A Tale of Two Properties
The game of “List it or Flip it?”
A case study on the Value Driven Approach
Sometimes two things can seem alike but when you know what to look for, they are actually quite unique.
That was the case with my clients Ken & Jackie. I originally helped them buy their home. Fast forward to today and they followed my Value Driven Approach™ to make a very handsome profit on the sale of that very home.
What makes this even more remarkable is that an “identical home” was listed for sale on her very street. But it wasn’t selling. We’d be hitting the market in August, the end of the hot season.
Jackie was very concerned. Her house was a model match which basically means identical. Only, it was actually better located as it had a view of the park. She was afraid that her house wasn’t going to be able to sell for what they needed.
They were moving to the mid-west and they needed a certain amount of profit to be able to buy their dream retirement home.
I explained that we don’t really need to be worried about the “comps”. If we followed the VDA, & that non-selling model match won’t matter.
Yes, the neighbor’s home is a model match and better located and it has failed to sell. But they followed the inferior, traditional approach.
That agent and seller priced their home at top dollar, but the preparation and presentation were not inline. Sort of like trying to sell a VW bug for the price of a 911 Porsche. All the buyers just passed it by…
This agent just simply listed their home. There was no strategy and therefore, they got an inferior result.
An Engineered Result
I sent Jackie a copy of my book, “The Value Driven Approach to Sell Real Estate” and she realized that we are using a superior approach to get an engineered result.
The VDA helps homeowners Flip their home s like professional Real Estate Investors. Hence, the game of “List it or Flip it?”.
She understood that this method would get her the highest amount of profit possible.
The property was updated enough that there wasn’t any need for renovations. Just some small repairs, aesthetic improvements, cleaning, lots of elbow grease, scientific staging, & proper marketing. Their home performed so well that we set the new high price point in the neighborhood!
Show Me the Money
The cost to Ken and Jackie was fairly inexpensive. They spent less than $3,000 when it was all said and done. There was a cleaning crew, some small updates, some repairs, landscaping & of course all that elbow grease. That was probably their biggest expense to tell you the truth. Their investment of time & energy.
But the payoff was well worth it!
Jackie’s home sold in just 6 days and for 6K above list with multiple offers.
That model match home? It never sold. They reduced the price several times totaling $25K and they still couldn’t sell it. Buyers saw no perceived value.
Both homes were nearly identical and priced the same on the same street. One went unnoticed while the other was lavished with attention.
The agent that listed the model match called me to ask, “how in the hell did you sell that home so quickly and above list?” “Trade Secrets” I replied, “Trade Secrets”.
Had that home sold at its last list price, it would have been on the market for 9 months and sold for $30K less than Ken & Jackie’s home.
Ken & Jackie spent about $3K to and made an add’l $30,000 minimum. A return of 1,000%! (that comma is supposed to be there!)
That number is extremely conservative because the other home never actually sold. Who knows what they would have needed to reduce the price to for prospective buyers see the value? Another $10K? $20K? $50K?
That would have meant a profit to Jackie of $40K, $50K, or $70K. A possible return of up to 2,333%.
Regardless, we can safely say she made at least $30K more by just following the proven, documented approach.
Shock & Awe
Jackie was shocked at the response from the market. See the screenshots of our text conversation:
“…Wow! You are Incredible. This is
the work of a Pro. I’m in Awe”
She was so complimentary throughout the process. But I don’t know how to take a compliment that well so I could almost feel myself blush as I read these words…
”…the mark of a pro…I’m in awe…” 😊
Needless to say, I was extremely flattered. But she should be taking the credit for this. I gave her the advice, but she had to follow it and execute. And she did a marvelous job!
“Those other houses have
been on for weeks…ours only one day…”
“…U work hard but huge payoffs.
Love it. Happy Clients!”
This was exciting for her. She actually enjoyed the process. Most home owners describe selling their home as one of the most stressful things they’ve ever done.
But for Ken and Jackie, they had a recipe to follow. They executed the steps that were laid out for them and got the superior result that we engineered.
I don’t know what the sellers of the “model match” say about their experience but I’m willing to bet that they didn’t enjoy it like Ken & Jackie did.
What does this mean for Ken and Jackie?
Well, they bought that property in the Midwest as planned.
In fact, they’re in the middle of executing the VDA on their other property here in CA. They will take those proceeds and make that new forever home exactly as they envisioned.
That is an incredible feeling knowing that I have made such a positive impact on somebody’s life—my purpose!