Inside Case Studies

Real examples of good and bad experiences with clients.
There are 7 articles written on this subject. The most recent 10 are listed here:

Value Range Pricing: Is it the future? Impact of Property Presentation

Conformity. What is it and why does it matter? Preparing To Sell in the Spring Surge Being upside down causes a rush of blood to the head A sad, sad, sad true story...help! The hardest thing we do in a buyer's market

You will find a complete Index of Articles by Category and by Month in the Archives.

May 3, 2007

Conformity is an interesting concept and one that I have not seen talked about in the Blog world. Here's the basic definition as provided in "the Language of Real Estate" by John W Reilly:

Conformity

1. An appraisal principle of value based on the concept that the more a property or its components are in harmony with the surrounding properties or components, the greater the contributory value.

2. The concept that maximum value is realized when the four agents of production (labor, capital, management and land) are in economic balance.

We see this principle in action everywhere. That's what "planned" communities are all about and what justifies the existence of home owner associations (HOA's). Almost every new development is planned to be in harmony within its confines supplemented with community amenities such as common areas, parks, recreation facilities and, often times, compatible retail centers.

So, the question is: What happens when an economic event, such as the building of a non-conforming home within a community that is otherwise in balance? I found the following article a couple of months ago on the Inman News Website that pinpoints the answer. Here is an excerpt:

Future neighborhood construction may hurt resale value
Factors that could scare off buyers
Monday, February 12, 2007

By Dian Hymer
Inman News

It doesn't take much to throw a buyer off track. Prospective sellers should keep this in mind as they prepare their home for sale. It's easy to concentrate on making your home look good but overlook other factors that could impede the sale.

Fear of the unknown will send buyers running in the opposite direction. For example, you may take pride in the fact that your home is located next to a vacant lot. There's no building adjacent to yours to obstruct the view or the quality of light.

From a buyer's perspective, the feature you relish might be a serious drawback. What if someone builds a monstrosity next door that blocks the light and diminishes the view? Many buyers will pass on a house like this and keep looking, particularly if there are many other homes on the market. Buyers who aren't dissuaded might require a price concession to compensate for the expected loss of value once the house next door is built. (emphasis added)

As a buyer, it is important that you and your agent perform due diligence to ascertain what future plans may be and what the local rules are controlling development and how strictly they are followed. As an agent I have two perfect examples of when good intentions may have negative economic impact:

• Builder constructs custom home home for his own family. A community in a local area has large lots (greater than an acre), no HOA and no restrictions on building other than county requirements. Builder buys a 2 to 3 acre lot with some woods, builds a beautiful custom, three level home with about 6,500 square feet of finished space. The problem: the neighborhood is what I call very "eclectic." The surrounding homes range from 20 to 30 year old ranch style homes, log homes, to colonials and everything in between (including run down shacks).
  
  Now the subject of selling this home: In a planned community, It would probably list at greater than $1,000,000. Since it was in a "non-conforming" neighborhood, It was listed in the high $800,000's and eventually sold after 9 months in the high $600,000's. Reference the Inman article above: it took a considerable price concession to attract the right buyer. This situation was brought back into "economic balance." There was a price at which a buyer overlooked the non-conforming nature of the area and focused on the bargain to be attained. This may not have been bad for the builder in this case because he minimized development costs by building it himself. Did he maximize value? Maybe, maybe not. Depends on his original objectives and motives.
• Conforming neighborhood with an undeveloped private lot. This neighborhood consists of colonials on 1 to 1 1/2 acre lots with surrounding open space, views of the local hillsides and abundant wildlife. The existing homes in a subsection of the development (not completely built out) range from about 3,000 square feet on two levels to the largest at a bit over 5,000 square feet on two levels. The homes in this subsection were built in the mid 1990's and incorporate architectural style of the area and building designs of the time. A range of home sizes but, conforming nonetheless.
  
  The empty lot, purchased from the original developer as an investment, was sold to a private, boutique, custom home builder. The builder proceeds to construct an 11,000 square foot home (on three levels) of an architectural style that does not fit the neighborhood. Blatantly non-conforming. Homes in this neighborhood sell for $600,000 to slightly over $1,000,000. The new home is listed at over $2,000,000. What's wrong with this picture?
  
  It makes absolutely no logical or economic sense. The builder in this case has every legal right to build what the county will allow. But, the consequences, perhaps unintended, could be devastating on the community. Does a $2M home in a neighborhood of homes with values averaging less than a million bring up the value of the whole. I think not. In fact, it may have the opposite effect. Could the HOA representing this neighborhood have a say in what could have been built on this lot? It could. Unfortunately, the HOA is not yet controlled by the homeowners. It is still controlled by the original developer. Somehow the county should have had a say besides zoning and building code. The original developer of the community should have had a say as they controlled the HOA and this had to pass "architectural review." The builder of this home needed to look at his plans, look around the immediate neighborhood and come to the responsible conclusion that his plan was economically "out of balance." No wonder builders have such a poor reputation in general. I suspect that economic balance will be achieved and somebody is going to be financially disadvantaged.

In the first case of a non-conforming area, the individual builder is totally responsible for his own decisions and the financial consequences.

The real question in the second case is: Should there be and can there be strict oversight and control of building in planned, conforming neighborhoods? In my mind, there should be better controls because the actions of one has a potential economic impact on many. I'm not sure it can be (or could be in this case) because ordinary citizens were not involved nor had responsibility to review the actions that impact their living environment. Counties and towns go to great lengths to protect the character of its "historic districts" and rely on significant oversight of proposed expansion and redevelopment within those areas. The same principle should be applied to planned, conforming developments as well. Maybe this is just a one off case that got out of hand because of the circumstance. So be it. The bottom line, as I see it, is no one used any common sense in allowing this to happen and the individual was not exercising any social awareness or consideration of his actions on others. I am not an advocate of legislating to protect an individual from making poor choices. I would advocate protecting the many from the impact of individuals making poor choices.

There are cases where very old neighborhoods go through redevelopment because the land value far exceeds the improved value of existing homes. In these cases, redevelopment can have a positive economic impact on existing owners. The theory here is highest and best use. More about this in a future article.

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March 31, 2007

The Washington Post published a good article this morning in the Saturday Real Estate section that every seller should read. Here's an excerpt:

The Science Behind the Sale
Patience and Compromise Prove the Winning Formula

By Sandra Fleishman
Special to The Washington Post
Saturday, March 31, 2007; Page F01

Nationally, there's more than a six-month supply of existing homes for sale. In some parts of Northern Virginia, the inventory is more like 8 or 10 months.

So how are successful sellers doing it? The basics triumph in a buyer's market, real estate agents say. Price, location and condition are uppermost.

And sometimes it just takes time.

Read the full article ...

The article continues with examples of four sellers in the Metro region and their stories.

Yes! Location, condition and price are key. And, being patient and willing to compromise are absolutely essential. In these times of market uncertainty (hmmm... not really uncertain, it IS a buyer's market), sellers need to be a market leader, not a follower. Another way to put it: there are sellers all around you that will be lowering their price to sell similar homes. Like it or not, they are the leaders and what they do has a significant impact on your selling position.

The post article reminded me of one I posted way back in November of 2005 when the signs of a cooling market were predominate. A note to my clients about the market is just as relevant today as it was 18 months ago...

Friends and clients,
This is the first of periodic market updates that we will provide you in this time of market uncertainty.

Attached are (current) market statistics for Fairfax (fx), Loudoun (lo) and Prince William (pw) Counties. You probably heard us talk about the sluggishness as well as reading about it in the local news. It's real. There are more listings available to buyers than any time in recent history. If you don't follow the frequent articles in our blog, you should. We probably do more market research than anyone else and give our opinions in a straightforward, unbiased manner.

What this means:

• Be realistic. Buyers are now buying the best for their money. Either show better for the price or reduce the price. Investing in paint, new carpet and staging when necessary yields a big return on investment. Also, Location, Location, Location are always the top 3 real estate priorities.
• Be flexible. Buyers are being more selective and expect more from sellers in price negotiations and perhaps subsidies for closing costs.
• Be logical: This is market dynamics. What your neighbor sold for last spring or last year has nothing to do with market value today.
• Be professional: Generally, work on your home done by a professional will be worth more in the long run. Buyers will be picky.
• Be patient. We can't know what the future may bring but we do know this:
  • The Washington Metro area economy is among the strongest in the nation. Jobs are being created at a rapid pace.
  • People moving to the area for jobs will need housing.
  • The market was over heated the last few years and it is now moderating to "normal", whatever normal is.
  • First time and "move up" buyers are looking further away from the Beltway because prices tend to be lower and quality of life better.
  • 25% of the homes sold in the last two years were by "investors" buying and flipping. Those that didn't flip soon enough are now stuck. That inventory needs to dissipate.
  • And, all the "real estate bubble" talk is feeding on itself.

Read the full article ...

I summarize this with the 5 Bs for selling your home:

1. Be realistic
2. Be flexible
3. Be logical
4. Be professional
5. Be patient

... and, DON'T B GREEDY! You will B utterly disappointed.

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January 2, 2007

I've had discussions with two potential clients in the last two weeks and both are upside down. Definition: they most likely will have to bring money to the table when they sell. The underlying problem is the same in both cases but with different circumstances. Here is part one of a two part series:

Seller 1: Enjoyed living in a 20 year old colonial on a good lot in a desirable neighborhood for nearly 19 years. They made several improvements in that time including an addition on the back of the home expanding the living area and finishing the basement. Seller 1 made the decision to "move up" to a larger new construction home in early 2005 (the beginning of the market turn) and took out a "line of credit" second to make the deposit. The appraisal on the existing home came in high as comps were those sold in the later part of 2004.

They were on the market in the spring at an optimistic asking price (aka: greedy price). One month after the initial listing, they closed on their new home and moved out. The listed home was now empty revealing all of the ugly blemishes. Two agents and 9 months later, the home has not sold. They lowered their price several times but always too late. They were following the market down, not leading it.

Upon visiting the home, we discovered several deficiencies. Deficiencies that would perhaps be overlooked in a strong sellers market but not now. Carpeting was badly worn and stained, the hardwood floors were awful and the interior paint was OK but not fresh. Using a buyer's eye, all I saw was work that would have to be done if I otherwise would consider this home. There are too many homes on the market that do not require "freshening."

The painful "blood rush" headache came when we advised that the work required on the home to be competitive is at least $5,000, the probable list price was $20,000 less than what they owed, and selling costs would most likely be in the $25,000 range and it might take a long time to sell. The rub: neither prior listing agents did them any favors. The first agent collected the "new home" commission with a reduced listing fee on the resale. The second agent did not advise their client on "freshening" to be competitive and continued the inflated asking price in a downward market. This is not to say that this client didn't have a hand in the greed price. (See Egocentric influences on pricing a home.)

It's always hard to be the bearer of bad news. I would rather not have the business than to mislead a potential client. I even advised them to get a second opinion from a reputable agent (like consulting before major surgery).

Furthermore, the seller's mindset at this point is to try and sell in the next few months and then go to plan B: list it for rent hoping the market will turn sometime in the future. The rental market is not all that great either.

Here's where a fee for service arrangement helps this potential client while paying us for our expenses: (A) client pays up front marketing costs (all the things we do to list and market the home) and then (B) pays a success fee if we are lucky enough to get a ratified contract that goes to close. The success fee pays for the contract to closing activities we perform. The total fee is much less since we are sharing risk.

The bottom line: There are many, many more of these stories...and they are being created as we speak (or write, as the case may be). Make sure you are getting the very best advice, you have all the data to make an informed decision and DO NOT over commit!

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December 20, 2006

I debated writing this for a couple of weeks now. This is a true story. It should cause outrage. I have changed the names, places, and specifics of the story to protect the participants and to avoid jeopardizing any legal action that may emerge.

This story starts several years ago with the dream of an immigrant that life can be better, fairer and more fulfilling in this place we call America. A family with three young daughters pursuing their dream in Northern Virginia. A christian family of high moral values. Parents are hard working. Maria is a supervisor at a nursing home and the proprietor of a licensed handyman business. Jose, her husband runs the handyman business. Handyman is a bit of a misnomer. Jose is a skilled craftsman. A master at custom woodworking and a superb painter. Jose and his few employees are in constant demand because of the quality of work, reasonable rates and untarnished honesty. Many of his clients give him "the keys to the house" as they trust him like part of the family. Jose never works on Sundays and is known to give sermons at his church. Maria speaks a little english and often needs someone to translate. Jose communicates in english well enough to get by but is often misunderstood.

This family was able to purchase a very modest home with their hard earned savings 3 years ago. A good price with an attractive interest rate based on good credit. Based on their hard work and desire to own a bigger home, Maria and Jose started their search for a "new home." They found the perfect potential home in a new development. We will place the time in late spring/early summer of this year. The plan was to pull equity out of their current home that enjoyed significant appreciation to make the deposit on their new dream home. In come the sharks for the kill.
Here are the facts to set the stage for a financial disaster:

• Spring of 2006 inventory of homes for sale was rising rapidly and sales were dramatically slower.
• New construction home priced in the $550,000 range with closing within 6 to 9 months.
• Jose and Maria hooked up with a lender by referral to refinance their current home, extracting equity to make the deposit on their new one.
• Lender advertises a 1.25% interest rate.
• Current home was appraised at $420,000 by the lender.
• They refinance for about $340,000 taking just enough out to make their $50,000 deposit and pay lender and closing fees.
• Maria and Jose close on the loan, make their deposit and are happy to have met their objective.
• Their first month payment was in the $1,400 range, well within their budget.
• Their second month payment was a shocking $2,800 with a note on the payment notice that the interest rate was 8.75% and the loan was "sold" to a national lender.

Shocked and in disbelief, Jose calls me to see if I could help him understand what had happened. Although I had a hunch at what they got into, I referred Jose to a reputable lender friend to review his loan documents. The result was as I suspected. They signed on to an option-arm loan program. Here is an overview as I understand it:

• Loan amount: $340,000
• Option Arm at 1.25% start rate with an adjustment after one month.
• Fully amortized 30 year rate at 8.75%
• Payment Options: $2,800 fully amortized, $2,300 interest only, $1,400 minimum payment with negative amortization.
• A $9,000 PREPAYMENT PENALTY if paid in the first year! Tha't right. They hope to sell their home and close on the new one in 9 months!
• The closing documents show the original lender/broker received a huge commission for closing the loan

At this point in time, Maria and Jose need to sell their home. It appears their new home will be ready in about 60 to 90 days. I visited their home and found that it was nicely cared for, on a good lot and has an addition off the entire back of the house adding about 500 to 600 square feet of living space. It was originally built in the mid 1950's. Some quick research reveals that there are 20 homes active in the neighborhood at an average of 97 days on the market with a maximum of 217 days. There is one under contract at 375,000 and was on the market 341 days. 43 have sold since the first of the year at an average price of $335,000 with a maximum of $385,000. Sales are running about 2 homes per month since August. Average seller subsidy is $10,000.

Doing an estimated net sheet at an "optimistic" sale price of $380,000 and sold in 90 days yields:

Sale Price	$380,000
Mortgage	$352,000	Includes negative amortization
Gross Equity	$28,000
Listing Commission	$0	If I do it for free
Selling Commission	$11,400	3% to get agents to show it
Seller Subsidy	$10,000	Based on averages to date
Misc Closing Costs	$900	Escrow, title, recording, termite
Grantor Tax	$380
Prepayment Penalty	$9,000	Robbery!
Seller Prorations	$3,400	Taxes, Interest, etc.
Total Selling Expense	$35,080	Taxes, Interest, etc.
Net proceeds	-$7,080	Estimate

Closing cost estimate on new home (cash required): ~$13,000. They are not going to have it.

Now, this is the question: Would a reasonable person make the decision to accept these terms with a short term objective knowing the negative consequences? I say not. Are they naive? Maybe. I believe they were taken advantage of, as in FRAUDULENT and PREDATORY lending.
They have consulted other lenders after realizing what they had done and have been offered a refinance package in the low 6% range based on their stated income and good credit. So, I don't believe the loan they got themselves into was sub-prime. Refinancing again now is NOT the answer. Doing nothing is NOT the answer. Investigating the broker/lender practice IS the answer. The optimistic selling picture painted above is just that, optimistic. I believe it will be several thousand dollars worse.

If you are equally outraged and believe you can help, call me, email me, meet with me. We need to get this disaster fixed for these good people. People that wanted to be in America, living freer, a place that is fairer, with rewards going to those with high values, that play by the rules and are not afraid of hard work. They deserve better. We all do.

I keep asking myself why he didn't talk to someone he knows and trusts before making this decision...........................

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August 1, 2006

As a real estate agent suffering through this extreme buyer's market, the hardest thing to do is convince my listing clients to reset price expectations. We provide articles on property presentation, comment on the meaning of market value and even provide great charts to put the current market into perspective. Sometimes all the data and examples in the world does not change the mindset of "gotta have my price!" There is nothing wrong with this mindset. It just won't get you where you want to be.

As a seller, if you are not willing to make your home "competition ready" and "lead" the market with "value pricing," you will become extremely frustrated that your home does not sell, you will get irritated with your agent and ultimately find someone else to take the listing. Consider these four scenarios of sellers and their agents responding to "current market conditions":

Read on...

• Seller A: Beautiful home. Nicely decorated. Installed new carpet. DIY interior paint. Vacant soon after the listing went live (purchased and moved to new home). It was listed the end of 2005 in the spring/summer 2005 market price range regardless of the data presented that the market was quickly changing. Over the course of 6 months, the seller's agreed to lower their price in small steps totalling about 7%. Frustration set in and Agent #1 was dismissed, Agent #2 was hired and the home re-listed for 4% lower than the last price. The property has not sold. Agent #1 mistake: taking the listing with unrealistic expectations by the sellers. No amount of logic or evidence seemed to make a difference to these nice people.



• Seller B: Nice home on 1+ acres in desirable community. Not a lot of upgrades surrounded by homes that have it all. Equity emotion gets in the way of listing at a "value price" based on comps and amenities. Starting price: $800,000, at least $50,000 too high. After 4 1/2 months with lots of showings but no offers, sellers lower the price 4%. Still no offers and consistent feedback that the home does not have the "bells and whistles" that others do in this price range. Thirty days later, they are convinced to make a dramatic move: "you have to make it a bargain to sell it!" The price was dropped another 6% and they received a contract offer the very next day. The good news: they finally listened. It is always emotionally hard to have to tell sellers that they can't get the equity that they once thought they had.



• Seller C: Absolutely gorgeous home with nice upgrades on a cul-de-sac in a new neighborhood. Comps show price range to be in the $635,000 to $655,000 range. Sellers authorize $669,000 leaving room to negotiate. The agent takes them on a competition tour to get first hand knowledge of "for sale" in their neighborhood. They also keep up to date on market dynamics and are savvy about "market value." Three weeks into the listing they lower their price 6%. Moderate level of showings, good feedback but lots of competition on the market. Five weeks later they lower the price again to another 5%. Traffic picks up significantly but still no offers. Another month passes, prices are still dropping and the sellers lowered the price another $10,000. Traffic increases and they receive an offer. The Cs understood the market dynamics and chose to take the lead instead of following the market down.



• Seller D: This one is the hardest of all. Mr. and Mrs. D wrote a contract on a dream property in the country contingent on a home sale. Their current home is a located inside the beltway and across the street from convenient public transportation making it ideal for commuters. Nice home that shows well. The Ds want to list higher than comps in the subdivision with advance plans for the equity. The problem: high inventory and an asking price 7% higher than what the average home sold for. They get a fair amount of traffic with good feedback. Within three weeks they get an offer from an unrepresented buyer 2.5% lower than the asking price. The Ds reject the offer. After four months of substantial marketing, email campaigns and the Ds holding weekend opens, traffic wanes. They mutually agree with their agent to cancel the listing to allow them to try another agent or to attempt to sell it on their own. Great clients who enthusiastically supported the agent's effort but, to the agents disappointment he/she could not help the clients realize their dream in the current market.

So what? In the housing market of 2003 to mid-2005 buyers had to be aggressive with "higher offers" and "better terms." In this market, sellers have to be aggressive with "show quality," "amenities" AND "price." Sellers must listen to the advice of their trusted agents. If you don't trust your agent's advice, get one you can trust. Listen to what Mr. Market is screaming at us! Buyers are writing contracts on bargains: the best home at the best price. Sellers had their way with buyers during the housing rush. The tables have turned. Take a leadership position in the market to avoid frustration and disappointment...and substantially increase chances of a contract offer.

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May 30, 2006

I've had this article on the back burner for nearly two months. Always looking for something new (or not so new but, different) I ran across this thing called Value Range Pricing (VRP), originally developed in Australia and imported to the US by Prudential Real Estate.

Background:
As a new agent entering listings into the MLS I often wondered what a field called "Value Range Pricing" was all about. The selection options were "yes" and "no." I did what most people do and just set it to "no." Curiosity got the best of me and I called MLS customer support with the question: what is this? Their simple answer was

...just a range that people can search on...if you set to 'yes' then another box appears that requests a 'Low Price' that one can enter and then those searching will receive your listing even though the 'Listing Price' is outside the range but inside 'Low Price'."

Satisfied for the time being I always set "VRP" to "no."

About three months ago:
Surfing the web for real estate related stuff I ran across this article buried deep in the Realty Times archives Range Pricing: Headache or the Future of Real Estate? by Blanche Evans. Googling (or is it Google-ing?) VRP brought a wealth of resources and article by those that swear by it and those that think it is just a marketing "gimmick." VRP is being used by agents and sellers in a big way in the San Diego area with over 55% of all listings marketed this way. This website touts it's effectiveness: North San Diego Real Estate Online. Even USA Today had a feature article on this subject: Sellers put their homes on the 'range' in November of last year (2005).

How it works:

Setting a price 'range'

Some real-estate sellers are trying to drive traffic and spur bids by listing homes in a price range. Here's an example of a home that closed in mid-November in Duluth, Minn., using a range-based pricing system. Price range: $109,999-$129,876 Buyer's 1st bid: $109,999 Seller's 1st counter:$128,000 Buyer's 2nd bid: $115,000 Final sales price: $125,000 Sources: USA TODAY research; Prudential Truscott Realtors, Duluth, Minn.

As the Internet became integrated into the real estate process, properties-for-sale moved from phone book sized collections, updated bi-weekly, to an easily accessible online database called the Multiple Listing Service (MLS). Several years later, the general public was given access and consumers had more power to search and research property. Then and now, consumers and professionals will use price as a basis for their search. For example: A value range property that is priced between $500,000-$550,000 will show up in a search of a buyer who searches between $475,000-$520,000. If a the seller prices their home at a fixed price at $535,000, the property would not come up in the buyers search. As more buyers view and preview the value range properties, the added attention will generate more exposure to that property in comparison to comparable fixed priced listings.

Supporters of the technique say that the additional exposure has the potential to generate more offers, allowing more room to negotiate, which will ultimately lead a higher market price. Since competing buyers legally cannot know the price of competing offers, the presence of an offer, even a low one, may act as the catalyst in achieving a price above the prevailing rate. The Seller benefits by generating offers he may not have received due to the limitations of fixed pricing.

by The Lund Team from North San Diego Real Estate Online

Use in our area:
In the greater DC Metro area if it is not well understood, I suppose it won't work. Doing a spot check on all active listings in the MLS reveals only 436 have VRP set to "Yes." Checking a few of these I found one of three different uses:

• Low Price blank
• Low Price set to listing price
• Low Price set $1,000 lower than List Price

Not a big sample but I conclude that agents don't understand it for the most part. I would like to try it. Which client wants to be the guinea pig? I didn't think so...

Anybody reading this that has experience with VRP, share your experience with us...good or bad. Even better if it is someone from the MRIS coverage area. Agent or client.

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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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