Two similar properties, two different listing strategies and two very different outcomes.

This comparison of sellers involves a mid-career, two-income professional couple and a long-retired widow. One transaction netted relatively better returns due to seller savvy while the other continued to be a problem for months after closing. Reading this description you've probably decided which is which, but read on anyway ... .

The same pair of real estate salespersons, working for the same broker, listed both properties within days of each other.

Property #1: The first property was long over-due for modernization: original wiring and plumbing, an almost non-existent kitchen, and a very small and strangely-arranged lot.

The real estate professionals, as part of their listing pitch, dissuaded sellers from undertaking renovations, repairs or upgrades prior to sale suggesting it wasn't necessary for a speedy sale. No comparative market analysis was presented to assist sellers in establishing list price.

The sellers were a mid-career professional couple who had not followed real estate sales in their neighbourhood. They had not improved or up-dated the home and rented it out for the three years prior to sale. Their two-income lifestyle was subsidized by generous parental contributions, so financial return was not as important as a smooth, timely, hassle-free sale.

Sellers' Reaction: The sellers were unhappy with the proposed list price once they investigated market conditions in the area. They had to insist on having the inflated price lowered by 5 percent to avoid having the property on the market for a long period.

Six days after listing, the professionals said the list price should be adjusted downward by a further 9 percent. The professionals then brought in an offer which was below the reduced price in a market where properties were selling at plus or minus 1 percent of list price.

After much negotiation, a sale price was reached. At the time of signing to accept the offer, the sellers were asked to sign acknowledgment that the professionals had worked under buyer agency with the buyers, a relationship which preceded the listing. That was the first time the sellers were told about what they felt was a potential conflict. This and other discrepancies by the professionals caused problems until closing.

Even after the buyers moved in there was a dispute over problems with the property which were not specifically addressed in the offer. Aside from a casual remark made to buyers, no mention was made in the listing or the offer about drain problems known to the seller and the professionals. No clause appeared in the offer to set limits for financial indebtedness by the buyer or sellers for repairs which will cost several thousand dollars. Disputes continue for the sellers who are considering a complaint against the professionals.

Property #2: The second home, two doors over and built in the same year, had been completely and tastefully modernized, with a newly-renovated kitchen, and spacious deck and garden.

The Professionals' Listing Strategy involved choosing a list price which, it turned out, was below area market value. Again, no comparative market analysis was offered.

The seller was a widow, retired for over two decades, who was forced to sell in the face of rising taxes and costs, against the financial constraints of a fixed income. She kept abreast of sales in the area and, since financial return was top priority over time and convenience, knew how to protect her interests.

Seller's Reaction: The seller did not accept the listing price proposed, insisting it was lower than area comparable sales and considerably lower than her neighbours' property, which had just sold. The professionals substantiated their price by indicating that the home needed work compared to neighbouring property #1, which the seller knew was not true. The seller demanded and received a list price more in keeping with local market values.

The first offer, considerably below list, arrived from the listing agents' buyer. The professionals did not mention the potential for other offers nor provide strategies for greater return for the seller. In spite of insistence from the professionals that this was a good offer and should be accepted since the market was slowing, the seller held her ground against the two real estate salespersons, insisting that the offer was too low. The seller signed back the offer at a price close to list. This price was quickly accepted by the buyers. By playing an active role in the sales process, the seller earned a satisfying 8 percent more than she would have.

In this comparison, two very different strategies were offered for two almost adjacent, similar properties. Neither professional listing strategy completely satisfied the sellers' main goals, except when the seller knew how to react to ineffective professional advice:

The mid-career, fairly-well-off couple relied heavily on the experienced real estate professionals they had chosen. Their main goal of a clean, straight-forward deal was not met nor did they achieve the best financial return. The couple was unprepared to watch out for their own best interests.

The retired, financially-strapped seller received a clean, straightforward offer, but may not have fully realized the financial potential of her only asset, which was her principal goal, if she had not kept up-to-date with area sales. She also understood the importance of knowing her rights and the real estate professionals' responsibilities. Stereotypes about mature sellers and ageism can place added responsibility on seasoned property owners. They will be pushed by friends, family and unethical professionals if they are not prepared to act in their own best interest and use solid knowledge to stand their ground.

In a good market or a tough one, sellers must keep up to date with local sales and should be ready to take advantage of the professional expertise they are paying for. Wise sellers expect to make confident informed decisions and, therefore, want to know how they will be supported and kept informed by the real estate services they engage. How would you rate your knowledge of real estate services and the local real estate market? Just being stubborn about what you want is not enough to succeed.

Published: January 15, 2008

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Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.