Do you have an investment property you are looking to sell, but have tenants? Pay close attention to this case study. If you want to maximize top dollar on your selling price, you need the following present;
1.) A Cooperative tenant
2.) Good showing conditions.
This property was originally listed in October of 2016. It was occupied by a tenant with tons of furniture. The tenant would allow us to show the listing, but it did not show well.
Here is the video so you can get an idea.
This was not the sellers or tenants fault by any means, it was just cluttered which then made it show poorly. The seller did everything they could to help with the tenant and did a great job, but ultimately it could not change the way the condo showed as it just had too much furniture. The second issue with the tenant was that they always had their son sleeping in the 2nd bedroom during showings. It made showings very awkward for buyers as they were unable to see the 2nd bedroom so my advice is to make sure the property is vacant at the time of showings.
Buyers want to be able to walk around the unit.
The Unit SOLD!
After over 30 days on the market and plenty of showings (over 20) we ultimately lowered the price to $289,900 which is right where it should be priced competitively. The tenant suddenly moved out and we took it off the market for a week to reposition it.
We needed to give the property some breathing room since the market time slightly tainted it. We were also listed in the worst month of the year December, when things tend to be a little slower. One of the tricks of re-marketing a property that has become tainted with market time is to take it off the market for a week so you can re-list it. It appears fresh and can give it some new signs of life.
We got a full price offer in a weeks time right in the middle of Christmas.
The unit showed better since the tenant took out all of their furniture. The property also appeared as a brand new listing, which kicked it in the butt. Unfortunately, that buyer did not stick with the contract and cancelled the week of Christmas. We decided to take the property off the market and re-list it after the New Year.
The seller had to find a short term tenant for their property to cover the monthly carrying cost. The tenant did not have a bunch of furniture as the previous tenant, but the opposite problem. They didn’t have much furniture at all and was very messy. This once again caused the unit to show poorly.
When we put it back on the market, the February buyers were out in abundance. We got slammed with showings! This again proves my point that the market is totally different in February in Chicago than in December. We showed the unit over 30 times and ended up selling at $283,500. We may have been able to get slightly more if the unit showed better, but not by much.
Check out this article, “The Best Time TO Sell In Chicago”
The lesson of this story is that you must be priced well, positioned correctly, and your property NEEDS to show well to sell for top dollar.
The Marketing Plan
I’m going to walk you through our marketing plan for this property below, but before we do it it’s important to talk about how we positioned this property first.
Your best chance at receiving top dollar is the 1st two weeks your property hits the market.
Because that’s when you will have the most amount of eyeballs and urgency on it. The key to selling your home fast and for top dollar is when your agent can create a sense of urgency to potential buyers that creates action.
Pretend You Are The Buyer
In order to understand this you must put yourself in a buyers shoes. Pretend that you have been searching for months trying to find your dream home and the “one” suddenly pops up. You go see it at an open house and notice the 15 other groups looking at your dream house. This is the place you will raise your family and share great memories in. There is not a chance you are going to let someone else take YOUR house.
Instantly you are thinking, “someone here is going to buy this from under me if I don’t act right now and write an offer”. Once you leave the open house you instruct your agent to write an offer on that property before anyone else does.
Our job is to create that situation for you in the sale of your home. Remember these words…
“Someone will pay more for something they fear may be gone tomorrow”
The first two weeks your house is on the market is when you have your best chance at selling it because every buyer will take a look to see if this is the place they will call home.
Its after 2 weeks on the market when a property generally loses it’s MOJO. Buyers will start to second guess your offering price the longer it sits, asking themselves…“why didn’t anybody else buy this already”. It’s that second guess that reduces the value of your property because at the end of the day it’s only worth what the next person is willing to pay for it. The more market time your accumulate, the more likely buyers second guess your pricing.
Our job is to maximize exposure and urgency by creating this perception around your property. Yes we are Realtors, but we’re also professional marketers.
If you like marketing and this kind of positioning I suggest you read both of these articles below:
Let’s take a look at the marketing plan with this home.
First thing we did is built this property website so we have home base to drive all the online traffic too. It’s a fact that the over 90% of all real estate search is online which is why you need a property website at the very least. We need a home base to showcase your house where we can make it look much cooler than what you would see online. We can add in the property video, neighborhood walk score, and also track the amount of online views you have specifically for the property site. It’s 2017 and you need to have a property site of your home up!
Property Video Optimization (you can view video at bottom of this post).
It’s not hard to be on these sites, but it’s how you are “positioned” on these sites that makes the difference. We buy premiere placement on these sites to maximize our listing’s exposure and make your home appear more attractive.
Remarks Make A Difference!
These are the remarks we used to speak to our ideal buyer for this listing. I do not recommend being short on these remarks. The main goal here is to strike an emotion with consumers looking for this type of property. Read them below!
Well you don’t find much in Old Town for this price yet alone a fully updated 2 Bedroom condo. Ground level (NOT BELOW GRADE) FHA approved condo that has been fully updated with hardwood floors throughout main living area, maple/granite kitchen. Very bright unit with 1 outdoor parking space included boasting two large bedrooms and fully updated large bathroom with dual vanity sink. Private patio in the rear for outdoor relaxing/entertaining. Lower taxes and monthly assessments make this one of the most affordable living options for being this close to downtown! Location is great just across the street to Target, few blocks from New City development (Mariano’s bowling, and many restaurants/shopping along the bustling Clybourn corridor redevelopment). Walk to the river, Chicago Ave., or visit the excitement of Wells street. It doesn’t get much better for this for what you get for the money!
I hope this helped you understand what it takes to sell a property in Chicago today. Please contact us should you have any additional questions!
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