2nd Case Study: Beautiful, Brand New Home Not Appraising, Fell out of Escrow
The Iskus Group
The Situation: Previously on the market with another agent, Gorgeous, New-Construction home, not appraising so buyer backed out.
The Outcome: Received 4 offers, all with strong down payments so appraisal was not an issue
An architect contacted us to re-list his property after his amazing property fell out of escrow. He was disappointed because although his home was the biggest and most beautiful home in the neighborhood, there were not enough comps to support the price, therefore the appraisal came in low. The buyer and seller could not reach an agreement over price, so the buyer backed out. Although the marketing wasn’t terrible, it could have been a lot better, especially in a luxury price range. The previous agent didn’t do much more than just have professional photography done and expected the home would sell itself.
We studied the highest priced homes ever sold in the area and we knew the issue was not the price of the home. We got the property professionally staged, had amazing photography, videography, catered lunches, exposed it to everywhere and everyone, networked with all of the agents in the area and received 4 offers after the first 2 weeks on the market. Since we had 4 offers, it was the negotiating over the terms and down payments that made the difference. We were able to offer the seller value without driving the price too high for the area by asking for higher down payments and for the buyer to pay for the seller’s closing costs (which in this case was $28,000). The appraisal came in right at value and escrow closed in 3 weeks.