Rebecca Southard - SELLING SECRETS YOU CAN'T AFFORD TO MISS

SELLING SECRETS YOU CAN'T AFFORD TO MISS

Rebecca Southard

Table Of Contents

Introduction

First Steps to Home Selling

Pareto's Principle: The 80/20 Rule

Creating Curb Appeal

Staging with Purpose

Upgrading with ROI in Mind

The Three D's

How To Market Your Home

Common Seller Mistakes

10. Learn From Other's Mistakes

11. Finding Buyers

12. Be A Power Negotiator

13. The Dos and Don'ts of Negotiating

14. Bargaining Chips

15. Why Hire an Agent?

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. If you’re like most sellers, you may be dreading the entire process. But that’s why I’m here! My job as a real estate agent 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’ve amassed 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 an average house in a seemingly average neighborhood managed to sell their home way above market value, the answer isn’t luck. That person likely was working with a great Realtor®. • 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. In this book, you’ll find:

About Rebecca... ebecca...

When she's not busy landing deals for her clients, you can find her at the local airstrip setting kids (age 8-17) up on free flights with the local EAA Chapter pilots. Hanging out with friends or her kids, relaxing by the pool reading or trekking through nature is how Rebecca unwinds after a long week working hard for her clients. Rebecca has dedicated her life to helping her clients achieve their real estate goals.

Rebecca was raised in Anchorage, Alaska and was taught from 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. (But that’s not to say she didn’t have fun along the way.)

Rebecca got into the real estate industry 6 years ago as she started approaching her own military retirement, and decided to start investing in real estate. She initially set out to fix and flip properties in the upper mid-west. Since then, she started a non-profit that helps homeless veterans get back on their feet.

As her career advanced, Rebecca found her stride working primarily with military members, veterans and first-time homebuyers & sellers. She's an expert in relocation moves, and

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working with professional movers, having done several herself.

Rebecca currently lives in San Antonio, Texas with her hubby, daughter and puppy Tater Tot. In addition to Real Estate, she enjoys camping, hiking, hanging out with friends and working with kids at the EAA Chapter hangar. Rebeca aims to provide the highest level of service to her clients and takes deep pride in helping them achieve their real estate goals.

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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 substantial investment in homeowners’ time, energy, and money, and emotions almost always lead to problems in a sales price negotiation. The home seller’s objective is to find that home shopper who cannot resist buying your house at the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market. It requires making a fantastic first impression, creating 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. 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 delves into marketing your home with a look at costly mistakes, avoiding those mistakes, and finding qualified buyers. In Part 3, we examine the critical topic of negotiations — what to expect, and how to conduct them — and finish with a look at what engaging a real estate professional brings to your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute real estate professional can vastly cut the time and raise the economic value of your transaction. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, I stand by to assist you with a Comparative Market Analysis and a solid marketing plan to fit your budget and lifestyle.

CHAPTER 2 First Steps to Home Selling 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 considerations that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to meaningfully engage in setting a home’s listing price. The most used definition of market value is “the most probable price a property should bring in a competitive, open market, under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what 4

terms. For example, the Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. Assessed value is the amount local or state government has designated for specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current value.

WHAT IS YOUR HOME WORTH?

The first step in selling your home is knowing the difference between value, worth, and price. Let’s examine the determining factors at work. Understanding those factors allows them to be leveraged. There are several ways a home’s value is derived.

PROFESSIONAL APPRAISAL

Nothing determines the sale price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“property valuation”) is the process of developing a perspective of value for real property. This is the market value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently and every real property is unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it as a gauge

on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.

The important factors in a house appraisal are:

• Dwelling type (e.g., one-story, two-story, split-level, factory-built) • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments • Age of property • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation is free from real estate professionals and more helpful than automated online offerings. It provides detailed information on each house sold in your area over the

last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market must be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I will be happy to provide you with a Comparative Market Analysis. Please refer to the last page of this book if you would like more information on how to request a free home valuation.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Prior discussion showed that there is no calculable certainty in setting the value of a home. There can be wide differences between the seller’s assessed price, the asking or listing price (market value), and the price at which the home sells (sale price). Let’s turn to what the homeowner/seller can do to elicit offers at, or even above, the listing price in a competitive market. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation — and willingness to live in that pristine state for the time it takes to sell the property — will greatly affect both the sale period as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing is considered balanced or neutral, which means a good number of homeowners are selling and buyers are purchasing; therefore, neither has an upper hand. A variable, for

instance, like a major company entering — or moving from — the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days, while that of a slow market may be up to nine months. Typically, any number below six months is considered a seller’s market.

LIVING IN A FISHBOWL

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

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD

Children and pets are distractions for potential buyers, affecting their experience of your home. You should plan for your children to be elsewhere and your pets crated or leashed, and no toys lying about or dog hair on the sofa. The dishes should always be done and the kitchen sparkling. The pressure of showing to everyone even mildly interested in looking (not necessarily buying) may come from the idea that the more your home is seen, the more quickly and easily your home will sell. Many real estate agents provide their clients with

dozens of homes to consider without a clear picture of what the buyer wants. Low-interest traffic can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or even hours out of your day, finding an interested buyer is what matters most. The home will be shown to many more uninterested buyers than interested buyers. How many times will you have to show your home? In an ideal world, your property would be shown to serious buyers only. However, many “Sunday afternoon window shoppers” exist in the real estate business. That said, you shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the professional help of a qualified real estate agent enables you to handle even the most intimidating tasks without wasting efforts.

CHAPTER 3 Pareto's Principle: 's Principle: 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 • 20% of patients account for 80% of healthcare spending

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

Understanding the 80/20 rule concept can save you time in selling your home. Applying the 80/20 rule, you stop trying to sell people on the entire home. Applying the rule, you can 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. 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. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a short walk 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 color or fixtures faded away when he took in the view. He could now see the sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the 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 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 miles 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.

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. He pointed to that feature in marketing the townhome. With this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to her 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. Do not spend much time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced-off dog run in

the unusually large backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price. Each house will have its unique features. Here are some suggestions if you aren’t sure of yours: • Hilltop views or high vantage point, offering a spectacular view of the surrounding area • Open fields frequented by wildlife • Unobstructed views of sunrise and sunset • Patios, decks, dog runs, garden areas, and gazebos —

highlight items neighboring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot • A private location or lot partially concealed by trees • A unique, shady, or larger backyard; a fenced backyard is a big selling point (If your yard can be fenced but is not, consider making that improvement.) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to buyers who are motivated to make a purchase. You won’t have to show as frequently. You also won’t have to sift through low-ball offers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your house with others in the neighborhood to see what makes yours stand out. Work with that.

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

An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offers 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home 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.

A buyer was so interested that he submitted an offer from 1,000 miles away. Fearing that someone else would buy it before he could, he bought it sight unseen. He didn’t want to lose out on his “perfect” home. The sale was completed in 45 days. The builder was amazed! His house had been on the market for close to eight months. That small percentage of the home’s features was the selling point. The 80/20 rule unfolds again. Learn how to apply this rule by leveraging a unique selling point, and you will not have to settle for less than your asking price. Buyers who fall in love with a home rarely offer a lower price. By shifting focus to the five acres, the real estate agent captured the interest of buyers immediately. The house was no longer unsellable, but desirable.

CHAPTER 4 Creating Curb Appeal b Appeal Curb Appeal — The attractiveness of a property for sale and its surroundings when viewed from the street First impressions are powerful, and, as they say, you don’t ever get a second chance to make a first impression, so creating curb appeal is crucial to generating interest in your home. Curb appeal is so powerful a selling tool that your well-prepared house may even catch the attention of buyers who weren’t attracted by the written description of your home. 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.

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.

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). 18

You do not have a lot of time to establish a curb appeal relationship with a prospective homebuyer. Whether cruising the web to view online photos from across the country, or cruising by your home in the family SUV on a Sunday afternoon outing, home shoppers will decide at a glance whether they want to see more. “We buy ugly houses” is a sign often seen nailed to electric poles. Rehabbers look for ugly houses so that they can pay the least amount possible; homebuyers looking for a deal — not a “basement bargain” — do not want an unattractive home. Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did not find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by. Try this. Go out into your street and look — I mean really look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are there necessary repairs that you have been putting off? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from real estate experts, your friends and/ or potential home buyers about how you can make your house show better. Then, take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you and note why. Well-tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door.

The outside appearance of a property needs to be an invitation to come inside. Potential homebuyers are drawn to welcoming entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Low-cost investments like power washing the house and concrete, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with little to no expense. Repairs and repainting are costlier, but the payoff is often reflected in the sale price. The goal here is to get more money for your home. Homebuyers generally aren’t interested in a home that needs work, unless you want to sell below market value. Look around your yard, and make a written list of everything that could be improved: • Shrubs trimmed, flower gardens tended, walkways tidy, and beds weeded • No trash, trash cans, lawn clippings, branches, or general mess in the yard • All outside fixtures and components (door and yard lights, garage door, porch rails); functioning properly and looking their best • Outdoor features, such as patio furniture or the deck, updated with staining or painting Make all necessary 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. 20

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 homebuyers. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable, and they may not even know why. Replace a worn or loose entry handset. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. This investment of less than $100 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door itself is a focal point, so make it impressive, too. Is the paint on your metal door faded? Is it peeled and flaking? 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 an average 91% return on investment (ROI). You can also replace brass kick plates fairly inexpensively, which adds a newness to the appearance.

SOME OTHER CONSIDERATIONS

IN CREATING GREAT CURB AP T CURB APPEAL: EAL:

• Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home should be balanced . • The mailbox should complement your home. If it is worn, dated, or unsightly, replace it. This doesn’t cost much and is worthwhile. • Outdoor lighting is not only a great way to add beauty to your landscape, it is perceived as a safety measure. You can purchase attractive yet inexpensive solar lamps that soak up the sun all day and glow all night. No wires or cords necessary! • 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. You don’t want your home to appear neglected. If they can’t be repaired, replace them. It will add to the ROI in your sale price. • 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. • If your railings look weathered, consider a fresh coat of stain or paint. • 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 your local hardware store, or if you’re not able to do it yourself, most house painters offer pressure washing as a side service. • Adding some stone or stone veneer to the face of the home is an inexpensive way to instantly update your home, if it complements the design. • Add a “smart” doorbell. Eight of 10 home doorbells are outdated or not working, so if you invest $200 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers who are looking for security measures. Curb appeal is one of the most essential elements in selling your home quickly and successfully. You can create interest in your home before buyers even step out of the car, even if they didn’t think they were looking for a home like yours. If you put money into cleaning up the outside of your home, buyers will be far more likely to want to see the inside. Your home’s curb appeal draws buyers in, maintains their interest, and sets your home apart from the competition.

Remember that unless you are willing to lower your home’s price well below market value, prospective homebuyers typically won’t want to take on a major renovation project. The upcoming sections will lead you through the interior staging of your home and understanding the power of photography in marketing your home. Know where to spend and where to save. The investment of your time and energy to update can improve the way your home is appraised, viewed, and valued.

CHAPTER 5 Staging with Purpose

According to Wikipedia, home staging, or “real estate enhancement” is “the act of preparing a private residence for sale in the real estate marketplace. The goal of staging is to make a home appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money.” Staging is the act of sprucing up and setting up a home's interior to make it as visually appealing as possible to a prospective buyer. Creating an appealing home — one that potential buyers can envision themselves living in — is the best investment in the sales effort. Sellers often fail to take full advantage in this regard, as it takes considerable time and work. However, the payoff is proven. Staging is considered one of the most effective marketing strategies to increase the value of your home. This strategy is effective in any market, in any type of home 26

property being listed. It applies equally to single-family houses, apartments, townhouses, and condos. This approach works! Agents and sellers using this tactic have a greater chance of selling the property for more money. Home staging does take extra time and work, but the payoff is well worth the effort. Staging is one of the most effective marketing tools to sell homes for more money. In today’s competitive real estate market, selling your home requires hard work and dedication. If you are a motivated seller, this is where you can bring your home to the marketing forefront. Creating an appealing, eye-catching home via strategic staging helps potential buyers envision themselves living in the home and has come to be known as the best investment of your time and effort when selling a home.

Staging the home will:

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

THE POWER OF STAGING WHEN S G WHEN SELLING A HOME

Consider these statistics according to a 2021 survey by National Association of Realtors®. • 82% of buyers agents said a staged home made it easier for buyers to visualize the property as their future home. • 31% of agents said that staging a home greatly decreased the amount of time it spent on the market. • 23% of agents said staging a home can increase the dollar value offered by as much as 10%. • Homes staged prior to listing sold 79% faster than homes

staged after listing.

A real estate agent accidentally discovered this secret strategy when he met a wealthy executive who wanted to sell his condo. He was willing to hire the agent with one condition: the real estate agent had to agree to use the man’s secret method to sell the condo. The agent was naturally skeptical, but he knew selling the condo would bring a handsome commission. Conversely, if it did not work out, their agreement would expire, and the agent could walk away. The real estate agent decided to give it a shot and listed the condo. They priced the condo at $554,900, even though two similar condos in the same complex were listed for $479,000 and $439,000.The agent was not confident that the condo would sell for the $554,900 price. On the other hand, the owner’s secret strategy was intriguing. The condo went on the market, and the agent waited to see what would happen. He began to doubt the strategy, as he was showing the condo regularly but was not receiving any offers. People were walking through and leaving. To make matters worse, most visiting agents thought the condo was overpriced. They could not understand why the owner was asking for so much more than comparable condos. After all, a similar condo around the corner was available for $100,000 less! They counseled their buyers to keep looking and left without making offers. The condo had no special features that set it apart from the others. This unit was not a penthouse. It was on the sixth floor of a 10-story complex. The other agents were well within their rights to say the price was too high. Still, the owner stood firm. Four months and many showings later, a buyer walked in who loved the condo the moment he 28

stepped through the door. He made an offer before he finished the tour. The agent was so excited that he rushed to call the owner. The owner accepted the man’s offer and sold close to listing price. The condo successfully sold for $549,000, which was a record high! The strategy they used was a huge success. Naturally, the real estate agent was excited, and the owner was thrilled to make a substantial profit. The price was $110,000 higher than a condo that had sold two- and-a-half months earlier. The higher price was not due to the current market, either. The next unit that sold (28 days later) went for $435,000. It was a less desirable second-floor unit. Five months later, another similar condo sold for $450,000. What was the seller’s secret strategy to selling for more money? What was the special request the wealthy seller had requested of his agent? It was simple. He insisted that the condo be staged. The successful real estate agent knew he was onto something. He began researching everything he could find about staging’s impact on the selling prices of homes. He collected his findings and shared the tactics the wealthy seller had taught him. He included all the examples he had found as case studies. Many agents already encouraged sellers to stage their homes. However, few of them were familiar with the following case study, proving staging is an effective method of selling your home for more money.

WHAT DO BUYERS WANT TO SEE?

Most home shoppers are envisioning a fresh start. If they can

picture themselves living in the home, the home will be easier to sell. Think of it as creating “interior curb appeal,” where the eyes are drawn to inviting spaces and light, as well as to unique features. Each room needs a purpose or suggested use. The home must feel new to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. By removing dated wallpaper, adding a fresh coat of paint, updating the brass bathroom fixtures that were all the rage in the 90s and replacing stained carpets and popcorn ceilings, you can improve the salability of your home by 75%! High-end replacements are not necessary; your goal is to create a clean, simple, and contemporary feel to your home.

NEUTRALIZE FOR VISUAL APPEAL

The most important aspect of staging your home lies in removing all distractions that may prevent the home shopper from imagining themselves living in each space of your house. One of the most effective ways to appeal to the buyer is to “think fresh,” and paint every room a neutral color. A wide range of neutrals, from soft grays to warm beiges, is readily available at any home improvement center. Many stores offer the expertise of associates who are often well-acquainted with preparing a home for sale and can assist you in selecting just the right hues. For instance, dark or bold wall colors can dampen interest in a home if used in large spaces but can be used effectively as accent colors. Painting the interior not only gives a newness to your home, it can also make it appear more spacious. By using the same color in visibly adjacent rooms, your house will have a seamless look and uninterrupted flow.

You can also create the illusion of more space by changing your

window coverings to match the walls.

FOCUS ON FURNITURE: LESS IS MORE

In staging, a visibly inviting space is created so that the home shopper can envision or imagine life in that space. Minimization is the key. Like any homeowner, you will take your furniture with you when you move out of your home. Until then, your personal taste and style will be showcased while your home is on the market. In upcoming pages, you will learn about depersonalizing your home — but first, we’ll examine the concept of creating space by keeping furniture to a minimum. Buyers are attracted to spacious homes, flooded with light. At the same time, they are repelled by darker homes, filled with cramped and unnavigable spaces. Remove all unnecessary furniture from your living spaces, and store it elsewhere while your home is on the market. Home shoppers want to walk through your home without obstacles. Space and storage are high on buyers’ lists, so every area of your home should feel spacious. All closets, pantries, and storage rooms must be organized and free from clutter. Remove the things that aren’t necessary for daily living, and store keepsakes, photo albums, rarely used appliances, and so forth out of sight, preferably off the premises, so closets and cabinets are not cluttered. This will create interest and showcase the home’s space and storage capacity. Furniture placement is an easy way to highlight unique house features. A grouping of chairs in front of a fireplace will draw attention to it. Avoid pushing furniture close to the walls. Reposition easy chairs into floating group spaces. Every room has to be staged to show function as well as beauty. An empty room used for overflow of boxes, possessions, or

unwanted items should be transformed into a usable, desirable space. Clean it out and create an office space with a desk and chair, or a reading room with a lamp and recliner. Exercise equipment might be arranged to feature it as a workout room. Every room should have a purpose and be user-friendly. Make your home’s traffic flow smoothly, so buyers can browse each room without effort.

EMOTIONAL CUES AL CUES

Once every room has a purpose, creating atmosphere is key to making your home desirable. Decorative touches like greenery, flowers, and scented candles give life to your home. Frame rooms with creatively placed wall art. A bedroom with a bed, a single pillow and blanket, and a harsh overhead light will make the room seem bare and lonely. By adding a table with a little décor — such as fresh flowers, a lamp and a few books — and a rocking chair draped with a lap robe, you heighten its appeal. Make sure to add elements of the same color, shape, or texture to unify the room. Any splashes of bold color should appear in the wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can tastefully decorate for the seasons without dashing your home’s appeal. The main goal is to keep your home clean and free of “stuff” that distracts would-be buyers. Even simple things can make a big impact on the final sale price of a home. Effective staging is one of those things!

You have two options for staging a home:

Option 1: Do it yourself. Option 2: Hire a professional home stager.

If you are considering hiring someone to handle your staging, contact me for a list of references. I’m happy to share recommendations and send you information on stagers who will transform your home from just “somebody’s house” into a desirable property that will entertain numerous tours and, ultimately, offers.

TO STAY OR NOT TO STAY?

Home sellers often ask whether they should stay in their home while it is on the market, or move out. There are pros and cons to both and factors that can tip the scale to one side.

Pros of Moving Out

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

Cons of Moving Out

A vacant home can signal that the homeowner is a “motivated seller” who needs to sell quickly. Consider this example found on an online real estate forum. A buyer saw that a home was vacant and offered $30,000 less than the asking price. The buyer was sold on the home anyway and would have paid more, but “haggling” began well below asking price because the buyer assumed the owner was desperate to sell. In the next few pages, you will learn how to prepare for staging. Remember, first impressions are important. The time and effort you put into creating great first impressions will pay off when you sell your home quickly and for more money!

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 remodeling dollar?

Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” According to HGTV, doing minor upgrades to the bathroom, such as re-caulking, replacing old/outdated fixtures, changing the shower door, and giving the room a fresh coat of paint can yield a 102% return on investment. If your home is worth $275,000 and you spend $15,000 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 remodeling of those rooms is not wise. That’s not to say you can ignore necessary repairs that a home inspector would red-flag or a mortgage company would demand before issuing a loan to a buyer. If you are facing major problems, like a leaking roof or outdated electrical wiring, you must either address those repairs yourself or be prepared to make major concessions on pricing to the buyer, so that they will not have to bear the burden of major repairs as well as the price of the home. 36

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, foundation without cracks, functioning heating and/or 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. You do not need to undertake extensive remodeling projects to sell your home or to increase the value of your property. You do need to be sure your property is up to the standards of the neighboring homes. What’s important, though, is that you understand that the market value of your home is determined by the prices of homes recently sold in your area. Remodeling your kitchen to outshine others may not get you more money for your home, especially if it exceeds the market value buyers are willing to pay. You could spend more money than you will make in return — it is possible to over-improve.

MECHANICAL MAINTEN CAL MAINTENANCE IS A MUS CE IS A MUST

It is easy to get wrapped up in the aesthetic aspects of preparing a home for sale. However, you should never overlook the upkeep of the “unseen” aspects of your home that keep it warm or cool, dry, and safe from fire.

These mechanical features require consideration:

• Electrical boxes and wiring • Natural gas lines

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