AFY Matthew Smith - Expired V1 - 2530

HOW I SELL HOMES OTHERS FAILED TO SELL

Matthew P. Smith

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this publication, neither the Author nor the Publisher assumes any responsibility for errors, inaccuracies, or omissions. Any slights of people or organizations are unintentional. This publication is not intended for use as a source of legal or accounting advice. The Publisher wants to stress that the information contained herein may be subject to varying state and/ or local laws or regulations. The reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including advertising and all other aspects of doing business in the United States or any other jurisdiction is the sole responsibility of the reader. The Author and publisher assume no responsibility or liability whatsoever on behalf of any reader of these materials. If your property is currently listed with a Realtor, please disregard this notice. It is not our intention to solicit the offerings of other brokers. Printed in the United States of America

Table Of Contents

1. Should You Consider Hiring A Real Estate Agent?

2. Why Should You Read This Book?

3. Does Listing Price Matter?

4. What To Avoid

5. Why It's So Easy To Sell Your Home For Less Than It's Worth 6. What Stops "Perfect Homes" From Selling 24 7. How To Sell A Home That Didn't Sell — Without Dropping The Price 28 8. Avoid This Rule At Your Own Risk 30 9. Why This 20% Rule Applies To Hard- To-Sell Homes 34 10. Grabbing Any Buyer's Attention 42 22

11. Luxury Home-Seller Strategy Sells Homes For 15% More Money 48 12. Why Home Staging Really Matters 54 13. Why Buyers Skipped Your Home 58 14. Details Win Home Sales 66 15. How Buyers Pick Homes To Preview 72 16. Why Pictures Of Your Home Can Stop It From Selling 80 17. The 3-Step Formula I Use To Sell Homes Others Couldn't Sell 84 18. Why Every Billionaire Home Sells 90 19. Negotiation Musts 94 20. Simple Negotiation Ideas 102 21. Why Your Dog Wants You To Hire Me To Sell Your Home 116 22. This Big Mistake Cost One Home Seller $36,000 120

23. Read This Before You Sign A Contract With A Buyer

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Want Top Dollar For Your Home?

There are many different things you can do to sell your home for top dollar. If you use these strategies, you get a higher sales price. But, miss any of these crucial components, and you risk settling for a lower price than you deserve. That’s why I offer a Free “Sell For Top Dollar” Consultation. I’ll meet with you, take a look at your home, and show you exactly what needs to be done to sell for top dollar. I’ll give you advice on marketing, pictures, pricing strategy, staging, negotiations, etc. Each of these items is crucial to your sale. Get them all right, and you’ll sell for top dollar. But, neglect one of them, and you risk settling for less than you deserve.

So, if you’d like my Free, No Obligation, “Sell for Top Dollar” Consultation, give me a call at (208) 755-9540.

We’ll schedule a time that works for the both of us to meet. I look forward to helping you!

Best Regards,

Matt Smith Kelly Right Realty alphaomegamarketing@yahoo.com (208) 755-9540

Testimonials & Reviews Matt Smith

Matt Listens! I told him what I needed out of the sale of my home and he never argued, disagreed or said anything disrespectful about my needs and ideas. It was very refreshing to work with a realtor as a partner and not an employee. Cheryl - Post Falls, Idaho Tough job but he did it! We were tough clients, but Matt, went above and beyond to help us even now one year after the sale closed I can still call him service recommendations in the area because he knows just about everyone and is very happy to help! Bruce - Post Falls, Idaho I used Matt twice so far and was impressed both times. I listed my home with him about a year ago. He worked long and hard to sell my home. Just recently he found another property for my husband and I. The home we bought was for sale by owner but Matt did not care one little bit. He made no commission however his advice enabled us to safely open escrow and purchase the home. Everything went quickly and smoothly. Both of my real estate deals were done very quickly and professionally. Matt is honestly the best in his business. I would highly recommend him. Sandi - Coeur d' Alene, Idaho xi

Matt's perseverance got me the house! My experience with Matt during the entire home buying process from start to finish has been nothing short of exceptional. I have a unique work structure and because of this yes it was very difficult to find mortgage lenders that would approve me for a home loan. I was very frustrated and on the verge of giving up but Matt insisted that we continue searching. Not only did we find a mortgage lender but also a mortgage that I felt great about. His perseverance is the reason I am now a homeowner. He is professional punctual knowledgeable and very easy to work with. With the highest regard I will recommend that to all my friends and family. Nick - Coeur d'Alene, Idaho Very attentive to concerns details negotiations Matt was a Jem! He made an amazing drone video with music that he wrote just for me! And addition to being highly knowledgeable about the real estate market he was extremely easy to work with and gave me very good advice about preparing my home for sale. He was very responsive during the entire process of receiving offers selling and closing. Not once did he tell me to lower my price while all other agents did. I would work with him again in a heartbeat. Lindy - Priest River, Idaho

Matt got us a signed around deal on the first showing! He was a consummate professional during our stressful and difficult process. In the midst of juggling a failed marketing

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effort with another agent he presented a well-thought-out plan and strategy to sell our home in short order. We needed to move quickly due to a move. He helped alleviate that pressure by securing an acceptable full price offer within 3 days of the listing. We put pressure on him and he delivered. We could not possibly thank him enough. William - Hauser, Idaho

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The Worst Realtor Ever! In 2017 I was looking to buy a house for myself. I came across a nice home that was for sale by owner in the neighborhood that I was interested in buying. I parked my car and knocked on the door. A gentleman answers who was well along in years. I met him and his wife who is 81. After having a brief discussion about the property I told him that he was not asking enough money and that I would be willing to pay almost double the price he was asking. As part of the conversation I inquired as to the motive of his selling. He told me a story about a nephew who is living in the house refuse to move out. He felt it was the only way to escape the abuse of his nephew was to sell the house. At that time I realized that I had to take off my real estate had and put on my nursing at. You see I have been a nurse for a number of years specializing in home care. I then inquired further to discover that he really loved his home and did not want to move. At this point I began empowering him to take steps to get the nephew to move out. It was very difficult for him because he had a big heart and did not know where the nephew would be moving to. I explained to him there are Social Services, low income housing and other options available for the nephew. It took about 4 months but finally he was able to get the nephew out and stay in his home! We have since become friends and he remains in his home to this day. One evening while visiting and enjoying a nice fire in the outdoor fire pit he looked over at me and said you're the worst realtor ever! It was the best compliment that I had ever received. xv

Alpha Omega Marketing

Capture

This is hard to quantify. There can be countless intangibles to many unique properties. One fact is that first impressions are everything in real estate. I personally, take a hands on approach procuring the very best images and video to showcase your home starting with the feature photo. Afterwards comes the follow up images, posted in the order of essence. This is where we work together to choose the perfect order of images to capture the essence of the home. Each image is skillfully crafted, with the same care, using professional high definition digital photography to look stunning whether for online or print advertising. Video whether on land of by drone is taken with the same care with its own unique sound track that I personally compose giving it the perfect character to match the home. Thus, advertising is a key element in the sale of your home. With proper advertising the desired response from the buying audience will come to a logical conclusion, the sale of the home. The capturing of a home's essence is a work of heart. Every home tells a story and it is our job tell that story in the most compelling way possible and that starts with you! The homes history, what you love about the home, what you will miss, the terrain, location, the proximity to city or country are essential elements to a successful property description. xvii Phase 1

High quality photos give the mind an idea of the property however the correct property description will allow the imagination to run wild. If an image can trigger the mind, words will trigger the heart.

Cultivate

Once the marketing framework has been captured the cultivation process begins. We create a sophisticated marketing presentation that will stand out in every market across multiple platforms. All property data is carefully manicured and fine tuned in to a cohesive marketing unit and distributed through appropriate channels. Everything from images to video and music right down to the property description itself will be cultivated to attract the perfect buyer for your home! Cultivation of presentation will allow your home to be seen in its fullness. Proper lighting in photography and video along with a detailed property data cultivation will give the potential buyer a comfortable flow to accessing the necessary information about youe property. Every home deserves the best marketing available. From a single wide manufactured home to a waterfront mansion, my goal is top level marketing. Selling a home requires the skill of a conductor. All moving parts must be carefully coordinated bringing together all parties involved it a timely manner from the first offer, through inspections and appraisals, clear through to closing. Phase 2

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Catapult

Catapulting is the process of launching an advertizing campaign that crosses state lines and beyond. With today's technology your home will be advertized on over 100 websites making it available to buyers around the world. In 2016, 51 percent of all buyers found the home they ultimately purchased on the internet and 34 percent found their home through a real estate agent. In comparison, in 2001, only eight percent of buyers found the home they purchased on the internet and 48 percent found their home through an agent. The use of the internet to find the home has increased over the years. Combining framework with footwork it's time to catapult! We now have worked together to have formed a complete package that is ready for public viewing. Images, video and property data will now be launched worldwide! Local print will be utilized as well and will be strategically selected bases on data points that are current to the year, seasons and location. 1.8 Million average visitors per month on Coldwellbanker.com 77% of buyers search the internet as the first step in their home buying process. Our goal is to stand out as much as possible making your home the one to buy! Phase 3

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Web Presence

Sites your home will be featured on:

Over 100 websites where your home will be featured:

• Realtor.com • Coldwellbanker.com • Zillow • Trulia • Yahoo Real Estate • MLS • AOL Real Estate • Cbinw.com • Craigslist • Oodle • Propsmart • Cdarealtors.com • Vast • Cbidaho.com • Local.com

AND MANY MORE!

CHAPTER 1 Should You Consider Hiring a Real Estate Agent? I’m sure you’ve wondered why people even bother hiring a real estate agent. Well, here are a few reasons. In fact, most sellers net more money in their pocket, even after they pay the agent’s commission. The typical home sold by an agent sells for $230,000, while the typical For-Sale-by-Owner (FSBO) home sells for $184,000. That doesn’t mean every agent is going to sell your home for more. But the numbers do show agents typically sell homes for more money. In fact, many sellers actually make money hiring a real estate agent to sell their home. Here are a couple of real-life examples: • Brandon had his home on the market for $220,000. He wasn’t getting much activity. The buyers who did look at it were not serious. They showed little interest in buying the home and made lowball offers. He then listed his home with an agent for $240,000. Three 2 REASON #1: We can sell homes for more money.

weeks later, he received an offer from a buyer willing to pay full price. He ended up with more money in his pocket, even after paying the commission. • Jimmy and Kaye had their home on the market for $380,000. It wasn’t selling. After a few months, they hired a real estate agent and increased the price to $420,000. A few months later, the home sold for $408,000. They made more money, even after paying the real estate commission. Do these stories happen every day? No. Does this happen to every FSBO that hires a real estate agent? No. But, they happen more often than not. In most cases, the agent can sell the home for more money than the seller could sell it for on their own. Let me give you a concrete example. I talked to a title company manager who handles both FSBO closings and real estate agent closings. He told me when an FSBO sells their home, it takes about 30 to 45 days for the two parties to sign off on the sale contract. He said sometimes they don’t even sign it until they sit down for the closing. When a property is sold by a real estate agent, the sales contract is usually signed in 45 hours , REASON #2: The whole process is easier when you hire a real estate agent.

not days.

Why does this matter to you? Have you ever heard of “buyer’s remorse?” It’s what happens when a buyer decides to buy your home, only to immediately begin questioning their decision. It doesn’t matter whether the decision was good or bad. I’ve seen buyers get buyer’s remorse when they were practically stealing homes. And, sometimes they still freak out and change their mind. If you’ve a signed contract, you can hold them to it. If not, they may walk away, and you’ll have to sell your home all over again. This isn’t to say that you can’t sell your home yourself. You probably can. But, unless you have sold a lot of homes yourself, then you probably aren’t set up as well as a professional real estate agent is. Doesn’t that just make sense? You likely hire professionals for many areas of your day-to-day living or business, so why not with home selling? Selling your home is a big deal and potentially worth a lot.

REASON #3: A good real estate agent can save 80-100 hours of your time.

That’s because we handle all the work for you. We are experts at financing, loan conditions, home inspections,

surveys, title work, termite inspections, appraisals, negotiating, etc.

Some people have estimated there are 189–213 different things an agent does to sell a home. That list is shorter or longer, depending on the property. I haven’t familiarized myself with every single item on that list. But, I do know from personal experience that selling a home does take a lot of time. This is the most important thing an agent can do for you! After all, just because a buyer is interested in your house doesn’t mean they will actually be able to complete the purchase. Here’s a story that illustrates this perfectly. A seller put her home on the market. The perfect buyer came along and made a full-price offer for the home. The seller and the buyer signed a contract, and the buyer started working on financing. However, the buyer ran into a problem with the financing and canceled the contract. The seller told the story to an agent. It turns out the problem the buyer had was completely solvable. However, the seller didn’t know how to solve it. As a result, the buyer couldn’t obtain financing to buy the home. The agent is confident that if he had been involved in the sale, the buyer would have obtained financing and bought REASON #4: We solve problems.

the home.

Unfortunately, the seller had to put the home back on the market. It took another five months to sell. The seller had to pay an additional five months’ worth of mortgage payments, property tax payments, and homeowner’s insurance premiums. In addition, she had to maintain the lawn, pay the electric bill, and take care of the property. This reminds me of the old story of the importance of “Knowing Where to Tap.” Have you ever heard the story? Here’s the short version: A huge steamship boiler system was not working properly. The steamship captain hired a top boiler expert to fix it. The expert asked a few questions and inspected the boiler room. He looked at the pipes that twisted and turned every which way and listened to the boiler and all the machinery. He studied the problem, reached into his tools, and grabbed a small hammer. He gently tapped one valve, and— voilà! —the problem was fixed. He sent a bill for $1,000 to the owner of the steamship. When the owner saw the $1,000 invoice, he was mad as a hornet’s nest! He called the expert and confronted him about the bill. “You were only there for 15 minutes! How dare you charge me $1,000!?!” he demanded. The expert heard him out and told him he would send a new bill.

The owner received another bill the next day. The bill was itemized, as follows:

• Tapping the valve: $.50 • Knowing where to tap: $999.50 • Total: $1,000.00

Specialized knowledge is one of the most valuable resources in the world. Fortunately, for you, I have specialized knowledge. I know how to sell homes for more money. I know precisely where to “tap the valve” and to solve any potential problems that could come up. In fact, you will usually make more money when you hire me to sell your house. I know that sounds crazy. But it’s true. The fact I can sell your home for more money is usually enough to pay my commission. This is how you make money hiring me. I save you countless hours chasing down surveys, handling inspections, etc. What is your time worth? If it isn’t worth anything, you should sell your home yourself. But, I know that isn’t the case. Your time is valuable to you! I know from personal experience that most homeowners are successful, hardworking individuals. You have probably

spent many hours becoming skilled at your own profession. I’m sure you have considerable specialized knowledge in your area of expertise. An outsider might look at what you do and think it’s easy. It’s not. You know it, and I know it. Run the numbers. Consider the valuable insight I’ve shared with you. When you’re ready to hire a highly skilled, professional real estate agent, give me a call. I’ll be glad to help you. When you’re ready to have me do all the work required to sell your home, contact me. I’ll help you take the first critical step: determining your home’s true value. With that number in hand, we’ll be ready to talk about listing and selling your home. And you’ll be able to make well- informed decisions. The next page has all my contact information. I can’t wait to help you get started! • Statistics show that, on average, real estate agents sell homes for much more than For-Sale-by-Owner sellers. • A highly skilled real estate agent can save the seller 80–100 hours during a sale. • Real estate agents have the knowledge and expertise to solve problems that can disrupt home sales. POINTS TO REMEMBER:

CHAPTER 2 Why Should You Read This Book? Ever wonder why one house sells quickly, while a similar house doesn’t? Why does one house sell for $188,000, while another house, that’s identical in every way, brings in $202,000? It just doesn’t seem to make any sense. The truth is, similar homes sell for varying prices all the time. It takes place all over the country. It happens in markets large and small. Surely, there must be some reason! These houses do not sell for more money by accident. No magic trick helped one seller get a better deal than the other. On the contrary, higher prices and quicker sales are the direct result of careful planning. Sellers can command higher prices for their homes if they use the right techniques. A few simple strategies, known only to the best sellers, can make a huge impact on the success of your sale. The following chapters break down those secrets. See how each strategy translates into real-life examples. Houses brought to market with these tactics consistently sell quickly, and for more money. Gather the information you

need to apply the same formula to selling your home. When you sell, you’ll be able to take advantage of these techniques. Carefully follow the same formula to get your home sold. Thanks for taking time to look through this book. I sincerely hope it will help you make more money on the sale of your home. If you have any questions, please don’t hesitate to ask. I’d be glad to help.

CHAPTER 3 Does Listing Price Matter? Are you sick of being told the reason your home didn’t sell was because it was “overpriced?” Most people think a home that didn’t sell was probably priced too high. Nothing could be further from the truth. The reason homes don’t sell is not always because of the price. It’s usually because the home was not marketed properly. It isn’t easy to sell something for full market value. After all, buyers are always looking for a deal, and shoppers now have more information at their fingertips than ever. You might need to negotiate the price with a buyer, but good marketing will help bring you a full-price offer! John was trying to sell his house. He put it on the market for $499,900. He hired an agent to help him sell it. The agent worked at a reputable firm and made a good effort to sell John’s house. • The pictures of the house were top-notch quality. • The marketing of the house was first class. The home was advertised extensively online, in the newspaper, Here’s a perfect example:

and other marketing avenues. • The agent held an open house.

Yet the agent’s efforts failed to attract a buyer. John’s agent suggested he adjust the price. After all, most of the similar homes in the area were priced around $400,000 to $450,000. He recommended dropping the price to $450,000. John owned one of the nicest homes in the area and his home had many features the other homes didn’t have. John knew this. He was reluctant to reduce the price.

John hired another agent, who also failed to sell the home and also offered the same “advice”: Reduce the price.

At this point, John had two options:

• Option #1: Drop the price. Most of the agents he talked to told him his home was not worth what he wanted. They told him he should just “be reasonable” and drop the price to $450,000. • Option #2: Hire an agent who could sell the home for what it was actually worth. This agent’s marketing would need to get a buyer so excited about the home that they would be willing to pay full price. Fortunately for John, he picked Option #2. He contacted an agent who specialized in selling homes other agents could not sell.

This agent worked at the top real estate company in his area

and had a bunch of accolades. He took a closer look at the home, and launched his own specialized marketing plan: • New pictures were better than the first agent’s pictures. • The marketing was better. There was even more advertising than before. • The agent didn’t just do a regular open house. He also did a broker’s open house and invited other agents to view the home. The agent looked at his house and could clearly see it was worth the price. The agent put the home on the market for the same price as the previous agents did. Only this time, something different happened. Sixty-three days later, the home sold for $480,000. The other agents were stunned. After all, they had told John his home was worth no more than $450,000. And since most homes sell for slightly less than their asking price, an asking price of $450,000 would have most likely resulted in a final sales price of $430,000 to $440,000. Yet, the new agent had sold the home for more. It had taken only two months to capture a buyer’s attention. The unsuccessful agents were shocked (and a little bit embarrassed)! What had they missed? Why did the first two agents fail to sell the home, while the third agent sold it with ease?

It’s because the new agent used a marketing strategy most agents don’t use. The details on this secret marketing strategy are explained within the following chapters. But first, we must be clear on one very fundamental point. Many people believe a house sells for exactly what it’s “worth.” That simply isn’t true. The price of a house is merely the final amount agreed upon by the buyer and seller. Many circumstances affect the final sale price.

Houses do NOT always sell for what they are “worth.”

• Sometimes they sell for more. • Sometimes they sell for less.

While that statement may seem like a no-brainer, it’s imperative you understand this. Strip away misconceptions, such as the idea that “worth” determines the sale price of a house. Now you are free to examine the real factors at work. Identify those factors and you can leverage them in your favor. Take Cheryl and Richard, for example. They owned townhouses, only five doors apart. Both put their homes on the market at the same time. The builder had used the same floor plan for all the townhouses in their neighborhood. Both had the same layout. At first glance, each townhouse seemed to hold the same basic appeal for a buyer.

You might think they were “worth” the same amount. Nope. Cheryl and Richard sold their homes within one month of each other. These townhouses seemed identical, but there was a $14,000 difference in sale price!

• Cheryl sold her home for $202,000. • Richard sold his for only $188,000.

Why the large gap in price? In a later chapter, you’ll see exactly what Cheryl did to make more money on her home. For now, just know that you simply can’t afford to guess the “worth” of a home!

POINTS TO REMEMBER:

• Homes that don’t sell easily aren’t always overpriced. Houses don’t always sell for what they are “worth.” • The selling price of a home is merely the final amount agreed upon by the buyer and seller. • The most skilled sellers use special techniques that can help sell homes faster and for more money.

CHAPTER 4 What to Avoid

Here’s another example of a stupid mistake that caused a seller to lose about $50,000 — yes, that’s $50,000 — on their home sale. An alert buyer was able to snatch up a $280,000 property for only $230,000. It was being sold by an out-of-town owner. The agent was not familiar with the area and suggested the low price. The agent did not bother to put a sign on the property, and hardly anyone knew it was for sale. Two buyers both wanted to buy this property. One buyer really wanted it because it was right next to his house. He would have a bigger yard with more room for his kids to play. The other buyer lived in the area and wanted a larger yard. He wanted to buy this property and build a house on it. The first buyer bought the property before the second buyer even knew it was for sale. As soon as the first buyer found out it was for sale, he made an offer immediately. The seller accepted the offer, and the property sold soon thereafter. This buyer would’ve gladly paid full market value

for the property. But he didn’t need to, because the seller accepted the offer he made.

The second buyer never found out the property was for sale until it had been sold. Even worse, the seller never realized the mistake. Bottom line: The seller lost $50,000 because of his agent’s incompetence. While stories like this don’t happen every day, they happen more often than you’d think. It’s a very real risk you take when you hire an agent who doesn’t have a proven marketing plan. Had a sign simply been on the property, it definitely would’ve attracted more interest, and possibly even started a bidding war, driving up the price. At $50,000 below market price, the listing would have been bid and counter-bid several times, possibly even up to fair market value.

Here’s a similar story.

In this case, a seller hired an agent whose incompetence cost her $25,000. Her agent completely flubbed a “perfect offer.” The buyer submitted an offer at full price for her home, no strings attached.

Her agent dropped the ball and let a little problem—one

that would’ve been easy to resolve—ruin a perfectly good sale!

The house sat on the market for another year and ended up selling for $15,000 less than the original full-price offer. Even worse, the seller wound up having to make another 15 house payments while her home sat on the market. Ongoing house (mortgage) payments are a frequently overlooked cost of not finding a buyer quickly. Please don’t become another one of these stories! Take time to know the true value of your home. Do your homework and prepare for the sale before putting your home on the market. The good news is that by reading this book, you’re already ahead of the game! • A marketing mistake—such as not using a “for sale” sign—can drive down a home’s price. • When you put your house on the market, make sure you—and your real estate agent—address any problems that could disrupt a sale. • Continuing house payments are a hidden cost of selling a house too slowly. POINTS TO REMEMBER:

CHAPTER 5 Why It's So Easy to Sell Your Home for Less Than It's Worth At a certain point, many home sellers feel like throwing in the towel. “I’m just going to drop the price and get rid of this house,” they think to themselves. The temptation to “throw in the towel” tends to increase the longer your home sits on the market. It even happens to highly intelligent people. Here’s an example: In 1997, entrepreneurs Larry Page and Sergey Brin were looking for a buyer for their Internet search engine. They called it BackRub. The two were seeking $1.6 million for the new online portal, and were working a deal with Excite, a popular search engine at the time. The problem for Excite was that BackRub was far too effective a search engine. Users were finding what they wanted and moving off the site too quickly, which would be bad for Excite’s advertising business. Page and Brin cut the price dramatically by more than 50 percent. They offered to sell BackRub for $750,000. (Yep, even geniuses cut their price.) 22 Fortunately, reason (usually) prevails.

Excite considered the offer, but ultimately balked. There was no deal. BackRub’s co-founders decided to commercialize and release the product themselves. First, they renamed it.

They called it Google.

Less than 20 years later, Google is now worth roughly $360 billion. Excite was eventually sold to Ask.com. Bottom line: Fight the temptation to drop your price. Just because something isn’t selling does not necessarily mean it isn’t worth the price you’re asking. That clearly was true for Google, and it’s probably true for your home, as well. While the buyer of your dreams hasn’t yet emerged, it certainly doesn’t mean they won’t. Selling a home for top dollar fast is actually pretty simple. You just have to find the one person who’s willing to pay more for your home than anyone else. If they want it more than anyone else, then they will be willing to pay a higher price than anyone else.

POINTS TO REMEMBER

• Many sellers get frustrated and reduce their price prematurely. • If your house isn’t selling, it means you haven’t found the right buyer yet—the buyer who wants your home enough to pay top dollar.

CHAPTER 6 What Stops "Perfect Homes" from Selling Have you ever wondered why no one bought your house? I know exactly why no one bought your house, and I’ll explain the reason in the following chapter. Have you ever heard the saying, “Build a better mousetrap, and the world will beat a path to your door?” Even though the saying might appear to be correct—at least on the surface—it’s false. More than 4,400 people have invented what they thought was a “better” mousetrap. At least, that’s how many patents have been filed with the U.S. Patent Office. But despite all the new mousetrap inventions, the classic mousetrap, first patented in 1894, is still the best-selling design. I’m sure each of those inventors is frustrated. “Why won’t anyone buy my mousetrap? It’s genius!” they say to themselves. I’m sure you can relate to their frustration. Have you ever thought the following? “Why won’t anyone buy my house? It’s a great house!” Fortunately, there’s an answer to this question:

“One cannot throw a great product out on the street and expect people to gobble it up.” This rule applies to inventions, homes, and even movies. Yes, even great movies need to be sold! Here’s an example of a great movie that didn’t do well when it was first released. On September 23, 1994, the movie, The Shawshank Redemption , was released to the world. Adapted from a short story by legendary author Stephen King, the feature film centered on a pair of imprisoned men. The film, based in a prison but built on the idea of friendship, hope, and dreams, was nominated for seven Oscars and won more than a dozen awards. The film was immediately a critic’s favorite. In fact, it’s ranked as the best movie in cinematic history on well-known and respected website Internet Movie Database (www.imdb.com), ahead of the likes of The Godfather; The Good, the Bad and the Ugly ; and Schindler’s List . Another movie came out that year. The Flintstones , a live- action remake of the 1960s cartoon show, starred John Goodman, Rick Moranis, and Rosie O’Donnell. The Flintstones , perhaps needless to say, was not nominated for Best Picture at the Oscars. “It falls flatter than a granite Over 20 years later, The Shawshank Redemption is now considered one of the greatest movies of all time.

slab,” noted a national film critic.

Though the film was praised for its costume and set design, it also won “Razzie Award” for Worst Female Performance and Worst Screenplay, and was a nominee for Worst Movie of 1994. Its IMDb.com user reviews are roughly half of what The Shawshank Redemption receives, and it’s rated by users as one of the worst movies of the 1990s. A team of salespeople masterfully marketed The Flintstones to its targeted demographics. The result? The film grossed $131 million in the U.S. and $358 million worldwide. That’s the power of targeted marketing. On the flip side, the people at Universal Studios, who promoted The Shawshank Redemption , admitted they couldn’t figure out how to sell the movie to the public. They had a great product; they just didn’t know how to sell it. It grossed only $28 million in the U.S. box office and $60 million worldwide. It ranked 51st in box office success in 1994—two spots behind In the Army Now, starring Pauly Shore. Look at those numbers, then look at them again. Still don’t believe good marketing and salesmanship matter?

The folks at Universal learned their lesson—even the best products need to be “sold.”

Is your home a great product that wasn’t marketed properly? As we discussed earlier in this book, selling a home for top dollar fast is actually pretty simple. You just have to find the one person who’s willing to pay more for your home than anyone else. If they want it more than anyone else, then they will be willing to pay a higher price than anyone else.

POINTS TO REMEMBER:

• Having a great product—or house—isn’t enough. • Whether you’re selling films or houses, you can’t beat the power of targeted marketing.

CHAPTER 7 How to Sell a Home That Didn't Sell —Without Dropping the Price It is entirely possible to sell your home without dropping the price. I’m going to let you in on a little secret. The standard approach is all wrong . It’s based on the faulty premise that if you tell enough people about your house, someone will buy it . Your home isn’t selling? Tell more people about it. While having more people look at a home does increase the odds of it selling, this doesn’t actually sell the home. The bottom line is that not everyone wants to buy your home. Yes, they’d love to buy it for a bargain basement price. Even if they hated it, they’d still buy it for half price—only to turn around and sell it for a quick profit.

The key to getting top dollar is finding that buyer who wants your home badly enough to pay full price.

Sometimes, if you’re lucky, you’ll find a buyer who’s willing to pay more than full price. Yes, that does happen.

The problem is, most people are so focused on telling everyone about a home for sale that they forget about the most important thing. You have to find that one special buyer . The question is, how do you find the perfect buyer? First, you need to understand a universal rule, discussed in the following chapter, and the role it plays in bringing in those ideal buyers.

POINTS TO REMEMBER:

• The standard selling approach is based on the faulty premise that if you tell enough people about your house, someone will buy it. • In truth, you must find the one buyer who wants your home so badly, he or she is willing to pay full price.

CHAPTER 8 Avoid This Rule at Your Own Risk The key to the successful home-selling approach is a revolutionary finding discovered by an Italian economist. His name was Vilfredo Pareto. The most important thing we can learn from him is the Pareto principle, better known informally as the 80/20 rule. In 1906, Vilfredo found an intriguing correlation. He noticed that 20 percent of the pea pods in his garden held 80 percent of the seeds. Studying the seeds prompted him to take a closer look at this ratio. In one of his initial discoveries, he discovered that 80 percent of the land in his area was owned by 20 percent of the people. After detailed study, he observed this ratio held true in many aspects of life. The Pareto principle—or the 80/20 rule—is a result of his findings. The 80/20 rule applies to all aspects of life.

The 20 percent is vital, and the 80 percent is trivial.

For example:

• 80 percent of your income is derived from 20 percent of your work. • 80 percent of a business’ income is derived from 20 percent of their customers. • 80 percent of your value to an employer is derived from 20 percent of your work. You might wonder what all of this means. In a nutshell, it means some things are substantially more important than other things. In other words, things aren’t equal. Approximately 20 percent of what you do matters. The other 80 percent is insignificant. It’s important to understand that this isn’t always split at exactly 80/20. It can be 70/30 or another percentage. The key is that the two numbers are not equal, and they are usually close to 80/20. How can you apply the 80/20 principle to selling your home? Understanding this concept can save you time in selling your home. Unfortunately, many sellers buy into the false idea that more is more. They completely ignore the Pareto principle. Now that you know what the 80/20 rule is, you’re probably wondering how it applies to selling your home. When you use the 80/20 principle in selling, you stop trying to sell people on the entire home. Based on the rule, only 20 percent of your home’s features are important. The remaining 80 percent are trivial.

That’s because they are the same features many other homes in your neighborhood have. Instead of focusing on those trivial features, you need to focus on the vital features. When you sell your home, focus on unique features to grab the attention of buyers. These features make your home different from other homes. These features will make it easier to sell your home for the full asking price. Let’s look at a few real-life applications and examples of how the 80/20 rule can have an impact on selling your home.

POINTS TO REMEMBER:

• According to the 80/20 rule, approximately 80 percent of effects come from 20 percent of causes. • Following that principle, buyers will focus on 20 percent of your home’s features. The other 80 percent are probably common to other homes.

CHAPTER 9 Why This 20% Rule Applies to Hard-To-Sell Homes

Let’s paint a hypothetical situation. Let’s say there’s a buyer who’s looking for a three-bedroom, two-bathroom home. Let’s now assume the agent found him five houses to preview. Each meets his general criteria, and is located in the area in which he hopes to live. He and his agent drive out to look at the five houses. All have very similar features. The prices are comparable. In theory, you might think the buyer will have a hard time deciding between houses. In real life, that’s not the case. No matter how similar they might seem, no two houses are exactly alike. The 80/20 rule comes into play. Imagine four of the houses don’t have a pool, but one does. The buyer isn’t aware of this, though, because the agent didn’t mention it. The buyer sees the four houses that don’t have a pool. He isn’t particularly interested in any of them. Then he sees the fifth house, and the pool! Suddenly, he’s ready to make an offer. He might even pay full asking price, even though this house is more expensive than the others.

THE 80/20 RULE IN ACTION: BUYERS FOCUS ON UNIQUE FEATURES

His offer isn’t based on the 80 percent of features this house shared with the rest. Instead, his bid is based on one unique attribute—a pool (the 20 percent). The 80/20 rule predicted the sale of this house. Sadly, in this case, much time was wasted finding the perfect house. Had the agent known to look for the 20 percent difference, this could have been their first stop. As a seller, you can leverage the rule to work in your favor. Draw attention to defining characteristics in your home. Here’s a real-life example. An agent had a client visit from out of town. The client didn’t have a list of criteria; he just liked the area. She drove him from house to house. In each case, this buyer suggested offers 10 percent to 20 percent below the asking price. He would not budge. She began to worry. The whole day was turning into a big waste of time. As the sun set, they stopped at one last house. It did not have much curb appeal. It was not a good-looking home. She was out of options. Nevertheless, this house broke the tough negotiator down. He was suddenly willing to offer the full asking price! You might wonder what set this house apart from the others. It was not because the buyer had a “thing” for ugly houses.

Nope. The 80/20 rule kicked in again.

This agent and her client spent the whole day looking at houses that shared 80 percent of the same features. He didn’t care about any of those details. A bedroom was a bedroom as far as he was concerned. This plain-Jane house had something special. And he fell in love with this one remarkable feature of the house. As you walked into the great room, there was a large window. The house sat atop a hill with a gorgeous view. And to top it off, the sun was setting below the distant tree line. That view sold the buyer. The other 80 percent could be improved. He didn’t buy the house because he liked the floor plan or the number of bedrooms and bathrooms. His decision was completely based on the hill and view. That view caused him to stop negotiating and offer full price on the spot. Such is the power of the 80/20 rule. Learn how to tap into this rule and you’ll not have to settle for less than your asking price. Leverage a unique selling point. Buyers who fall in love don’t bother to haggle over pricing—they make good offers. In some cases, the 80/20 rule even helps people make a sale without conducting a showing. This is a huge time saver. The house in the following example had languished on the market for months.

Unlike the previous house, this place was not ugly. On the

contrary, it was a brand-new custom-built home. But nobody seemed to care. It sat on the market more than seven months without a single offer. The builder was baffled when his fancy new house would not sell. He ended up firing his agent and hiring a new one. Fortunately, the new agent knew the importance of finding that special feature. He drove out to give the house a thorough investigation. What he found changed everything. The house had a gorgeous five-acre yard. Other houses being sold in the area were all on one- to two-acre lots. Not only was the yard bigger, it was more private than other lots available. The new real estate agent marketed the five acres. He mentioned details and a description of the house. But the house was not the main selling point, so he shifted attention to the five-acre lot. In no time, his phone rang! A buyer was relocating. He had noticed the house was for sale, but it hadn’t caught his eye. That changed when he learned it was built on a five-acre lot. Suddenly, he was very interested. So interested, in fact, that he submitted an offer from 1,000 miles away. He had never even seen the property in person! He was afraid someone else would buy it before he could, and he would lose out on the perfect house. That sale happened in 45 days.

The builder was amazed! His house had been on the market close to eight months without so much as a nibble. Suddenly it was sold—purchased sight unseen, all because of the 80/20 rule. By shifting focus to the five acres, the real estate agent captured the interest of buyers immediately. The house was no longer unsellable. On the contrary, for a short time, it became the hottest house on the market. Don’t create an advertisement similar to the ones for every other house in the area. Instead, turn a spotlight on something different about your home. You will attract interested buyers—buyers who are willing to pay full price. Find something unique about your home. Build advertisements around that one item. It will catch people’s attention. Buyers who are looking for that one item will ask to come see your home in person. As a result, you’ll stop wasting time showing to people who just aren’t interested. Instead, you’ll show your home to buyers who are motivated to make a purchase. You won’t have to show quite so often. You also won’t have to sift through lowball offers from apathetic buyers. This means less stress for you. SELLING TO INTERESTED BUYERS

With that in mind, it’s essential you take time to uncover your home’s most attractive and unique features. Compare notes with other houses in the neighborhood to see what makes yours stand out.

POTENTIAL UNIQUE FEATURES

Each house will have its own unique features. You might already have some in mind. If not, these ideas should help to get you started: • Hilltop views are an excellent defining feature. As in an earlier example, a high vantage point offers a spectacular view of the surrounding area. • Maybe your home looks out onto an open field frequented by wildlife. Many people would like that view. • Your house might even have an unobstructed view of the sunset. That would interest potential buyers. • Patios are another great feature. Maybe the rest of your neighbors don’t have patios, or their patios are smaller. That vital feature could help you sell your home. • Location is something else that can set your property apart from others (not your addressed location, but rather your location compared to the surrounding homes). A buyer once paid extra for a townhouse simply because of its location within the complex. Most of the surrounding homes had no yards. However, a few shared a large half-acre

“yard area.”

One of the owners whose townhouse backed up to this yard area was able to sell his townhouse for a higher price. It set his property apart from others on the market. His home had a characteristic—the yard—shared by fewer than 10 percent of the others. He had the only available listing offering that feature. With this easy point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. He didn’t have a yard, but he was still able to use his location to his advantage. His property backed up to a lake and fountain. That extra feature helped him sell his townhouse quickly and for a great price. • You might have a private location. For instance, your lot might be partially concealed by trees, or you might have an empty lot next to you. Use this to market your property. • You might have a unique backyard. If you have a larger backyard than your neighbors do, use that to your advantage. • A shady backyard can also help you sell your property. Some people like the idea of lounging in the shade, or enjoying the privacy it can bring. • A fenced-in backyard is also a big selling point. People with children and pets flock to homes with

fenced-in backyards. • You can also look at other features. For instance, a finished basement can help you sell your home. You can also market a large attic, an extra-large garage, a swimming pool, or anything else that makes your home stand out. Look for the 20 percent difference and find a way to market it. That’s how you’ll get results. You can’t just throw the information into your listing, though. You have to take the right approach. • No matter how similar they might seem, no two houses are exactly alike. • Buyers focus on—and pay more for—unique features. • Unique features could be almost anything—a big lot, great view, pool, finished basement, even a distinctive yard or patio. • Look for what makes your home unique, and advertise it to potential buyers. POINTS TO REMEMBER:

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