By Leon d’Ancona B.T.L, M.T.L., RRESI, CEO
If you subscribe to the idea that a real estate professional does more than only plain listing and selling a home, then this article is for you. I would like to show you a facet of what you can do for your clients that very few real estate agents have even considered. Take the assumption that most people do some renovating prior to moving into their newly purchased home. If you add to that the fact that bridge financing is easily available, then what I’m about to show you start making excellent sens.
If the average price of a two bedroom in a city core, in this case is $272,489 while a three bedroom is $335,166 then the difference is $62,677 (keep that figure in mind). For now, we will pick a three-bedroom home.
Now, how much is a washroom worth? have a look at the difference between two bathrooms and three bathrooms. Grab your calculator and note that the difference between the two is $137,148.
Now ask yourself: is it a given that the three-bedroom house is actually bigger, better, and contains more square feet than the two-bedroom?
Compare the first column square feet with the average sale price to prove that square footage does not necessarily affect the sale price
The chart below indicates that the measure of square footage does not reflect price.
With this in mind, it is very possible for you to say the following: “My dear Mrs. Homebuyer, why don’t we go for three bedrooms, with two washrooms, with fairly large square footage in the area that you are looking for, and I’m sure you will be able to build a washroom and perhaps even an extra bedroom for less than $137,148.”
Because no one is living in the house, you can organize the construction to be quick, efficient and the bridge financing with today’s rates adds nominally to your mortgage cost.
Very few real estate agents go the extra mile and have information like the charts above to show to their clients. By providing data like this, they can earn their reputation as being not only realtors but good advisors as well. It is this kind of information offered to clients that will enhance your stature as a real estate professional.
Leon d’Ancona is North America’s foremost authority on real estate statistics. He is a noted speaker, and his ability to amuse audiences with his real estate statistics is legendary.
Author of The Official Guide to Home Price Changes, and many other publications. Leon is the guiding force of REality® software, an easy to use amazing software updated every month.
He is easy to reach and is always available for clarity in what is going on in any real estate market. 877-785-4321