The story of two homes that were sold on the same street, and how the results were 180 degrees different.
I listed a home for sale that had been owned by the same family for over 60 years. It was in original shape, not in poor condition however it needed upgrading throughout. My guess was the Buyer would install a new kitchen, bathroom, and flooring throughout the home and would create a family room or apartment in the unfinished basement. Also, the garage – it pre-dated the house and was built on dirt with no foundation. It was structurally sound but needed to be lifted and a foundation created to be a safe functional garage. The home was small and had 2 bedrooms with a small (10 x 9 ft) dining room and one bathroom. The furnace had been updated and the home had a very old A/C unit.
The home I used as a comparable had sold recently on the same street. It was a little bit newer than the one we listed. This home was considerably larger, with a renovated kitchen, 2 baths, a finished recreation room, hardwood flooring, an oversized garage and an inground pool.
When you look at the differences, there should have been around $75,000 – $100,000 difference in the selling price of the two homes. However, when the property I listed sold, it ended up selling for $6,000 less than the home with more features down the street. Not only that, the property we sold, sold for $115,000 over the asking price in 8 days, the other property took 49 days to sell and sold for $79,000 less than asking. As my son would ask, “What the heck?”
How can two homes on the same street, same market, end up having such different results?
I believe marketing or lack thereof was a key component of the results, however, pricing strategies and an offer process encouraging multiple bids helped with the outcome.
Although the home was vacant, we ended up creating a full marketing package for the property. This included a 3D virtual tour, professional photographs and computer-generated floor plans. On the Realtor.ca listing along with MLS listing (for Realtors) we offered 31 pictures of the property with one being a QR code directing the Buyer to the marketing brochure. We launched ads focused on Mississauga, Brampton, Markham and Toronto to attract not only first-time Buyers but also investors. Being introduced to MLS on a Wednesday, allowed us to host two open houses that attracted over 30 clients, and in total, we had over 100 groups through the home.
Looking at the home that sold down the street, I noticed that there was no virtual tour, and the photos appear to have been taken with a cell phone. When it came to pricing, the home was listed at a price much higher than market value, with the Agent holding offers and attempting to create a bidding contest. When that strategy failed to work, the home sat for 45 days before being reduced by $50,000. The home sold in 6 days for $29,000 less than the new asking price after being reduced.
I have learned that in any market, knowing the trends of how homes sell is critical to success. The market we are currently in is a low inventory market and in a market like we have today, the best strategy is to list slightly below market value to create a “buzz” attracting multiple Buyers. This story is not a “one-off.” There is currently a condo on the market, the same model and building as one we sold a month ago. We listed the condo just above what we felt was the market price (as Buyers interested in this condo building are a bit older they typically do not get the same type of bidding contests that detached homes attract,) assuming the home would sell for about $20,000 less than our asking price based on the most recent comparable condo sales. We created the same marketing package as the bungalow mentioned earlier and in one week we had a flurry of activity with 3 Buyers submitting offers. Our selling price was $95,000 over the price we had hoped to settle on. A similar condo to the one we sold has been sitting on the market for just under 3 weeks, with an asking price $25,000 above the price we introduced our condo to the market at.
Knowing the market helps. Understanding how to price to create the maximum excitement helps. Staging, 3D Virtual tours, professional photos and floor plans help. However, what really helps, is working with an agent who is experienced in negotiating on your behalf, using all of the tools available and the experience of knowing how to upsell in a low-inventory market.
If you are curious about creating a “buzz” on your property, I can be reached at 905-743-5555 or lindsay@buyselllove.ca 4 decades of negotiating and marketing experience is only a call or email away.
5-star Google review on our Condo Sale.
Thank you, Lindsay Smith, Wendy Starr and Danielle Byrom @BUY SELL LOVE DURHAM – KELLER WILLIAMS ENERGY REAL ESTATE and their exceptional marketing!
You want this team working for you!
Lindsay and Wendy sold my mother’s condo with great care and expertise within a week, which resulted in an amazing over-asking result. WOW
Along with their admin, Danielle, they all treated my mom with respect, as if she were their own parent. They made the process flawless with excellent communication and patience. I felt so secure knowing they had my mom’s best interest at heart.
These lovely realtors are knowledgeable true professionals, savvy as well as warm and courteous with a fun sense of humor. Just what is required to get the job done! SOLD!
Thank you so much, Lindsay, Wendy and Danielle! What an absolute pleasure meeting you as you worked your magic for my mom.
Connect with us on Facebook, Instagram, LinkedIn and YouTube.