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The Two Little Pigs?

By
Real Estate Agent with RE/MAX Elite Services, Nurit Coombe Team MD102148

Once upon a time there were two little pigs. The first pig had built himself a beautiful home of bricks. Every year he made sure that all of the exterior maintenance on his home was complete. He trimmed his bushes and took care of his landscaping. He kept the inside of his home clean and tidy and over the years he replaced his kitchen appliances, installed granite countertops, upgraded his heating and air conditioning unit, and even installed new carpet. His home was sparsely furnished, but well appointed and neutrally decorated. All of his neighbors knew how nice his home was and he even won the best house on the block award from his neighbors!

The second little pig had built his home from wood. His home was not so well maintained and he only addressed problem spots when they became emergencies. His roof often leaked during rainstorms, there where overgrown shrubs by the front door which made it difficult to get in the home. There were weeds in the lawn and he had neglected to paint for several years so there was rotten wood around his window sills. His kitchen appliances had been replaced ten years ago and he had painted the inside of his house vibrant colors during the seventies. His bathrooms were original except for one new vanity in the master bath. His neighbors often wished he would better maintain his home because they thought he was bringing the housing values down ion the neighborhood.

One day the two pigs were talking and they both decided they wanted to move to the beach so they could enjoy some time surfing, fishing and start a new business selling surf boards. The first little pig called his real estate agent and scheduled an appointment in one week.

For the next seven days the first pig cleaned his home, removed boxes from his basement, repainted his kitchen and installed new bright lightbulbs in his living areas. He cut the lawn and remulched his flower beds.

When the real estate agent arrived, he was pleasantly surprised at the amazing curb appeal of the first pig's home. When the first pig opened the front door the REALTOR could smell the fresh lemon fragrance of the cleaner that the first pig had been using. The agent walked through the house and complimented the pig on how well maintained and nicely the house showed.

The real estate agent and the pig went over all of the comparable sales info at the dining room table and both were very pleased at the conclusion. They agreed too list the house at the highest comparable value and stay within the neighborhood values.

At the end of the meeting the first pig told the agent to call the second pig.

A week later the agent arrived at the second pig's house. He was immediately put off by the overgrown lawn and unkempt landscaping. He noticed the home needed paint and the rotten wood around the window sill. He caught his jacket on an overgrown shrub walking to the front door and ripped it. When the second pig opened the door the agent could smell the fish that the pig had cooked for dinner. He asked the agent to overlook the mess of newspapers and boxes on the floor. The second pig made excuses for all of the neglected repairs and pointed out the new, ten year old kitchen appliances. When they sat down at the table to discuss the details of the sale the second pig was insulted when the agent told him he would need to make many repairs to the property and that he would have to price his house on the low side of the comps. The second pig decided the agent was wrong and so he listed with another agent at a price much higher than the first agent suggested, without making any of the repairs.

Both pig's houses went on the market the same day. During the first week the first pig's house was shown more than 20 times and he received three offers on his home. One offer was above full price!

The second pig only received 5 showings and no offers.

Several months later the first pig was packing his moving van and getting ready for the trip to his new beach condo. The second pig still had not sold his home. His agent had done several open houses and run several ads, but no one made any offers.

After many price reductions and multiple realtors the second pig was ready to give up. The first pig urged him to call the first agent back. The first agent came back and made a detailed plan with the second pig. For the next several weeks the second pig had his house painted, he replaced the leaky roof, put new carpet and kitchen appliances and fixed all of the problem areas. Then the first real estate agent listed the home for sale.

In one week the second pig had multiple offers on his home and in no time he had moved into his new condo near the beach and the first pig.

From then on, the second pig made sure that he maintained his home, cut the grass and got rid of all the clutter--just in case he didn't like living at the beach!

Alan Gross
PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD
Loan Consultant

The condition of a home makes a great difference in both the sales price and time on market. A few years ago when we had a sellers market it wasn't quite as important. Now good homes are getting multiple offers while homes in poor condition tend to sit for months.

Jun 11, 2009 08:15 AM