Richard "RJ" Freedkin - CUSTOM SECRETS EVERY HOME SELLER …

SECRETS EVERY HOME SELLER NEEDS TO KNOW

Richard "RJ" Freedkin

Table Of Contents

Introduction

First Steps To Home Selling

Pareto's Principle

Creating Curb Appeal & The HGTV Syndrome 23

Staging With Purpose

Upgrading With ROI In Mind

The Three D's

How To Market Your Home

Common Seller Mistakes & What You Need To Know If You Need To Sell In Order To Buy

10. Learn From Other's Mistakes

11. Finding Buyers

101

12. Be A Power Negotiator

105

13. The Dos And Don'ts Of Negotiating

111

14. Bargaining Chips

117

15. Why Hire An Agent?

121

Foreword

When I first ventured into the real estate industry over 40 years ago, I did so with the hopes of helping homeowners like you avoid the headaches often associated with the Real Estate Industry. In my many years of experience, not only have I helped alleviate the stress of real estate transactions for

thousands of clients, but I’ve also accumulated years of knowledge and experience which has helped them get more money for their homes in the least amount of time. (for more information on my background, see my Biography section) I've decided to share much of my expertise in one place with potential clients. Hopefully that’s why you’re reading this book now. I want to help you have the best possible home-selling experience. And by that, I mean I want you to... 1) Get the most money possible for your home, 2) Sell in the least amount of time, and 3) Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including:

- Secret strategies to sell your home for more money - Marketing techniques employed by top agents - Advice on how to appeal to today’s buyers

And much, much more!

If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home quickly and for the most amount of money. Happy reading!

Richard “RJ” Freedkin, Realtor RENE, SRS, ABR eXp Realty, LLC 10N. Martingale Rd., Suite 400 Schaumburg, IL 60173

RjGetsItSold@gmail.com www.rjgetsitsold.com

(847) 922-8423

p.s. - selling a home and getting it "show ready" may involve the investment of some funds to get you and your home in the best position to sell it for the most amount of money. Many times the additional money you get for your home after this work is completed is multiples the cost you invested - so it only makes sense to do the extra work. I would be happy to consult with you to point out the best updates that will get you the most amount of money for your home with the least out-of-pocket cost. I have written a FREE detailed and comprehensive 50+ page booklet entitled:

"GET YOUR HOME READY TO $ELL!"

This booklet covers in depth everything you need to know about how to prepare your home properly for sale. Please contact me if

you would like a free copy of my booklet.

Contact me at:

(847) 922-8423 or email me at RjGetsItSold@gmail.com

p.s. if you are reading the digital version of this book and would like a hard copy, please contact me and I will be happy to get one out to you!

vii

About Richard J. Freedkin

Richard Freedkin is a Full-Time Licensed Realtor who has spent over 40 years in the Real Estate Arena where he has acquired considerable in-depth real estate knowledge and expertise. Within that time-frame, he successfully built, owned and operated a prominent mortgage brokerage firm originating more than 20 million dollars of mortgage loans per month, bought, sold and managed millions of dollars of real estate, served as a general contractor rehabbing both single family homes and apartment buildings, and became an author and sought after national speaker on the subject of selling homes quickly and for the most amount of money. There really isn’t any aspect of Real Estate he doesn’t thoroughly enjoy, including helping his clients achieve their goals and dreams. Richard’s journey began in 1976 while working as a clerk in the mortgage department of a local mid-sized Chicago Savings and Loan Association. Within 10 years’ time, he climbed the ladder of success to senior management, where he spearheaded every facet of the mortgage department’s operations. In 1986, with all the valuable first-hand knowledge and experience he acquired, he decided to establish a mortgage brokerage of his own. Soon, his company became the third largest brokerage across Northern Illinois, originating 20+ million dollars in monthly mortgage loans. Ultimately, this staggering success led to an array of prestigious awards from industry giants like Bank of America and Countrywide Funding. Twenty-five years into his mortgage career, Richard was catapulted into the real estate investing space, where he successfully purchased, sold, rehabbed, and managed millions of dollars’ worth of real estate. As his accomplishments continued

to gain momentum, he was inspired to write his debut book/ course, a 260-page “how-to” publication that teaches people all his unique systems on the art of selling homes in record time and for the most amount of money. Before he knew it, he became the go-to resource and sought- after expert on selling homes and was often invited to speak at esteemed real estate seminars and conventions nationwide. To this day, his cutting-edge marketing methods and systems have helped thousands of fellow real estate investors and homeowners across the nation achieve success with their properties. Using his Real Estate Broker’s License, Richard leverages his vast real estate knowledge, extensive experience, and unique systems to ensure his client’s goals turn into reality without the hassle typically associated with the industry. Richard has also studied and utilizes extensive negotiation strategies insuring whether you are a buyer or seller, that your interests and hard-earned money are well represented. He has studied, passed stringent curriculum courses and received several Realtor Certifications and Designations such as:

RENE – Real Estate Negotiation Expert ABR – Accredited Buyer Representative SRS – Seller Representative Specialist VA Certified Agent Certified “Express Offers” Agent

When you're ready to move to the next step of buying or selling your home, Richard would be honored to work with you to guide you through the entire real estate process! WHY USE RICHARD FOR YOUR REAL ESTATE TRANSACTION?

Knowledge, Experience and Superior Negotiation Skills. For over 40 years, Richard has been involved in over 8000 real estate transactions in various capacities and understands all the complexities of the real estate marketplace. Richard was a national speaker on real estate investing, has bought, sold, negotiated, managed and rehabbed millions of dollars of real estate and has authored several books on the subject. You can rest assured Richard has the knowledge, background, passion and experience to help you with all your real estate needs. If you are buying a home, Richard uses all his knowledge and expertise to fight to get you the lowest price and the best terms for your home purchase. If you are selling a home, Richard uses all his knowledge and tools to fight for every penny of your hard-earned equity and strives to get above market prices and the best terms for your home sale.

Give Richard a call at (847) 922-8423 to discuss all your options.

CHAPTER 1 Introduction

The largest investment most people make is their home. That makes selling a home - whether a single-family residence, duplex, 2-4 flat, condo or townhome - the single largest, most complex transaction most people will ever undertake. It involves new terms and concepts, financial acumen and larger figures than most normally deal

with.

It is also one in which emotions may come into play to the detriment of good judgment, Surely , the seller thinks, my home where I raised my children and made so many memories is worth more than the bricks and mortar it contains. Real estate transactions involve dozens of decisions and a substantial investment in a homeowners' time, energy, and money. Emotions almost always lead to problems in negotiating the sale price and other crucial sale terms. The home seller's objective is to find that particular home shopper who cannot resist buying the home for the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market in your area. It requires making a fantastic first impression, creating in the buyers mind an instant feeling that they are traveling up the front walkway of their new home for the first time, and not visiting someone else's. It's about falling in love at first sight, from the curb, in the initial fleeting 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 feel 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 have also provided actionable insight into how to best 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 and at the best price possible. Take time looking through the various 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 current market value, best listing price, how to negotiate and what improvements have the best Return on Investment (ROI). My sincere hope is that this book will help you make the most of your time and efforts to sell your home. In Part 1, the process and importance of preparing your house for sale is examined: how to present the home to get the 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. We examine the critical topic of negotiations - what to expect and how to conduct them.

In Part 3, we finish with a look at what engaging a real estate professional brings and the process of getting the most dollars in your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute licensed real estate professional can vastly cut the time and raise the economic value of your transaction. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, you might want to talk with me. I stand by to assist you with a Current Market Analysis (CMA) and a solid marketing plan to fit your needs and lifestyle. If you are reading this book as my electronic version and would like the hard copy, please let me know and I will be happy to get you one!

Richard "RJ" Freedkin, Realtor eXp Realty, LLC (847) 922-8423

CHAPTER 2 First Steps to Home Selling

"But You Gotta Know the Territory" - and Terminology

Location! Location! Location! as you may have heard, is the most crucial consideration in real estate and a major factor, if not the predominant one in real estate pricing. Novice (and not-so- novice) home sellers alike must know the considerations — such as location — that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value many times is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold and ultimately ends up selling for less than it would have had it been priced properly in the first place. Familiarity with the real estate terms: market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to more meaningfully 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. More simply it is also defined as "What a seller is willing to sell at and what a buyer is willing to buy at". Appraised value is an evaluation of a property’s worth at a given point in time that is performed and determined 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 or sales price whichever is less. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. Assessed value (different from appraised value) is the amount local or state government has designated for a specific property and frequently differs from market value or appraised value. The 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 or its appraised value. Approximately 60% of U.S. properties are assessed higher than their current market value; however, this does not reflect the home’s actual value.

WHAT IS YOUR HOME TRULY 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 EVALUATION

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 or upgrades of the property. Be aware that the prices arrived upon might be highly inaccurate. Example 1 - I recently sold a home in Sycamore IL for $247,000.00. I had taken over the listing from a previous agent who had it on the market for 9 months and got ZERO offers. I agreed to take the listing on the condition that the seller would make some very minor cosmetic changes such as painting a couple rooms with a current popular color scheme. With their agreement I also agreed to list the home for the very same price as the last agent. Within 5 days of my listing going live I had an open house. I had 10 families come through and sold the home to a couple that saw the home that weekend within 1% of the listing price! You may be asking, what does this have to do with inaccurate online databases? Well... 3 weeks after closing the sale of this home for $247,000.00 I received an email from that company that starts with the letter "Z" and sounds like "pillow" stating "This Home was just Sold for $988,000.00"! Now I may be a good Realtor... But I'm not that good! This just proves that the online company's data is highly inaccurate! (yes I have a copy of this email if you would like to see it) Example 2 - A home in Ohio was put into one such system, Redfin (https://www.redfin.com/what-is-my-home-worth). The home last sold for $180,000 in 1998; it was appraised for

refinancing in 2015 at $275,000. In 2017, Redfin’s calculator valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 square feet) in a four-block area of “Grand Old Ladies” at $158,000. The apparent reason is that the six “comps” (comparable recent sales) included only 2 homes in this desirable neighborhood (over $300,000), while four others outside this small neighborhood, although close, sold for $150,000 to $199,000. Because the system doesn’t understand the makeup of the area and simply pulled prices from a broader geographic area, the arrived-upon price was far below what it should have been. These tools are worthwhile for obtaining “comps” of area sales; however, they are not highly accurate in arriving at a proper listing price.

EXAMPLE OF DIFFERING HOME EVALUATIONS

A buyer is interested in a home listed at $420,000. The online valuation determines the house is worth $440,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $300,000, the buyer wonders

why the values are so different and whether he overpaid. The seller listed the home at $420,000 based on the online calculation of $440,00 thinking, at that price, the home would sell quickly and perhaps for even more. Why would the appraised value not be whatever a buyer was willing to pay? The fact that they paid $420,000 does not mean that is

the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations cannot take into consideration the condition of the property or the qualities of the neighborhood. And unlike the definition that market value is what a seller is willing to sell

at and what a buyer is willing to buy at, when you have a lender involved, it becomes "at what value a lender is willing to lend against". This is why lenders perform appraisals. Unfortunately however, I can hire 3 appraisers to appraise the same piece of property and many times the values of all 3 appraisals will be different from each other - but they should be close. Since an assessed value is for taxing purposes only, it can be much more or much less than the market value. Most home owners believe mistakenly that 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.

PROFESSIONAL APPRAISAL

No tools or books determine the exact price a piece of real estate will ultimately sell for. The final determination is what the home actually ended up selling at (within the scope of market forces and appraisals from a lender if the home is going to be financed). Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“property valuation”) is the process of arriving at and developing a perspective of value for real property. This many times (but not always) is also close to it's market value — i.e., what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions generally require appraisals because the same property does not sell every day or month or even every year, they happen infrequently. Every real property is unique in features and characteristics and the market is constantly

changing. A property that sold for $300,000.00 7 years ago could be worth far more or less than that amount today and also could have been updated or degraded since the last time it sold. An appraisal helps in various decision points. The seller can use a recent appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to determine how much money to lend to their borrowers (provided their income qualifies for the loan).

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 • Amenities • 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. Most lenders are required to use outside independent real estate appraisers so a bank officer can't demand what price to appraise the property at.

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 of similar homes with many of the same amenities, square footage etc. and then to make appropriate adjustments up or down to each of the comparable sales based on those updates or differences to arrive at an adjusted value of each comp. This will end up with allowing the appraiser to end up with a final value for the property they are appraising. COMPARATIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL (CMA) This type of home valuation is free from real estate professionals (Realtors) and, depending on the knowledge of the Realtor, can be considerably more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months to a year, along with the final sale price. It also includes the specifics of all the comparable houses currently for sale as well as currently under contract 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. Some CMA's may also contain expired listings which typically means they were probably overpriced and thus did not sell. Along with an understanding of how the value of a home is determined, the current market must be considered. By utilizing a professional real estate agent (like me), you can rely on 40+ years proven expertise in valuations to market your home at a price that will get the most showings and the highest offers. I will be happy to provide you with a Comparative Market Analysis. As you may or may not know from reading my bio, I owned a mortgage company and was in the industry for over 25 years. I had taken many appraisal courses and even received an IFA certification (independent fee appraiser) although I did not

pursue getting licensed for that. I was also head underwriter for a bank mortgage department before opening my own mortgage company and have underwritten over 8,000 appraisals in my 40+ years of being in real estate. My extensive real estate background makes me uniquely qualified to provide you a very accurate valuation for your home. Please refer to the section towards the end of this book entitled "What is Your Home Truly Worth?" if you would like to request a free home valuation from me.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Prior discussion showed that there is no calculable certainty in setting the value of a home or even getting to a final exact negotiated price. There are just too many variables. There can be wide differences between the county's assessed valuation, the asking or listing price, the appraised value and the price at which the home ultimately sells for. Let’s turn to what the homeowner/ seller can do to elicit offers at the listing price, or even above, in a competitive market. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation by improving, freshening, adding or manicuring the landscaping, and generally making the home pristine — and to live in that presentation-readiness state for the time it takes to sell the property — will greatly affect both the sale period as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing date 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 can easily tip the scales in either direction. The typical selling

time in a hot market might be 30 days or less, while that of a slow market may be nine months to a year or more. Typically, any number below six months is considered a seller’s market.

LIVING IN A SWIRLING FISHBOWL

Unless you have already moved to your new home, a house on the market requires keeping the home in a constant “show- ready” condition, and adjustment to changes in day-to-day life that are inherent in the process. Unrepresented Sellers can expect to get phone calls at all hours from unrepresented prospects and even buyers’ agents to show the home. However, if a seller is represented by a Realtor, those become few and far between as the marketing is tailored for all calls and showings to go directly through the listing agent. There are additional upheavals to a seller's daily routine when selling a home such as frequent updates by phone, email, and text and showing appointment scheduling messages, possible repair and reconditioning appointments and home inspections and appraiser appointments. The house will also need to be professionally photographed for online, periodical, or brochure presentations as well as 3D interactive tours (which I do on just about every home I list). The first week a home hits the market you can expect multiple and repeated showings. It is important to keep your home in pristine showing condition for impromptu and last minute showings — the perfect prospect might just drop in at dinnertime. Rude, perhaps, but necessary to accommodate.

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 old saying "less is more" couldn't be more appropriate when selling your home. Make sure to declutter and remove pictures. Buyer prospects need to envision them living in the home and not seeing your lifestyle that will distract them from letting their mind wander. 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. Unfortunately, many buyer 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 but I have many ways to reduce that burden by special scheduling tools I use. Since a showing can take an hour or even hours (although more typically like 30 minutes), finding an interested buyer is what matters most. The home will be shown to many more uninterested than interested buyers. How many times will you have to show your home? In an ideal world, your property would be shown to serious buyers only. However, many “Sunday afternoon window shoppers” exist in the real estate business. However, if your home is prepared and marketed properly it could end up being shown to 30+ interested buyers in its first weekend on the market and receiving multiple offers. 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.

I have written a detailed 50+ page booklet entitled:

"GET YOUR HOME READY TO $ELL!"

This booklet covers in depth everything you need to know about how to prepare your home properly for sale. Please contact me if you would like a free copy of my booklet. contact me at:

(847) 922-8423

or email me at

RjGetsItSold@gmail.com

CHAPTER 3 Pareto's Principle

“Eighty percent of results will come from just twenty percent of the action.” This is the Pareto principle, attributed to Italian economist and philosopher Vilfredo Pareto, who, in 1906, observed an intriguing correlation. He began work on the “80/ 20 rule” with the observation that 20% of the pea plants in his garden generated 80% of the healthy pea pods.

This observation caused him to explore more examples of uneven distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. His findings led to the concept that 80% of results will come from

20% of the action.

While it does not always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of the most reported software bugs cause 80% of software crashes • 20% of patients account for 80% of healthcare spending 17

RELATING 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 very 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 ocean and 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 that ultimately purchase their home 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. The 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. Another owner whose townhouse also bordered this wooded area also 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 at the time it went on the market offering that feature. He pointed to that feature in the marketing and because of 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 LOOK FOR THE 20% DIFFERENCE AND MARKET TO THAT FEATURE Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to buyers who are looking for what you have and 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

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 21

the one remarkable feature of this otherwise uninspiring house.

The house sat on a hill with a beautiful view out a large picture window in the great room and the sun was setting below the distant tree line. That breathtaking view sold the buyer. The remaining parts of the home could easily 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.

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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 and the home quickly sold.

CHAPTER 4 Creating Curb Appeal & the HGTV Syndrome

Someone once said, "a stunning first impression was not the same thing as love at first sight. But surely it was an invitation to consider the matter." It is also said that we eat with our eyes first. If a dish does not look appealing, no matter how tasty it may be, the odds are against anyone trying it. This could not be truer and more important when it comes to selling a home. First impressions matter. Sometimes they are everything! We are also dealing with a different type of buyer than we did years ago. With all the home improvement shows such as "Chip and Joanna Gains", "Love it or List it" and the "Property

Brothers" shows available 24/7, homebuyers today are brainwashed into thinking that if the home does not look as good as the "AFTER" repaired looks of the homes on television, they are not interested in buying it. Homebuyers today want "turn-key". I call this the "HGTV syndrome".

Many of the tips in this and later chapters deal with small things you can do to increase how fast you sell and how much you sell for. This also means that items that may cost you as little as $100 to 23

update, in a buyer's mind, will cost $500 to $1000. This means much lower house offers. Remember, they want turn-key! They do not want to do any work and will subtract unrealistic amounts from their offer because of it. Most items have a high rate of return on investment so do not think it is throwing away money. I do however always recommend that you speak to a knowledgeable realtor (like me) and have me come out to your home to make the best suggestions of what to improve in order to get the most return on investment. This way we can get your home updated as quick as possible, get it on the market and sell it fast and for the most amount of money. Nothing sets the tone of a relationship or transaction more than first impressions. So it is important to consider what a potential homebuyer may think as he or she drives up to see your home for the very first time. Think of "curb appeal" as the seller's "home shop window". Like picking a lunch place on a busy street in a tourist destination, 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, its the particular dish they serve. (specific desired feature). You do not have a lot of time to establish a curb appeal relationship with a prospective homebuyer. You can win or lose a customer in a matter of seconds! Whether cruising the Internet to view online photos from across the street or across the country or cruising by your home in the family SUV, home shoppers will decide at a glance whether they want to see more. This is one reason I use high-end professional photographers who use what is called "HD Real photography" when we are

getting ready to list a home. It may be more expensive to use this type of photography, but the results are stunning and usually ends up in more showings and ultimately a higher sales price. We have all seen the yellow signs that say "We buy ugly houses" nailed to electrical poles. Rehabbers look for ugly houses so they can pay the least amount of money possible. Homebuyers looking for a deal - other than a "basement bargain" - do not. 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, whereas a neglected exterior can cause a buyer previously excited by the printed or online marketing or the listing's specific desired feature to cruise right on by. Try it. 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 while, you're not likely to examine it objectively or from the perspective of a homebuyer. But you must if you want to get the highest price possible for it! Listen to suggestions from real estate experts, or potential home buyers about how you can make your house show better. If you ask your friends, they may or may not give you good advice as they may just tell you what you want to hear to avoid hurting your feelings. Always ask non-associated experts who typically won't mind telling you the truth and will tell you what is truly in your best interest. Then, take a drive around your neighborhood and surrounding area and see which homes whether for sale or not appeal to you. Go ahead and take notes as to why one home appeals to you versus others that do not. Well-tended homes with trimmed bushes, groomed lawns, attractive landscaping and a "grand

entrance" (discussed shortly) will be more impressive than homes with an unkept 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, weeds 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 prospective buyer would. Drive up to the curb and take inventory of everything that needs attention. Simple improvements like weeding, trimming, window washing and repairing of torn screens can improve the appearance of a home with little to no expense. Other repairs and repainting may be costlier but often tell in time-to-sale and sale price. Low-cost investments like power washing the home and concrete, repainting trim and adding landscaping also give your house more curb appeal. The goal here is to get more money for your home. Homebuyers generally are not 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, beds weeded and walkways tidy.

• No trash, trash cans, lawn clippings, branches or general mess in the yard. • All outside fixtures and components working and in good repair (door and yard lights, garage door, porch rails);

functioning properly and looking their best. (Spray paint can work wonders on rusted exterior light fixtures too!)

• Outdoor features such as patio furniture or decks updated with stain or paint.

Make all major and minor improvements to update the exterior of your property. There may 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 for top dollar. 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 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 in the buyer 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 just putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe and secure when they open the door. It might be arranged that the prospective buyer be the one to open the front door to enhance the feeling of a "coming home" experience. Believe it or not, the door knob is the first point-of-touch on a home. Security is very important to homebuyers. A flimsy lock or handle on the front door will make potential homebuyers feel 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 small

investment of less than $100 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door is a focal point: make it impressive. Freshen it up and add a dash of color. Choose a paint that compliments the color of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI (return on investment). SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB APPEAL Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home needs balance. • The mailbox should complement your home. If it is worn, dated or unsightly, replace it. This doesn't cost much and is worthwhile. • Use outdoor lighting to add to landscaping appeal as well as a perceived safety feature. • Use flower boxes and raised flower beds to add instant color. This is an easy and 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. (subliminally they will think if the owner cares for the outside like this, they must also care for the inside. They will want to see more!)

• Consider enhancing architectural appeal by adding

molding to the tops and sides of the doorway or around windows.

• Keep shutters and trim in excellent shape. Repainting them adds to the attractiveness. Fence gates, arbors and fencing panels should be clean and fresh. • Clean downspouts and gutters. Repaint or touch-up to eliminate rust spots. • Ensure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping interfere with the home shoppers walking up which diminishes the inviting look.

• Paint or stain railings (if weathered).

• Try a fresh coat of 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 driveways (including a fresh coat of blacktop sealing) can also be as effective as repainting at a much lower cost. Power washers are easily rented from local hardware stores. (if you do not feel comfortable operating these, hiring someone to do it is inexpensive but well worth it) • 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 out of 10 home doorbells are outdated or not working. 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. (smart thermostats that allow an app on the phone to adjust temperature from anywhere in the world are a nice feature that buyers like as well) 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, no matter how uninterested they might have been initially. If you put money into cleaning up the outside of your home, buyers will be 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 (HGTV Syndrome). Also remember that buyer's typical estimate of costs of repair can be as high as 10 times the actual Investment you make. Their offers will end up being much less if they perceive they have to do a lot of work to the home that you could have done for pennies on the dollar compared to their estimates. ------------------------------------------------------------- I have written a FREE detailed and comprehensive 50+ page booklet entitled:

"GET YOUR HOME READY TO $ELL!"

This booklet covers in depth everything you need to know about

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