The $108K Investment That Returned $1.1M in Just 10 Days
I have conversations with many sellers who often wonder if investing in preparing their home for sale pays off. It is, however, vital to make the right improvements. By investing in the proper presentation of a home a seller can be rewarded through expanding the buyer pool and removing any objections from buyers about the condition of the home. This allows buyers to just focus on if it's the right home for them and what price they will pay rather than stressing about issues a home has or work they reluctantly would want to, or have to do, prior to moving in. I just closed on a property that perfectly shows why the work we do upfront makes such a huge difference.
What makes this even more compelling is that we can compare it directly to three other similar properties in the same area that sold recently without any preparation work. We conduct this analysis for each client, showing the value of the home as-is versus with improvements.
The Numbers That Tell the Story
Recently, we closed on a listing at 1000 Capuchino that shows what I’m talking about:
Listed at: $1,595,000
Sold for: $2,700,000
Time on market: 10 days
Number of offers: 9
That's $1,100,000 over the asking price
What Made The Difference
We know what buyers want and what they don’t. After our analysis, we recommended not selling the home as-is.
Here's what made this approach different: This level of investment—$107,895—is atypical for sellers regardless of price point. I haven't seen any other listings that made this kind of commitment to preparation. Most Realtors recommend minimal preparation and getting to market quickly. I strongly believed that going this route would make a big difference. And our team managed every phase of this multi-month preparation process.
Here's what that comprehensive preparation included:
Interior Transformation:
Complete interior painting ($12,000)
Hardwood refinishing ($21,334)
Electrical updates, including new lighting, replacement of outlets and switches, labeling the electrical panel, and new smoke and carbon monoxide detectors ($6,763)
Professional staging ($5,150)
Systems & Infrastructure:
New HVAC system with heat pump options ($31,554)
Concrete foundation support work ($13,800)
Plumbing improvements and utility updates ($537)
Exterior & Curb Appeal:
Professional landscaping ($7,519)
Exterior painting and pressure washing ($2,900)
Window cleaning and deep cleaning throughout ($1,280)
Rodent proofing ($1,935)
Professional Inspections:
Comprehensive home, pest, and engineering inspections ($1,875)
While we were putting together this level of preparation, I noticed several other similar listings that took a more hands-off approach:
A two-bedroom at 1411 Sanchez on a slightly larger 4,000 s/f lot, sold for $2,100,000. This home was literally just a few doors down from ours. It had superior flow to the yard, but was presented in more original condition. The home felt a little darker inside and the colors were less neutral. The asking price was $1,600,000.
A two-bedroom home at 1410 Capuchino was initially listed for $2,300,000, then had a price reduction to $1,998,000, and ultimately sold at the new asking price. This home was nearly identical to ours at 1,220 s/f.
1361 Edgehill, a couple blocks away, was a two-bedroom, two-bath home with 1,610 s/f on a larger lot of 4,821 s/f; it had an asking price of $1,849,000 and sold for $2,000,000.
Another home that came on the market right before us 219 Dwight initially had me thinking they'd have a strong outcome. It was in a stellar location in Lyon Hoag (arguably a more premier location, half a block from the residential part of Burlingame Ave near the new Burlingame Community Center). I know both of these locations very well as we own homes within a few blocks of Dwight and Capuchino, and I grew up a few blocks away from Capuchino. Anyway, 219 Dwight was a two-bedroom home was 1,340 s/f, and the lot size was pretty solid at 5,373 s/f. The asking price was $1,898,000, and it sold with one offer at the asking price. The thing about this home was that it was sold only at the asking price. I realize that every homeowner has different plans and goals for their home, and I'm sure all parties in the transaction were pleased with the outcome. I can only imagine what kind of outcome the sellers might have achieved if they had chosen to invest in the home prior to selling.
The key difference?
None of those properties had this level of strategic preparation work. They went to market essentially as-is.
And our property was thoughtfully prepared.
Properties without prep: Sold at or slightly above asking.
Our property with full prep: Sold $1,100,000 over asking, crushing the record in Burlingame for a home of this square footage on a substandard lot size.
Same neighborhood. Similar properties. The only difference was the preparation strategy.
Why This Matters for You
Based on the sales prices of comparable homes, this demonstrates that strategic investment preparation pays off dramatically.
The math is pretty compelling:
Investment in improvements: $107,895
Sale price over asking: $1,100,000
Net gain from our approach: Over $990,000
That's more than a 9x return on the preparation investment.
Now, many of our listings do not typically see this level of investment pre-sale, so it is certainly not a one-size-fits-all situation. But it is consistent with how we view presenting homes to the marketplace, so our sellers are positioned to have the best possible outcome on price. This example really shows how the behind-the-scenes work we do sets the stage for these kinds of results. The market is showing us that buyers are willing to pay premium prices for properties that are positioned correctly from day one.
If you are considering selling your home, I’d be happy to walk through how this approach could work for your property.
This article is copyrighted by Raziel Ungar and may not be reproduced or copied without express written permission.
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