Liz May - HOW TO SELL HOMES FAST FOR TOP DOLLAR

HOW TO SELL HOMES FAST FOR TOP DOLLAR

Liz May

Table Of Contents

Introduction

First Steps to Home Selling

Pareto's Principle

Creating Curb Appeal

Staging with Purpose

Upgrading with ROI in Mind

The Three Ds

How to Market Your Home

Common Seller Mistakes

10. Learn from Other's Mistakes

11. Finding Buyers

12. Be a Power Negotiator

13. The Dos and Don'ts of Negotiating

14. Bargaining Chips

15. Why Hire an Agent?

About LIZ MAY After a long career in media, Liz May realized she wasn't achieving her financial goals. One day, while commuting to work in New York City, it occurred to her that she was missing out on a couple of her favorite things: real estate and horses. She had long believed in the benefits of real estate ownership as a path to wealth. Although she owned her condo and enjoyed a fulfilling professional life, she recognized it was time to seek greener pastures... literally. After all, she was a small-town girl. Liz and her husband moved to the picturesque town of Southern Pines, North Carolina. They hired a buyer's agent who guided them through several challenging negotiations to secure a home they both loved. She also returned to one of her favorite hobbies: horses. She discovered a scruffy, skinny horse that needed a good home and worked for weeks to nurse him back to health. Then, off they went into the woods for rides. As horse lovers will tell you, sometimes horses just come into your life, which is how there are now two horses at Liz's place. Liz recognized that her former career equipped her uniquely to assist those looking to buy or sell their homes and farms. Consequently, she undertook extensive training, passed the state exam, and obtained her North Carolina real estate broker's license. She brought years of negotiation skills, marketing and sales experience, public speaking, relationship building, and mediation training to her new role as a licensed real estate broker. As her career advanced, Liz found her stride working with home and horse farm buyers in the charming town of Southern Pines, its golf-friendly neighbor Pinehurst, and the surrounding communities of Vass, Aberdeen, Whispering Pines, Carthage, and Jackson Springs.

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Throughout her career in real estate, Liz has earned numerous accolades, including: • Achieving Certified Real Estate Negotiator credentials (CREN) • Taking Broker-in-Charge training and becoming a BIC • Opening her firm that specializes in Residential and Equestrian properties Liz currently lives in Southern Pines with her husband Kevin, cats Luna, Baci, and Leo, and horses Marty and Jingle. In her free time, you'll likely find her at the barn with her horses or out on the trails in the beautiful Walthour-Moss Foundation, working on her (admittedly terrible) golf game or visiting her brother Wayne's farm in Vass. ( She convinced him to move from Oregon to be closer to her family). Liz aims to provide the highest level of service to her clients and takes deep pride in helping them achieve their real estate goals.

Testimonials & Reviews for Liz May Here are some reviews from clients I have helped buy or sell a home, and what they said about working with me:

Liz had a tough job, but she did it! We're so happy!

Liz went above and BEYOND when it came to my expectations of a realtor. She puts in overtime to ensure the client is getting their dream home and makes the process effortless. She not only showed me houses that met my needs but gave me pros and cons of each home AND the surrounding location. She took full details of my desires and "must-haves" in a home and absolutely nailed it. I was blessed to have her guide me through the home- buying process and 100,000% recommend her for anyone looking for a home in the area. When we were selling our farm, we were really nervous. Liz was there every step of the way. I’ve used Liz twice so far, and I was impressed both times. She helped us relocate from out of state. Her local knowledge helped me find a town and a home that was perfect for me.

Liz was great! Her perseverance got me the house!

We were moving to Pinehurst and didn’t have a lot of time to look at houses, having to deal with my employer’s relocation, and all of the other challenges that came along. But, Liz May went above and beyond to help us. Even now two years after the sale closed, I can still call her for business and service recommendations in the area and she is very happy to help.

Very attentive to concerns, details, and negotiations v

Selling our house was a daunting prospect. We literally put it off for years because we don't know how to make it happen. Liz made it easy. She came with written materials, examples of what marketing she put together for other homes she had sold and a list of helpful suggestions to maximize our profit. We had a unique property and she found us a buyer for more money than we thought we would get. Liz helped me through some tough negotiations when I sold my property. She helped me get a price and terms that I was comfortable with. I highly recommend her. Liz understands horses and horse property as she is a horse and farm owner herself. She knew what the selling features were for my farm and helped get it out there to the widest possible audience.

Liz is the first and only agent I would call

My experience with Liz May during the entire home-buying process, from start to finish, has been nothing short of exceptional. I'm self-employed and found it frustrating to find financing. Liz put me in touch with a lender that was so helpful. I'm in a house I love in Southern Pines and I can't tell you how happy I am.

Liz kept us calm throughout the process!

I got advice from Liz that helped me sell my house for good money. I really appreciated her input. He suggestions were on target. Liz found a way to effectively market our land. I'm so happy we used her services.

CHAPTER 1 Introduction

What is it about owning a home? The most significant investment most people make is in their homes. This makes selling a home—whether a single-family residence, duplex, or condominium—the largest and most complex transaction a person will ever undertake. It involves new terms and concepts, financial knowledge, and larger dollar figures than those people typically deal with. Many emotions can affect sound judgment. Many sellers think, "Surely, my home, where I raised my children and created so many memories, is worth more than just the bricks and mortar it contains." Real estate transactions involve numerous decisions and significant investments of homeowners’ time, energy, and money, and emotions often lead to complications in sales price negotiations. Even just discussing some of the numbers involved after the dollar sign can be emotional. The home seller’s objective is to find that home shopper who can’t resist purchasing your house for the highest price. To achieve this, you must provide potential buyers with an impressive home sales presentation that stands out against other homes currently on the market. It requires making a fantastic first impression, allowing buyers to feel like they are walking up the front walkway of their new home for the first time rather than visiting someone else’s. It’s all about falling in love at first sight, from the curb, in those initial seconds. Most sellers don't sell their homes alone. They prefer working with a comfortable, experienced real estate professional. This book aims to offer some of that comfort without the pressure of 1

an in-person sales pitch.

If you're looking to gain a better understanding of the home- selling process independently, this book is for you. I also offer practical insights on how to effectively market your home, avoid significant mistakes, and maintain the right focus. Use this book as your primary resource for information, strategies, and techniques that can help you sell your home quickly for the best price. Take time to explore the chapters and learn the secrets of successful home sellers. For instance, find out why comparable homes sell for significantly different prices. Be prepared to sell by understanding your home’s market value, determining the best listing price, mastering negotiation tactics, and identifying improvements that provide the best Return on Investment (ROI). I sincerely hope this book will help you maximize your time and efforts in selling your home. In Part 1, we examine the process and importance of preparing your house for sale, including how to present it to attract top offers, the “80/20 rule,” and which upgrades will significantly impact your ROI. Part 2 explores marketing your home, highlighting others' costly mistakes, how to avoid those pitfalls, and ways to find qualified buyers. In Part 3, we investigate the essential topic of negotiations—what to expect and how to conduct them—and conclude by examining what engaging a real estate professional brings to your real estate sale transaction. Once you understand the process, requirements, and tips, you'll realize that an experienced, financially savvy real estate professional can significantly reduce the time and increase the economic value of your transaction.

Studying this book is the first step to selling your home for the

best price in the shortest time. After you read it, I can help you with a Comparative Market Analysis and a step-by-step plan to sell your home for the best price possible.

CHAPTER 2 First Steps to Home Selling o Home Selling

Location! Location! Location! Location is undoubtedly the most critical factor in real estate and a key element in determining real estate prices. Both novice and experienced home sellers must understand the factors influencing a home’s price. Determining the selling price for your home is neither a straightforward formula nor entirely mathematical. Various factors contribute to this decision. Throughout this book, you will encounter examples of similar and comparably situated homes that sold for significantly different amounts, along with explanations for the differences. A calculated home value does not always align with your perception of your home's worth. Understanding this helps prevent overpricing, a MAJOR factor that leads to homes sitting unsold or lingering on the market. Familiarity with real estate terms market value, appraisal value, and assessed value can save you disappointment and frustration, allowing you, the home seller, to meaningfully engage in setting a home’s listing price. The most widely accepted definition of market value is “the most probable price that a property should command in a competitive, open market, under conditions necessary for a fair sale.” This essentially reflects a pre-negotiation perspective on the price a home should command in its local market, typically defined as its geographic area, like a suburb or neighborhood. The appraisal value is an evaluation of a property’s worth at a specific moment conducted by a professional appraiser. This appraised value plays a crucial role in loan underwriting, as it is 4

a key factor in determining how much money can be borrowed and under what conditions. For example, the loan-to-value (LTV) ratio is calculated based on the appraised value. When the LTV exceeds 80%, lenders typically require borrowers to purchase mortgage insurance, commonly known as PMI. The assessed value refers to the amount assigned by local or state governments for a specific property, often differing from the market value or appraisal value. This assessed value is the foundation for property tax assessments and when property taxes are levied. It is crucial to note that the assessed value of real property does not necessarily match its market value. Approximately 60% of properties in the U.S. are assessed at a value higher than their current market value. However, the opposite can often be true in our Sandhills region of North Carolina.

WHAT IS YOUR HOME WORTH?

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

PROFESSIONAL APPRAISAL

Nothing determines a piece of real estate's sale price except the price at which it sells. Houses are not identically priced cans of tuna on the grocery store shelf or shares of stock that are valued and traded daily on the stock exchange. Real estate appraisal, also known as property valuation, is the process of assessing the value of real property. This value is referred to as market value—meaning what a reasonable, willing

buyer would pay to a reasonable, willing seller for the property. Real estate transactions typically require appraisals because they occur infrequently, and each piece of real property has unique features and characteristics. An appraisal aids in various decision points. Sellers can use the appraisal as a basis for pricing, while buyers can rely on it to gauge their offers. Lenders utilize appraisals to determine how much credit to extend to their borrowers. Keep in mind that borrowers may need to provide additional cash if the appraisal comes in too low, which can sometimes jeopardize the deal.

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, the kind of structures present and how they were built • Improvements made • Comparable sales • Location (type of neighborhood, zoning areas, proximity to other establishments) • Age of property • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also important; however, because a property cannot change its location, upgrades or improvements to a residential property can often enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals with expertise in your region. His or her job is to determine an estimated value by inspecting

the property, reviewing the initial purchase price, and weighing it against recent sales with a similar purchase price.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation is often provided for free by real estate professionals, and it offers more detailed insights than automated online options. It delivers comprehensive data on houses sold in your area over the last six months, along with its final sale price. Additionally, it includes specifics about all the homes currently for sale in your area, including their asking prices. These homes represent your competition. The real estate professional will also answer any questions you may have and help you price your home realistically. Understanding how a home's value is determined requires considering the current market. By collaborating with a professional real estate agent, you can rely on proven expertise to market your home at the optimal listing price. I'm happy to provide you with a Comparative Market Analysis if you're selling your home or farm in Pinehurst, Southern Pines, Vass, Aberdeen, Carthage, West End, Pinebluff, Jackson Springs, or nearby areas in North Carolina. If you are located outside of these regions, I can help you connect with a qualified professional to assist you. Please refer to the last page of this book if you would like more information on how to request a free home valuation.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Previous discussions revealed that there is no definite certainty in determining a home's value. There can be significant discrepancies between the seller’s assessed price, the asking or listing price (market value), and the selling price (sale price).

Now, let’s explore what the homeowner/seller can do to attract offers at, or even above, the listing price in a competitive market. The seller’s time, effort, and investment are the most crucial aspects of the process. The seller’s commitment to properly preparing the home for presentation—and to maintaining that pristine condition for the duration of the sale—will significantly influence both the time it takes to sell the property and the final selling price. A market where homes typically sell within six months of listing is seen as balanced or neutral, indicating that many homeowners are selling and buyers are purchasing, resulting in neither group having an advantage. A variable, such as a major company entering or leaving the area, can shift the dynamics toward homeowners for a swift market or toward buyers for a slow market. In a quick market, the average selling time may be around 30 days, whereas a slow market could extend to ten months. Generally, any time frame below six months is identified as a seller’s market.

LIVING IN A FISHBOWL

Selling a house means keeping it in a constant “show-ready” condition, and changes in daily life come with the territory. Sellers often receive unexpected phone calls at all hours from potential buyers and agents wanting to show the home, along with frequent updates via phone, email, and text, plus show appointment scheduling messages from the listing agent. They will also likely handle repair and reconditioning appointments and inspections. The house may be photographed for online, periodical, or brochure presentations. There are multiple showings when the home first enters the market. Maintain your home in pristine condition for unexpected visitors—the ideal prospect might drop by at

dinnertime.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD

Children and pets can distract potential buyers, diminishing their experience of your home. It’s best to arrange for your children and pets to be elsewhere whenever possible. If you can't take your pets out of the house, at least keep them crated or leashed, and remove any toys or dog hair from the sofa. Ensure that any pet odors are eliminated, as they can be a significant turnoff for potential buyers. The dishes should be done, and the kitchen and bathrooms should shine. The pressure to show your home to everyone, even those who may only be mildly interested in looking (not necessarily buying), might stem from the belief that the more visibility your home receives, the faster and easier it will sell. Many real estate agents present their clients with numerous homes to review without a clear understanding of what the buyer truly desires. Low-interest traffic can be overwhelming and draining on the seller’s time, energy, and resources. Since a showing can take an hour or even longer, finding an interested buyer is what matters most. Your home will be shown to many more uninterested buyers than those genuinely interested. How many times will you have to show your home? Ideally, your property would only be shown to serious buyers. However, there are many “Sunday afternoon window shoppers" in the real estate business. That said, you shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the assistance of a qualified real estate agent help you tackle even the most intimidating tasks without unnecessary effort.

CHAPTER 3 Pareto's Principle

“Eighty percent of the results will come from just twenty percent of the action.” This is the Pareto principle, attributed to Italian economist and philosopher Vilfredo Pareto, who, in 1906, observed an intriguing correlation. He began work on the “80/20 rule” with the observation that 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation caused him to explore more examples of uneven distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He

investigated different industries and found that 80% of production typically came from just 20% of the companies. His findings led to the concept that 80% of results will come from 20% of the action. While it does not always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of the most reported software bugs cause 80% of

software crashes • 20% of patients account for 80% of healthcare spending

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

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

BUYER’S STORY

When Vince and Sue were shopping for a new home, Vince wanted an ocean view. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a short walk from the ocean. The neglected exterior and dated interior were not encouraging, but when Vince stepped onto the balcony off the third-floor primary suite, he was sold. Any shortcomings in wall color or 11

fixtures faded away when he took in the view. He could now see the sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the ocean!

SELLER’S STORY

When Cameron and Kate listed their home, they needed a buyer who wasn’t concerned that the house was on an unpaved road. Though the home was over 10 years old, the interior was updated with fresh, neutral wall colors and carpeting to look brand new. The towering trees and established yard gave the home a welcoming appeal. The buyer had also looked at a home within miles of Cam and Kate’s that had towering trees, as well as a koi pond and patio. This home was comparable in interior and exterior, but it was on a busy street. What 20% of the home caught the buyer’s eye and prompted him to choose Cameron and Kate’s home? The buyer loved the secluded country feel of the home. The 1.8-acre property was surrounded by pastures, with grand oaks dotting the landscape.

LOCATION MATTERS

A buyer paid extra for a townhouse because of its location in the complex overlooking woods instead of the parking area. Another seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half-acre grassy area. An owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex because he had a characteristic shared by fewer than 10% of others — in fact, he had the only available listing offering that feature. He pointed to that feature in marketing the townhome.

With this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to her advantage. Her property backed up to a lake and fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price.

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

Decide upon, improve, and spotlight the unique features of your home in marketing copy, photographs, and showings. Do not spend much time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced-off dog run in the unusually large backyard. If the

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

• Hilltop views or high vantage points offering a spectacular view of the surrounding area • Open fields frequented by wildlife

• Unobstructed views of sunrise and sunset • Patios, decks, dog runs, garden areas, and gazebos—highlight items neighboring houses don’t have,

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

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

An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offers 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home for the buyer were dwindling. They stopped at one last house as the sun was setting. The exterior of the house was dated and the yard looked untended.

This agent and her client had spent the entire day looking at houses that shared 80% of the same features. Nevertheless, once the buyer walked into this home, he wanted to offer the full asking price. What set this house apart from the others? He wasn’t too interested in the kitchen, bathrooms, and bedrooms. A bedroom was a bedroom, as far as he was concerned. He fell in love with the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view. As they entered the great room, the sun was setting below the distant tree line framed by the large wall of windows. That view sold the buyer. The remaining parts of the home could be improved. The home buyer based his decision to buy on the window view from the hillside. The 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule. In some cases, the 80/20 rule may help people make a sale without even conducting a showing. The house in the following example had languished on the market for months. Unlike the previous home, this one was attractive. It was a brand-new, custom-built home, yet it sat on the market for over seven months without a single offer. The builder hired a real estate agent who knew the importance of finding that one special feature. He drove out to give the house a thorough investigation. He discovered what the property had that the competition did not. The house had a five-acre yard. Other houses being sold in the area had one- to two-acre lots. Not only was the yard bigger but it was also more private than the other properties. The real estate agent marketed the property by highlighting the five acres. Because the house was no longer the

main selling point, interest in the property increased.

CHAPTER 4 Creating Curb Appeal b Appeal

Someone once said, “A stunning first impression is not the same thing as love at first sight. But surely it is an invitation to consider the matter.” This could not be truer than in selling a home. First impressions matter: sometimes they are EVERYTHING. Nothing sets the tone of a relationship or encourages a

transaction more than first impressions. Always consider what a potential homebuyer may think as he or she drives up to your property for the very first time. Think of “curb appeal” as the home seller’s shop window. Just like picking a lunch place on a busy avenue in a tourist spot, it’s either the outside presentation or, as we saw in the 80/20 rule discussion, some particular feature that brings in the customers. For most lunch seekers, it is the "curb appeal” and to others, the soups and sandwiches they serve (specific desired feature). You do not have a lot of time to establish a curb appeal relationship with a prospective homebuyer. Whether cruising the web to view online photos from across the country or cruising by your home in the family SUV on a Sunday afternoon outing, home shoppers will decide at a glance whether they want to see more. “We buy ugly houses” is a sign often seen nailed to electric poles. 17

Rehabbers look for ugly houses so that they can pay the least amount possible; homebuyers looking for a deal—not a “basement bargain”—do not want an unattractive home. Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who didn't find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by. Try this. Go out into your street and look—I mean REALLY look at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are there necessary repairs that you have been putting off? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from real estate experts, your friends, and/ or potential home buyers about how you can make your house show better. Then take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you and note why. Well-tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door. The outside appearance of a property needs to be an invitation to come inside. Potential homebuyers are drawn to welcoming entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Low-cost

investments like power washing the house and concrete, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with little to no expense. Repairing and repainting your home can cost more money, but often those upgrades are reflected in the eventual sales price of your home. The goal here is to get more money for your home. Homebuyers generally aren’t interested in a home that needs work, unless you want to sell below market value. Look around your yard, and make a written list of everything that could be improved: • Shrubs trimmed, flower gardens tended, walkways tidied, and beds weeded • No trash, trash cans, lawn clippings, branches, or general mess in the yard • All outside fixtures and components (door and yard lights, garage door, porch rails); functioning properly and looking their best • Outdoor features, such as patio furniture or the deck, updated with staining or painting Make as many major and minor improvements to update the exterior of your property as you can. There might be a long list of things to do. It takes hard work to get a home ready to sell. Anyone can put a house on the market, but not everyone sells quickly or with great profits. Then, await the prospective buyers who will be drawn to the inside of your home when they see how beautiful it is from your curb!

CREATING A GRAND ENTR AND ENTRANCE

As I mentioned earlier, an important part of curb appeal is the home’s “grand entrance”—the portal to even the most modest house. You want to create a sense of a great place to come home to. Impressing the home shopper at the front door is a vital part of the home sale. This means more than putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe, and secure when they open the door. The doorknob is the first point of touch at a home. Security is important to homebuyers. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable, and they may not even know why. Replace a worn or loose entry handset. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. This investment of less than $100 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door is a focal point; make it impressive. Freshen it up and add a dash of color. Choose a paint that complements the color of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI (Return on Investment).

SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB AP T CURB APPEAL: EAL:

• Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home 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. Make sure the address number is visible so potential buyers know that this is the house that is for sale. • Use outdoor lighting to add to landscaping appeal as well as a perceived safety feature. • Use flower boxes and raised flower beds to add instant color. This is an easy, inexpensive way to enhance curb appeal. • Spruce up the landscaping. Eliminating weeds and adding fresh mulch can make a difference and show homeowner care and maintenance. • Keep shutters and trim in excellent shape. Repainting them adds to the attractiveness. Fence gates, arbors, and fencing panels should be clean and fresh. • Clean downspouts and gutters. Repaint or touch up to eliminate rust spots. • Ensure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping interfere with home shoppers walking up and diminish the inviting look. • Try a fresh coat of exterior paint; faded or chipping paint, siding, or trim will always detract from curb appeal. If exterior paint is good, ensure door and window trim are, too. This simple upgrade is well worth the cost. • Power washing the house, walkways, and driveway can be almost as effective as repainting, at a much lower cost. Power washers are easily rented from hardware stores. • Adding some stone or stone veneer to the face of the home is an inexpensive way to instantly update your home if it complements the design. • Add a “smart” doorbell. Eight of 10 home doorbells are

outdated or not working, so if you invest $50 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers who are looking for security measures. Curb appeal is one of the most essential elements in selling your home quickly and successfully. You can create interest in your home before buyers even step out of the car, even if they didn’t think they were looking for a home like yours. If you put money into cleaning up the outside of your home, buyers will be far more likely to want to see the inside. Your home’s curb appeal draws buyers in, maintains their interest, and sets your home apart from the competition. Remember that unless you are willing to lower your home’s price well below market value, prospective homebuyers typically won’t want to take on a major renovation project.

CHAPTER 5 Staging with Purpose

Staging is the act of sprucing up and setting up a home's interior to make it as visually appealing as possible to a prospective buyer. Creating an appealing home—one that potential buyers can envision themselves living in—is the best investment in the sales effort. Sellers often fail to take full advantage in this regard, as it takes considerable time and work. However, the payoff is proven. Staging is considered one of the most effective marketing strategies to increase the value of your home. This strategy is effective in any market, in any type of home property being listed. It applies equally to single-family houses, apartments, townhouses, and condos. This approach works! Agents and sellers using this tactic have a greater chance of selling the property for more money.

Staging the home will:

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

STAGED VS. NON-STAGED CASE STUDY & REPORT

Dear Reader,

I wanted to give you the most convincing proof possible. Many people find it hard to believe that the simple act of staging helps one home sell for more than another, similar home. In my research, I looked for examples of similar houses being sold for differing amounts of money, where only one of the two houses was staged. The clearest example I could find was in the case of these two listings.

This development has 200 equivalent townhouses.

Every single townhome in the neighborhood is three stories, with three bedrooms and three bathrooms. Every unit has the same floor plan.

I looked for two sales there, and found these:

• Townhome A sold on August 26. • Townhome B (5 doors down) sold on July 26, for 40,000 dollars less. I visited this neighborhood, and I am familiar with these properties.

You could not find a better example of two identical properties that sold for different prices. The lots the units sit on are identical, as far as the desirableness of the location. Both units had the same kitchen plan, with the same cabinets and similar tile floors. Both units had nice hardwood floors in the living room and carpeted bedrooms. Every important detail of these townhouses was identical. I studied every aspect of these sales to find what made the difference. There are two reasons one home sold for $40,000 more than the other: • Townhome A was professionally staged, giving it a more appealing appearance. • The agent selling Townhome A took higher quality, more attractive photos of the home. Those two seemingly small actions made the $40,000 difference! The buyers of Townhome A made a higher offer because the agent presented the home in a more appealing and attractive way.

THE POWER OF STAGING WHEN SELLING A HOME

Consider these results from surveys conducted by the National Association of REALTORS®:

• Staged homes spent 50% less time on the market than

homes that were not staged. • Staged homes sold for more than 6% above the asking price. • A staging investment of 1% to 3% of the asking price generates an ROI of between 8% and 10%. • Homes staged before listing sold 79% faster than homes staged after listing.

WHAT DO BUYERS WANT TO SEE?

Most home shoppers are envisioning a fresh start. If they can picture themselves living in the home, the home will be easier to sell. This is known as “interior curb appeal,” where the eyes are drawn to inviting spaces and light, as well as to unique features. Each room needs a purpose or suggested use. The home must feel new to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. Painting, updating fixtures, and eliminating stained carpets and popcorn ceilings can affect the saleability of the home by 75%!

NEUTRALIZE FOR VISUAL APPEAL

The idea is to neutralize the home regarding personal taste or decoration, so buyers can easily envision the home as it would be outfitted to their taste or with their possessions without the distractions of the seller’s taste and possessions. In staging, distractions are removed so the home shopper can imagine living in each space of the house. An effective way to achieve this is to paint all rooms in a neutral color. A wide range of neutrals is available, from warm whites to pale grays to light beiges. Painting the interior gives newness and freshness and can make the home appear more spacious. Using the same color in visibly adjacent rooms gives the house a seamless look and uninterrupted flow.

Changing your window coverings to match the walls can also create an illusion of more space. Dark or bold wall colors can dampen interest in a home if used in large spaces; however, they can occasionally be used effectively as accent colors. If in doubt, paint it out.

FOCUS ON FURNITURE: LESS IS MORE

In staging, a visibly inviting space is created so that the home shopper can envision or imagine life in that space. Editing is the key. If the seller’s personal taste and style are showcased while the home is on the market, it may be a sale distraction. Preparing for moving is part and parcel of selling a home; it might as well be done at this stage of the process, to enhance the property’s saleability. Shortly, we will examine depersonalizing the home, a key step. First, however, we must examine the concept of creating space by minimizing furniture. Buyers are attracted to homes flooded with light and roominess. They are equally put off by cramped homes filled with unnavigable spaces. Home shoppers want to walk through a house without obstacles in the way. Space and storage are high on the list of buyers’ desires, so every area of the home should feel spacious. Remove all unnecessary furniture from living spaces. Store it while the home is marketed. Closets, pantries, and storage rooms must be free of clutter and look organized. Pruning back unnecessary items can create interest by showcasing space and storage in areas such as closets, attics or basements. Furniture placement is an easy way to highlight unique house features. A grouping of chairs in front of a fireplace will draw

attention to it. Avoid pushing furniture close to the walls. Reposition easy chairs into floating group spaces. Every room must be staged to show function. An empty room used for overflow boxes, possessions, or unwanted items should be transformed into a usable, desirable space. Clean it out and create an office space with a desk and chair, or a reading room with a lamp and recliner. Exercise equipment might be arranged to feature it as a workout room. Every room should have a purpose and be user-friendly. Make your home’s traffic flow smoothly, so buyers can browse each room without effort.

EMOTIONAL CUES AL CUES

Once every room has a purpose, creating an appealing atmosphere is crucial to make the home desirable. Decorative touches of greenery, flowers, and coffee table books give life to a room. Creatively hung wall art can do the same. A bedroom that has one bed with one pillow and a drab comforter may make the room seem bare and lonely. By adding a table with a lamp and a rocking chair draped with a fluffy throw blanket, you heighten its appeal. Be sure to add elements of the same color, shape, or texture to unify the room. Any splashes of color should appear in wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can even seasonally decorate your home without diminishing its appeal. The main goal is to keep your home clean and free of clutter that distracts would-be buyers. Even simple things can have a big impact on the final sale price of a home. You have options for staging a home: you can attempt to stage the property yourself or hire a professional home stager. If you are considering hiring someone, I can provide recommendations. If you decide to choose me as your listing agent, I can provide some basic staging as part of my services.

TO STAY OR NOT TO STAY?

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

Pros of Moving Out

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

Cons of Moving Out

A vacant home can signal that the homeowner is a “motivated seller” who needs to sell quickly. Consider this example found on an online real estate forum. A buyer saw that the home they were interested in was vacant and offered $30,000 less than the asking price. The buyer was sold on the home anyway and would have paid more, but “haggling” began well below the asking price because the buyer assumed the owner was desperate to sell.

CHAPTER 6 Upgrading with ROI in Mind OI in Mind

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

Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” It is frequently advised in this area that it’s better to update/remodel your home while living in it and not solely at the time it comes to sell. That way, there is more enjoyment in the improvement and less cost and time in preparing for sale. Some desirable upgrades or home improvements will not return their cost in the sale price, so it’s better for the owners to enjoy them all along. If your home is worth $275,000, and you spend $25,000 to revamp the kitchen, don’t make the mistake of assuming that the investment will increase the value, dollar for dollar. The remodel may add value to the home, but the return in dollars spent will usually be around 50%. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms just to sell your home isn't necessarily wise. That’s not to say you can ignore necessary repairs that a home inspector would red-flag or that a mortgage company would 30

demand that you fix them before issuing a loan to a buyer. If major problems like a leaking roof or outdated electrical wiring exist, you may want to repair those potential deal-breakers before putting your home on the market or expect to give concessions to the buyer.

STARTING WITH THE B G WITH THE BASICS

Every listed home should meet the basic expectations of any buyer. It should have a sound roof, functioning gutters and downspouts, a foundation without cracks, a functioning heating and/or air-conditioning system, solid subflooring, and safe and secure electrical wiring. With finance-mandated home inspections, any shortcomings may be required to be remedied to get buyer financing approval. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodeling to sell the home or to increase the value may not pay off. The property needs to be up to the standards of neighboring homes, so while the kitchen has to be comparable to others, spending $25,000 to remodel a kitchen in an area where comparable homes recently sold for $275,000 will not increase the house’s value to $300,000. While it may be a helpful selling feature and may help your home move faster, it won’t necessarily return dollar-for-dollar value.

MECHANICAL MAINTEN CAL MAINTENANCE IS A MUS CE IS A MUST

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

These systems require consideration:

• Electrical boxes and wiring

• Roofing • Plumbing • Central heating and air-conditioning • Septic systems • Wells

If these components are old, outdated, or not working correctly, the home’s appeal and eventual sale price will be lowered. You may not have well or septic systems, but if you do and they aren't up to code, you might lose a sale or have to give a major financial concession to the buyer. Septic systems are often part of a buyer's Due Diligence Request for Repairs in the Sandhills area. Repairs start at about $1,800 and can top $10,000. Guess who the potential buyer expects to pay for that cost? You, the seller. According to the National Association of REALTORS®, heating and cooling costs were the most important environmental features for recent home buyers, with 83% finding these features at least somewhat important. People want to purchase a home that reflects their aesthetic tastes and lifestyles but also one that is safe and sound. Faulty electrical systems don't provide a feeling of safety. Leaky plumbing arouses concerns of mold infestation and sewage problems. These areas can require extensive work, and they are extremely important. Overlook them in the preparation stage, and you run the risk of trouble later with inspections and appraisals. It aids the sale if professionals certify or remediate any deficiencies in mechanical systems. Having a professional inspection for buyers to review is a big plus in marketing. • Have a certified plumber inspect the entire water system for leaks. Check the well and septic field, if applicable. • Hire an electrician to check the wiring. 32

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