“How these sellers made $60,000 on their Lacey, WA house in just 15 months” seems like a pretty sensational headline and I usually don’t start out my blog posts this way, but this is absolutely true. Here’s how these sellers did it.
My clients purchased this newly-constructed home in July 2014 for $409,950 in Lacey, WA. Fifteen months later in October 2016, they sold the home in just 7 days for $470,000.
How did these sellers get the most amount of money for the home in the least amount of time, and came out ahead after just buying the home 15 months ago?
Let’s first look at sales and market statistics from the year 2000 to year-to-date.
The chart below focuses on supply and demand, that is shown as absorption rate, and how this absorption rate affects prices.
Currently for October 2016, the number of homes available for sale is slim. This low inventory has created an absorption rate nearing just 2 months of inventory, which puts the market on average in a “seller’s market.”
As with supply and demand, this lack of inventory has pushed prices upward as shown by the green line, to an average sales price of about $275,000 in Thurston County, WA.
What is also interesting to note is that Thurston County has seen many more new listings come on the market compared to past years, but the difference now is buyers are snapping up these new listings quicker than in the past. So it’s not that there “isn’t anything on the market,” it’s just that the inventory is being bought up at a record pace.
For average gains during ownership (and this chart goes back to 1998), most sellers are in a position to see a gain rather than a loss.
For my clients who saw nearly a 15% gain, they beat out the average of 10.7%.
The second part of how my clients were able to see a $60,000 gain was that their property was well-priced for the current market. The property was listed for $475,000, and after 7 days received an offer of $470,000, which the sellers gladly accepted.
In this case, there was not a bidding war that drove up the price, and the buyers were not cash, so an appraisal was required. Pricing the property had to be reasonable and on target for it to appraise, which it did.
History has shown that an over-priced property will languish on the market and then end up selling for below market value. Pricing properly is key even in this “hot” real estate market.
Property was Prepared for the Market
Although this home was nearly new, the home still had to be prepared, staged, cleaned and presented to potential buyers as a turn-key home. De-cluttering, paint touch ups, furniture arrangement and having a manicured yard were also key. The sellers understood that having a clean, presentable home would mean more cash in their pockets and a quicker sale.
Property was Professionally Showcased
And of course, the other key for the sellers getting $60,000 more for their home in 15 months was due to the professional marketing and showcasing of their property.
All mediums of marketing were covered: online, print and in-person to reach the broadest amount of buyers.
These particular buyers lived out of the area and found the home online (as many buyers do). They were drawn in by the professional photos and the marketing remarks highlighting the features of this home.
In the end, these four keys working together made this profit happen for these sellers. If a step was skipped, the seller would not have seen these results. All four have to be working at their peak for the best and highest results.
If you’d like to see a similar outcome for yourself, contact me today, and I can get you on the right path to get your home sold for the most amount of money in the least amount of time.