Let’s begin with a practical examination of what the home-selling process is and how it works. We’ll examine how listing prices are determined and look at various ways that a listing price is set. I will discuss online valuation, professional appraisal, and the great benefit of a Current Market Analysis (CMA) by a REALTOR®. I’m also going to drive home the importance of the seller’s time, effort, “sweat equity,” financial investment, and working as a team with a carefully selected real estate agent. It’s not a hire-me-and- you-are-done transaction. To get the most money for your house, you’ll have to invest in touch-ups, improvements, staging, keeping the grass cut, and many other items. Just as important, you’ll want to focus on the factors that increase your home’s value and saleability, not merely throw money at items that will provide no measurable advantage.
THE 80/20 RULE
Imagine a buyer is in the market for a three-bedroom home and his agent found him five houses to preview. Each meets his general criteria, with similar features, is comparable in price, and is located in his desired area. One would assume the buyer would have a difficult time deciding between the houses. But no matter how similar they may seem, no two houses are exactly alike. Let’s say that one out of the five houses has a pool. The buyer is unaware of this feature, however, because the agent didn’t bother to mention it. The buyer tours the four houses without pools and isn’t particularly interested in any of them. Then he sees the fifth house with the pool. Suddenly, he is ready to make an offer. He might even pay full asking price, even though this house is more expensive than the others. Here’s where something called the “80/20 rule” comes into play. The 80/20 rule, also known as the Pareto principle (suggested
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