The Warren Buffet Approach to Sell Real Estate

Use Our Value-Driven Approach

Have you ever wondered, like I have, why must MY house sell for what my neighbor’s house down the street sold for? You see, this is what is called a Price-Driven Approach. This approach is where agents look at what the other homes sold for in the neighborhood and then take an average of the sale prices to arrive at their list price. This is an inferior and outdated approach. I refer to this as an Elementary way to sell and price a home. After studying Warren Buffett and his philosophies when he invests in or purchases companies, he takes a totally different point of view. He takes what is called a Value-Driven Approach. He can look at a company’s, Value NOT Price, and he can find hidden ways to increase the value of that company. Just like Buffett does with companies, we do with your home. We find ways to increase the Value, or better said, the Perceived Value of your home. This approach is a higher level, a Graduate School for “value” is there. We do this by hitting emotional triggers with perspective buyers. What I have found, is that when buyers can make a decision based on emotion, they are much more likely to make a better offer.

We teach our clients to take a Value-Driven vs. a Price-Driven Approach when preparing your home for sale. What we have found, is that by enhancing the perceived value of your home that clients have sold their home for up to $30,000 over similarly priced homes on the market.

There are 7 distinct features that help us increase your Value when selling.  Here are two of those seven.

What is the Warren Buffett Approach to Sell Real Estate?

Below are 2 of the 7 strategies.

MORE SHOWINGS MEAN BIGGER PROFITS-

It is a simple fact. Bluntly stated, we want buyers making emotional-decisions, not logical decisions. The more traffic we can generate, meaning more showings, the higher the likelihood of finding that person who doesn’t just like your home, but LOVES it. This is why it’s important your home tells a story. And captivates potential buyers before they arrive in person. This is the secret to more showings and higher profits. Here’s how we do that: Since 92% of home-buyers begin their search online for a new home—photos—what people see about your home—can make or break your success.
This is why we hire THE BEST photographer in town, Mark Riehle. What he can do with a camera is incredible. I’m always thrilled when I see other agents out taking their own pictures, with their cheap cameras and poor lighting of the competing homes in a neighborhood. The end result, it’s like watching a 1950’s black ‘n white TV versus today’s color TV in crystal clear stunning High Definition. There’s NO comparison. And it’s not just the camera and the lighting, it’s what Mark does with these photos once he picks out the 25 or 30 best photos that tell your home’s story. Sometimes he takes 200 to 250 different shots, he is nothing short of magic. I’m not a photographer so I can’t tell you what he does—overlays, stitches, brighten, lightens, whatever it is. But he, at what he does, is a genius. I’m just honored to have him on my team, working his skills on behalf of my clients. Not long ago it was proven to me just how powerful his work is, and just how big of an effect it, really, does have.

At a recent showing, we had a woman doctor, who lived in Southern Maryland; send her husband down to view one of my client’s homes. As he was touring the property, I overheard the phone conversation between he and his wife, she asked, “Does the house look anything like the photos?” He assured her that it did. Within 2 hours, I had a full-price CASH offer on the home. It wasn’t until a week later that the wife finally laid her eyes on the actual home, and she was still IN LOVE. Now, to be fair, I doubt it was the photos that sold this client’s home—but, without the photos, I can’t help wonder… would this couple have noticed my client’s home online? Would my client’s home stood out, captured this couple’s attention, in the sea of thousands of homes on the Internet? I don’t think so…

This is why I hire Mark to help me (visually) tell your homes story in stunning and vivid full HD detail –not the outdated 1950’s black ‘n white. Trust me, a photo is not just a photo. And Mark is not cheap. But he is the best. And his ability to tell my client’s homes story, time and time again, has proven to yield more showings, thus, bigger profits. I obviously don’t know the exact value of extra dollars in profit this represents, as every home is different—but conservatively—an extra $5,000 to $10,000 can pretty easily be expected.

MODEL HOMES GENERATE HIGHER PROFITS-

Is a well-known fact. Once buyers can visualize themselves in a home, can see how the layout will work for their family, can feel the openness and love; you have lowered their resistance to making an offer and have vastly increased the likelihood of getting a strong offer. When buyers can openly see a house, as their house, not one that is lived in by another family then the buyer starts—as we want them to – making an emotional decision, not a logical one, and an emotional decision always bring higher profits. This is why, and you may not know this, why builders spend so much time studying the science of staging homes…correctly. Trust me, little things like this matter.

This is exactly why we hire THE BEST, MOST SUCCESSFUL Stager in the area.  Have you ever seen the show Love It or List It? If not, it’s a simple premise. First, there is a homeowner. This homeowner, usually, is a person who’s grown somewhat bored with their home and now is considering selling it. Then, their interior designer, Hilary Farr, and real estate agent David Visentin—these are the characters of every episode. While Hilary attempts to restore the homeowner’s excitement about their home, by “transforming” their current home, real estate agent tries to find them the home of their dreams. Once all work has been complete and all potential homes have been viewed, couple must decide whether to “love their home” or list it – about seventy-percent of the time – the homeowner chooses to “love their home” and keep it rather than sell it.

This demonstrates how the proper use of SCIENTIFIC STAGING, can be powerful. And can be a huge motivator, in making a buying decision. This works on a behavioral level. Scientific Staging pushes buyers from just comparing beds, baths, and square footage, to being emotionally connected to a home, in which they can see themselves living –end result – higher sales price. This is why I hire the best on behalf of all the clients. This women, like Hillary Farr, can transform your home from a “lived in” home that is comfortable and fits your family needs to one that could be mistaken for a model home.

I don’t claim to know Staging Science – so I bring in, locally, the very best.

There is an old adage that says “You never get a second chance to make a first impression.” This is especially true when selling your home. Just as we do with our photographer, Mark Riehle, we depend heavily on a Stager as part of our team, to help tell your home’s story. This “buzz” created – from the total package — makes your home stand out leads to quicker, higher priced sales. And this is not just my opinion. It has been proven. A recent study by ASP® said that staged homes sold 5 times faster than non-staged homes. (The average was 29 days for staged homes vs. 145 days for non-staged homes)

Of course, and it goes without saying, it must be done right, there is a Science to this. A lot of real estate agents will claim to be “stagers”– I don’t – so be careful and cautious about these claims. Candi is my stager, and she does it brilliantly…

The ugly part is, for a non-staged home or incorrectly staged home, that additional time on the market (statistics say: extra 116 days) means that homeowner is likely to experience one to as many as 3 price reductions and , typically, most agents push for at least a five to $10,000 per reduction drop. This can get costly; that’s $15,000 to $30,000 in lost profits, not to mention the 4 extra months of mortgage payments, property taxes, utility and maintenance bills, 4 months of extra stress, frustration, being inconvenienced, having people traipse in and out of your home – in your personal space. This is why we operate the way we do, and have carefully chosen (and invested in) the team that we have.

Now paying to transform your home is NOT cheap, but hiring the best is worth it – and as a client, this is included. When it comes to your largest investment, as Creator and Innovator of ‘The Warren Buffett Approach to Sell Real Estate,’ I refuse to cut costly corners. Some agents will and do. Not me. I don’t. I refuse. We’ve seen our clients pocket as much as an additional $10,000 to $15,000 more just from the science of staging alone – buyers making emotional decisions rather than logical decisions. This is the end game, WE WANT TO WIN!

Achieving consistent outstanding results for sellers is not happenstance. Done correctly and strategically the results are predictable. Do we always break neighborhood records? No. Do we sell every home we list? No. This book is not about a magic formula and promised results. What this book and the fundamental principles detail are specific strategies to best position your home against competition and to have buyers purchase your home as opposed to your neighbors’.

I understand that your home is, most likely, your largest investment and for that reason we offer unique services that are value-driven in their approach and each service that we offer brings something unique to add value to your home sale.

This is just a sampling of our entire process for helping sellers achieve maximize profits.  Click on the link below if you’d like to learn more:

www.ScheduleYourFreeAppointment.com