Bernie Stephan, Eco Realty - Managing the Real Estate in a Divorce

Managing the Real Estate in a Divorce

Managing the Real Estat eal Estate in a Divorce

Bernie Stephan, Eco Realty

Table Of Contents

Moving On

Be Prepared

Marital Settlement Agreement

The 80/20 Rule

Relating the 80/20 Rule to Home Selling

Creating Curb Appeal

Staging with Purpose

Upgrade with ROI in Mind

The Three Ds

10. How to Market Your Home

11. Common Seller Mistakes

12. Avoid Costly Mistakes

13. Finding Buyers

14. Be a Power Negotiator

15. The Dos and Don'ts of Negotiating

16. Bargaining Chips

17. Serious Considerations

Foreword Divorce is one of life’s most challenging transitions. It can feel like a whirlwind of emotions, legalities, and logistical decisions. Among these challenges, deciding what to do with your shared home stands out as one of the most significant—and often the most painful—decisions you’ll face. This book isn’t about making divorce easier; it’s about making one part of it—managing real estate—clearer, less overwhelming, and ultimately more empowering.

Over the years, I’ve had the privilege of guiding countless iii

individuals and families through the maze of selling a home during a divorce. I’ve seen the heartbreak, the relief, and ultimately, the resilience that comes when people take informed and intentional steps toward their next chapter. Inside, you’ll find practical advice and compassionate guidance designed to help you navigate the complexities of selling your home in this unique situation. From minimizing stress and maximizing financial returns to ensuring confidentiality and professionalism, my goal is to give you the tools and insights you need to move forward with confidence.

CHAPTER 1 Moving On

Divorce is never easy. Even the most amicable separations are marked by disappointment, miscommunication, and unmet expectations. Ideally, both parties work together to resolve differences productively and part ways without unnecessary conflict. However, emotions inevitably fluctuate as the marriage, family dynamics, and shared assets are legally separated. Adding to the stress is the sale of the family home, often the largest asset in the marriage. This can stir a range of emotions—sadness, anger, nostalgia, and frustration. The combination of divorce-related pressures and the complexities of selling a home requires patience, diligence, and emotional resilience. With the guidance of seasoned professionals—such 1

as attorneys and real estate agents—divorcing couples can successfully navigate this challenging transition and move forward. The phrase “this, too, shall pass” may sound cliché, but it’s an important reminder. No matter how overwhelming the process feels, it will eventually come to an end. The divorce will be finalized, the house will sell, the children will adapt, and life will move forward. During this time, personal resilience is invaluable. Decisions about the family home are not only emotional but also legally complex. Divorce laws vary by state, so consulting a licensed attorney is essential to protect both parties' interests. When selling a home during a divorce, several key questions arise: What steps should be taken to ensure a quick and profitable sale? Who selects the real estate agent? When is the best time to list the home? Who bears financial responsibilities for the sale? Educating yourself about the process and being proactive can help alleviate concerns and clarify expectations. Every divorce presents unique circumstances. This book is not a legal guide, nor does it provide legal advice. Instead, it serves as an informational resource to help you understand the real estate aspects of divorce. Familiarity with key terminology and options can give you greater confidence in making informed decisions. California follows community property laws and consider all assets acquired during the marriage to be jointly. Temporary restraining orders often prevent either spouse from selling, transferring, or borrowing against property once a divorce is filed. Since these protections vary by state, it’s important to discuss them with your attorney. The family home is often a couple’s most valuable joint asset and may need to be sold to fairly distribute its value. Understanding

the distinction between a mortgage and property title is crucial in this process. A mortgage is a financial agreement used to purchase property, with the lender’s security interest recorded on the title. If mortgage payments are not met, the lender can foreclose on the property. A property title signifies ownership rights. A person listed on the title can transfer ownership but cannot transfer more than they legally own. Some divorcing couples use a quitclaim deed to transfer ownership from one spouse to another, but this does not remove financial responsibility. A spouse who signs over their title may believe they are free from mortgage obligations, but unless the mortgage itself is refinanced, they remain legally responsible for payments. To fully release a spouse from liability, the remaining owner must refinance or secure new financing to buy out the other party’s share. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser. The intent of this book is to provide information regarding the sale of your home within the framework of a divorce; it is not intended to provide legal counsel or advice.

CHAPTER 2 Be Prepared

Successfully handling the disposition of the family home in a divorce begins with a clear understanding of your financial standing. Knowing your precise financial situation amid the emotional turmoil of divorce will help you avoid making impulsive decisions that could have long-term financial consequences. It is crucial to determine who bears legal financial responsibility for the mortgage payments. If both spouses are listed on the mortgage agreement, they are equally obligated to the lender, regardless of whose name appears on the property title. Removing a party from the title does not eliminate their financial obligation. Two signatures on a mortgage mean two responsible parties. This also applies to the homeowner’s insurance policy, so it’s essential to verify who is listed as the beneficiary and whether both parties remain insured. For these reasons, it is critical to gather and promptly provide your attorney with all relevant information, including home insurance details, property taxes, liens, mortgage agreements, marital debts, and assets. The more prepared you are, the more secure your financial future will be. Understanding where every dollar is allocated will help you make informed decisions and minimize unnecessary stress during an already uncertain time. Your financial standing significantly influences whether you decide to keep, sell, or buy out the family home. Each option requires careful consideration, due diligence, and financial planning.

Affordability and objective decision-making are key to navigating this process successfully. Poor financial choices can have lasting consequences for both you and your former spouse, even after the divorce is finalized.

KEEPING THE HOUSE

Here is your proofread and refined version with improved clarity, readability, and flow: When divorcing couples have school-age children, they often choose to let one spouse remain in the home to maintain stability in the children’s routines, school attendance, and social

relationships. This arrangement can be structured through a written agreement between the spouses. Clearly defining the division of home expenses and mortgage payments—either by percentage or mutual agreement—helps ensure financial responsibilities are met while allowing the family to focus on what matters most: the children. A well-drafted, signed agreement—preferably facilitated by a mediator—can prevent future disputes over home maintenance, expenses, and the eventual sale of the property, whether to the residing spouse or an outside buyer. This is why it’s essential to understand your financial position and what each spouse can realistically contribute. If one party fails to make their share of payments, it can negatively impact both spouses' credit scores and complicate the home's future sale. If both spouses can demonstrate they have the financial means to sustain this arrangement, it may be a viable option. Some couples even choose to remain in the home as roommates. This could be due to financial constraints or a desire to ease the children's transition. However, once one spouse moves out, they will face additional financial obligations when securing new housing, so careful consideration is necessary before committing to this option. That said, emotional attachment can cloud financial judgment. Some spouses are not just tied to the home for the children's sake but because it represents a sense of stability and a connection to a happier time. They may believe that keeping the home equates to "winning" the divorce, even if doing so leads to financial hardship. The reality is that unforeseen or unbudgeted expenses can strain an already tight budget. Being realistic about long- term affordability is critical.

SELLING THE HOUSE

For most divorcing couples, selling the house is the most practical solution. Selling a home is a complex and time- consuming process even under normal circumstances, and the emotional stress of divorce can make it even more overwhelming.

LEGAL CONSIDERATIONS

The dissolution of a marriage requires the division of marital property. Regardless of whose name is on the title, both spouses are typically entitled to an equitable share of the home’s value. Some couples have legal agreements in place that simplify property division, while others may use mediation to reach a fair settlement. If negotiations fail, the courts may need to intervene and decide the division of real property. As always, legal advice is crucial—this book is not a substitute for professional legal counsel. Many couples purchase a home based on a two-income household, covering mortgage payments, utilities, maintenance, and unexpected repairs. After a divorce, neither spouse may be in a financial position to assume full responsibility for the home. The most common reason for selling is to prevent mortgage default, which can have long-term credit consequences. Selling before the divorce is finalized can also offer financial benefits. Married couples who sell may qualify for the $500,000 $500,000 capital gains tax exclusion, whereas a divorced individual selling alone is typically eligible for only 50% of that exemption. Additional tax benefits may apply when substantial equity has accumulated over time. A tax professional or attorney can help determine the most advantageous time to sell.

THE EMOTIONAL SIDE OF SELLING

If the marital home has been the center of family life, it may serve as a constant reminder of what once was and is no longer. While sentimental attachment can be strong, lingering in the past can make moving forward more difficult. Selling the home allows both spouses to receive their share of the proceeds, make a clean break, and start fresh. Once the decision to sell is made, there is a long list of tasks to complete—staging, repairs, listing, and negotiations. These responsibilities are challenging under the best of circumstances and are often made more difficult by the emotional weight of divorce.

LIABILITY CONSIDERATIONS

One of the most compelling reasons to sell the home is liability.

There are ways for one spouse to retain the home while the other moves on, but these options come with risks. One common approach is an equity buyout, where one spouse keeps the home and compensates the other for their share of the equity.

THE BUYOUT

If one spouse is in a financial position to remain in the home, it may be easier to buy out the other’s share of the property, which would entail refinancing the home. The real challenges come in working out the details. There could be disagreement about the selling price or the appraisal value. Or, the equitable division of the property may not meet expectations. Other questions that arise include the possibility of giving up marital property rights in exchange for other assets, like investments. The ex-spouse may lose out on future appreciation of the house. It is crucial to know that questions like these will arise when it comes to the division of property in a buyout situation and that you have to be prepared to address them. Refinancing the home in one spouse’s name means not only settling the previous loan but paying the selling spouse their portion of the buyout. As an example, if the principal balance owed is $500,000, and there’s another $500,000 in equity, one- half of the equity ($250,000) would be due the selling spouse, and $500,000 would be required to pay off the principal. The refinanced loan would have to be at least $750,000 (the sum of the principal balance and the selling spouse’s equity share). If the house value has appreciated, who is entitled to the equity? What if the property is appraised lower than the current loan? All scenarios must be considered before deciding on a buyout. Again, knowing your financial standing before filing for a divorce is paramount.

CO-OWNERSHIP

If you or your spouse want to keep the house and buy out the other, but need time before this can be accomplished, co- ownership is a possibility. However, maintaining a clear channel of communication with the ex-spouse is a major part of co- ownership and one of the most difficult to achieve because it requires a lot of mutual trust, something that is typically lacking in most divorce scenarios. The goal is to move forward, so any concessions made between the spouses benefit not only both parties but especially the kids. Maintaining a civil, business-like relationship in front of your children will help them maintain stability and keep them from moving away from their home, when they’re already adjusting to a lot of change. If one of the spouses can occupy the home with the children and make the mortgage payments until they can manage a buyout and become the sole owner, it’s a win- win. The drawback to this type of arrangement is the negative consequences if the spouse in residence defaults on mortgage payments. Both parties are still responsible, and missed payments will affect both spouse’s credit scores. Moving forward with a new life can be tricky in a co-ownership agreement because consistent communication is necessary, and that isn’t always (or even usually) easy for divorced couples. House payments, insurance premiums, utilities, and necessary repairs are guaranteed financial obligations. What if the utilities are shut off due to nonpayment? What if the home heating and air-conditioning system terminally fails? What if you moved two hours away and your ex-wife needs you to help with a fallen tree because they can’t afford to pay someone to dispose of it? What if the resident spouse has to move out because they cannot afford to stay? What if the resident ex-spouse files bankruptcy and risks losing the house? These are all very real possibilities.

Co-ownership must be considered carefully, and a

knowledgeable attorney dedicated to protecting your family’s well-being will be your best source for guidance on the complexities that may arise. An agreement can be created to address all the obligations mentioned previously and protect both parties at the same time. No matter the option you choose, the mortgage must still be paid. Selling is the only alternative if neither of the spouses can afford the home on a single income. A short sale is possible if the home is going into foreclosure. You can come to an agreement with your lender to sell the home for less than is owed. Divorcing couples with good credit may find more favor with their mortgagee to obtain permission for a short sale. Walking away from your home and mortgage is not tolerated by the courts. The lender will add to the complications of your divorce by taking legal action to receive the remaining balance. You can find yourself in court if you or your spouse is uncooperative or is demonstrating an obstructionist attitude, which will cost more time and more money. Many divorcing couples end up using up what equity they had in their marital property on legal and court fees. Refusing to sign papers to sell the home or refusing to help pay for the mortgage will give a judge no other option than to order the home sold on the court’s terms. When a divorce action is filed, an automatic temporary restraining order can be issued to prevent spouses from selling or borrowing against marital property. Discuss this option with your lawyer to make sure your stake in the marital property is protected. Less than one-third of divorces end up in court due to disagreements over property division, but if you’re in that unfortunate one-third, going to trial doubles the cost of the divorce. An average divorce costs $11,000 if settled out of court. That amount will at least double if you have to go to court

for resolution, which will take a serious bite out of your home’s equity. Many divorcing couples who want to limit legal fees as much as possible, as well as the time it takes to settle, choose to sell their home. Surveys show that couples who resolved their property issues without court intervention completed the divorce in under a year. Those who could not agree and went to trial had to wait an average of 15 to 16 months. Some states require divorces to be resolved within a year, but dockets are full in most states, which causes long wait times for a divorce trial. While you’re waiting for the trial date, the mortgage still has to be paid, as well as utilities, insurance, and property taxes. The rest of this book will expand upon the benefits of marital agreements that help sell the home, the importance of having realistic expectations regarding the value of your home, and how choosing a real estate agent who has experience working with divorcing couples may be your greatest asset in the sale of your home.

CHAPTER 3 Marital Settlement Agreement eement

One of the most effective ways for divorcing couples to move forward is to separate emotions from the sale of the home and approach it as a business transaction. Since the marital home is often the largest asset in a marriage, it also carries the greatest financial risk. Careful consideration must be given to securing settlement terms that protect both parties, particularly the spouse who is leaving the home. When drafting the marital settlement agreement, your attorney should clearly define financial responsibilities, including who will cover the mortgage, homeowner’s insurance, utilities, and maintenance costs. Establishing these terms upfront helps prevent future disputes and financial complications.

MANAGING THE SALE OF THE MARITAL HOME

If the spouse occupying the marital home is responsible for listing, showing, and selling the property, the other spouse may still be obligated to contribute to mortgage payments and home maintenance costs. If the occupying spouse fails to make a reasonable effort to sell the home, the marital settlement agreement should include a clear timeline for the sale. Additionally, it should outline contingency plans in case the home does not sell within a specified period or if one spouse fails to meet financial obligations. Consult your attorney to establish appropriate contingencies tailored to your situation. Additional expenses—such as repainting, landscaping, or replacing appliances—should also be addressed in advance. The agreement should provide guidance on how to handle unexpected issues that arise during the selling process, such as structural problems discovered in a home inspection. Ex-spouses may agree to share expenses for a set period before the home is sold, but quick, emotionally driven decisions can lead to financial pitfalls. By maintaining a businesslike approach and focusing on the goal of selling the home, both parties can move forward more efficiently.

REASONABLE AND REALISTIC EXPECTATIONS

The marital home is often the most valuable asset in a divorce, making its division a major source of contention. If additional properties—such as vacation homes or rental properties—are involved, they will also need to be valued and factored into the settlement. Whether the property division follows an equitable or equal split, determining an accurate market value is essential. Several valuation methods can help assess the worth of the marital home. These approaches, commonly used in property settlements, may differ from a homeowner’s personal perception

of the property's value.

COMPARATIVE MARKET ANALYSIS

A comparative market analysis (CMA) is conducted by a real estate agent and provides an estimate of a home's value based on recent sales of comparable properties in the area. Adjustments are made for differences such as lot size, amenities, and upgrades.

BROKER PRICE OPINION

A broker price opinion (BPO) is another valuation method typically requested by mortgage lenders. It is less detailed than a professional appraisal but more comprehensive than a CMA. There are two types of BPOs: Drive-by BPO – An exterior evaluation based on visible property conditions. Interior BPO – A more detailed assessment that includes interior features and conditions. While a BPO is a useful tool, it should not replace a formal appraisal if legal proceedings require a definitive market value.

COST APPROACH

The cost approach determines a property's value by estimating the cost to rebuild it from scratch, subtracting depreciation, and factoring in land value. This method is commonly used for new construction but is less relevant for resale properties.

PROFESSIONAL APPRAISAL

A professional appraisal is often required by courts when dividing marital property. Some states mandate that a judge independently determine fair market value, while others allow

spouses to present their own appraisals.

However, appraisals do not always reflect hidden issues that could affect a home’s value. Problems such as foundation damage, plumbing failures, or termite infestations can significantly impact a sale. To get a comprehensive assessment of a property’s condition, a home inspection is advisable.

THE IMPORTANCE OF A HOME INSPECTION

A home inspection provides a thorough evaluation of a property's structural integrity, electrical systems, plumbing, roofing, and overall condition. While most buyers require an inspection before closing, conducting one in advance offers two key benefits: Both spouses gain clarity on potential issues, allowing them to negotiate repair costs and avoid last-minute surprises. Buyers may feel more confident in the home’s condition, increasing trust and streamlining the sales process. While the seller typically does not pay for a buyer’s inspection, investing in a pre-listing inspection can help prevent costly delays and strengthen negotiations.

FINDING THE RIGHT REAL ESTATE AGENT

Selecting the right listing agent is crucial. While you may know a real estate agent personally, it's important to choose someone experienced in working with divorcing couples. Some real estate professionals specialize in divorce sales and understand the unique financial and emotional dynamics involved. A real estate divorce specialist has training in legal and tax aspects of divorce-related property sales. If the home sale is not

handled correctly, one or both spouses could face mortgage ineligibility for years. A skilled agent will provide step-by-step guidance to protect both parties' financial interests. What defines a good real estate agent? For divorcing couples, it means finding someone who is: Experienced in divorce sales – Skilled at negotiating between spouses who may have conflicting interests. A strong communicator – Able to mediate between parties who may not be on speaking terms. Impartial and professional – Neutral, ensuring fair treatment of both spouses. Discreet – Does not disclose details of the divorce, as buyers may try to take advantage by negotiating a lower price. Not all agents are willing to take on divorce-related listings, as these transactions are often more complex than standard home sales. Look for an agent who has experience in handling emotionally charged situations and can maintain professionalism throughout the process.

CHOOSING THE RIGHT AGENT

When evaluating real estate agents, consider the following factors: Market expertise – Are they up-to-date on local real estate trends? I ndustry connections – Do they have a network of home inspectors, contractors, and brokers?

Negotiation skills – Can they effectively handle both parties' interests? Reputation – Do they have strong client testimonials and reviews? Objectivity – Are they able to work with both spouses without bias? A professional agent must wear many hats—marketer, negotiator, consultant, and legal resource. Hiring an agent who understands divorce-related property sales can make the process smoother and ensure a fair outcome. Once you’ve chosen your agent, trust their expertise. They are there to help you, not take sides. Selling a home during a divorce is stressful, but keeping emotions in check and following professional guidance can help both spouses transition successfully.

MOVING FORWARD

The next sections of this book will cover:

How to prepare your home for sale.

Avoiding costly mistakes in negotiations.

Strategies for maximizing the value of your home in today’s market. Navigating a home sale during a divorce is challenging, but with the right knowledge, planning, and professional support, both spouses can move forward with financial security and peace of mind.

CHAPTER 4 The 80/20 Rule

In 1906, Italian economist Vilfredo Pareto made an intriguing discovery. He observed that 20% of the pea pods in his garden contained 80% of the peas. This simple observation led him to investigate whether the same pattern applied elsewhere. One of his earliest findings was that 20% of the people in his area owned 80% of the land. Through further research, he discovered that this ratio appeared consistently across various aspects of life. His findings became known as the Pareto Principle, or the 80/20 r 80/20 rule.

For example:

80% of your income comes from 20% of your work.

80% of a business’s revenue is generated by 20% of its customers.

80% of your value to an employer stems from 20% of your efforts.

BUYER’S STORY

When Vince and Sue were searching for a new home, Vince had one non-negotiable requirement—an ocean view. They toured numerous desirable properties but struggled to find the right fit. Some were overpriced, while others had obstructed views. After nearly a year of searching, they finally found an older home just a short walk from the ocean. 19

The neglected exterior and dated interior weren’t promising at first, but when Vince stepped onto the third-floor balcony off the master suite, he was sold. Any concerns about wall color or outdated fixtures faded away as he took in the breathtaking view. Every morning, he could wake up to the sunrise over the ocean. What 20% of the home captured Vince and Sue’s attention? The stunning third-floor ocean view.

SELLER’S STORY

When Cam and Kate listed their home, they knew they needed a buyer who wouldn’t mind that the house was on an unpaved road. Though over a decade old, the home’s interior had been refreshed with neutral wall colors and new carpeting, giving it 20

a modern appeal. The towering trees and well-established yard added to its charm. One prospective buyer had also considered another home nearby, which featured a koi pond, a patio, and a similar interior layout. However, that house was on a busy street. What 20% of the home made the difference for Cam and Kate’s buyer? The secluded, country-like setting. The 1.8-acre property, surrounded by pastures and grand oaks, provided the privacy and tranquility the buyer was looking for.

CHAPTER 5 Relating the 80/20 Rule to Home Selling

UNDERSTANDING THE 80/20 RULE IN HOME SELLING

Applying the 80/20 rule can save you time and frustration when selling your home. Instead of trying to sell buyers on every aspect of the property, focus on the 20% of features that make it stand out. While the remaining 80% still influences a buyer’s decision, it doesn’t require the same level of investment in time or money to improve. Your home’s selling point won’t be the standard features it shares with others on the market. Instead, highlight its unique attributes to capture buyers' attention. THE 80/20 RULE IN ACTION: BUYERS ARE SEARCHING FOR UNIQUE FEATURES Spotlighting the unique features of your home helps attract serious buyers who are willing to pay the asking price. What does your home offer that others in the area do not? A beautiful patio, a scenic view, or lush landscaping may be the key to grabbing a buyer’s interest. Whatever makes your home special, highlight it, and you’ll increase your chances of selling quickly.

POTENTIAL UNIQUE FEATURES 22

Hilltop views – A high vantage point that offers breathtaking scenery. Wildlife – Many buyers appreciate the beauty of nature and enjoy watching birds, deer, or butterflies from their back porch. Sunrise or sunset views – Stunning natural displays can be a major selling point. A beautiful patio – Outdoor living spaces are highly desirable, especially if they are well-designed for entertaining. Location, location, location – A safe neighborhood, good schools, easy commutes, and nearby amenities can make your home more appealing. A buyer once paid extra for a townhouse simply because of its prime location within a complex. Most units had no private yards, but this particular townhouse bordered a half-acre shared green space. Because so few units shared this feature, the seller was able to command a higher price. Another townhouse seller in the same complex leveraged a different advantage. His property backed up to a lake and fountain, making it highly desirable to buyers looking for a serene setting. This feature helped him sell his home quickly and for a premium price. A private location – Homes set back from the road, adjacent to an empty lot, or surrounded by trees attract buyers seeking peace and quiet. A big, shady backyard – A larger backyard, especially with mature trees, can be a major draw for families and pet owners. A fenced-in yard – Buyers with children and pets often prioritize homes with secure outdoor spaces.

Additional unique attributes – A finished basement, spacious attic, oversized garage, swimming pool, or hot tub can also be major selling points.

CAPITALIZING ON THE 20% DIFFERENCE AND MARKETING YOUR HOME’S BEST FEATURES

Following the 80/20 rule helps you attract serious buyers, reducing wasted time on unnecessary showings or lowball offers. By identifying and emphasizing your home’s standout features, you can market it more effectively and increase your chances of a successful sale. Compare your home with others in the neighborhood to see what makes yours unique—and make sure those features shine.

If your home’s standout feature is a backyard pool, make sure it sparkles. If it’s a veranda-style porch, clean off the grime and ensure it overlooks a well-manicured backyard. If you have a garden, tend to it daily so it’s the most beautiful one on the block. Every home has potential—it just takes a little creativity and effort to make its unique features shine and attract the attention the 80/20 rule demands.

HOW THE 80/20 RULE APPLIES TO HOME SALES

An out-of-town buyer with no specific requirements contacted a real estate agent to view available homes. The agent spent the day showing various properties, but the buyer repeatedly made offers 10% to 20% below asking price and refused to budge. As the day wore on, the agent's chances of finding the right home seemed slim. Their last stop was a house with an outdated exterior and an unkempt yard. Like many of the homes they had seen that day, it shared 80% of the same features. However, as soon as the buyer stepped inside, everything changed—he was ready to purchase the home at full asking price. What set this house apart? The kitchen, bathrooms, and bedrooms didn’t impress him. To him, a bedroom was just a bedroom. But the home’s defining feature captivated him. The house sat atop a hill with a stunning view framed by a large picture window. As they entered the great room, the sun was setting behind the distant tree line. That view sold the buyer instantly. Everything else in the house could be updated, but this one feature made it stand out. The buyer's decision to purchase was based entirely on the 20% of the home’s features that mattered most to him. The power of the 80/20 rule was undeniable. In some cases, the 80/20 rule can help a home sell without even requiring a showing. Consider the case of a brand-new, custom- built home that had been on the market for over seven months without a single offer.

Unlike the previous home, this property wasn’t unattractive. It

was modern, well-built, and move-in ready. Yet, despite its quality, buyers showed no interest. The builder hired a real estate agent who understood the importance of identifying a unique selling point. The agent toured the home and discovered what made this property different from its competition: it sat on a beautiful five-acre lot, while other homes in the area were built on one- to two-acre lots. Not only was the yard significantly larger, but it also provided more privacy than other homes on the market. Recognizing this, the agent adjusted the marketing strategy. Instead of emphasizing the house itself, the listing showcased the five-acre lot as the key selling feature. Interest in the property skyrocketed. A buyer from 1,000 miles away became so enamored with the listing that he submitted an offer sight unseen, afraid someone else would purchase it before he could. The home, which had languished on the market for nearly eight months, sold within 45 days. The builder was amazed. The home itself hadn’t changed—but the way it was marketed had. That small percentage of the home’s features was the true selling point. By leveraging a home’s unique selling feature, sellers don’t have to settle for less than their asking price. Buyers who fall in love with a property rarely offer less. By shifting the focus to the five-acre lot, the real estate agent transformed an unsellable home into a highly desirable one.

CHAPTER 6 Creating Curb Appeal b Appeal

CURB APPEAL - The attractiveness of a property and its surroundings when viewed from the street. Whether browsing online photos or driving past, home shoppers decide within seconds whether they want to see more. First impressions are powerful, and as the saying goes, you never get a second chance to make one. Creating strong curb appeal is crucial in generating interest in your home. A well-prepared exterior can even attract buyers who may not have been initially drawn to your home’s written description. Try this experiment: drive around your neighborhood and note which homes catch your eye. Clean yards and well-maintained exteriors will stand out far more than those with peeling paint, broken shutters, overgrown grass, or neglected landscaping. The exterior of your home should serve as an invitation to come inside. Potential buyers are drawn to welcoming entries and uncluttered yards. If you see a home with dead shrubbery and a weather-worn exterior, you might assume the interior is just as neglected. This is why curb appeal matters. Take a step back and look at your home with fresh eyes. What needs attention? Simple tasks like weeding, trimming, and window washing can improve the appearance of your home in just an afternoon. Low-cost improvements—such as power-washing the house and walkways, repainting trim, and adding fresh landscaping—can significantly boost curb appeal. The goal is to attract buyers and 27

maximize your home’s value. Most buyers aren’t looking for a fixer-upper unless they expect to pay below market value. If your landscaping is neglected, your exterior paint is faded, or your yard is unkempt, potential buyers may not even stop to see what’s inside. Don't let poor curb appeal turn buyers away before they’ve had a chance to explore your home’s true potential.

LOOK AROUND YOUR YARD AND MAKE A LIST

Take a step back and assess your home’s exterior with a critical eye. What needs attention? • Are your shrubs, trees, flower beds, and walkways tidy? • Is there any trash, clutter, or general disarray? • Do all exterior features (front lights, garage doors, porch rails, etc.) function properly and look well-maintained? • Could outdoor elements, such as patio furniture or decks, benefit from a deep cleaning or a fresh coat of paint? 28

Making these necessary improvements will enhance your home’s curb appeal, drawing in potential buyers who are captivated by the exterior and eager to see what’s inside. Preparing a home for sale requires effort, and the to-do list can seem long. Anyone can list a house, but selling it quickly—and for the best possible price—requires careful preparation.

FOLLOW THESE GUIDELINES TO IMPROVE YOUR CHANCES OF A QUICK AND PROFITABLE SALE

Cut the grass. Keep your lawn neatly trimmed, and edge sidewalks and driveways. Remove stubborn weeds along pathways, near the house, and around trees. Repair bare patches with grass seed or ground cover, or use a turf dye spray to disguise pet-related spots. Trim the hedges. Overgrown hedges make a home look neglected. Keep them neatly shaped for a polished appearance. Add colorful landscaping. Plant flowers for visual appeal, and spread fresh mulch or pine straw. Consider adding solar path lights to enhance curb appeal, especially in evening photos. Give it a bath. Wash windows, power-wash the house, driveway, and pathways, and clean gutters. Keep all walkways clear and tidy. Make sure garage doors and windows are spotless as well.

CREATE A GRAND ENTRANCE

The front door sets the tone for a buyer’s first impression. It’s more than just an entryway—it should feel welcoming and secure.

• Upgrade the doorknob. A buyer’s first physical interaction with your home is the front door handle. If it’s worn or loose, replace it with a sturdy, stylish handle and deadbolt combination. A high-quality entry set can cost as little as $50 and significantly improve the home’s perceived value. • Check for security. A flimsy lock or outdated handle can make buyers feel uneasy, even if they can’t pinpoint why. A secure entryway creates confidence. • Refresh the front door. If the paint is faded or peeling, give it a fresh coat in a complementary color. A well- maintained front door makes a statement. Replacing a wooden door with a steel entry door can yield an average 91% return on investment (ROI). • Replace worn-out kick plates. A simple, affordable update that adds a fresh look to your entryway.

OTHER WAYS TO ENHANCE CURB APPEAL

• Create symmetry. Balanced landscaping and even trim work create a pleasing aesthetic. Avoid lopsided bushes or uneven walkways. • Invest in a new mailbox. Choose one that complements your home’s style. • Improve outdoor lighting. Solar-powered lamps provide beauty and safety without requiring wiring. • Add instant color. Use flower boxes or raised beds for an inexpensive yet eye-catching enhancement. • Tidy up your landscape. Eliminate weeds and spread fresh mulch for a well-kept appearance. • Incorporate architectural details. Consider adding

decorative molding to doorways or around windows. • Maintain shutters and trim. Repaint as needed to keep them looking fresh and polished. • Clean and repair fences. Ensure all gates, arbors, and fence panels are sturdy and visually appealing. • Keep gutters and downspouts in t ts in top shape. Repaint to eliminate rust spots or replace damaged sections. Buyers notice signs of neglect. • Ensure easy access to your home. Remove obstacles like coiled hoses or overgrown bushes from walkways. • Refresh railings. A new coat of paint or stain can make railings look brand new. • Update exterior paint. If a full repaint isn’t needed, at least touch up trim and doors. • Power wash the home. Sometimes, a deep clean can be just as effective as new paint—at a fraction of the cost. • Consider adding stone veneer. A small investment in stonework can modernize your home’s exterior. • Upgrade your doorbell. A smart doorbell with a camera and speaker can impress security-conscious buyers. Curb appeal plays a crucial role in selling your home quickly and at the best possible price. A well-maintained exterior can spark interest before buyers even step inside.

CHAPTER 7 Staging with Purpose

Staging a home is often referred to as “real estate enhancement” because of its powerful effect on sales. Home staging prepares your property for the market by making it more attractive to a wide range of buyers. This can lead to a faster sale and a higher selling price. This strategy works in any real estate market and applies to all types of homes—single-family houses, townhouses, condos, and apartments. Sellers and agents who use home staging increase their chances of selling for top dollar. While staging requires extra time and effort, it is one of the most effective marketing tools available for selling homes at a premium price. In today’s competitive real estate market, sellers must be proactive. Staging creates an inviting, eye-catching space that helps buyers envision themselves living in t g in the home. This has proven to be one of the best investments of time and effort when selling a property.

THE POWER OF STAGING A HOME

According to the National Association of REALTORS Profile of Home Staging Study: 81% of buyers’ agents said staging made it easier for buyers to visualize the property as their future home. 48% of sellers’ agents said staging significantly reduced time on the market. 32

34% of agents said staging can increase the offer price by as much as 10%. Homes staged before listing sold 79% f 79% faster than homes staged after listing.

THE SECRET TO SELLING FOR MORE MONEY

A real estate agent unknowingly discovered the power of staging while working with a wealthy executive who wanted to sell his condo. The seller had one request—the agent had to stage the home before listing it. The agent was skeptical but agreed. They listed the condo for $1.1 million, even though two similar condos in the same complex were listed at $979,000 a $979,000 and $939,000 d $939,000. The agent doubted they would sell at such a high price, especially since the condo had no unique features and was located on the sixth floor of a 10-story complex. As showings progressed, most buyers left unimpressed, and many agents criticized the high price. A similar condo had sold two-and-a-half months earlier for $150,000 l $150,000 less, and another unit sold soon after for $950,000 $950,000. Four months later, however, a buyer walked in and fell in l l in love instantly. He made an offer before even completing the tour. The condo sold for $1,050,000 $1,050,000, setting a record price for the complex! What made the difference? Staging. The condo had the same layout as the others but looked move-in ready and felt like home to the buyer. Following this experience, the real estate agent studied the impact of home staging on sales—and saw firsthand how staging

can dramatically increase selling prices.

WHAT DO BUYERS WANT?

Most home shoppers are looking for a fresh start. Whether upgrading, downsizing, or relocating, they want a home that feels move-in ready. Buyers need to imagine themselves living in t g in the home, and staging removes distractions while showcasing the best features of the space. Every room should serve a clear purpose and reflect a clean, modern, and well-maintained aesthetic.

Removing dated wallpaper Adding fresh paint in neutral colors

Updating outdated light fixtures and hardware Replacing stained carpets or popcorn ceilings

These simple updates increase a home’s appeal by 75% without requiring high-end renovations.

BUYER EXPECTATIONS ARE INFLUENCED BY TV SHOWS

Real estate TV shows have raised buyer expectations. According to NAR: 55% of agents say TV shows create unrealistic expectations about home design. 10% of buyers feel disappointed when homes don’t look like the ones they’ve seen on TV. Buyers expect neutral color palettes, modern updates, and clutter-free spaces. Homes that meet these expectations tend to sell faster and for higher prices.

NEUTRALIZE FOR MAXIMUM APPEAL

One of the most effective ways to appeal to buyers is to remove distractions and use neutral colors.

A fresh coat of paint instantly brightens and modernizes a home.

Soft grays, warm beiges, and off-whites create a clean, inviting atmosphere. Using the same color in adjacent rooms creates seamless flow and makes the space feel larger. Matching window treatments to wall colors further enhances the illusion of space. By staging strategically and presenting a home in i e in its best light, sellers can increase buyer interest, speed up the selling process, and maximize their home’s value.

FOCUS ON FURNITURE—LESS IS MORE

Staging is the art of creating a visually inviting space. As a homeowner, you will take your furniture with you when you move—but until then, your personal style will shape how your home is presented to buyers. In the following pages, we will discuss depersonalizing your home, but first, let’s focus on creating space by minimizing furniture. Buyers are drawn to spacious, well-lit homes and discouraged by dark, cluttered spaces. Removing excess furniture allows buyers to move freely and helps them envision how they would use the space. • Remove unnecessary furniture and store it elsewhere while your home is on the market. • Ensure that closets, pantries, and storage spaces are organized and free of clutter. • Keep only the essentials for daily living and store personal items—such as photo albums, keepsakes, and rarely used appliances—out of sight. A well-staged home highlights space and functionality. Buyers prioritize storage, so making your home feel open and well- organized will generate greater interest.

STRATEGIC FURNITURE PLACEMENT

Furniture placement can highlight key features of your home. For example, positioning a seating arrangement in front of a fireplace naturally draws attention to it. Avoid pushing furniture against the walls—floating pieces in the center of a room often makes a space feel larger and more inviting.

Every room should demonstrate both function and appeal. An

empty room used for storage should be transformed into a space buyers can envision using. Consider staging it as:

• A home office with a desk and chair. • A reading nook with a recliner and a lamp. • A workout space with neatly arranged exercise equipment.

If needed, repurpose furniture from other areas of your home to stage underutilized spaces. Every room should have a clear purpose and allow for natural traffic flow so buyers can browse with ease.

EMOTIONAL CUES

Once each room has a defined purpose, the next step is creating atmosphere. Small decorative touches make a home feel welcoming and desirable: • Add greenery, flowers, or scented candles to bring life into the space. • Use artwork and mirrors to define walls and frame a room. • Layer textures (such as throw pillows, blankets, and rugs) for warmth. A bedroom with only a bed, a single pillow, and a bare lightbulb will feel cold and uninviting. But add a nightstand with a lamp, a vase of fresh flowers, and a rocking chair with a cozy throw, and suddenly, the room has charm. Color coordination is another simple but effective staging technique. Use complementary colors and textures to create a unified look. If you want to draw attention to a focal point, such

as an accent wall or built-in shelving, use bold color splashes in artwork or décor. FINDING THE BALANCE BETWEEN STAGING AND LIVING While it’s important to stage your home thoughtfully, you still need to live in i e in it. You can decorate tastefully for the seasons without diminishing its appeal. The key is to keep your home clean and free of clutter while making it feel warm and inviting. Even small adjustments can greatly impact the final sale price of a home. Effective staging is one of those things!

STAGING OPTIONS

You have two options when it comes to staging:

Do it yourself.

Hire a professional home stager.

If you’re considering hiring a professional, I’d be happy to refer you to trusted stagers who specialize in preparing homes for sale. These experts can transform your home from just “another listing” into a property that attracts interest, generates multiple showings, and ultimately receives strong offers.

CHAPTER 8 Upgrade with ROI in Mind OI in Mind

MAKING SMART UPGRADES TO MAXIMIZE VALUE

Upgrading your home can be as simple as replacing the front door handle or as complex as remodeling a kitchen or bathroom. When preparing to sell, it’s essential to consider market value and return on investment (ROI) before making any major updates.

FOCUS ON COST-EFFECTIVE IMPROVEMENTS

Not all home upgrades will yield a dollar-for-dollar return. In real estate, the general rule is “less is more.” Minor improvements often provide better ROI than full-scale renovations. For example, HGTV reports t ts that minor bathroom upgrades—such as recaulking, replacing outdated fixt d fixtures, upgrading the shower door, and applying a f g a fresh coat of paint—can yield a 102% ROI. On the other hand, major remodeling projects often have lower returns. If your home is worth $1.2 million and you spend $75,000 remodeling the kitchen, it’s unlikely that the home’s value will increase by the full amount. Industry estimates suggest that a kitchen remodel typically yields only a 50% r y a 50% return on investment. Smaller updates—like swapping out dated light fixtures, cabinet hardware, and faucets—can enhance appeal without excessive cost.

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