group of strangers in a beautiful, historic building. Safe to say I was hooked.

My approach to helping my client’s sell their home has definitely been inspired by this production which has now grossed over 6 billion in sales. It is the perfect blend of scenario, process, product, and audience. Your home must accomplish the same balance to appeal to the right buyer who will appreciate it as much as you did when you first bought it and like any good story will be passed along for any future buyers to come.

Here’s how I use the elements of a successful theater production to sell your home, also known as, setting the stage.

Setting the Stage: The Scenario

Think of your favorite play, book, or movie. There is a foundation to everything that happens in the story. It is a mixture of time, conflict, and aesthetic. Period pieces are perfect examples of this as they must execute the vision in every last detail to how the characters look, sound, and interact with one another. This is referred to as the scenario. In other words, how the picture will be painted.

When selling your home you have your own scenario at hand. It is the reason you are selling. This will cast across everything you do, the choices you make, and the people you choose to help you. It is quite often the question I get asked most as a real estate agent. “Why are the sellers moving?”. The answer to that question literally sets the stage to how the rest of the transaction will go.

Reasons to sell show in many different forms. Sometimes it is a very happy and exciting like cashing in on your equity in your current home to ‘move up’ to a home in your dream neighborhood. Maybe you’ve finally received that job opportunity of a lifetime, however it is two states away. On the other hand selling can be a more challenging affair due to a family member passing or a family going through a divorce.

This scenario may be the driving force to the transaction but if you aren’t careful it can also be a distraction from its success. If you spend too much time ogling the intricate detail of the actor’s costumes you might miss a critical piece of the story right? Whether the end result of your sale it to bring joy or solace, it is important that you don’t lose sight of your scenario. A long list of repairs, termite infestation, or a buyer who simply doesn’t seem like a well adjusted person are just some of the many ways this experience will throw you off your game. Rather than running for the exit, I always remind my clients to focus on the ‘why’ (their scenario for selling) and, like clockwork, all the other factors fall into place and the next act of your life can begin.

Setting the Stage: The Process

If you step back and really dissect a theatrical performance you really see that it is one of the best examples of a successful process. Director, actors, designers, technicians, dancers, and musicians come together and perform live in front of an audience who will know the second one thing is out of place.

The process of selling your home is no different. Just as many moving parts, just as much on the line, and one letter out of place can put everything in a pool of tossed tomatoes.

As director of the ‘show’ I’ve developed a comprehensive system that allows everyone to do what they are asked to do, but collaboratively. Everyone works together, but in full respect of what each other brings to the transaction. This starts before we put one buyer in the seats. From pricing your home to marketing (see Audience below) there is much that has to go right before the curtain raises. Once the show begins enters many more parties crucial to the close of the transaction like your buyer, escrow & title, and the biggest wild card, the lender. I work tirelessly to keep everyone on track, working together, and at closing, the big finish, ready to take that final bow together smiling and breathing heavily.

Setting the Stage: The Product

Have you heard of the production called Hamilton? Chances are you have. Not because you have seen it, even though you really want to, but because it has one of the most critical elements to a play’s success, buzz. It has captured the hearts of theater junkies and pop culture jockeys alike and demand for a ticket has reached heights unheard of in recent years.

What makes this such a great ‘product’? Is it never-before-seen special effects? A big name actor assuming the title role? Nope. It is a perfect balance of sight, sound, and story that everyone wants to see, so guess what? You probably want to see it too.

To generate the same excitement, be it on a smaller scale, for your home we must take the same approach. Your home is the product and we need to generate buzz. Here’s how we do that:

1. Sight: If your home has some small flaws that can be fixed up before going to market, do them. It is amazing how much impact tree trimming, fresh paint, and a good deep cleaning will have on potential buyers making it to the 2nd act. Also, make sure that you de-clutter and de-personalize your home. Buyers are easily turned off by towering stacks of your stuff or too much personal tchotchke spread across every surface. Simple things like swapping out your strawberry remnant covered blender with a few bottles of Pellegrino water on your kitchen counter can transform a buyer’s perception from no-go to must-have.

2. Sound: Creaky floors, doors, and cabinets. Dripping faucets. Clanking furnaces. Barking dogs (your dog). These are all sounds that will distract buyers from falling in love with your home. Think of every performance you’ve been to that featured a hot microphone and hair-parting feedback. That shrill, piercing moment had you less interested in the plot twist and more interested in covering your ears to prevent further hearing damage. Eliminate the annoying squeaks and creaks and you will enjoy the squeals of adulation from a buyer who is ready to make an offer.

3. Story: In this case the story of your home is the floor plan and its flow. How you experience a home is very similar to how you experience a story. It begins with the entry, moves along the living areas and kitchen and typically finishes in the master bedroom. Your home must tell a story to prospective buyer. Most importantly you want it to be your story, not leaving it up to them to create their own. This is why I believe that home staging is so important. Vacant homes experience this struggle even more as many buyers out there lack the vision to define the space appropriately. I can’t tell you how many times I’ve shown a home and have the buyer ask, ‘What is this room for?’ or ‘What do I do here?’. Vacant or not, an expert home stager will create a complete story that will include guide the buyer from room to room, experience to experience, and help them define if your home’s story could become their story.

Setting the Stage: Audience

Watching a theatrical production live with a full house is a connecting experience. Moments of awe, laughter, and emotion are better shared. The cast and crew feed off of the audience in a way that you can’t replicate in other media. It is that same connective tissue I use when finding a home’s audience. Using innovative tools paired with careful research of your home’s target buyer I create a marketing strategy that puts your home in front of them, even when they don’t know they are looking for a home.

Suddenly, while chatting with a friend or catching up on the day’s events there is your home that is in a neighborhood or has a feature that they crave. Without knowing it they have become interested in seeing it in person, finding a way to make it their own, and willing to compete against others for a seat closer to the action. Just like Broadway’s hottest new play somehow suddenly inserts itself into every dinner party conversation, so will your home to the friends and family of those who see it. Before you know it there will be a packed house, open house rather filled with adoring fans and tastemakers ready to do whatever it takes to meet you backstage.

All About Presentation

What seemed to be a very short while after our afternoon at the Pantages my grandmother became very sick. On one of the last days of her life she asked that I come to see her at the hospital. She excused the rest of the family out and asked me to come to her bedside. She could see that I was not very pleased to see her this way and even in her painful condition, she tried to comfort me. She said that she had been having dreams about me and that I was going to do something very big when I was older and to keep working hard to make sure that would happen. Seeing that made me feel a bit better she reached to her side table and pulled out a gift. Seriously, she’s the sick one and I’m getting a gift? I opened it, and being the appreciator of the finer things she had been, it was a personalized manicure kit with gold plated tools. Not knowing what to say in a moment like that she put her hands on mine, winked, and said ‘No offense’.

Whether it be a your home, a Broadway play, or a manicured set a nails it is so important to set the stage properly for success. In honor of my grandmother and my clients I always set it to the highest bar possible.

January 22, 2017
The Magic 8 Ball: A New Year Real Estate Prospectus
Remember the Magic 8 Ball? Invented in the 1950s, it allowed you to ask a ‘yes or no’ question and receive one of 20 possible answers. You would start with the window side down, take a deep breath, and pose your inquiry. This would be followed by either a shake (frowned upon for the bubbles might interfere with your answer) or flipping the window side up to reveal the highly awaited response. There would be a moment of cautious ambition as the icosahedron twisted in the dark blue liquid, tapping lightly on the window just about to reveal the clarity or direction you sought. Sometimes responses were very clear like, “It is certain”, to much cloudier ones like, “Reply hazy, try again later”. Try again later? Now that’s just cruel.

I’ve felt a bit like a Magic 8 Ball lately. Many of my clients, family and friends have come up to me and tried to give me a shake or two for an answer on what they should do in regards to real estate in 2017. Hey Sam, do you think I should…
- Sell my home this year?
- Buy a home this year?
- Sell my income property this year?
- Buy an income property this year?
No one has attempted to flip or shake me yet, and they really shouldn’t as I’m a pretty big guy, but in the spirit of that whimsical black sphere I felt inspired to answer nonetheless. Let’s take it one question at a time.

Should I Sell My Home This Year?

Why ‘Outlook Not So Good’? This all depends on your current situation. If you are looking to exit with maximum equity that moment in time is rapidly running out. For many years coming off of our steady recovery from the 2008 crash we have seen a consistent increase in home values. In some areas of Ventura County they even have reached very close to the values seen just before things came crumbling down. Conversely during the tail end of 2016 there have been signs of leveling off and settling in home vales of closed transactions. Your ‘outlook’ would improve if you choose to price your home correctly. In year’s past agents could look at recent sales and price a home 5-10% over the last closed sale and get a bevy of buyer activity without issue. For the first time since the recovery began I’m seeing overpriced properties sit for months then ride the hellish roller coaster ride of price reductions until finally a buyer surfaces. Sometimes one never does as the Scarlett Letter of Overpricing stigma couldn’t be escaped.

The other challenge to the ‘outlook’ will be if your home isn’t in turnkey or close to turnkey condition. Most buyers are not showing interest in project homes, even with the growing popularity of home makeover shows, and would much rather just bring their toothbrush on moving day. A contributor to this is that many buyers are going ‘all-in’ to qualify for home financing and just don’t have the extra dollars set aside to open that wall up or remodel the master bath. What the 8 ball is trying to tell you home sellers out there is that if you are planning to sell and are wanting the most equity you can muster before the next cycle, get going now! Make the fixes, add some polish, and get a sign in the yard as soon as you can. I feel the outlook will get hazier as the year goes on.

Should I Buy a Home This Year?

Yes, the somewhat ambiguous answer is that ‘You May Rely On It’. It isn’t a 100% foolproof plan at this point and much depends on your personal financial situation, but the honest truth will always be that real estate is a great investment for you and your family’s future. Here are a couple of points to consider before moving forward.

First, prices are going to come down a bit. Great news for those buyers that have been on the fence and feeling a bit priced out of the market lately. As my grandfather always said, “Buy the cheapest house in the best neighborhood and you’ll never be disappointed”. Finally, I feel that this mantra will be possible again in Ventura County. Yes, the market might be a little thinner in inventory which can drive the price up, but if you are willing to be a little more flexible on condition to get the deal on the home in your neighborhood of choice, there will be some of those up for grabs in 2017.

Second, competition is thinning out. Interest rates are most likely going to continue to rise which could make a huge difference in the amount of money you can qualify for on a home loan. An 1/8 of a percent can be tens of thousands of dollars between you and your dream home. For those buyers who are on the borderline of qualifying will get the unfortunate news that they will need to sit on the bench for a while and rent until they can improve their financial standing. If you are one of the lucky ones who can handle an extra point of interest to you goes the spoils of victory. Find the home you like without the feeding frenzy at the price you want to pay. It will be a beautiful thing and you can always refinance down the road should rates come down in the future.

Finally, take note of your timeline. If you are looking for a quicker in-and-out this is not the best time in Ventura County to think this way. For those looking to hold on to the property for 7-10 years, it is still a great time to find your castle. You may rely on that.

Should I Sell My Income Property This Year?

Now this is just cruel I know, but the answer to this question requires deeper thought and consideration. If you are looking for just the right moment to sell your income property for maximum exit value I firmly believe you have found it. A moment that should stretch over the next few years in my opinion. The demand for income property is higher than ever in Ventura County for reasons I don’t need to even mention. Rents are at an all time high, vacancy rates are at an all time low. Not a bad time to put a sign out and watch investor buyers seep up from every crack in the sidewalk willing to outbid one another for a piece of the action. A triplex in Pierpont recently went up on the market and last I checked there were 8 all cash offers almost $20,000 over asking. Makes perfect sense to join that party and I wouldn’t blame you for it.

Where it might require a second ask for me would be the fact that there will be a plethora of new tenants not able to qualify for a home loan hitting the market here willing to up the rent ante. Considering this would make me want to hold on to that precious income property a bit longer to see how far up it might go and cash in for the equity payday when things cycle back around. So with that I ask that you concentrate and ask again.

Should I Buy An Income Property This Year?

A resounding answer to the affirmative! Ventura County boasts some of the most desirable communities to live and has been featured in many national publications in support of this. Men’s Journal put Ventura up there with longtime ‘places-to-be’ like Nashville and New Orleans last year. This equates to many willing customers aka tenants that will be at the doorstep of your income property faster than you can say ‘Craigslist’. A scarcity in available places has created a bustling microcosm of activity that you could be in the forefront of. It gets challenging however as this is not new news and there aren’t a bunch of properties currently up for grabs and when they do come on the market you are forced to battle with some folks that have some very deep, cash filled pockets.

If you have the sand to withstand a little healthy competition and work with an agent who has connections with investors (ahem, like the author) who can get you in on properties before they hit the market, you too could become one of the proud owners of income property and build or expand your empire at a very opportune moment. Don’t expect a deal unless the place has more mice than it does roof shingles, but the long term benefits surely outweigh you buying under market value.

The Answers You Seek

We can all admit that the future is not as clear as it has been in year’s past when it comes to real estate and just like the dark, ominous Magic 8 Ball itself you might get a very different answer to the same question. The important part to remember is that you are at least asking the questions at all. Don’t miss out on the chance to empower your investment portfolio with real estate this upcoming year and be as inquisitive as possible along the way. I’m always a shake or flip away, with the answers.
December 26, 2016
FSBOMG: 4 Reasons to Reconsider Selling Your Home Yourself
I got a call from a very old friend a while back to let me know that he was going to be selling his home without the help of a REALTOR®. The fact that he called to let me know was appreciated as I usually found out the hard way.

The hard way being just sitting down with a cup of coffee, pulling up Facebook and scrolling through the morning friend update. Wedged in between the birthday wishes and Mannequin Challenge videos is a post from one of my friends announcing the sale of their home, without an agent.

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Of course I go through the appropriate 5 stages of grief.
1. Denial: This isn’t happening!
2. Anger: How could they do this?
3. Bargaining: If I had only talked to them a few weeks ago, everything could have been different.
4. Depression: Multiple visits to Krispy Kreme
5. Acceptance: I’m sure it will all work out for them.
And yes, sometimes it does. 500,000 people sell homes themselves every year. The results of those sales however may vary.

My long time friend was convinced that he had everything he needed thanks to the internet and as much as he loved and respected what I do for a living he was all set. I told him that I would be happy to accept his decision if he gave me the opportunity to present some key points to consider.

As friends will do there was a wager involved, mainly involving the release of some very embarrassing information to my wife. Safe to say a lot was on the line. I put my REALTOR® hat on and went to work.

1. Pricing

This is where the journey begins and it could not be important. The price you set for your home sets the tone for the entire transaction. When you are selling your own home you have the unfortunate bias and emotional connection to what is being valued. This can cloud your judgement (surprise, surprise) on what your home is truly worth.

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A REALTOR® will take a more strategic approach to coming to your home’s value. Study recent sales and using more comprehensive metrics on how those homes compare to yours requires experience and courage to be done right. This is something good agents do every day and with that comes applied knowledge that they take to every property they evaluate.

This is even more crucial when a more unique home is the subject. Yes, a tract home is going to have a ‘model match’ that has sold recently to give you some solid ground to stand on. However, when taking a stab at figuring the value of a custom built home, maybe one on some land, that can be a lot more complicated and if done wrong could leave a lot of money, your money, on the table and in the pocket of your buyer happy to buy it at ‘your price’.

2. Marketing

The internet has definitely revolutionized the real estate industry. It has brought a world of information to the fingertips of would-be-sellers. This information can be powerful, but can lead to overload and get lost in translation. It is very easy to get seduced with tools like Zillow, Trulia, Craigslist and think that with a simple post of your home on these sites with pictures shot with your iPhone straight up and down that you can find the perfect buyer for your home.

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In some cases it can be this simple and it does happen, however if you’ve not priced your home well (see reason 1 above) or have a home that requires a more aggressive or targeted marketing approach to find your buyer you might be selling your home short.

In my experience it requires a comprehensive marketing strategy that includes leveraging social media, networking with other agents, professional photography and videography, and sometimes very creative ideas to get a home sold to the right buyer for top dollar. These services are at no extra cost the seller, but come at an incredible value to attract potential buyers. Marketing being one of my specialities I treat every home I represent as its own storefront that needs to stand out from the competition and build a strategy unique to it. Putting your home online might get you a lot of looks, but not a lot of bites.

3. Negotiating

There are many tense moments in the life of a real estate transaction, none tenser than when it comes time to negotiate. Whether it be find a sales price to agree on, haggling over repairs, and the feared appraisal not coming in at value (see Turn 7 on my post about the home buying process).

One of the first rules of negotiation is to free yourself from emotion. If you have too much invested in the outcome it can cloud your judgement and get in the way of you reaching a beneficial compromise. When the buyer starts using your choice of granite countertops or your patchy electrical work as a reason to pay less for the house you can see how that discussion might not be free from emotion. The truth of the matter is that you might not really like your buyer personally, but they are the ones who want to buy your home and trying to find a way to bury those negative feelings during a high energy negotiation might not bring the best result.

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Working to keep all parties calm, focused, and with their best interests at heart is what skilled agents do every day. It is very easy for a deal to go from good to yelling match in the driveway with a single word. Aside from that, sellers might be so focused on just closing the sale that they might not stand up for themselves at the right time and regret doing so when they get their closing check. It helps to have someone on your side, negotiation skills in hand, that will keep your stress level low and your closing check high.

4. Escrow/Closing

This is the scary part. The legal ramifications of a sale going wrong in a legal sense are terrifying. It is why, every few months, the series of forms that we use for transactions get longer and full of more legalese because of the many lawsuits that transpire every year.

As a seller there is a legal responsibility to fully disclose everything you know about the property. If this is not done correctly or to the appropriate detail a buyer has the grounds to sue you and without the proper documentation to protect you, you will lose. This could sound like the opening to a twisted Stephen King novel involving a clown who likes to invest in real estate and terrify his victims with baseless lawsuits, but unfortunately this happens more often than not.

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My closing team consists of a transaction coordinator and two full-time compliance officers. They work with me to review every single document for accuracy during the course of the transaction. I can’t stress how important these additional sets of eyes are. We know the steps and guide our clients, providing protections from the clowns out there. This careful review can be the difference between selling your home successfully and a gavel dropping not in your favor. A risk that only you can decide if worth taking.

Hire A Professional (Always)

When presented with the above 4 reasons my friend thankfully reconsidered and sold his home in record time at a great price. During the transaction he even mentioned a few of these points, thanking me profusely for saving him from the potential pitfalls.

When it comes to my taxes, a business contract, or even my haircut I’m very happy to hire a professional to make sure it is done right. The consequences can hurt your pocketbook, reputation, and your ego. Even if it isn’t me, make sure you hire a REALTOR to sell your home. You won’t regret it.
November 22, 2016
A Don Draper Character Study: Selling Your Home in Today’s Market

Unless you’ve been living under a rock over the past 10 years, I’m sure you’ve come across an episode or two of AMC’s Mad Men. In my opinion, this show is one of the most prolific in recent television history. Set in 1960s Manhattan the show is a well executed time capsule of its characters and our nation in a massive social shift. Tackling topics like sexuality, civil rights, feminism, and even the perils of improper lawnmower operation Mad Men brings you back to a time when things were cheaper, but certainly not any simpler.

The show’s polarizing, disturbed, and gifted main character is the incomparable Don Draper.

Yes, we eerily enjoyed watching him twist in the wind on many occasion as he attempted to navigate his tumultuous past, multiple scorned lovers, and clients and colleagues plotting against him at every turn. For me, however, it is the scenes that show Don in his element, the pitches, that have stuck with me over the years.

This post is dedicated to the man formerly known as Dick Whitman as when presented with the difficult challenge of marketing a home in today’s real estate market I can honestly say I’ve sought the Lucky Strike smoke soaked wordsmith for a helping hand of inspiration. A moment commonly referred to in the marketing game as the “What Would Draper Do?” moment. In honor of this I present to my top 3 Don Draper campaigns and how I think they can help you sell your home. So, go ahead and pour yourself an Old Fashioned and read on.

1. Mark Your Man

There is a scene in the first season of AMC’s Mad Men that sticks with me to this day. Fictional Manhattan based advertising agency Sterling Cooper is pitching the heads of Bell Jolie Lipstick on a very different approach from what they have done in the past. Rather than parade the hundreds of lipstick shades available, they are focusing on one powerful idea that differentiates them from anyone in the lipstick business. A campaign centered around three words, ‘Mark Your Man’. The Belle Jolie guys aren’t immediately impressed as you’ll see in the clip below.

Every woman wants choices, but in the end none wants to be one of a hundred in a box. She’s unique, she makes the choices, and she chooses him. She wants to tell the world he’s mine…you’ve given every girl who chooses your lipstick the gift of total ownership.

Those words literally hit home to me. Was I marketing homes in a way that would generate that kind of feeling to a potential buyer?

I couldn’t help but feel that the current state of real estate marketing was falling into the Belle Jolie category. Sticking to old guns, re-running the same work, and following a sort of unspoken template handed down from generation to generation of real estate agent. It is thought leaders like Don Draper, or more accurately the Mad Men creators that have inspired all of us to look at things differently. We will have some fun in this post delving into the troubled, yet genius mind of Don Draper, and pulling some very poignant parallels to selling your home in today’s market.

Ask anyone and they will tell you that the market has changed. We’ve officially moved into a buyer’s market. The days of quickly ascending prices and homes flying off the shelves is gone. Competition is stiffer, buyers are pickier, and you need to sell your home. A climate like this calls for inspired marketing, creative thinking, and plenty of Canadian Rye.

2. It’s Toasted

If you don’t like what is being said, change the conversation.

One of Draper’s most transcending phrases he makes over the course of the show is this one. It was only appropriate that is first said in a smoke filled room, which suddenly clears as the words are being uttered. The tobacco tycoons of American Tobacco are trying to weasel there way around new surgeon general restrictions on how they can advertise their Lucky Strike cigarettes. Don asks Lee Garner Sr. to go back to basics and run him through how their cigarettes are made stopping him at ‘we toast it’. And just like that ‘It’s Toasted’ campaign is born.

Interesting thought isn’t it? Instead of playing in the weeds with the rest of the cigarette companies who were trying to dance around surgeon general warnings and push doctors smoking or promoting a safer cigarette. Using ‘It’s toasted’ focuses the attention away from the negative.

Now, I’m not comparing real estate to cancer causing cigarettes, but the campaign concept is one that we need to remember today. Too often agents focus on the outside challenges a house might present, not highlighting the benefit enough. We apologize for the home rather than sell it. There are always going to be homes and specifically neighborhoods that have unique features that don’t appeal to a large general audience, but it could be that feature that ultimately finds you a buyer.

Every home is going to present you with a list of reasons of why it might not sell. Tough location, odd floor plan, you name it. Rather than spending time on things you can’t change, I zero in on what makes the home unique and build a buyer profile that would overlook or maybe even find the home’s challenging features as benefits

It could be a urinal. Maybe it’s a raised bathtub in the middle of the master bedroom. How about a Pepto-Bismol pink oven? What might be a turn off to you could be an ‘It’s toasted’ to someone else.

3. The Carousel

Kodak has created the ultimate slide projector and are looking for a campaign that will get people to buy projectors that already have projectors. This new device allows you to load numerous slides and advance them using the original technology, the wheel, but how can an old technology be sold as something new and exciting? Don knows.

This is, without a doubt, one of the most personal and powerful pitches Don delivers. It comes at a critical turning point in his life as he is yearning to have the family that is projected on the screen and for the first time we get a chance to see him in fragile, yet tender Norman Rockwellian moments. We see images of his wedding day, Don draped over his pregnant wife’s belly, and finally, sharing a New Year’s Eve kiss.

Technology is a glittering lure. But there is the rare occasion when the public can be engaged on a level beyond flash, if they have a sentimental bond with the product. Nostalgia. It’s delicate, but potent.

Home ownership has long been part of the American Dream. In recent years some of that allure has been lost. We have the crash of 2008 to hold responsible. Many buyers are slower to move, their lives hanging in the balance, and unsure if buying a home is the right thing to do. Shall they get on ‘the Carousel’ or not?

The circumstances of the market may change, interest rates may go up and down, but the fundamental foundation of home ownership endures and when selling a home to this audience there is nothing wrong with pulling a heart string or two. Memories are made in homes and maybe your home could provide those memories for a new buyer. Isn’t that what we envision them doing when they move in anyway?

Yes, the home has a kitchen with stainless steel appliances, but why not paint a picture of what great events can happen in the nerve center of the home? The backyard might have water tolerant landscaping but how many imaginary Super Bowl winning touchdown passes will be thrown on the newly laid artificial turf?

It isn’t manipulation, but rather providing motivation and inspiration of what your home could provide that has little to do with square footage. Yes there are numbers involved and they have to work, but that isn’t why people buy homes.

With every home I get the opportunity to sell I tap into that nostalgia, creating a deeper bond, and it is then, and only then, can a home purchase be made.

Make It Simple, But Significant

Yes, Don was ordering a drink when he uttered these words, but I apply them to every marketing campaign I present to the real estate world. There are so many gems like this throughout the show that can’t help but make me think that the creators of Mad Men purposely used the show as an opportunity to teach just as much as it has entertained. I sure hope you found this entertaining as well.

Should you want a pitch of your own on how I can help you sell your home faster than you can say ‘Zou Bisou Bisou‘, please contact me.

February 3, 2016
Ventura County Real Estate Market: What the Heck is Going On?

I feel a change comin’ on. – Bob Dylan

Just like the wind that’s blowing across Ventura County right now, the real estate market is moving in a new direction. Here’s what I’m seeing.

Prices Have Leveled Off

For some time it has been a very strong seller’s market. When pricing homes you could look at the last handful of sales in a neighborhood and tack a few tens of thousands and just like that, you’d have buyers fighting over it and you’d be in escrow before you could say “equity”.

The last couple of months we’ve started to see a flurry of price reductions and sold values under the asking price. The buyers who used to be fighting over properties are now being romanced like a reality dating show with sellers hoping they receive the final rose.

Requests for Repairs are Being Answered

During the escrow process the property goes through inspections. The inspections identify issues the home might have and so the buyers can make an informed decision on whether or not the home meets their needs. It is also an opportunity for the buyers to ask the sellers to repair items they feel are important before the sale goes through.

Having been on both sides of this process many times I remember this process going very differently a few months ago. I would caution buyers to be very careful in what they requested, focusing on only health and safety issues, because anything more than that could potentially upset the seller and put the home back on the market and back to the drove of buyers waiting in the wings.

Sellers are now finding themselves put in a difficult position now because those droves of buyers don’t seem to be there right now. Because of that the laundry list of repairs doesn’t seem so ‘out of bounds’. Depending on the seller’s motivation they are more willing to hear the buyers out and in the process accept more of the repairs as part of the cost of doing business in today’s market.

New Regulations are Protecting the Buyer

TRID is here and long story short, it requires a new disclosure being presented to the buyer from their lender that outlines all costs of the sale much earlier in the transaction than before. This is a good thing, but does present a challenge to sellers to provide information in a more timely manner and can add days or sometimes weeks to a transaction when not executed correctly.

Interest Rates Continue to Be at Historic Lows

Money continues to be cheap and it looks like it will stay that way until the end of the year. We are in rare air here as there has not been a better time in some time to purchase a home at a great price and not have to pay through the nose to get it.

So What Does This All Mean?

You guessed it, we are in a buyer’s market. So if you have been on the fence about buying it’s time to come down and start looking.

Should sellers run and hide? Absolutely not. Ventura County continues to rank highly as a great place to live and continues to be in high demand. Can you list your home for $5o,000 over what the last home in your neighborhood sold for? No, but if you price your home right and repair the loose odds and ends to alleviate any doubt in a buyer’s mind you can also strike while the iron is hot.

Need a Navigator in All of This?

Of course, I’m here to help you on whichever side of the ball you find yourself. If you are looking to buy please go to my website at www.sambenner.com and feel free to search among many great deals out there right now. If thinking of selling go to www.venturacountyhomevalue.com and instantly find out what has sold recently in your neighborhood, no questions asked.

November 10, 2015
Spring is for Sellers

Spring is, without a doubt, the best time of year to sell your home. With today being the first official day of Spring, our first rain of the year falling, and little league baseball kicking into full swing one can’t help but feel that Spring is in the air. In real estate we refer to this as ‘the season’. This is the time when most buyers start to think about buying. Here’s why:

All in the Family

Families with school aged children typically only make real estate moves during this time as to not upset the sensitive balance of the school year, leaving Summertime to bear the stresses of moving. Can’t say I blame them as with young children myself, even the thought of trying to move is enough to give me the cold sweats. If your home fits this buyer profile you can’t afford to wait until the Summer, you’ll definitely miss your window.

Low Inventory, High Activity

I think we are positioned for an even crazier Spring season than normal as there is not a wealth of homes available at the moment. What better time than now to start a feeding frenzy?Those sellers who grasp this opportunity to be one of the last burgers at a BBQ will see first hand what lengths buyers will go to make that last tasty morsel their own.

Buyer Pool is Deep

With interest rates still incredibly low and creative financing programs starting to resurface we can confidently say that their are plenty of qualified buyers willing to dive head first into a transaction with you. Even those potential buyers that were the unfortunate victims of the baloon burst are now riding high again as they have had time to rebuild their credit and banks are even willing to offer ‘fresh start’ type programs for those who have had slip ups in more recent history.

Technology is at Buyer’s Fingertips More Than Ever

With the litany of online tools available to buyers there is little doubt that your home will be found, as long as you are working with an agent who knows how to leverage these tools properly. Leveraging the big dogs like Realtor.com, Zillow, and Trulia and pairing them with social networks like Facebook, Twitter, LinkedIn, and Instagram is a sure fire way to get the looks and most importantly the high quality offers sellers are looking for. It definitely takes a holistic marketing approach that is much more than sticking a sign in the yard and putting out finger sandwiches. To effectively get as many looks at your home as possible you must have all online tools in play, working together.

You Do Not Want to Go This Alone

In a market like today’s you need an agent who is willing to do everything it takes to get the deal closed. Every stage of escrow has its unique challenges whether it be inspection, appraisal, and, new for Ventura sellers, the new sewer lateral ordinance. With an agent by your side you can rest assured that things will be handled professionally, in your best interest. Who likes drinking Spring’s first ice cold lemonade solo anyway?

Spring into Action

If you see what I’m seeing, a great opportunity to get your home sold for top dollar, reach out and I’ll be happy to do a no-cost, no obligation home valuation so we can see where you’re at and if you’re ready to ‘spring into action’.

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March 20, 2014