by Kurt Wannebo
on Tuesday, March 27th, 2018 at 11:48am.
The Tale of Three Properties by Kurt Wannebo
People are always telling me that they think their home is going to sale for the same price irrespective of which agent they actually use. Or people will tell me that all of you agents are the same and you all do the same marketing. Or they have said they’re really consciences of what they want to put their home on the market for because they think that will effect the final sales price. Today, I’m going to tell you a story about three different properties which were almost completely identical, on the market at the same time and had three completely different results.
Let’s talk about these three identical properties, I was very familiar with them, I went through all of them and I assessed a bunch of different things about them and realized they are relatively the same property give or take a few differences in regards to upgrades that might have made a difference of $5,000 to $10,000 at most. Let’s take a look at these properties… first, they were all built by the same developer and they were also in the same area meaning same development and same company built them. Second, they all had the exact same floor plan so they were all model matches. Third, they all had the exact same square footage, relatively the same upgrades give or take maybe $5,000 to $10,000 and they all had identical lot sizes and were right there in the same location. Fourth, they all closed within 22 days of each other so it had nothing to do with the market conditions. Fifth, they were all listed relatively within 40 days of each other.
So let’s breakdown each of these properties one by one. The first one #1 was listed at $1,125,000 and the results were that it was on the market for 30 days, they had a 30 day escrow and their final sales price was $1,060,000 which is about $65,000 under the list price. The second one #2 was listed at $1,100,000 which was $25,000 less than #1. The results for #2 were it was on the market for 8 days, it had a 40 day escrow so a little more time and the final sales price was $1,110,000 so the difference here from #1 was about $50,000 even though #2 was listing $25,000 lower than #1. Now let’s take a look at the third one which was listed at a much lower price than both #1 and #2. It was listed at $1,089,000 which is $11,000 less than #2 and $36,000 less than #1. The end result for #3, it was 7 days on the market, 20 day escrow and the final sales price was $1,130,000. So, you can see the difference between #3 and #2 is $20,000 and the difference between #3 and #1 was $70,000.
Now that’s a huge swing so what’s the reasoning behind this? It’s very simple and there are four answers to that: the agent that they worked with, the marketing that was implode on each of these properties, from there the negotiating skills and the pricing strategy that each one implode. I’ve always wanted to be able to show and be able to demonstrate to people that your home isn’t going to sale for the same price irrespective of which agent you use or what pricing you do or what marketing you do. Now as an added bonus, this property #3 I know for a fact also got a 6 month rent back which is almost unheard of and saved these clients a tremendous amount of money from having to move two times.
Now if you have any questions or if you actually want to see documented proof of this… shoot me a text, shoot me an email and I will send this all to you in writing directly from the MLS demonstrating that all these properties were accentually the same, closed within a few weeks of each other and had completed three different results.
Thank you, Kurt Wannebo