Vancouver Real Estate - Tale of two Shaughnessy Houses - Case Study

Dated: March 19 2021

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Our clients always question, "How do we know staging makes a difference?" How can we figure out how much a house is worth? What improvements have the greatest return on investment (ROI) when it comes to selling a home?

We know we redesign, stage, and market homes well because we almost always sell for more than asking price and with numerous offers. However, we are unable to perform a controlled analysis. We don't get to make side-by-side comparisons too much.

Unfortunately, that is how real estate now operates.

As top-producing Vancouver BC real estate broker, I find it a point to extensively investigate comparable homes (comps). That is how I can assess a list price that will result in the best potential purchase price for our sellers. I have a contrast that goes beyond the comps in this case study. You'll see two homes that are very similar but sell at drastically different prices.

These two homes are only a few blocks apart, were constructed within a year of one another, and were sold within months of one another. Both houses have three bathrooms, identical lot sizes, and parking, as well as exteriors that are similar.

Why did the home we represented sell for 50% more than the asking price, when the other home just sold for 13% less? Not only did the home we're evaluating sell for less money, but it also underwent a price cut, which undoubtedly contributed to seller tension and lengthened the sale process.

There are three key reasons why our team's home sells for $555,000 above asking price, so keep reading if you, like so many of our investors, want to see what really yields the greatest return on investment.

PRICE

Our team excels at pricing, as shown by our performances. We set the price of our home at a pace that sparked a lot of curiosity and numerous offers.

The other seller overpriced their house, which scared off prospective buyers, particularly because they didn't do anything in the way of staging or renovations.

Buyers demand a certain appearance, updates, and facilities when a home is priced at $1.6 million. Buyers are switched off if a home is valued at $1.6 million but seems to be worth $1.25 million. Buyers believe they are having more value for their money if a house is valued at $1.25 million but looks and sounds like a $1.6 million home. Who wouldn't like that?

Homes must also be priced in the same area as other homes with equal size and quality, which has more to do with the list price than the actual purchase price.

The number of customers who come to the first open house vs. the next, where consumers are less involved, is often influenced by pricing. In other words, less buyers would look at the $1.6 million home, because even though you increase the price eventually, as these sellers were required to do, the odds of receiving the target price are diminished. It's very difficult to rekindle people's curiosity.

STAGING

Momo Kanev, has a history in both sales and architecture, so she deliberately picks the staging departments he deals with and is actively involved in the process. He's discovered that staging is key to generating a high return on investment while selling a home, and he tells his team about it.

Given the initially high price point, the other seller scarcely staging their house. This decision gave consumers the expectation of a higher-cost, lower-value house, slowing momentum and interest in the home and most likely contributing to the lower purchase price.

IMPROVEMENTS

We based on the following primary improvements in the property we represented:

  • Luminescence
  • Floor coverings
  • Asbestos abatement ceiling
  • Vanity tops
  • Cabinet Refinishing

I continually ask myself, "What is the future return on investment?" We didn't redesign the cabinets in this case; instead, we painted them and installed new knobs and countertops, which saved time and money while still making a significant difference. The asbestos in the ceiling was abated, which would have been a major turnoff for prospective customers. The other seller and their team kept unattractive panelled ceilings that, although they might not have contained real asbestos, gave the appearance of being out of date and likely unsafe.

The worth of a house is measured by both successful staging and real maintenance and improvements. Since we know that true quality and customer care build a degree of value for both sellers and customers that contributes to referrals and develops our company, our team still recognises both the impact of staging and the difference that improvements bring. This kind of dedication benefits everybody.

IN CONCLUSION

We've found that it's important to pay attention to a neighborhood's pricing policy and to consider consumer psychology. Upgrades to key components make a significant change. Staging is also relevant because it guides a buyer's price filter to a home that is appealing and gives them a sense of value. Working with a team who has a design experience, understands where to spend money efficiently, is able to project lead, and has the expertise and contacts to do so is crucial.

CURIOUS TO LEARN MORE?

Check out this link to the home that got sold for 150 percent of the asking price.

Also, take a look at our comparative house, which sold for a lower price.

If you're a buyer or a seller in Vancouver BC, Momo Kanev is happy to help. I look forward to assisting you in either selling your house or seeking a home that you would enjoy. For more details, call (778) 996-7003 or contact momo@jovirealty.com

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Momo Kanev

Momo Kanev, exemplifies integrity, energy, hard work and creativity in every detail of the real estate transaction process. Momo, has over 10 years of experience in the construction industry. He speci....

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