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Why was our Coconut Grove townhouse listing just SOLD for $15,000 over appraised value?

This week’s Success Story…

Our Sellers had their Coconut Grove townhouse for sale by owner for almost a year. During this period I kept in touch with them because I knew that they had a desirable property that would sell with the right…

-Marketing
And
-Staging

They were content paying 3% if we brought a buyer. It was the additional 3% for listing the property (total of 6% commission) that they were looking to avoid. Their feeling was that paying 6% commission would reduce their net vs 3% commission. This is the main concern of 95% of the for sale by owners we communicate with. FYI…It has been researched over and over that homes sell for more when listed with a realtor than they do By Owner.

After a year in November 2011, they determined that they wanted us to begin listing and marketing the Coconut Grove townhouse as soon as possible.

My Advice to our Seller…

1). Wait 2 months before hiring our us.
I counseled them to wait until mid-January so that we could put the holiday season slow-down behind us. This way the entry of their listing to the Miami MLS would coincide with the point when all of the buyers were again beginning to look.

2). De-Clutter before you hire us.
Our Sellers took our advice and moved furniture around, sent excess items to storage and threw away other extraneous items.

The Result of Staging…
The home felt like an entirely different space with room to breath. One’s first impression walking through the door (which often
determines whether or not one buys) was that of additional square footage and clear views through the sliding glass windows to their beautifully landscaped outdoor space.

The townhouse SOLD for $15,000 over Appraised value…
As is the case with many of our bank financed deals today, the appraisal came in lower than the agreed upon purchase price between
buyer and seller. Regardless, the buyer determined that the purchase price of the property was fair in today’s appreciating Dade County real estate market.

In my opinion, this was the prudent thing for the buyer to do…
One year ago, very few buyers were paying a penny over appraised value. Today, it is becoming the norm. In today’s appreciating South Florida market, The last 4 buyers of our Seller listings have chosen to pay more than what their lender’s appraiser said the home was worth. Today’s buyers are recognizing that market value (what a buyer is willing to pay) is often higher than appraised value (what value a bank assigns to a property when deciding to underwrite a mortgage).

This deal was truly a win-win for buyer and seller. Both were pleased with the outcome.

Question…
Did the Seller receive value by paying 6% commission to have us manage all aspects of the sale for him?

Please share your thoughts.

ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.

(Highest price in the Shortest period of time)

To discuss a strategy for your home, call…

Jason Smith

Broker (Seller Specialist)

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115