I met Stephanie (not her real name) for an estate sale on Tuesday, Nov. 8. She interviewed two more agents and decided to list the house with me on Sunday, Nov.13. I would have recommended to price it for $128,000 based on a CMA (Comparative Market Analysis). However, it had to be listed at the court appraised value of $135,000 and had to be sold quickly because it was a short sale even at the price of $135,000 . We needed to find a buyer quickly because the lender had moved the account to their foreclosure department. I asked my client to touch up some paint on the kitchen wall and move some clutter out of way. I went to take pictures and put it on MLS on Nov. 15.
After several showings, a first offer came in on Nov. 28. The offer was too low.
We decided to hold an open house on Sunday, Dec. 4. A realtor who sold this house last time, another realtor with a client, and two first time buyers who just started their search came. Nothing really resulted from this, but the agent who held it open gave us some tips on how the house can show better from the feedback she received that day. Stephanie took her advice.
Another showing was scheduled next day and an offer of $125,000 came in on Dec. 13. We exchanged counter offers and went into a contract for $127,990 three days later.
Now the ball was in the court of my client’s attorney. We had to get a court approval in order for us to close. He worked hard and got it approved on Jan. 6. We removed the contingency of Probate Court approval from the contract.
An inspection was ordered on Jan. 9 and an appraisal on Jan. 11. Three items (repainting of outside wood trip and facia, filling hole in over hang of facia area, leveling of patio) needed to be repaired for FHA approval and a few more things were requested to remedy by the buyer on Jan. 16.
We got estimates from different contractors who were available to do the work within a few days. The repairs were completed a day before the scheduled closing date. The appraiser went back to the house to approve the work for FHA loan that evening. The house closed on Jan. 27.
【Comments from Akiko】
The purpose of an open house is to get useful feedback from Buyer’s point of view. You almost never find a buyer from the open house. However, it is a useful tool to learn what improvements need to be made in order for the house to be sold.