Marketing the Property

Developing a Strategic Inventory
Management Program
Gil Carlson, Unirisc
Cindy Mulhall, Encana
Julie O’Halloran, Canadian National Railways
Barb Kalydy, TheMIGroup
Gail Reinhart, TheMIGroup
Strategies to Keep Home Out of Inventory
Home warranty
Marketing the property
Strategies for Marketing an Inventory Property
Re-evaluation of the property (e.g., repairs/improvements)
Marketing plan (including staging and Home Warranty)
Pricing Strategies (including incentives)
• General home inspection at a minimum; additional
inspections required for certain areas, e.g., pest, septic,
• Full disclosure in the US, not necessarily in Canada (Buyer
• May be used by Realtor to market property
• Ensures corporate client does not acquire a home with
issues that must be fixed prior to resale
Recommended Repairs
• Recommended or required repairs:
• Potential insurance and lender issues such as roof/furnace
beyond life expectancy
• Safety & Health issues (e.g. mold, radon, electrical)
• Water penetration
• Structural
• Latent defects; a defect not discoverable upon reasonable
inspection of the property, e.g., inadequate wiring behind
walls, asbestos, Chinese dry wall
• Transferee should provide any warranties or service contracts
for major systems
Home Warranty
• Covers deficiencies found after purchase is completed on major
systems, e.g., central heating, interior plumbing, roof
• Valuable selling tool that helps protect the buyer from the
unexpected costs of major system and appliance failure during first
year of home ownership
• Home inspection is NOT required but items must be in working
condition at time of closing
• Coverage begins on inspection date and continues for 90 days
• Not yet typical in Canadian mobility policies
• Typical cost – $300 - $400 CAD
• Recent study shows that homes with warranties sold in 16% less time
and for a better price
Home Warranty (cont’d)
United States
• Typical closing cost requested by purchaser in most home sale
• Normally a concession by the seller and not an entitlement within
the mobility policy
• Typical cost - $350 - $500 USD
• For the Seller:
 Home ‘stands out’ to perspective buyers
 Eliminates ‘call backs’ when problems arise after closing
For the Buyer:
 Peace of mind from unexpected repair costs of major systems or
Marketing the Property
• Careful review of appraisals; ensure appraisers have taken
market conditions, location, etc. under consideration
• Broker’s Market Analysis; two if possible
• Marketing restrictions
• Impact of severing acreages to meet program criteria
• Property should be in good condition, neat and tidy
Your House As Seen By
Your Buyer
Your Appraiser
Your Lender
Your Tax Assessor
Strategies for Managing Inventory Property
• Re-evaluation of the property
• Maintenance
• Marketing plan
• Pricing Strategies
Assessing the Property for Resale
• New appraisals
• Change in real estate agent
• New Broker’s Market Analysis
• Review factors impacting property such as location,
condition, price
Set expectations!
Assessing the Property for Resale
• Is there something unique about the location?
• How was the location marketed and to whom?
• How does it compare to the competition?
• Is the interior in neutral colours?
• Is the exterior inviting or does the property look abandoned?
• What were the original agent’s recommendation when the property
was first listed?
• What is the current agent’s recommendation?
• How many showings; any second showings? Any offers?
• Were there any incentives offered during the listing period?
Repairs and/or Improvements
• Depends on the requirements for repairs within the corporate
mobility policy
• Full disclosure in the US gives the prospective purchaser all
the information regarding required repairs
• If only structural and safety repairs required, some minor
repairs may be left to negotiation with the prospective
 deferred maintenance/cosmetic issues
 broken window seals
 loose toilets, leaky faucets
 replacement of deteriorated wood trim
 damaged siding, eaves, etc.
Ongoing Property Maintenance
Vacant property insurance
Landscaping/snow removal
Property taxes
Mortgage payments
Ongoing management by Realtor
Marketing Plan
Review with current Realtor
Buyer Incentives
Realtor bonuses
Price Reduction Strategies
• Review pricing strategy every 30 – 45 days
• New BMA/BPO every 60 – 90 days
• Depends on:
Time of year
Current sales activity
Realtor/buyer feedback
• Based on client culture – price slashing vs
other strategies
Thank You!!

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