Johnny Cash Applied To Real Estate.
Meet The Clients: Smart, disciplined, and highly capable. But even David and Lilin, knew that the possibility of selling their home for the amount needed to move to California, could be problematic. Raising their family, in the home of their dreams, had been nothing but great memories for the couple. With their two kids now living out west, raising families of their own, David and Lilin desperately needed to make the move.
Without a high sale price, they could not move do to the high cost of housing in California. This was not an option. They knew it would be difficult, but they also knew they had to have an active role in their grandchildren’s lives.
This is where the story begins…
The Situation: To take you all the way back, this story began in 1996. David was in the midst of starting his own business after leaving the corporate world. A place he had achieved much success but felt unfulfilled trying to climb the corporate latter. David felt he could be a problem solver. Starting a business and becoming an entrepreneur/problem solver is something he had always aspired to do. It just never seemed to be the right time to take the leap of faith.
The problem was he had purchased his Arlington Heights dream home in a new development in 1994. Taking the risk of going on his own with a mortgage and two kids was daunting. But like most people with conviction, a purpose in life, it’s hard to hold them back from their dreams. When the home was purchased in 1994 it was a custom built to their family’s specifications. With over 4,000 square feet of living space the home had tons of room to grow into. It was in a desirable neighborhood with great schools.
But as many things do over time they age.
They lose their luster.
They become out of date.
Being a savvy business owner in the realm of finance and building, David knew the home needed to be updated to get the dollars (profit) he needed to move to an expensive California market. With the desire to be with their grandchildren and the busy schedule of running a business, David didn’t have the time to do the work himself. Running his business is a full time commitment. This is what prompted David to reach out to me after reading my book. David and I started conversing, over a cup of coffee, about the context of the book. He felt a Value Driven Approach was what would be necessary to get him the results needed to move on. Being a disciplined investor, in his own company, David knew the concept of Value investing. He knew it could go a long way if it were applied to selling his home.
The Options… David and Lilin had a decision to make that would affect their later years in life.
Option #1) Time-strapped and stressed, they couldn’t roll the dice, something they did in 2015 putting their home on the market with no updating. And hope to net just enough to make the move out west limiting the search for the neighborhood they wanted to live in. This choice meant sacrificing the profit-potential that updating could bring.
Option #2) Don’t sell. Keep the home. Sacrifice not getting to spend precious time with their grandchildren. This option, was not acceptable and was never considered.
Option #3) David and Lilin could move forward with the Value-Driven Approach. Meaning they would have to trust Steve and his interior designer’s recommendations, as his team executed the vision laid out. In total, Steve and his contractors estimated the cost of renovations at $13,000-congruent, and in line with The Value Driven Approach philosophy-to be able to list the home at $725,000. Which, for that neighborhood, would be a very high sales price. The challenge, of course? Getting the updates and the work completed within 60-days, putting their plan of purchasing their California home in jeopardy.
The Decision (and Results): David and Lilin decided on Option #3. They enlisted Steven Weirich of Compass to execute the Value-Driven Approach. To David’s credit, he was an expert in his own field. So he knew first hand, how hiring an expert could yield a superior outcome. He and his wife, working together to start David’s business knew about the discipline it took to succeed, as many entrepreneurs do.
Following the plan, came second nature to them. With the first month, the first stage of the project was completed. At the start of the second stage, the marketing campaign “Coming Soon” kicked in. Building demand prior to launch, is a critical promotion step that many overlook in the renovation process. From beginning to end, the renovation took two months. Leaving David and Lilin in awe of the transformation that took place in their home. “I can’t believe how good it looks. I can’t believe we didn’t do this last year.”
Naturally, David wanted to list for more. However, as Steve explained, that would be a fundamental mistake. Pricing the home aggressively will attract the most amount of buyers. Pricing the home at $725,000 keeps the search range where the highest number of buyers are for this particular neighborhood. When the home went active on the market we had 8 showings and two offers within 15 days. A far cry from what had taken place the previous year when they had it listed with another agent. When the negotiations were complete we had an all cash offer of $709,000 with a 30-day close. This outcome surpassed David expectations. With his $13,000 investment, using The Value Driven Approach, he was hoping for $695,000.
The book had struck a chord with David while reading it. As it has with many others. It’s why David sought out Steven’s expertise in the first place.
The Secret To Making It Happen: To understand one of the principles behind the Value-Driven Approach, it helps to know the story behind Johnny Cash. As a columnist, Scott Broady, recently wrote, “Considered by many to be the most influential artist in the history of country music, Johnny Cash also happened to be a legendary category designer, who spent more than thirty years breaking all the rules of traditional country music, only to emerge as a mythic hero and archetype for the genre that many others have tried to emulate. The same way Elvis became the King of rock and roll by creating something that was not just better, but very different from what came before.
Johnny Cash created his own sub-genre of music, by combining the emotional honesty of folk.” In essence, and this is what we do with the Value-Driven Approach, Johnny Cash created his own category. Which, when you do so, our clients can attest. It’s easy to out-compete the other artists (in Johnny Cash’s case). Or the other homes on the market, in our case, to maximize the profit of a home sale. In David and Lilin’s case, that profit amounted to more that $26,000 in just 60 days in preparation work.
Like combining Country music with Rock’n Roll. One design style that we combine with other popular categories—is the work of Chip and Joanna Gaines. The famous HGTV duo is best known for their reality TV show; where they find and transform properties into people’s dream home.
Often in their work, they use a very specific kind of backsplash tile. The tile is extremely cheap, just $.30 per tile. But the return on that small investment can be huge. In this case, by estimate, from analyzing previous sales data, that $750 investment returned near $5,000 in profit. It’s the little, but very important things like that, that is the secret behind our client’s results. And how our client’s properties, often sell quickly for top dollar in your neighborhood.
As we tell all of our clients, you can choose to maximize your profit. Or you can choose to sacrifice it. Congrats to David and Lilin, for making the best decision for themselves and their grandchildren! And thank you to my team of experts who execute our Value-Driven Approach with precision. It’s all of your hard work on behalf of our incredible clients and family that make us thrive.
To Maximize Your Profit, Speak to C. Steven Weirich Of Compass About The Value Driven Approach. Call or text to (847) 607-6711. Steven Only Takes On Four New Clients In A Month. So Be Sure To Reach Out ASAP!