Maximum Home Equity Program for Sellers
For many home owners, their home is their single largest investment. What if you could offer your clients the opportunity to maximize the equity in their investment before they sell their home? We’ve all seen the same home sell for a lower price and then a much higher price once it had some improvements done. Every seller wants to get the best possible price for their home, but doesn’t necessarily have the cash or knowledge to do upgrades. With our Maximum Equity Program, you can be confident your clients will get the best price for their home! To ensure everyone has the opportunity to take advantage of theMaximum Equity Program, if they are short of cash, they have the option to pay for the repairs/upgrades/ from the proceeds of the sale!
We all know that many buyers are willing to pay more for a home in move in condition. Most Buyers lead busy lives with careers and children and really can’t afford the time or money to move and start renovations. They would rather maximize their mortgage to get the best home they can afford. Most sellers just want their home to sell quickly for the best price possible. Unfortunately, many sellers have been in their home for years and the home can become dated. That renovation 10 years ago, although still somewhat “new” to the seller – is no longer new to the buyers looking for something more current in design!
So how do we bring the buyer and seller together?
That’s where Maximum Impact Plus comes in. Our team of professional Designers, Contractors and Home Stagers work closely with the listing Realtor to identify the areas of the Seller’s home that may need attention to increase the value (sale price) of the property and increase its competitive advantage in the market. Our team determines the most important areas of concern and agree on a budget for repairs/updates. Our Professional Design Team work with the Home Owner to design around the furniture and décor to provide a picture perfect finished product that “Wows” Buyers. Once the work is completed and it’s staged to perfection, your listing sells much faster and for a better price! Your clients are thrilled because you increased the value of their investment and made them some serious money!
Can’t you just hear the phone ring with their referrals?!
How exactly do we identify what needs to be done?
We’ve been flipping houses for close to 20 years. We would buy low and a few months later sell the same property much higher, always for a profit. Although the TV shows make it look easy, it’s not. It takes a sound strategy, and systematic approach. It is critical to know what your budget is for each home so you do not over improve. This is where the comparable homes in the immediate area dictate exactly what we do, and what we don’t! The key is to ensure we update cosmetically to make the home more desirable and comparable to the nicer homes in the area, this usually means repairs, paint, flooring maybe countertops. If there are any maintenance issues – these must be addressed first. Then we take inventory and identify the most critical cosmetic improvements. Working closely with the listing agent is key to successfully identifying the comps – which determine the extent of the work. Why would we offer to do this for home owners instead of purchasing the property ourselves? Because we love what we do! After years, this is my way of giving back my expertise and knowledge to help others. There is a sense of satisfaction and accomplishment that comes from helping others that is addictive! We simply show the home owner an extensive portfolio of before and after projects with the before and after pictures and the increase in price! They are instantly intrigued and often sold instantly!
Our program is simple. Once we agree what repairs/upgrades need to be completed, we agree on the timeline and the cost. We have a contract that is signed by the home owner that instructs their lawyer to disburse payment from the proceeds of the sale of the property. The owner agrees to actively market the property until it is sold. The Realtor informs us of the possession date or any changes to possession date or lawyer. Some sellers wish to pay for a portion and finance the balance, others finance the whole amount. We work with each individually, as each case is unique. Our only real restrictions are that we must be working with a home owner or estate sale and not an investor (flipper). There must be adequate equity in the property to justify the expense of the repairs/upgrades, so we will pull title to verify liens. The property cannot be in foreclosure to be eligible. We do as much work or as little work as the home owner is comfortable with. Once the work is completed, our Home Staging team completes the final look and can even arrange for professional photographs, if required. Then it’s up to the Realtor to establish the new list price and sell the property.
Here are a few examples of our program:
River Avenue sat on the market for approximately 6 months and continued to drop the price. We were contacted by the Realtor to see what we recommended. It was last listed for $585,000. We identified some critical repairs and painted and staged the property. We also recommended they vacate the “party tenants” on the 2nd floor. Total costs for all repairs, improvements, and staging was less than $30,000. The new list price was $639,900 and it sold for $648,100 in days!
A home on Syracuse had an initial CMA of $240,000. It was well maintained but very dated. We updated flooring and paint. Completed some repairs/updates in the finished basement, and staged the property. Total cost of repairs, updates and staging was approximately $25,000. New list price was $315,000 and it sold in days for $355,000!!
A couple contacted us when they needed to sell their home on Dunrobin. They were quite handy and could complete the work themselves. They just needed to know what to do to maximize their selling price. They had completed renovations to 85% of the home and only had their kitchen left to renovate when they unexpectedly found a new home. Now it was critical to complete kitchen updates fast but at minimal expense! The original CMA was $224,900 but they desperately wanted to increase their equity. We gave them a step by step list of what needed to be completed and even where to obtain the best materials at the best price. We suggested they replace the countertops, flooring, faucet, paint and install a tile backsplash. The cost with their own labour was $1700 for materials and consulting fees. Their home listed for $234,900 and sold for $255,200 in 8 days!
So the next time you meet with sellers and they are not thrilled with the CMA you present, consider telling them about the alternative. When you see an expired listing that needs some work, this is a perfect candidate for the Program. The next time you are called out to an estate sale or when Mom or Dad have been moved into assisted living, and the family need to sell, this is another opportunity to maximize the selling price. Let’s face it when long time owners are being moved into a care facility, their home usually is somewhat dated. This is also the time they NEED to maximize the equity from the sale of their largest single investment! They need that money for their care! These are the most rewarding clients to work with. Knowing that they sold with an extra $20,000, $40,000 or $80,000 in their retirement income because of our help is an honor and a privilege and honestly, just a fabulously rewarding project!!! I would so much rather see the increase in property value go to the original home owner than to an investor. Basically, any time your sellers wish to maximize the equity in their home sale, the Maximum Equity Program is here to help all Realtors and Home Owners Maximize the Equity in their Home Sale.
NOVEMBER 12, 2013