Loni Lueke REALTOR® - Smart Selling: Boost Your Home’s Value

Smart Selling: Boost Your Home’s Value

Loni Lueke REALTOR®

Table Of Contents

How to Say Goodbye: Emotionally Preparing to Sell

Prepare to Sell: Setting the Stage for Success 3

The 80/20 Rule: Focus on What Sells

Curb Appeal: Making a Lasting First Impression 11

Is Staging Worth It? Absolutely!

Upgrading for ROI: Smart Investments in Your Home

Declutter, Depersonalize, and Discern: Make Your Home Buyer-Ready

When is the Price Right? Understanding Market Value and Timing

FSBO Mistakes: Common Pitfalls When Selling on Your Own

10. Learn from Their Mistakes: Avoiding Common Seller Blunders

11. Finding the Right Buyer: Connecting with Your Ideal Market

12. Negotiating Like a Pro: Strategies for Success 61

13. The Dos and Don'ts of Negotiating

14. The Art of Bargaining: Getting the Best Deal for Your Home 71

15. FSBO or Why Expertise Matters

Turning the Tide: New Rules, New Opportunities for Sellers or Sellers Since August 17, 2023, significant changes have reshaped real estate following the NAR settlement, and these new rules are affecting both sellers and buyers alike. Historically, it was common for Sellers paying the commission for both their agent and the buyer's agent. However, under the new regulations, buyers and sellers are now responsible for paying their own agents. Although this change may be more difficult for buyers and their agents to accept, it affects everyone in the process, and it’s important to acknowledge that not everyone is happy with it. However, what this shift also brings is increased flexibility for you, the seller. Under the new rules, you have more control over how you can help and attract the buyer. This means you can offer creative incentives, such as credits or concessions, that can be used toward closing costs or other expenses—things that may ease the buyer’s financial burden. What’s important here is that these concessions can also partially be used to compensate the buyer's agent. This added flexibility allows sellers to think more strategically about how to make their homes stand out in the market without being locked into outdated structures. I want to assure you that I am here to help guide you through this process. My priority is to ensure that you feel empowered by these changes, not overwhelmed. By understanding the opportunities within this new framework, we can tailor an approach that works best for you and your goals. The market may have shifted, but my commitment to your success has not. Together, we’ll navigate this evolving landscape in a way that's in your best interest as the seller. My best, Loni v

CHAPTER 1 How to Say Goodbye: Emotionall e: Emotionally Preparing to Sell o Sell For many, a home represents more than just their largest financial investment—it’s where life unfolds. Selling it can feel like a major transition, not just a transaction. Whether you're excited to move on to new beginnings or feeling bittersweet about leaving a place filled with memories, this process can be deeply emotional. As you prepare to sell, emotions can sometimes make it hard to see your home through the eyes of a buyer. Over the years, you've likely invested not only money but also love and effort to make the space your own. The memories you’ve created—raising children, hosting friends, celebrating milestones—add sentimental value. However, it’s essential to understand that personal upgrades may not always match what today’s market values most.This emotional attachment can sometimes make negotiations more challenging. Before listing your home, it’s important to emotionally detach and start seeing it as a product—a house that will soon belong to someone else. Helping potential buyers feel that your home is worth the asking price starts with presenting it in a way that speaks to them. And here’s something to remember: first impressions matter. For many sellers, navigating these emotions while managing the practical side of the sale can feel overwhelming. That’s why having an experienced real estate professional on your side can make all the difference—not just in terms of strategy, but in providing the reassurance you need to feel confident every step of the way. I wrote this book to help guide you through that balance, blending the emotional and the practical. 1

My goal is to give you a clearer understanding of the process, helping you feel in control as you prepare to sell. I’ll walk you through how to market your home effectively, avoid common pitfalls, and stay focused during this important time in your life. Think of this book as a resource, filled with insights and strategies to help you sell your home not only quickly but at the best possible price—without losing sight of the emotions involved. You’ll also learn why similar homes sometimes sell for very different prices, and what key factors contribute to that. Part 1 focuses on preparing your home for the market, ensuring you attract top offers while transitioning emotionally from “home” to “house for sale.” Part 2 dives into marketing your home—connecting with the right buyers and avoiding the common mistakes that can hinder a sale. Part 3 offers advice on navigating negotiations and highlights the value a real estate professional can bring, not just to the process but to your peace of mind. If, after reading this book, you’d like more personalized guidance, I’d be happy to provide you with a Comparative Market Analysis and a customized marketing plan that fits both your lifestyle and your budget.

CHAPTER 2 Prepare to Sell: Setting the Stage f o Sell: Setting the Stage for Success Location is a big factor, but it’s not everything. When you first bought your home, there was probably more to your decision than just the location. Maybe it was the feeling you got when you first walked in, imagining your family’s future there. Or maybe it was the charm of the neighborhood and the convenience to work or schools. As you prepare to sell your home, it’s natural to wonder how its value is determined and why similar properties are often priced differently. You might have an idea of what your home is worth, but emotions can sometimes cloud judgment. After all, this is a place filled with memories, and you’ve likely made improvements over the years. But it’s important to recognize that those upgrades may not always add as much value to buyers as they do to you. Overpricing your home is one of the main reasons properties can sit on the market for too long. This can lead to disappointment and frustration. By understanding key real estate terms and how they affect your home’s value, you can avoid that pitfall. Terms like market value, appraisal value, and assessed value are crucial to setting the right listing price.

Market Value, Appraised Value, and Assessed Value: What is the difference?

• Market Value is what your home is likely to sell for in a competitive, open market. It’s the price buyers are willing to pay based on current conditions. • Appraised Value is determined by a professional

appraiser, who evaluates your home’s worth at a specific point in time. This value is often used by lenders to decide how much they’re willing to loan you. It’s also tied to your Loan to Value (LTV) ratio, which can influence whether you need mortgage insurance. • Assessed Value is what local governments use to calculate property taxes. This number often differs from the market or appraised values, and in fact, about 60% of U.S. properties are assessed at higher values than their current market worth. Understanding these values helps you avoid overpricing, ensuring your home is attractive to buyers from the start. Professional Appraisal: A Key Step in Pricing A professional appraisal can be incredibly helpful when determining the value of your home. Appraisers take into account a variety of factors, such as the size of your home, its condition, location, and recent sales of comparable homes. They also consider any upgrades or improvements you’ve made, but it’s important to remember that some updates will add more value than others. Appraisals are valuable for several reasons. As a seller, you can use the appraisal to set a realistic price. Buyers use it to guide their offers, and lenders rely on appraisals to determine how much financing they’ll provide. Here’s what appraisers typically look at: • The type of dwelling (one-story, two-story, split-level, etc.) • Features and materials used in construction • Any improvements or updates • Comparable recent sales in the area • The age and size of the property • The condition of the home

While you can’t change your home’s location, making strategic improvements and maintaining the property’s condition can positively impact its appraised value. Another key tool in determining your home’s worth is a Comparative Market Analysis (CMA) s (CMA), which your real estate agent will provide. This report is more personalized than an online estimate, offering detailed information about recently sold homes in your area, including their final sale prices. It also highlights current listings, so you can see what your competition looks like. By combining this analysis with an understanding of the current market, you and your realtor can work together to set a competitive and realistic asking price for your home. What You Can Do The key factors in this process are the seller's time, effort, and willingness to invest in preparing the home. Presentation is crucial, and homes that are well-maintained and staged to appeal to buyers tend to sell faster and for higher prices. Additionally, living in a "show-ready" state for the duration of the selling process—while not always convenient—can significantly impact the success of the sale. In real estate, market conditions also play a significant role. A balanced market, where homes typically sell within six months, indicates that supply and demand are fairly even. Neither buyers nor sellers have a strong advantage. However, since 2021, we’ve often seen a fast-paced market, where homes can sell in 30 days or less. In contrast, in slower markets, homes may take up to nine months or longer to sell. Generally, when homes sell in fewer than 3 months, it’s considered a seller’s market, meaning demand is high and sellers are more likely to receive competitive offers.

Living in a Fi g in a Fishbowl This process can sometimes feel like you’re living in a

fishbowl—keeping your home in “show-ready” condition every day. Buyers may request showings at all hours, and while this can be disruptive, it’s essential to making a good impression.When your home hits the market, you’ll want it to shine, both in person and online. Professional photos are crucial since most buyers will see your home online before they visit in person. Expect a lot of activity when your home is first listed, with agents and buyers scheduling showings. It’s important to be flexible and prepared for these appointments, even if they come at inconvenient times like dinnertime. Children and Pets: Keep Them Unseen and Unheard Don’t take it personally, but children and pets can sometimes be distractions during showings. Buyers want to imagine themselves in the home, and too many personal touches—whether it’s toys or pet beds—can make that harder for them. Plan to have kids and pets out of the house during showings, and always keep the home tidy. Dealing with Window Shoppers It’s natural to hope that every person who walks through your door will be a serious buyer, but the reality is that some people are just browsing. This can feel frustrating, especially when you’ve spent time cleaning and preparing your home. However, each showing brings you closer to the right buyer. Working with a professional real estate agent can help screen potential buyers, ensuring your time isn’t wasted. Selling your home isn’t just about the price; it’s about making sure every detail is in place to maximize its appeal. Whether it’s preparing your home for showings or understanding how your home’s value is determined, this chapter has given you the tools to approach the process with confidence and clarity. And remember, if you ever need more personalized advice or a detailed market analysis, I’m always here to assist.

CHAPTER 3 The 80/20 Rule: Focus on What Sells

You’ve likely heard the saying, “80% of the results come from 20% of the effort.” This is known as the Pareto Principle, named after the Italian economist Vilfredo Pareto. In 1906, he noticed something interesting in his garden: 20% of his pea plants produced 80% of the healthy pea pods. He then applied this idea to other areas, discovering that 80% of Italy's land was owned by 20% of the population and, in business, 20% of companies generated 80% of production. This pattern, though not always an exact 80/20 split, is seen everywhere: • 20% of sales reps make 80% of total sales. • 20% of customers account for 80% of total profits. • 20% of software bugs cause 80% of system crashes. But how does this apply to selling your home? Let’s dive into it. The 80/20 Rule in Real Estate: Focusing on What Matters Most When it comes to selling your home, the 80/20 rule can save you a lot of time and effort. Rather than trying to “sell” every aspect of the home, focus on the 20% that truly makes it special. These are the unique features that will catch a buyer’s eye and make them feel your home is the one for them. While the other 80% still matters and will affect their decision, those special features are what you’ll want to highlight in your marketing, photos, and showings. So, ask yourself: What 20% of your home stands out? What features will make potential buyers fall in love with it?

Location, Location, Location

One of the biggest features that can set a home apart is its location. Sometimes, even homes in the same neighborhood can differ in value based on where they’re positioned. Whether it’s a quiet cul-de-sac, a corner lot, or a private setting with lots of trees, location can add serious value to your property. For example, a buyer might pay extra for an apartment because it overlooks the woods or the ocean instead of the parking lot. Another seller got a higher price because their home bordered a large, open yard, unlike most of the others in the neighborhood. Whether your home is close to the beach, shops, or restaurants, or has a beautiful view, location can be the key factor that helps sell your home quickly and for a higher price. How to Highlight Your Home’s Unique Features To sell your home effectively, identify and improve the features that make it stand out. Focus your marketing and showings around these aspects. For instance, if your home has a great backyard with a dog run, highlight that feature rather than explaining how a storage room could be converted into another bathroom. Buyers who are looking for specific features will gravitate toward your home if you showcase what makes it special. Here are some unique features you might want to highlight: • A house with ocean, marsh, or lake views. • A property that offers stunning sunrises or sunsets. • Special outdoor spaces like patios, decks, large gardens, or gazebos. • A large or private backyard, or one with a fence (fenced yards are a huge selling point for buyers with pets or kids). • Features like a finished basement, large attic, garage, or a swimming pool. By applying the 80/20 rule, you can avoid wasting time showing 8

your home to people who aren’t really interested. Instead, you’ll attract motivated buyers who are willing to pay for the features they care about most. This also means fewer low-ball offers from casual shoppers and more serious interest from buyers who see the value in your home’s standout features. Real-Life Examples: The 80/20 Rule in Action Let me share a couple of real-life scenarios that show how powerful the 80/20 rule can be. In one instance, a buyer had spent the whole day touring homes with their agent. By the time they arrived at the last house, it was nearly sunset. The exterior of the home looked outdated, and the yard needed some care. But as soon as the buyer stepped inside and saw the breathtaking view from the great room, they were sold. The sun setting over the distant tree line was enough to make them offer the full asking price, despite the fact that the rest of the house didn’t stand out. The view, that 20% feature, sealed the deal. In another case, a custom-built home had been sitting on the market for months without any offers. The builder was puzzled—what wasn’t working? They hired a real estate agent who knew how to apply the 80/20 rule. Upon visiting the property, the agent immediately noticed something unique: the house sat on a five-acre lot, while most of the other homes in the area only had one or two acres. The agent shifted the marketing strategy to highlight the larger, more private yard instead of just focusing on the house itself. Interest quickly grew, and the home sold soon after. Uncovering Your Home’s Hidden Potential You might not immediately know what makes your home special, but taking the time to find out is crucial. What stands out compared to other homes in your neighborhood? What do visitors or neighbors always compliment when they see your house? Once you’ve identified your home’s unique features, put effort into improving them and making them the focal point of

your marketing. This approach saves time and frustration. You’ll be showing your home to people who are genuinely interested in what makes it unique, which can lead to faster offers and, often, a better price. By applying the 80/20 rule to your home sale, you’ll not only make the process smoother but also increase your chances of finding the right buyer at the right price. Focus on the 20% of your home that makes it shine, and let that be the reason someone else falls in love with it.

CHAPTER 4 Curb Appeal: Making a Lasting First Impression There is no second chance for a great first impression! Please have that in mind if you consider selling your home. In real estate, nothing sets the tone of a relationship or encourages a transaction more than first impressions. So, always consider the thoughts and emotions a potential homebuyer may have 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 homebuyer. Whether cruising the web to view online photos from across the country or cruising by your home on a Sunday afternoon outing, home shoppers will decide at a glance whether they want to see more. 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. 11

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 there necessary repairs that you have been putting off? How does your house look compared to the others in the street? Would you still purchase your house if you were in the market? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from your friends and neighbors and talk to real estate experts, about how you can make your house show better. Then, take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you and note why. The outside appearance of a property needs to be an invitation to come inside. Potential homebuyers 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. Repairs and repainting are costlier, but the payoff is often reflected in the sale price. The goal here is to get more money for your home. Homebuyers generally aren’t interested in a home that needs work, unless they get it 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 Great 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 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. Security is important to homebuyers. The doorknob is the first point-of-touch on a home. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable, and they may not even know why. Replace a worn or loose entry handset. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. Make sure the door opens easily! 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 (Return on Investment).

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. The mailbox should complement your home. If it is worn, dated, or unsightly, replace it. This doesn’t cost much and is worthwhile. 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 clean and fresh. 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. Eight of 10 home doorbells are outdated

or not working, so if you invest $200 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 home quickly and successfully. You can create interest in your home before buyers even step out of the car, even if they didn’t think they were looking for a home like yours. If you put money into cleaning up the outside of your home, buyers will be far more likely to want to see the inside. Your home’s curb appeal draws buyers in, maintains their interest, and sets your home apart from the competition. What most buyers want, in particular sind 2021, is new construction or completely remodeled. Unless you are willing to lower your home’s price well below market value, prospective homebuyers typically won’t want to take on a major renovation project.

CHAPTER 5 Is Staging Worth It? orth It? Absolutely! As mentioned earlier, home buyers are increasingly looking for updated, contemporary spaces. This trend has gained momentum over the years, and it’s still going strong. Staging presents a great opportunity to make your home more appealing, especially if you’ve already moved out. Even with a few key pieces, you can refresh your current home and give it a more modern, inviting feel that resonates with today’s buyers. The payoff is proven. Staging is considered one of the most effective marketing strategies to increase the value of your home. This strategy is effective in any market, in any type of home property being listed. It applies equally to single-family houses, apartments, townhouses, and condos. This approach works! Agents and sellers using this tactic have a greater chance of selling the property for more money.

Staging the home will: - Distinguish it from the competition - Attract top dollar from homebuyers - Provide a visual edge over the competition

STAGED VS. NON-STAGED CASE STUDY & REPORT

Dear Reader, I wanted to give you the most convincing proof possible. Many people find it hard to believe that the simple act of staging helps one home sell for more than another, similar home. 17

In my research, I looked for examples of similar houses being sold for differing amounts of money, where only one of the two houses was staged. The clearest example I could find was in the case of these two listings. This development has 200 equivalent townhouses. Every single townhome in the neighborhood is three stories, with three bedrooms and three bathrooms. Every unit has the same floor plan. I looked for two sales there, and found these: Townhome A sold on August 26. Townhome B (5 doors down) sold on July 26, for 40,000 dollars less. I visited this neighborhood, and I am familiar with these properties. You could not find a better example of two identical properties that sold for different prices. The lots the units sit on are identical, as far as the desirableness of the location. Both units had the same kitchen plan, with the same cabinets and a tile floor. Both units had nice hardwood floors in the living room and carpeted bedrooms. Every important detail of these townhouses was identical. I studied every aspect of these sales to find what made the difference. There are two reasons one home sold for $40,000 more than the other: There were two main reasons why Townhome A sold for $40,000 more: it was professionally staged to look more inviting,

and the agent took high-quality photos that showcased the property beautifully. Those two seemingly small actions made the $40,000 difference! The buyers of Townhome A made a higher offer because the agent presented the home in a more appealing and attractive way. The Power of Staging Consider these results from surveys conducted by Coldwell Banker and the National Association of Realtors®: Staged homes spent 50% less time on the market than homes that were not staged. Staged homes sold for more than 6% above asking price. A staging investment of 1% to 3% of asking price generates an ROI of between 8% and 10%. Homes staged prior to listing sold 79% faster than homes staged after listing. What Buyers want To See Most home shoppers are envisioning a fresh start. If they can picture themselves living in the home, the home will be easier to sell. This is known as “interior curb appeal,” where the eyes are drawn to inviting spaces and light, as well as to unique features. Each room needs a purpose or suggested use. The home must feel new to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. Painting, updating fixtures, and eliminating stained carpets and popcorn ceilings can affect the saleability of the home by 75%! Neutralize Your Home The idea is to neutralize the home regarding personal taste or decoration, so buyers can easily envision the home as it would be outfitted in their taste or with their possessions without the distractions of the seller’s taste and possessions. In staging,

distractions are removed so the home shopper can imagine living in each space of the house. An effective way to achieve this is to paint all rooms in a neutral color. A wide range of neutrals is available, from soft grays to warm beiges. Painting the interior gives newness and freshness and can make the home appear more spacious. Using the same color in visibly adjacent rooms gives the house a seamless look and uninterrupted flow. Changing your window coverings to match the walls can also create an illusion of more space. Dark or bold wall colors can dampen interest in a home if used in large spaces; however, they can occasionally be used effectively as accent colors. Furniture: Less Is More In staging, a visibly inviting space is created so that the home shopper can envision or imagine life in that space. Minimization is the key. If the seller’s personal taste and style are showcased while the home is on the market, it may be a sale distraction. Preparing for moving is part of selling a home; it might as well be done at this stage of the process, to enhance the property’s saleability. Shortly, we will examine depersonalizing the home, a key step. First, however, we must examine the concept of creating space by minimizing furniture. Buyers are attracted to homes flooded with light and roominess. They are equally put off by cramped homes filled with unnavigable spaces. Home shoppers want to walk through a house without obstacles in the way. Space and storage are high on the list of buyers’ desires, so every area of the home should feel spacious. Remove all unnecessary furniture from living spaces. Store it while the home is marketed. Closets, pantries, and storage rooms must be free of clutter and look organized. Pruning back unnecessary items can create interest by showcasing space and

storage in areas such as closets, attics or basements.

Furniture placement is an easy way to highlight unique house features. A grouping of chairs in front of a fireplace will draw attention to it. Avoid pushing furniture close to the walls. Reposition easy chairs into floating group spaces. Every room must be staged to show function. An empty room used for overflow of boxes, possessions, or unwanted items should be transformed into a usable, desirable space. Clean it out and create an office space with a desk and chair, or a reading room with a lamp and recliner. Exercise equipment might be arranged to feature it as a workout room. Every room should have a purpose and be user-friendly. Make your home’s traffic flow smoothly, so buyers can browse each room without effort. Emotional Cues Once every room has a purpose, creating atmosphere is crucial to make the home desirable. Decorative touches of greenery, flowers, and coffee table books give life to a room. Creatively hung wall art can do the same. A bedroom that has only one bed with one pillow and blanket may make the room seem bare and lonely. By adding a table with a lamp and a rocking chair draped with a lap robe, you heighten its appeal. Be sure to add elements of the same color, shape, or texture to unify the room. Any splashes of color should appear in wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can even seasonally decorate your home without dashing its appeal. The main goal is to keep your home clean and free of clutter that distracts would-be buyers. Even simple things can make a big impact on the final sale price of a home. You have two options for staging a home: do it yourself, or hire a professional home stager. If you are considering hiring someone, I can provide recommendations.

To Stay Or Not To Stay? Home sellers often ask whether they should stay in their home while it is on the market, or move out. There are pros and cons to both and factors that can tip the scale to one side. Pros of Moving Out If the seller has engaged a real estate agent, the burden of showing a vacant home is virtually eliminated. The agent will field all calls, set appointments, and show the home. Buyers’ real estate agents are also more likely to want to show vacant homes. If agents have 20 home options and 15 are occupied, they may well show the vacant homes out of convenience. They don’t have to call and make an appointment and can simply go over and use the lockbox. Further, the continual pressure to keep daily life from affecting the home’s pristine staging presentation is eliminated. The seller is not under constant pressure to keep the home in immaculate showing condition. If you’re someone who might struggle to keep your home in turnkey condition for showing purposes — for example, if you have young children — consider vacating before putting the home on the market. Cons of Moving Out A vacant home can signal that the homeowner is a “motivated seller” who needs to sell quickly. Consider this example found on an online real estate forum. A buyer saw that a home was vacant and offered $30,000 less than the asking price. The buyer was sold on the home anyway and would have paid more, but “haggling” began well below asking price because the buyer assumed the owner was desperate to sell.

CHAPTER 6 Upgrading for ROI:

Smart Investments in Your Home Making upgrades can be as easy as replacing the handset on your front door and freshening up the paint job, or as daunting as remodeling an entire kitchen or master bath. The question always is, what home improvements give the best return on the remodeling dollar? Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” It is frequently advised in this area that it’s better to update/remodel your home while living in it and not solely at the time it comes to sell. That way, there is more enjoyment in the improvement and less cost and time in preparing for sale. Some desirable upgrades or home improvements will not return their cost in the sale price, so it’s better for the owners to enjoy them all along. If your home is worth $375,000, and you spend $30,000 to revamp the kitchen, don’t make the mistake of assuming that the investment will increase the value, dollar for dollar. The remodel may add value to the home, but the return in dollars spent will be around 50%. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms isn’t wise, just to sell your home. That’s not to say you can ignore necessary repairs that a home inspector would red-flag or mortgage company would demand before issuing a loan to a buyer. If major problems, like a leaking roof or outdated electrical wiring, exist, you may want to repair 23

those before putting your home on the market, or expect to give concessions to the buyer. Starting With The Basics Every listed home should meet the basic expectations of any buyer. It should have a sound roof, functioning gutters and downspouts, foundation without cracks, functioning heating and/or air-conditioning system, solid subflooring, and safe and secure electrical wiring. With finance-mandated home inspections, any shortcomings may be required to be remedied to get buyer financing approval. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodeling to sell the home or to increase the value may not pay off. The property needs to be up to the standards of neighboring homes, so while the kitchen has to be comparable to others, spending $30,000 to remodel a kitchen in an area where comparable homes recently sold for $375,000 will not increase the house’s value to $400,000. While it may be a helpful selling feature, it won’t return dollar-for-dollar value. Mechanical Maintenence is a Must It is easy to get wrapped up in the more eye-pleasing aspects of preparing a home to sell. However, the upkeep of all the more mundane aspects of the home cannot be overlooked.

These mechanical features require consideration: - Electrical boxes and wiring - Natural gas lines - Plumbing - Central heating and air-conditioning

If these components are old, outdated, or not working correctly, the home’s appeal is lowered, as is the eventual sale price.

According to the National Association of Realtors®, heating and cooling costs were the most important environmental features for recent home buyers, with 83% finding these features at least somewhat important. People want to purchase a home that reflects their aesthetic tastes and lifestyles, but also one that is safe and sound. Faulty electrical systems do not provide a feeling of safety. Leaky plumbing arouses concerns of mold infestation and sewage problems. These areas can require extensive work and they are extremely important. Overlook them in the preparation stage, and you run the risk of trouble later with inspections and appraisals. Having a professional inspection for buyers to review is a big plus in marketing. - Have a certified plumber inspect the entire water system for leaks. - Hire an electrician to check the wiring. - Call an HVAC company and have technicians perform a thorough service checkup. - Contact the natural gas supplier and have them double-check the mechanics of your tank and lines. - Check the well and septic field, if applicable. If you’re looking for an alternative to calling and arranging all the different inspections, certified home inspectors usually cover all items related to mechanical issues (and more). They will be able to identify possible trouble spots. Many buyers hire an inspector, so you may be saving them a major step in the sale process. If you have mechanical issues and decide to sell your home “as is,” it may be necessary to negotiate with the buyer. Replacing Appliances New appliances undoubtedly make an impact on buyers. The National Association of Realtors® conducted a survey of buyers

and found that: Buyers were usually “interested” or “somewhat interested” in buying a home that featured new appliances. 41% percent of home buyers were willing to pay more for a home with stainless steel appliances. Potential buyers want appliances included and will pay more for them, especially if they are new or in excellent condition. Most buyers who were unable to get their sought-after appliances said they would have been willing to pay, on average, nearly $2,000 more for them. New appliances might be what sets a house apart from the home for sale across the street. If new appliances are out of reach, offer immaculately clean and fully functioning existing ones. Updating Hardware Carefully inspect your bathroom and kitchen hardware. If it is unsightly or worn, it’s best to replace it. Put yourself in a buyer’s shoes. Your house will potentially be their new home. Old, worn-out fixtures are not going to speak to them the way nice, new shiny hardware will. Unless your knobs, pulls, handles, or hinges are broken, you need not replace them. Get that fresh look simply by thoroughly washing, sanding, and painting them with spray paint made specifically for kitchen and bath hardware, making it cost- effective. Check these hardware items closely and replace, as needed: - Towel bars - Toilet paper holder - Door handles - Dated light fixtures The goal is to touch up your home nicely without excessive spending. The internet has a wealth of do-it-yourself videos that can help you update your bath and kitchen if your budget is limited. If you have broken or worn-out hardware, it’s best to replace the

entire set. If you can find matching pieces, you can paint the old and new to match. Let There Be Light Whether natural or artificial, bringing in light is one of the most effective ways to show off your home. Using light to enhance your home’s appeal can make a difference. Harsh light is unflattering, even to the best furnishings and features. Dim lighting gives everything in the house a dingy feel. Assessing the lighting in each area of your home will give you a quick idea where to bring in more light, in particular if you switch your lights to LED retro. Rooms with abundant windows greatly benefit from natural light, as your home will be seen during the day. Supplemental light is necessary for rooms with smaller windows or little natural light coming in. Increase the wattage of light bulbs in your lamps to improve artificial light. As a rule of thumb, there should be 100 watts for each 50 square feet of space. There are three kinds of lighting. General lighting or overhead is typically ambient. The pendant light is good for tasks like food preparation or reading. Accent lights are usually on tables or mounted on walls. You can use all three to bring out the best your home has to offer. Key areas, such as foyers, can set the stage by impressing buyers with a dramatic light source. If you do not have an abundance of natural light coming in, a chandelier-type light works if your ceilings are high. Otherwise, wall sconces are impressive in smaller spaces. Do not assume you need to buy new fixtures if you can update existing ones. The goal is to make sure each area of the home is effectively lit. Kitchen and bathrooms are pivotal rooms. These two areas can make or break a sale. The combination of ambient, natural, and pendant light can bring out the best in your kitchen space.

Mounting track lighting underneath cabinets gives the counters a chance to shine aesthetically and functionally. Make sure the light over the sink area is sufficient and working properly. If you have a hood over the stove, install clear bulbs or LED to ensure the brightest light. Lighting in the bathroom needs to be intense without being harsh. Soft lighting enhances any part of the house you want to highlight. Avoid harsh lighting in the bedrooms, as well. Lamps strategically placed will give the bedrooms a peaceful, restful feel. The closet light should be bright, though. One last tip: Lightly painted rooms still need sufficient light so the room does not appear drab. Flooring Plan Although you want to avoid home shoppers looking down on your home, they will be looking down at what is under their feet. Your home’s value can be downgraded by the buyer if your floors are in bad shape. On the flip side, if your home’s flooring is well done and in excellent condition, buyers will be more willing to pay more for it. Maximizing profit without compromising investment dollars is the goal, but if flooring and carpeting are not in salable shape, you need to take inventory. There is no point in spending money unnecessarily if the improvements do not add significant value or help the home sell quickly; however, there are options that don’t break the budget. Repairing and thoroughly cleaning the floors are the least expensive ways, so start with those. Take stock by examining all floors. Move furniture out of the way and make notes regarding condition, stains, or blemishes. Write down what needs to be replaced, cleaned, or repaired.

Carpets can be steam cleaned to eliminate stains and odors. If the carpets are path-worn and dull, you can replace them easily with other kinds of flooring with a reasonable ROI, although carpeting does make a room feel cozy. Laminate floors can be cosmetically fixed with repair kits found at home improvement stores. Hardwood flooring can be easily refinished if the wood is worn or water damaged. Seek the advice of a flooring professional because real wood floors add a level of quality to a home that laminate floors cannot match. Kitchen And Bath When upgrading your kitchen or bath, it’s important to understand what makes a smart investment. The key is focusing on mass appeal to increase your home’s resale value. For example, one homeowner added a backsplash, expanded cabinet space, updated appliances, and refinished the oak floors. They invested around $10,000 in total. By keeping the asking price competitive with other homes in the area, they ended up selling for $27,000 over the asking price, thanks to a bidding war! The takeaway? You don’t have to overspend to sell your home, but you do want to create broad appeal. Kitchens, in particular, are a huge selling point Here are some suggestions of what you can do to your kitchen and bath to impress buyers without losing ROI: - Paint neutral colors. - Add a new backsplash in the kitchen. - Install new countertops if dated or if you need to bring the home up to current area standards. - Add new, multifunctional kitchen faucets. - Add cabinet space or increase storage in the pantry. - Replace dated bathroom vanities. Pedestal sinks or trendy cabinet sinks have mass appeal. - Replace toilet seats — or the entire toilet, if necessary.

Two Energy-Saving Upgrades That Lower Energy Cost More and more buyers are looking for homes that reduce consumption and save them money on utility expenses. Here are two options that can make your home more energy efficient. Install an energy-saving smart thermostat (less than $300) that saves on utility bills. Install solar vents ($500-$700) in the attic space that help expel hot-air during summer months. Making a Case For Space When people accumulate an abundance of possessions, they need space to store it. They also want a way to clear the clutter. According to the National Association of Realtors®, most homebuyers would have preferred improved and greater closet space, as well as other storage options. Consider these statistics showing what buyers are looking for in a home: 93% wanted a laundry room 90% wanted a bathroom linen closet 86% wanted garage storage 85% wanted a walk-in kitchen pantry There Is Never Too Much Storage Give buyers great storage, and you’ve won their hearts. If you can add new closets to your home easily, do so. Building a simple closet isn’t difficult if you are moderately handy. If you’re selling an older home, where closet space is typically minimal, this will help! If your rooms are already small, you might not want to take any square footage away from them. Existing closets can be updated to maximize the space at hand. If you don’t have the skills, or the funds to hire someone to build new space, consider investing in closet organizers to make the most of what space you have. For instance:

You can easily design your custom closet kit online with a storage solution company like ClosetMaid. Your standard home superstore or hardware store often has exactly what you need in an inexpensive, prefabricated form. Organizers won’t enlarge your closets, but maximizing vertical and horizontal space is a suitable alternative. And don’t stop there — after all, storage isn’t restricted to closets. Storage improvement opportunities apply to all cabinets, clothes, closets, linen closets, and attic and basement spaces. Make sure you organize your cabinets. The same retailers that provide closet organizers can help with this. Take a good look at your laundry room and linen closet. Adding extra shelving in these places can make a big impact. Look for any place you can provide attractive and inexpensive storage space. Make sure your improvements are tasteful, and you will benefit from increased storage solutions. Updating your home with ROI in mind is the best approach when preparing your home for sale. Look over this recent list of what buyers want in a home. Compare it to what you have in yours, and upgrade accordingly, without surpassing the price line for comparable homes in your area.

FEATURES MOST HOMEBUYERS WANT Energy Star-rated appliances — 94% Laundry room — 93% Energy Star rating for the whole home — 91% Exhaust fan in bathroom — 90% Exterior lighting — 90% Bathroom linen closet — 90% Energy Star-rated windows — 89% Ceiling fans — 88% Garage storage — 86% Table space for eating in kitchen — 85% Walk-in kitchen pantry — 85%

Keep in mind these features are not guaranteed to be effective or profitable upgrades.

FEATURES FEWER BUYERS WANT Shower stall without a tub in the master bath — 51% Two-story family room — 43% Wine cooler — 42% Wet bar — 41% Laminate countertop — 40%

Laundry chute — 32% Outdoor kitchen — 31% Game room — 31% His & hers baths — 31% Glass-front cabinets — 31%

CHAPTER 7 Declutter, Depersonalize, and , Depersonalize, and Discern: Make Your Home Bu our Home Buyer- Ready Depersonalizing the home involves removing your personal items, such as photos, trophies, and collectibles. Knickknacks and wall decor are also personal taste items that may distract buyers from seeing the home as theirs. It’s not personal, but not many people will appreciate your beer can collection, antique kitchen accessories, overstuffed closets, VHS/CD/DVD/ records collection, and general clutter, except you. Simplify and neutralize your home as if it were a model home because that’s exactly what it is while it’s on the market. Pack and store your treasured items out of sight. Consider monthly rented storage units until your home sells. Make your home a clean, welcoming, blank canvas, upon which any buyer can visually paint their own dreams. It may be hard but it will not feel like your home anymore. I understand! It's inconvenient to live in your home without your “stuff” — it’s like living in a hotel. However, it’s a necessary component of getting the most money for your house. Minimize as much as possible. You want the home shopper to see what your home has to offer, not guess about the potential or possibilities. The more spacious your home appears, the more appealing it will be. Work From a Plan Make a list in each room of the house, noting the clutter in each room, including closets.

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98