I was hanging out with a few people at a wedding recently and the conversation turned to today's real estate market.ne of my friends, John, from a town near San Jose, CA told a fascinating, yet familiar, story. I thought I would share it with all of you.John and his wife, Liz, decided to sell their home. They bought the house in 2004, saw it increase in value, and this summer decided to sell it. They interviewed four different agents to sell their home and finally decided on the one who agreed to sell their home for what they wanted to sell it for.
They believed the home was worth $625,000.
The first three agents who came in to interview for the listing told them the house would never sell at that price and that they should consider listing it below $600,000. They all felt $589,000-$599,000 was the "magic" number. John is a commercial real estate broker. He knew that his asking price was high but he was in no hurry to sell. He also didn't like the fact these three agents weren't offering any "solutions" they were only discussing the "problems" he would face at the higher price.
These agents told John and Liz about the current market conditions for their area. If their home sold, it would likely take up to 120 days. There was a 55% chance that the home wouldn't sell at all during these four months. Based on what they wanted for their home, they needed to be prepared for this. The agents told them they needed to consider
lowering the price.
John and Liz talked very seriously about lowering their price. Then they met a fourth agent named Lynette. Lynette came in and presented her case. It really wasn't much different than the rest. She also told them about days on the market and the chances of selling their home. She also suggested they may be priced a bit high but then she offered an option."Let's stage your home using a professional home staging company," Lynette suggested.
"This is going to cost you about $4000. We will list the home at the $625,000 you want but to offset some of this expense, when I sell your home, I will split this expense with you."Whereas real estate professionals, like Lynette, are highly skilled in marketing, selling and closing your home, home stagers are designers. They are artists who prepare your home for resale.Home stagers work with the "flow" of your home. They will remove and re-arrange .
They believed the home was worth $625,000.
The first three agents who came in to interview for the listing told them the house would never sell at that price and that they should consider listing it below $600,000. They all felt $589,000-$599,000 was the "magic" number. John is a commercial real estate broker. He knew that his asking price was high but he was in no hurry to sell. He also didn't like the fact these three agents weren't offering any "solutions" they were only discussing the "problems" he would face at the higher price.
These agents told John and Liz about the current market conditions for their area. If their home sold, it would likely take up to 120 days. There was a 55% chance that the home wouldn't sell at all during these four months. Based on what they wanted for their home, they needed to be prepared for this. The agents told them they needed to consider
lowering the price.
John and Liz talked very seriously about lowering their price. Then they met a fourth agent named Lynette. Lynette came in and presented her case. It really wasn't much different than the rest. She also told them about days on the market and the chances of selling their home. She also suggested they may be priced a bit high but then she offered an option."Let's stage your home using a professional home staging company," Lynette suggested.
"This is going to cost you about $4000. We will list the home at the $625,000 you want but to offset some of this expense, when I sell your home, I will split this expense with you."Whereas real estate professionals, like Lynette, are highly skilled in marketing, selling and closing your home, home stagers are designers. They are artists who prepare your home for resale.Home stagers work with the "flow" of your home. They will remove and re-arrange .
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