Richard "RJ" Freedkin, Realtor - SECRETS OF SOPHISTICATED HOME SELLERS

SECRETS OF SOPHISTICATED HOME SELLERS

SECRETS OF SOPHISTICATED HOME TED HOME SELLERS

Richard "RJ" Freedkin, eedkin, Realtor

Table Of Contents

Introduction

First Steps to Home Selling

Pareto's Principle

Creating Curb Appeal & the HGTV Syndrome 27

Staging & Photography

Upgrading with ROI in Mind

The Three D's

How to Market Your Home & Digital Marketing 75

Common Seller Mistakes & What You Need To Know If You Need To Sell In Order To Buy

10. Learn From Other's Mistakes

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11. Finding Buyers

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12. Be A Power Negotiator

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13. The Dos and Don'ts of Negotiating

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14. Bargaining Chips

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15. Why Hire An Experienced Agent?

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Foreword SEE MY 2024 MARKET UPDATE LOCATED AFTER Q TED AFTER QR CODE SECTION AT THE END O T THE END OF THIS FORWARD

When I first ventured into the real estate industry over 40 years ago, I did so with the hopes of helping homeowners like you avoid the headaches often associated with the Real Estate Industry. In my many years of experience, not only have I helped alleviate the stress of real estate transactions for thousands of clients, but I’ve also

accumulated years of knowledge and experience which has helped them get more money for their homes in the least amount of time. (for more information on my background, see my Biography in the section immediately following this forward) I've decided to share much of my expertise in one place with potential clients. Hopefully, that’s why you’re reading this book now. I want to help you have the best possible home-selling experience. And by that, I mean I want you to... 1) Get the most money possible for your home, 2) Sell in the least amount of time, and 3) Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including:

- Secret strategies to sell your home for more money - Marketing techniques employed by top agents - Advice on how to appeal to today’s buyers

And much, much more!

If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home quickly and for the most amount of money. Also, if you know of anyone who is looking to sell their home and if you found this book helpful, I would appreciate it if you could please pass it on so they too can get the same critical information to help them with their home sale as well. Thank you.

Happy reading!

Richard “RJ” Freedkin, Realtor CRS, RENE, SRS, ABR, LHC Brokered by eXp Realty, LLC 10N. Martingale Rd., Suite 400 Schaumburg, IL 60173 (847) 922-8423 RjGetsItSold@gmail.com www.rjgetsitsold.com

Please Scan The QR Code or Type in The Website Address to View an Important Video Message I recorded For you.

or go to

www.WhyUseRichard.com

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Selling a home and getting it "show ready" may involve the investment of some funds to get you and your home in the best position to sell it for the most amount of money. Many times the additional money you get for your home after this work is completed is multiples the cost you invested - so it only makes sense to do the extra work. I would be happy to consult with you to point out the best updates that will get you the most amount of money for your home with the least out-of-pocket cost.

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I have written a FREE detailed and comprehensive 60 page booklet entitled:

"GET YOUR HOME READY TO $ELL!" O $ELL!"

This booklet covers in depth everything you need to know about how to prepare your home properly for sale. Please contact me if you would like a free copy of my booklet.

Contact me at:

(847) 922-8423 or email me at RjGetsItSold@gmail.com

p.s. if you are reading the digital version of this book and would like a hard copy, please contact me and I will be happy to get one out to you!

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ADDITIONAL SELLER RESO ELLER RESOURCES SCAN CODES TO READ AB O READ ABOUT EACH TOPIC

HOME BUYER RESOURCES SCAN CODES TO READ AB O READ ABOUT EACH TOPIC

MARKET UPDATE JANUARY 2024

If you are reading this and it is after January 1st 2024, you may know that interest rates have more than doubled from earlier in 2022. Interest rates were around 2.75% to 3.5%. As of this writing interest rates are now around 7.00%. You may think that the sky is falling when looking at these rates, and are disillusioned and depressed about the current market. Perhaps you thought you missed the boat on the selling market and are thinking you should just sit back and wait. Consider that the current rate is actually still very low as it is slightly below the average rate over the last 40 years. (see interest rate chart below)

How do I know this? I have been in real estate since 1976. I have seen many up-and-down market trends and interest rate fluctuations over the span of more than 40 years. You may have also seen home prices dropping in some areas and in some areas they are dropping more than in others. However, there is still very low inventory and as long as there are more buyers than sellers, there will still be upward pressure on home prices. Homes that are in good condition and priced properly are still seeing multiple list and over-list price offers on them. Perhaps not the 20, 30, or more than what we were seeing earlier in 2022 but perhaps 2, 3, 4, or even 5 offers. Listing agents who understand the current market, price their listings properly and still see good activity and quick offers and sales. During the last 10 years homes averaged about 3.8% appreciation per year, however over the last couple years home prices increased many months at a whopping 2% per month (or even more) and averaged 14.5% year over year (as of June 2022). What we all have seen the last couple of years simply is not a normal market. We are now headed back into a normal market. This will not result in depreciation but rather in deceleration. This means that as long as we have low inventory as stated about we will still have upward pressure on prices but more in line with a normal price appreciation market. Did you miss the boat? NO! Keep in mind that there are many more factors affecting inventory. There are going to be even fewer home sellers entering the market because just about everyone who owns a home has refinanced it to a low 3% or better interest rate. Many sellers who may have considered selling previously may no longer want to sell because they don’t want to sell a home at 3% just to buy a new more expensive one with a mortgage rate of 6% or 7%. They do not understand what you now understand but this situation will still put upper pressure on prices so thinking that this is a bad

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time to sell is just not logical.

Maybe you worried about selling your home but not being able to buy a new one because of the low inventory? No worries, I have special programs to find you OFF Market homes in locations you want to buy in that NO OTHER BUYER will ever know about.

Are you worried about giving up a low rate that you may have on your current home only to get a much higher rate on a new home? Don't be. As you have just learned, home prices are going to continue to move up albeit slower than previously. Keep this saying in mind... "Date the Rate and Marry the House". What this means is that if you found a home you love... BUY IT NOW. Interest rates fluctuate and you can always refinance when rates drop (which they will). You can also utilize other types of creative interest rate products such as 2-1 buydowns or adjustable rate mortgages to get lower rates now while waiting for the rates to drop and refinance later. There are many negotiation strategies that a good agent can use in this changing market to help you not only get a higher price on your home but also get it sold quickly and find you your next great home. Having a good agent representing you on your home sale will help you take advantage of these unique negotiation strategies versus newer and less experienced agents.

Questions? Give me a call! (847) 922-8423

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About Richard "RJ" Freedkin

Richard Freedkin is a Full-Time Licensed Realtor who has spent over 40 years in the Real Estate Arena where he has acquired considerable in-depth real estate knowledge and expertise. Within that timeframe, he successfully built, owned, and operated a prominent mortgage brokerage firm originating more than 20 million dollars of mortgage loans per month, bought, sold, and managed millions of dollars of

real estate, served as a general contractor rehabbing both single- family homes and apartment buildings, and became an author and sought after national speaker on the subject of selling homes quickly and for the most amount of money. There isn’t any aspect of Real Estate he doesn’t thoroughly enjoy, including helping his clients achieve their goals and dreams. Richard’s journey began in 1976 while working as a clerk in the mortgage department of a local mid-sized Chicago Savings and Loan Association. Within 10 years’ time, he climbed the ladder of success to senior management, where he spearheaded every facet of the mortgage department’s operations. In 1986, with all the valuable first-hand knowledge and experience he acquired, he decided to establish a mortgage brokerage of his own. Soon, his company became the third-largest mortgage brokerage across Northern Illinois, originating 20+ million dollars in monthly mortgage loans. Ultimately, this staggering success led to an array of prestigious awards from industry giants like Bank of America and Countrywide Funding.

Twenty-five years into his mortgage career, Richard was catapulted into the real estate investing space, where he successfully purchased, sold, rehabbed, and managed millions of dollars worth of real estate. As his accomplishments continued to gain momentum, he was inspired to write his debut book/ course, a 260-page “how-to” publication that teaches people all his unique systems on the art of selling homes in record time and for the most amount of money. Before he knew it, he became the go-to resource and sought- after expert on selling homes and was often invited to speak at esteemed real estate seminars and conventions nationwide. To this day, his cutting-edge marketing methods and systems have helped thousands of fellow real estate investors and homeowners across the nation achieve success with their properties. Using his Real Estate Broker’s License, Richard leverages his vast real estate knowledge, extensive experience, and unique systems to ensure his client’s goals turn into reality without the hassle typically associated with the industry. Richard also studies and utilizes extensive negotiation strategies ensuring whether you are a buyer or seller, that your interests and hard-earned money are well represented. He has studied, passed stringent curriculum courses, and received several Realtor Certifications and Designations such as:

CRS - Certified Residential Specialist RENE – Real Estate Negotiation Expert ABR – Accredited Buyer Representative SRS – Seller Representative Specialist LHC - Luxury Homes Certified VA Certified Agent Certified “Express Offers” Agent

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When you're ready to move to the next step of buying or selling your home, Richard would be honored to work with you to guide you through the entire real estate process! WHY USE RI E RICHARD FOR YOUR REAL ES UR REAL ESTATE TRANSACTION? Richard loves helping people with their real estate needs. He has spent his entire life helping people in real estate. He is passionate about making sure his clients are treated properly and well informed. WHAT SETS RICHARD APART FROM OTHER REAL ES THER REAL ESTATE AGENTS? Knowledge, experience, attention to detail, and superior negotiation skills. For over 40 years, Richard has been involved in over 8000 real estate transactions in various capacities and understands all the complexities of the real estate marketplace. Richard was a national speaker on real estate investing, has bought, sold, negotiated, managed, and rehabbed millions of dollars of real estate, and has authored several books on the subject. You can rest assured Richard has the knowledge, background, experience, and passion to help you with all your real estate needs. If you are buying, Richard uses all his knowledge and expertise to fight to get you the lowest price and the best terms for your home purchase. If you are selling a home, Richard uses all his knowledge and tools to fight for every penny of your hard-earned equity and strives to get above-market prices and the best terms for your home sale.

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Give Richard a call at (847) 922-8423 (847) 922-8423to discuss all your options.

Richard's Certifications & Richard Featured In Top Agent Magazine (QR Code Links to Article)

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CHAPTER 1 Introduction

The largest investment most people make is their home. That makes selling a home - whether a single- family residence, duplex, 2-4 flat, condo, or townhome - the single largest, most complex transaction most people will ever undertake. It involves new terms and concepts, financial acumen, and larger figures than most normally deal with.

It is also one in which emotions may come into play to the detriment of good judgment, Surely , the seller thinks, my home where I raised my children and made so many memories is worth more than the bricks and mortar it contains. Real estate transactions involve dozens of decisions and substantial investments in a homeowners' time, energy, and money. Emotions almost always lead to problems in negotiating the sale price and other crucial sale terms. The home seller's objective is to find that particular home shopper who cannot resist buying the home for the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market in your area. It requires making a fantastic first impression, creating in the buyer's mind an instant feeling that they are traveling up the front walkway of their new home for the first time, and not visiting someone else's. It's about falling in love at first sight, from the curb, in the initial fleeting seconds.

Most sellers do not venture alone into selling their homes. They find it better to have an experienced real estate professional with whom they feel comfortable. This book was written to provide some of that comfort without the direct and often high-pressure sales stressors some agents may exhibit during person-to-person contact. I want the prospective or active home seller to independently achieve a better understanding of the home-selling process. I have also provided actionable insight into how to best market your home, avoid critical mistakes and maintain a proper focus. Let this book be your go-to resource for information, strategies, and techniques that can be put to work to sell your home quickly and at the best price possible. Take time looking through the various chapters and master the secrets of successful home sellers. For example, discover why comparable homes sell for considerably different prices. Be ready to sell by knowing your home's current market value, best listing price, how to market the home properly, negotiate the best terms, and what improvements have the best Return on Investment (ROI). My sincere hope is that this book will help you make the most of your time and efforts to sell your home. While there are 15 chapters in this book, we can break them into parts that are explained below: In Part 1, the process and importance of preparing your house for sale are examined: how to present the home to get the top offers, the "80/20 rule", and which upgrades will make the most difference in ROI.

Part 2 delves into marketing your home with a look at costly mistakes, avoiding those mistakes, and finding qualified buyers. We examine the critical topic of negotiations - what to expect and how to conduct them. In Part 3, we finish with a look at what engaging a real estate professional brings and the process of getting the most dollars in your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute licensed real estate professional can vastly cut the time and raise the economic value of your transaction. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, you might want to talk with me. I stand by to assist you with a Current Market Analysis (CMA) and a solid marketing plan to fit your needs and lifestyle. If you are reading the digital version of this book and would like a hard copy to make notes in and as a handy reference guide, please let me know and I will be happy to get you one!

Richard "RJ" Freedkin, Realtor CRS, RENE, SRS, ABR, LHC eXp Realty, LLC

(847) 922-8423 RjGetsItSold@gmail.com

p.s. - No matter what other people may tell you, I always recommend having an attorney represent you on ANY real estate transaction. If you need a referral, I deal with many extremely qualified real estate attorneys. They usually operate on a small flat fee for their services and it is well worth the cost to protect yourselves and have someone looking out for all your legal interests.

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A NOTE ABOUT RECENT CH T RECENT CHANGES IN HOW AGENTS ARE COMPENSATED: TED: In August 2024, the NAR (National Association of REALTORS®) changed how real estate agents are compensated. As a seller, it’s important to know that agent compensation is not fixed by law and it is no longer listed in the MLS (Multiple Listing Service). Instead, these terms are negotiated directly between the parties involved. This change provides more flexibility in how compensation is structured, whether it’s a percentage of the sale price, a flat fee, or another arrangement. A thorough listing agreement should include clear disclosures specifying the compensation terms and other key details to ensure transparency and mutual understanding.

CHAPTER 2 First Steps to Home Selling

"But You Gotta Know the Territory" - and Terminology

Location! Location! Location! as you may have heard, is the most crucial consideration in real estate and a major factor, if not the predominant one in real estate pricing. Novice (and not-so- novice) home sellers alike must know the considerations — such as location — that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value many times is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold and ultimately ends up selling for less than they would have had they been priced properly in the first place. Familiarity with the real estate terms: market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to more meaningfully engage in setting a home’s listing price. The most-used definition of market value is “the most 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 to its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood. More simply it is also defined as "What a seller is willing to sell at and what a buyer is willing to buy at". The "appraised value" is an evaluation of a property’s worth at a given point in time that is performed and determined by a professional appraiser. The appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what terms. For example, the Loan to Value (LTV) ratio is based on either the appraised value or sales price; whichever is less. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. For example, if the sale price of a home is $400,000.00 and a buyer is putting down 20% (borrowing 80%) the loan amount would be $320,000.00. If the appraisal came in at only $390,000.00 then 80% would be a loan of $312,000.00. In this case, if the buyer still wanted to borrow $320,000.00 and still purchase the home for $400,000.00 (unless the seller is willing to renegotiate the price), the buyer would now be borrowing 82.05% of the appraisal and the lender would require mortgage insurance. "Assessed value" (different from appraised value) is the amount local or state government has designated for a specific property and frequently differs from market value or appraised value. The assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of a piece of real estate is not necessarily equal to the property’s market value or its appraised value. Approximately 60% of U.S. properties are assessed higher than their current market value; however, this does not reflect the home’s actual value.

WHAT IS YOUR HOME TRULY 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 EVALUATION

Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. Note that the assessment is based on available data with no guarantee of accuracy and often uses an algorithm that simply averages comparable sales in the geographic area. These tools might be quick and easy, but they don’t take into consideration factors like location, current local trends, and the condition or upgrades of the property. Be aware that the prices arrived upon might be highly inaccurate. Example 1 - I recently sold a home in Sycamore IL for $247,000.00. I had taken over the listing from a previous agent who had it on the market for 9 months and got ZERO offers. I agreed to take the listing on the condition that the seller would make some very minor cosmetic changes such as painting a couple of rooms with a current popular color scheme. With their agreement, I also agreed to list the home for the very same price as the last agent. Within 5 days of my listing going live, I had an open house. I had 10 families come through and sold the home to a couple that saw the home that weekend. I sold it for a price within 1% of the listing price! You may be asking, what does this have to do with inaccurate online databases? Well... 3 weeks after

closing the sale of this home for $247,000.00 I received an email from that company that starts with the letter "Z" and sounds like "pillow" stating "This Home was just Sold for $988,000.00"! Now I may be a good Realtor... But I'm not that good! This just proves that the online company's data is highly inaccurate! (yes I have a copy of this email if you would like to see it) Example 2 - A home in Ohio was put into one such system, Redfin (https://www.redfin.com/what-is-my-home-worth). The home last sold for $180,000 in 1998; it was appraised for refinancing in 2015 at $275,000. In 2017, Redfin’s calculator valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 square feet) in a four-block area of “Grand Old Ladies” at $158,000. The apparent reason is that the six “comps” (comparable recent sales) included only 2 homes in this desirable neighborhood (over $300,000), while four others outside this small neighborhood, although close, sold for $150,000 to $199,000. Because the system doesn’t understand the makeup of the area and simply pulled prices from a broader geographic area, the arrived-upon price was far below what it should have been. These tools are worthwhile for obtaining “comps” of area sales; however, they are not highly accurate in arriving at a proper listing price.

EXAMPLES OF DIFFERING HOME EVALUATIONS

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 the 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 whether he overpaid. The seller listed the home at $420,000 based on the online calculation of $440,00 thinking, at that price, the home would sell quickly and perhaps for even more. Why would the appraised value not be whatever a buyer was willing to pay?

The fact that they paid $420,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located

near the property, for example. Online valuations cannot possibly take into consideration the condition of the property or the qualities of the neighborhood.

Unlike the definition that market value is what a seller is willing to sell at and what a buyer is willing to buy at when you have a lender involved, it becomes "at what value a lender is willing to lend against". This is why lenders perform appraisals. Unfortunately, however, I can hire 3 appraisers to appraise the same piece of property, and many times the values of all 3 appraisals will be different from each other - but they should be close. Since an assessed value is for tax purposes only, it can be much more or much less than the market value. Most homeowners believe mistakenly that they should be the same, but usually, they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will consider all these things when assessing a home. Other details such as location near industry, high traffic, or potential development will also affect the appraisal value.

PROFESSIONAL APPRAISAL

No tools or books determine the exact price a piece of real estate will ultimately sell for. The final determination is what the home ended up selling at (within the scope of market forces and appraisals from a lender if the home is going to be financed). Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the

stock exchange.

Real estate appraisal (“property valuation”) is the process of arriving at and developing a perspective of value for real property. This many times (but not always) is also close to its market value — i.e., what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions generally require appraisals because the same property does not sell every day or month or even every year, they happen infrequently. Every real property is unique in features and characteristics and the market is constantly changing. A property that sold for $300,000.00 7 years ago could be worth far more or less than that amount today and also could have been updated or degraded since the last time it sold. An appraisal helps in various decision points. The seller can use a recent appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to determine how much money to lend to their borrowers (provided their income qualifies for the loan).

The important factors in a house appraisal are:

• Dwelling type (e.g., one-story, two-story, split-level, factory- built • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • Comparable sales • Location — the type of neighborhood, zoning areas, proximity to other establishments • Age of property • Amenities • Size • Depreciation

Condition, of course, is a crucial factor in valuation. Location is also a factor. However as a property cannot change its location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. Most lenders are required to use outside independent real estate appraisers so a bank officer can't demand what price to appraise the property at. The appraiser's job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales of similar homes with many of the same amenities, square footage, etc. Then they make appropriate adjustments up or down to each of the comparable sales based on those updates or differences to arrive at an adjusted value of each comp. These adjustments allow the appraiser to end up with a final value for the property they are appraising. COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ES IS BY A REAL ESTATE PROFESSIONAL (CMA) AL (CMA) This type of home valuation is free from real estate professionals (Realtors) and, depending on the knowledge of the Realtor, can be considerably more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months to a year, along with the final sale price. It also includes the specifics of all the comparable houses currently for sale as well as currently under contract 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. Some CMA's may also contain expired listings which typically means they were probably overpriced and thus did not sell.

Along with an understanding of how the value of a home is determined, the current market must be considered. By utilizing a professional real estate agent like me, you can rely on 40+ years of proven expertise in valuations to market your home at a price that will get the most showings and the highest offers. I will be happy to provide you with a Comparative Market Analysis. As you may or may not know from reading my bio, I owned a mortgage company and was in the industry for over 25 years. I had taken many appraisal courses and even received an IFA certification (independent fee appraiser) although I did not pursue getting licensed for that. I was also the head underwriter for a bank mortgage department before opening my own mortgage company. I have personally underwritten over 8,000 appraisals in my 40+ years of being in real estate. My extensive real estate background makes me uniquely qualified to provide you with a very accurate valuation of your home. Please refer to the section towards the end of this book entitled "What is Your Home Truly Worth?" if you would like to request a free home valuation from me.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Prior discussion showed that there is no calculable certainty in setting the value of a home or even getting to a final exact negotiated price. There are just too many variables. There can be wide differences between the county's assessed valuation, the asking or listing price, the appraised value, and the price at which the home ultimately sells for. Let’s turn to what the homeowner/ seller can do to elicit offers at the listing price, or even above, in a competitive market. 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, adding or

manicuring the 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 as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing date is considered balanced or neutral, which means a good number of homeowners are selling and buyers are purchasing; therefore, neither has an upper hand. A variable, for instance, like a major company entering or moving from the area can easily tip the scales in either direction. The typical selling time in a hot market might be 30 days or less, while that of a slow market might be nine months to a year or more.

LIVING IN A SWIRLING FISHBOWL

Unless you have already moved to your new home, a house on the market requires keeping the home in a constant “show-ready” condition, and adjustment to changes in day-to-day life that are inherent in the process. Unrepresented Sellers can expect to get phone calls at all hours from unrepresented prospects and even buyers’ agents to show the home. However, if a seller is represented by a Realtor, those become few and far between as the marketing is tailored for all calls and showings to go directly through the listing agent. There are additional upheavals to a seller's daily routine when selling a home such as frequent updates by phone, email, and text, showing appointment scheduling messages, possible repair and reconditioning appointments, and home inspections and appraiser appointments. The house will also need to be professionally photographed for online, periodical, or brochure presentations as well as 3D interactive tours (which I do on just about every home I list). The first week a home hits the market you can expect multiple and repeated showings. It is important to keep your home in

pristine showing condition for impromptu and last-minute showings — the perfect prospect might just drop in at dinnertime. Rude, perhaps, but necessary to accommodate.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD EEN, UNHEARD

Children and pets are distractions for potential buyers, affecting their experience of your home. You should plan for your children to be elsewhere and your pets crated or leashed, and no toys lying about or dog hair on the sofa. The dishes should always be done and the kitchen sparkling. The old saying "less is more" couldn't be more appropriate when selling your home. Make sure to declutter and remove pictures. Buyer prospects need to envision themselves living in the home and not seeing your lifestyle that will distract them from letting their mind wander. The pressure of showing to everyone even mildly interested in looking (not necessarily buying) may come from the idea that the more your home is seen, the more quickly and easily your home will sell. Unfortunately, many buyer real estate agents provide their clients with dozens of homes to consider without a clear picture of what their buyer wants. Low-interest traffic can be a heavy burden on a seller’s time, energy, and resources. By utilizing special scheduling tools, I have many ways to reduce that burden. Since a showing can take an hour or even hours (although more typically like 30 minutes), finding an interested buyer is what matters most. The home will be shown to many more uninterested than interested buyers. How many times will you have to show your home? In an ideal world, your property would be shown to serious buyers only. However, many “Sunday afternoon window shoppers” exist in the real estate business. However, if your home is prepared and marketed properly it could end up being shown to 30+ interested buyers in its first weekend on the market and receiving multiple offers.

You shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the professional help of a qualified real estate agent enables you to handle even the most intimidating tasks without wasting effort.

SHOULD YOU CONSIDER DOING A "PRE-INSPECTION"?

When the time comes when you get your home under contract, most buyers will have a licensed home inspection company perform various detailed inspections. The purpose of the home inspection is to let the buyers know about potential issues with the home. The inspection will cover both health and safety items as well as cosmetic issues that perhaps should be addressed. Many cosmetic issues today can turn into expensive repairs later. The buyers are paying their home inspector to uncover as many potential issues as possible so it is not unusual for a home inspection report to be anywhere between 50 - 100 pages or even more depending on how many items are discovered. Unfortunately, many home inspectors can blow minor issues into full-blown catastrophes that can quickly sour a buyer on their decision to continue with the purchase. Even if the buyers continue, they may demand the seller (you) repair or credit them money at closing to cover the repairs. The problem is, a simple $10 item suddenly becomes a $100 repair in the buyer's mind, and so on. Imagine what a $100 repair can turn into in the buyer's demand. What if there is a problem such as mold in the attic or foundation cracks? These repairs can suddenly kill a deal or cost you much more than had you fixed them in the first place. This is why I recommend a seller perform a pre-inspection before the home gets listed on the market. The cost is basically the

same as what the buyer pays (approx. $500) but it can uncover many items you may not know to exist and then gives you the opportunity to repair the issue before any buyer even sees the home. This can give you many edges up on buyers as it will reduce the length of their home inspection report and reduce if not eliminate any demands a buyer may make of you doing attorney approval. This can also prevent you from getting blindsided by major issues that you may not even know about... issues that should a buyer find them, you would now have to disclose to other buyers if your deal fell through and you put the home back on the market. I can't tell you how many sellers told me they didn't want to spend the money for the pre-inspection because their home was "perfect" only to wish they did after the fact. Many times, too late, unfortunately. Hiring an inspection company to do a pre-inspection gives you advance notice of what a home buyer's inspector may find. It also gives you the opportunity to fix items that should then no longer come up during the buyer's initial tour of the home and during their home inspection. Again, it could land you a higher price right from the beginning and will most likely result in the buyer's home inspection report being much smaller. This will make your buyer feel more comfortable with their offer and not back out of the deal. Also, fixing the items brought to your attention in your pre-inspection report will probably cost you less than the dollars a buyer will want from you to make those same repairs. The small cost of doing a pre-inspection report can save you thousands of dollars and even save a deal from falling apart. Take a look at the pictures below. This is a recent listing of mine where I recommended the seller do a pre-inspection (as I always do) but the seller opted to NOT do one. The pictures below are from the buyer's inspection report.

Imagine the feeling in the buyer's gut when they saw these pictures of massive rodent waste in the attic. Luckily we saved this deal but at a great expense

to my seller. Had my client taken my advice and done a pre-inspection, we would have been made aware of the issue long before any buyer would have seen it and cleaned it up at a much lesser expense and in a time frame much less hurried than we had to.

Now, this remediation cost my sellers over $15,000 to fix and they only had about 2 weeks to find a company and get the work done before the closing. Had they done a pre-inspection before ever listing the home for sale they would not have had to rush to find a company and probably could have gotten it done much cheaper and the buyer would never had known there was an issue. Many buyers would have backed out of the contract after seeing this issue because of the health & safety issues involved.

I also have an associate who was selling a home in a different part of the country where termites are more prevalent. Again, the seller opted NOT to do a pre-inspection. The buyer's inspection report revealed extensive termite damage to the tune of $50,000! Can you imagine having to pay $50,000 to repair that issue before closing? Their buyer or any buyer for that matter

would require this to be fixed prior to purchasing the home or may not have wanted to purchase the home at all. And what if the seller had already gone under a contract on a new home? They would have needed that $50,000 to purchase the new home.

The bottom line... Please do a Pre-Inspection!

A pre-inspection is cheap insurance to help your deal go smoothly and can save if not make you more money. I have an extensive list of reputable Pre-Inspection Companies" for you to call. Please let me know if you would like this list.

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I have written a detailed 50+ page booklet entitled:

"GET YOUR HOME READY TO $ELL!" O $ELL!"

This booklet covers in depth everything you need to know about how to prepare your home properly for sale. Please contact me if you would like a free copy of my booklet. contact me at:

(847) 922-8423

or email me at: RjGetsItSold@gmail.com

A pre-inspection is cheap insurance to help your deal go smoothly and can save if not make you more money.

CHAPTER 3 Pareto's Principle

“Eighty percent of results will come from just twenty percent of the action.” This is the Pareto principle, attributed to Italian economist and philosopher Vilfredo Pareto, who, in 1906, observed an intriguing correlation. He began work on the “80/ 20 rule” with the observation that 20% of the pea plants in his garden generated 80% of the healthy pea pods.

This observation caused him to explore more examples of uneven distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. His findings led to the concept that 80% of results will come from

20% of the action.

While it does not always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of the most reported software bugs cause 80% of software crashes • 20% of patients account for 80% of healthcare spending 21

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

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

BUYER’S STORY

When Vince and Sue were shopping for a new home, Vince wanted an ocean view. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a very short walk from the ocean. The neglected exterior and dated interior were not encouraging, but when Vince stepped onto the third-floor balcony off the master suite, he was sold. Any shortcomings in wall color or fixtures faded away when he took in the view. He could now see the ocean and sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the ocean!

SELLER’S STORY

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

LOCATION MATTERS

A buyer paid extra for a townhouse because of its location in the complex overlooking woods instead of the parking area. The seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half-acre grassy area. Another owner whose townhouse also bordered this wooded area sold his home for a higher price than other townhouses in the complex because he had a characteristic shared by fewer than 10% of others - he had the only available listing at the time it went on the market offering that feature. He pointed to that feature in the marketing and because of this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to her advantage. Her property backed up

to a lake and fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price. THE 80/20 RULE IN ACTION: BUYERS ARE SEARCHING FOR UNIQUE FEATURES Decide upon, improve, and spotlight the unique features of your home in marketing copy, photographs, and showings. Do not spend much time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced-off dog run in the unusually large backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price.

Each house will have its unique features. Here are some suggestions if you aren’t sure of yours:

• Hilltop views or high vantage points, offering a spectacular view of the surrounding area • Open fields frequented by wildlife • Unobstructed views of sunrise and sunset • Patios, decks, dog runs, garden areas, and gazebos — highlight items neighboring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot • A private location or lot partially concealed by trees • A unique, shady, or larger backyard; a fenced backyard is a big selling point (If your yard can be fenced but is not, 24

consider making that improvement.) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out LOOK FOR THE 20% D R THE 20% DIFFERENCE AND MARKE CE AND MARKET TO THAT FEATURE Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to buyers who are looking for what you have and are motivated to make a purchase. You won’t have to show as frequently. You also won’t have to sift through low-ball offers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your house with others in the neighborhood to see what makes yours stand out. Work with that.

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

An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offering 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home for the buyer were dwindling. They stopped at one last house as the sunset. The exterior of the house was dated and the yard untended. This agent and her client had spent the entire day looking at houses that shared 80% of the same features. Nevertheless, once the buyer walked into this home, he wanted to offer the full asking price.

What set this house apart from the others? He wasn’t too

interested in the kitchen, bathrooms, and bedrooms. A bedroom was a bedroom, as far as he was concerned. He fell in love with the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view out a large picture window in the great room and the sun was setting below the distant tree line. That breathtaking view sold the buyer. The remaining parts of the home could easily be improved. The home buyer based his decision to buy on the window view from the hillside. The 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule.

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In some cases, the 80/20 rule may help people make a sale without even conducting a showing. The house in the following example had languished on the market for months.

Unlike the previous home, this one was attractive.

It was a brand-new, custom-built home, yet it sat on the market for over seven months without a single offer. The builder hired a real estate agent who knew the importance of finding that one special feature. He drove out to give the house a thorough investigation. He discovered what the property had that the competition did not. The house had a five-acre yard. Other houses being sold in the area had one- to two-acre lots. Not only was the yard bigger, it was also more private than the other properties. The real estate agent marketed the property by highlighting the five acres. Because the house was no longer the main selling point, interest in the property increased and the home quickly sold.

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