How can you really know if one listing firm can produce significantly better results for you? Comparing results between different homes, even in the same neighborhood, is uncertain because of the number of variables involved. But “Same Home / Same Market” comparisons keep those variables constant and reveals the true ability of a real estate firm.
As you review the properties below, keep in mind that at Hunter Rowe, our definition of MARKETING includes helping sellers PREPARE their homes BEFORE we put a FOR SALE sign in the yard. That means knowing what improvements will give our clients a 2x or 3x return-on-investment (in increased sales price) which also makes the home SELL FASTER.
MLS data shows we are very good at marketing (our sellers get 2.5x more showings than other listed homes in the same neighborhood) but it does no good to bring a flood of potential buyers if the product is not prepared correctly.
* The addresses have been blurred and numbers have been changed slightly while maintaining the integrity of the information to ensure confidentiality of other agents.
This home was on the market with different firm for 270 days at $354,900. The listing agent had asked the seller four times to reduce the asking price, but he had not agreed to do so. When the listing agreement ended, the seller asked Hunter Rowe to take over. We analyzed the home and identified seven items that needed to be addressed to increase showings and attract an acceptable offer. Four of the items did not cost anything. The other three items, including staging, added up to $1,150. We helped the seller make the changes, and increased the price by $5,000 to $359,900. We sold the home in 33 days for $345,000.
|
$345,000 |
Sales Price | |
| – |
$1,150 |
Preparation |
| – |
$330,057 |
Estimated sales price without improved preparation and marketing* |
| = |
$13,850 |
Estimated increase in net proceeds to seller (in 33 days) |
*MLS data shows that if a home is unsold after more than 75 days at a given list price, then (in the absence of improved preparation and marketing) the actual sales price will be approximately 7% lower than list price. Typically, a 4% reduction in list price would be necessary to attract showings and an offer; then another 3% would be lost during negotiations (explained in part by the lack of negotiating power after so many days on market).
This home had been on the market for 224 days with three different listing firms. The seller was convinced the steep backyard was the reason the home was not selling and this challenge could not be overcome. We acknowledged that issue, but identified six other items that needed to be resolved before buyers even reached the backyard. Three of the items did not cost anything to fix. The remaining three items, including staging*, cost the sellers $1,950. We kept the price the same, at 415,000, and sold the home for $414,900 in 4 days.
|
$414,900 |
Sales Price | |
| – |
$1,950 |
Preparation |
| – |
$385,950 |
Estimated sales price without improved preparation and marketing |
| = |
$27,000 |
Estimated increase in net proceeds to seller (in 4 days) |
*For most homes, staging (which includes de-cluttering, arrangement of existing furniture, and decorating) is a critical part of our plan to sell most homes for the best price in the shortest amount of time. There is big difference between effective staging that increases the probability and amount of an offer, and staging that ineffective.
This home had been on the market for 224 days with two different listing firms. The seller was referred to Hunter Rowe by her attorney. Based on our recommendations, the seller moved out of the home and repainted the kitchen and dining room. The total cost of preparation, including staging, was $1,450. We increased the previous price by $900, from $229,000 to $229,900. We sold the home in 24 days for $222,500.
|
$222,500 |
Sales Price | |
| – |
$1,450 |
Preparation |
| – |
$213,970 |
Estimated sales price without improved preparation and marketing |
| = |
$7,080 |
Estimated increase in net proceeds to seller (in 24 days) |
This condominium had been on the market with a different firm for 77 days at $259,900. After extensive analysis, we advised the seller to remove all the furniture (she was already living in her next home), renovate the master bathroom, turn the third floor loft into a third bedroom, replace the carpet, and repaint several rooms. We managed the work with our vendors at a total cost of $22,000. Once the work was completed, the seller told us she would be happy with $250,000, and thought we should list it at the same price as previously (thinking the renovations would cause it to sell, but not increase the price). We urged her to list the home $30,000 higher, at $290,000. She agreed, making us promise to drop the price if we didn’t get an offer quickly. We sold the home in 22 days for $275,000.
|
$275,000 |
Sales Price | |
| – |
$22,000 |
Preparation |
| – |
$241,707 |
Estimated sales price without improved preparation and marketing |
| = |
$11,293 |
Estimated increase in net proceeds to seller (in 22 days) |
This ranch home had been on the market for 161 days with different firm. We were referred to the seller by our friend Tim Chalmers at Merry Maids. The sellers told us they were ready to reduce $10,000 from the previous asking price of $194,500. We recommended addressing four items, including staging (at a total cost of $2850), and advised them to increase the price by $400 to $194,900. We sold the home in 5 days for full price.
|
$194,900 |
Sales Price | |
| – |
$2,850 |
Preparation |
| – |
$180,885 |
Estimated sales price without improved preparation and marketing |
| = |
$11,165 |
Estimated increase in net proceeds to seller (in 5 days) |
This home was on the market with a different firm for 137 days, at $184,900. We were referred to the seller by the husband’s co-worker, and the seller also knew we had recently got the highest price in the neighborhood for a similar home on the same street. Upon visiting the home, we did not recommend any changes at all, and advised them to keep the list price the same. We sold the home in 0 days (before activating the home in MLS) for $180,000, to a buyer represented by one of our Home Selling Partners.
|
$184,900 |
Sales Price | |
| – |
$0 |
Preparation |
| – |
$171,957 |
Estimated sales price without improved preparation and marketing |
| = |
$12,943 |
Estimated increase in net proceeds to seller (in 0 days) |
This home was on the market with a different firm for 125 days. We were referred to the seller by a friend on his softball team whom we had helped sell and buy. This home had several significant issues in the kitchen and yard, which we helped the seller address at a total cost of $8,400. We increased the asking price by $10,400 (from $204,500 to $214,900), and sold the home in 7 days for full price.
|
$214,900 |
Sales Price | |
| – |
$8,400 |
Preparation |
| – |
$190,185 |
Estimated sales price without improved preparation and marketing |
| = |
$16,315 |
Estimated increase in net proceeds to seller (in 7 days) |
This home was on the market with a different firm for 182 days at $174,900. We were referred to the seller by a friend for whom we had sold several homes. We recommended for changes, including staging, for a total cost of $1,400. We listed the home at the same asking price, and sold it in 30 days for $172,000.
|
$172,000 |
Sales Price | |
| – |
$1,400 |
Preparation |
| – |
$162,657 |
Estimated sales price without improved preparation and marketing |
| = |
$7,943 |
Estimated increase in net proceeds to seller (in 30 days) |
This home was on the market with a different firm for 119 days, at a list price of $185,000. We recommended two changes plus staging, at a total cost of $2,450. We listed the home at $184,900 ($100 less than the previous asking price), and sold it in 3 days for full list price.
|
$184,900 |
Sales Price | |
| – |
$2,450 |
Preparation |
| – |
$172,050 |
Estimated sales price without improved preparation and marketing |
| = |
$10,400 |
Estimated increase in net proceeds to seller (in 3 days) |
We have many more examples and will publish them as we have an opportunity. If you would like to learn more about our approach we will be glad to talk with you. Please contact your Hunter Rowe agent, or call 919-740-7000, or send an email to info@hunterrowe.com.
