Marketing the Property

Report
Developing a Strategic Inventory
Management Program
Panel:
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
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Inspections
Repairs
Home warranty
Marketing the property
Strategies for Marketing an Inventory Property
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Re-evaluation of the property (e.g., repairs/improvements)
Maintenance
Marketing plan (including staging and Home Warranty)
Pricing Strategies (including incentives)
Inspections
• General home inspection at a minimum; additional
inspections required for certain areas, e.g., pest, septic,
radon
• Full disclosure in the US, not necessarily in Canada (Buyer
Beware)
• 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
Canada
• 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
transaction
• Normally a concession by the seller and not an entitlement within
the mobility policy
• Typical cost - $350 - $500 USD
Benefits
• For the Seller:
 Home ‘stands out’ to perspective buyers
 Eliminates ‘call backs’ when problems arise after closing
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For the Buyer:
 Peace of mind from unexpected repair costs of major systems or
appliances
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
Yourself
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
Location
• Is there something unique about the location?
• How was the location marketed and to whom?
Condition
• 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?
Price
• 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
purchaser:
 deferred maintenance/cosmetic issues
 broken window seals
 loose toilets, leaky faucets
 replacement of deteriorated wood trim
 damaged siding, eaves, etc.
Ongoing Property Maintenance
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Vacant property insurance
Landscaping/snow removal
Utilities
Property taxes
Mortgage payments
Ongoing management by Realtor
Marketing Plan
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Review with current Realtor
Staging
Buyer Incentives
Realtor bonuses
Price Reduction Strategies
• Review pricing strategy every 30 – 45 days
• New BMA/BPO every 60 – 90 days
• Depends on:
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Time of year
Current sales activity
Realtor/buyer feedback
• Based on client culture – price slashing vs
other strategies
Thank You!!

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