SF Real Estate Case Study: Mission Terrace Next-door Neighbors
Why Did 1983 San Jose Avenue Sell For $452,000 Over Asking?
Because we knew exactly how to prepare this home to go on the market, had stellar marketing and are fierce negotiators.
Our clients often ask us: How do we know that staging makes a difference? How do we know how to price a home? What upgrades make the biggest difference for return on investment (ROI) when selling a home? How will you market my home?
We almost always sell for above asking and with multiple offers, so we know that we upgrade, stage, and price homes well. The catch for 1983 San Jose was that we got to make a side-by-side comparison to show our clients that what we do really makes a difference. Our property was listed at almost exactly the same time as the house next door – a near equal house comparison.
As top San Francisco real estate agents, we make it our business to study comparative homes (comps) very carefully. That’s how we are able to decide on a list price that will lead to the highest sales price for our sellers. In this case study, we give you a comparison that goes beyond the comps. You get to see two very similar homes that sold for dramatically different price points.
These two homes are located next door to each other, were built in 1916, listed at the same price and sold within a month of each other. Both homes have two bedrooms, similar lot sizes, and parking along with similar views of Balboa Park.
Why did the home our team represented sell for $452,000 over asking, earning our sellers $125,000 more than the neighboring home? Not only did the home we are comparing sell for less, it had half as many offers.
There are four main reasons our team’s home sold for $452,000 over asking, so keep reading if you, like so many of our clients, want to know what really results in the highest ROI.
Pricing.
Our team is great at pricing, and our results show it. We priced our home at a price that generated a lot of interest and stimulated multiple offers.
The other seller listed their home at the same list price, however they did not do much (if any) in the way of staging or upgrades.
Pricing also affects the amount of buyers you get visiting the first open house vs. the third, when people are less interested. Getting the initial price right is key to making as many great first impressions as possible.
Staging.
The Krishnan Team’s founder, Ruth Krishnan, has both a sales and a design background, and so she carefully chooses the staging teams that she works with and is actively involved in the process. She has learned that staging plays a critical role in getting an excellent ROI when you sell a home and this is what she teaches her team.
The other seller, did not stage the home. That decision gave buyers an initial impression of a higher cost, lower value home, which slowed momentum and interest in the home and very likely contributed to the home’s lower sales price.
Upgrades.
In the property we represented, we focused on the following key upgrades:
New cabinet hardware
New kitchen countertops
Painted kitchen cabinets
New appliances
New garage door
Re-grouted the bathroom tile
Painting interior and exterior
Added hardwood flooring to the kitchen
Landscaping
Replaced some interior doors
We always ask ourselves, what is the potential ROI? In this case, we did not replace cabinets, we painted them and added new knobs and new countertops, saving both time and money — and it made a big difference. In the kitchen we also installed new appliances and hardwood flooring. The flooring was refinished throughout the home and all the bathroom tile was re-grouted. We put in a new garage door and replaced some of the interior doors as well. The interior and exterior of the home was repainted and we improved the landscaping.
A home’s value is established by good staging and also the actual fixes and upgrades. Our team always considers both the effect of staging and the difference that upgrades make because we know that real quality and customer service create a level of both seller and buyer satisfaction that leads to referrals and builds our business. This kind of a commitment is a win for everyone.
Marketing.
When you work with us be assured that we know the right audience and we know how to reach them. From beautiful print materials, emails, social media and online advertising our online presence is strong and we love putting our resources to work for our clients.
The Take-Aways
We have learned that it is very important to pay attention to the pricing strategy in a given neighborhood, and to understand buyer psychology. Key upgrades make a big difference. And staging is critical because it helps set a buyer’s price filter to a home that looks beautiful and provides them with a sense of value. Finally being able to reach as many of the right people as possible ensures our clients get the best price possible for their homes.
It’s important to work with a team that has a design background, knows where to spend money in the right places, is willing to project manage, and has the skills and connections to do it.
Whether you are a San Francisco buyer or seller, Team Krishnan is ready to get you results. We look forward to helping you sell your home, or find a home you love. Contact us at (415) 735-5867 or info@ruthkrishnan.com.
