You might have seen my rant last month about wholesale buyers. These are the people who promise that they have a buyer for your house, cash, and that they will manage the sale for just 1% commission.

In my video, which you can see here, I broke down how one couple paid effectively 9.4% to sell their house.

Don’t get me started…

I’m looking for more examples of this as I am very concerned that people are not only losing their money, but they are opening themselves up to possible future lawsuits because they did not have a realtor to protect their interests.

There are really two types of deals that are lumped in to the term “ibuyers”. The first, covered above, are the companies that buy wholesale with the promise of lower commissions, usually leaving sellers without somebody to protect their interests.

The other type is commonly referred to as “al la carte” websites. Imagine AutoTrader, but for people selling their homes. It’s a different concept. Rather than you selling (unrepresented) to a buyer through their buyer’s agent at a lower commission, these sites are kind of do-it-yourself home sales.

What they promise is that you will pay only a flat, low commission. What you get may be something else entirely.

Before I get in to it, I want to say that ibuyer sites may not be the worst thing in the world if you are selling a home under $200,000 and you’ve been educated about the most important legal aspects of buying and selling a home.

Heck, if I thought I could create a website where I could also empower you while you sell your house, I’d be tempted to make it.

Regardless, if it meets your interests and you are sure you have the knowledge to do it right, go for it.

But, for now, there are important things to keep in mind.

• What are you being charged? According to our broker, sometimes commissions from 6% to 13% can be added, as we saw above with wholesalers. Read the fine print! Here’s a summary from our broker.

• Does the ibuyer website give you important information about disclosures, your liability and your responsibility. From what I’ve seen so far, they kind of just throw the paperwork at you and say “here are some basic instructions, go at it!” On one site I saw, it just instructed you do meet federal fair housing guidelines. Well, do you know about the six protected classes and how to make certain you are not discriminating against any of them?

• Is the valuation correct? What process does the ibuying site use to value your house? Can you set your own price? Licensed realtors are trained to do comparative market analysis and take in to account local expertise, which algorithms don’t necessarily pick up.

• What services do you think you are getting and how much will it cost to get better service? The range of services goes from just listing your property with no other service, to getting you to pay for add-ons, such as photography, signage and (probably computer-driven) marketing. What will it cost if you decide that you can’t do it all yourself?

• What do you know about the agent you are assigned and how much time does he or she have for you? You will be assigned to an agent, who is probably sitting behind a desk, getting paid a lower wage and helping 20 clients all at once. At the rates the charge, the only way to make a living is through volume, which means your needs matter less. It’s kinda like those 5-minute doctor visits we all love so much. Nope! No more time for you!

• Who will have your back if you are up against a more experienced agent? Just because you are assigned an agent on the seller’s side, does not mean you can match the experience or knowledge of the agent on the other side. Some services are so trimmed down that you do all your own negotiating. Even if that over-worked agent can negotiate on your behalf, do you think he or she will really fight hard when there are so many other clients to get through in a day?

• Does the agent assigned to you have knowledge of your local market? This is a huge deal, especially in historic neighborhoods and dense urban areas. I don’t care how crafty a computer algorithm is, it probably does now know the word on the street about that big development coming in at the end of your street, etc.

What is missing in all of this is the personal connection with an agent who specializes in an area or type of home and who will spend time with you –not just some limited instructions.

Just beware. You get what you pay for.

If you have experiences with wholesalers or a la carte sites, and you are willing to share, please let give us a call at 602-456-9388.

We are excited about our new listing in the Garfield Neighborhood. See details on our listings page.

This is historic home living with two structures on the lot, and perfect for an owner who would like to have a house mate who can help with expenses.

The front house, built in 1914, is 603 sqft and the guest house is 585 sqft.

These properties are smaller, but perfect if you live downtown, and spend more time outside the house than in. We know so many people who live downtown and talk a set-up like this.

The property was lovingly renovated in 2009, and has since been spruced up with new carpeting, external and internal painting and LED lighting. The front house, in particular, had many beautiful historic details brought back to life. The guest house was outfitted with a kitchenette and. Both got tankless water heaters, which is a must in Arizona.

Compare the cost of this property to renting in those massive buildings downtown!

The current owner used it as a rental since 2009 and would really like to see this tiny beauty go to a buyer or buyers who appreciate living in a historic home, and who could offset the monthly costs with a house mate in the guest house.

As such, she is less inclined to take an offer from a property renter or a flipper. She believes in the importance of that neighborhood connection.

If you’ve been looking for that tiny home opportunity, this might be it.

Have a look at this little video that we put together for the listing and contact us at 602-456-9388 if you have a similar property that you’d like to sell, or if you are looking for something like this for your next home..

The State Historic Preservation office has just released the results of a “charrette”, which took place last year at this time in an effort to begin to plan the future of the State Fairgrounds.

You can get a copy of that report here.

There is a lot of history and background to cover if you want to understand what’s going on here and why it is important.

But, before we do that and for those of you who don’t know what a charrette is, here is a definition from the report:

“A charrette is an intensive planning session comprised of formal and informal meetings, held over a short period of time for the primary purpose of collaborating on a vision for the future. Public agencies, private citizens, design professionals and stakeholders are encouraged to collectively formulate a plan for development and/or revitalization of a facility, urban area or neighborhood.”

To put this in to context, it’s important to know that our State Fairgrounds is owned by the State of Arizona, even though it is in the city of Phoenix. So, the Arizona legislature and the governor have the power to decide what to do with it.

Unfortunately, for decades the legislature and governor have failed to fully fund historic the preservation of the fairgrounds.

This has been true of both Republican and Democratic governors, although we have not had a Democratic Legislature since the 1960s.

Still, this has had a huge impact over the years. Neighborhoods that surround the fair are greatly affected by the condition of the property, and that has an impact on people’s property values.

So, it has been frustrating over the years to see that the legislature has even periodically swept funds from the State Fairgrounds, which could have otherwise gone to historic preservation.

In 2014, after decades of neglect, this came to a head when the fairground board made the choice to knock down the historic WPA Building on McDowell. This structure has important ties to the reforms of the 1930s that were meant to bring the US out of the great depression through the Work Projects Administration.

Many of us rallied and were able to stop the bulldozers. Since then, it’s been a long road on which we are continuing to try to find funding to begin renovations on the building, from city, state and private sources. We still have some way to go on that.

And, that is only one of many historic buildings on the property.

However, that event sparked a renewed interest in the fairgrounds. As the city has become more dense, people are starting to look at ways that the historic buildings and the entire fairgrounds could be put to use more often throughout the year.

Those changes get us to the Charrette. After some initial calls to the public for ideas, and fears that the governor’s office was thinking of selling the fairground land, the governor’s office began working primarily with the State Historic Preservation Office to generate ideas of what could come.

It is worth a few minutes to skim the report, as some of the ideas that came out of that weekend a year ago are very inventive. There is very little money to work with, and these creative community leaders came up with some great concepts.

In the end, we are left with two major directions we could take: move the fair or keep the fair.

If we move the fair, which people have spoken about for years, then it is in the best interest of neighborhoods in Central Phoenix to have some voice about what will happen to the space. Right up front, we need to protect the historic buildings.

After that, we will want to make certain that the space is complementary to the neighborhoods. For instance, I have been told by developers that the only way they could make the space work would be to build large apartment complexes there.

This would be a non-starter for many people, especially those in the homes right next to the fair. Many apartments are over three stories and would look down on the neighbors’ back yards, which carries many privacy concerns. Furthermore, many apartment buildings tend to lose their luster in only a decade or so. This could cause problems for the neighbors.

While we need more owner-occupied and affordable housing downtown, we would not be likely to get both, were this land to go to developers of condos.

They would likely be higher priced condos, packed on to the acreage of the old fairground, which would exclude many people who need affordable housing the most.

And, none of that addresses what would happen to the colosseum.

The best approach would be to prepare for the exit of the fair with an empowered working group of thinkers from the city, the state, the county, ASU, the historic coalition, developers, historic preservation experts and housing experts.

This is a decision that deserves visionary thinking.

Were the fair to stay in place, then many of these same interests should still convene to consider what that looks like, while improving and re-purposing some of the buildings.

Under this scenario –and perhaps even the first one– the many historic buildings could be re-purposed in a way that re-invigorates the state fairgrounds as a point of community pride.

One developer made a suggestion that I thought was powerful: turn the fairgrounds in to a Phoenix version of Millennial Park. This would require taking over the west 9 holes of the Encanto Golf course.

Regardless, the charrette report will give you a great insight in to the various challenges and opportunities of the fairgrounds.

It’s worth a read while you are waiting for the next episode of Game of Thrones to come on.