Ann Marie McManus - LOVE YOUR MOVE

LOVE YOUR MOVE: MY PROVEN SYSTEM FOR SELLING HOMES AT TOP PRICE

Ann Marie McManus

Table Of Contents

Introduction

First Steps To Home Selling

Pareto's Principle

Creating Curb Appeal

Staging With Purpose

Upgrading With ROI In Mind

The Three D's

How To Market Your Home

Common Seller Mistakes

10. Learn From Other's Mistakes

11. Finding Buyers

12. Be A Power Negotiator

13. The Dos And Don'ts Of Negotiating

14. Bargaining Chips

15. Why Hire An Agent?

Foreword

I have known Ann Marie since she started, at a very young age, in the real estate business with her father, Noel Schweers. Noel was one of the most outstanding Realtors in our town and Ann Marie was schooled well. Through the years Ann Marie has developed a reputation of being very knowledgeable, hard-working, and committed to her profession. She never stops trying to learn and still attends meetings with a real estate coach. She has obtained every major real estate certification including the GRI (Graduate Realtor Institute), CRS (Certified Realtor Specialist), CNE (Certified Negotiation Expert), and CLHMS (Certified Luxury Home Marketing Specialist). Each of these designations has extensive education and production requirements. Ann Marie was one of the first real estate agents in Augusta to hire an assistant and she has always been at the forefront of what is developing in the real estate industry, not only locally but on the national level as well. She has never hesitated to exhaust every resource available if it will help her do a better job for her clients. Her marketplace experience includes all of the CSRA (Central Savannah River Area). Her commitment to education, her knowledge of the marketplace, and her many years of real estate experience have made her one of the top, and most trusted, real estate professionals in Augusta, Georgia, and the neighboring areas. E.G. Meybohm Founder, Meybohm Real Estate

About Ann Marie

When Ann Marie is not busy serving her clients, you can find her spending time with her family and friends at home, at sporting or arts events, or enjoying sunsets at the lake with her husband of 33 years. Being at home with her gang is how Ann Marie unwinds after long days working for her clients. Ann Marie has dedicated her professional life to helping her clients achieve their real estate goals. Ann Marie was raised in Augusta, Georgia, the oldest of four born to Norah and Noel Schweers. Norah was born in Donegal Ireland and emigrated to the States in 1958. Norah lived in New York City for a time before meeting and marrying Noel and settling down in the deep south in 1961. Her experience served to give Ann Marie an appreciation and empathy for just how difficult relocating to a new culture can be. Noel Schweers was born and raised in Augusta. He started selling real estate in 1954 with an office on the corner of 8th and Broad Streets, the hub of the real estate world on that day! During childhood, Ann Marie loved to work in his office, make the lunchtime rounds to all the banks with Noel for rentals and escrow deposits, and then go for ‘meat-and-three’ at Bubba Farr’s diner, the mecca for businessmen and politicians. What a great place where you could sit in the big booths with the governor, a senator, local plant manager, or your mortgage broker or all four on any given day! It is little wonder that the lure of the business eventually drew Ann Marie home. Ann Marie was taught from a young age that if you want something in life, you must work for it. So that is what she did. At four, her mom signed her up for classical ballet with the formidable Frankie Rubenstein Levy. The exposure to the discipline paid off. Day in and day out for 20 years Ann Marie

learned about mastering the basics and perfecting art through practice and love of technique. She advanced through each performing level with exposure to the great masters, Robert Joffrey, Edward Villella, David Howard, and Violette Verdy. Ann Marie was written up in Dance Magazine and received scholarships to the School of American Ballet (Julliard and the Joffrey Ballet. Each summer, Frankie would bring her dancers to New York to expose them to the most accomplished in the dance world. Frankie will also be remembered for bringing guest artists from around the world to enrich Augusta’s art life- thriving to this day. Ann Marie enjoyed travel and performed for functions with the South Eastern Ballet Association, but she loved most performing on the Augusta Stage in lead roles in Pas De Quatre, Hansel and Gretel, and Augusta’s Christmas classic, The Little Match Girl. Upon finishing Aquinas High School, the Spoleto Festival and academics brought Ann Marie to the College of Charleston. Her Junior year at the College of Charleston, Ann Marie studied abroad at the University of Grenoble in France. A highlight was briefly touring Europe with the Danse Conservatoire performing Peter and the Wolf. In spite of being away for a full calendar year, Ann Marie was recognized at graduation for her contribution to the College of Charleston by being awarded the Alexander Chambliss Connelly for the most unselfish contribution to the student body. Service is in her blood. Ann Marie learned first-hand the importance of perseverance and compassion from her father. She saw her father in the trenches helping his clients make the best decisions based on circumstances. The power of changing economic tides seared this into her psyche: Protect your clients’ interests from the present or future events as best you can. She was the first of all four of her siblings that her father Noel was able to send through college by selling homes when the interest rates were 18 to 21%!

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One of the most poignant and formative experiences she had was having so many people turn out for her father’s funeral and describe time after time how he guided them in decisions that made a huge impact on their economic and family lives. Throughout her career, selling over 2000 homes, Ann Marie has earned numerous accolades, including: • Greater Augusta Association of Realtors Agent of the Month • Meybohm’s top award level for at least the past twenty years. • Meybohm Agent of the Month • CRS, production and education designation earned by only 1% of Realtors. • Youngest Augusta Realtor to obtain GAR Masters Club life membership by age 25. • Interviewed about best practices on a national panel before 5,000 plus real estate agents. Ann Marie lives in Augusta with her husband Gene, managing partner of AP Wealth Management. They have five grown children and two cherished children in law: Maureen, Mac and his wife Taylor, Caroline and husband Charlie Robertson, Catherine, and Cecilia. In addition to enjoying family, she and Gene love making a difference in the Augusta/North Augusta community. They enjoy traveling and have plans to take the entire family to Ireland again soon. Ann Marie aims to provide the highest level of service to her clients and takes deep pride in helping them achieve their real estate goals.

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Testimonials & Reviews for Ann Marie

Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me: I’ve worked with Ann Marie twice, and both experiences have been excellent. Our house sold the first time in under a month, and the second time we sold it in under two weeks. I really enjoyed how carefully she studied the market prior to listing the house, she came over and did a thorough inspection which I thought was above and beyond. She gave us some tips on how we could get a better price for our house and in the end, it really worked out well for us. -Jeff Fournoy Ann Marie and her team made the process of selling my mother's house a painless experience. The house sold quickly and they took care of all the details, like choosing someone to clean the carpets and make repairs. They treated my mother with respect and helped her in every way possible, even picking her up for the closing and taking her to the bank to deposit the check. I live out of town and they kept me posted on everything I needed to know. It was extremely comforting to know that everything was being handled so professionally! Ann Marie is amazing! -Caroline Lambert Ann Marie was very knowledgeable about the area and the market so she was right on target for helping to determine the appropriate price to sell the house so that it sold quickly without lingering on the market. Her experience was invaluable. She made the process of selling the home extremely easy. -Dee Dee Norfolk

Ann Marie is an amazing real estate agent. My wife and I moved away from Augusta a few years ago due to the military, so we were out of town homeowners. She recently just sold our house. The deal would not have happened if it weren't for Ann Marie. She went over and above every time we had an issue. I will be calling Ann Marie if we ever move back to the Augusta area. I would not hesitate to recommend her to anyone who needs a professional realtor. -Andrew Macomb

CHAPTER 1 Introduction

In my 36 years of personally selling homes in and around the Augusta area as my Realtor father’s #1 sidekick since the 1960s, I have seen the good, the bad, and the ugly! I wrote this book to help home sellers avoid the ugly I see out there everyday! The largest investment most people make is in their home. That makes selling a home — whether a single-family residence or a condominium — the single largest, most complex transaction a person will ever undertake. This investment involves new terms and concepts, financial acumen, and larger figures than normally dealt with in day to day life. It is also one in which emotions may come into play to the detriment of good judgment. Surely, the seller thinks, my home where I raised my children and made so many memories is worth more than the bricks and mortar it contains. Real estate transactions involve dozens of decisions and substantial investment in homeowners’ time, energy, as well as money, and emotions almost always lead to problems in a sales price negotiations. As the home seller, your objective is to find that home shopper who cannot resist buying your house at the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market. It requires making a fantastic first impression, creating in the buyers an instant feeling that they are traveling up the front walkway of their new home for the first time, not visiting someone else’s. It’s about falling in love at first sight, from the curb, in those initial fleeting seconds. 2

Most sellers do not venture alone into selling their home. They find it better to have an experienced real estate professional with whom the owners are comfortable. This book was written to provide some of that comfort without the direct sales stressors of person-to-person contact. I want the prospective or active home seller to independently achieve a better understanding of the home-selling process. I’ve also provided actionable insight into how best to market your home, avoid critical mistakes, and maintain a proper focus. Let this book be your go-to resource for information, strategies, and techniques that can be put to work to sell your home quickly at the best price. Take time looking through the chapters and master the secrets of successful home sellers. For example, discover why comparable homes sell for considerably different prices. Be ready to sell by knowing your home’s market value, best listing price, how to negotiate, and what improvements have the best Return on Investment (ROI). My sincere hope is that this book will help you make the most of your time and efforts to sell your home. In Part 1, the process and importance of preparing your house for sale is examined: how to present to get top offers, the “80/20 rule,” and which upgrades will make the most difference in ROI. Part 2 delves into marketing your home with a look at costly mistakes, avoiding those mistakes, and finding qualified buyers. In Part 3, we examine the critical topic of negotiations — what to expect, and how to conduct them — and finish with a look at what engaging a real estate professional brings to your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute real estate professional can vastly cut the time and raise the

economic value of your transaction. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, you might want to talk with me. I am standing by to assist you with a Comparative Market Analysis and a solid marketing plan to fit your needs and lifestyle.

CHAPTER 2 First Steps to Home Selling o Home Selling

“But You Gotta Know the Territory”— and Terminology Location! Location! Location! is the most crucial consideration in real estate and a major factor, if not the predominant one, in real estate pricing. Novice (and not-so-novice) home sellers alike must know the considerations — such as location — that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to more meaningfully participate in setting a home’s listing price. The most-used definition of market value is “the most probable price a property should bring in a competitive, open market under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood.

Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what terms. For example, the Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. Assessed value is the amount local or state government has designated for specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current price; however, this does not reflect the home’s value. WHAT IS YOUR HOME WORTH? The first step in selling your home is knowing the difference between value, worth, and price. Let’s examine the determining factors at work. Understanding those factors allows them to be leveraged. There are several ways in which a home’s value is derived. ONLINE HOME VALUATION Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. Note that the assessment is based on available data with no guarantee of accuracy and often uses an algorithm that simply averages comparable sales in the geographic area. These tools might be quick and easy, but they don’t take into consideration factors like location, current local trends and the condition of the property. Be aware that the prices arrived upon might be highly

inaccurate. For example, a home on the 1200 block of Johns Road in Summerville was put into one such system, Redfin. The home last sold for $180,000 in 1998; it was appraised for refinancing in 2015 at $275,000. In 2017, Redfin’s calculator valued this 1930s cottage (3 bedrooms, 1.5 baths, and 2,100 square feet) in a block surrounded by larger homes at $158,000. The apparent reason is that the six “comps” (comparable recent sales) included only 2 homes in this desirable neighborhood (over $300,000), and 3 others across Central Ave, although close, that sold from $85,000 to $125,000. Because the system doesn’t understand the makeup of the area and simply pulled prices from a broader geographic area, the arrived-upon price was far below what it should have been. These tools are worthwhile for obtaining “comps” of area sales; however, they are not highly accurate in arriving at a listing price. EXAMPLE OF DIFFERING HOME VALUATIONS A buyer is interested in a home listed at $420,000. The online valuation determines the house is worth $440,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $300,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $420,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? The fact that they paid $420,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations cannot take into consideration the condition of the property or the qualities of the neighborhood. Since an assessed home value is for taxing purposes (county revenue collection) only, it can be much more or much less than

the market value. Ideally, they should be the same, but usually they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the appraisal. In 2009, I hosted a seminar at the Partridge Inn and invited the county Tax Commissioner to speak to the attendees. A number of residents and past clients did not understand why their homes were assessed for more than the price I showed them that it could sell for. Tax Commissioner, Charles Smith, cleared things up very quickly by simply saying it was his job to collect revenue and it was the home owner's job to let him know if the value was incorrect! PROFESSIONAL APPRAISAL Nothing determines the sales price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“property valuation”) is the process of arriving at developing a perspective of value for real property. This is the market value — i.e., what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions generally require assessments because they happen infrequently, and every real property is unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.

The important factors in a house appraisal are:

• Dwelling type (e.g., one-story, two-story, split-level, quality of construction) • Features (including design) — materials used and the kind of structure present and how they were built- porticos, porches, brick walls add real value • Improvements made -upgrades • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments • Age of property • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price. Good appraisers consult agents however, if they have not personally seen the comps. Over the years, I have received many calls from conscientious appraisers who want to know the whole story of a home or its neighborhood. Several times a year I face the problem of getting a call from an appraiser who cannot get the value to come up to the sales price...how can it be? The appraiser is working for the bank to protect their investment in the house.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ES IS BY A REAL ESTATE PROFESSIONAL This home valuation report is free from real estate professionals and more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. It is critical that if you are going to rely on this evaluation that you use an agent very familiar with the location AND all the comparable sales with lots of experience. Along with an understanding of how the worth of a home is determined, the current market must be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I will be happy to provide you with a Comparative Market Analysis. Please refer to the last page of this book if you would like more information on how to request a free home valuation. THE SECOND STEP (SELLING YOUR HOME FOR MORE) Prior discussion showed that there is no calculable certainty in setting the value of a home. There can be wide differences between the seller’s assessed price, the asking or listing price (market value), and the price at which the home sells (sale price). Let’s turn to what the homeowner/seller can do to elicit offers at the listing price, or even above, in a competitive market. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately

prepare the home for presentation by improving, freshening, landscaping, and generally making the home pristine — and to live in that presentation-readiness state for the time it takes to sell the property — will greatly affect both the sale period as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing is considered balanced or neutral, which means a good number of homeowners are selling and buyers are purchasing; therefore, neither has an upper hand. A variable, for instance, like a major company entering — or moving from — the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days, while that of a slow market may be up to nine months. Typically, any number below six months is considered a seller’s market. LIVING IN A SWIRLING FISHBOWL A house on the market requires keeping the home in a constant “show-ready” condition, and adjustment to changes in day-to- day life that are inherent in the process. Sellers get out-of- business-hours phone calls from unrepresented sellers get out of business hours phone calls from unrepresented, unqualified prospects and buyers’ agents to show the home. This requires frequent updates by phone, email, text, and showing appointment scheduling messages. On top of this, you may have repair and reconditioning appointments with contractors. Then there are inspection appointments. There are repeated showings when the home first hits the market. Keep your home in pristine showing condition for impromptu visitors — the perfect prospect might just send in a request at dinnertime. Inconvenient perhaps, but necessary to accommodate. Pricing a property conservatively will ensure success.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD EEN, UNHEARD You know I love my children and my dog Delaney! However, pets and children can both cost money if not managed effectively, adversely affecting a buyers experience of your home! You should plan for your children and pets to be elsewhere. At a minimum make sure dogs or cats are crated or leashed, and no toys lying about or dog hair on the sofa. It goes without saying, dishes should always be done and the kitchen sparkling. I have a list of housekeepers that are available for hire to help you out during these critical weeks. The pressure of showing to everyone even mildly interested in looking (not necessarily buying) may come from the idea that the more your home is seen, the more quickly and easily your home will sell. Many real estate agents provide their clients with dozens of homes to consider without a clear picture of what the buyer wants. Low-interest traffic can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or hours, finding an interested buyer is what matters most. The home will be shown to many more uninterested than interested buyers. How many times will you have to show your home? In an ideal world, your property would be shown to serious buyers only. However, many “Sunday afternoon window shoppers” exist in the real estate business. You shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the professional help of a qualified real estate agent enables you to handle even the most intimidating tasks without wasting efforts.

CHAPTER 3 Pareto's Principle

“Eighty percent of results will come from just twenty percent of the action.” This is the Pareto principle, attributed to Italian economist and philosopher Vilfredo Pareto, who in 1906 observed an intriguing correlation. The story is that he began work on the “80/20 rule” with the observation that 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation caused him to explore uneven distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. The generalization became the concept that 80% of results will come from 20% of the action. While it does not always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of the most reported software bugs cause 80% of software crashes • 20% of patients account for 80% of healthcare spending RELATING THE 80/20 R G THE 80/20 RULE TO HOME SELLING Understanding the 80/20 rule concept can save you time in selling your home. Applying the 80/20 rule, you stop trying to sell people on the entire home. Applying the rule, you can 14

highlight the 20% of your home’s features that make it special. The remaining 80% of your home still affects the buyer’s decision, so do not neglect it, but in photographs and showings, feature the elements that make your home special. Your selling point won’t be the common features your home shares with the other properties on the market. Instead, use your home’s unique features to grab the attention of buyers who are interested in those distinctive features. A BUYER’S STORY When Vince and Sue were shopping for a new home, Vince wanted a river view. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a short walk to the river. The neglected exterior and dated interior were not encouraging, but when Vince stepped out onto the third-floor balcony off the master suite, he was sold. Any shortcomings in wall color or fixtures faded away when he took in the view. He could now see the sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the river! A SELLER’S STORY When Rob and Kate listed their home, they needed a buyer who wasn’t concerned that the house was on a busy corner. Though the home was over 100 years old, the interior was updated with fresh, neutral wall colors and flooring to look brand new. The towering trees and established yard gave the home a welcoming appeal.

The person that purchased Rob and Kate’s home had also looked at a home within miles of this one that had towering trees as well as a koi pond and patio. This home was comparable in interior and exterior, but it was on a quiet street. What 20% of the home caught the buyer’s eye and prompted him to choose Rob and Kate’s home? The buyer loved the exciting energy of a home near AU's Summerville campus. The fact that they could walk to church, the library and neighborhood restaurants and bars made all the difference for them! LOCATION MATTERS A buyer paid extra for a townhouse because of its location in the complex overlooking woods instead of the parking area. Another seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half- acre grassy area. An owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex on the market because his had a characteristic shared by fewer than 10% of others. He had the only available listing offering that feature. He pointed to that feature in marketing the townhome. With this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to advantage. Her property backed up to a lake and fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price.

THE 80/20 RULE IN ACTION: BUYERS ARE SEARCHING FOR UNIQUE FEATURES Decide upon, improve if necessary, and spotlight the unique features of your home in marketing copy, online & print photographs, and in showing the house. Do not spend much time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced-off dog run in the unusually large backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price. Each house will have its unique features. Here are some suggestions if you aren’t sure of yours: • Hilltop views or high vantage point, offering a spectacular view of the surrounding area • Open fields frequented by wildlife • Unobstructed views of sunrise and/or sunset • Patios, decks, dog runs, garden areas, and gazebos — highlight items neighboring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot • A private location or lot partially concealed by trees • A unique, shady, or larger backyard; a fenced backyard is a big selling point (if your yard can be fenced, but is not, consider making that improvement), Call me because I can tell you if it will pay off or not • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out

LOOK FOR THE 20% D R THE 20% DIFFERENCE AND MARKE CE AND MARKET THE FEATURE Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to buyers who are motivated to make a purchase. You won’t have to show as frequently. You also won’t have to sift through low-ball offers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your house with others in the neighborhood to see what makes yours stand out. Work with that. HOW THE 80/20 RULE APPLIES TO HOME SALES ME SALES An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offers 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home were dwindling. They stopped at one last house as the sun set. The exterior of the house was dated and the yard untended. This agent and her client had spent the entire day looking at houses that shared 80% of the same features. Nevertheless, once the buyer walked into the room, he wanted to buy the home for asking price. What set this house apart from the others? He wasn’t too interested in the kitchen, bathrooms, and bedrooms. A bedroom was a bedroom as far as he was concerned. He fell in love with the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view out a large window. As they entered the great room, the sun was setting below the

distant tree line. That view sold the buyer. The remaining parts of the home could be improved. The home buyer based his decision to buy on the window view from the hillside. The 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule. In some cases, the 80/20 rule may help people make a sale without even conducting a showing. The house in the following example had languished on the market for months. Unlike the previous home, this one was attractive. On the contrary, it was a brand-new, custom-built home. It sat on the market for over seven months without a single offer. The builder hired a real estate agent who knew the importance of finding that one special feature. He drove out to give the house a thorough investigation. He discovered what the property had that the competition did not. The house had a one- acre yard. Other houses being sold in the area had ¼ to ½ acre lots. Not only was the yard bigger, but it was also more private than the other properties. The real estate agent marketed the property highlighting the one acre along with a description of the house. Because the house was no longer the main selling point, interest in the property increased.

CHAPTER 4 Creating Curb Appeal b Appeal

Someone once said, “a stunning first impression is not the same thing as love at first sight. But surely it is an invitation to consider the matter.” This could not be truer than in selling a home. First impressions matter. Sometimes they are everything. Nothing sets the tone of a relationship or encourages a transaction more than first impressions. So, always consider what a potential homebuyer may think as he or she drives up to your property for the very first time. Think of “curb appeal” as the home seller’s shop window. Like picking a lunch place on a busy avenue in a tourist spot, it’s either the outside presentation or, as we saw in the 80/20 rule discussion, some particular feature that brings in the customers. For most lunch seekers, it is the way the place looks (“curb appeal”), and to others, the soups and sandwiches they serve (specific desired feature). You do not have a lot of time to establish a curb appeal relationship with a prospective homebuyer. Whether cruising the web to view online photos from across the country or cruising by your home in the family SUV on a Sunday afternoon outing, home shoppers will decide at a glance whether they want to see more. “We buy ugly houses” is a sign often seen nailed to electric poles. Rehabbers look for ugly houses so that they can pay the least amount possible; homebuyers looking for a deal — not a “basement bargain” — do not want an unattractive home.

Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did not find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by. Try this. Go out into your street and look — I mean really look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are there necessary repairs that you have been putting off? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from real estate experts, your friends and/ or potential home buyers about how you can make your house show better. Then, take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you and note why. Well-tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door. The outside appearance of a property needs to be an invitation to come inside. Potential homebuyers are drawn to welcoming entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Low-cost investments like power washing the house and concrete, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with

little to no expense. Repairs and repainting are costlier, but the payoff is often reflected in the sale price. The goal here is to get more money for your home. Homebuyers generally aren’t interested in a home that needs work, unless you want to sell below market value. Look around your yard, and make a written list of everything that could be improved: • Shrubs trimmed, flower gardens tended, walkways tidy, and beds weeded • No trash, trash cans, lawn clippings, branches, or general mess in the yard • All outside fixtures and components (door and yard lights, garage door, porch rails); functioning properly and looking their best • Outdoor features, such as patio furniture or the deck, updated with staining or painting Make all major and minor improvements to update the exterior of your property. There might be a long list of things to do. It takes hard work to get a home ready to sell. Anyone can put a house on the market, but not everyone sells quickly or with great profits. Then, await the prospective buyers who will be drawn to the inside of your home when they see how beautiful it is from your curb! CREATING A GRAND ENTR AND ENTRANCE As I mentioned earlier, an important part of curb appeal is the home’s “grand entrance” — the portal to even the most modest house. You want to create a sense of a great place to come home 22

to. Impressing the home shopper at the front door is a vital part of the home sale. This means more than putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe, and secure when they open the door. The doorknob is the first point-of-touch on a home. Security is important to homebuyers. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable, and they may not even know why. Replace a worn or loose entry handset. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. This investment of less than $100 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door is a focal point; make it impressive. Freshen it up and add a dash of color. Choose a paint that complements the color of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI (Return on Investment). SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB AP T CURB APPEAL: EAL: • Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home needs balance. • The mailbox should complement your home. If it is worn, dated, or unsightly, replace it. This doesn’t cost much and is worthwhile. • Use outdoor lighting to add to landscaping appeal as well as a perceived safety feature. • Use flower boxes and raised flower beds to add instant

color. This is an easy, inexpensive way to enhance curb appeal. • Spruce up the landscaping. Eliminating weeds and adding fresh mulch can really make a difference and shows homeowner care and maintenance. • Consider enhancing architectural appeal by adding molding to the tops and sides of the doorway or around windows. • Keep shutters and trim in excellent shape. Repainting them adds to the attractiveness. Fence gates, arbors, and fencing panels should be clean and fresh. • Clean downspouts and gutters. Repaint or touch up to eliminate rust spots. • Ensure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping interfere with home shoppers walking up and diminish the inviting look. • Try a fresh coat of exterior paint; faded or chipping paint, siding, or trim will always detract from curb appeal. If exterior paint is good, ensure door and window trim are, too. This simple upgrade is well worth the cost. • Power washing the house, walkways, and driveway can be almost as effective as repainting, at a much lower cost. Power washers are easily rented from hardware stores. • Adding some stone or stone veneer to the face of the home is an inexpensive way to instantly update your home, if it complements the design. • Add a “smart” doorbell. Eight of 10 home doorbells are outdated or not working, so if you invest $200 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers who are looking for

security measures.

Curb appeal is one of the most essential elements in selling your home quickly and successfully. You can create interest in your home before buyers even step out of the car, even if they didn’t think they were looking for a home like yours. If you put money into cleaning up the outside of your home, buyers will be far more likely to want to see the inside. Your home’s curb appeal draws buyers in, maintains their interest, and sets your home apart from the competition. Remember that unless you are willing to lower your home’s price well below market value, prospective homebuyers typically won’t want to take on a major renovation project.

CHAPTER 5 Staging with Purpose

Staging is the act of sprucing and setting up a home to make it as visually appealing as possible to a prospective buyer. Creating an eye-appealing home — one that potential buyers can envision themselves living in — is the best investment in the sales effort. Sellers often fail to take full advantage in this regard, as it can take considerable time and work. However, the payoff is proven. Staging is considered one of the most effective marketing strategies to increase the value of your home. This strategy is effective in any market, in any type of home property being listed. It applies equally to single-family houses, apartments, townhouses, and condos. This approach works! Agents and sellers using this tactic have a greater chance of selling the property for more money. In today’s competitive real estate market, selling your home requires hard work and dedication to maximize your price. A motivated seller can bring the home to the marketing forefront. Staging the home will:

• Distinguish it from the competition • Attract top dollar from homebuyers • Provide a visual edge over the competition

STAGING VS. NON-STAGED CASE STUDY & REPORT Dear Reader,

I wanted to give you the most convincing proof possible. Many people find it hard to believe that the simple act of staging helps one home sell for more than a similar home. In my research, I looked for examples of similar houses being sold for different amounts of money where only one of the two houses was staged. The clearest example I could find was in the case of these two listings: This development has 200 equivalent townhouses. Every single townhome in the neighborhood is three stories with three bedrooms and three bathrooms. Every unit has the same floor plan. I looked for two sales there, and found these: • Townhome A sold on August 26. • Townhome B (5 doors down) sold on July 26, for 40,000 dollars less. I visited this neighborhood, and I am familiar with these properties. You could not find a better example of two identical properties that sold for different prices. The details show these two homes are identical in every substantial way:

The lots the units sit on are identical as far as the desirableness of the location. Both units had the same kitchen plan with the same cabinets and a tile floor. Both units had nice hardwood floors in the living room and carpeted bedrooms. Every important detail of these townhouses was identical. I studied every aspect of these sales to find what made the difference. There are two reasons one home sold for $40,000 more than the other: • Townhome A was professionally staged, giving it a more appealing appearance. • The agent selling Townhome A took higher quality, more attractive photos of the home. Those two seemingly small actions made the $40,000 difference! The buyers of Townhome A made a higher offer because the agent presented the home in a more appealing and attractive way. *B Curry, Realtor. Used with the permission of the author. THE POWER OF STAGING WHEN S G WHEN SELLING A HOME Consider these results from surveys conducted by Coldwell Banker and the National Association of Realtors®: • Staged homes spent 50% less time on the market than homes that were not staged. • Staged homes sold for more than 6% above asking price. • A staging investment of 1% to 3% of asking price 28

generates an ROI of between 8% and 10%. • Homes staged prior to listing sold 79% faster than homes staged after listing. WHAT DO BUYERS WANT TO SEE? Most home shoppers are envisioning a fresh start. If they can picture themselves living in the home, the home will be easier to sell. This is known as “interior curb appeal,” where the eyes are drawn to inviting spaces and light, as well as to unique features. Each room needs a purpose or suggested use. The home must feel new to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. Painting, updating fixtures, and eliminating stained carpets and popcorn ceilings can affect the saleability of the home by 75%! NEUTRALIZE FOR EYE APPEAL The idea is to neutralize the home regarding personal taste or decoration such that buyers can easily envision the home as it would be outfitted in their taste or with their possessions without the distractions of the seller’s taste and possessions. In staging, distractions are removed so the home shopper can imagine living in each space of the house. An effective way to achieve this is to paint all rooms a neutral color. A wide range of neutrals from soft grays to warm beiges are available. Painting the interior gives newness and freshness and can make the home appear more spacious. Using the same color in visibly adjacent rooms gives the house a seamless look and uninterrupted flow. Changing your window coverings to match the walls can create an illusion of more space. Dark or bold wall colors can dampen interest in a home if used in large spaces; however, they can be

used effectively as accent colors. FOCUS ON FURNITURE: LESS IS MORE

In staging, a visibly inviting space is created so that the home shopper can envision or imagine life in that space. Minimization is the key. The seller’s personal taste and style will be showcased while the home is on the market, which may be a sale distraction. Preparing for moving is part and parcel of selling a home; it might as well be done at this stage of the process to enhance the property’s saleability. Shortly, we will examine depersonalizing the home, a key step. First, however, we must examine the concept of creating space by minimizing furniture. Buyers are attracted to homes flooded with light and roominess. They are equally put off by cramped homes filled with unnavigable spaces. Home shoppers want to walk through a house without obstacles in the way. Space and storage are high on the list of buyers’ desires, so every area of the home should feel spacious. Remove all unnecessary furniture from living spaces. Store it while the home is marketed. Closets, pantries, and storage rooms must be free of clutter and look organized. Pruning back on what fills up space and relegating it to a storage unit creates interest by showcasing ample space and storage and not overflowing closets and basement/attic areas. Furniture placement is an easy way to highlight unique house features. A grouping of chairs in front of a fireplace will draw attention to it. Avoid pushing furniture close to the walls. Reposition easy chairs into floating group spaces. Every room must be staged to show function. An empty room used for overflow of boxes, possessions, or unwanted items

should be transformed into a usable, desirable space. Clean it out and create an office space with a desk and chair or a reading room with a lamp and recliner. Exercise equipment might be arranged to feature it as a workout room. Every room should have a purpose and be user-friendly. Make your home’s traffic flow obvious so buyers can browse each room without effort. EMOTIONAL CUES AL CUES Once every room has a purpose, creating atmosphere is crucial to making the home desirable. Decorative touches of greenery, flowers, and lit candles give life to a room. Creatively hung wall art can do the same. A bedroom that has one bed with one pillow and blanket may make the room seem bare and lonely. By adding a table with decor and a rocking chair draped with a lap robe, you heighten its appeal. Be sure to add elements of the same color, shape, or texture to unify the room. Any splashes of bold color should appear in wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can seasonally decorate your home without dashing your appeal. The main goal is to keep your home clean and free of clutter that distracts would-be buyers. Even simple things can make a big impact on the final sale price of a home. Staging done well is one of those things! You have two options for staging a home: do it yourself or hire a professional home stager. If you are considering hiring someone, I can provide recommendations. TO STAY OR NOT TO STAY? Home sellers often ask whether they should stay in their home while it is on the market, or go. There are pros and cons to both and factors that can tip the scale to one side. If the seller has engaged a real estate agent, the burden of

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