Sell your House with Color

Sometimes a seemingly small interaction unexpectedly changes the way you fundamentally see things. Such an encounter happened to me recently. It altered the way I feel about using color to market San Antonio luxury homes.

A style some term "Transitional" is becoming as ubiquitous as "Tuscan" was 10 years ago. Just as people tired of faux paint done in beige, gold, and red, they will quickly reach critical mass with the white, grays, and chrome fixtures that can make you feel like you are living at Z Gallerie. To lazily steal from Batman, Color isn't the hero we deserve but it's the hero we need right now. 

Powder blue, gold, gray, and cream kitchen stands out. A little pattern added in white oak floors, tile, quartzite countertops, and the metal light fixtures.

I called a Realtor two weeks ago to discuss some feedback he sent me about one of my listings. He said to me "It showed like a Jason Glast house." I thought "Thank you???" but I had to clarify "What does that mean?" He responded, "You know, real clean and white."

The idea that the homes I represent and the brand I present could be summed up so quickly as "clean and white" threw me for a loop. I wanted to protest "I can't remember the last time I recommended white, I'm all about subtle variations of cream on the color wheel." But, I said thank you and hung up. As I thought about it though, I decided I am "guilty as charged."

When I gave up practicing law to become a Realtor 13 years ago, I decided to pursue the niche of luxury homes. My biggest challenge was figuring out what works in the San Antonio luxury home market. 

After lots of research I came to the realization that most luxury homes in the San Antonio area took a long time to sell and often sold for less than what the previous buyer paid. It was a very clear case of supply and demand deciding the fate of these homes. Homes priced under $250,000 ranged from 2-6 months of inventory depending on how hot the market was. In stark contrast, homes above $750,000 had 2-4 YEARS of inventory. Scary! 

But, when I drilled deeper into the numbers I noticed patterns. Every year, there were a few homes that wildly outperformed neighborhood averages for sales price, price per square foot, and days on the market. I saw some of these outliers in person but for many others I clicked through the photos online just like a buyer would. Initially, I thought the difference was that certain Realtors hired better photographers so the photos were superior. That was true but it was only a small piece of the puzzle. 

The key was actually that the interior of the home was light, uncluttered, de-personalized, and featured updated materials and fixtures. If the presentation at the home wasn't right the photographer's skill was nearly irrelevant.

I compared these photos to homes that lingered on the market or only sold once the price dropped to a "giving it away" level. The difference was striking. Most of the photos were dark, cluttered, personalized for the current owner and displayed features that automatically had a buyer thinking "I'll have to put in lots of time, effort, and money changing this." Not only did the homes not look good but they also looked the same. When there is lots of supply and little demand, you do not want to look the same as the competition.

This is where I went through a lengthy and crazy magazine phase to help me understand what looks good. I got my hands on any Elle Decor, Architectural Digest, Traditional Home, House Beautiful and Veranda I could find. These titles have been around a long time and the photos looked like the San Antonio luxury homes that sold much better than the competition. They displayed myriad styles and weren't too niche for my purpose. It became apparent that the luxury homes that struggled had little in common with the homes featured in design magazines.

Blue, silver, black, purple, and cream. This serene bedroom starts with an extremely neutral palette but introduces color with decor and furnishings. The black iron and metal seen on the windows, curtain rods and bed make for a bold frame. From House Beautiful magazine. 

It wasn't about the money that the homeowners spent. It was simply a style they preferred or were convinced was on trend. I've heard that Tuscan became such a thing on the Northside of town outside 1604 because the southern edge of the Texas Hill Country starts there and developers creatively compared the land to Tuscany. Interior design usually veered toward a theme I like to call "WINE." Lots of burgundy and gold with heavy curtains obscuring often pretty views.

But, it's hard to create an authentic and classic Tuscan home because we aren't in Tuscany. The builders and architects miss or change details. Corners are cut to save money. It's no different than Las Vegas where The Venetian, Paris, and New York, New York are familiar copies but pale imitations of the originals.

Many custom luxury homes built between 2000 and 2013 featured this look. When these homes were marketed for resale they faced a triad of issues:
1) Out of style and/or cluttered;
2) They looked just like their competition;
3) Supply and demand for luxury homes favors a buyer.

When number one above is addressed it solves both two and three.

My job as a Realtor selling a home is to obtain the highest price in the least amount of time while eliminating stress for my client. I need to mitigate the issues above. My strategy is simple:
1) Make the house stylish and clutter-free;
2) Separate it from the competition;
3) Supply and demand for a stylish, clutter-free, and standout luxury home favors a seller.

I decided to go all in on trying to change colors from dark to light to make homes look larger, more modern, and clean. Paint makes such an enormous difference. Changing colors from a world of beige and brown to cream quickly showed excellent results. There were four or five variations of cream chosen to makeover these homes depending on the light. My listings looked better and different in photos and in person. My average sales price rose to number one in San Antonio. My strategy worked even better than I'd hoped.

When something works there is a hesitation to change. My clients that bought in to my requests saw tremendous results. That's why that call with the other Realtor I just had was an important wake up call. For several years now, national and state-wide builders have designed their new construction models with "Transitional" style. Light, painted cabinets, gray walls, glass tile, and chrome light fixtures became the new normal. Local luxury home builders pivoted toward this style as well so now we have a new trend.

Undoubtedly, this was a cleaner and more neutral presentation and a welcome 180 from previous trends. There is nothing inherently wrong with any color or material, however, when one style or color becomes pervasive there is the risk of a home dating itself and losing its uniqueness.

So, it's time for a shift toward color used in creative ways that still remains neutral and light. It can be tricky and there is no "one-size fits all" solution. I think the new, winning strategy for "designing to sell" is mixing striking colors with different textures and a mix of man-made and organic materials. Sometimes the color is on walls or on the cabinets. Sometimes it's in the metal on pendant lights. Notice how wood (brown isn't bad) is used to soften a space, bring natural texture to a scene, and act as dramatic focal point.

Dusty rose, brown, pewter and cream. Texture, color, and pattern added by the wood ceiling and metal chandelier

In these photos you see interesting colors but they do not make these spaces dark. Dark is challenging from a marketing standpoint because buyers and Realtors are looking initially at online photos, often on small screens like a phone. The first showing for any home is online today. That's how a buyer will choose if they will book an appointment to tour the house. Light shows better on a screen than dark does. That won't change.

As we approach 2017, think about using color to make your home standout in a crowded luxury home market. Don't hesitate to contact me if you are looking for advice. I can also recommend interior designers who are brilliant about using color in the right way.

Blue, gold, brown and cranberry. Pattern, color and texture added by rug, chairs, metal chandelier, wood beams and wallpaper. This is a combination I wouldn't have thought of but it's striking.

Sage, brown, pewter, copper and cream. I love this kitchen. The man made light quartz countertop and tile backsplash works beautifully with three different wood colors: painted cabinets, stained cabinets and stained floor. Also note the mix of metals in the vent hood, pendent lights, faucet and hardware.

Green, bronze, brown, and cream. I love this foyer. Four distinct textures working here: The hardwood floors in chevron pattern, the mirrored wall, marble table, and wallpaper. 

Lilac, blue, melon, cranberry, wheat, brown, cream. This eclectic room has a lot of pattern and color happening but it's peaceful and pretty rather than loud and overwhelming. Metals, fabrics, bamboo and leopard print carpet somehow works. Maybe because it's unexpected.

Beige, cream, gray, brown, and gold. Lest you think I don't care for beige, here's an example of classic neutrals used to great effect. It works because it's used in grasscloth and wood. The texture is what makes it different and exciting.

Jason Glast, Realtor / Attorney, an associate of Portfolio Real Estate, has been one of the top Realtors in the San Antonio area since 2003. Specializing in luxury homes, he has sold more million dollar properties than any other Realtor during his career. Earlier this year Jason Glast Luxury, his team with Elizabeth Priest, was ranked #1 in Luxury Real Estate by the San Antonio Business Journal. See JasonGlast.com or contact Jason at (210) 386-1833 for more information.

Mental Illness in Luxury Real Estate: The Curious Case of Fake Buyers

Fake buyers. "Is that even a thing?" Yes, unfortunately as a listing agent of luxury homes, I deal with them on a weekly basis. Large luxury homes attract fake buyers like a moth to a flame.

I find this topic fascinating because it's an unusual part of the human psyche. I also want other real estate pros to know how common it is so it's shut down quickly.

Let me define what a fake buyer is. I'll make up these definitions with some Latin words so it seems legit. I have no doubt there were fake buyers as far back as back as Pompeii.

Luxuria Fraudus Emptor: a buyer that can't afford a luxury home but acts as if they can in order to feel important or to deceive someone.

In contrast is the Luxuria Lookyloo Emptor: a buyer that can afford a luxury home but doesn't intend to buy one. This type of buyer is not really a problem. In fact, though this buyer doesn't intend to buy the home, once they see something they love, they may change their mind and buy the house. 

An example is the buyer that wants to build a luxury custom home. They aren't in the market for a resale home but they go look at them to explore neighborhoods, look at a builder's previous projects and get ideas for their new home. So, they schedule appointments to see resale homes. Again, they have no intention of buying one of these homes.

However, if they see something they like, an idea is planted in Luxuria Lookyloo's mind and it starts to grow. That's right, it's luxury home "Inception."

Leo dicaprio isn't looking to buy in San Antonio...Yet

This buyer interviews builders and learns that the home they want may cost a lot more and take much longer than expected. Once the costs and time factor of an architect, pool builder and landscape company become real, the buyer may become receptive to a home that is already built. 

Each year, I sell several properties where the buyer looked at the home and seems to like it but disappears. Sometimes they come back and buy the house months later. Inception happened but it took time to take hold. So, even though these buyers may seem like a time waster, they are not. And, of course, it's nearly impossible to spot the Luxuria Lookyloo upfront because they or their real estate agent don't tell you that they just want to get ideas for their custom home. Because they wouldn't get access to see as many homes. The key is they have money. And, that money buys impulsivity and the right to change their mind.

So, let's talk about the true time waster, the Luxuria Fraudus Emptor. This buyer cannot afford a luxury home but they will try to schedule appointments to see them. They aren't looking to steal ideas for a smaller home they want to build and they don't just enjoy looking at houses. The reality is that many of these people are mentally ill with narcissistic personality disorder.

From the Mayo Clinic's website: 

If you have narcissistic personality disorder, you may come across as conceited, boastful or pretentious. You often monopolize conversations. You may belittle or look down on people you perceive as inferior. You may feel a sense of entitlement — and when you don't receive special treatment, you may become impatient or angry. You may insist on having "the best" of everything — for instance, the best car, house, athletic club or medical care.

People with narcissistic personality disorder keep the facade up by touring luxury homes and demanding "big shot" treatment. If the Luxuria Fraudus Emptor is questioned about the source of funds for the purchase, they sense they aren't getting special treatment. As in the definition above they get angry. They deflect. They yell. They ask "Don't you know who I am?" 

They do everything except produce evidence that they have the money to buy the house. Because they haven't been involved in this type of transaction before they don't know that qualifying the buyer is a standard part of the process. 

The real buyer produces evidence of the capability to purchase quickly and respectfully understands the process. The fake buyer gets upset.

A big part of my job as a listing agent is to only allow qualified buyers to see the house. Overwhelmingly, sellers tell me that they only want qualified buyers to see their house. Often though, they don't understand how common fake buyers are.

Here are the main reasons why sellers only want qualified buyers to tour their homes:

1) It normally takes hours to prepare a large home for a showing;

2) Safety and theft issues

How do fake buyers even have the opportunity to see a home they can't afford? 

Many agents don't have the experience to understand why a buyer would waste time so they don't know the right questions to ask. Also, the process of qualification can seem awkward and confrontational. So, when a buyer says they are paying cash or they will get a lender pre-approval letter later, the agent may buy it. Some agents are more than happy to follow a potential luxury buyer anywhere, without proof they are qualified, in hopes they will stumble into a big commission.  

When I ask the agent for her client's qualifications before I schedule a showing, I'm just as likely to get anger or deflection in return as if I was asking a fake buyer directly. That's because the agent feels threatened - either that she is violating her client's confidentiality or that I'm causing her dream of a huge payday to shatter because I need her to dig deeper to make sure her client is real.

I get the confidentiality part. If that's the reason for blowback, at least it's coming from the right place. But, the skillful buyer's agent knows how to present her client's qualifications without violating their confidentiality. She knows how to obtain full access for her client. Sometimes this is a matter of getting written permission from the buyer.

Buyer's Agent:

"Jennifer, 123 Acorn Avenue requires proof of qualification before a showing is scheduled.  I know you want to see the home but you're hesitant to provide copies of a bank account today. May I tell the list agent you have been hired as a partner at Radiologists, Inc and send a Google link to the announcement of your hiring?"

Jennifer: "Yes, that's fine."

Agent: "Great, I'll have you put that authorization in writing and I'll contact the list agent."

In the above scenario, when that proof is brought to me and I show the seller, it would result in a showing 100% of the time. The buyer didn't provide a lender letter (she may be paying cash) or copies of her bank accounts. But, we have a name, a reason the buyer is coming, a reasonable certainty that she can afford the house and a stamp of approval of a local institution that presumably vetted her as a real person. That's about as good as it gets and frankly better than a lender letter (that many lenders will crank out without much scrutiny).

It's great to have documents but it's more important to provide evidence of why the buyer will be in the one-third of one percent of buyers that purchase a luxury home (over $1 million) in the San Antonio area. 

That's right, only one-third of one percent of home sales are above $1 million in the San Antonio area. 

With that number in mind, agents need to think critically to discover why the buyer is that rare unicorn. I'd love to see the fake buyer deterred from looking at luxury homes they can't afford.