Marketing luxury real estate has changed. As has the role of your real estate broker.
Our modern marketing approach starts even before a property is listed.
We provide not only the strategy necessary to maximize the value of their property but the liquidity needed to make the process simple and stress-free. We now have a program called Compass Concierge that can dramatically increase the value of any sellers property. Below is an example of how this program has worked for just one seller.
Background: A seller who contacted us to discuss a sale of their home has lived in a classic Tribeca loft for the past 12 years. The sellers have two children who are now in college. Both of the sellers are looking at retiring in the next two years and want to downsize their home. With two more years left of college to pay for, and saving for retirement, liquidity is an issue for them.
Problem: The loft has great bones, but after 12 years of normal wear and tear we advised them to do a simple refresh. The updates we recommended include new kitchen appliances and counters, retile the bathroom, refinish the floors, and of course, have a professional painting of the entire apartment. We estimated the cost of these repairs to be in the $65,000 to $80,000 range. But the ROI will be significant.
We asked the sellers to take a look at the property through the eyes of a potential buyer and ask what would they want repaired or replaced.
We advised that in its current condition the loft would be looked at as a “renovation project” by the majority of buyers who would consider it.
Buyers would discount the property accordingly to account for the repairs that needed to be done. As part of our marketing proposal, we advised the seller their options would be: to list at $2,500,000 in “as is” condition. With the recommended repairs we believe $2,750,000 is attainable.
The sellers have made it clear to us that they do not have the liquidy to pay for the repairs but did appreciate how doing the work would make the loft more marketable.
Solution:
We put together the solution of using Compass Concierge to cover the upfront costs of the necessary upgrades. Our team would solicit bids for the repairs and assist in managing the work as necessary.
The goal is to have all of the work completed before we list. Then we will bring the property to the market priced at the higher estimate of $2,750,000 with the loft looking its very best.
As a result, we can bring out the most value in the loft and obtain a higher selling price in a shorter period of time. The purpose of Compass Concierge is to squeeze more value out of a sellers property and to position their listing for success.
At closing, the seller would pay back the cost of improvements to Compass interest-free and without any additional charge from their sale proceeds.
Want to learn more about what Compass Concierge can do for you? Email us at columbiavitoloteam@compass.com and lets talk.
*The above example is based on real facts from multiple clients to protect their privacy.
