Impact of Property Presentation

September 4, 2005

In a softening real estate market it is of utmost importance to sellers that your home shows its best. Homes that are neat, clean, organized and has fresh paint will sell before those that don't and for more money.

Here's a case in point:

A recent listing client made the following home prep investments to their 3 bedroom, 2 1/2 bath, finished basement and 2 car garage to be listed at $425,000:

• Packed and stored all unnecessary household items to create an uncluttered, organized and more open environment.
• Replaced all carpeting with a medium grade in a neutral clor.
• Had all exterior outside wood rot repaired.
• Repainted all exterior woodwork.
• Repainted most of the interior in a neutral color creating a bright, fresh appearance.
• Cleaned the entire home inside and out.
• Refinshed and stained the deck.
• Staged by a professional home staging service.
• Spruced up the landscape adding flowers in beds, trimmed edges and placed hanging baskets across the front porch to greet visitors with color.

There were two other homes listed in the neighborhood:

• One was listed for $440,00; the same basic model just a little bigger.
• The other was listed for $425,000; same model with an added master bedroom and full bath above the one-car garage.

Our client received 2 valid contracts. We ratified one of the contracts for $5,000 more than the asking price. The status of the other properties are:

• The $440,000 property is now listed at $427,500 with a different broker.
• The competing $425,000 dropped their sales price to $399,900 and is still for sale.

Our clients understood the value of making their home show! They spent $11,000 on the improvements. We offered a fixed fee listing and a "one-stop-shop" where we paid for and managed the improvements. We will be reimbursed our expenses at closing. $11,000 was invested in the improvements but we saved this client over $6,000 in commissions and we got a contract at $5,000 over the list price. Net cost to the sellers to make the improvements: $0.

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