How Not to Play Poker with Your Inventory Homes May 21, 2008 Presented by Kate Kelley-Dilts, SCRP, GMS, CERC Vice President, Client Development-Western Region NEI Global Relocation Omaha, NE
Relocation Home Sale All transferees: • Home Marketing Assistance With formal home sale programs: • Pre-Inventory • Inventory
Home Marketing Assistance • For all transferees • Transferees engaged in the process • Educate and advise on today’s challenges • Key factors: • Partnering with a proven relocation Realtor • Pricing competitively • Condition • Marketing strategy
Maximum Exposure • Relocation real estate professionals • Ensure great condition and appearance • Best price out of the gate
Maximum Exposure • Internet is where it’s at!! • More than 20 photos generate 10 times the leads/views • Statistics show • 1 photo = 70 DOM 6 = 40 DOM 20 = 32 DOM • 1 photo = 91.2% of original price • 6+ photos = 95% of original price • Location, location, location is now photos, photos, photos!!
How NOT to Stage a Home Advertised on the Internet as a “Showcase Relocation Home”
Maximum Exposure • Attract attention • List at even numbers for two search ranges • Listing at non-round numbers between ranges: i.e., $231,102 • Weekly, bi-weekly reductions • Unusual open houses • Evenings, Sunday mornings • Make the interested buyer an offer
Marketing Actions • Condition – improvements to compete • De-clutter, de-personalize • Staging options • Know the competition • Foreclosures, construction, days on market (DOM), absorption rate • Educate and advise on competitive list price • Aggressive action with “stepped down” reductions • Add verbiage “home listed below appraised value” • Next steps
Marketing Trends • Guidance/mandate on Realtor selection • List price parameters • i.e., initially 105% of BMA averages, then reduce • Adjust again if/when appraisals conducted • Transferee encouraged to entertain all offers • Listening to the news, articles, TV • Rely on assistance to evaluate purchase offers • Repair and improvement allowance • Home sale bonus • Appraisals to gauge listing price
Marketing Trends • Transferees consider offers less than Buyout • Formal home sale offers less than established price (appraised value) • Buyer incentives • Loss on sale (capped) • Short sales
Pre-Inventory • Preparation required • Before a home is purchased from a transferee • Review marketing strategy used to date • Order updated BMAs • Condition of home • What has been repaired • Bids on repair/improvements needed • Strategize on expense vs. value • Project marketing plan • List price to established value (loss on sale) • Advise on sale price to extended carrying costs
Inventory Marketing
Inventory Home Sale Challenges • Prolonged market exposure • Market conditions vs. initial marketing efforts • Curb appeal • Condition – house is “naked” • Marketing tools • Internet, creative approaches • Negotiations for highest price • Concessions that make sense • Critical buyers
Assessing Purchase Offers
Home Marketing Success • BMAs revealed “too much stuff” • Advised transferee to de-clutter and store extra/personal items • House showed much neater, cleaner • Sold in shorter timeframe Employee Sale = higher transferee satisfaction, lower company costs
Preparing a Home for Inventory Marketing • Pre-arranged for painting upon transferee vacating • Competition: supply of homes in area = 12+ months • Staging and neutralizing costs = $10,400 • Home sold within 3 months • Saving 9 month’s carrying costs = $71,800
Inventory Management • Resistance to pink kitchen • Extended marketing time due to new construction in local market • Immediate paint, appliances to compete • Reduced carrying time net savings = $17,222
Challenging Home Sale • Remote location • 2 heavy smokers, 4 ferrets • Property required reconditioning • Ducts and floors cleaned, repainted, tear down shed Employee vacated upfront, repair immediately Sold in 90 days
Emu Ranch – SOLD!!
Fireman’s Dream • Condo across from fire station • Noise a challenge • View – direct and rooftop • Appeal to market buyers
Where to Park? • Home improvement resulted in no off-street parking • Added a front circle drive • Competitive home • Sold shortly thereafter
Functional Obsolescence • Attracted to home – until you opened the front door • Entry post a challenge • Staging benefit?
Walk Right In? • Stairs immediately inside door • Addressed in HMA, appraisals • Some things cannot be changed • Creative descriptions needed
Listed for a Year • 3 exterior photos online • Rehabbed historical home
Bright Colors • Transferee color choices • Neutralize or accent?
Relocation Homes Sell • With transferee’s knowledge of market • Proactive marketing plan • Put your best “house” forward • Realistic listing price • Best condition • Maximized exposure • Relocation Realtors • Web photos • Identify potential buyer pool
Resulting In • Increased transferee satisfaction • Managed home sale costs • Partnerships providing expertise The next concern ~ Transferees buying smart in the new location
Case Studies • Round Tables • Review Case Study • Offer recommendations to sell the home • Follow corporate policy provisions Recap all groups to gather ideas, input.
