August 31st
Uncategorized

A Tale of Two Sales

2694 Bush St. at Broderick sold in April of 2004 for $826K which was seven percent over its $769K list price. This condominium home is a well-laid out, top floor flat with three bedrooms (two large, one small) and one bathroom inside of 1471 sq ft. The home features an excellent floor plan, wonderful light, partial […]

2694 Bush St. at Broderick sold in April of 2004 for $826K which was seven percent over its $769K list price. This condominium home is a well-laid out, top floor flat with three bedrooms (two large, one small) and one bathroom inside of 1471 sq ft. The home features an excellent floor plan, wonderful light, partial city views, a deeded parking space, two storage rooms, two fireplaces, and an updated kitchen and bath. It did not offer an outdoor space.

The new owners moved in and redid the fireplace surrounds with stunning Waterworks tile; they repainted the entire home including the kitchen cabinets, replaced the counter tops, and replaced all the appliances.

Six years later, they decided to sell the home and repainted, thinned out closets and meticulously staged it for sale. The home hit the market on June 18, 2010.

Mistake #1: Was selecting June 18th as this was two weekends before the Fourth of July. Unless you’re planning to bust onto the market with a “run don’t walk” price, you need to have at least three weekends ahead of you that are not holidays so that the buyer can find you without distraction. By the 54th day on the market (DOM) the home was reduced by $45K to $829K.

Mistake #2: If there is not significant interest after the first three open houses, there should be a reduction before the fourth. In this case, the fourth open would have been on July 10, when the buyer returned from their Fourth of July holiday—well-rested, relaxed, and ready to look again. In this case, a buyer was alerted to the home by their agent and after visiting the home twice and signing off on disclosures, the buyer submitted an offer at approximately $790K and the sellers chose not to respond.

Mistake #3: Unless someone is dying, always respond to an offer in a timely and considerate fashion. Why would a seller not respond to an offer that was five percent under their new list price when they themselves offered seven percent over?  Aren’t these percentages similar? Hadn’t the market reversed between 2004 and 2010?

The home aged another 56 DOM and at day 110 reduced to $799K on October 6. The home was withdrawn two months after this on December 5, after spending close to six months DOM. Apparently the buyer that offered at $790K was correct on value. This buyer later purchased a top floor 3BR/1BA with a totally remodeled kitchen, bath, tons of original detail, fireplace and deeded parking. The unit was 20 percent larger, the finishes were higher end merchandise, and the home had a backyard. It was in the Inner Richmond as opposed to Lower Pac Heights and cost $80K more.

HERE’S A TO-DO LIST FOR A SUCCESSFUL SALE:

  1. Look closely at your calendar and choose dates that coordinate with the market.
  2. Give yourself enough time to prepare so timing does not get delayed.  Get help if you need it.
  3. Be on the same page with your partner and your agent about pricing and goals. A meeting after the 3rd open house to re-asses marketing, price and market changes should be set in your calendar before you even hit the market.
  4. Make everyone aware of times you may not be able to be reached or the house may not be able to be shown.
  5. Price is marketing.  It’s an invitation to dance.  Value is determined by what a willing, ready and able buyer will pay. 
  6. Keep an open mind and a sense of humor.

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