Bernie Stephan, Eco Realty - SELLING MARIN & SONOMA HOMES FOR TOP DOLLAR

SELLING MARIN & SONOMA HOMES FOR TOP DOLLAR

Bernie Stephan, Eco Realty

Table Of Contents

Not All Home Sales Are Equal

Understanding the Home-Selling Process

Pitfalls of FSBOs

Common Mistakes to Avoid

The #1 Secret Strategy to Sell Your Home for More

Better Marketing

Top-Quality Pictures

Curb Appeal: Find the Charm and Show It

Staging for Effect

10. Home Improvements That Make Sense

11. Negotiating Tips

12. The Vacant Home

13. The Distressed Home

14. The Inherited Home

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15. Home Sales WhenDivorce Is Involved

118

Forward

Marin and Sonoma counties hold a special place in my heart. For over 30 years, I’ve had the privilege of helping people buy

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and sell homes in these remarkable communities. With their breathtaking landscapes, vibrant neighborhoods, and strong sense of community, it’s no surprise that so many people dream of living here. But whether you’re selling your first home or your fifth, navigating the real estate market in this dynamic region can be both exciting and overwhelming. This book, Selling Your Home in Marin and Sonoma Counties for Top Dollar , is your guide to making the most of your home sale. Drawing on decades of experience as a broker, appraiser, and environmental advocate, I’ll share proven strategies to help you maximize your home’s value, attract the right buyers, and ensure a smooth, stress-free selling process. From staging and pricing to navigating bidding wars and understanding market trends, I’ll walk you through every step of the journey. You’ll also find tips for leveraging cutting-edge technologies and innovative selling options like auctions and off-market matchmaking to get the best results in today’s competitive market. Selling your home isn’t just a transaction; it’s a life-changing event. Whether you’re downsizing, relocating, or moving on to your next dream, I’m here to help you achieve your goals with confidence and clarity. Let’s turn your real estate aspirations into reality.

CHAPTER 1 Not All Home Sales Are Equal

Let’s bust that myth!

Hello! Nice to meet you, and thank you for picking up my book on home-selling strategies that I use to sell homes for more money. If you are reading this book, you’re likely considering selling a home, and I’ve got plenty to share with you. I’m not trying to sell you anything, although my hope is that you will want me to sell something of yours—your house—after reading this book. However, I’m pleased to be of service either way. Later, if you 1

want me to help you sell your property, 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 the experience and professional advice I’ve gathered working with both sellers and buyers. I have worked on both sides of the street, which is invaluable when it comes to navigating the process and reducing the stress of selling. Most sellers don’t venture alone into selling their home. Instead, they find it better to have a knowledgeable, experienced real estate professional they are comfortable with. I wrote this book to provide some of that comfort without the direct stress of salesperson-to-person contact, allowing you—someone interested in selling a home—to learn, reflect, and consider at your own pace. At the end of this book, you’ll find material on why you should consider professional services when selling your home. I want prospective and active home sellers to develop a better understanding of the home-selling process while reducing stress and getting to know the professional services I provide. I’ve also included actionable insights on how best to market your home and avoid critical mistakes like losing $50,000 on a home sale. 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 comparable homes on the market at the same time in the same area. Allow me to shatter that myth. No, every home does not sell for the same price, and it’s not just about location, location, location.

It is anything but that! You can sell your home for more profit

than someone else might, even if they own the same piece of property. You can also sell a comparable home in the same neighborhood for a significantly different price than another homeowner. It’s what you do before the sale that determines how much you will make. That is the big idea of this book—how to maximize your sale potential.

Let’s put this into an example.

Chuck wanted to sell his home. Word got around that Chuck was slated to be relocated; however, he hadn’t started the process of selling his house. It wasn’t listed, and he didn’t have a real estate agent. He hadn’t given much thought to that part of his promotion and move. A fast-moving buyer’s 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 $785,000 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 $780,000 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 $785,000 offer and moved on with his life.

The sale Chuck accepted was quick and easy, just as the buyer’s

agent promised. But it wasn’t painless.

A few weeks later, Chuck’s neighbor sold his house for $925,000. The neighbor’s house was slightly smaller than Chuck’s but otherwise comparable and in similar condition. Why did Chuck sell his house for $140,000 less than his neighbor? What features made his neighbor’s house worth almost 20% more? 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 was worth? Because, unfortunately, Chuck didn’t check with anyone to find out what his house was truly worth on the market. He didn’t get an appraisal or a second opinion. His great mistake was not consulting a real estate professional other than the buyer’s agent—who, of course, was looking to maximize the deal for his buying clients. In reality, Chuck was an amateur in the real estate game, up against a professional. Here’s how to avoid making the same mistake: Obtain a second or even third opinion on the value of your home before putting it on the market. Valuing homes for sale is a range game; both art and science are involved in the process. And 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 or wasting time while it sits on the market because the price isn’t right. Your objective is to price your home so that it sells quickly and for the highest price possible. Most of us have a skewed perception of our home’s worth. 5

Either we think it’s far more marvelous than it actually is, or we’re so tired of it that we see it as a burden no one would ever want. Add in your hopes and dreams for what you’ll do with the money from the sale, and pricing your own home becomes a total danger zone. This is where a real estate agent is invaluable. However, it’s certainly not the only area where professional guidance can make a difference. Throughout the rest of this book, we will cover home-selling basics, including understanding the home-selling process, the pitfalls of FSBOs (for sale by owner), and common mistakes to avoid. Then, we will explore proven strategies to sell your home for more. This includes professional marketing strategies adapted for unique situations, thinking like a buyer, knowing and addressing what buyers want, and marketing in today’s online era. There are dedicated chapters on better marketing, top-quality photography, curb appeal, staging, home improvements that make sense, and negotiating. Finally, we will discuss special home-selling situations, including challenges with vacant homes, distressed properties, inherited homes, and home sales during divorce.

CHAPTER 2 Understanding the Home-Selling Process

Financially and emotionally, a home is often an individual’s or family’s largest single investment. That makes selling a home—whether a single-family residence, duplex, or condominium—the most significant and complex transaction a person will undertake, and for most people, no more than two or three times in their lives. It involves new terms and concepts, financial considerations, and dealing with larger figures than most people typically encounter. Emotions can cloud good judgment. As a seller, you might think, “Surely, my home, where I invested so much money and sweat equity and raised my children, is worth more than what the appraisers, prospects, and buyer’s agents think it is. They aren’t considering that the neighborhood was named ‘Most Livable’ in the local paper!” (That was five years ago, and the neighborhood has since changed.)

Emotions almost always create challenges in pricing negotiations.

Further, real estate transactions involve multiple decision points and often require a significant investment of the homeowner’s time, energy, and money. As a seller, you want to find the buyer who simply can’t resist purchasing your home at the highest possible price. To do that, you must present your home in a way that stands out from others on the market. This means creating a fantastic first impression—giving buyers an immediate sense that they are 7

stepping onto the front walkway of "their" future home, rather than visiting someone else’s. Selling a home is about creating love at first sight, from the curb, in those crucial first moments. As I mentioned before, not everyone gets the highest possible price when selling their home. For example, consider two nearly identical ranch homes on Cemetery Road in Santa Rosa. One home (3 bedrooms, 1 bathroom, 936 square feet, built in 1957) was described as: "Neat as a pin and ready to go. Complete remodel kitchen w/SS appliances, breakfast bar, flattop stove, beautiful tile. Complete bath remodel. Hardwood floors, replaced windows. Great fenced yard, covered rear patio." It was being fought over at $670,000+. Meanwhile, a comparable 3-bedroom, 1-bathroom, 936-square-foot home, built in 1955 on the same street, sold for $611,800. That’s an almost $60,000 difference—enough to cover the real estate agent’s commission and still pocket extra profit. In this case, hiring an experienced real estate agent and following a well- executed plan made all the difference. We’ll explore this further throughout the book. The key factors that sealed the deal were advising, planning, staging, pre- marketing, strategic marketing, negotiation, and professional expertise.

THE BASIC HOME SALES PROCESS

We begin our look at selling your house for more with a practical examination of how the home-selling process works. We will explore how listing prices are determined and the various ways

pricing is set, including online valuations, professional appraisals, and the significant benefits of a current market analysis (CMA) conducted by a real estate professional. I will also emphasize the importance of the seller’s time, effort, and financial investment in maximizing their home’s value. Selling a home is not a simple hire-an-agent-and-you’re-done transaction. To get the best possible price, sellers must be prepared to invest in touch-ups, improvements, staging, lawn maintenance, and other key details.

LISTING PRICE SETTING

Setting a listing price is a strategic decision that aligns the seller’s goals with the market approach. If a home must be sold quickly, pricing it to move fast may mean forfeiting the highest possible price. If the property is inherited and in less-than-ideal condition but located in a desirable area, a different strategy may

involve repairs and staging to maximize value.

Many factors go into setting a listing price, making it critical for home sellers to understand what determines their home’s value. There is both an art and a science to pricing a home. It is not a simple formula or mathematical calculation. The decision is influenced by factors such as location (even differences on the same street), condition, features, and unique amenities. A calculated home value may not align with what a seller believes their home is worth. Recognizing this helps avoid overpricing, which can leave homes sitting on the market unsold.

MARKET, APPRAISAL, AND ASSESSED VALUES

The listing price is ultimately the seller’s decision, but a savvy seller will consult a real estate professional to make an informed choice. Understanding the differences between market value, appraisal value, and assessed value allows sellers to engage meaningfully in pricing discussions. Market value is the estimated price a property should bring in a competitive, open market under fair conditions. This is an opinion of what a house is expected to sell for in its local market, based on comparable properties. Appraisal value is an evaluation of a property’s worth at a given time, conducted by a professional appraiser. It plays a key role in loan underwriting, determining the amount a buyer can borrow and under what terms. For example, the loan-to-value (LTV) ratio is based on the appraised value, and if the LTV exceeds 80%, the lender typically requires mortgage insurance.

Assessed value is the amount designated by local or state governments for taxation purposes. It often differs from market or appraisal value and serves as the basis for property taxes. In many cases, assessed values do not accurately reflect a home’s market value. Approximately 60% of U.S. properties are assessed higher than their current market value, yet this has little bearing on what a home will actually sell for.

WHAT IS YOUR HOME WORTH?

The first step in selling a home is understanding the difference between value, worth, and price. Several factors influence a home’s value, and understanding these factors can help sellers leverage them effectively. online home valuation One way to start estimating a home’s value is through online tools. Several free platforms provide rough estimates based on recent comparable sales in the area. However, these systems rely on publicly available data and automated algorithms that may not be accurate. They do not account for location-specific trends or unique property features. For example, a home in Marin was evaluated using an online tool. The home last sold for $1,180,000 in 1998 and was appraised for refinancing at $1,775,000 in 2020. However, in 2017, an online calculator estimated its value at $1,158,000. The discrepancy arose because the system compared six recent sales—only two from the same high-value neighborhood, while the other four were from lower-priced areas nearby. Local real estate professionals would have been aware of the neighborhood’s true value, but the algorithm failed to capture it.

While online valuation tools can provide general price ranges, they are not reliable for setting a listing price.

PROFESSIONAL APPRAISAL

A real estate appraisal, or property valuation, provides an expert opinion on a home’s market value. This is the estimated price a willing buyer and seller would agree upon in a fair market. Appraisals are essential in real estate transactions because properties are unique and do not change hands frequently. An appraisal is useful in several ways. Sellers can use it as a benchmark for pricing, buyers can use it to guide their offers, and lenders rely on it to determine how much to lend.

KEY FACTORS IN AN APPRAISAL:

• dwelling type (one-story, two-story, split-level, factory- built) • features and materials used in construction • improvements and upgrades • comparable recent sales • location, including neighborhood, zoning, and proximity to amenities • property age and size • depreciation and overall condition While location is fixed, property upgrades and improvements can enhance value. A professional appraiser should be a qualified, impartial specialist with expertise in the local market. The appraisal 12

process involves inspecting the property, reviewing past sales data, and comparing it to recent sales of similar homes.

The cost of an appraisal typically ranges from $500 to $800.

CURRENT MARKET APPRAISAL BY A REAL ESTATE PROFESSIONAL A home valuation provided by a real estate professional is more reliable than automated online tools and is offered for free. This analysis includes detailed information on each home sold in the area over the past six months, along with the final sale prices. It also provides specifics on homes currently for sale, including their asking prices. These properties represent the competition. A real estate professional can also answer questions and help price a home realistically based on current market conditions. By working with a professional, sellers benefit from proven expertise in positioning their home at the best listing price.

A current market analysis (CMA) can provide valuable insight into a home’s market value. See the last page of this book for information on how to request a free home valuation.

EXAMPLE OF DIFFERING HOME VALUATIONS

Consider a buyer interested in a home listed at $820,000. An online valuation estimates the home’s worth at $880,000. Based on that estimate, the buyer offers the asking price, believing it to be a fair deal. The home was listed at $820,000 because, at that price, it was expected to sell within a reasonable timeframe. However, the final selling price does not necessarily reflect the home’s true market value. Factors such as nearby undesirable businesses or the condition of the property may impact the price. Online valuations cannot account for neighborhood characteristics, property conditions, or market demand. In contrast, professional appraisers and real estate agents analyze legal descriptions, on-site inspections, comparable home sales, and other influencing factors like proximity to industry, traffic levels, or future development potential. A CRITICAL PART OF SELLING YOUR HOME FOR MORE IS YOU There is no single, definitive way to determine a home’s value. Differences may exist between the seller’s perceived value, the listing price, and the final sale price. A market in which homes typically sell within six months of listing is considered balanced. In this scenario, neither buyers nor

sellers hold a strong advantage. However, market conditions can shift. For example, the arrival or departure of a major employer or retailer can influence whether the market favors buyers or sellers. In a seller’s market, homes may sell within 30 days, whereas in a buyer’s market, properties may take a year or more to sell. The partnership between seller and real estate agent is critical to achieving the best results. A skilled agent can market a home effectively and bring in qualified buyers, but a deal can still fall through due to preventable issues. A cluttered garage, an unshoveled walkway, or outdated paint colors can turn buyers away. Even the best real estate professional has limitations in overcoming a home’s shortcomings if they are not addressed. The seller’s time, effort, and investment play a crucial role in the process. Preparing a home for sale by making necessary repairs, improving curb appeal, and maintaining a clean, well-presented space significantly impacts both the time it takes to sell and the final selling price. A seller’s willingness to keep their home in show-ready condition for the duration of the listing can make a substantial difference in the outcome.lysis (CMA) can provide valuable insight into a home’s market value. See the last page of this book for information on how to request a free home valuation.

EXAMPLE

final selling price does not necessarily reflect the home’s true market value. Factors such as nearby undesirable businesses or the condition of the property may impact the price. Online valuations cannot account for neighborhood characteristics, property conditions, or market demand. In contrast, professional appraisers and real estate agents analyze legal descriptions, on-site inspections, comparable home sales, and other influencing factors like proximity to industry, traffic levels, or future development potential. There is no single, definitive way to determine a home’s value. Differences may exist between the seller’s perceived value, the listing price, and the final sale price. A market in which homes typically sell within six months of listing is considered balanced. In this scenario, neither buyers nor sellers hold a strong advantage. However, market conditions can shift. For example, the arrival or departure of a major employer or retailer can influence whether the market favors buyers or sellers. In a seller’s market, homes may sell within 30 days, whereas in a buyer’s market, properties may take a year or more to sell. The partnership between seller and real estate agent is critical to achieving the best results. A skilled agent can market a home effectively and bring in qualified buyers, but a deal can still fall through due to preventable issues. A cluttered garage, an unshoveled walkway, or outdated paint colors can turn buyers away. Even the best real estate professional has limitations in overcoming a home’s shortcomings if they are not addressed. The seller’s time, effort, and investment play a crucial role in the process. Preparing a home for sale by making necessary repairs, improving curb appeal, and maintaining a clean, well-presented space significantly impacts both the time it takes to sell and the

final selling price. A seller’s willingness to keep their home in show-ready condition for the duration of the listing can make a substantial difference in the outcome.

CHAPTER 3 Pitfalls of FSBOs

YOU’VE SOLD A FEW AUTOMOBILES IN YOUR DAY without trading into a dealer, and you sell antiques on eBay. You’ve done well by both and consider yourself an astute horse trader and businessperson. So, now the time has come to sell your home, and you find yourself considering the options of selling it For Sale By Owner (FSBO) to save the commission fee. True, some people can sell their property outside the confines of a contractual agreement with a real estate agent, 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. FSBO is the process of an owner selling a piece of real estate without using a real estate broker or real estate agent. While in an 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 an FSBO. However, sellers often need the services of attorneys to traverse the documents and intricacies of a real estate sale, and that cuts into the financial benefit. Although still out of the mainstream in real estate transactions, FSBO transactions seem to be increasing. Zillow reports a doubling of FSBO listings between 2012 and 2014 (up to 4%), ForSaleByOwner.com seeing 24% growth in 2013, and StreetEasy reporting NYC FSBO listings increasing by nearly 30% in that 18

same period. According to a 2016 report by the National Association of REALTORS® (NAR) regarding home buyer and seller trends, Home Buyer and Seller Generational Trends Report 2016, 8% of surveyed real estate transactions between July 2014 and June 2015 were FSBO. That said, fully 92% of home sellers prefer the use of qualified representation (i.e., a REALTOR®) in such a major transaction.

THE TIME FACTOR OF FSBO

One detriment to the seller of an FSBO transaction, and a benefit 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, most of them aren’t interested in buying your home. This is a waste of your time. On average, it takes three to four hours to show a home. Most owners show their home at least 8 to 10 times before making a sale. Sometimes more than 30 times! The average owner 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 will consume your life. 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 the house. The poor pooch is cooped up for hours every time a buyer wants to stop by. Children and pets don’t appreciate chaos. They might start misbehaving or need extra attention to counter the stress. 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

When I started in the real estate business, I made a good living chasing FSBOs. I would call them, find out what price they were asking, and determine whether I could sell the home for more on the MLS. I sold a lot of homes and netted the former FSBOs more money in their pocket. That’s because I’m a real estate agent, and the sellers were not. It really is that simple. Unless you’re a real estate agent selling your own house, you’re entering a complex financial and legal transaction without competent assistance. An FSBO seller is analogous to self- performed dentistry or putting up a pro se (self-represented) defense in a murder case. 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 it without the herculean effort of starting a bidding war. 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 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 home buyers. 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 be potentially 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), Zillow, or Realtor.com. Zillow no longer allows FSBOs to post listings directly to their site. A licensed agent has to post the listing in their MLS, then let the system syndicate to Zillow. As an 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 who is a credible buyer and who is just browsing? Shoppers who cruise the FSBO section of your local newspaper are usually the type of shoppers who are looking for a deal at rock-bottom prices. A seller’s agent has been trained to ask the right questions about the qualification of the inquiry in order to save 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, title searches, etc. At the very least, you have to engage a real estate attorney to satisfy all legal requirements. Real estate agents take care of it all, and you can relax, knowing that you aren’t going to face any potentially serious legal repercussions. 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 FSBO SALE

An amateur negotiator—or 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 a benefit of a professional real estate agent’s assistance in the home sale transaction.

Negotiation is covered in more detail later in chapter 11.

CHAPTER 4 Common Mistakes to Avoid

This chapter compiles frequently made mistakes sellers 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 REAL ESTATE AGENT 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 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. Then 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, subsequently refined by negotiation with a qualified buyer. It’s also 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 10 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 out of their price range. 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 not a wise move to “test” the market by listing your home at a high price to see how it goes. Serious home shoppers may take 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.

By pricing your home based on current market values, you can sell your home more 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 house before listing or leave 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 know exactly how much the repairs will cost.

SHUTTING OFF UTILITIES TILITIES

Keeping utility services on will prevent weather damage. Additionally, a house 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 INVES AN 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. A typical home-staging expenditure might range from 1-3% of the listing price of a home. On the other hand, it may result in selling the house for 5-10% more. 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, and it’s an embarrassing (and expensive) proposition to let potential buyers see the faults of the property during the open house. Likely, prospective buyers will offer less or demand a credit for the expense of the repair work that needs to be done before the deal closes. 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 immediately, before listing.

NOT DISCLOSING ADEQUATELY

Where 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), ensure 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 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 be able to 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 was far from ideal. Before deciding to sell the house, 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 a 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 showing to 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 the owners. 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 must be home, try to stay out of the way and answer questions only when asked. If you can avoid it, don’t ask your agent to be present for showings, either. That will limit your activity. Other agents want privacy with their buyers, and they don’t usually have time 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 a 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. Watch what is said in discussing items related to the house and neighborhood. Remember, this could be their new home. You’re no doubt excited about moving. But buyers will start second- guessing. A casual statement about the house “really being too small for a growing family,” or “the schools are going through some changes” might be enough innocent chatter to squash their interest.

UNDERESTIMATING CLOSING COSTS

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

• Real estate commission • Advertising costs

• Attorney or closing agent fees • Excise/gains tax (if applicable) • Prorated costs for things like property taxes, homeowner association fees, and utilities • Any other fees sometimes paid by the seller (appraisals, inspections, 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. 31

Another advantage to using a real estate agent is that the agent is a neutral party who can keep the deposit safe until closing day, and make sure your contract dictates what should happen to the funds if the transaction falls through.

FORGETTING TO CANCEL/SWIT CEL/SWITCH UTILITIES AND INSURANCE

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

Stay calm throughout the home-selling process, especially during the inspection. Be realistic—there will always be some issues, and it’s common to handle minor repairs. Don’t let a buyer’s request for a small fix derail the deal.

At the same time, avoid making premature commitments (e.g.,

“Sure, we can put on a new roof”) unless you're fully prepared to follow through, both emotionally and financially. Carefully consider which repairs you’re willing to take on, as they can sometimes cost more than expected.

CHAPTER 5 The #1 Secret Strategy to Sell Your Home for More Before diving into advanced marketing strategies, let’s explore a high-end tactic that can help you sell your home for top dollar. The rich and famous use this secret strategy to maximize their home sales. In one case, a real estate agent saw this approach lead to a condo selling for $110,000 more than a comparable unit in the same building. Both condos were in similar condition. Neither was a bank- owned property, short sale, or distress sale. The only major difference? One seller used this secret strategy. This technique works in any market, for any type of property—single-family homes, apartments, townhouses, or condos. Sellers and agents who implement it have a better chance of securing a higher sale price.

A REAL ESTATE AGENT DISCOVERS THE SECRET

A real estate agent stumbled upon this strategy almost by accident when he met a wealthy executive looking to sell his condo. The seller was willing to hire him—on one condition: The agent had to agree to use his “secret method” to market the condo. Skeptical but intrigued, the agent agreed. They priced the condo at $854,900—significantly higher than two similar units listed at 34

$779,000 and $739,000. The agent doubted it would sell.

PUSHBACK FROM OTHER AGENTS

The condo received frequent showings, but no offers. Buyers walked through and left. Other agents thought the price was too high. They advised their clients to look elsewhere, citing a nearby condo selling for $100,000 less. The unit itself had no unique features—it wasn’t a penthouse or even on the top floor. The listing price seemed unrealistic.

But the owner refused to budge.

Then, after four months, everything changed.

THE BREAKTHROUGH SALE

A buyer walked in, fell in love with the condo immediately, and made an offer before finishing the tour. The agent was shocked but quickly relayed the offer to the seller. The deal closed at $849,000—a record high. The agent couldn’t believe it. Two and a half months earlier, a comparable unit had sold for $110,000 less. The sale wasn’t due to rising market trends—another unit sold for $635,000 just 28 days later, and five months after that, a similar condo sold for $650,000.

So what made the difference?

THE SECRET STRATEGY

The seller insisted on staging the condo.

Staging—strategically arranging and decorating a home to enhance its appeal—helped this property sell for significantly more. Many agents recommend staging, but few can prove its impact with real-world examples. Fortunately, this agent recognized its power and began researching staging’s effect on home prices. If you’re serious about maximizing your home’s value, staging is a proven way to do it. It requires extra effort, but as this story demonstrates, the payoff can be well worth it.

THE 80/20 RULE IN ACTION: BUYERS FOCUS ON UNIQUE FEATURES This buyer’s offer wasn’t based on the 80% of features this house shared with others. Instead, his bid was driven by one unique attribute: the pool. The 80/20 Rule predicted the sale of this house. Unfortunately, a lot of time was wasted finding the perfect house. 36

Had the agent known to focus on the 20% difference, this could have been their first stop. As a seller, you can leverage this rule to your advantage by drawing attention to the defining characteristics of your home. In one real example, a real estate agent was contacted by an out- of-town client. He didn’t present a list of criteria for his house hunt—he simply said he liked the area. The agent drove him from house to house. Each time, the buyer made offers 10-20% below asking price and refused to budge. The agent began to think the entire day was turning into a waste of time. The last house of the day had little curb appeal. It wasn’t particularly attractive, but the agent was out of options. Yet this house broke the tough negotiator down. Suddenly, he was willing to offer full asking price. What set this house apart? It wasn’t that he had a thing for unattractive homes. The 80/20 Rule had kicked in again. THE 80/20 RULE IN ACTION: BUYERS PAY MORE FOR UNIQUE FEATURES This agent and her client had spent the entire day looking at homes that shared 80% of the same features. The buyer didn’t care about any of them. To him, a bedroom was just a bedroom. He fell in love with one remarkable feature of this “ugly” house: a large window with a breathtaking view. The showing happened at sunset, just as the sun dipped below the tree line. That view sealed the deal. The other 80% of the house could be addressed later. His decision was based entirely on the setting and the view. That single element sparked excitement, and he immediately offered full asking price—without negotiation.

This is the power of the 80/20 Rule.

Learn to leverage it, and you won’t have to settle for less than your asking price. Highlight a unique selling point. Buyers who fall in love don’t haggle over pricing; they make strong offers. In some cases, the 80/20 Rule can even make a sale happen without a showing—saving valuable time. THE 80/20 RULE IN ACTION: A SALE WITHOUT A SHOWING

The house in this next example had sat on the market for months.

Unlike the previous story, this home wasn’t unattractive. In fact, it was a brand-new, custom-built house. But nobody seemed to care. It sat on the market for over seven months without a single offer. The builder couldn’t understand why his beautiful new home wouldn’t sell. Frustrated, he fired his agent and hired a new one. Fortunately, the new agent understood the importance of identifying unique features. After touring the house, the agent discovered what had been overlooked: the home sat on a stunning five-acre lot. Other homes in the area were on one- to two-acre lots. This home not only had more land, but also far more privacy. The new agent shifted the focus to the lot size in the marketing materials. He described the home’s features but emphasized the spacious, private acreage. Soon, his phone rang. A buyer who was relocating had previously overlooked the listing. Now, with the new description, he was

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