Terry Naber, REALTOR® - TERRY'S GUIDE TO SELLING YOUR HOME FOR TOP DOLLAR

TERRY'S GUIDE TO SELLING YOUR HOME F OUR HOME FOR TOP DOLLAR

Terry Naber, REALTOR®

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 Price And 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

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14. Bargaining Chips

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15. Why Hire An Agent?

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Introduction Hi there! It’s nice to meet you. If you’ve received this book, it’s probably because you’re thinking about selling your home. And if you’re like most sellers, you may be dreading the entire process. But that’s why I’m here! My job is to make your job as a seller as easy and seamless as possible. Throughout my decades of experience in the real estate industry, I’ve amassed an enormous library insider knowledge to help home sellers get the most money out of their homes in the least amount of time, with the least amount of stress. And now, you’ve got some of that valuable information at your fingertips. If you’ve ever wondered how a friend with a seemingly average house in a seemingly average neighborhood managed to sell his home for a record price, the answer isn’t luck. That person likely was working with a great Realtor® whose marketing strategy worked.

In this book, you’ll find:

• How to get pre-qualified • How to find the right lender • How to right a compelling offer • Negotiating Tips

Sure, you can try to employ these strategies yourself-but why reinvent the wheel? I suggest talking to a highly experienced licensed professional — like myself — to employ them for you. Yes, selling your home can be stressful, but with this book (and my help!), we can make the process as quick and seamless as possible.

About Terry Naber erry Naber One of Colorado Springs premier agents with 32+ years of experience, Terry Naber has become a top “go-to” agent for buyers, sellers, and even other agents needing to buy or sell! She is completely dedicated to creating the best client experience while selling homes for top dollar and negotiating solid home purchases, all the while tenaciously protecting her clients’ interests, since she entered the profession in 1990, when Colorado Springs was the "Repo Capital" of the US" on 60 Minutes. At that time, real estate agents were taught to be high pressure sales people. After 7 real estate sales and purchases of her own, and mostly bad experiences with agents, she saw a huge gaping whole in the process-agents were not protecting their clients. This resulted in the worst transaction of all on the purchase of her Colorado Springs home, which was the worst experience of all. Finally, after meeting a different kind of agent, Dave Deutsch, who truly represented his clients as their advocate, she decided to jump in that gaping whole, went to real estate school in 1989, got her license and worked under Dave and learned the ropes of client representation, rather than a high pressure salesperson. Despite the horrible real estate market of 95% of the sales being foreclosed homes, Terry was immediately successful because the public recognized she was a different kind of real estate animal. Her experience in many phases of construction in the volunteer work of building houses of worship, designing and remodeling and working on her own kitchens and additions, fixing and flipping homes, and attending thousands of home inspections, have added a huge bank of knowledge that she shares with her clients. Ask her a question about anything to do with home construction, etc, and she probably has an answer!

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Today, her experience, knowledge and ability goes unmatched by most real estate agents because she never stops improving. Other hallmarks of Terry’s service are her caring heart, uncompromising integrity, savvy negotiation skills, and cutting edge marketing strategies. Exceptionally well-respected among her peers for her unparalleled professional track record, high ethical standards, as well as being honest, hardworking business owner and family woman, she does absolutely everything in her power to ensure client’s success. Her many awards, 5 stars reviews, high percentage of referral and repeat business attest to her routinely exceeding her clients’ expectations. She has also carefully selected her support staff from the very best in their fields of expertise to offer seamless assistance to her clients for every aspect of their home purchase or sale, and ensures constant improvement to her state-of-the- art systems and marketing. Some of her many awards and certifications: RE/MAX International Lifetime Achievement Award (for sales surpassing $100 million, earned in 2015) Managing Broker's License Awarded to be among the 10 Best Real Estate Agents QSC Platinum Award for 100% Client Satisfaction Chose as mone of America's Top 100 Real Estate Agents (2021) Featured Agent in Top Agent Magazine, August 2022 Selected to be in Who's Who in America, 2022 Numerous yearly RE/MAX Awards Certificate of Excellence Seven Star Award, Broker Agent Homes.com Excellence in Client Service Award, 2021 CRS (Certified Residential Specialist designation, held by less than 3% of agents) SRES (Senior Residential Specialist)

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CNE, (Certified Negotiation Expert) MRS (Military Relocation Specialist) IRES (International Real Estate Specialist) LHP (Luxury Home Professional) ABR (Accredited Buyer Representative) ...and more!

Testimonials & Reviews for Terry Naber

"She has the knowledge and skills to handle every aspect of the contract. We can trust her to get all the details right...Thank you, Terry, for making the sale of a family home painless and worry free." - Cindy M. Terry Naber is the best agent I have ever met...I am a retired Realtor myself, so I know a lot of agents! We initially listed our property with another agent, who took advantage of our absence by doing nothing. I could go on about how bad this agent was; instead I'll tell you what happened 6 weeks later when we fired him and hired Terry instead. She went right to work, advising us what needed to be done, and then recommending and scheduling reputable professionals. We had a drainage problem with the neighboring property. Terry went above and beyond the call of duty dealing with this problem. She visited the neighbor in person, wrote letters, contacted professional builders, inspectors and an engineer firm to solve the problem. She negotiated a compromise acceptable to myself and the neighbor, something I didn't think could be done-and it was free! She was in constant communication with us. She truly is an expert in the Colorado Springs market, and gave insightful advice. Because of her we sold our property for full price. Terry turned what was a nightmare situation into a very positive experience. I would highly recommend her to anyone needing to by or sell. -Janice Doughty "Working with Terry was great, she did such a great job in staging our home, receiving many complements from potential buyers. She is knowledgeable and works hard and uses so many different channels to advertise the homes she lists. I recommend xi

Terry to any family who want to get the best results and experience in selling their home." Nassar O. "We followed her expert advice and sold in 6 hrs! She's wonderful to work with and will use her again and again! Also she replies fast. I think that's important! -Becky S. It gives me immense pleasure to be associated with a genuine and supportive realtor as Terry Naber. In this pandemic, where the world is witnessing the worst of times, we still have a few smart people who genuinely care to make a difference. I can highly recommend Terry. She is the best realtor in the country. She was patient, caring and honest. We were lucky to have her as our agent. We would recommend her to anyone without hesitation. Terry was energetic, knowledgeable and attentive.-Amin Kamranfar Terry Naber is the best realtor I've ever worked with (I've known 6). First, I've never stumped her with a question - she knows a lot! From our initial viewing of properties, through comparing prices and making bids, and on to winning the bid and closing the deal, Terry remained the consummate professional. You can't do better.-Debby Long We chose Terry because of her reputation and we did good. She pays close attention to detail, is very knowledgeable, informative and communicated regularly lessening our worry. She definitely earns her reputation as one of our best realtors. And now she is now our friend!-Ann & John Leopold "Terry is great to have as a realtor and now a friend. She went way out of her way to help us sell our house. Her ideas and expertise were very valuable in the fast listing and selling of the house. I would highly recommend her to anyone thinking of selling or buying a home." Jennings Hanchey

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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, or condominium — the single largest, most complex and stressful transaction a person will ever undertake. It involves new terms and concepts, financial acumen, and larger figures than normally dealt with, and so can be fraught with high pressure and feelings of overwhelm. Add that to the emotion, work, expense and stress of moving, and you have a situation with landmines everywhere you look. Many psychologists rank moving as one of the most stressful life events. With more than 3 decades helping people buy and sell, I have come to realize that the strong emotions at play may affect good judgment. This leads any 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." This emotional value makes it very hard for the homeowner to be objective when making the dozens of decisions that need to made in the process. Emotions often lead to problems in negotiation, and can easily influence both buyer and seller to mistakenly question the motives of the other party-which can lead to a good deal falling apart. Part a "super-agent's" job is to understand this, and to help her clients keep on an even emotional keel when questions and issues inevitably do come up. Every home seller’s ultimate goal is to find a buyer who cannot resist buying your house at the highest price. With this ultimate goal in mind, you need to offer potential buyers a striking home marketing presentation that outshines other homes on the market. It requires making a fantastic first impression, creating 1

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, and maintaining that impression throughout the rest of the showing. This book was written to provide some knowledge that can bring a level of comfort with the process before you speak with an agent, and if you are thinking of going it alone, help prepare you for the daunting tasks ahead. It is my goal for the prospective or active home seller to come to a better understanding of the home-selling process, because knowledge is power, which can prevent unnecessary worry and stress. I’ve also provided insight into some insider secrets on how best to market your home, avoid critical mistakes, and methods of maintaining a proper focus, whether or not you try to sell your home yourself. 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 and more than earn their commission. 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 customized marketing plan to fit your unique home and priorities.

Listing sold, cash, full price in 2022. e in 2022.

CHAPTER 2 First Steps to Home Selling o 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 all considerations that determine a home’s value. What you paid for the home, what you need to sell it for, and what money you have put into it may not actually affect market value. Setting the price at which to sell your home is not a simple formula, nor totally mathematical. Many elements factor into the decision. No computer generated value can take account of the variables that a real estate appraiser or experienced expert real estate agent consider. 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. Your home's market value may not be what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold, or may result in more time on market and ultimately, a lower price. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to understand factors used in setting a home’s best list 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 an 5

expert 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 licensed appraiser, based on recent similar sales. It is a crucial factor in loan underwriting and determines how much money may be borrowed on the property, 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. Most buyers who are getting a mortgage loan will not pay over what a home appraisers for. So, good real estate agents use appraisal principals in determining the market value to determine an optimum list price. Assessed value is the amount local or state government has designated for specific property and frequently differs from market value or appraisal value, because it uses data that is older, and not as precise. In El Paso county, this is a 6 month time period starting 1.5 years ago. This assessed value is used as the basis levying property tax. The assessed value of real property is not necessarily equal to the property’s market value. In our recent real estate boom, it was almost always substantially lower than the current market value. In declining markets, it can be substantially higher. (Just FYI-I do help home owners challenge their tax evaluation, if they think the assessed value is too high, to get their property taxes lowered).

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 really 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. There is no "Kelly Blue Book" for homes, and there is no computer program that can calculate all the different factors to reliably predict market value. Each home is unique. Real estate appraisal is the process of developing a perspective of value for real property, performed by a licensed appraiser, and paid for by the prospective buyer. This is also in most cases, but not always, the market value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing if the seller obtains one before listing the property. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to loan to their borrowers.

The important factors in a house appraisal are:

• Dwelling type (e.g., one-story, two-story, split-level, site built or factory-built) • Features (including design) — materials used and the kind of structure present and how they were built • Quality of construction • Improvements made • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments

• Location within the neighborhood-corner lot? Cul-de- sac? Adjoining a busy street? Backing to open space? • Age of property • Size • Condition Condition, of course, is one of the most crucial factors in valuation. Upgrades or improvements to a residential property often can enhance its value-or may detract, like very expensive ugly wallpaper, purple plaid carpet and pink countertops which could have cost the seller big bugs, but that most buyers would want to replace. Ideally, professional appraisers are licensed, disinterested professional, with expertise and experience in your area. His or her job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against similar recent sold properties in the same area. Appraisals usually cost from $600-$800, and is a multi-;age document containing measurements, photos, and mathematical computations which support the appraised value. Appraisals on Condos appraisals can be more.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

A CMA, as it is called in the industry, is a type of home valuation that is usually complimentary from real estate professionals and is more reliable than automated online offerings, which are computer generated from tax records. A good professional CMA provides detailed information on several similar homes that have sold in your area over the last six months or less. It should also include the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional should explain how and why the

comparable properties (comps) were chosen. An excellent agent will be aware of and employ real estate appraisal technics and price offsets to be able to set a realistic list price. This may be submitted to the appraiser when the appraisal is ordered. Buyers usually won't pay more for a home than it will appraise for. If the appraisal comes in low, be prepared for the buyer to ask you to drop the price to the appraised value. In some cases, I have been able to work out a compromise and save my sellers some of their equity. This is one reason why it is so crucial not to set a list price that is unrealistically high. Along with an understanding of how the worth of a home is determined, the current market must be considered-is it a rising market, or a declining market? Really astute real estate agents watch the market data like a hawk, being able to recognize season patterns and when the market may start to improve or decline. I will be happy to do this for you, and also present the market statistics and supporting data on the comparable sales in your neighborhood specifically, and which way the market is trending. Please refer to the last page of this book if you would like more information on how to request a free home valuation. With all the variables in involved, and with the human subjectivity of an appraisal, you could have 3 different appraisals and get three different results! It is supposed to be objective, but emotions can color even the appraisers' opinion. I had one appraiser appraise a home value low because he personally did not like the area! Another appraiser came in low and almost killed the deal, because he hated the listing agent! He used misleading date to falsely come in low. I was able to challenge that appraisal and save the deal. So, there is no wonder that here 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 stimulate offers at, or even above, the listing price.

THE SECOND STEP IN S TEP IN SELLING YOUR HOME FOR MORE

The seller’s willingness to adequately prepare the home for presentation, called "staging"— 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. The listing agent's marketing plan can also set the seller up for success in the matte. It takes a team to get the optimum outcome-seller cooperation with the agent's implementation of an excellent marketing plan. Part of strategizing marketing is setting a competitive price. This involves understanding if the current market a Buyers' market, Sellers' market or a balanced market? A variable, for instance, like a major company entering — or moving from — the area will tip the scale toward homeowners to make a swift sellers' market or toward buyers to make a slow market. I would never want to "give away" a client's home by underpricing-however, setting a slightly lower price can generate tons of showings and ultimately multiple offers and a much higher price than overpricing a home because "they can just write an offer" if they don't like the price. Pricing higher than your competition ends up in extended marketing time-and almost always a lower purchase price-especially in a declining market. Pricing correctly is a science and an art.

LIVING IN A FISHBOWL

A house on the market requires keeping the home in a constant “show-ready” condition, and interruptions in your day-to-day life are inherent to the process. Sellers get unexpected phone calls at all hours from unrepresented prospects and buyers’ agents to show the home. Frequent updates by phone, email, and text and

show appointment scheduling messages from the listing agent can be inconvenient. There also will be inspections, and repairs that the buyers want done, appointments to measure for drapes and furniture. The house should also be professionally photographed for online, video, periodical, or brochure presentations, prior to it hitting the market. Hopefully there will be 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! Please be gracious-you never know when it might be "your" buyer.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD

Children and pets are not only distractions for potential buyers, but can affect their experience of your home. You should plan for you and your children to be elsewhere and your pets should be crated or absent, and no toys lying about or dog hair on the sofa. Cat boxes should be hidden and pristine. There is an old real estate saying "If you can smell it, I can't sell it?" It goes without saying that the dishes should always be done and the kitchen sparkling, beds made to perfection and toilet lids down!

SELLERS SHOULD ALSO N ULD ALSO NOT BE SEEN!

Many sellers think that they should be present to explain all the upgrades in the home to the buyers, and that no one can sell their home like they can. After such experiences over the years, I can truthfully tell you that it almost always makes the buyers uncomfortable-which is the last emotion we want to evoke! You want to get as many motivated, qualified buyers into your house as you can, but 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. Not true. That's why agents don't like open houses. There is no way that the buyers can be vetted at the door, so it is a great security risk to the agent-and to you! You only want buyers coming in that are truly interested and able to buy. Unnecessary showings to non-buyers and curiosity-seekers can be an unnecessary heavy burden on your time, energy, and resources. You need a really good agent with the credentials to ensure that only bonified buyers come in. This is where a highly experienced real estate agent comes in handy, targeting-marketing to the right demographic of buyers, creating a marketing plan which leaves you free to focus on intimidating to-list of moving without wasting time and energy worrying about how to get qualified buyers in. When I get a call from a prospective buyer on your home, I will ask "qualifying questions" that will tell me if we have a real buyer.

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. 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 more examples of 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. His findings led to 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 don't worry about trying to sell people on the entire home. Applying the rule, you can 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. You also never know what the tipping factors might be with buyers. So, when I market a home, everything I do is designed to maximize the number of buyers that will love your home by staging for mass appeal and removing objections before they are made. For instance, in the property description remarks, I actually prioritize the most popular features of the house first- for instance, almost every buyer would prefer a remodeled home, walk-out basement, fireplace, open, bright floor plan. Less popular features may get mentioned. The first 100 words are the most important to grab the buyer's attention. Here is the reason for this strategy: When the listing is syndicated to thousands of other websites and search engines, each will have its own rules about how many words of the property description remarks populate over. Some will populate all of the remarks-others only the first 2 lines. I once ran across a very lazy, unwise listing agent who had a $6,000,000 home listed. He had absolutely no property description remarks-zero! I had to actually scroll through the 50 photos to find out that it had a regulation ice hockey rink, an Olympic sized heated indoor pool, and many other high-features 14

that a high end buyer would appreciate. That doesn't even count the things that you can't determine by looking at the photos-like custom made furniture-grade kitchen cabinets imported France! When I called him and requested that he fill in the remarks with verbiage that would convince $6,000,000 buyer to want to see it- he just put in one sentence that said it was a very nice home. This agent did not deserve this listing. Of course, he didn't end up selling the house! My listings that were 1/20th of the price received much better marketing-and sold faster, of course. Keep in mind, your selling point won’t be the common features your home shares with the other properties on the market. Instead, I use your home’s unique features to grab the attention of buyers who are interested in those distinctive attributes. For instance-does it have a spectacular view?

BUYER’S STORY

When Vince and Sue were shopping for a new home, Vince wanted a big mountain view. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others were gorgeous but had obstructed views. The search went on for almost a year until they found an older home high on a hill. The neglected exterior and dated interior were not encouraging, but when Vince stepped onto the third-floor deck off the master suite, he was sold by the breath-taking views. Any shortcomings in wall color or fixtures faded away when he took in the view. He could now see the sunrise on the mountains 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 mountains!

SELLER’S STORY

When Cam and Kate listed their home, they needed a buyer who wasn’t concerned that the house was on an unpaved road. Though the home was over 10 years old, the interior was updated with fresh, neutral wall colors and carpeting to look brand new. The towering trees and established yard gave the home a welcoming appeal. The buyer had also looked at a home within a mile of Cam and Kate’s 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 busy street. What 20% of the home caught the buyer’s eye and prompted him to choose Cam and Kate’s home? The buyer loved the secluded country feel of the home. The 1.8-acre property was surrounded by pastures, with grand oaks dotting the landscape. The buyer would rather suffer with the dirt road to be able to enjoy that lovely setting everyday. We Realtors always advise buyers-if you find a house that fits 80% of what you are looking for, 10% of things that you can change to make it acceptable, and 10% you can learn to live with-buy that house!

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 because he had a characteristic shared by fewer than 10% of others — in fact, he had the only available listing offering that feature. His agent 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 her advantage. Her property backed up to the park and fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price. The listing agents in all these examples targeted their marketing to appeal to the buyers looking for those specific features.

THE 80/20 RULE IN ACTION: BUYERS ARE SEARCHING FOR UNIQUE FEATURES

Your agent, or yourself if going it alone, must decide upon, improve, and spotlight the unique features of your home in marketing copy, photographs, and showings. 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 17

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 mountains and surrounding area • Open fields frequented by wildlife • 4 bedrooms on one level • Beautiful upgrades • Remodeling • Huge back yard • Small, easy to care for back yard • Fresh paint • Upgraded/updated light fixtures • Open floor plan • Fireplace • New Roof • 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 • Unique charm • Proximity to entertainment, schools, shopping, etc. • 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.) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out

• Fresh updating, lighting, new appliances, new roof, etc.

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-not to the rest of the world of non-buyers who may have questionable motives. 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 high light 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. But just remember-what you may like most about your home may not be what every buyer wants. Here is an example: Virginia and Jack had built their dream home high on a hill in about 2000, raising the 2 story home even higher to have better views. This made it a walk-up 2 story-you had to go up a full flight of stairs from the garage and basement to get the kitchen. Also, since it was their dream home, they chose tile, drapes and other decor in 1990's colors and decor, which 90% of buyers would want to remodel. They didn't want to remodel neutralize it to today's taste. So, I had some big marketing negatives to overcome. I ignored the major negatives, focused on the biggest draws to capture the 20% motivating factors for most buyers-the spectacular views, the main level master bedroom, 4 car garage and .6 acre wooded lot. I then staged the home to draw the eye away from the dated aspects, add charm and display its functionality, and had "virtually" removed the dated green Tuscan building wallpaper which my sellers thought was the most beautiful wallpaper in the world! They kept saying that we would find buyers just like them who would appreciate the decor. I said, "If we do, they will probably be around your age and have the same issues with stairs that you do, which is why you are selling!" I actually did find buyers just like 19

them who absolutely loved everything about the house-except having to walk through the basement, go up a full flight of stairs with groceries, etc! The marketing brought us a buyer who was up to remodeling to get the 20% of the home that wowed her! WHAT HAPPENS WHEN THE B ENS WHEN THE BUYERS DON'T EVEN KNOW WHAT THEIR 20% IS? T THEIR 20% IS? I once had a retired engineer tell me his ideal home was in a mature neighborhood with beautiful big trees on large lots on the N/W side of Colorado Springs. I showed him a least a dozen homes that fit that description, but he just didn't get excited about anything we saw. I determined that it was the dated decor and floor plans that weren't working. So I decided to show him something completely different. He asked me, "Do you think that I will be able to find a home that I like?" I said, "Let's look at something newer-I have a newer home to show you that is full of "bells and whistles"-it even has a home theater in the basement!" He said "Ok, I am willing to look at it, but who would ever buy a home just because it has a Home Theater?!" He was very skeptical. This home was also on a smaller lot on the N/E side of town, so wasn't anything like what he described. We went into the house which was open, with high vaulting and filled with light from large windows, and in immaculate condition. His eyes immediately lit up, and I could see that he really like what he saw. The deal was cinched when we went down to the theater room in the basement. The sellers had the movie "Dances With Wolves" playing, which has a beautiful musical score, and gorgeous photography, all impressively displayed on the huge projector screen and movie theater like surround sound. He was transfixed. What set this house apart from the other homes we looked at? It had the "Wow!" factor that he didn't even know that he wanted! That 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule. To him, that

view was worth 80%.

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. It was a brand-new, custom-built home, yet it sat on the market for over seven months without a single offer. Obviously, the market was not working. The builder fired his old agent and hired a real estate agent who knew the importance of finding that one special feature to focus on. 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 five-acre yard. Other houses being sold in the area had one- to two-acre lots. Not only was the yard bigger, it was also more private than the other properties. The real estate agent marketed the property by highlighting the private setting on five acres. Because the house was no longer the main selling point, interest in the property increased. The trick is being able to identify what will the most appealing factors of your property is to the general public, and then targeting the marketing towards buyers who would love that feature. If you skillfully identify and describe as many of these factors as you can, and then get it out to thousands of buyers and their agent, you can stimulate interest from buyers who may have different "20%" hot buttons@

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.” Love at first sight might not happen right away. 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 a café' looks (“curb appeal”) from the outside, 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. Case-in-point: I once had a family of four looking for a 23

home in a mature area of Colorado Springs. I set an appointment to show them an older home built in the 1970's by a very forward-thinking builder, Dorothy Stout. The house was ahead of it's time with soaring vaulted ceilings, large open spaces and even a 5 piece master bath. When we pulled up to the home, Mrs. Buyer said "I do NOT want to see inside this house! I hate that awful avocado green brick! Her husband and kids all wanted to go in on my recommendation, but she would not be persuaded. Finally, I said, "Ok. The sellers may be waiting on us to show it, so let me call to cancel the showing." She said, "Oh, I'm sorry. If they are counting on us, let's go ahead and look at it. But we won't spend a lot of time." Needless to say, when she saw the spacious rooms, open floorplan and luxurious master suite, she DID want to buy the house. There are two points to this story: 1. The 80-20 rule made the interior of the house so much more important than the brick color, that she was willing to buy the house. "After all", I pointed out, "the brick can be painted". 2. That house probably sat on the market because that ugly brick repelled many buyers who would have gone in. If the seller had painted it a more in-vogue color, or the listing agent had highlighted the advantages of the floor plan, the house would have sold sooner and for more money. “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 “giant project” — do not want an unattractive home. Sellers-you have two choices if your home qualifies as an ugly house-make it pretty to maximize your bottom line, or sell it for less for an as-is sale. You cannot do both.

CURB APPEAL CAN MAKE A B EAL CAN MAKE A BIG DIFFERENCE

Curb appeal is essential to stimulating showings. 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 or photos 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 weatherworn 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. Repairing and repainting your home can cost more money, but often those upgrades are reflected in the eventual sales price of your home. 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 WELCOMING ENTRANCE: As I mentioned earlier, an important part of curb appeal is the home’s “entrance” — the portal to even the most modest house. You want to create a sense of a great place to come home to. Impressing the home shopper BEFORE and 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. The same is true of a cracked and yellow doorbell button. 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). Do you know that the time this book was written, statistics show that if your have a black front door, your home will sell faster and for money?! It is true. Color has power to attract-or repel. Good real estate agents understand the marketing of power of color-on the exterior of a home, and on the interior. SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB APPEAL: 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. 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. It impresses them before they even come in. 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, and sets your home apart from the competition.

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