Assessment Isn't Everything
288 Pinnacle Rd, Stowe, VT
288 Pinnacle was a 1970s ski chalet that had been on the market previously with two other local and reputable real estate agents, once it was on the market with an even lower asking price. The assessed value for the building had been reduced by the Town of Stowe prior to putting the property back on the market. Based on the new assessment, the potential for the owner receiving an offer where they could sell their house without coming to the closing table with cash seemed bleak.
The house had been used for years as a short-term rental house when the owner didn’t use it. This is a double-edged sword. The added value created by the rental income has to be weighed against the additional wear and tear on the house. The house had not been updated in years and had obvious maintenance needs.
To compound issues, the owner refinanced during the real estate boom of the late 2000’s and had a specific price goal to avoid bring money to the closing table. Because the house had been on the market before it have a stigma. The marketing plan would need to access a different group of potential buyers to be successful in a revised marketing effort. As we tell prospective clients, we don't change the real estate, we change people's perception of the real estate.
The rental history was so strong that it lent itself to a reasonable estimate of the total annual rental income that could be achieved. The property actually had a great shot at becoming a profitable investment. Marketing the house as a rental, one where a buyer could achieve actual rental profit opened up the buyer pool. Ultimately, the Seller sold the house 8% over assessment while setting a high water mark when measured on a "sales per square foot" matrix for 1970s product.
This is exactly why switching agents and having a new set of eyes on a property can create vastly different results. None of the agents who marketed the house had presented it as a lucrative investment. It was always marketed as tired house - one where they agents kept telling the owner to lower the price.
It is also worth noting that the new owners have remodeled the house and continue to use it as a rental. The modern finishes compliment the 1970's architecture. Please follow this link for more information on the before and after results - really, a wonderful job at realizing value on the part of the buyer, www.twocreekhill.com.