Rodell Jefferson, Associate Broker - FOR SALE BY YOU: THE ULTIMATE GUIDE

FOR SALE BY YOU: THE ULTIMATE GUIDE

Rodell Jefferson Associate Broker

Table Of Contents

Is FSBO Right For You?

Common Reasons Most FSBOs Fail

Why Some FSBOs Sell And Others Don't 14

What Does A FSBO Really Cost?

Make Sure The Price Is Right

Stage Coaching

Upgrades And Repairs

This Little FSBO Went To Market

It's Showtime!

10. It's Opening Day

11. Negotiation Prep

12. The Bargaining Table

13. How To Be A Contract Player

14. Closing Day

15. How To Declutter In A Hurry

16. Enhancing Curb Appeal

17. Let's Talk About Pets

18. What You Must Know About Appraisals 90

Introduction

When I first ventured into the real estate industry years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to 1. Get the most money possible for your home, 2. Sell in the least amount of time, and 3. Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including: • Secret strategies to sell your home for more money • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • And much, much more If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home. Happy reading!

About Me

With over 20 years in the mortgage and real estate industry, I've learned that life itself can be demanding, and when working with buyers and sellers each transaction takes on a life of its own. My greatest joy is when I've helped a customer find that ideal home that fits their family needs. My approach as a realtor is to build trust with my clients. To assist them through the buying or selling process as stress-free as possible by finding

the right property and negotiating the best terms and price for each client. I've learned through experience that constant communication with clients keeps information flowing which makes the process run smoother and as a result helps create happy endings. Rodell has lived in Texas since 1981. In Dallas since 1989. Graduated from Northwood University with a BBA in Business Administration. He offers complete buyer and seller representation, including first-time homebuyer programs, relocation assistance, real estate investors, new construction, quick pre-qualification as needed, and a dynamic marketing program to enhance the sale of listings along with the best customer service possible.

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Testimonials & Reviews Dear Most Excellent Future Home Buyers and Sellers: As a full- time teacher, and a person with many commitments buying and selling a home has the potential to bring much stress. I can tell you assuredly that Mr. Rodell Jefferson made both buying a new home, and selling my current home both virtual stress-free. In this letter of reference, it is my humble duty to recommend, Mr. Rodell Jefferson for anyone who is seeking to buy a new home or to sell their current home. I am most appreciative of his real estate agent services. Mr. Jefferson contacted me the same day that I contacted him. It was an early Saturday morning, he got right to work. That quick reply was symbolic of the spirit of excellence that Mr. Jefferson would exhibit in all transactions. His work was always timely, and he always keeps me updated on the latest details. Sometimes, he would work early in the morning, at 3 am, just to ensure that all my home buying and selling needs were met. Within a week, Rodell had 6 properties lined up for me to visit, each meeting my very specific expectations. He navigated complex and unexpected situations that are present in any real estate transaction like the pro that he is. Each matter was resolved to my complete satisfaction. Rodell served as a gifted agent between me and the seller of my new home. Additionally, he did not miss a beat helping me sell my current home. Within one month, both the buying and selling transactions were complete. This is a testament to Rodell staying on top of all needed elements of both complex processes. I personally do not write very many letters of recommendation. I reserve my recommendations for individuals who I strongly feel have what it takes to be successful at the appointed tasks. Mr. Rodell Jefferson is one such person. I know that he will continue to make me proud of his pursuits. I can say with certainty that the potential buyers and sellers will be very proud to count Rodell as their agent. - Dr. Tyson McMillan, Ph.D. Professor

Highly Recommend United Real Estate Dallas! Having worked with many real estate professionals over the years, I have been exceedingly impressed with the service I have received from United Real Estate Dallas and would never work with any other real estate agency. - Steven R We've been with United Real Estate Dallas since 2012. They helped us in buying our first home, and five years later, helped us with selling it. Our agent was highly knowledgeable in her field, quick to respond to any of our concerns (even in the evening hours!), and very professional. I would highly recommend anyone to United Real Estate Dallas - Jamin M. My husband and I were very grateful for Rodell helping us buy our first home. Best Decision We Ever Made!!! We were in a situation where my previous bank loan fell through and we were closing in two weeks. Thankfully we had a plan B and our real estate agent Rodell Jefferson was very skilled and ready to proceed with the curveball. We were very pleased with the way Rodell handled the situation with the sellers, being very careful not to signal a red flag with the switching of banks. He gave us very good advice from start to finish thru the entire process and was very knowledgeable about all the questions we had. Nobody else will ever beat his services. We are relieved we are finally in our home. We will forever be grateful for what he did for us!!!” Thank you, Rodell and United Real Estate Dallas for such an amazing real estate agent. -Kimberly & Rudolph Sears I believe God will put people in your life for a reason. I have a friend named Rodell Jefferson that gave me his business card because he is a Real Estate agent. I told him at the beginning I was not ready to own, but I will surely use his services when the x

time is right. Now that it was my time, I gave him a call eight years later and told him I was ready. I believe you should build a rapport with people and invest in them because they would invest in you. I will say the struggle is real and we must push past all the obstacles that may come our way. I will list the steps I took to get where I am now so that you are aware you can do it too. There is so much free information on the internet. You must do your research. My word is bond, I used my friend Rodell Jefferson and he took care of me from the beginning to the end and still check up on me. He has over 20 years of service. He is knowledgeable and answers the phone and return calls as needed. He was able to answer all the questions I had and still have. You do not have to do your process alone. You can use him too because he has connections everywhere in the Dallas Fort Worth Metroplex and throughout Texas and can direct you to people in your state because of his MLS listings if you want to buy a home or rent an apartment.

Here is my agent information: Rodell Jefferson, United Real Estate http://wherehappyendingsbegin.com/contact.htm

I was excited to view this property because who wouldn't like something new. That means less work in the future plus great warranties. So I had compared the list of things I wanted in a home and it matched 80% of the things I needed in my new home. Finally, I made an offer. I was positive this is where God intended me to be. I not only got home but a brand new one that no family occupied, it was built from the ground up with many warranties waiting on ME. God has what is best for us, we must continue to remind ourselves that he will lead and guide us on these paths of where he needs us to be. He will do what he says he will do if you trust, believe, and activate your faith; he will bless you beyond your wildest dreams. So after I signed my papers , I went to my home to pray and bless it by entering xi

every room touching every crevasse of my home before I officially moved into it. Know that I believe in the power of prayer and anything that I touch because I am in God, will flourish. It is such a euphoric feeling knowing that I did it on my own and use the right resources to get what God had for me. You can do the same too. I had moved into my house on Christmas Eve the best present I ever gave myself. The move was 40 miles away from my apartment into my home; from being a renter to becoming a homeowner. I do believe the further from the city you are; you will get more house for your money. -Alisha Barefield Rodell Jefferson was recommended by our mother Verdell Hurd, whom she worked with years ago to purchase a home. We have known Rodell for quite some time. We worked with Rodell to secure a location for our new home. We are first-time home buyers, and he made this transition in our life smoothly. When we first decided we wanted to buy a home, we informed him of our desire to have a new construction home. Rodell showed us a new community where there were new construction homes being built. He then guided us in the right direction to apply and get approved. We definitely recommend Rodell as he is very smart and knowledgeable of this business. A huge thank you to Rodell for all your help! -Adria and Tera Henderson Testimonial #1 The moment I knew I was ready to shop for a home in 2007 I knew I had to reach out to Rodell. Years ago, Rodell and I worked for the same mortgage company. It was during that time I learned of Rodell's work ethic and integrity. Knowing that he was serving others as a realtor, I knew who to call on. Rodell was very helpful and was able to answer all questions regarding the homebuying process. I appreciate that Rodell was patient and explained the process in everyday language. xii

Testimonial #2 When thought came to research into selling my home I had no doubt which realtor I would call. I immediately knew I would call Rodell. Rodell was the realtor who assisted me in the purchase of my home 13 years ago. That process was an enjoyable one. I appreciate Rodell’s promptness in gathering data regarding my property and gathering data on the previous home sold in my area. My home sold without even having to put a for- sale sign in my yard. I appreciate Rodell and will definitely call on him for the purchase of my next home. -Astonida Draper, CPA We used Rodell Jefferson to purchase our home in Fort Worth,TX last summer, and he was phenomenal. During an already stressful process, and at the height of an extremely compatible market, Rodell made shopping for a home almost a breeze. Rodell was great at communicating, and tackled every hurdle head on. This was extremely important as my husband and I worked crazy work hours. Rodell helped alleviate the stress and headache that one may experience with such a long drawn out process. Though we were certain that we wanted to go in the direction of a new build, at the beginning of our home search, we started looking at existing homes. Rodell, didn’t complain not one bit, and always was there for all of our challenges, going from looking at existing homes, to speaking with four builders, locking in a contract to start a build, only to end up looking at existing homes again. He has always answered every call or email no matter what time of day, or night it was. His professionalism, mentorship, knowledge, honesty, and hard work ethic are much respected and appreciated. We never felt forced to make an offer. When we ran into a hiccup with financing due to the lender having a hard time with providing a final approval due to the need of additional income verification, he jumped in, head on, and helped with contacting my previous employers, and completing required documents to help with providing an extension. xiii

I would recommend Rodell Jefferson to anyone who is looking for someone who is knowledgeable about the area, property, and the market. To someone who is looking for a realtor with patience, and could use an extra set of hands on board. -Jarell Knott & Natasha Collins-Knott

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CHAPTER 1 Is FSBO Right for You?

WHY SOME PEOPLE SELL THEMSELVES

We live in a DIY world. We swap out toilet flappers instead of calling a plumber. We Google “red spots on neck” instead of calling a doctor. And, sometimes, we market and sell our own homes—For Sale By Owner (FSBO)—instead of using a real estate professional. Sure, doing things yourself can save you money. But unless you know what you’re doing, you could flood the bathroom, mistake hives for measles, and—this is my biggest fear for you—put a house on the market in the wrong shape, at the wrong time, and for the wrong price. The result is a low sale or—gasp!—no sale at all. Sure, FSBO listings can save you some real estate commissions, typically 3%, which is nothing to sneeze at. But, as I hope to show you, FSBOs can be penny-wise but net/net foolish. Here are some stats to chew on, thanks to the National Association of Realtors®’ 2016 Profile of Home Buyers and Sellers. • Only 8% of home sellers in 2017 were FSBOs—the lowest figure since 1981. • FSBOs typically sell for less than homes marketed by a real estate professional. A 2017 study by Collateral Analytics showed that the price of an FSBO sales is about 5.5% lower than Multiple Listing Service (MLS, agent 2

assisted) sales. • Most FSBOs are bought by friends and family of the seller. That means the seller didn’t have to figure out how to market his home; he just called a cousin and made a deal. • 28% of homeowners who sold homes themselves did no marketing at all; 28% spread the word via friends, relatives, and neighbors. • 15% of FSBO sellers said “getting the right price” was the hardest part of selling their home.

FSBO SKILLS YOU’LL NEED

If selling a house were easy, everyone would do it. Only 8% wade into the FSBO waters because most homeowners don’t have these necessary real estate skills. Research know-how: In order to accurately price your house, you’ll need to identify comparable sales, understand economic and neighborhood trends, and keep up with mortgage and prime rates. All this takes research chops. Declutter savvy: Decluttering a house is the first step to sprucing up a sale. But you must know what to pitch and what to display. How do you make your home a place someone else can envision as theirs? Staging experience: You love that leather couch; but will a buyer? That blue accent wall in the family room reminds you of Paris at midnight, but will it make a buyer feel claustrophobic? To get the highest price for your home, you must look at it through a buyer’s eyes.

Negotiating chops: You’ll have to get a rush from haggling over

price, responding to contingencies (and you have to know what “contingencies” mean), and discussing what repairs you’re willing to do. If negotiating makes you sweat, when was the last time you asked for a raise? Then selling your own home will be excruciating. Paperwork experience: Are you good at filling out forms, calculating percentages, dotting all i’s and crossing all t’s? Making a deal may be easy; but memorizing what you discussed is tedious and time-consuming.

HOW I CAN HELP

Sure, you can muddle your way through a sale. But I sell houses all day, every day. I will use my professional experience to help you: • Research your local real estate market to discover trends. • Market your home to real buyers. • Manage paperwork. • Stand by your side, from placing your listing to closing on the property. • I know the real estate business, what attracts buyers and what scares them away, and how this morning’s headlines might influence this afternoon’s showing.

CHAPTER 2 Common Reasons Most FSBOs Fail Fail is such an ugly word; so are “sold below listing” and “200 days on the market.” Of course, any real estate deal can go south, even ones represented by listing agents who sell homes day in and day out. In 1906 Italian economist Vilfredo Pareto helped shine light on why some homes sell, and some don’t. The Pareto principle, aka “the 80/20 rule,” found that in most endeavors, from growing peas to selling homes, about 20% of what you do matters, while the other 80% makes little or no difference at all. Sometimes, the split is 70/30 or 75/25. But the point is the same, and when it comes to real estate, the Pareto principle means: Stop trying to sell buyers on your entire home, because only 20% of your home’s features are important to the buyer, while 80% don’t matter much because most homes buyers see have the same features. The trick is to emphasize the 20% of your home that is unique, like a view of the ocean or a shady yard with mature trees. Following the 80/20 rule will save you time. Here are some unique features that will make your home stand out. Great views: Of valleys, mountain, river, lakes — any views that other comparable homes don’t have. Wildlife attractions: Perhaps your house looks over wetlands where many types of birds stop during migration, or you’ve got 6

a wildflower garden that butterflies and hummingbird frequent. Wildlife attraction can be a deal closer for nature lovers. Breathtaking sunsets: Who doesn’t love an unobstructed view of a sunset? And if your patio faces west, make sure you schedule the show around sundown and have a glass of lemonade waiting on a patio table so the potential buyer can soak up the sunset. Stone patios: If your neighbors have wood decks, your flagstone patio will stand out. Fenced-in backyard: If a buyer has kids or pets, a fenced-in backyard can be a deal-maker. Fences are expensive. And if your home has one—especially a lovely wood fence—make sure you point that out. Failing to accentuate the uniqueness of a home is just one reason a house doesn’t sell quickly … or at all. Here are other deal killers. 1. PRICING TOO HIGH Experts say the #1 reason that listings go stale and eventually don’t sell is that owners price the property too high. Maybe fond memories make sellers think their house is worth more than the market will sustain; maybe sellers hope a big fish will bite at a high price, and if one doesn’t, they can always lower it.

Wrong!

Buyers aren’t idiots, and when big money is involved, they do their homework. Overpricing signals that a seller isn’t serious, or that he’s taking a flier and will eventually get real and lower the price. The result is a property that languishes on the market without an offer or sale. The longer a home stays on the market, the more a potential buyer wonders, “What’s wrong with this house?”

Eventually, overly optimistic owners lower the price of their homes. But the bloom is off the rose; and a seller who initially was driving the transaction finds himself chasing buyers, who become fewer as the listing becomes “stale.”

2. PROPERTY ISN'T IN TIP-TOP SHAPE

Your house has only one chance to make a good impression, the best reason to make sure the property is in white-glove condition. Unfortunately, many owners can’t see the imperfections that buyers will notice right away. When you’ve lived in a home for a long time, you can overlook nail pops, floor scuffs, and cat smells you’ve become nose-blind to. You may also not notice the weeds under foundation plants, or bird poop on walkways. These are small things that make a big impression on a buyer, who presumes that you don’t care enough about your property to give it a fresh coat of paint. And if the paint is chipped, buyers reason, what else is wrong with the house?

3. MARKETING MISSTEPS (OR NO STEPS AT ALL)

Houses don’t sell themselves. You’ve got to spread the word, whip up interest, and target people who actually want to buy a house, rather than just spend a Sunday touring other people’s homes. A Multiple Listing Service (MLS) is the first place buyers’ agents go to find a home that fits their clients’ needs. But the MLS is for professionals only, and you’ll likely have to pay a discount agent $500 to $1,000 to get your listing into the MLS. You’ll also need to take photos, hold open houses, create brochures, and show the house—all require specific skills and 8

talents. If you haven’t honed your marketing chops, you can spend a lot of time and money creating brochures no one reads, holding open houses that only neighbors attend, and placing ads online that don’t reach your target audience.

4. UNDERESTIMATING THE PAPERWORK

A ton of paperwork accompanies a property sale, and not knowing what paper you need to sell your home can cost you dearly. You’ll need to obtain, file, or fill out:

• Contract of sale • Deed • Title report • Tax statements • Insurance information • Appraisal and inspection reports • Disclosure forms • Lien affidavits • Mortgage documents • HUD statements at closing

Mishandling paperwork can wreck a sale and even put you in legal jeopardy, especially if you fail to disclose hazards, like lead paint or radon, within the home. Also, all official documents and agreements involved in the sales contract must be executed within a set, legally binding time frame.

5. IGNORANCE OF REAL ESTATE BASICS

You may think attracting your own buyer and skirting all real estate agent commissions is a godsend. But if you avoid all agents, then understanding all the details of the sale falls to you. That means you must become an instant expert on escrow, water

rights, mortgage rates, mortgage types, property taxes, property assessments, disclosure obligations, lender requirements, and on and on. Real estate agents learn these topics during pre-licensing courses that can last 75 hours; you’ll have to learn them on the fly.

6. PROPERTY MISREPRESENTATION

When it comes to selling property, your word is your bond. The way you describe the property—what you include, and what you omit—becomes part of a contract. If you exaggerate, misrepresent, or fail to include a problem you know exists, you risk losing a sale —best-case scenario—or gaining a lawsuit. You look at your property through years of memories, piles of receipts for upgrades and maintenance, and profit you hope to gain so you can move into that condo in Florida. This personal lens makes it hard to view a property objectively and present it neutrally. Professionals know how to describe your property in accurate, detailed, and attractive ways. Disclosure rules are different in each state, and professionals know what must be disclosed: termite infestation!—and what doesn’t: tiny chips in granite countertops.

7. RELYING ON ONLINE PRICES

Sure, Zillow will give you a “Zestimate” of your home’s value. But Zillow and other online pricing tools typically use comparable sales to arrive at the best guess of your home’s value. It doesn’t figure in your backyard filled with old-growth trees, or walk-out basement, or kitchen backsplash with eye-popping glass tile. A flesh-and-blood real estate agent looks at many different 10

factors that affect the value of your home.

8. THINKING THEY CAN AVOID ALL COMMISSIONS

Just because a potential buyer sees your sign and knocks on your door doesn’t mean you’re off the hook for all agent commissions. Sometimes buyers are contractually obligated to buy a house through their agent, whether they find the property themselves or not. So, if you’re allergic to paying, make sure you find out if a would-be buyer has an exclusive contract with an agent. And let’s get real. No agent will bring a client to your home if there’s nothing in it for them. Would you spend your time working for free? Ultimately, refusing to pay any commission at all will drastically limit your pool of buyers. So don’t cheap out. Even if you avoid a listing agent’s commission, you’ll most likely have to offer a buyer’s agent commission, typically 2.5% to 3% of the sales price. Make sure you put that in your listing, so agents know it’s worth their time to bring you a buyer.

9. AVOIDING LAWYERS

Sure, you may not like lawyers. But some states require you to hire a lawyer for a property transaction. Even if your state doesn’t demand it, you should hire a lawyer to avoid legal hassles down the road. Lawyers can:

• Review brokerage agreements. • Discuss tax consequences of a sale.

• Explore and explain issues not contained in a standard contract, such as what happens if a property contains hazardous waste.

• Review title searches. • Explain closing costs and help determine if all are fair.

10. TAKING ADVICE FROM FAMILY AND FRIENDS

Everyone who’s ever sold a house has stories to tell and advice to give. But not all markets are the same. And if your cousin sold his house 20 years ago, in the middle of the housing bubble, and your uncle sold his condo 10 years ago at the beginning of the housing bust, their experiences will be different from yours today. The best advice your family and friends can give you is the name of a real estate agent they liked and trusted. HOW I CAN HELP: I will use my years of experience to help you in these ways. • Conduct a market analysis that helps us price the property realistically. • Train my fresh and experienced eye on your property and help you present your home in its best light. • Post your listing on the MLS and several other online listing services, where most people begin their property search. • Create must-read material and go to must-attend open houses. • Do the paperwork. • Help you locate contractors, lawyers, and title companies.

CHAPTER 3 Why Some FSBOs Sell and Others Don't

The key to this successful home-selling approach is a revolutionary finding discovered by Italian economist Vilfredo Pareto. The Pareto principle, or the 80/20 rule, is the key to this successful home-selling approach. In 1906, Pareto noticed that 20% of the pea pods in his garden held 80% of the seeds. Taking a closer look at this ratio, he found that 80% of land in his area was owned by 20% of the people. After detailed study, he observed that this ratio held true in many aspects of life. For example: 80% of your income is derived from 20% of your work; 80% of a business’s income is derived from 20% of its customers; 80% of your value to an employer is derived from 20% of your work. In a nutshell, approximately 20% of what you do matters. The other 80% is insignificant. Applying the 80/20 rule can save you time selling your home. Unfortunately, many real estate agents and sellers buy into the false idea that more is more. They completely ignore the Pareto principle. Stop trying to sell people on the entire home. Based on the rule, only 20% of your home’s features are important; the remaining 80% are trivial because they are the same features many other homes in your neighborhood have. Instead of focusing on those trivial features, focus on the unique features to grab the attention of buyers. These features make your home different from others. They’ll make it easier to sell 14

your home for the full asking price. Let’s look at a few real-life applications and examples of how the 80/20 rule can have an impact on selling your home. Remember that buyer in the market for a three-bedroom/two- bath house? Let’s assume the agent found that buyer five houses to preview. Each meets his general criteria and is located in the area where he hopes to live. The agent and her buyer drive out to look at the five houses. All five have similar features. The prices are comparable. In theory, you might think the buyer will have a hard time deciding between houses. But no matter how similar they may seem, no two houses are exactly alike. In real life, the 80/20 rule comes into play. Imagine four of the houses don’t have a pool, but one does. The buyer is not aware of this, though, because the agent didn’t mention it. The buyer sees the four houses that don’t have a pool. He isn’t particularly interested in any of them. Then, he sees the fifth house and the pool! Suddenly, he’s ready to make an offer. He might even pay full asking price, even though this house is more expensive than the others. The buyer’s offer isn’t based on the 80% of features this house shares with the rest. Instead, his bid is based on one unique attribute: a pool. The 80/20 rule predicted the sale of this house. Sadly, in this case, time was wasted finding the perfect house. Had the agent known to look for the 20% difference, this might have been her first stop. As a seller, you can leverage the rule to work in your favor. Draw attention to defining characteristics. Here is a real-life example. A real estate agent had a client visit from out of town. He did not have a list of criteria, just liked the area. The agent drove him 15

from house to house. In each case, this buyer suggested offers 10% to 20% below the asking price. He would not budge. She began to worry; the whole day was turning into a big waste of time. As the sun set, they stopped at one last house. It was not attractive and had little curb appeal. She was out of options. Nevertheless, this house broke the tough negotiator down. He was suddenly willing to offer the full asking price! What set this house apart from the others? It wasn’t because the buyer had a thing for ugly houses. Nope. The 80/20 rule kicked in again. Buyers pay more for unique features. This agent and her client had spent the whole day looking at houses that shared 80% of the same features. He did not care about any of those details. A bedroom was a bedroom as far as he was concerned. He fell in love with the one remarkable feature of this house. As he walked into the great room, there was a large window. The house sat atop a hill with a gorgeous view. And to top it off, the sun was setting below the distant tree line. That view sold the buyer. The other 80% could be improved. He did not buy the house because he liked the floor plan or the number of bedrooms and bathrooms. That view caused him to stop negotiating and offer full price on the spot. Such is the power of the 80/20 rule. Learn how to tap into this rule, and you will not have to settle for less than your asking price. Leverage a unique selling point. Buyers who fall in love do not haggle over pricing; they make good offers. In some cases, the 80/20 rule even helps people make a sale without conducting a showing. This is a huge time saver. The house in the following example had languished on the market for months. Unlike the previous house, this place was not ugly. On the contrary, it was a brand new custom-built home. But nobody seemed to care. It sat on the market more than seven 16

months without a single offer.

The builder was baffled. His fancy new house would not sell. He ended up firing his agent and hiring a new one. Fortunately, the new agent knew the importance of finding that special feature. He drove out to give the house a thorough investigation. What he found changed everything. The house had a gorgeous five-acre yard. Other houses being sold in the area were all on one- to two-acre lots. Not only was the yard bigger, it was more private than other lots available. The new real estate agent marketed the five acres. He mentioned details and a description of the house, but the house was not the main selling point. He shifted attention to the five-acre lot. In no time, his phone rang! A buyer was relocating and had noticed the house was for sale, but it hadn’t caught his eye. That changed suddenly when the buyer learned it was built on a five-acre lot. He submitted an offer from 1,000 miles away, never having seen the property in person. He was afraid someone else would buy it before he could, and he would lose out on the perfect house. That sale happened in 45 days. The builder was amazed! His house had been on the market close to eight months without so much as a nibble. Suddenly it was sold. Purchased sight unseen, all because of the 80/20 rule. For a short time, this “unsellable” house became the hottest house on the market. Don’t create an advertisement like the ads for every other house in the area. Turn a spotlight on something different about your home. You will attract interested buyers willing to pay full price.

SELLING TO INTERESTED BUYERS

Find something unique about your home and build advertisements around that one item. It will catch people’s 17

attention. Buyers who are looking for that one item will ask to come see your home in person. As a result, you will stop wasting time showing to people who are not interested. Instead, you will be showing your home to buyers who are motivated to make a purchase. You won’t have to show quite so often. You also won’t have to sift through low-ball offers from apathetic buyers. Less stress for you. Take time to uncover your home’s most attractive and unique features. Compare notes with other houses in the neighborhood to see what makes yours stand out.

POTENTIAL UNIQUE FEATURES

Each house has unique features. You may already have some in mind. If not, these ideas should get you get started: Hilltop views are an excellent defining feature. As with the earlier example, a high vantage point offers a spectacular view of the surrounding area. Maybe your home looks out on an open field frequented by wildlife. Many people would like that view. Perhaps your house has an unobstructed view of the sunset. That would interest potential buyers. Patios are another great feature. Maybe the rest of your neighbors have smaller patios or none at all. That vital feature could help you sell your home. Location can set your property apart from others. A buyer once paid extra for a townhouse simply because of its location in the complex. Most of the surrounding homes did not have any yard. However, a few shared a large half-acre “yard area.” One of the 18

owners whose townhome backed up to this yard area sold his townhouse for a higher price. It set his property apart from others on the market. His home had a characteristic shared by fewer than 10% of the others. He had the only available listing offering that feature. With this easy point of difference, the house sold for a higher price. Another townhome seller in the same complex did not have a yard, but his property backed up to a lake and fountain. That extra feature helped him sell his townhouse quickly and for a great price. You might have a private location. For instance, your lot might be partially concealed by trees, or you might have an empty lot next to you. Use this to market your property. You might have a unique backyard. If you have a larger backyard than your neighbors, use that to your advantage. A shady backyard can also help you sell your property. Some people like the idea of lounging in the shade. A fenced-in backyard is also a big selling point. People with kids and pets flock to homes with fenced-in backyards. You can also look at other features. For instance, a finished basement can help you sell your home. You can market a large attic, an extra-large garage, a swimming pool, or anything else that makes your home stand out. Look for the 20% difference and find a way to market it. That is how you will get results. You cannot just throw the information into your listing, though. You have to take the right approach.

CHAPTER 4 What Does a FSBO Really Cost? You probably think selling a house yourself will save you a ton of money; and you might be right. Certainly, you’ll save the listing agent’s fee. However, FSBO sellers pay for many things themselves—brochures, pictures, signs—that an agent would pick up as part of their fee. Agents are also great at negotiating HUD-1 settlement fees, which can cost up to 3% of your sale, so you’ll pay less at the closing table. Hey, it’s all money in or out of your pocket. And it’s important to understand and chew on all the money a home sale will cost. Here’s a little worksheet that will help you keep track of the cost of your FSBO sale.

Marketing Costs = $__________________________

Most agents don’t tell you how much money they spend selling your house. But they pay for photographers, listing fees, professional signs, contract development, and access to online listing services. When you sell a property yourself, you pay those fees, which can amount to many thousands of dollars. And don’t forget to factor in the value of your time. You’ll spend scores of hours finding photographers, designing signs and placing them around town, staging rooms, manning open houses, and showing clients the property. Figure out how much your time is worth per hour, then multiply that number by how many hours you’ll spend marketing your home. It all adds up. 20

Holding Costs = $___________________________

Your home continues to cost you money while you wait for a buyer. You still have to pay the mortgage, utilities, property taxes, and Netflix fees. It’s not so bad—just budget business as usual. But if you, say, must move for a new job before your house sells, you can wind up supporting two properties for an indefinite time. Realtor.com statistics say that homes typically remain on the market for 86 days on average. After you sign a contract, it takes another 30–60 days (or more) to close. And just to fuel more nightmares, about 1/3 of all real estate transactions fall through, and you have to start the march all over again. Fun fact: On average, 18% of FSBOs were unable to sell within their anticipated timeframe in 2015, according to an Inman article.

Back Payments and Taxes = $__________________

Every missed or late mortgage payment, property tax, mechanics lien, and homeowners’ association dues turn up at closing. Some of these debts come with interest or penalties. Before you close on your sale, you’ll have to pay everyone in full.

Loan Prepayment Penalties = $_________________

Many lenders punish you if you pay back their loans early. It’s called a prepayment penalty, and your current loan may have one as part of the original mortgage agreement or as a rider. Search your paperwork to discover the terms of any prepayment penalty. FHA, VA, and USDA loans do not penalize you for early payment, but many non-government, conventional loans do. 21

Transaction Expenses = $_____________________

They’re called closing costs, and they can run from 2%–6% of the total amount of a home loan, depending on the state you live in. Closings are always a drag. Lenders are late with the mortgage check. You haven’t paid the last water bill. A buyer saw a little water in the basement during the final walk-through. And a hundred other situations can arise that delay a closing or crash a sale. Would you know how to deal with all the problems that can arise? The good news is that your buyer probably is being represented by an agent who knows what to do in a crisis. The bad news: The solution will always benefit his client, not you. Bottom line: A recent study by Collateral Analytic found that FSBO homes tend to sell for 6% lower than homes sold by professional agents. Considering most agent commissions are 6%, you’ll typically go through all the work of marketing, showing, and closing on your home, and reap none of the savings you dreamt of. “It appears that many sellers are avoiding commissions while netting home prices less than they would with an agent- represented MLS sale,” the study says. “They are avoiding commissions at any price, even one that exceeds a commission rate.”

How I can help: I’ll save you time and money on:

• Writing a compelling narrative for your listing. • Working with photographers and stagers. 22

• Helping to negotiate a sales contract. • Handling problems during closing.

Still want to sell your house yourself? I know, it sounds a little scary. But if you still feel you’re up to the task, I want to help you succeed. In Part 2, I’m going to teach you everything you need to know to make your FSBO easier and more profitable.

I’ll tell you how to:

• Set the right price. • Stage your house to attract buyers. • Select the correct marketing tools. • Show your home to its best advantage. • Enhance your home’s curb appeal. • Negotiating price like pro. • Write a foolproof contract. • Handle inspections and appraisals. • Interpret a Hud-1. • Avoid freaking out at closing.

Of course, this advice is not meant as a substitute for the expertise of a licensed real estate agent—like me. But if you want to get a clear idea of the work that goes into selling a house, let’s dive in.

CHAPTER 5 Make Sure the Price is Right When you buy a home, the three most important factors are location, location, location. When you sell a home, the three most important factors are price, price, price. Sure, I’ve spent a lot of pages explaining the ins and outs of FSBO real estate transactions. But, if I had to boil it down to the most important concept, it is: Set the right price out of the gate so your home sells quickly for the highest price possible. Many sellers think they’ve got an infinite window of opportunity to set the right price on their house. They often start high—they essentially pick their dream price, which may have little to do with reality—and figure they can always slowly reduce it until someone bites. That’s not how the real estate market works. Setting a price too high, aka “testing the market,” discourages buyers and offers. As you chip away at the price, your listing languishes on the market, becoming stale and even less attractive.

How can you divine the absolutely right price for your home?

First, forget the idea of “perfect price.” Pricing a home is part research, part experience, and part alchemy. Ultimately, you can only know you’ve set the right price on your house in hindsight. If it sold quickly and, hopefully, for more than asking, you priced it right.

That said, I do have some tips that will help you arrive at that magic number.

GRAB COMPARABLES

The best way to predict what price your property will fetch is to see what similar properties—comparables—sold for. Easier said than done. First, realize that every house is unique. Even though two houses can have the same square footage, number of bedrooms, and acreage, they are not the same. House A may have older trees and more shade then similar House B. House B may have drop- dead gorgeous granite counters in the kitchen, while House A has laminates. Your challenge is to find sales of properties that, as nearly as possible, compare to yours. Here are variables to consider. Location: Ideally, you want to find sales within a ½-mile radius of your property. But don’t go by distance alone. Also consider if your house is closer/farther away from a highway, or has a much better/worse view than a nearby comp. This will affect value. Age: Compare homes of the same vintage. If your 3,200-square- foot home is 5 years old, don’t compare it to a 3,200-square-foot home that is 50 years old. If you own a two-bedroom condo, don’t compare it to a two-bedroom single-family house. Recent sales: The more recent the sale, the more valuable the comparable will be in setting the price of your home. Sales in the last six months are OK; sales in the last three months are better. Soft features: This is where you must trust your gut in pricing your home. Some variables, like curb appeal, nearby shopping, community spirit, noise—are hard to quantify, but will affect 25

your home’s value.

When selecting comparable properties, avoid considering distressed properties—foreclosures, short sales, and ugly homes. These bargain properties often sell at a 5% to 10% discount and aren’t good indicators of your home’s worth.

THINK ABOUT MARKET TRENDS

When you look at comparable prices, also glance at how many days a property stayed on the market before a sale. You want your home to sell quickly, not eventually. And “days on market” can indicate whether your local market is hot, or not. If nearby homes are disappearing overnight, then you’re in a seller’s market that could justify an optimistic price. If houses are taking months to sell, then you’re likely in a buyer’s market and setting a price slightly below your competition could give you a big advantage.

CONSIDER ONLINE LISTING SERVICES

Online sites like Zillow and Realtor.com create algorithms that, basically, gather data from past, comparable sales and derive a “guesstimate” for your house. This is a ballpark number that merely crunches numbers. Zillow doesn’t know how your house will show, or that your bathroom tile is to die for—details that will affect the value of your home. That’s why online estimates should be one more factor to consider, not the last word on price.

HIRE AN APPRAISER

If you’re stumped on what your home is worth, throw some money at the problem and hire an appraiser. For less than $500, 26

an appraiser will view your property, pull comparables, take pictures, and offer an opinion of what your home is worth. An appraiser can often see things in your home that can add or subtract value. Ultimately, an appraiser will weigh in on the value of your home. When a buyer emerges, his lender will send an appraiser to make sure the property is worth, at least, its mortgage. HOW I CAN HELP: With my professional experience, I’ll prepare:

• A detailed market analysis. • A study of area comps and pricing trend. • A fair market value for your home.

CHAPTER 6 Stage Coaching

When you’re trying to impress someone, you might put on your best suit or dress, wash your hair, swish around some mouthwash, and spray on some cologne—anything that makes you look and smell your best. That’s the purpose of home staging—it brings out the best in your property. Minimal staging entails decluttering, cleaning, and shining what you’ve got. Deluxe staging means transforming your lived-in house into a model home—at least for as long as it’s on the market. Top-notch staging can entail painting, recarpeting, and replacing shabby, dated furnishings with new, fashion-forward items. A Cinderella transformation can cost from a few hundred dollars to $4,500 per month. But professionals say staging your home is essential to getting the best price in the least amount of time. The National Association of Realtors®’ “2017 Profile of Home Staging” provides some impressive statistics. • 29% of sellers’ agents representing staged homes reported an increase of 1% to 5% of the dollar value offered by buyers when compared to similar, unstaged homes. • 39% of sellers’ agents said that staging a home “greatly decreases” the time required to sell a home. • 49% of buyers’ agents said that staged homes had an effect

on the way most buyers viewed a home. • 38% of sellers’ agents said they stage all homes prior to listing them for sale. The rooms most commonly staged include the living room (83%), kitchen (76%), master bedroom (69%), and dining room (66%). Buyers’ agents cited the guest bedroom as the least important room to stage. Making repairs small and large go a long way toward attracting a buyer. Real estate professionals know that getting your home into shipshape condition achieves these goals. • A well-maintained house receives more and higher offers. • A house in good shape will fly through inspections. • Showing a house in good shape allows you to point out your home’s great features, rather than apologize for the mess. • Most buyers will grab onto any flaw as a bargaining chip

to reduce the price. If all repairs are made prior to showings, a buyer won’t have imperfections to use as bargaining tools.

STAGING 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 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 were staged.

The clearest example I could find was in these two listings.

This development has 200 equivalent townhomes.

Every single townhome in the neighborhood is 3 stories with 3 bedrooms and 3 bathrooms. Every single unit has the exact same floor plan.

I looked for two sales there, and found these:

• 4438 Capital Dome Drive: sold on August 26. • 4456 Capital Dome Drive (5 doors down): sold on July 26, for 40,000 dollars less. I personally 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 details show these homes are identical in every major way:

• 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 a tile floor. • Both units had nice hardwood floors in the living room, and carpeted bedrooms.

Every important detail of these two townhomes was identical.

I studied every aspect of these sales to find what made the difference. This is why one home sold for $40,000 more than the other: 30

• Townhouse #4438 was professionally staged, giving it a more appealing appearance. • The agent selling #4438 took higher quality, more attractive photos of the home. Those two seemingly small actions made the $40,000 difference! The buyers of #4438 made a higher offer because the agent presented the home in a more appealing and attractive way.

- END OF STAGING REPORT -

CONSIDER UPGRADES

This is one of the trickiest parts of preparing your house for sale. Remodeling and upgrading your home might bring you a better price and reduce the number of days your home sits on the market. Or not. Sometimes people spend a lot of money remodeling a kitchen or adding a bath and still have trouble selling their house; only now they’ve poured more money into their home and need to get a higher price to recoup remodeling costs. Some remodels add more value to a home than others. Remodeling Magazine conducts an annual Cost vs Value survey that lists common upgrades and the percentage of money a seller is likely to recoup at sale. The 2018 Cost vs Value survey of midrange upgrades and additions showed:

• Bathroom remodel recouped 70.1%. • Deck addition recouped 63.6%. • Kitchen remodel recouped 59%. 31

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