Robert Bernstein - SELLING SECRETS YOU CAN'T AFFORD TO MISS

SELLING SECRETS YOU CAN'T AFFORD TO MISS

Robert Bernstein

Table Of Contents

Introduction

First Steps To Home Selling

Staging With Purpose

The Three D's

How To Market Your Home

Common Seller Mistakes

Learn From Other's Mistakes

Finding Buyers

Be A Power Negotiator

10. The Dos And Don'ts Of Negotiating

11. Bargaining Chips

12. Why Hire An Agent?

Foreword

When I first ventured into the real estate industry 23 years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to: 1. Get the most money possible for your home. 2. Sell in the least amount of time. 3. Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including: • Secret strategies to sell your home for more money • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • And much, much more If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home. Happy reading!

Testimonials & Reviews for Robert Bernstein Here’s a list of people whom I have helped sell their homes, and what they said about working with me: Robert Bernstein made our home selling process easy and smooth! His guidance and help was very much appreciated. We will definitely refer family and friends to Robert in the future. Robert was excellent. He was knowledgeable, helpful and made this process incredibly easy. We can not say enough great things about him! Jackie and Chris | Seller 2021 My wife & I have moved 3 times in the last 25 years. Obviously, we've dealt with many realtors on the selling side. I have to say that Robert is by far the BEST realtor we've ever worked with, his professionalism, personality, attention to detail, responsiveness and his ability to close the deal was Outstanding!!! If you are selling a home, do yourselves a favor and hire Robert Bernstein Kathy and Bruce | Seller 2021 Robert, was the BEST realtor we could have hoped for. He went above and beyond. He anticipated our needs and met them all with a smile on his face and expert advice. He was an absolute pleasure to work with and made the selling of our home and the purchasing of our new home seamless. We feel so blessed that he was our realtor. Becky and Mitchell | Seller 2021

I can’t tell you how glad I am that we hired Robert Bernstein to vii

sell our home. He had great ideas as far as staging goes and what targeted improvements would have the most impact. He was always available to speak to us and he came through on advertising, maximizing realtor and buyer presence at the open houses. We only needed two, funny enough, as my home sold in 10 days for above asking price. If you’re looking for a smart and extraordinarily knowledgeable realtor who only sells homes, and is a total expert as such, Robert is your guy. Nancy and Steven | Seller 2021 Robert Bernstein is the best agent in New York City! I was quite nervous about the process of selling my first home, considering I was overseas for the entire process. Robert walked me through step-by-step, made sure I knew what to expect, and offered expert advice that helped me through the negotiations. And, he got my home under contract in less than 48 hours. I cannot recommend him highly enough Mitch | Seller 2021 Robert Bernstein is the first agent I would call Robert was able to rapidly list, show and sell my property. Being an expert in real estate, he was spot on in his pricing of my property and getting this deal completed. Overall, I highly recommend him. If I want to buy real estate, Robert would be the first person I’d call. Mark | Seller 2021 Robert got us an offer in three days! Robert was the consummate professional during our stressful and difficult process. In the midst of juggling a ‘failed’ marketing effort with another agent, he presented a well thought out plan and strategy to sell our home in short order. We needed to move quickly due to a growing family and another baby on the way.

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He helped alleviate that pressure by securing an acceptable offer with 3 days of listing. We put pressure on him, and he delivered.

We couldn’t thank him enough. Stephanie and Tom | Seller 2021

ABOUT ROBERT BERNSTEIN Robert was raised in Baldwin Long Island (NY) along with his 2 brothers. As a child, Robert had aspirations of being a salesman. Never in a million years did he think he’d stumble into the real estate industry, but you can’t always predict where or when you’ll discover what you’re meant to do in life. Robert was taught at a young age that if you want something in life, you have to work for it. So that’s what he did. And he worked hard. As the years went by, Robert worked his way from video editor to real estate, never wavering in his resolve to become the best version of himself with each career move. Robert got into the real estate industry 23 years ago when he was looking for an apartment to buy. After spending too much time with "unprofessional" agents, he decided to get his real estate license solely to find himself an apartment. Along the way, he wasn't able to find his own apartment, but was able to find others apartments, alas, his career was born. As his career advanced, Robert found his stride working with Sellers. He’s an expert in selling homes for the most money in the shortest amount of time. Robert lives in New York City with his fiancee Judy and their 3 kids, 4 kids if you count their dog Brooklyn. Robert aims to provide the highest level of service to his clients and takes deep pride in helping them achieve their real estate goals.

CHAPTER 1 Introduction

The largest investment most people make is their home. That makes selling a home — whether it’s a single-family residence, duplex, co-op or condominium — the single largest, most complex transaction a person will ever undertake. It involves new terms and concepts, financial acumen, and larger figures than normally dealt with. There are also many emotions at play that can affect good judgment. Many sellers think, Surely, 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, and money, and emotions almost always lead to problems in a sales price negotiation. The home seller’s 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 for 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 seconds. Most sellers do not venture alone into selling their home. They find it better to have an experienced real estate professional with whom they are comfortable. This book was written to provide some of that comfort without the direct sales stressors of person- to-person contact. 1

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, negotiation tactics, and improvements that offer 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,” along with 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, I stand by to assist you with a Comparative Market Analysis and a solid

marketing plan to fit your budget and lifestyle.

CHAPTER 2 First Steps to Home Selling

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 that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally 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 meaningfully engage 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 5

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 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 a home’s value is derived.

PROFESSIONAL APPRAISAL

Nothing determines the sale 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 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, factory-built) • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • 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.

COMPARATIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation 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. 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, or even above, the listing price 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 — and willingness to live in that pristine 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 FISHBOWL

A house on the market requires keeping the home in a constant “show-ready” condition, and changes in day-to-day life are inherent in the process. Sellers get unexpected phone calls at all hours from unrepresented prospects and buyers’ agents to show the home, as well as frequent updates by phone, email, and text and show appointment scheduling messages from the listing agent. They also will likely deal with repair and reconditioning appointments and inspections. The house may be photographed for online, periodical, or brochure presentations. 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 drop in at dinnertime.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD

Children and pets are distractions for potential buyers, affecting their experience of your home. You should plan for your children to be elsewhere and your pets crated or leashed, and no toys lying about or dog hair on the sofa. The dishes should always be done and the kitchen sparkling. 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 even hours out of your day, finding an interested buyer is what matters most. The home will be shown to many more uninterested buyers 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. That said, 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 Staging with Purpose

Staging is the act of sprucing up and setting up a home's interior to make it as visually appealing as possible to a prospective buyer. Creating an 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 takes 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.

Staging the home will:

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

THE POWER OF STAGING 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 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 VISUAL APPEAL

The idea is to neutralize the home regarding personal taste or decoration, so 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 in a neutral color. A wide range of neutrals is available, from soft grays to warm beiges. 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 also 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 occasionally 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. If the seller’s personal taste and style are showcased while the home is on the market, it 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 unnecessary items can create interest by showcasing space and storage in areas such as closets, attics or basements. 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 smoothly, so buyers can browse each room without effort.

EMOTIONAL CUES

Once every room has a purpose, creating atmosphere is crucial to make the home desirable. Decorative touches of greenery, flowers, and coffee table books 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 a lamp 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 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 even seasonally decorate your home without dashing its 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. 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 move out. There are pros and cons to both and factors that can tip the scale to one side.

Pros of Moving Out

If the seller has engaged a real estate agent, the burden of showing a vacant home is virtually eliminated. The agent will field all calls, set appointments, and show the home. Buyers’ real estate agents are also more likely to want to show vacant homes. If agents have 20 home options and 15 are occupied, they may well show the vacant homes out of convenience. They don’t have to call and make an appointment and can simply go over and use the lockbox. Further, the continual pressure to keep daily life from affecting the home’s pristine staging presentation is eliminated. The seller is not under constant pressure to keep the home in immaculate showing condition. If you’re someone who might struggle to keep your home in turnkey condition for showing purposes — for example, if you have young children — consider vacating before putting the home on the market.

Cons of Moving Out

A vacant home can signal that the homeowner is a “motivated seller” who needs to sell quickly. Consider this example found on an online real estate forum. A buyer saw that a home was vacant and offered $30,000 less than the asking price. The buyer was sold on the home anyway and would have paid more, but “haggling” began well below asking price because the buyer assumed the owner was desperate to sell.

CHAPTER 4 The Three D's

DEPERSONALIZE

Staging is readying the home to show to potential buyers; you must encourage them to visualize living in the home itself, not in your home. Depersonalizing the home involves removing your personal items, such as photos, trophies, and collectibles. Knickknacks and wall decor are also personal taste items that may distract buyers from seeing the home as theirs. It’s not personal, but not many people will appreciate your beer can collection, antique kitchen accessories, overstuffed closets, VHS/CD/DVD/records collection, and general clutter, except you. Simplify and neutralize your home as if it were a model home because that’s exactly what it is while it’s on the market. Pack and store your treasured items out of sight. Consider monthly rented storage units until your home sells. Make your home a clean, welcoming, blank canvas, upon which any buyer can visually paint their own dreams. It should not feel like your home while you show the home.

DECLUTTER AND DISCARD

It is understandably inconvenient to live in your home without your “stuff ” — it’s like living in a hotel. However, it’s a necessary component of getting top dollar for your house. Extra furniture and items like books, magazines, CD collections, 17

and hobby supplies add weight and visual distraction in a room. Your salt & pepper shaker collection is going to look like clutter, even if the buyer collects salt & pepper shakers. The more spacious your home appears, the more appealing it will be. Minimize as much as possible. You want the home shopper to see what your home has to offer, not guess about the potential or possibilities.

Work From a Plan

• List each room of the house, noting the clutter in each room, including closets. • Declutter rooms one at a time, attacking from the smallest project to the greatest. • Clear out each room, keeping only essential items. • Donate or discard clothes, decor, toys, and other items no longer used. • Box up possessions that you want to keep, and put them in storage. • Keep surfaces clean and free of collected items.

Room-by-Room List:

• Kitchen — Clear the counters, leaving only three or four essential items. Keep towels, dishrags, and potholders out of sight. Soaps and cleaners should be stored under the sink. Rarely used small appliances can be packed and put in storage. Pack away teacups, serving dishes, and platters if you normally showcase them. If you want to draw attention to decorative shelving, put a few pieces out for show. Seasonal dishes and accessories should also be stored. Remove any pest control traps or poison from the

pantry and closets. Appliances are not extra shelving or storage. Buyers will not want to find the microwave used as a bread box or the oven as cookware storage. • Bathrooms — Make the bathroom look as though it’s rarely used. Remove everything from the cabinets and drawers. Keep what you need and discard the rest. Store prescription medications out of sight and out of reach. Find a safe place for jewelry, keepsakes, and cosmetics/ perfumes. Store hair products and styling tools in the cabinets. • Bedrooms —When it comes to clothing, people generally wear 20% of the clothes they own 80% of the time. The focus is showcasing closet space. Only hang clothes that you wear most often, and store the rest. • Dining Areas — Clear clutter off any flat surfaces, including the dining table, leaving only subtle decor, such as a vase of flowers. • Living Areas (living rooms, family rooms, and great rooms) — Gather books, magazines, remotes, toys, gaming gadgets, and throws. Again, clear all flat surfaces, packing away nonessential items and storing magazines and electronics in decorative bins. Fold and drape throws on chairs or stow in closets. • Office Space — Organization is the focus for office space. Overflowing shelves do not reflect useful space. Keep all personal papers stored out of sight. • Linen Closets — Organize and clean out. Store seasonal blankets, clothes, and outerwear off site. Keep linens to a minimum. • Pets — Pet items also need to be out of the way when a buyer comes by. See the section on Pet Peeves on how to

deal with pets while selling your home.

DEEP CLEANING: SPOTLESS IS THE NAME OF THE GAME

Doing a thorough, deep cleaning of your home is vital. It works for people selling a car (they get more money), and it will work for you when selling your home. With the home depersonalized and decluttered, it might make sense to use a professional deep- cleaning service. Otherwise, with the clutter gone, move on to cleaning each room. Tidy each room, from top to bottom. Be meticulous, especially in the kitchen and bathrooms. Homebuyers will open cabinets, pantries, and closets to assess their storage opportunities.

GENERAL LIST OF TO-DOS:

• Clear the cobwebs from every corner of your home. • Dust ceiling fans and lighting fixtures. • Dust the blinds. • Wash the walls. This has to be done before repainting, so this will save you time later. • Clean all glass surfaces: mirrors, screens, patio doors, and tables. • Polish all wooden surfaces. • Wipe down leather furniture. • Attack all appliances with cleaning fervor. Make them shine! • Scrub sinks, toilets, tubs, showers, faucets, and countertops. They must be impeccable. • All tiled areas, including grout, must be free of discoloration, stains, and mildew.

• Clean the window treatments. Wash the windows so that the natural light will enhance your living space. • Vacuum rugs, shampoo carpets, and mop floors thoroughly.

KITCHEN AND BATH: FOCUS ON HIGH-IMPACT AREAS

The most important rooms in your home are the kitchen and bathrooms. A kitchen can sell a house because it is the heart of a home — the place family and friends gather to enjoy one another’s company. Buyers will be turned off by dirt and grime, cooking smells, and trash. Clean all cabinet surfaces as well as under the sink. Bathrooms are so important to Americans that most homes have at least two or three. As you work toward selling your home, it is imperative that the bathrooms are kept clean and odor-free. Potential buyers might forgive a less-than-stellar child’s room, but a questionable bathroom or kitchen could cost you a sale.

PET PEEVES

Pets are wonderful, but homebuyers want to see your home without them. Domestic animals are not unique features or selling points of homes; pet dander and odor aren’t going to provide a positive viewing experience. Some prospects might have allergies, while others may not like animals. For all buyers, they are an unnecessary distraction. Minimize the presence of pets. Dog dishes, cat litter boxes, and beds need to be out of sight. With all the staging work complete, you are now ready to list and showcase your home.

In the next section, you will learn how to price your home. A real estate professional is your best information source for how to sell your home quickly, without lowering the price. When selling your home, there is much to know about pricing, marketing, and negotiations.

CHAPTER 5 How To Market Your Home

The purpose of this book is to provide insight and guidance on how to sell a home quickly and for more money. Previous chapters concerned real estate sales terminology and concepts, with a heavy emphasis on the dos-and-don’ts of getting a home listing ready for the most effective presentation, and thus price. The goal of upcoming chapters is to help in understanding what determines the price and market value of a home — specifically, your home. Despite the term “buyer’s market,” understand that it’s always a “seller’s market,” too. Homes are necessary, and homeownership is cherished. We do not live in caves or nomadic tents. Real estate is a commodity that will remain so. Further, your home is unique. There is no other exactly like it. Whatever individuality you have created within your property makes it stand apart from your neighbors’ homes. There are no set rules of when to sell because homes are not sold from store shelves based on seasonal holidays. People get new jobs or are transferred or decide to move because of family situations all the time, at any time of year. Your home’s value will be based on the sale price of similar homes purchased recently at the time you decide to sell, regardless of season. The bottom line is that you decide the asking price of your home, either by yourself or with the help of a real estate professional.

How do you decide? What is the best way to get online exposure? Do professional photographs make a difference to online shoppers? What more can be done to market your home? Upcoming chapters answer these questions to help you sell your home for the best possible price.

THE PRICE IS RIGHT

A buyer of real estate is no different from a buyer of a painting or a bag of oranges. Both sellers’ and buyers’ perception of value will always have a prominent role during the sale. Perceived value and market value are not the same. You need to know how to price your home strategically and correctly from the get-go to obtain the best price. As a seller, keep two things at the forefront of your mind, as you determine listing price. First, sentimentality has no dollar value. Although you have emotional connections to your home, the buyer does not. Most buyers being shown many properties do not expect yours to be “the one.” You will have to work to get them to that decision. Avoid letting sentiment play a part in pricing the property. Set all emotions aside during the selling process. Buyers look for cues to figure out your motivation to sell. Next, there is also no direct dollar-for-dollar correlation between upgrade investment and market price. As previously noted, a $25,000 kitchen renovation will not bring the market price of a $875,000 home to $900,000. Don’t assume you can add that amount to your asking price and get trapped by making your home the nicest, but also priciest, home for your area.

SALE PRICE VS. MARKET VALUE

If you have a ready-to-buy, bank-qualified buyer who is willing to pay a price you will accept, that is referred to as “sale price.” It is an objective fact without influence. This sale price transaction, once complete, will influence the market value of homes in the area. You determine the price of your home by looking at comparable local sales provided by a professional real estate agent, your property’s condition, and the current supply and demand. What a piece of property might sell for based on features and benefits in a competitive market, and the current supply and demand of similar homes is its market value. You might value your home at a higher price than what a buyer will pay, or its true market price. Balanced markets will equalize market price and market value. Buyers look for the right deal, but what they are willing to pay, or what the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your home.

PRICING EXAMPLE

A homeowner decides to place his home on the market and must decide on an asking price. By rough estimate, the home’s market value falls between $880,000 and $900,000. Many homes are on the market. These are some pricing considerations and approaches to finding that “right price”: • The “leave room for negotiation” approach. In this approach, the market value is “stretched,” say to $905,000. The price will not entice a buyer, but may make

comparable homes more desirable. The home will most likely not sell quickly, or at that price. • The “price it according to worth" approach. This approach sees the price set right between the market value benchmarks, at $890,000. Likely, home shoppers will lump the home with like-priced homes, knowing they can buy anytime for $890,000. • The “underpricing generates interest” approach. Underpricing at $860,000 will motivate buyers and perhaps create a bidding war. But the goal of selling the home for more money is derailed.

THE COMPARATIVE MARKET ANALYSIS

When it comes to finding a buyer, pricing your home based off of comparable, real-priced sales is crucial to making the sale. The Comparative Market Analysis is imperative to pricing strategically. When you ask for one from a real estate professional, be sure to review the analysis, ask questions, and get explanations. If completed correctly, this comparison report not only gives you a great listing price, but also reduces the chance of your home being under-appraised. If you have a well-priced home, you should be showing within the first few days on the market. Offers should come within weeks.

PERCEIVED VALUE

If the perceived value of your home by a potential buyer is greater than the actual price, the more willing he is to buy. The urgency to buy disappears, the closer the price and perceived value are. This means marketing the home to match the buyer’s specific needs and desires. A real estate agent can help you know the buyer’s hot buttons, such that marketing and presentation can be tailored accordingly.

SELLING BY SHOWING OFF

Photographs have become the most effective bait to attract future homeowners. Recent studies show that 89% of buyers use online tools to shop for homes before contacting a real estate agent. They peruse the web, finding homes that appeal to them, and then contact a Realtor. Recent studies show that 89% of buyers use online tools to shop for homes before contacting a real estate agent. They peruse the web, finding homes that appeal to them. Beautiful engaging, photos of homes, inside and out make the best first impressions. Online marketing through photographs is one of the most important ways to market your home. Listing photography is a great tool for showing off the best features of your home. Bright and colorful shots of welcoming spaces encourage buyers to imagine themselves comfortable and living happily in your home. By focusing on the unique aspects of your home — like large rooms with great views or amazing architectural features — you can generate genuine interest. Stage your home to give the appearance of space and light in every photo without distorting reality.

MAXIMUM TARGETED EXPOSURE

When you hire an agent, they can place your listing on all major real estate portals, such as Streeteasy, Zillow and Realtor.com. Buyers flock to these websites to find new listings. The agent can also place your home on their own dedicated website and their social media outlets. In the average month, Zillow alone captures 69% of traffic to real estate websites. When you choose an agent to sell your home, make sure they offer the maximum targeted exposure to potential buyers through the online marketplace. Check to see if they are current with all techniques for online

marketing and can provide the advanced technical services to sell your home:

• Visual maps, such as Google Earth • Floor plans or 3-D floor plans • Video tours • Updates on buyer activity through the agency • Electronic documents • Agency mobile device app • Social media exposure • Virtual home staging (if your home is empty)

Selling a home quickly and for more money takes work. Ensure the home is properly staged and ready to sell. Take advantage of every tool to achieve results. Work with a real estate agent who not only knows the value of good photography, but who can also provide an aggressive internet marketing campaign to bring ready buyers to your listing.

CHAPTER 6 Common Seller Mistakes

This list of frequent sellers’ mistakes regarding house listing pricing can help you avoid the pitfalls involved in selling your home. If setting a price was simple and straightforward, you would not need assistance in pricing your home correctly. Save yourself time and money by avoiding these costly mistakes.

PRICING MISTAKES

The first several seller mistakes involve the issue of pricing.

Guessing vs Researching

Basing your home price on what the neighbor down the hall listed his home for isn’t a reliable method. Nothing loses potential buyers faster than an overpriced home. Subsequent price lowering makes it look like you’re getting desperate to sell, which will increase low-ball offers. However, you do not want to underprice from the beginning. A lower listing price may decrease the time to sell a bit, but you might leave several thousand dollars on the table. Learn how to price your house the right way, based on research. The Comparative Market Analysis is your best source for setting an asking price. If a home in your area sells for a low price, don’t assume yours is worth the same amount. That home may have had condition issues or a personal issue requiring a very swift sale. Your home might have something to offer that the other one did not. Let the Comparative Market Analysis (CMA) be your guide, along with the advice of a real estate professional.

Hiring a Realtor from Highest-Price Suggestion

Choosing a real estate agent simply because they suggested a higher price for your home than other agents is not in your best interest. A good Realtor will know more about the market for your home than you do. Pick an agent who can provide you with real numbers and solid marketing plans. The person you choose to sell your home should be knowledgeable in the local area, trustworthy, and quick to answer questions or concerns regarding the entire selling process. Avoid this mistake by interviewing several agents, and selecting the one who offers sales data and a strategic listing price, not the highest price.

Subjective Pricing

Selling your home is a business transaction between a qualified buyer and yourself. If you have enjoyed living in your home for years but have decided to move on, don’t let emotional attachments to the home affect how you price it. The most objective price will come from the CMA provided by your real estate agent. Memorable moments spent in your home are priceless, but they do not add to the selling price. It is also unrealistic to add dollars because of the labor spent making the house into the home you desired. By focusing on the CMA results and maintaining a firm, strictly business attitude, you can keep emotions at bay.

First Day High-Price Blues

The most crucial time for your home is the first 10 days on the market. Once your home is on the MLS, you will see how much interest is generated. If your price is too high, buyers will pass you by because the home is out of their price range or out of kilter in the market area. By the time you decide to lower the price, they have moved on to other properties. As your home sits on the market, buyers will wonder why the home has not sold and

conclude that it’s undesirable in some way.

Price it correctly from the start to generate interest and gain attention from buyers to sell faster. Unrealistic pricing costs money in the long run.

Un-rushed High Pricing

Even if you’re not in a hurry to sell, it’s not a wise move to test the market by listing your home at a high price to “see how it goes.” Serious home shoppers may take months to find a new home. They are continually looking for new listings — not ones that have been languishing on the market. Thinking that the market will turn in your favor may not be reliable, either. If prices in your area are dropping, you may lose money. By pricing your home based on current market values, you can sell your home more quickly and for more money.

Price Dropping

Another pricing trap to avoid is listing your home far above other homes in the area, with the intention of dropping the price if it does not sell after three months. That is potentially workable in a stable or increasing market. However, if the market in your area is declining, you may be forced to reduce the price even more drastically to catch up to the falling market. Price competitively from the beginning. Do not hesitate to reevaluate your local market. Work with your real estate agent to determine the fair market value of your home.

OTHER SELLERS’ MISTAKES

Zillow has compiled a list of “Don’ts” to help people avoid the pitfalls of an otherwise successful sale.

Selling Before Getting Qualified Yourself

Entering a contract to sell your home before you get qualified to buy another home is problematic. Your financial situation may have shifted since your last purchase, and you may not meet the requirements for a loan, or you may not be able to sell at a price that enables you to buy the kind of replacement home you desire. You might have to rent or buy another house that is far from ideal. Before you decide to sell, get pre-approved by a lender you have confidence in, and study the housing market in the area in which you want to live to get a good idea of how much it will realistically cost you to buy. Make plans in case you have to move right away.

Wasting Time on Unqualified Buyers

It is wasted effort to show your home to someone who cannot buy it. Real estate agents spend considerable effort weeding out showing to non-qualified and unqualified home shoppers.

“Hovering”

Whenever possible, don’t be home during a showing. This is impossible or impractical if you are selling the home yourself. If you have a real estate agent, leave when the house is shown. Lurking sellers make buyers nervous. Buyers may feel they are intruding and then rush through. They may be hesitant to talk about changes to the home or features they don’t like. Buyers will feel uncomfortable closely inspecting the house in the presence of the owners. It’s easier for buyers to visualize the home being theirs when they have a chance to critique and discuss the home among themselves. If you must be home, try to stay out of the way and answer questions only if asked.

Unless there’s a real reason for it, don’t ask your agent to be

present for all showings, either. That will limit your showing activity. Other agents want privacy with their buyers and they do not usually have time to work around your agent’s schedule.

Waiting It Out

If you decide to wait, you are joining the thousands of other homeowners who have also decided to wait. When a few decide it’s time to take the plunge, you’re already too late. If you need/ want to sell now, then sell now. There will never be a better time.

Not Taking the First Quick Bid

This happens often. The seller gets a bite early on and is suddenly filled with confidence that the house will easily sell and maybe even inspire a bidding war. It feels like you’re standing over a pond packed with hungry fish. The first offer doesn’t seem great, and you naturally assume there must be bigger, juicier fish to be had. So, you throw the not-so-small-after-all fish back in. Big mistake. That “tiddler” is often the “catch of the day.”

Becoming Friends with the Buyer

It’s appropriate, even important, to be friendly, but don’t let the personal nature of someone being in your home allow you to get into too many long discussions with the buyers, because personality conflicts often cloud judgments. Watch what is said in discussing items related to the house and neighborhood. Remember, this could be their new home. You’re no doubt excited about moving. But buyers will start second guessing. A casual statement about the house “really being too small for a growing family,” or “the schools are going through some changes” might be enough innocent chatter to squash their interest.

Underestimating Closing Costs

Many sellers only consider the money they are selling their home for. They don’t appropriately calculate all the costs associated with the sale. Zillow lays out the following list of expenses: • Real estate commission, if you use an agency to sell. • Advertising costs, signs, other fees, if you plan to sell by owner. • Attorney, closing agent and other professional fees. • Excise/Gains tax for the sale, if applicable. • Prorated costs for your share of annual expenses, such as property taxes, homeowner association fees, and utilities. • Any other fees sometimes paid by the seller (appraisals, inspections, buyer’s closing costs, etc.).

Spending Earnest Money Given to You

Do not believe that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. There are too many stories about sellers who spent the deposit money prior to closing. When the transactions did not occur, for reasons such as financing contingency or failure of inspection or repair issues, the buyers had to fight or sue for a refund. Another advantage to using a real estate agent is that the agent is a neutral party who will hold the deposit for you until closing day, and make sure your contract dictates what happens to the funds if the transaction doesn’t close.

Forgetting to Cancel/Switch Utilities and Insurance

Many sellers overlook notifying utilities that they are moving or applying for utility service at their new home. Call the utilities and your insurance company as soon as a contract is signed. Find out how many days’ lead time they need to switch or cancel, then get back with them when you have a firm closing date.

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