How Your Listing Prep Plan Can Set You Apart from the Competition

Prepping for Success: Plan your response to the question of how to prepare a home for sale.

By Daniel Rome Levine

Moving into a new home is far more exciting than leaving an old one—decorating options, furniture choices, paint colors and landscaping designs abound. But convincing sellers to stop for a moment and focus on maximizing the value of the house they are leaving not only ensures a speedy sale at the highest possible price, but it helps cement your reputation as the go-to REALTOR^® in your community.

Inspect Up Front

In the San Francisco suburb of Fremont, homes don’t stay on the market very long. Inventory is tight and there are ample buyers lined up with offers. The challenge for Carl Medford, CRS, is convincing sellers that even though their property may sell quickly, they won’t get top dollar unless they invest in preparing it for the market effectively.

And that’s not such a tough sell, says Medford, head of the Medford Real Estate Team, Keller Williams Benchmark Properties, in Fremont. Convincing clients to make upgrades to the house they are selling is far easier than it used to be, he says, in large part because of the popularity of cable TV home remodeling shows featuring people who have realized big profits undertaking renovations.

“With everyone watching HGTV, people understand right away that the only way they will get top price is if they prep the property effectively,” Medford says. “A wise investment up front pays huge dividends once the property hits the market. We are seeing a normal return on every dollar invested of $2 to $3 back to the client when the property sells, and sometimes dramatically more. It’s a huge value-add for our clients.”

Medford only goes into detail with clients as to the cost of specific fixes and what the expected return might be once they have signed a listing agreement. Up to that point, he only shares general ideas on possible upgrades.

The incentive to work with Medford is high, because he offers potential clients access to a full-time property prep manager on his team who coordinates and prioritizes all renovations. The property prep manager helps clients develop a comprehensive, written plan of what needs to be done and coordinates the various workers required to complete the job. Helping clients prioritize the work is key. “The property prep manager knows what items will reap the highest benefit and which things do not need to be done,” Medford says.

Medford places such a high priority on getting properties perfectly prepared for sale because his market demands it. “Property prep and staging are critical in our market because there is an increasing trend of millennials only buying homes that are fully prepared and move-in ready,” he says.

Wise Advice

In suburban Boston, Bill Kuhlman, CRS, with Keller Williams Boston South West, says most sellers understand that a property will sell faster and for more if it is in the best possible condition prior to hitting the market.

The clients he has the hardest time convincing are those who have a home that is in complete disrepair or who are selling the property for a family member who is elderly or deceased.

In these cases, he gets clients to see the benefits of investing in prep work by providing actual examples, including specific dollar amounts, of past clients who have and have not upgraded their homes before putting them on the market. The difference in net proceeds between those who invested in presale preparation and those who didn’t gets the attention of clients.

Kuhlman recently worked with the adult children of an elderly man who were trying to figure out how to sell their father’s mid-1950s house. They were unsure what to do because the family’s attorney was offering them $375,000 for the modest home, which was located in a high-demand area, in its present, relatively poor condition. While that approach would certainly have made their lives easier, to Kuhlman it looked like an attempt by the attorney to flip the property for a hefty profit.

Instead, he told the children that if they invested in new windows, a minimal kitchen remodel, refinishing the floors, painting the walls and ceilings, and installing a few new light fixtures, they could sell the house for a price that would more than cover their investment. The children agreed, paid for the fixes and were well-rewarded. The house sold for $655,000.

“While I strongly believe that property preparation and presentation are key to attracting the best offers in the shortest amount of time, the decision is always up to the client,” Kuhlman says. “My job is to make sure clients know and understand their options.”

Seeing Is Believing

Waylon Chavez, CRS, a broker with ABQ Premier Properties, in Albuquerque, who has published a book, 6 Ways to Profitably Sell Your Home, also finds it effective to share previous success stories to help clients understand why they should invest in property preparation. “Most of the time, when I am done talking, they are asking me when everything will be set up,” he says. “Even when inventory is tight, a home that looks good and is in good working order will stand out from the crowd.”

Chavez does not wait until a client has signed a listing agreement to go into detail with them as to what fixes he thinks are necessary. “I believe in sharing and helping others in any way I can, even if they do not select me to work with them,” he says.

To help illustrate the importance of property preparation, Chavez often drives clients around their area showing them other homes for sale, or ones that have recently sold, and pointing out the difference in price between those that were carefully prepped and those that were not. “Sometimes numbers aren’t enough and they’ve got to see it with their own eyes,” he says.

First impressions also matter a great deal to buyers, says Chavez, and that is why he stresses to clients to pay special attention to making sure the property’s exterior, and especially the front of the home, is in pristine condition. “The front of the house is the first thing people see when they arrive,” Chavez says. Creating the strongest possible curb appeal means having, at a minimum, a well-manicured yard, neat and trimmed landscaping, and clean windows. 

Daniel Rome Levine is a freelance writer based in Chicago.

CRS Instructor Chandra Hall shares some tactful strategies to get clients to commit to putting some work into their home—without offending them or scaring them off—here.