To maximize net proceeds. Length of time on the market was not important.
Seller had a stately, but dated home. Old kitchen, old baths, worn hardwood floors. Dated homes in general, were not selling.
Olsen Ziegler Solution:
Remodel (by removing a wall to enlarge the space) and renovate the kitchen, minor cosmetic bathroom updating, refinish hardwood floors, minor misc. items and home staging.
Detailed Background Information Follows (an optional read…)
It’s critical to answer two basic questions:
- What is selling in a community and why?
- What is not selling in a community and why not?
Understanding the answers to these questions along with analyzing and interpreting other key variables such absorptions rates, trend lines as well as the seller’s goals may paint a clear picture that renovating prior to placing one’s home on the market may be a better financial option.
For this particular seller in Cleveland Heights, the majority of homes that sold in Cleveland Heights fell into one of three categories:
- Bargain priced, or
When we first met with this seller, their home, in it’s current condition, did not fall into any of the above three categories and therefore stood a high probability of not selling or the seller would have taken a huge financial hit to sell the property in as-is condition and neither option was desirable for this seller.
To Renovate or not to Renovate — Which approach should I take?
The short answer is: it depends.
In our opinion, the real estate industry has done a poor job for sellers by not performing extensive research into the seller’s local market in order to properly advise the seller with regard to the current state of the market AND show ALL options a seller should have at their disposal so they can decide which approach works best for them.
We feel that the “stick a sign in the yard and if it doesn’t sell, recommending one or more price reductions until it does sell” approach is akin to having one tool in the toolbox…
and the old saying (adapted for real estate): When all you have is a price-reduction hammer, everything looks like a nail…
…with the result being that sellers are truly at the mercy of the market, instead of being able to regain some control over the market, and ultimately, their net financial position.
Note: This is not a one size fits all approach. Sometimes: renovation is not the solution. Every property, community and local real estate market is unique, and it takes a keen eye to interpret and offer solutions based on fact, based on a proven track record, based on innovation and primarily, based on market realities. We understand that each of our sellers have different needs and constraints. Our goal is to eliminate any and all surprises before a seller’s home enters the market.