Net Recovery
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Most property owners are focused on the sale price of their property but they do not fully consider the cost of ownership over the period of a listing. By selling sooner you will receive a higher net recovery. Interest in a property fluctuates over time. Interest when a property is first listed peaks after two to three weeks. From that point on it drops significantly to a low point during the third month and stays low waiting until a new prospect enters the market or there is change in the market or dynamics of the property. During this time monthly holding costs add up including property taxes, insurance, lawn care, repairs and ownership risks increase for vandalism, accidental liability, weather, water damage from roof leaks or leaky pipes or sprinkler system all which leads to mold growth and expensive repairs that can devastate a property. Copper prices are on the rise again and many vacant properties are broken into and the cooper is ripped out. As a result costs of ownership and the increasing risk of events that cause significant expense demonstrate why an accelerated sale should be chosen as the first listing method or after ninety days of a traditional listing (ask about SAGE's 90 day listing program). SAGE's accelerated sale method revives the interest in the property through a huge marketing blast targeting end users to revive the interest and the auction sale date requires urgency for prospects to take action.
Example of Auction sale that would have been listed for $1.5M but at auction closes on the third month at $1.3M (net after expenses $1,277,500) vs holding a listing that takes a year to sell while holding costs rise you net $988,000. The auction nets a higher recovery by $289,000 and would break even if the property sold after the fifth month. |
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