Nadeem Khawaja - MY SECRET WEALTH OF INFORMATION FOR ANY SELLER

MY SECRET WEALTH OF INFORMATION FOR ANY SELLER

Nadeem Khawaja

Table Of Contents

Introduction

First Steps To Home Selling

The 80/20 Rule

Creating Curb Appeal

Staging With Purpose

Upgrading With ROI In Mind

The Three D's

How To Market Your Home

Common Seller Mistakes

10. Learn From Others' Mistakes

11. Finding Buyers

12. Be A Power Negotiator

13. Dos And Don'ts Of Negotiations

14. Bargaining Chips

15. Why Hire An Agent?

Foreword

When I first ventured into the real estate industry 16 years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to 1. Get the most money possible for your home. 2. Sell in the least amount of time. 3. Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including: • Secret strategies to sell your home for more money • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • And much, much more If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home. Happy reading!

About Nadeem Nadeem was raised in a small city with 2 siblings. As a child, Nadeem had aspirations of being an Engineer. Never in a million years did he think he’d stumble into the Real Estate Industry, but you can’t always predict where or when you’ll discover what you’re meant to do in life. He was taught at his young age that if you want something in life, you have to work for it. So that’s what he did. As the years went by, Nadeem worked his way from Naval Marine Engineer to Management in Oil Feilds, never wavering in his resolve to become the best version of himself with each career move. Nadeem got into the real estate industry 16 years ago when he wanted to adopt a challenging and rewarding career. As his career advanced, he found his stride working with Ontario Market in Greater Toronto Area & London Ontario. He’s an expert in Customer Service with a Smile, Availibility and Knowledge Skills that set him apart from Other Agents.

Throughout his career, Nadeem has earned numerous certifications, awards & privilege granted, including:

• Ontario Real Estate Association Courses • RECO Code of Ethics • ISO 14001 Auditing Principles & Environmental Management systems Auditor Training • Workplace hazardous Material Information System • First Aid / CPR Canadian Red Cross • Alert Driving Course

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• Member of American Society of Safety Engineers

Nadeem lives in Bradford, Ontario with his 3 family members and a small Cat. In his free time, he enjoys watching movies and long walks. He follows COVID-19 protocal for the safety of Clients, Colleagues and Family. Nadeem aims to provide the highest level of service to his clients and takes deep pride in helping them achieve their real estate goals.

Nadeem Khawaja Real Estate Broker

Metro King Realty Inc. Direct: (519)-200-2000 Office: (905)-895-2882

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Testimonials & Reviews for Nadeem Khawaja Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me:

REVIEWS FROM LAST 12 YEARS

I’ve used Nadeem twice so far for my real estate needs, and I was impressed both times. I bought my dream home with him a year ago. He worked long and hard to find me the perfect home. And he just recently sold another property of mine. Everything went quickly and smoothly. Both of my real estate deals were done very quickly and professionally. He is honestly the BEST in his business. I would highly recommend him. We were tough clients! We were moving to City and didn’t have a lot of time to look at houses, having to deal with our employer’s relocation, and all of the other challenges that came along. But, Nadeem went above and beyond to help us. Even now, one year after the sale closed, I can still call him for business and service recommendations in the area — he knows just about everyone, and is very happy to help.

Very attentive to concerns, details, and negotiations

Nadeem is great and has the expertise to get your house sold. The communications throughout our sale (from beginning to end) has been outstanding. He understands the stress involved in selling your house, and he updated our family consistently! This made us feel we were in good hands. I have worked with numerous agents, and I highly recommend him to represent you when it comes time to sell your home. Nadeem even advised me on how to prepare my house ix

Nadeem was a gem. In addition to being highly knowledgeable about the real estate market, with many years of experience, he is a consummate professional. He was extremely easy to work with, gave me very good advice about preparing my house for sale and was very responsive during the entire process of receiving offers, selling and closing. I would work with him again in a heartbeat. He's that good.

Nadeem got us an offer in three days!

He always made himself available to answer questions. He worked hard to sell our home and find the best fit for our new home. He and his team worked with us through the entire process and kept us calm when we got anxious. I am 100 percent satisfied!! Nadeem will get your house sold fast! I have been dealing with Mr. Khawaja for over a decade now. He is very intelligent and knowledgeable real estate agent London ontario. He is really hard worker and always negotiates for the best price. Strongly recommended. (January 1st, 2015) H Cohen's review of Nadeem Khawaja One of the BEST Real Estate Agent London Ontario. Strongly recommended. Very knowledgeable and professional and efficient service. (December 14th, 2015) ALLAN REPAIR's review of Nadeem Khawaja - Real Estate I know this guy very well, very nice person to deal with, you can bang on his recommendation. Alan Layton (December 2nd, 2014) L Regan's review of Nadeem Khawaja It is my pleasure to recommend NADEEM KHAWAJA as a very

good real estate agent who helped us to get our home sold. He is hardworking knowledgeable and always available. We rely on his excellent advice about the pricing, offer and how the market is doing around us. We recommend him for his expertise,

experience and honesty. (November 27th, 2013)

He is trustworthy and work with zeal, zest and energy. Very loyal to customer and provide full information of the property. I recommend him to be excellent real estate person in the area.

Sold our home in a week! (November 13th, 2011)

A Saigol's review of Nadeem Khawaja - Real Estate Broker Nadeem Khawaja is best Real Estate Agent in London Ontario. He is very helpful and dedicated person. He helped us in selling our house and for the BEST Dollar value. I am also buying my new house with Mr. Khawaja as he is always available to help us. ( September 17th, 2009)

Resources- Needed During the Home Selling Process

The process of selling a home can be stressful, even if you’re working with a professional real estate agent, like myself. Chances are, you’ll have to hire various professionals throughout the process, either to prepare your home for sale, or to fix any of the numerous issues that can pop up in a home inspection. The last thing you want to do is hire an unreliable contractor who delays — or even ruins — your home sale. First check Reviews or use a referred Contractor for your work

Have You Gone “Nose Blind?”

“What is that smell?”

Is that the first thing you want buyers to say when they walk through the door to your beautiful home? Despite how much you may vacuum — and even scrub — your carpets, there’s a chance you may have gone “nose blind” — to quote Febreze — to all the odors they contain. But that doesn’t mean you need to spend hundreds, or even thousands, tearing up and replacing your carpets. A deep carpet cleaning can restore even the oldest, dingiest carpets. Sure, you can rent a unit from a local hardware store to clean them yourself, but if you really want to eliminate troublesome odors and remove any deep, set-in stains, you really should turn to a professional.

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They should use the best in carpet-cleaning technology to restore your carpets and stomp out any odors you may not even realize you have. You’ll be breathing easy — and so will your buyers — knowing your carpets are in tip-top shape!

Clean is Always in Style

You may think that to sell your home, you need to do major kitchen renovations, install hardwood floors, and knock down a bunch of walls. And while those changes aren’t necessarily a bad idea if you want to sell for top dollar, they’re not always worth the return on investment.

But do you know what is? Cleaning .

Cleaning and organizing your home before a sale is the easiest way to ensure it sells quickly — and for the most money possible. So what should you do to get your home in tip-top shape? · Deep clean every surface — floors, walls, carpets, countertops, cabinets, appliances, toilets, tubs, etc. · Organize and remove clutter. · Consider investing in a storage unit to store knick knacks, toys, tools, old furniture, unused small kitchen appliances, and piles of paperwork. If this sounds like a lot of work, that’s because it can be. You’re much better off leaving these tasks to professionals. You wouldn't go on a date in dirty clothes, and you shouldn't show your home when it’s not looking its best.

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Why Curb Appeal Matters

They say you can’t judge a book by its cover — but it’s also true that books with worn out or torn covers tend to stay on the shelf. When you’re trying to sell your home, you know you have to prep and clean the inside to get it ready to show. But did you consider how your home might look from the outside? When potential buyers pull up to your property — or even when they’re checking out photos online — the exterior is the first thing they see. If your landscaping is in disarray, or your exterior paint is peeling, buyers may not even venture inside. So what should you do to get the outside of your home buyer- ready?

· Clean exterior Walls and Windows · Apply a fresh coat of exterior Paint · Keep grass green and Trimmed · Clean and repair your Roof

Electrical Issues Can Ruin Deals

Electrical issues are some of the most costly — and potentially dangerous — issues uncovered in any home inspection. In fact, The Canadian Association of Home & Property Inspectors counts electrical issues as one of the top deal-killers in the home-buying process. Some of the most frequent electrical issues found include: · Undergrounded three-prong plugs · Painted outlets · Double tapping of circuit breakers

· Reversed polarity · Improperly modified electrical panels · Knob and tube wiring · Aluminum wiring · Federal Pacific breaker panels · No GFCI protection

Unless the extent of your electrical issues is a burned-out lightbulb, all electrical work should be handled by a licensed professional. Besides being too complicated for most homeowners to handle, electrical repairs pose a huge risk of electrocution and fire.

Are Your Floors Buyer-Approved?

If you’ve watched any HGTV show in the last several years, you know one of the first things home buyers are likely to notice is the type of flooring running through the house. If your flooring is dirty, chipped, worn, outdated — or an unappealing color — chances are, buyers will take notice — and move on to the next house. When buyers see bad floors, they immediately see dollar signs. And no one wants to see extra dollar signs before they even purchase a home.

So what kind of flooring should you get?

Based on data from the National Association of Realtors®, 54% of home buyers were willing to pay more for wood floors. But if you can’t afford wood floors, there are many options for wood- look tiles, vinyl and laminates — some even waterproof — that will more than satisfy picky buyers.

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Your Front Door The Ultimate- First Impression

Your front door is the gateway to your home.

A freshly stained or painted door, with shiny new hardware and clean glass, says “Welcome home!” to buyers who come to see your house. A front door with peeling paint, rusted hardware and fingerprinted glass might just leave them out in the cold. First impressions matter, and your front door is the ultimate first impression. Stand outside your house, and if you’re less than satisfied with how your front door looks, change it up! Consider a fresh coat of paint or stain — one of the newest trends in real estate is to make your front door pop with a bold, contrasting color — replace old hardware, and clean any glass surfaces on the door. With something as important as your front door, you may want to put your DIY skills on hold. A professional painter has access to the most durable, weather- resistant materials and will create a pristine finish.

Get a Handyman on Your Side

When you finally accept an offer on your home, you may think the hard work is over.

But unfortunately, that’s not always the case.

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Once your buyers order an inspection of your home, chances are, they’re going to come back with a list of demands — or ask for a price reduction based on the list of repairs the inspector says they need. But rather than dropping your price, you can turn to a great handyman to make any last-minute repairs and salvage your deal. When it comes to hiring a reliable handyman, you can’t trust just anyone. As a real estate agent, I’ve worked with dozens of local contractors, and I know exactly who you should call.

Read This -- Before You Sign a Contract With a Buyer

Imagine taking your home off the market for 60 days while a prospective buyer tries to buy it. Then, 60 days later, the buyer finds out they can’t get a loan. You just wasted 60 days of marketing time! Now, imagine that during the 60 days, another buyer wanted to buy your home. But the buyer couldn’t purchase it. Why? Because you signed a contract with the first buyer. By the time you find out the first buyer could not obtain financing, the other buyer has already bought a house! Ouch! You just lost a sale! This is why it’s so important to make sure a buyer is able to obtain financing before you sign a contract. Fortunately, I work with a few mortgage lenders who can pre- qualify any prospective buyers. They will tell whether they’ll be able to obtain financing on competitive interest rates available. You can rest easy, knowing they’ll be able to obtain financing.

Is Your Faucet Leaking?

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No one wants to find themselves knee-deep in plumbing issues — both literally and figuratively. And even worse, no seller wants a home inspector to discover those issues when they’re just about to reach the finish line of a great deal. That’s why I always recommend my clients have their plumbing inspected by a professional before they put their homes up for sale.

Pool Worries, Be Gone!

If you own a pool, you know how much work can go into maintaining it. That stress doubles when you’re preparing to sell your home and want your pool to look like the relaxing oasis buyers imagine it to be. Having a pool can be a major selling feature for the right buyer. But buyers looking for a pool don’t want to see your pool and immediately think, “This is going to be a lot of work.”

Before you sell your home, you should consider the following:

· Is your pool clean? If it’s an above-ground pool, are the parts rusting and liner showing signs of wear and tear? If it’s an in- ground pool, are the cement, tile and grout spotless? · Are there any broken parts or leaks? Does it have broken tiles or cracked cement? · Is it fenced in? You may run into zoning code issues if you don’t have a proper fence installed. · Is it low on water?

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If buyers don’t notice these issues themselves, a home inspector will be sure to point them out. You’re better off handling any potential issues before you put your home for sale, rather than scrambling to fix them later on.

The Roof Over Your Head

The old saying goes, “As long as you have a roof over your head, clothes on your back, food on the table, and good friends and family, you have all you need to live a happy life.” But if your roof is leaky, old, or missing a few shingles, buyers won’t be happy making an offer on your home. Roof issues can be a major sticking point for buyers — and will 100% turn up in a home inspection. Likewise, many home buyer programs won’t finance homes with old or broken roofs. If you want to save yourself the hassle of scrambling to make repairs at the last minute, I recommend having your roof checked out by a licensed professional before you put your home up for sale.

The Secret to Selling for Top Dollar

According to the Realtors® Profile of Home Staging, about one- third of buyer’s agents said that staging a home increased the dollar value their clients offered between 1 and 5% compared to other similar homes on the market that were not staged.

So what exactly is staging?

Home staging is the act of preparing a home for sale by arranging furniture and decor that allows potential buyers to picture themselves living in the home.

The goal of staging is to make a home appealing to the highest number of potential buyers, causing it to sell more quickly and at a higher price point. As a real estate agent, I have a pretty good understanding of staging concepts.

Real Estate Lawyer, Ensure Your Closing is Smooth

· Closing Lawyer. He/ She will look after all your legal and financial transactions without any hassle to you · Solid Communication. They keep you updated on what’s happening at all times and respond to your inquiries in a timely manner. · No surprises. They work hard to get everything lined up properly early on in the transaction, so there are no surprises later. · Convenient closings. They work hard to close at a time that is convenient to your schedule. If you can’t make it to the closing, they’ll handle it with a “convenient” closing. · Competitive Rates. They work hard to offer their services at a competitive, affordable price. · Knowledgeable. They understand that real estate is a complicated industry. If you have any questions throughout the process, they’ll answer them for you.

Nadeem Khawaja Real Estate Broker

Metro King Realty Inc. Direct: (519)-200-2000 Office: (905)-895-2882

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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, or condominium — the single largest, most complex transaction a person will ever undertake. It involves new terms and concepts, financial acumen, and larger figures than normally dealt 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 investment in homeowners’ time, energy, and money, and emotions almost always lead to problems in a sales price negotiation. The home seller’s objective is to find that home shopper who cannot resist buying your house at the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market. It requires making a fantastic first impression, creating for the buyers an instant feeling that they are travelling up the front walkway of their new home for the first time, not visiting someone else’s. It’s about falling in love at first sight, from the curb, in those initial seconds. Most sellers don’t venture alone into selling their home. They find it better to have an experienced real estate professional with whom they are comfortable. This book was written to provide some of that comfort without the direct sales stressors of person- 1

to-person contact.

I want the prospective or active home seller to independently achieve a better understanding of the home-selling process. I’ve also provided actionable insight into how best to 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 at the best price. Take time looking through the 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 market value, best listing price, negotiation tactics, and improvements that offer 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. In Part 1, the process and importance of preparing your house for sale is examined: how to present to get top offers, the “80/20 rule,” along with 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. In Part 3, we examine the critical topic of negotiations — what to expect and how to conduct them — and finish with a look at what engaging a real estate professional brings to your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute 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 Comparative Market Analysis and a solid marketing plan to fit your budget and lifestyle.

CHAPTER 2 First Steps to Home Selling

Location! Location! Location! 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 that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally 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 is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to 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 in its local market, i.e., its geographical area, generally an area such as a suburb or neighbourhood. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what 5

terms.

For example, the Loan-to Value (LTV) ratio is based on the appraised value. Buyers with a down payment of at least 5% of the purchase price but less than 20% must be backed by mortgage insurance. This protects the lender in the event that the home buyer defaults. These loans are known as “high LTV” or “high ratio” mortgages. In situations in which the buyer has 20% or more for a down payment, the lender or borrower could obtain “low-ratio” insurance that covers 100% of the loan in the event of a default. Mortgage insurance is backed by the Canadian government through the Canada Mortgage and Housing Corporation (CMHC). (Globe and Mail, 2016; updated 2017) Assessed value is the amount local or provincial government has designated for specific property, and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value.

WHAT IS YOUR HOME WORTH?

The first step in selling your home is knowing the difference between value, worth, and price. Let’s examine the determining factors at work. Understanding those factors allows them to be leveraged. There are several ways a home’s value is derived.

ONLINE HOME VALUATION

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 of the property. Be aware that the prices arrived upon might even be highly inaccurate.

PROFESSIONAL APPRAISAL

Nothing determines the sale price of a piece of real estate but the price at which it actually sells. 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 developing a perspective of value for real property. This is the market value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently, and every real property is unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.

The important factors in a house appraisal are:

• Dwelling type (e.g., one-storey, two-storey, 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 — type of neighbourhood, zoning areas, proximity to other establishments • Age of property • Size • Depreciation

Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as property cannot change 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. His or her job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price.

COMPARATIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation, the Comparative Market Analysis (CMA), is often free from some real estate professionals, and more detailed and helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions, and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market must be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I will be happy to

provide you with a CMA.

Please refer to the last page of this book if you would like more information on how to request a free home valuation.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Prior discussion showed that there is no calculable certainty in setting the value of a home. There can be wide differences between the seller’s assessed price, the asking or listing price (market value), and the price at which the home sells (sale price). Let’s turn to what the homeowner/seller can do to elicit offers at, or even above, the listing price 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 — and willingness to live in that pristine 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 is considered balanced or neutral, which means a good number of homeowners are selling and buyers are purchasing; therefore, neither has an upper hand. In Canada, ever since the end of the short recession in 2008, this has generally been the case in most provinces. However, market shifts can—and do—happen. A variable, for instance, like a major company entering — or moving from— the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days or less, while that of a slow market may be up to nine months. Typically, any number below six months is considered a “seller’s market.

EXAMPLE OF DIFFERING HOME VALUATIONS

A buyer is interested in a home listed at $525,000. The online valuation determines the house is worth $550,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $500,000, and the existing tax records assess the home at $400,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $525,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? The fact that they paid $525,000 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 can’t take into consideration the condition of the property or the qualities of the neighbourhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. Ideally, 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 take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the appraisal.

LIVING IN A FISHBOWL

A house on the market requires keeping the home in a constant “show-ready” condition, and changes in day-to-day life are inherent in the process. Sellers get unexpected phone calls at all hours from unrepresented prospects and buyers’ agents to show the home, as well as frequent updates by phone, email, and text and show appointment scheduling messages from the listing

agent. They also will likely deal with repair and reconditioning appointments and inspections. The house may be photographed for online, periodical, or brochure presentations.

There are repeated showings when the home first hits the market. Keep your home in pristine showing condition for impromptu visitors — the perfect prospect might just drop in at dinnertime.

CHILDREN AND PETS SHOULD BE UNSEEN, UNHEARD

Children (and Pets) Should be Unseen, 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 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. Many real estate agents provide their clients with dozens of homes to consider without a clear picture of what the buyer wants. Low-interest traffic can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or even hours out of your day, finding an interested buyer is what matters most. The home will be shown to many more uninterested buyers 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.

That said, 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 efforts.

CHAPTER 3 The 80/20 Rule

“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

RELATING THE 80/20 RULE TO 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

don’t 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 of the Pacific. They looked at many desirable properties, on Toronto 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 short walk from the lakeshore. 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 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 had also looked at a home within just a few kilometres

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 buyers’ eye and prompted them 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. Another 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. An owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex because his had a characteristic shared by fewer than 10% of others — in fact, he had the only available listing offering that feature. He pointed to that feature in marketing the townhouse. With 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 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. Don’t bother spending too 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 point, 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 neighbouring 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, consider making that improvement.) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out 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 motivated to make a purchase. You won’t have to show as frequently. You also won’t have to sift through lowball 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 neighbourhood to see what makes yours stand out. Work with that.

HOW THE 80/20 RULE APPLIES TO HOME 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 offers 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 sun set. 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 window. As they entered the great room, the sun was setting below the distant tree line. That view sold the buyer. The remaining parts of the home could 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. 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.

CHAPTER 4 Creating Curb Appeal

Someone once said, “a stunning first impression is not the same thing as love at first sight. But surely it is an invitation to consider the matter.” This could not be truer than in selling a home. First impressions matter. Sometimes they are everything. Nothing sets the tone of a relationship or encourages a transaction more than first impressions. So, always consider what a potential home buyer may think as he or she drives up to your property for the very first time. Think of “curb appeal” as the home seller’s shop window. Like picking a lunch place on a busy avenue in a tourist spot, it’s either the outside presentation, or as we saw in the 80/20 rule discussion, some particular feature that brings in the customers. For most lunch seekers, it is the way the place looks (“curb appeal”), and to others, the soups and sandwiches they serve (specific desired feature). You do not have a lot of time to establish a curb appeal relationship with a prospective home buyer. Whether cruising the web to view online photos from across the country, or cruising by your home in the family SUV on a Sunday afternoon outing, home shoppers will decide at a glance whether they want to see more. “We buy ugly houses” is a sign often seen nailed to electric poles. Rehabbers look for ugly houses so that they can pay the least amount possible; home buyers looking for a deal — not a “basement bargain” — do not want an unattractive home.

Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did not find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by. Try this. Go out into your street and look — I mean really look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are their necessary repairs that you have been putting off ? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from real estate experts, your friends and/ or potential home buyers about how you can make your house show better. Then, take a drive around your neighbourhood and surrounding area and see which homes for sale appeal to you and note why. Well- tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door. The outside appearance of a property needs to be an invitation to come inside. Potential home buyers are drawn to welcoming entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Low-cost investments like power washing the house and concrete, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with

little to no expense. Repair and repainting are costlier, but often tell in time-to-sale or sale price. The goal here is to get more money for your home. Home buyers generally aren’t interested in a home that needs work, unless you want to sell below market value. Look around your yard, and make a written list of everything that could be improved: • Shrubs trimmed, flower gardens tended, walkways tidy, and beds weeded • No trash, trash cans, lawn clippings, branches, or general mess in the yard • All outside fixtures and components (door and yard lights, garage door, porch rails); functioning properly and looking their best • Outdoor features, such as patio furniture or the deck, updated with staining or painting Make all major and minor improvements to update the exterior of your property. There might be a long list of things to do. It takes hard work to get a home ready to sell. Anyone can put a house on the market, but not everyone sells quickly or with great profits. Then, await the prospective buyers who will be drawn to the inside of your home when they see how beautiful it is from your curb!

CREATING A GRAND ENTRANCE

As I mentioned earlier, an important part of curb appeal is the home’s “grand entrance” — the portal to even the most modest house. You want to create a sense of a great place to come home 21

to. Impressing the home shopper at the front door is a vital part of the home sale. This means more than putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe, and secure when they open the door. The doorknob is the first point-of-touch on a home. Security is important to home buyers. A flimsy lock or handle on the front door will make potential home buyers uncomfortable, and they may not even know why. Replace a worn or loose entry handle. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. This investment of less than $100 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door is a focal point; make it impressive. Freshen it up and add a dash of color. Choose a paint that complements the color of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI.

SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB APPEAL:

• Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home needs balance. • Use outdoor lighting to add to landscaping appeal as well as a perceived safety feature. • Use flower boxes and raised flower beds to add instant color. This is an easy, inexpensive way to enhance curb appeal. • Spruce up the landscaping. Eliminating weeds and adding

fresh mulch can really make a difference and shows homeowner care and maintenance. • Consider enhancing architectural appeal by adding molding to the tops and sides of the doorway or around windows. • Keep shutters and trim in excellent shape. Repainting them adds to the attractiveness. Fence gates, arbors, and fencing panels should be fresh and clean. • Clean downspouts and gutters. Repaint or touch up to eliminate rust spots. • Ensure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping interfere with home shoppers walking up and diminish the inviting look. • Try a fresh coat of exterior paint; faded or chipping paint, siding, or trim will always detract from curb appeal. If exterior paint is good, ensure door and window trim are, too. This simple upgrade is well worth the cost. • Power washing the house, walkways, and driveway can be almost as effective as repainting, at a much lower cost. Power washers are easily rented from hardware stores. • Adding some stone or stone veneer to the face of the home is an inexpensive way to instantly update your home, if it complements the design. • Add a “smart” doorbell. Most home doorbells are outdated or not working, so if you invest around $150 to $250 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers who are looking for security measures.

Curb appeal is one of the most essential elements in selling your

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