Deborah Schindel REALTOR® RENE, SRS, ABR - SELLING SECRETS YOU CAN'T AFFORD TO MISS

SELLING SECRETS YOU CAN'T AFFORD TO MISS

Deborah Schindel ah Schindel REALTOR® RENE, SRS, ABR

Table Of Contents

Introduction

First Steps to Home Selling

The 80/20 Rule

Creating Curb Appeal

The Three D's

Upgrading with ROI in Mind

Staging with Purpose

How to Market Your Home

Common Seller Mistakes

10. Learn from Others' Mistakes

11. Be a Power Negotiator

12. Dos and Don'ts of Negotiations

13. Why Hire an Agent?

Introduction Hi there! 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 years of experience in the real estate industry, I have amassed a great deal of insider knowledge to help home sellers get the most money out of their homes in the least amount of time. And now, you’ve got all of that 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 way above market value, the answer isn’t luck. That person likely was working with a great REALTOR®. In this book, you’ll find: • An overview of the sales process • Secret strategies to sell your home for more money • Common mistakes to avoid • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • Tips for upgrading with the greatest return on investment • A negotiation guide to get more money • And much, much more

Sure, you can try to employ these strategies yourself. But I suggest

talking to a 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 DEBORAH

Deborah was raised in Edmonton and as a child she had aspirations of becoming a Geologist or Architect. Never in a million years did she think she'd stumble into the real estate industry, but one can’t always predict where or when you’ll discover what you’re meant to do in life.

Deborah was taught at a young age that if you want something in life you have to work for it. So that’s what she did. And she worked hard. As the years went by, Deborah worked her way from a small local property management office to Regional Manager for Western Canada for a multi-national company, never wavering in her resolve to become the best version of herself with each career move. Deborah made the decision to use all of her knowledge gathered over 20 years in property management to move into selling homes in 2014, when she ventured into new homes sales; she then joined a national real estate company as a Listing Specialist, listing approximately 2000 properties for sale over the next 7 years. With the closing of that company in early 2023, she was presented with the opportunity to become the best full service REALTOR® in the greater Edmonton area and is loving every minute of it. Deborah lives in Edmonton with her Nigerian-born husband and has travelled extensively (but not nearly enough). She loves to

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visit family and friends near and far, and wants to experience as many new places and cultures as possible. Deborah aims to provide the highest level of service to her clients and takes deep pride in helping them achieve their real estate goals. She has several NAR ( National Association of Realtors ) designations to back her up: RENE ( Real Estate Negotiation Expert ), SRS ( Seller Representative Specialist ), SRES® ( Seniors Real Estate Specialist ®) and ABR ( Accredited Buyer's Representative ).

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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 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 a substantial investment in homeowners’ time, energy, and money, and emotions almost always lead to problems in a sales price negotiation. A home seller’s objective is to find that home shopper who cannot resist buying their 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. 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 (Chapters 4 -7) delves into marketing your home with a look at costly mistakes, avoiding those mistakes, and finding

qualified buyers. In later chapters, 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 standby to assist you with a Comparative Market Analysis (CMA) 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 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 too long on the market and/or ending up not selling at all. 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. 6

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 neighbourhood. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what terms. For example, the Loan-to-Value (LTV) ratio is based on the appraised value. Buyers with a down payment of at least 5% of the purchase price but less than 20% must be backed bymortgage insurance. This protects the lender in the event that the home buyer defaults. These loans are known as “high ratio” mortgages. In situations in which the buyer has 20% or more for a down payment, the lender or borrower could obtain “low-ratio” insurance that covers 100% of the loan in the event of a default. Mortgage insurance is backed by the Canadian government through the Canada Mortgage and Housing Corporation (CMHC). (Globe and Mail, 2016; updated 2017) Assessed value is the amount local or provincial 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 most often NOT equal to the property’s market 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.

ONLINE HOME VALUATION

Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. Note that the assessment is based on available data with no guarantee of accuracy, and often uses an algorithm that simply averages comparable sales in the geographic area. These tools might be quick and easy, but they don’t take into consideration factors like location, current local trends, and the condition of the property. Be aware that the prices arrived upon might even be highly inaccurate.

PROFESSIONAL APPRAISAL

Nothing determines the sale price of a piece of real estate but the price at which it actually 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-storey, two-storey, 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 neighbourhood, 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, the Comparative Market Analysis (CMA), is often free from some real estate professionals, and more detailed and 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 CMA. Please refer to the last page of this book if you would like more information on how to request a free home valuation.

SELLING YOUR HOME FOR MORE

Previously I've shown 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 listing/asking 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. T he 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 within 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. In Canada, ever since the end of the short recession in 2008, this has generally been the

case in most provinces. However, market shifts can and do happen. 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. T hetypical selling time in a swift market might be 30 days or less, while that of a slow market may be up to nine months. Typically, any number below six months is considered a “seller’s" market.

EXAMPLE OF DIFFERING HOME VALUATIONS

A buyer is interested in a home listed at $425,000. The online valuation determines the house is worth $450,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $350,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $425,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? T he fact that they paid $425,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations can’t take into consideration the condition of the property or the qualities of the neighbourhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. Ideally, they should be the same, but usually they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the

appraisal.

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 can get 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 want to 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, if home, 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 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 The 80/20 Rule

“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

RELATING THE 80/20 R G THE 80/20 RULE TO SELLING

Understanding the 80/20 rule concept can save you time in selling your home. Applying the 80/20 rule, you stop trying to sell people on the entire home. Applying the rule, you can 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 don’t neglect it, but in photographs and showings, feature the elements that make your home special. Keep in mind, your selling point won’t be the common features your home shares with the other properties on the market. Instead, use your home’s unique features to grab the attention of buyers who are interested in those distinctive attributes.

BUYER’S STORY

When Vince and Sue were shopping for a new home, Vince wanted an ocean view of the Pacific. They looked at many desirable properties on Vancouver Island but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a short walk from the ocean. The neglected exterior and dated interior were not encouraging, but when Vince stepped onto the third-floor balcony off the master suite, he was sold. Any shortcomings in wall colour or fixtures faded away when he took in the view. He could now see the sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the ocean!

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 colours 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 just a few kilometres 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 buyers’ eye and prompted them 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.

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 his had a characteristic shared by fewer than 10% of others — in fact, he had the only available listing offering that feature. He pointed to that feature in marketing the townhouse. With this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to advantage. Her property backed up to

a lake and fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price.

THE 80/20 RULE IN ACTION:

BUYERS ARE SEARCHING FOR UNIQUE FEATURES

Decide upon, improve, and spotlight the unique features of your home in marketing copy, photographs, and showings. Don’t bother spending too much time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced- off dog run in the unusually large

backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price. Each house will have its unique features. Here are some suggestions if you aren’t sure of yours:

• Hilltop views or high vantage point, offering a spectacular view of the surrounding area • Greenspace or no direct neighbours adjacent • Open fields frequented by wildlife • Unobstructed views of sunrise and sunset

• Patios, decks, dog runs, garden areas, and gazebos — highlight items neighbouring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot

• A private location or lot partially concealed by trees • A unique, shady, or larger backyard; a fenced backyard is a big selling point (If your yard can be fenced but is not, consider making that improvement.) • Finished basement, large attic or garage, swimming pool 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. In doing so, you won’t have to show as frequently. You also won’t have to sift through lowball offers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your house with others in the neighbourhood to see what makes yours stand out. Work with that.

HOW THE 80/20 RULE APPLIES TO HOME SALES ME SALES

An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offers 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home for the buyer were dwindling. They stopped at one last house as the sun set. The exterior of the house was dated and the yard untended. This agent and her client had spent the entire day looking at houses that shared 80% of the same features. Nevertheless, once the buyer walked into this home, he wanted to offer the full asking price. What set this house apart from the others? He wasn’t too interested in the kitchen, bathrooms, and bedrooms. A bedroom

was a bedroom, as far as he was concerned. He fell in love with the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view out a large window. As they entered the great room, the sun was setting below the distant tree line. That view sold the buyer. The remaining parts of the home could be improved. The home buyer based his decision to buy on the window view from the hillside. The 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule. In some cases, the 80/20 rule may help people make a sale without even conducting a showing. The house in the following example had languished on the market for months. Unlike the previous home, this one was attractive: It was a brand-new, custom-built home, yet it sat on the market for over seven months without a single offer. The builder hired a real estate agent who knew the importance of finding that one special feature. He drove out to give the house a thorough investigation. He discovered what the property had that the competition did not. The house had a 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 five acres. Because the house was no longer the main selling point, interest in the property increased.

CHAPTER 4 Creating Curb Appeal b Appeal

Someone once said, “a stunning first impression is not the same thing as love at first sight. But surely it is an invitation to consider the matter”. This could not be truer than in selling a home.

First impressions matter. Sometimes they are everything.

Nothing sets the tone of a relationship or encourages a transaction more than first impressions. So, always consider what a potential home buyer may think as he or she drives up to your property for the very first time. Think of “curb appeal” as the home seller’s shop window. Like picking a lunch place on a busy avenue in a tourist spot, it’s either the outside presentation, or as we saw in the 80/20 rule discussion, some particular feature that brings in the customers. For most lunch seekers, it is the way the place looks (“curb appeal”), and to others, the soups and sandwiches they serve (specific desired feature). You do not have a lot of time to establish a curb appeal relationship with a prospective home buyer. 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 20

to see more.

“We buy ugly houses” is a sign often seen nailed to electric poles. Rehabbers look for ugly houses so that they can pay the least amount possible; home buyers looking for a deal — not a “basement bargain” — do not want an unattractive home.

Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did not find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by.

Try this. Go out into your street and look — I mean really look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are their 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 neighbourhood 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 home buyers are drawn to welcoming

entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Low-cost investments like power washing the house and concrete, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with little to no expense. Repair and repainting are costlier, but often tell in time-to-sale or sale price. The goal here is to get more money for your home. Home buyers 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 22

profits.

Then, await the prospective buyers who will be drawn to the inside of your home when they see how beautiful it is from your curb!

CREATING A GRAND ENTR AND ENTRANCE

As I mentioned earlier, an important part of curb appeal is the home’s “grand entrance” — the portal to even the most modest house. You want to create a sense of a great place to come home to. Impressing the home shopper at the front door is a vital part of the home sale. This means more than putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe, and secure when they open the door. The doorknob is the first point-of-touch on a home. Security is important to home buyers. A flimsy lock or handle on the front door will make potential home buyers uncomfortable, and they may not even know why. Replace a worn or loose entry handle. 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 and feel secure in their home. The front door is a focal point; make it impressive. Freshen it up and add a dash of colour. Choose a paint that complements the colour of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI.

CREATING GREAT CURB AP T CURB APPEAL: EAL:

• Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will 23

detract from the curb appeal; the overall appearance of the home needs balance. • 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 colour. 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 fresh and clean. • 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. • Add a “smart” doorbell. Most home doorbells are outdated or not working, so if you invest around $150 to $250 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers who are looking for security measures.

CHAPTER 5 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 / vinyl record collection, and general clutter, except you. Simplify and neutralize your home as if it were a show 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, if necessary, 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. 26

Extra furniture and items like books, magazines, CD collections, 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 too. 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 countertops, leaving only three or four essential items. Keep towels, dish rags, 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 throw blankets. 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. Laundry Room — Whether your washer and dryer are in the basement, laundry room, or closet, you should make the room or area neat. Organize what you keep with shelving or bins. Don’t leave clothes out for buyers to see. Store detergents, bleach, and softeners in cabinets. Don’t use the tops of the appliances for storage. Garage — Although cleaning the garage may be the most daunting of tasks, it can be as simple as getting rid of things you haven’t touched in years. Boxes of broken toys, useless sports gear, and rusty tools all seem to migrate to the dark corners

of the garage. Use this opportunity to donate or discard. Other items, like wall paint, extra tiles for the floor, and bicycles, can be shelved or hung. Pets — Pet items also need to be out of the way when a buyer comes by... it's not personal... not everyone feels the same about fur babies. See the section on 'Pet Peeves' on how to deal with pets while selling your home.

DEEP CLEANING: SPOTLESS IS THE N TLESS 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. Wash the windows so that the natural light will enhance your living space.

• 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. • 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 Canadians that most homes have at least two. As you work toward selling your home, it’s 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. Pets are wonderful, but home buyers 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. 30 PET PEEVES

Minimize the presence of pets. Dog dishes, cat litter boxes, cat trees and pet beds need to be out of sight. Pets should be relegated to cages or backyards while showing your home. 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 6 Upgrading with ROI in Mind OI in Mind

Making upgrades can be as easy as replacing the handset on your front door and freshening up the paint job, or as daunting as remodeling an entire kitchen or master bath. The question always is, what home improvements give the best return on the remodelling dollar?

Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” It is frequently advised in this area that it’s better to update/remodel your home while living in it and not solely at the time it comes to sell. That way, there is more enjoyment in the improvement and less cost and time in preparing for sale. Some desirable upgrades or home improvements will not return their cost in the sale price, so it’s better for the owners to enjoy them all along. If your home is worth $375,000, and you spend $25,000 to revamp the kitchen, don’t make the mistake of assuming that the investment will increase the value, dollar for dollar. The remodel may add value to the home, but the return in dollars spent will be around 50%. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodelling of those rooms isn’t wise, just to sell your home. That’s not to say you can ignore necessary repairs that a home inspector would red-flag or bank would demand before issuing a loan to a buyer. If major problems, like a leaking roof or outdated 32

electrical wiring, exist, you may want/need to repair those before putting your home on the market, or expect to give certain concessions (<$$$) to the buyer.

STARTING WITH THE B G WITH THE BASICS

Every listed home should meet the basic expectations of any buyer. It should have a sound roof, functioning gutters and downspouts, a foundation without cracks, functioning heating and air conditioning system, solid subflooring, and safe and secure electrical wiring. With finance-mandated home inspections, any shortcomings may be required to be remedied to get buyer financing approval. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodelling to sell the home or to increase the value may not pay off. The property needs to be up to the standards of neighbouring homes, so while the kitchen has to be comparable to others, spending $25,000 to remodel a kitchen in an area where comparable homes recently sold for $375,000 will not increase the house’s value to $400,000. While it may be a helpful selling feature, it won't return dollar-for-dollar value.

MECHANICAL MAINTEN CAL MAINTENANCE IS A MUS CE IS A MUST

It is easy to get wrapped up in the more eye-pleasing aspects of preparing a home to sell. However, the upkeep of all the more mundane aspects of the home cannot be overlooked.

These mechanical features require consideration:

• Electrical boxes and wiring • Natural gas lines • Plumbing

• Central heating and air-conditioning

If these components are old, outdated, or not working correctly, the home’s appeal is lowered, as is the eventual sale price. For example, most home buyers expect a fully functional HVAC system in a home. This is considered one of the most important mechanical features of a home for buyers. People want to purchase a home that reflects their aesthetic tastes and lifestyles, but also one that is safe and sound. Faulty electrical systems do not provide a feeling of safety. Leaky plumbing arouses concerns of mold infestation and sewage problems. These areas can require extensive work and they are extremely important. Overlook them in the preparation stage, and you run the risk of trouble later with inspections and appraisals. It aids the sale if professionals certify or remediate any deficiencies in the mechanical systems. Having a professional inspection for buyers to review is a big plus in marketing. • Have a certified plumber inspect the entire water system for leaks. Check the well and septic system, if applicable. • Hire an electrician to check the wiring. • Call an HVAC company and have technicians perform a thorough service checkup. • Contact the natural gas supplier and have them double- check the mechanics of your tank and lines. If you’re looking for an alternative to calling and arranging all the different inspections, certified home inspectors usually cover all items related to mechanical issues (and more). They will be able to identify possible trouble spots. Many buyers hire an inspector, so you may be saving them a major step in the sale process, although many may also not trust your inspection and still have 34

their own done as a condition of purchase.

If you have mechanical issues and decide to sell your home “As -Is,” it may be necessary to negotiate with the buyer.

REPLACING APPLIANCES

New appliances undoubtedly make an impact on buyers. Many studies and surveys have shown that home buyers are very interested in purchasing a home that had new appliances, with a preference for energy efficiency and stainless steel, and would be willing to pay more for them. Potential buyers want appliances included and will pay more for them, especially if they are new or in excellent condition. Energy efficiency is also a high priority for many home buyers in Canada—particularly younger buyers and first-time buyers. New appliances might be what sets a house apart from the home for sale across the street. If new appliances are out of reach, offer immaculately clean and fully functioning existing ones.

UPDATING HARDWARE

Carefully inspect your bathroom and kitchen hardware. If it is unsightly or worn, it’s best to replace it. Put yourself in a buyer’s shoes. Your home will potentially be their new home. Old, worn- out fixtures are not going to speak to them the way nice, new shiny hardware will. Unless your knobs, pulls, handles, or hinges are broken, you need not replace them. Get that fresh look simply by thoroughly washing, sanding, and painting them with spray paint made specifically for kitchen and bath hardware, making it cost- effective.

Check these hardware items closely and replace as needed:

• Towel bars • Toilet paper holder • Door handles • Dated light fixtures

The goal is to touch up your home nicely without excessive spending. The internet has a wealth of do-it-yourself videos that can help you update your bath and kitchen if your budget is limited. If you have broken or worn-out hardware, it’s best to replace the entire set. If you can find matching pieces, you can paint the old and new to match.

LET THERE BE LIGHT

Whether natural or artificial, bringing in light is one of the most effective ways to show off your home. Using light to enhance your home’s appeal can make a difference. Harsh light is unflattering, even to the best furnishings and features. Dim lighting gives everything in the house a dingy feel. Assessing the

lighting in each area of your home will give you a quick idea where to bring in more light. Rooms with abundant windows greatly benefit from natural light, as your home will be seen during the day. Supplemental light is necessary for rooms with smaller windows or little natural light coming in. Increase the wattage of light bulbs in your lamps to improve artificial light. As a rule of thumb,

there should be 100 watts for each 50 square feet of space.

There are three kinds of lighting. General lighting or overhead is typically ambient. The pendant light is good for tasks like food preparation or reading. Accent lights are usually on tables or mounted on walls. You can use all three to bring out the best your home has to offer. Key areas, such as foyers, can set the stage by impressing buyers with a dramatic light source. If you do not have an abundance of natural light coming in, a chandelier-type light works if your ceilings are high. Otherwise, wall sconces are impressive in smaller spaces. Don’t assume you need to buy new fixtures if you can update existing ones. The goal is to make sure each area of the home is effectively lit. Kitchen and bathrooms are pivotal rooms. These two areas can make or break a sale. The combination of ambient, natural, and pendant light can bring out the best in your kitchen space. Mounting track lighting underneath cabinets gives the counters a chance to shine aesthetically and functionally. Make sure the light over the sink area is sufficient and working properly. If you have a hood over the stove, install clear bulbs to ensure the brightest light. Lighting in the bathroom needs to be intense without being harsh. Soft lighting enhances any part of the house you want to highlight. Avoid harsh lighting in the bedrooms, as well. Lamps strategically placed will give the bedrooms a peaceful, restful feel. The closet light should be bright, though.

2 TIPS:

1. Try to keep the colour of the lighting consistent, at least in

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