Bad Sellers vs. Smart Sellers: What Actually Gets You Top Dollar

Drew Hendricks00:26

Welcome to We Fixed Real Estate, W F R E ninety seven fifty. Currently working on a little jingle to start it off, but

Fred Glick CADRE#0150761500:34

Okay.

Drew Hendricks00:35

it’s not there yet. So today we’re gonna talk about the worst sellers and transition into the best sellers. Fred, how’s it going

Fred Glick CADRE#0150761500:43

For sure.

Drew Hendricks00:43

today?

Fred Glick CADRE#0150761500:44

Groovy dude, how are you? It’s the end of August and we’re all sweating everywhere we are, except, you know, it’s close to a hundred out in out in the basin in LA and but it’s sixty five degrees in San Francisco. So

Drew Hendricks00:58

Mm-hmm.

Fred Glick CADRE#0150761500:59

San Francisco companies that sell t shirts downtown make a ton of money.

Cause people who come from wherever and don’t research and think, it’s California. I need shorts and a t-shirt. Cause they see pictures of people on the beach.

Drew Hendricks01:16

Uh-huh.

Fred Glick CADRE#0150761501:16

No, San Francisco, 65 degrees.

Drew Hendricks01:20

So cold in the s in the summer.

Fred Glick CADRE#0150761501:22

And it’s August. Hello. So whatever.

Drew Hendricks01:25

They’ll they’ll get the mid

mid September it’ll heat up there. Mid September to October’s

Fred Glick CADRE#0150761501:29

yeah. Yeah. It it’ll it’ll get

Drew Hendricks01:31

when they get their summer.

Fred Glick CADRE#0150761501:33

Yeah, check your weather, your favorite weather app for the details before you go,

Drew Hendricks01:37

Mm-hmm.

Fred Glick CADRE#0150761501:37

kids. But luckily Candlestick Park is not there anymore. Because that would be ugly.

Drew Hendricks01:46

that was cold. Yes.

Fred Glick CADRE#0150761501:48

Brutal. Wind just.

Drew Hendricks01:50

Mm-hmm.

Fred Glick CADRE#0150761501:51

And speaking of that, in San Francisco, Hunters Point may be the only place that’s got any pr where in the city with single-family houses that sort of

have decent prices without people killing each other. We mentioned this f three, four weeks ago. We’ve been living this. We’ve been putting offers in and getting laughed at.

And the other day I got a note on one of the houses where they had

Not one, not two, not three, not ten, not twenty, not thirty, but sixty-nine disclosure packages out. And I saw today it went under contract because they had an offer date yesterday. I i it

it’s cuckoo for Cocoa Puffs kids. If you’re looking for a nice single family house in San Francisco, in you know, a nice neighborhood, forget it. You’re gonna pay out the wazoo.

We’re we’re

Drew Hendricks02:43

yeah and

Fred Glick CADRE#0150761502:43

currently in as a backup offer on one that was a cash deal, so you know, it’s never gonna happen. But yeah. Yes.

Drew Hendricks02:51

And mainstream media is now picking up. We’ve been talking about this for months. This AI boom

where suddenly there’s like every week there’s new newly minted millionaires that really just for the first time they can just buy whatever they want. So you’re

Fred Glick CADRE#0150761503:02

And

and here’s and here’s something important to realize. we all thought a few weeks ago that the people at OpenAI and Anthropic weren’t going to get their money yet. They were gonna wait for the IPOs to happen and then they wait six months for the lockout to end, and then they get their money. Well, no. What open AI is doing is saying to these people with stock options is look, dude, we’ll buy it from you now.

Drew Hendricks03:30

Mm.

Fred Glick CADRE#0150761503:30

And

what that means is their company will own so many shares. They’ll be in bigger control. And they’ll also be in a bigger control of the price. So if the and it’ll be less people selling in six months after that, so it doesn’t take a nosedive. So those people are gonna start getting their money soon and start buying. So it’s just gonna get kookier. And we mentioned this last week that August is usually quiet and had a whole

Drew Hendricks04:00

Ha not now.

Fred Glick CADRE#0150761504:00

You can check

the TikTok on it. So absolutely nuts in California when the rest of the country

Drew Hendricks04:08

Least least your

Fred Glick CADRE#0150761504:09

is bitching about sales are slow. Well I’m not here, dude. Not here at all. So

Drew Hendricks04:15

Yeah,

it’s really the the pockets. California’s big. I saw some something on Reddit where there’s so many thousand homes for sale in Galveston, Texas, that they just can’t give away. And and then the Airbnb up in

Fred Glick CADRE#0150761504:26

Yep. The overbuilt in Austin.

Drew Hendricks04:28

the Airbnbs up in Joshua Tree since they stopped being allowed to have that Airbnb thing. Joshua Tree might be a place to look if you want to live there.

Fred Glick CADRE#0150761504:38

You can buy land for like 10 grand, 20 grand, 30 grand, and pluck down some prefab thing. Some of them have water coming to them. If not, you get a well or you get water delivered, you get satellite internet for power. If you actually it you know, solar to power

Drew Hendricks04:58

Mm-hmm.

Fred Glick CADRE#0150761504:58

things, and for obviously, internet that way. So Joshua Tree makes a heck of a

of sense if you want to find something affordable. Yeah, it’s going to

Drew Hendricks05:10

Mm-hmm.

Fred Glick CADRE#0150761505:10

be freaking hot. But also the idea is do one of those 3D printed cement houses and it’s cool as heck in there without you having

Drew Hendricks05:16

Mm-hmm. Mm-hmm.

Fred Glick CADRE#0150761505:19

to spend gazillions of dollars on air conditioning.

Drew Hendricks05:23

Mm.

Fred Glick CADRE#0150761505:23

there’s so there’s so much out there.

Drew Hendricks05:25

That that’s smart.

Let’s transition to stupid. You mentioned it we’re gonna talk about the stupidest buyers. the stupidest sellers.

Fred Glick CADRE#0150761505:29

Well well not n s yeah,

so we had a seller up in Washington in the Seattle area and he had a house that was it was just okay from the outside. And it’s in an area that had good schools. kind of a you know, balanced demand between sellers and buyers

is basically what we we use this website called

Atos that kind of gives us this information. It’s generic, we use it a little bit. So we the guy, when my agent went to meet with him, he had redone the first floor, looked really nice. Second and third floor, he really didn’t do anything. He cleaned the carpets. The carpets are from 20 years ago, 25 years ago, something like that. So they are worn, but they’re clean. And he hadn’t painted upstairs.

And we basically said to him, look, if you want to get, and he wanted top dollar. He wanted what everybody else is paying for new construction. Same basic house, same basic price, same basic layouts and everything, but upgraded everything. So we said to him, look, yeah, maybe, maybe you get close,

but you’re gonna have to do this work, or it’s not gonna happen. Because if not.

Here’s what’s gonna happen. You’re gonna list it for a ridiculous price. Nobody’s gonna come to see it. And you’re gonna keep dropping your price, dropping your price, dropping your price. After a while, all the agents know it’s a dog. They’ve seen it on the inside or they’ve seen the pictures. And you’re gonna get eight eight fifty if you’re lucky, six months from now. Because Seattle’s not booming booming. Yeah, a house in Bellevue that’s perfect with a 10 school district is gonna go quickly, but

In this area, it wasn’t. I mean, it’s just we couldn’t make him understand that. He’s getting divorced, or he’s gotten divorced, and now we know why. He’s a bit pig headed and just doesn’t see the forest from the trees because it’s not about what sellers, here’s the key thing, it’s not about what you want for the property. It’s what a buyer is willing to pay. They’re the ones putting the money out, getting the mortgage, making the 30 year obligation.

It’s not just because you think I have this and I have gold plated blah blah blah. You know, it doesn’t work that way. I wish it did, but it doesn’t. It you you have to understand the realities of the market. We always look at a seller through a buyer’s eyes and a buyer through a seller’s eyes. Because that’s the only thing that makes sense. You know, you’re gonna put an offer in, you gotta have a seller willing to sign the offer or

engage with you. You know, even if you put in a low offer on one of my listings, you’re not insulting us. you’re trying to put in a better offer. And yeah, that’s you, but we’re not gonna let it happen. We’re gonna counter you at a bigger price. But you know, you gotta look at it like the seller if you’re the buyer and this and the buyer if you’re the seller. That’s that’s really amounts to. So we told him good luck.

And you know, maybe we get the listing after his first agent who’s going to tell him all kinds of somebody’s gonna tell him what he wants to hear. Okay? And they’re gonna get the listing and they’re gonna be all proud of the listing and then they’re just gonna have nobody to buy it. It’s it’s what it is.

Drew Hendricks09:09

makes sense some

of our best some our of our best clients are people that i’ve told them we’re not ready they’re not ready for us come back once you’ve fired your next agency because then you understand value but it is so it’s strange so he that’s like the worst possible scenario there’s people looking for fixer uppers but there’s not really anybody and there’s people looking for moving condition but no one’s really looking for a half done fixer upper

Fred Glick CADRE#0150761509:35

Yeah. Thinking, you know, here’s the top price in the market, you should be getting the top property.

Drew Hendricks09:42

Mm-hmm.

Fred Glick CADRE#0150761509:44

and he thinks it’s gonna sell in five days and he’s gonna be out, he’s moving on September nineteenth or twentieth or something. It’s like

Drew Hendricks09:52

We’ll see.

Fred Glick CADRE#0150761509:52

Drugs are bad, don’t do drugs.

Drew Hendricks09:55

So moving from an out of touch buyer or gosh, I get stuck on that. An out of touch seller to someone that’s pretty savvy. What’s the flip side?

Fred Glick CADRE#0150761510:03

man, we

are so excited about this. Can’t wait to show you, can’t wait to tell you. We can’t tell you the address because in Washington State, it’s the law. We can’t market the property before it goes to the MLS, which is fine.

Drew Hendricks10:16

There’s

Fred Glick CADRE#0150761510:16

We are a thousand percent in

Drew Hendricks10:17

no pocket listing.

Fred Glick CADRE#0150761510:18

agreement. No pocket listings, no compass listings that are secret.

Drew Hendricks10:21

Nice.

Fred Glick CADRE#0150761510:22

If you have an agent that tells you they have a secret listing in Washington by any company, you know, report them.

Just report them.

They’re stupid. Hey is speaking of st we’ll we’ll keep speaking of stupid sellers. If you

Drew Hendricks10:35

Ha ha.

Fred Glick CADRE#0150761510:35

list with somebody that’s got a private listing network, well we test the listing, we test the price. No, because they’re telling the buyers they could get it for a cheaper price, they’re telling the sellers they could get it for a higher price. Guess what? It doesn’t work that way.

Put it out to the public, put it out to every possible buyer so you have competition. Period done. End of sentence. There’s no other arguments for it. You know, they’re coming out with, the MLS, the that’ll create too many people bidding on the property and you’ll get less. No, you’ll get more.

Anyway, I’m I’m diving off into other things

Drew Hendricks11:13

Ha ha

Fred Glick CADRE#0150761511:14

as usual, but we have this seller in Washington.

In the Seattle area, that’s all I can tell you. But the cool thing about him is he is so smart. Him and his wife are brilliant. They’re creative, they’re great to deal with. They love that we’re on Slack. That was like the first thing. my god, you’re on Slack. They had used your basic vanilla realtors who were all part of the click and the cartel. And

They wanted the buyers, sellers wanted answers to certain things as to why they’re doing things and they wanted to do some certain things. I I don’t want to get into a lot of details, but anyway,

Drew Hendricks11:54

Mm-hmm.

Fred Glick CADRE#0150761511:55

the bottom line was the agents felt as though they were interfering too much with the process of what they were trying to do. And so they fired them. This is after 50 days on the market, too. And they went with their price recommendation and it was too high. That was another problem.

So here’s the thing with these guys. We are going to do as we normally do. we’ve gotten them all done. The inspections, the septic, well, everything. Here’s something we’re gonna do for sellers going forward.

We’re gonna run these inspections and we’re gonna pretend we’re a buyer’s agent. We’re gonna throw them into Claude and tell it to beat us up, make the seller suffer. What do

Do they need to do how much is it going to cost? All that kind of stuff. And so we’re going back and forth through it because Claude made some mistakes. He picked it up. We’re regenerating it. So in the end, not only are you going to get from us the actual inspections, you’re going to get the Claude synopsis and rundown

Drew Hendricks13:04

Mm-hmm.

Fred Glick CADRE#0150761513:05

in complete detail about those inspections. How much more transparent can we

Drew Hendricks13:09

Basically an an inspection playbook.

Fred Glick CADRE#0150761513:12

be?

Drew Hendricks13:13

Mm-hmm. Great.

Fred Glick CADRE#0150761513:13

Yeah, exactly. He loves

it. So we love working together. This is a kind of a it’s not a cookie cutter house. It’s not a vanilla tracked house. It’s a custom-built house that they built. There’s a lot of little nuances about it. It’s a lot of cool things about it. And he knows this. I mean he’s listed them all for me, but I can’t possibly memorize it and come up with it and be able to speak about it. We’re gonna write the description, it’s gonna have a lot, but

We’re gonna have the open house and we’re gonna tell people on the first one, my agent Chris, who’s gonna be there at the open house, but also the sellers are gonna be there. And then subsequently, the sellers are gonna do the open house. They

Drew Hendricks14:00

wow.

Fred Glick CADRE#0150761514:00

want to do them, and they’re happy to answer any questions from the buyers because in the end, we’re gonna make this listing so bulletproof.

By disclosing in transparency of everything possible, that there’s nothing to argue about. We’re even going to get an appraisal. And we’re going to get an appraisal

Drew Hendricks14:21

Yeah, it’s bigger.

Fred Glick CADRE#0150761514:22

for market to generate the market price. It’s going to be an opinion of value, but it’s going to be what somebody should actually list it for and what it’s going to sell for.

So unfortunately, you got to go and spend the money and get an appraisal from the lender. We have no

Control over that because of Dodd-Frank and all that kind of stuff. And don’t get me started on the price of the appraisals. That’ll be another thing. And as a matter of fact, I have a friend of mine who’s an appraiser from years ago. I’m going to have him on talking about that because he’s ready to retire, so he doesn’t care. Love those people. It’s like the guys retiring from Congress who vote no. You know, I love them. They’re voting what everybody else is thinking, but can’t vote that.

So the seller’s gonna be there and I think it’s gonna be fantastic. So we shall see on that more to come.

Drew Hendricks15:20

Well that’s exciting. So the end is near.

Fred Glick CADRE#0150761515:24

The end. The end is near. Okay. well, yeah. Well, through

Drew Hendricks15:29

The end of the p episode’s also near too.

Fred Glick CADRE#0150761515:33

the miracles of video editing,

you’re gonna see this person who I’ve found on TikTok, our friendly TikTok.

Drew Hendricks15:41

Ha ha ha.

Fred Glick CADRE#0150761515:43

She’s an agent up in Michigan somewhere. I don’t know her, but she comes on in her company sweatshirt and her coffee.

And she says basically, I woke up this morning and like every agent, the first thing I do is I look at what’s new on the market. she gets her hot list.

We don’t get hot lists, we just have Redfin and Zillow send us alerts, which is much better than a hot list that you if you saw the the the back end of the MLSs, you would throw up. But anyway, she saw that w she was working with a seller to try to get a listing and he went and listed with another company.

So she starts complaining about this company because they say that they are experts in AI, and there’s some tech bros and they’re a new company. And I’m like, honey, you don’t understand. The end is near.

We use AI all the time. We use it to evaluate inspections, like I just told you that we did. We we form we actually can do, you know, what they call CMAs or

Get estimates of what we think something’s gonna sell for. we try to use it to pick up demand, we try to use it, we use it for descriptions of property. There’s a million things we use AI for. And it’s not just there’s some automated thing that everything goes through AI. No, it’s it’s a help. It’s not the the system. So you still need somebody.

Drew Hendricks17:12

Human driven AI powered.

Fred Glick CADRE#0150761517:14

Exactly. And you still have, you know, you take my brain of years of experience on how to negotiate and what I’ve seen and

that you can’t put that in AI and I’m sure they’ll eventually come up with a plug you just put in your ear or something and Claude

Drew Hendricks17:28

Neural link?

Fred Glick CADRE#0150761517:29

Claud will know. Yeah, it’s some neural link. Claud will take my brain and you know, then I don’t have to be then have to be around. But that’s fifty years from now.

Drew Hendricks17:34

Well, you need you need the like thirty, forty years of experience

to be able to tell I I when it’s wrong or when it’s hallucinating.

Fred Glick CADRE#0150761517:41

Yeah,

exactly. So she is like complaining about it and saying,

Drew Hendricks17:47

Okay.

Fred Glick CADRE#0150761517:47

this is just a for sale by owner with some doodads and ugh, AI is ugh. And it’s like, honey, the end is near. Okay.

Drew Hendricks17:57

Mm-hmm.

Fred Glick CADRE#0150761517:57

You don’t understand. This is the smarter people. I’m sorry, I have to say I’m one of the smarter people in this industry, which isn’t

Drew Hendricks18:06

We’re on the forefront.

Fred Glick CADRE#0150761518:07

hard to do.

You know, we’re just figuring it out and helping consumers and making it better, making it easier, making it smarter. And the flow’s gonna go.

So it’s not gonna be like, let’s have an open house and let’s have a broker’s open house and I’ll have everybody over of of wine and and cheese and and they’ll bring their buyers. No, the buyers go and Redfin and Zillow and get their alerts every morning. So and then

Drew Hendricks18:35

Mm-hmm.

Fred Glick CADRE#0150761518:36

they call an agent and say, Hey, get me into this property if there’s no open house.

That’s the way it works. You’re not out there giving out, you know, calling people, say, I just found this listing. They know about the listings already. They know where they want to live. You

Drew Hendricks18:50

Mm-hmm.

Fred Glick CADRE#0150761518:50

know, so what you did 50 years ago doesn’t work today. So the end is near. Hopefully.

Drew Hendricks18:58

I I guess if there’s a your relocation specialist, agent, you do need to go drive everybody around and educate them on the n neighborhoods, but that’s a whole different ball of axe.

Fred Glick CADRE#0150761519:10

Google Earth kids. Just drive around

Drew Hendricks19:12

Yeah.

Fred Glick CADRE#0150761519:13

on Google Earth. Better than Google Google maps and do it on a computer so you can see it better. But wow, Google Earth is it’s it’s fantastic. You can really t smell it out. Combine that with how loud dot com.

Drew Hendricks19:28

Mm-hmm.

Fred Glick CADRE#0150761519:30

Things like that. We got some other fun sites you can check it. What was that one about the hoods? It just had funny names for for neighborhoods all over the place. Yeah, that was a good one. Yeah. Anyway,

Drew Hendricks19:39

it was the yeah, I I forget about I I I remember seeing that. I forget. Hood score or something?

Fred Glick CADRE#0150761519:48

something hoods. I got it in my canvas. W by the way, when you sign up with us, we put you in a Slack channel, but in the Slack channel we have a canvas of all kinds of cool stuff.

Drew Hendricks20:00

Mm.

Fred Glick CADRE#0150761520:00

So

that’s one of the benefits of being with us that you get all these things. You get information about insurance. As I’ve talked about, you want to pre-approve the house for insurance before you submit an offer and all kinds of stuff like that. So

The end is near. Anyways, speaking of that.

Drew Hendricks20:18

The end is near, but you know without

any segue, what’s about what’s up with this portable mortgage I’m hearing about?

Fred Glick CADRE#0150761520:28

Okay, so there’s a a dude up for re-election in a very tight district that could go either way. So what does he do? He’s Mr. Consumer Friendly. Well, I’m gonna I’m gonna propose a law. Remember, proposal doesn’t mean it is law.

Geniuses, because people are on TikTok. there’s a new thing coming around where you can d-ding. I’m doing my Cartman imitation.

You can take your three percent loan with you. Well, here’s the problem: the law that he wrote doesn’t allow for any retroactive activity, meaning everybody who did it has got a two and a half percent fifteen-year fixed mortgage from 2001, 2021, I mean, can’t take it with them. He’s proposing it for the future.

Well, the future, let’s see, fixed rates are at about six point seven five now. Who the hell would want to take that along with you? You won’t. But also values have appreciated so much in some areas, but in some areas they haven’t. So if you’re selling your house and you don’t have much equity, but you need to buy the next house, you’re gonna need more cash if you’re buying a substantially higher priced house. So what’s the difference? You can’t use that mortgage.

But it might spur an industry of second mortgage lenders coming, hey, we’ll go behind that 3% mortgage on your new purchase. That’s kind of the only way to solve the problem, but it’s it’s just stupid. Just ignore it. It’s being used for politics, politics only. Fanny and Freddie sell their loans.

Drew Hendricks22:06

Something at first glance.

Fred Glick CADRE#0150761522:08

Yeah, Fannie and Freddie sell their loans into a mortgage-backed security, which you can buy into your own mortgage-backed security if you wanted to. They can’t.

Change the document. It is secured. That note is secured by a mortgage on a particular house. It’s got a do-on-sale clause.

Drew Hendricks22:28

Mm-hmm.

Fred Glick CADRE#0150761522:29

Do on sale means when you sell it, you gotta pay it off. So all these scumbag wholesaler guys who say, I’ll just take over your mortgage and it’ll be fine. And no, you’re still liable, number one. Number two, if the lender finds out, which they will because you’re going to get a new insurance policy, and the insurance person is gonna ask who the lender is, and they can tell that there’s a loan on it.

And when they send that form to the lender, the lender’s gonna see it’s got a new person on there who’s not on the mortgage. And guess what? Then they get a do-on-sale letter and it goes into foreclosure and they lose the whole thing. So all those idiots, just take over a mortgage. You can do it with they came up with some name of what it is. It’s like, dude, no. No, no, no, no.

I got nothing.

Drew Hendricks23:18

well, this has been a full of vim and vigor this episode, and a couple good tips in there too, and you know, we will see you next week. The coffee

Fred Glick CADRE#0150761523:28

No coffee, no espresso left.

Drew Hendricks23:30

the coffee’s empty, the show is finished, and that’s it.

Fred Glick CADRE#0150761523:36

W

F R E

Drew Hendricks23:38

Maybe next time a jingle.

Fred Glick CADRE#0150761523:40

There you go.

Drew Hendricks23:42

Okay.

Fred Glick CADRE#0150761523:42

Happy house running.