Length: 2 minute read
I recently encountered a deal — as the seller’s agent — that illustrates how a firm understanding of the home-selling process and a commitment to high levels of service lead to a fantastic outcome.
The home my client was asking me to help her sell was quite nice but was in need of a few updates. I made a thorough assessment of the property and determined which fixes the seller should definitely make and which she could leave to the buyer to handle.
Using Maxavenue’s price elasticity modeling, I was able to identify the changes we could make that would most efficiently enable us to increase my client’s return on investment. While my seller was hesitant to spend a lot of money, I was able to demonstrate for her the returns these improvements would net. She agreed, eventually spending about $11,000 reconfiguring a couple of rooms, updating light fixtures, updating a bathroom, neutralizing interior paint colors and other additional changes.
In return, she saw her home sell for $526,000, and in my opinion, we may not have been able to get over $500,000 had my client chosen to not make the improvements. Bottom line: I estimate she got somewhere between 2X and 3X return on her investment.
Persona is Key
There’s a twist to this story. It wasn’t just the improvements that enabled us to secure a sweet selling price. For many sellers, it may be counterintuitive to accept an active contingent offer over other non-contingent ones. However, I knew in this case that accepting the contingent offer was the right option to get the best result.
After identifying the target persona for this home based on market research and analysis, we found contingent buyers that were willing to pay a higher price for the home. Traditionally, sellers prefer to accept a non-contingent offer; a contingent offer is less desirable due to the buyer needing to sell their own home first. However, in addition to the higher priced offer, I knew the contingent buyers were under contract with the home they were selling and were nearing the end of their option period. So, while we took a risk with the contingency, I encouraged them to accept the contingent offer.
A Happy Ending
In the end, my seller sold her home for more money than she’d expected and the buyers got the dream home they were hoping for.
In this case, a careful implementation of the Maxavenue’s Maximum Value Home Selling System® resulted in a win-win for all parties.