Navigating the complexities of real estate requires a blend of persistence, creativity, and expertise. Jo Cusi, a seasoned real estate agent from the San Francisco Bay Area, embodies these qualities. With over 20 years of experience, Jo has mastered the art of turning challenges into opportunities. Her story highlights how dedication and innovative approach transformed a fixer-upper into a profitable sale by uncovering the hidden value of energy-efficient features.
The story began with a client who was an investor. He had acquired a fixer-upper and was unsure whether to sell it as-is or renovate it for a better profit. “He typically would buy a fixer-upper and then renovate it. However, because he got a good deal on this property, he thought he might be able to flip it as is and still make a decent profit.” After evaluating the property, Jo suggested marketing it with virtually staged photos, planning to give that a try for 2-3 weeks, to gauge interest.
The initial marketing attempt with staged photos was unsuccessful, as most buyers were also looking for a bargain. Consequently, the investor decided to proceed with a full renovation, incorporating modern features like luxury vinyl flooring and energy-efficient systems. Post-renovation, Jo listed the beautifully transformed property at $848,000 and within a few weeks, they received a full-price offer. Unfortunately, though, a week before closing, the buyer was laid off, and they had to relist the property at a lower price due to rising interest rates and inflation.
After relisting at $818,888, they received an offer for $810,000. However, the appraisal came in at $801,000, which prompted Jo to analyze the appraisal report. “I really didn’t want to reduce the price any further,” she explained. “So, I examined the appraisal myself. One of the first things I checked was how they valued the energy-efficient features.”
Noticing that the energy-efficient upgrades were not adequately valued, Jo requested an appraisal reconsideration. “Lo and behold, in my review, I noticed under the energy efficiency section, the appraiser stated these features were ‘Typical for Age.’ Mind you - this home was built in 1966. Given that the home was just renovated, I knew there should have been value added for the energy-efficient features, so I challenged the appraisal,” she explained. Highlighting the energy-efficient features, Jo compared the property with a similar energy-efficient home on the MLS and questioned the comparables used in the initial appraisal. This effort led to a revised appraisal value of $812,000, enabling them to proceed with the sale.
Although unaware of Pearl at the time, Jo understood the significance of energy efficiency in real estate valuation with her background as a NAR Green Designee and in Broker Price Opinions (BPOs). Having done extensive BPOs during the market crash, she applied this knowledge to effectively challenge the appraisal.
Jo notes that the Pearl Certification Report and marketing package could have simplified the process and ensured fair valuation from the start. "I didn't know about Pearl back then, but it would have been helpful," she says. Now, Jo frequently uses the prefilled Appraisal Institute Addendum included in Pearl's marketing package, incorporating it in her disclosure documents to ensure the appraiser is aware of these features. "Taking those extra steps and understanding the value of energy efficiency can make all the difference," says Jo.
Jo's journey from a fixer-upper to a high-value sale underscores the importance of persistence, expertise, and recognizing the hidden value in energy-efficient features. Her story illustrates how a keen eye for detail and a commitment to excellence can turn potential setbacks into successful outcomes.
To further simplify the process for real estate professionals and homeowners alike, Pearl has introduced a new and improved Certification Report and Marketing Package. This redesigned package boasts a more visually appealing layout and new materials, making it easier to understand and utilize. With this enhanced tool, agents can more effectively highlight the value of home performance features, ensuring that all relevant parties appreciate their impact on market value.
By leveraging Pearl’s new certification report, real estate professionals can continue to elevate their service, making home enhancements more transparent and accessible. Jo’s success story is a testament to the power of these tools, demonstrating that with the right resources, any challenge can be transformed into an opportunity for triumph.
Jo Cusi is a seasoned real estate professional with over 20 years of experience in the industry. As a proud member of the Pearl Real Estate Network, Jo has built a reputation for excellence in helping clients buy and sell homes in the San Francisco Bay Area.
