Kathleen S. Turner, SRES®, SFR® - COMPLETE GUIDE TO SELLING YOUR HOME FOR MORE

COMPLETE GUIDE TO SELLING YOUR HOME F OUR HOME FOR MORE

Kathleen S. Turner, SRES®, SFR®

Table Of Contents

Not All Home Sales Are Equal

Understanding The Home-Selling Process

Pitfalls Of FSBOs

Common Mistakes To Avoid

The Secret Strategy To Sell Your Home For More

Home Improvements That Make Sense

Getting Your House Ready To Sell: Staging For Effect

Curb Appeal: First Impressions Are Everything 59

Top-Quality Pictures

10. Marketing For Success

11. Selling A Vacant Home

12. Selling A Distressed Home

13. Selling An Inherited Home

14. Selling Your Home When Divorce Is Involved 105

Gratitudes First and foremost, I want to thank my parents, Edward and Star Holda, for the unconditional love and support they showed throughout my life. Even though they have both passed away, the advice they had given me over the years still resonates with me. I want to thank them for always believing in me and giving me a wonderful childhood where I felt safe, cared for and so deeply loved. I want to thank my sister Maria, who I love so deeply and who has cheered me on since I was a little child. She is one of the kindest and most giving people I have ever known. I don’t know what I would do without her. A very special thanks to my husband Bain for his love and support for more than 30 years. I feel so protected and loved by him. I love the spiritual man that he has become; I am blessed to be his wife. I want to thank him for being patient with me while spending many hours alone working on this book. I want to thank my dearest friend and Broker, Paula Bachman, for always believing in me. She is one of the most honest people I have ever met. I also want to thank her for the many hours she spent editing this book. It was important that the information was accurate; she made sure that happened. I want to thank my cousins, Bob and Dan Scinto, for being the brothers I never had and for encouraging me to get into real estate. They became my mentors along the way, even though they might never had realized it. Last but not least, I want to dedicate this book to my dear clients who put their trust in me over the years to help them sell their home and/or find a house they could call home. I did this book

for them to make the home-selling process enjoyable and more successful.

Foreword Welcome. If you’ve received this book, it’s probably because you’re thinking about selling your home. 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 my expertise 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: • Get the most money possible for your home. • Sell in the least amount of time. • 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! vii

CHAPTER 1 Not All Home Sales are Equal

Let’s Bust That Myth!

Thank you very much for picking up my book on the Complete Guide to Selling Your Home for More. You’re likely considering selling a home, and I’ve got plenty to tell you. I’m not trying to sell you anything, although my hope is that you will want me to sell something of yours (your home) after reading this book. However, I’m pleased to be of service either way. Later, if you want me to help you sell your home, we can talk. In the meantime, take advantage of the information in this book to get up to speed on selling a home for more money. I’m giving you the benefit of experience and professional advice I have garnered working with both sellers and buyers. I have worked on both sides of the street, which is helpful in getting around and lessening a seller’s stressors. Most sellers don’t venture alone into selling their home, instead finding it better to have a knowledgeable, experienced real estate professional with whom they are comfortable. I wrote this book to provide some of that comfort without the direct stressors of salesperson-to-person contact, allowing you, someone interested in potentially selling a home, to learn, reflect, and consider leisurely. I want the prospective or active home seller to independently achieve a better understanding of the home-selling process without stress, while getting to know the professional services I provide. I’ve also provided actionable insight into how best to 1

market your home and avoid critical mistakes.

HOW TO LOSE $45,000 ON A HOME SALE: ME SALE: NOT ALL HOME SALES ARE EQ ME SALES ARE EQUAL

Let’s Bust That Myth!

Now, I’m going to introduce my Big Idea, the main premise of this book. There’s a widespread myth that any home will sell within a narrow price range compared to other more-or-less comparable homes in the market at the same time in the same area. Allow me to shatter that myth to pieces. No, everyone does not sell their home basically for the same price, and it’s not, like they say, all location, location, location. It is anything but that! You can sell your home for more profit than someone else might sell the same piece of property or a comparable home in the same neighborhood for a significant increased price from the owners. It’s what you do before you make the sale that determines how much, and that is the Big Idea of this book — how to maximize your sale potential.

Let’s put this into an example to drive my point home.

Chuck wanted to sell his home. Word got around that Chuck was planning to be relocated; however, he had not started the process of selling his house. It wasn’t listed, and he didn’t have a real estate agent. He hadn’t really given thought to that part of his promotion and move. A fast-moving real estate agent contacted Chuck and got him excited by telling him that someone wanted to buy his house before he even put it on the market. The buyers were offering $485,000 and were approved for a loan. As the buyer’s real estate agent put it, this would be an easy, quick, and painless sale. The agent put on the pressure. “If you get a real estate agent, what you get for your home will be reduced by 6% and the deal

won’t be as good. Besides, the house around the corner sold for $475,000 just 60 days ago. So? Will you sell your home?” On the surface, it seemed like a great deal. Chuck could sell his home quickly and avoid the inconvenience of the standard selling process. Chuck accepted the $485,000 offer and moved on with his life. The sale Chuck accepted was quick and easy, as the buyer’s agent said it would be. But it wasn’t painless. A few weeks later, Chuck’s neighbor sold his house for $530,000. The neighbor’s house was slightly smaller than Chuck’s, but otherwise comparable and in similar condition. Why did Chuck sell his house for $45,000 less than his neighbor? What features made his neighbor’s house more valuable? Was it because it had a red door? Was it because the grass was cut? Why did Chuck bother to work so hard to pay down his mortgage? Why did he work so hard to keep his house in tip-top shape, only to sell it for less than it probably was worth? Why? Because, unfortunately, Chuck didn’t check with anyone to find out what his house was truly worth in today’s market. He didn’t get an appraisal or a second opinion. His great mistake was not talking to a real estate professional other than the buyer’s agent (who, of course, is looking to maximize the deal for his/her buying clients). Really, it was because Chuck was an amateur in the real estate game. Here is my tip on how to avoid having this happen to you: Obtain a second or even third opinion on the value of your home before you put it on the market. Valuing homes for sale is a range game; both art and science are involved in the process. But there’s a lot of art, probably more than you think. If you don’t price your home correctly, you risk selling it for less than it’s worth and/or wasting time while your home sits on the

market because it’s not priced correctly. Your objective is to price your home so that it sells quickly and for the highest price possible. Each of us probably has a skewed idea of the worth of our home. Either we think it’s far more marvelous than it is, or we’re so tired of it that we think no one would ever want it. Add to that your hopes and dreams of what to do with your money once you sell, and pricing your own home is a total danger zone. This is indeed an area where a real estate agent comes in handy. However, it’s certainly not the only area. Throughout the rest of this book, we’re going to take a trip through Real Estate Selling. The first section will take up Home- Selling Basics: Understanding the Home-Selling Process, Pitfalls of FSBOs (For Sale By Owner), and Common Mistakes to Avoid. The second section is devoted to Proven Strategies to Sell Your Home for More (e.g., professional marketing strategies adapted for unique situations, thinking like a buyer, knowing and addressing what buyers want and marketing in the new online era), with chapters dedicated to The Secret Strategy to Selling Your Home for More, Home Improvements that Make Sense, Getting Your House Ready to Sell: Staging for Effect, Curb Appeal: First Impressions are Everything, Top-Quality Pictures, and Marketing for Success. The last section wraps up Special Home-Selling Situations that sellers may face, including issues with Selling a Vacant Home, Selling a Distressed Home, Selling an Inherited Home, and Selling Your Home When Divorce Is Involved. And only after all that will I try to sell you something, my very professional real estate services in selling your home for more money with A Last Word: Why You Should Hire Me to Sell Your Home.

CHAPTER 2 Understanding the Home-Selling Process Financially and emotionally, a home is often your largest single investment. That makes selling a home, whether a single-family residence, duplex, or condominium, the single largest, most complex transaction a person will undertake, and for most people, this will occur approximately three times in their lives. It involves new terms and concepts, financial acumen and larger amounts than people usually deal with. Emotions can overtake good judgment. As a seller, you might think, my home, where I invested so much money and sweat equity, is worth more than it truly is. You aren’t considering that the neighborhood was named ‘Most Livable’ in the local paper five years ago, but the old neighborhood has since changed. Emotions almost always lead to problems in a sales price negotiation. Further, real estate transactions involve multiple decisions and often substantial investment in the homeowner’s time, energy, and money. As a seller, you want to find that homebuyer who simply can’t resist buying your house at the highest price. However, to do that, you must provide potential buyers a striking home sales presentation that outshines other homes on the market. This requires creating a fantastic first impression, giving buyers an immediate feeling that they’re traveling up the front walkway of “their” new home for the first time, and not visiting someone else’s.

Selling a house is about falling in love at first sight, from the curb, in those initial (and fleeting) seconds. As I said before, here’s the big news, not everyone gets the price they could when selling their home. Hiring a real estate agent can help. It’s the advising, planning, staging, pre-marketing, marketing, negotiation, and professional know-how that can make all the difference in the world. In a word, it is money well spent.

THE BASIC HOME SALES P ME SALES PROCESS

We begin our look at “Selling Your House for More!” with a practical examination of what the home-selling process is, and how it works. We’ll examine how listing prices are determined and look at various ways that a listing price is set. I will discuss online valuation, professional appraisal, and the great benefit of a Comparative Market Analysis (CMA) by a REALTOR®. I’m also going to drive home the importance of the seller’s time, effort, “sweat-equity,” financial investment, and working as a team with a carefully-selected real estate agent. It’s not a hire- me-and-you-are-done transaction. To get the most money for your home, you’ll have to invest in touchups, improvements, staging, keeping the grass cut, and many other items.

LISTING PRICE SETTING

Setting a listing price is a strategic exercise that aligns the seller’s goals to the selling approach. If the seller is in a situation in which the home must be sold quickly, that calls for a price that will move the home quickly. However, it may forfeit selling for the most money. Where the home is an inherited property and not in the best of condition, but is in a great location, that takes another kind of pricing strategy and might involve repairs and staging to get the best price.

As you see, there are plenty of factors that go into setting a

listing price. Therefore, it’s critical for home sellers to consider what determines their home’s listing price. There is both an art and a science to setting the listing price. It is not a formula, nor simply mathematical. There are many factors that go into the decision, for example, location (even location on the same street), condition, features, and unique amenities. A calculated home value isn’t necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing on the market or unsold. MARKET VALUE, APPRAISAL VALUE, AND ASSESSED VALUE The price at which to list a home is the seller’s decision, although a savvy seller will solicit professional advice or work with a trusted real estate agent to arrive at that decision. Knowing the real estate concepts of “market value,” “appraisal value,” and “assessed value” allows the home seller to more meaningfully engage with a real estate agent when coming to a determination of a home’s listing price. “Market value” is the probable price a property should bring in a competitive, open market under conditions requisite to a fair sale. Essentially, this is a pre-negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood. In other words, in what range do similarly-situated houses in the area/ neighborhood sell for? “Appraised value” is an evaluation of a property’s worth at a given point in time that’s performed by a professional appraiser. Appraised value is an important factor in loan underwriting and determines how much money could be borrowed and under what terms. The Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance.

“Assessed value” is the amount local or state government has designated for specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property isn’t necessarily equal to the property’s market value and in most Connecticut towns, the assessed value is 70 percent of the appraised value determined by the assessor.

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.

ONLINE HOME VALUATION

A place to begin researching a rough estimate of a home’s market value is online. Several free online tools provide an estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. The downside of these systems is that the assessment is based on available public data, with no guarantee of accuracy and often using an algorithm that simply averages comparable sales in the geographic area. These are quick and easy, but do not answer questions regarding factors like location and current local trends. Be aware that in practice, the prices arrived at might be highly inaccurate. The nationwide median error rate for the Zestimate for on-market homes is 1.9%, while the Zestimate for off-market homes has a median error rate of 7.5%.

PROFESSIONAL APPRAISAL

Real estate appraisal (a.k.a. “property valuation”) is the process of developing an opinion of value for real property. This is the “market value,” or what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions almost always require appraisals because they occur infrequently on a given property and every property is different or unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.

The most important factors in a house appraisal are:

• dwelling type (e.g., one-story, two-story, split-level, factory-built) • features (including design); materials used and the type of structure present and how they were built • improvements made • comparable sales • location (type of neighborhood, zoning areas, proximity to other establishments) • age of property • size • depreciation Condition, of course, is a crucial factor in valuation. Location is also a factor, but as property can’t change location, it’s often upgrades or improvements to a residential property that can enhance its value.

A real estate appraiser must be a licensed, specialist with

expertise in your region. Their job is to determine an estimated value by examining the property, looking at the original purchase price, and comparing it to recent sales of similar properties. The fee for this service is usually between $300 and $500. COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ES IS BY A REAL ESTATE PROFESSIONAL This home valuation is free from real estate professionals and more helpful than automated online information. It provides detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market has to be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I’ll be happy to provide you with a Comparative Market Analysis (CMA). See the last page of this book if you would like more information on how to request a free home valuation.

EXAMPLE OF DIFFERING HOME VALUATIONS:

Let’s say a buyer is interested in a home listed at $420,000. The online valuation determines the house is worth $440,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $300,000, the buyer wonders why the values are so different, and if he overpaid.

The house was listed at $420,000 because, at that price, the home

would sell in a reasonable amount of time. Why wouldn’t the appraised value be whatever a buyer was willing to pay? The fact that they paid $420,000 doesn’t mean that is the true value of the home. Certain factors may weigh in (undesirable businesses located near the property, for example). Online valuations can’t take into consideration the condition of the property, or the qualities of the neighborhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. It’s based on a percentage of the appraised value determined by a town official. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all of these items into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the assessment. A CRITICAL PART OF SELLING YOUR HOME FOR MORE IS YOU We’ve seen that there’s no calculable certainty in setting the value of a home. There can be wide differences between the seller’s assessed price, the asking or listing (market price value), and the price at which the home sells (sale price). A market in which homes sell within six months of listing is considered balanced or neutral, meaning enough homeowners are selling and customers buying that neither has an advantage. A variable, such as a major retailer entering or leaving the area, will tip the scale toward sellers to make a “fast” market or toward buyers to create a “slow” one. The average time in a fast market might be 30 days, and the average time in a slow market could be a year. Typically, any number below six months is considered a seller’s market.

Let’s touch on what the homeowner/seller can do to elicit offers

at the listing price, or even above, in a competitive market. As mentioned earlier, the partnership between seller and real estate agent will make an enormous difference in results. The agent can professionally market a home, bring in a qualified prospect, and then the deal is blown because the seller didn’t clear his garage of his taxidermy hobby during a critical showing. Or because the snow isn’t cleared, or because the walls are painted kind of “funky.” There’s only so much even the most talented real estate agent can do. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation by improving, freshening, landscaping, and generally making the home pristine, and to live in that presentation readiness state for the time it takes to sell the property, will greatly affect both the sale period and the price at which the home sells.

CHAPTER 3 Pitfalls of FSBOs

You’ve sold a few automobiles in your day without using a dealer, and you’ve sold some antiques online. You’ve done well by both and consider yourself an astute trader and businessperson. So, now the time has come to sell your home, and you find yourself considering the option of selling it yourself, i.e., For Sale By Owner (FSBO) to try to save on the real estate commission fee. True, some people can sell their property outside the confines of a contractual agreement with a REALTOR®, but the harsh reality is that most can’t, and don’t, and will spend significant time and effort spinning their wheels while qualified buyers come and go, without giving their property any serious thought, or, worse yet, never even knowing it was available. Maybe this is the reason why in 2021, according to the National Association of REALTORS®, “90% of sellers were assisted by a real estate agent when selling their home”. FSBO is the process of an owner selling a piece of real estate without using a real estate broker or real estate agent. In a FSBO transaction, a seller may employ the services of marketing or online listing companies or market their own property, there’s no commission paid on the sale. This is the perceived value of a FSBO. However, sellers often need to pay for the services of an attorney to handle the documents and intricacies of a real estate sale.

THE TIME FACTOR OF FSBO

One detriment to the seller of a FSBO transaction, and a benefit 15

of engaging a real estate agent, is that in the process of selling your house, you’ll spend an incredible amount of time showing it to potential buyers. Unfortunately, many of them aren’t interested in buying your home and this could be a huge waste of your time. Most owners show their home at least 8 to 10 times before making a sale. Sometimes more than 30 times! The average homeowner spends 24 to 40 hours showing their home. It can easily take 80 to 120 hours to complete the process. FSBO homeowners jump at the chance to show their home to anyone and everyone. When a buyer calls, they drop everything. This reactive approach is a big reason it takes them anywhere from 8 to 30 showings to find the right buyer. The process can consume you. Over time, stress begins to build. Not just on you. Repeated showings are stressful for your entire family. It gets worse, as casual buyers continue strolling through and walking away, undecided. Do you have children? Pets? Showings create chaos in their lives, too! Kids are quickly rushed off to a friend’s or family member’s house or whisked away to the park. Toddlers are parked in a playpen so you can begin the hurried cleaning process. Maybe your pet gets locked in a crate, sent to the basement, or tied up in the yard. Your dog can’t run around during the showing or even while you clean house. The poor pooch is stressed and cooped-up for hours every time a buyer wants to stop by. Children and pets don’t do well with chaos. The house needs to be spotless from top to bottom. Someone has to rush around frantically cleaning and organizing every time a buyer calls. Chances are, you’re going through all this stress to prepare for someone who was never serious about buying in the first place.

THE (IN)EXPERIENCE FACTOR OF FSBO SALES O SALES

Unless you’re a real estate agent selling your own house, you’re entering a complex financial and legal transaction without competent assistance. The downfall of giving it a try yourself is that once you price a house, it’s easy to reduce the price, but nearly impossible to increase. If you get it wrong the first time, the only place to go from there is down, and you may end up selling for a lot less than the true value of your property. You might be a great sales professional in your own right and thoroughly knowledgeable in your own area of expertise, but unless you’ve gone through the rigorous training and education to become a licensed real estate professional, you don’t know what it takes to prepare, correctly price, market, and sell a home both quickly and legally. Yes, there are sales techniques that are transferable in any transaction, but a pharmaceutical representative wouldn’t know how to sell a house and a real estate agent would have a great deal of trouble deciphering the world of pharmaceuticals. In fact, both could get into a lot of trouble if they tried and made legal, or even worse, lethal, errors. While you might think that “location, location, location” is all you need to sell your home, that’s simply not true. Yard signs only attract 10% of all homebuyers. It’s even worse for print advertising; only 1% of buyers find their homes through newspaper marketing. You must employ a technically savvy marketing campaign to compete with all dedicated websites, blogs, and social media advertising that bombard the Internet and attract buyers. If none of the above has dampened your resolve to go the FSBO route, another thing to consider is the security concerns of going

it alone. Craigslist can be an effective sales tool, but you must be oh-so-careful about the scammers, criminals, and dangerous people you could potentially be letting into your home. Real estate agents have more secure resources on which to market your property than you have access to, including highly qualified sites such as the Multiple Listing Service (MLS), or Realtor.com. As a FSBO, you’ll have to work within the confines of your accessibility on unknown or unqualified sites. This can be expensive and even confusing and scary. If you’re acting as your own sales agent, how will you determine a credible buyer or someone who is just browsing? Shoppers who cruise the FSBO section of your local newspaper are usually the type of shoppers looking for a deal at rock-bottom prices. A seller’s agent has been trained to ask the potential buyer the right questions to qualify them which saves time showing to “looky- loos” who aren’t really serious or financially equipped to buy a house. Let’s imagine that you do manage to find your perfect buyer on your own. Now, you’re in water so deep that you might be in over your head. This is where you need help from an experienced professional, who will attend to every detail, mandatory disclosures, inspection reports, etc. At the very least, you have to engage a real estate attorney to satisfy all legal requirements. The intent of this chapter is to provide the non-professional with a broad overview of what’s needed to get organized for selling a home, and the difficulties, without the services of a licensed real estate agent. FSBO is not for the faint of heart. Many find it far more productive to partner with a real estate agent because once you start infusing money into preparing your home with the upgrades and repairs, your budget for marketing might be lean. It’s to your utmost advantage to hand the task over to a

professional who will foot most of the bill for the marketing.

NEGOTIATING AND THE FS G AND THE FSBO SALE

An amateur negotiator, or even a person with negotiating experience, but who is transacting business on his/her own behalf, is prone to several negotiating mistakes. FSBO sellers often tend to take negotiating personally and are offended if the prospective buyer makes repair demands or asks for credits. Keep ego out of the transaction and let your smarts and intelligence come into play during negotiation. This is one benefit of having a professional real estate agent’s assistance in the home sale transaction. Negotiating is among the most important professional services that working with a real estate agent offers.

CHAPTER 4 Common Mistakes to Avoid

This chapter compiles mistakes sellers frequently make in the home-selling process, whether working with a real estate agent or not. Note the items here carefully, and learn from those who have gone before, so you don’t make these errors yourself. Save yourself time and money by avoiding these pitfalls.

GUESSING INSTEAD OF RESEARCHING

Basing your home price on what the neighbor down the street listed their home for is not a reliable method of pricing your home for sale. The Comparative Market Analysis (CMA) is your best source for setting an asking price. If a home in your area sells for a lower price, don’t automatically assume yours is worth the same. Your home might have something to offer that the other one didn’t, or the other may have been inadequately or incorrectly marketed. Let the CMA be your guide, and get the advice of a real estate professional. HIRING A REALTOR® BECAUSE THEY SUGGEST THE HIGHEST LISTING PRICE Choosing a real estate agent because they want to put a high price on your home isn’t in your best interest. The real estate agent should know more about the market for your home than you do, so select an agent who can provide you with real numbers and solid marketing plans for your home. The professional you hire to sell your home should be knowledgeable, trustworthy, and quick to answer any questions 21

or concerns regarding the entire selling process.

Avoid this mistake by interviewing agents and selecting the one who offers detailed sales data and a strategic listing price, not just a higher one.

SUBJECTIVE PRICING

You have enjoyed living in your home for years; however, you’ve decided to move on. Don’t let emotional attachments to the home affect how you price it. Memorable moments spent in your home are priceless, literally, because they do nothing to add to the selling price. Selling your home is a business transaction between a qualified buyer and you. The most objective listing price will come from the CMA provided by your real estate agent. It’s unrealistic to add dollars because of the labor spent making the house into your home; the new owner neither benefits from, nor cares about, your efforts. By focusing on the CMA results and maintaining a business-like and professional attitude, you can keep emotions at bay.

FIRST DAY HIGH-PRICE BLUES

The most crucial time for your home is the first ten days on the market. Once your home is on the MLS, you’ll see how much interest is generated. If your price is too high, buyers will pass you by because the home is overpriced. By the time you decide to lower the price, they will have moved on to other properties. As your home sits on the market, buyers will wonder why the home hasn’t sold, concluding that it’s undesirable in some way, and passing it by without a second glance.

Price it correctly initially to generate interest and gain attention from buyers to sell faster. Unrealistic pricing costs money in the long run.

TESTING THE MARKET WITH A HI T WITH A HIGH PRICE

Even if you’re not in a hurry to sell, it’s an unwise move to “test” the market by listing your home at a high price to see how it goes. It may take serious home shoppers months to find a new home, so they are continually looking for new listings, not ones that have been sitting on the market. Thinking that the market will turn in your favor might not prove reliable either. If prices in your area end up dropping instead of rising, you may lose money. Price your home based on current market values and sell it quickly and for more money.

PRICE DROPPING

Another pricing trap to avoid is insisting on a price for your home far above other homes in the area. If your home doesn’t sell after three months on the market, you might decide to lower the price. That’s okay in a stable or increasing market, but if the market in your area is declining, you could be forced to reduce the price even more to catch up to the falling market. Price competitively from the start. Don’t hesitate to reevaluate your local market. Work with your real estate agent to determine the fair market value of your home.

NOT OBTAINING REPAIR ESTIMATES

Whether you plan to repair any faults in the home before listing or leave them undone, obtain estimates for necessary or desirable repairs, and get them from more than one source. This will give you leverage in negotiations since you’ll know exactly

how much the repairs will cost.

SHUTTING OFF UTILITIES TILITIES

Keeping utility services on will prevent weather damage. Additionally, a home without lights is difficult to show and gives buyers the impression that the house needs more repairs than it really does. Keeping utilities on will make it more comfortable for anyone seeing the house. VIEWING HOME STAGING AS AN EXP S AN EXPENSE RATHER THAN AN INVESTMENT What you spend on staging your home can actually boost the sale in terms of time on the market and price received. It can help you make more money. Don’t underestimate the miraculous impact that staging can create.

NOT REPAIRING OR CLEANIN R CLEANING THE HOME

You’re going to lose money on the sale of your home if you’re not prepared to make repairs before listing it for sale. When you act ahead of time, it’s less expensive to fix things, plus it’s an embarrassing (and expensive) proposition to let potential buyers see the faults of the property. Likely, prospective buyers will offer less or demand a credit for the repair work that needs to be done before the deal closes. In addition, experts say clutter is the culprit that eats at the equity and kills deals. Decluttering your property can create a sense of a spacious home. Clearing off the kitchen countertops, overflowing closets, and filled shelves in the den doesn’t cost much, but brings ample reward. Clear the home of all unwanted things. Completely declutter the home before listing.

NOT DISCLOSING ADEQUATELY

When you choose to sell the home without making repairs to systems or structures (e.g., leaky roof, rusty hot water tank, or not-to-code electric), make sure to disclose all maintenance and repair issues. You could be liable for problems you didn’t disclose even in an “as-is” sale, and importantly, this will help you save money and time if the buyers end up discovering the problems themselves and you must deal with them during the closing.

NOT FOLLOWING THE TIMELINE P G THE TIMELINE PERFECTL ERFECTLY

Sales that are timed for financing or tax purposes that miss the timeline even by a single day can cost you extra in taxes or other costs. Therefore, missing a day can mean losing dollars. You need to schedule the deal after consulting with your accountant well in advance to find out whether any tax breaks can apply for long-term capital gains.

SELLING BEFORE GETTING QUALIFIED Y ALIFIED YOURSELF

Entering a contract to sell your home before you get qualified to buy another is problematic. Your financial circumstances may have changed since your last home purchase, and you might not qualify for a loan. Or, your current home might not sell for an amount that allows you to buy the replacement house you have your heart set on. You could end up renting or buying something that is far from ideal. Before deciding to sell your home, get preapproved by a lender you trust. Also, do some research on your prospective housing market to get a good idea how much you’re likely to spend. Make plans in case you need to move right away.

WASTING TIME ON UNQUALIFIED B ALIFIED BUYERS

It’s wasted effort to show your home to someone who can’t buy it. An example is the seller who spent two weeks preparing his home for an acquaintance who wanted to buy his home. The seller spent $1,000 removing an old shed and met with the prospect several times to discuss price and terms. It was well into the process when the seller found out the prospect couldn’t qualify for a loan. Real estate agents spend considerable effort weeding out nonqualified and unqualified home shoppers.

“HOVERING”

Lurking sellers make buyers nervous. Whenever possible, don’t be home when showing. This is impossible or impractical if you’re selling the home yourself, though. Buyers may feel they’re intruding and then rush through. They could be hesitant to talk about changes to the home or features they don’t like. They’ll feel uncomfortable closely inspecting the house in front of you. It’s easier for buyers to visualize themselves in the home when they’re able to walk through and discuss it on their own. If you can avoid it, don’t ask your listing agent to be present for showings. That will limit your activity. Buyer’s agents want privacy with their buyers, and they usually aren’t able to work around your agent’s schedule.

NOT TAKING THE FIRS G THE FIRST QUICK BID

This happens repeatedly. The seller gets a bite early on and is suddenly filled with confidence that the house will easily sell and maybe even get involved in a bidding war. It feels like you’re standing over a pond packed with hungry fish. The first offer doesn’t seem great and you naturally assume there must be bigger, juicier fish to be had. So, you throw the not-so-small- after-all fish back in. Big mistake. That little guy is often the “catch of the day.”

BECOMING FRIENDS WITH THE B G FRIENDS WITH THE BUYER

It’s appropriate, even important, to be friendly, but don’t let the personal nature of someone being in your home allow you to get into too many long discussions with the buyers, because personality conflicts often cloud judgments.

UNDERESTIMATING CLOSING COSTS

Many sellers only consider the amount for which they’re selling their home. They don’t appropriately calculate all the costs associated with the sale and may overlook the following items:

• Real estate commission • Advertising costs

• Attorney or closing agent fees • Conveyance tax (if applicable) • Prorated costs for things like property taxes, homeowner association fees, and utilities • Any other fees sometimes paid by the seller (buyer’s closing costs, etc.)

SPENDING EARNES G EARNEST MONEY GIVEN T Y GIVEN TO YOU

Don’t believe for a second that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. Too many stories tell about sellers who spent the deposit money prior to closing. When the transactions didn’t occur, for reasons such as financing contingency or failure of inspection or repair issues, the buyers had to fight or sue for a refund. FORGETTING TO CANCEL/SWIT CEL/SWITCH UTILITIES AND TILITIES AND INSURANCE 27

Many sellers overlook notifying utilities that they’re moving or applying for utility service at their new home. Call your utility and insurance companies as soon as a contract is signed. Find out how many days of notification they need to switch or cancel service, then let them know when you have a firm closing date.

LETTING EMOTIONS TAKE OVER

Keep calm during the entire home-selling process, especially during the inspection. Be realistic and understand that there will be issues. It’s not unusual to have to take care of some repairs. Don’t let the buyer’s demand to complete a small repair kill the deal. On the other hand, don’t commit to fixing anything in advance, unless you’re committed to handling it emotionally and financially. Decide what type of repairs you can realistically complete. Repairs can end up costing more money than anticipated.

CHAPTER 5 The Secret Strategy to Sell o Sell Your Home for More

Before we get into the nitty gritty of using better marketing strategies to get the most out of your home sale, you need to learn about this high-end tactic to sell your home for top dollar. The rich and famous use this secret strategy to sell their homes. In one instance, a real estate agent reported that this strategy resulted in one condo selling for $110,000 more than a similar condo in the same building. This real estate agent mentioned having intimate knowledge of both condos. Neither listing was bank-owned, a short sale, or a distress sale. The only plausible explanation as to why one home sold for that much more was the seller’s use of this secret home- selling strategy. This strategy is effective in any market, no matter what type of property. It applies equally to houses, apartments, townhouses, or condos. Agents and sellers using these tactics have a greater chance of closing a sale for more money. This real estate agent discovered the secret strategy, almost by accident. He met a wealthy executive who was interested in selling his condo. The owner was willing to hire the agent, on one condition. The real estate agent must agree to use the man’s secret method to sell the condo. It sounded crazy. The agent was naturally skeptical. On the one hand, selling the condo would bring a handsome commission. Conversely, if it didn’t work out, their agreement 29

would expire, and the agent would walk away. The real estate agent decided to give it a shot. He helped prepare the listing. They priced the condo at $554,900. For reference, two similar condos in the same complex were listed for $479,000 and $439,000. With two similar condos listed for less, the agent was doubtful of a sale. The condo went on the market. Almost immediately, he began to doubt the strategy. The condo was showing regularly, but no one was making offers. People were just walking through and leaving. To make matters worse, most visiting agents thought the condo was overpriced. They couldn’t understand why the owner was asking for so much money. After all, a similar condo just around the corner was available for $100,000 less! They counseled their buyers to keep looking and left without making offers. The story is true. The condo had no special attraction that set it apart from the others. This unit wasn’t a penthouse. It was on the sixth floor of a 10-floor complex. The top-floor units weren’t penthouses, either. And the other agents weren’t wrong. The price was indeed high. Still, the owner stood firm. One day, four months, and many showings later, another buyer walked in. This time, it was different. This buyer loved the condo the moment he stepped through the doorway. He made an offer before he finished the tour. The agent couldn’t believe what he had heard! He rushed to call the owner. The owner accepted the man’s offer, while the agent began to worry. Maybe the buyer would find out he was overpaying. Maybe the deal would fall apart. But no, everything worked out.

The place successfully sold for $549,000, a record high! Naturally, the real estate agent was thrilled. So was the owner. He made a substantial profit. The price was $110,000 higher than the condo that had sold two-and-a-half months earlier for $439,000. The higher price wasn’t because prices were rapidly increasing. The next unit that sold (28 days later) went for $435,000. It was a less desirable second-floor unit. Five months later, another similar condo sold for $450,000. So, what made the difference? Would you like to use this secret strategy to sell your home for more money? It does take some extra time and some extra work. But as you can see, the payoff is well worth the effort. What’s the secret strategy? What was the special request the wealthy home seller had for his agent? It was simple. He staged the condo. Staging is the act of preparing a home to make it as visually appealing as possible, which could include re-arranging furniture, adding or removing décor, painting, planting, etc. It might sound crazy, but it results in homes selling for more money. In fact, a whole lot more. Many agents encourage sellers to stage their homes. However, very few of them could ever show you a case study proving it will help your home sell for more money. Fortunately, this real estate agent knew he was on to something. He began researching everything he could find on staging, and the impact it had on sale prices. He put his findings together in a write-up, sharing the tactics the wealthy seller had taught him. He included all the examples he had found as case studies. Here is an excerpt from his report, with one of the case studies he recorded.

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 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 townhouse 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:

4438 Capital Dome Drive sold on August 26.

4456 Capital Dome Drive (5 doors down) sold on July 26, for $40,000 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 details show these two homes are identical in every substantial 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 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: 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. *B. Curry, Real Estate Agent. Used with the permission of the author.

THE 80/20 RULE

Imagine a buyer is in the market for a three-bedroom home and his agent found him five houses to preview. Each meets his general criteria, with similar features, are comparable in price, and are located in his desired area. One would assume the buyer would have a difficult time deciding between the houses. But no matter how similar they may seem, no two houses are exactly

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