We were recently engaged by a professional couple needing to sell their property in an eastern suburb of Melbourne. Although they were going through a divorce, the parties were amicable and we were able to work with both sides to achieve the best outcome.
Faced with conflicting advice from local agents, the clients sought our help in deciding which agent to select and what presentation work to undertake on the home.
The main areas of confusion were the agents’ estimates of value for the property and what should be done to present the home for sale.
Based on a sale of the home ‘as-is’, the agents’ estimates varied by 28%. Their recommended spend on presentation work then varied from zero to $100,000.
We obtained fresh marketing proposals from the three most prominent agents in the area and assessed their proposals. This made it easy for the vendors to choose the best agent. We also obtained quotes for all presentation work being considered. We then helped in determining what work would give the best cost/benefit outcome. A budget of $40,000 was agreed. This covered re-painting, new flooring, kitchen & powder room re-modelling, replacement lighting, general repairs & maintenance, cleaning and professional staging.
We believed that the proposed work was imperative for the best sale. Although the house was impressive, it was somewhat dated, and was competing with more contemporary homes in the area.
We project managed the presentation work and worked with the agent during the marketing process. As the involvement by both parties was reduced, they were able to focus on their work commitments and other priorities.
Late last year the property market was declining. The December auction was unsuccessful as the reserve price was not met. However, marketing continued for sale by private treaty into January until an acceptable offer was received.
The presentation work on the property was a major undertaking, but it came in on budget and a return on investment of around three times the spend was achieved.