The Move Down
475 Bouchard Farm Rd., Stowe, VT - "The Move Down"
Our client, John La Pan, owned 475 Bouchard Farm Rd., in Stowe, VT. His goal was to sell the house and capture the equity he had built up in the home. He was contemplating using the equity to avoid having a mortgage on a new home or to increase his retirement investments/income. The property was first put on the market in 2007, with no luck. We started marketing the property in 2014.
John called us in to look at the house and advise him on how to sell his property. We created a detailed competitive market analysis with a custom marketing plan. Our assessment concluded that the property in the current market should achieve a sale about 6.5% to9.5% greater than the assessment on the property, $326,200. Contemporary style homes can be harder to sell than traditional style homes. Some people don't like contemporary homes and will not buy them. A smaller potential buyer pool often equates to a reduced purchase price.
The property had many positive attributes that far outweighed any strike against it regarding the architectural style. The property had access to the Stowe Rec Path (click this link for info, or click here for a video on the Rec path) and is walking distance to the Stowe Farmers Market, the new Alchemist Brewery, Trapp Lodge and Brewery and the Stowe Corn Maze. The views of the Worcester Mountains are protected by Bouchard Farm, which is the Stowe Land Trust and the State's Current Use program. The property also fit a simple real estate maxim, it was the lowest assessed property on the street. The market had already demonstrated a willingness to pay a much higher price in that location.
Our market analysis concluded that homes in the $300,000 to $400,000 were selling about 8.5% to 10% above their assessed value. 475 Bouchard was priced slightly lower because of the contemporary architectural style. We put the property on the market with a $370,000 ask, 12.5% above the assessed value. We received an offer of $350,000 within 30 days. At 8% above assessment, this was a very strong offer. However, real estate is more about timing than price - the owner couldn't find a suitable place to move, so he didn't accept the offer and pulled his house off the market.
About nine months later the owner found a place and wanted to go back on the market. We were able to get an offer at $342,500, about 5% over assessment. The owner accepted the offer as it was sufficient enough for them to realize their goal of buying a new home all cash. We were able to work out an agreement with the buyer to let the seller stay in the house after closing so they could manage their move to the new house without feeling pressured.
It was a pleasure to help our client realize their goal of moving to a smaller more manageable property and reducing their expenses along the way. If you are contemplating a move down, please feel free to reach out to start a dialogue regarding a focused marketing strategy!!
Please feel free to contact me at firstname.lastname@example.org or 802.585.1131.