Chicago Relocation
 

A picture is worth a thousand words

August 18, 2014

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Chicago Real Estate
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John D’Ambrogio

But sometimes a well placed word or two can get another ten grand or so!  This according to a recent WSJ article that reported on an analysis of property descriptions and their effect on sales price.

What were award winning words?  Well, in today’s market phrases like granite countertops and wood burning fireplace seem to make a big difference.  I might beg to offer that simply having these items is what makes them sell, but I am not an analyst.

Bennie Waller, a professor of finance and real estate at Longwood University in Farmville, Va., told the Wall Street Journal that property characteristics described in each listing increases the sale price by almost one percent and the probability of selling by over nine percent. “That means a listing with 15 additional property characteristics sells for roughly a 13.5 percent price premium,” according to Waller.  Included in the helper words were any ‘positive’ words like gorgeous and beautiful.

The study looked at a Virginia MLS and analyzed some 16,000 transactions over a decade.

My unscientific spin?  Those ten years saw a boom and bust market, making it tough to monitor outside forces at play.  And the report doesn’t say if they compared apples to apples (incredibly hard to do) when isolating phrases like granite countertops, etc.

Nice study, but what it tells me is old school – It is important to appropriately accentuate the positive!  Maybe they can do a study on match.com next?