MICHAEL LAYMON-THE SELLER'S EDGE TO REAL ESTATE.pdf

THE SELLER'S EDGE TO REAL ESTATE

MICHAEL J LAYMON

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

Table Of Contents

Introduction

How To Stand Out

Creating Curb Appeal

Staging With Purpose

Upgrading With ROI In Mind

The 3 Ds

Setting The Price

How To Market Your Home

Make Your Home Picture Perfect

10. Common Seller Mistakes

11. Learn From Others’ Mistakes

102

12. Finding Buyers

108

13. Common Seller Negotiating Mistakes 110

14. The Dos And Don’ts Of Negotiating

118

15. Bargaining Chips

126

Foreword When I first ventured into the real estate industry 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!

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About Michael Laymon Michael J. Laymon joined Signature International Premier Properties as the managing director of the luxury division. Having previously worked closely with some of Palm Beach County’s most respected luxury home brokers. With almost 20 years of experience practicing Real Estate, Mike provides exceptional marketing, communication, and negotiating expertise with a comprehensive knowledge of today’s market conditions. His keen eye for details and honest approach has enabled Mike to earn industry-wide accolades and the respect of his both peers and clients alike. Mike has consistently placed within the top 1% in company total sales volume. In his career, he has been given several top performing agent awards. He has earned prestigious designations as a Certified Negotiation Expert (CNE), REO certified (REOC), and Real Estate Broker License. As a South Palm Beach County resident, Mike enjoys outdoor activities such as golf and fishing and spending time with his wife and two daughters. He remains an active supporter of Special Needs programs and The Big Brother, Big Sister Foundation. Michael Laymon continues to be one of the area’s successful, dedicated, and hard-working Real Estate practitioners. People like and trust him. His clients know he's not just in it for the sale. Whether it is a small condo or a multi-million dollar estate, He wants to make sure the transaction is a smooth process and stress-free experience for his clients. Mike aims to provide the highest level of service to his clients and takes deep pride in helping them achieve their real estate goals.

Customer Service is his Number 1 goal! ix

Testimonials & Reviews for Michael Laymon

-Syeda Rahman Awesome Person! Mike is simply an awesome person and that reflects in his work. He is more like a family than a realtor and gives you that extra care and dedication. I am happy that I came to know Mike and hopefully, he will remain a part of my life through the years to come. It's a shame there are not too many people like Mike in this world. Mike, you rock as a human being and a realtor!!!!!! -Hardwig Fischer On Top Of His Game! Recently I have done a few transactions with Mike and he is by far the best real estate broker I have dealt with in this area. His market knowledge is excellent and he is a realtor that does what he says he is going to do. I would highly recommend Mike to anyone that is looking to buy or sell real estate. -Debra Sharpe I would like to thank Michael Laymon, for going above and beyond, investing his time, into finding my children and me a new home. I could not have done this without him, and I am grateful for his honesty and professional experience! I can't thank you enough Michael! -Sheila O'Connor Patient. I would like to show my appreciation and gratitude to Mike Laymon for all his hard work and dedication. My husband and I do not believe anyone would have been so persistent and invested in finding us a home as he was. We are very grateful and blessed to have had his gracious help at such an important time in our lives. He is such a wonderful asset to your company. We

now consider him more than just our realtor he is a friend to our family from now on. Thank you so much! -Lucy Drossos – Lakeworth, FL I'm an investor and I have purchased and sold multiply properties by Michael Laymon. His knowledge about communities and neighborhoods was essential when I was making a decision. I benefited that he had experience with foreclosure properties and dealing with the banks! "If you want to get a job done Michael Laymon will get it done" -Ester Rivabella Satisfied customer !!!! My Husband & I had the pleasure to work with Michael Laymon, we listed our Condo and purchase our dream home all within 5 months & throughout the entire process, Mike was able to guide us thru a stressful time, he was always a call or text away, doing double duty, at times we would get discouraged as most people do, Mike encourage us thru at times when we thought as far as our short sale was no end in sight, he was the most patient, our questions were endless, well needless to say we successfully sold our condo & within a week we also closed on our new home, I also might add, Mike also was constructive in assisting us with obtaining our loan & homeowners insurance needs he was truly a one-stop realtor, so thankful so very happy, Thank you, Mr Michael Laymon. -Sherry Office Mike Laymon did a tremendous job showing and selling our home while finding us the right buyer who purchased our Delray Beach home for the full asking price. He kept a close eye on our home away from home and let us know, and often helped us fix things, that required repair. He was very professional and sold our home quickly. We will definitely recommend Michael in the future!

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-Jim Leland Mike is a true professional. He made my home buying experience worry-free. He has a tremendous amount of local knowledge and was able to get the job done. I would highly recommend Mike to anyone that needs a good realtor. -Edouard Joseph Mike was incredibly professional and a wealth of knowledge when it comes to Palm Beach Real Estate. He helped me sell my house for $250k more then what I expected. Mike made the headache of selling real estate simple and smooth. Highly recommend. -Diane & George Doukas Mike Laymon went over and above to help us sell our home in a very difficult time in our lives. Not only did he make the selling process stress free, but he was also able to find a buyer that gave us more than we expected to get. With his overall knowledge of the community and market conditions, our relocation was a success. You’re a ROCK STAR!!!! Thank You Thank You for everything you did. I would definitely recommend Mike as your realtor. -John Brandt I am a first-time buyer. When I first contacted Mike, I was very nervous. The way he made this experience helped keep all the jitters away. He made this decision more exciting than I had expected. The home I am now interested in would not have happened without his advice, expertise, or visions. I am very happy and excited. Thank You so much, Mike Laymon. I cannot wait to seal the deal. -M Campbell by Campbell Construction And Remolding I was referred to Mike Laymon through my friend Lucy. She told me if you want a realtor that will go the extra mile to get it done you need to call Mike. I actually called him at 8 pm on a Tuesday

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and he answered his phone. With his professionalism and finger on the pulse mentality, we were able to get the home of our dreams. Thanks again for everything. I will definitely tell anyone that needs a good realtor to call you!! -William Savino Mike is extremely professional and market knowledge is unprecedented. Really helpful and patient as I am again looking for a new place to live. All the properties he has presented have suited my needs so now I just need to decide! I also have referred Mike to several others and he has performed above and beyond... He also handled all negotiations in selling my family's estate property and he did an excellent job... -Linda Berko Awesome Agent! I recently sold my condo through Mike and he was the best realtor that I have ever used. He went over and above to make my transaction as smooth as possible. He brought a buyer and was able to get the deal closed within 30 days from the offer date. I highly recommend Mike. -Kyle Converse Kept Me Calm! When I asked Mike to help me find a condo I thought it would move along like a normal sale. Well, there were circumstances beyond his or my control that made this not normal! He hung in there with me and reassured me it would all be fine in the end....and it was! I have used his concierge and his help to find people I needed to help me both during the buying phase and after. Choose Mike and you won't be sorry! Thanks, Mike!!

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CHAPTER 1 Introduction

Congratulations! You’re taking the big step of putting your home on the market. In my experience, selling a house is one of the largest investments most home owners will deal with in their lifetime. As a seller, your task now is to find that home shopper who simply can’t resist buying your house at the highest price. A buyer who sees your home’s advantages and recognizes its possibilities. A buyer who will fall in love with your home immediately, move quickly to purchase it, and offer you more money than other prospective buyers. The ideal buyer will increase your profits, while minimizing your efforts and stress. This book will teach you how to look at your home through the eyes of prospective buyers. You’ll learn all about what buyers are looking for—sometimes even before they realize what they want! You’ll discover how to identify the unique characteristics that make your home stand out from all the others in your market. You’ll unlock the secrets of marketing these vital differentiating features in a way that buyers can’t resist, resulting in more attractive offers. You’ll save the time, the effort, and the money that other sellers waste on meaningless “improvements,” ineffective showings, and advertising that misses the mark. You will understand target marking and how to find the most opportune buyer. Best of all, when you’re finished reading this book, you’ll understand how to motivate buyers to purchase your home more quickly and for the highest price possible! How will this book help you accomplish all this? By putting you in the buyer’s shoes and seeing your home from the buyer’s

perspective.

LOOKING THROUGH A SELLER'S GOGGLES

When you look at your home, you see it through a “seller’s goggles.” Your home is an emotional extension of yourself. You probably swell with pride remembering how it felt moving in when it was your “new house.” You picked out special furniture, carpets, and curtains—things you worked hard to be able to afford. Things that reflected your style and taste. Perhaps you planted the garden, built your kids a tree swing, or installed the first lawn. You made precious memories there—holidays with family, laughter with friends. You recall when your neighborhood was named “Most Livable” in the local paper. (Of course, that was five years ago, and the old neighborhood has changed). As a seller, you might think, “Surely, my home, where I invested so much money and sweat equity, and raised my children, is worth more than ‘you people’ (appraisers, prospects, and buyer’s agents) think it is.” Emotions can overtake good judgment and they almost always lead to problems in a sales price negotiation. It’s time to detach yourself and to depersonalize the real estate transaction. Remove your seller’s goggles and take a realistic, objective look at the property you want to sell. Relax. Take a deep breath and read on. Your journey into the mind of the buyer begins right now.

CHAPTER 2 How to Stand Out

Financially and emotionally, a home is often an individual or family’s largest single investment. That makes selling a home—whether a single-family residence, duplex, or condominium—the single largest, most complex transaction a person will undertake, and for most people, no more than two or three times in their lives. It involves new terms and concepts, financial acumen, and larger monetary figures than people usually deal with. Furthermore, real estate transactions involve multiple decision points and often substantial investment for the home owner’s time, energy, and money. As a seller, you want to find that home shopper who simply can’t resist buying your house at the highest price. To do that, you must provide potential buyers a striking home sales presentation that outshines other homes on the market. This requires creating a fantastic first impression, giving buyers an immediate feeling that they’re traveling up the front walkway of “their” new home for the first time, and not visiting someone else’s. Selling a house is about getting a buyer to fall in love at first sight, from the curb, in those initial (and fleeting) seconds. Here’s the big news—not everybody gets the price they could when selling their home. For example, take two little ranch houses across from a well-kept cemetery in a nice suburban city near Detroit, in southeast Michigan. One of them, 25 Cemetery Road (3 beds, 1 bath, 936 sq. ft., built 1957) was described as: “Neat as a pin and ready to go. Complete remodel kitchen w/SS appliances, breakfast bar, flattop stove, beautiful tile. Complete bath remodel. Hardwood floors, replaced windows. Great fenced yard, covered rear patio.” It was being fought over at $124,000+.

Meanwhile, a comparable 3 bdrm/1 bath, 936-sq.-ft., single-family home located at 19 Cemetery Road, had the same 3 bdrms/1 bath, approximately 936 square feet, and was built in 1955. It sold for $111,800. That’s enough of a differential (almost $15,000!) for the owner of 25 Cemetery Road to pay the cost of his real estate agent’s commission and pocket some profit. Frankly, that commission was money well spent, because hiring the real estate agent and following the agent’s sales plan made all the difference. We’ll talk more about that as we move through this book; however, it was the advising, planning, staging, pre-marketing, marketing, negotiation, and professional know-how that sealed the deal.

THE BASIC HOME SALES PROCESS

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 by Joseph M. Juran and named after Italian economist Vilfredo Pareto), states that for many situations, approximately 80 percent of results, or effects, will come from roughly 20 percent of efforts, or causes. While it does not always come out to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales. • 20% of customers account for 80% of total profits. • 20% of the most reported software bugs cause 80% of software crashes. • 20% of patients account for 80% of healthcare spending.

BUYERS FOCUS ON UNIQUE FEATURES

In the above example, the buyer’s offer wasn’t based on the 80 percent of features this house shared with the rest. Instead, his 6

bid was based on one unique attribute: the pool. The 80/20 rule predicted the sale of this house. Unfortunately, a lot of time was wasted in finding the perfect house. Had the agent known to look for the 20 percent difference, this might have been their first stop. As a seller, you can leverage the 80/20 rule to work in your favor. Draw attention to defining characteristics in your home. In one real-life example, a real estate agent was contacted by an out-of- town client. The client didn’t present a list of criteria for his house hunt. All he mentioned was that he liked the area. The agent drove him from house to house. Each time, the buyer suggested offers that were 10 percent to 20 percent below asking price. He wouldn’t budge. The agent began to think that the whole day was turning into a big waste of time. The last house of the day didn’t have a lot of curb appeal. It was not a great looking home, but the agent was out of options. Nevertheless, this house broke the tough negotiator down. He was suddenly willing to offer the full asking price! What set this house apart from the others? It was not because the client had a “thing” for ugly houses. The 80/20 rule kicked in again.

THE #1 SECRET STRATEGY TO HOME SELLING

Understanding the 80/20 rule concept can save you time in selling your property. Stop trying to sell people on the entire home. Instead, highlight the 20 percent of your home’s features that make it special. The remaining 80 percent 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. 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 features. Learn to leverage this rule, and you

won’t have to settle for less than your asking price. Buyers who fall in love don’t haggle over pricing; they make good offers.

FINDING WHAT'S UNIQUE ABOUT YOUR HOME

The house in the following example had languished on the market for more than seven months without a single offer. Unlike the home in the previous anecdote, this house was not ugly. It was a brand-new, custom-built home. But nobody seemed to care. The builder was baffled that his fancy new house would not sell. He ended up firing his agent and hiring a new one. Fortunately, the new agent knew the importance of finding that special, unique feature that would appeal to buyers. He toured the house to investigate further. What he found was incredibly obvious, and it changed everything. The house had a gorgeous five-acre yard. Other houses for sale in the area were all on one- to two-acre lots. Not only was the yard bigger, it offered more privacy than the other available lots. So, the new real estate agent used target marketing and marketed the five acres. He described the home’s details but focused much of the attention on the lot. In no time, his phone rang! A buyer was relocating. He had noticed the house was for sale, but the previous description hadn’t caught his attention. With the added detail that the house was built on a five-acre lot, suddenly this buyer was very interested; so interested, in fact, that he submitted an offer from 1,000 miles away. He had never even seen the property in person. He feared someone else would buy it before he could, and he would lose out on the perfect house. That sale happened in 45 days.

The builder was amazed. His house had been on the market close

to eight months without so much as a nibble. Suddenly it was sold by me. Purchased sight unseen, all because of the 80/20 rule. By shifting the focus to the five acres, I captured the interest of buyers immediately. The house was no longer unsellable. On the contrary, for a short time, it became the hottest house on the market.

SELLING TO INTERESTED BUYERS

The moral of this story is to stop (or don’t ever start!) wasting time showing your home to uninterested people. Compare your home’s features with those of other houses in the neighborhood to see what makes yours stand out. Think about what you love about your home. Not the sentimental and family attachment, but rather the quantifiable, physical characteristics. What makes you happy or brings you comfort as you walk through the door at the end of a long, hard day? Is it the shade of a secluded garden? A cozy library or inviting conversation pit in front of a fireplace? Is the heart of your home a sunny deck, a big- screen “man cave” or a quaint backyard “she shed?” Perhaps it’s an elegant bathroom with a relaxing old-fashioned bathtub. Maybe you have a garage with built-in tool cabinets or a Tiki bar with a blender for frozen drinks. By shining a bright spotlight in your ad copy on what makes your home unique, you’ll attract interested buyers who are willing to pay full price and won’t waste your time with lowball offers. 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 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 neighborhood to see what makes yours stand out. Work with that.

BUYER'S STORY

When Mike and Carole were shopping for a new home, Mike wanted an ocean view. They looked at many desirable properties but didn’t find any that were right for them. Some were overpriced; others had obstructed views. The search went on for almost a year until they found an older home a short walk from the ocean. The neglected exterior and dated interior were not encouraging, but when Mike stepped out 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 over the sea from his bedroom window every morning. What 20 percent of the home caught the eyes of Mike and Carole? 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 more than 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 miles of Cam and Kate’s that had towering trees as well as a koi pond and patio. That home was comparable in interior and exterior, but it was on a busy street. What 20 percent of the home caught the buyer’s eye and prompted him to choose Cam and Kate’s house? The buyer loved the secluded country feel of their home. The 1.8-acre property was surrounded by pastures, with grand oaks dotting the landscape.

LOCATION MATTERS

One buyer paid extra for a townhouse because its location in the complex overlooked 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. The owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex that were on the market because his had a characteristic shared by fewer than 10 percent of them. He had the only available listing offering that feature, and he emphasized that feature in marketing his townhome. With this attractive point of difference, the townhouse sold for a higher price. Another townhouse seller in the same complex found yet another unique feature. Although she did not have a yard, she was still able to use location to her advantage. Her property backed up to a lake and fountain. This unique feature helped her to sell her townhouse quickly and for a better-than-average price.

SPOTLIGHTING UNIQUE HOME FEATURES

Decide upon, improve, if necessary, and spotlight the unique features of your home in marketing copy, online and print photographs, and when showing the house. Don’t spend a lot of 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—or possibly more. Each house will have its unique features. Here are some suggestions if you aren’t sure of yours:

• Hilltop views or a high vantage point, offering a 11

spectacular view of the surrounding area. • Open fields frequented by wildlife. • Unobstructed views of sunrise and sunset. • Patios, decks, dog runs, garden areas, and

gazebos—highlight items neighboring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home. • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot. • A private location or lot partially concealed by trees. • A unique, shady, or larger backyard; a fenced backyard is a big selling point. (If your yard can be fenced, but is not, consider making that improvement). • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out.

POINTS TO REMEMBER:

• To make your home stand out from others on the market, apply the 80/20 rule, which says buyers will consider 20 percent of features more important than the rest. • Identify the features that make your home unique, and emphasize those in marketing. • Buyers who appreciate the uniqueness of your home will tend to purchase more quickly and for more money.

CHAPTER 3 Creating Curb Appeal

Someone said, “a stunning first impression was not the same thing as love at first sight. But surely it was an invitation to consider the matter.” This could not be truer than in selling a home. First impressions are powerful. Sometimes they are everything. Nothing sets the tone of a relationship or transaction more than first impressions, and those first impressions are formed quickly. Most prospective buyers form an opinion about a home within the first 7–10 seconds of arriving, according to the National Association of REALTORS®. “Curb appeal”—the attractiveness of a property for sale and its surroundings when viewed from the street—is as important as correct price-setting and is crucial to selling your home faster and for more money. Your well-prepared house might even catch the attention of buyers who weren’t attracted by the written description of your home, or who were simply driving by, even if they weren’t initially considering a home purchase. Curb appeal doesn’t only apply to drive-up home shoppers. Many buyers shop online first to see photos of the interior and the exterior. Having good curb appeal and attractive photos posted within your ad will help interest buyers right away, so that they’ll make an appointment with your real estate agent to come see your home. Sorry, but there’s no second chance to make a first impression. 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. So, consider what a potential home buyer

might think as he or she drives up to your property for the first time. You’ve probably seen the “We buy ugly houses” signs nailed to utility poles. Rehabbers look for ugly houses so that they can pay the least amount possible and “flip” the houses for a quick profit. However, true home buyers —people looking for a home in which to live —are not lured by ugliness and “bargain basement” prices. Creating curb appeal is essential to attracting interest in your home from serious buyers. 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. Conversely, a neglected house can cause a buyer previously excited by a printed or online marketing listing to cruise right on by.

SEEING YOUR HOME THROUGH FRESH EYES

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? 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 neighborhood 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 entrances and uncluttered yards. They are unlikely to be attracted to a home with

dead shrubbery and a weather-worn exterior.

A potential buyer is looking for signs indicating how well the home has been cared for and maintained over a long period. The buyer can be influenced by signs showing the type of home owner currently living there. Packaging sells! Starting at the curb, a well-manicured lawn and fresh appearance of the exterior demonstrates that the home owner is up to an appealing standard and shows that the current home owner takes pride in the property’s aesthetics. The outside appearance of your property should serve as an invitation to come inside. Beyond aesthetics, the buyer will be looking for evidence of wear, tear, and neglect. Buyers who are greeted with peeled paint, trash, and dead or unkempt lawns will assume that a home neglected on the outside is neglected inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Simple improvements such as weeding, trimming, and window washing can improve the appearance of a home with little to no expense. Repair and repainting are costlier, but often have a good effect on time-to-sale or sale price. Low-cost investments such as power washing the house and concrete, repainting trim, and adding landscaping also give your house more curb appeal. The goal here is to get more money for your home. Home buyers usually 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, beds weeded, and walkways tidy • No trash, trash cans, lawn clippings, branches, or general mess in the yard • All outside fixtures and components working and in good 16

repair (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! Keep in mind that even if the interior of your home is up-to-date, in good repair, with perfect plumbing and electrical work, and is decorated nicely for appeal, the exterior and curb appeal of your home will influence a buyer’s decision before they even enter the house. When you drive up to your home, take a hard, objective look and inventory the things that need attention. With simple improvements like weeding, trimming, window washing, and decluttering the yard and garage, you can improve the appearance of your home in an afternoon.

CREATING A GRAND ENTRANCE

Impressing the home shopper at the front door is an important aspect of curb appeal. This means more than putting out a welcome mat or potted plants. You want them to feel safe and secure when they open the door. The knob is probably the first thing visitors will touch, so make this tactile experience solid and reassuring. A flimsy lock or handle on your front door will make potential home buyers feel uncomfortable, and they might not even know why. Security is important to home buyers. Replace a worn or loose entry handle. Consider replacing the 17

handle with a heavy-duty deadbolt and knob combination. This investment of less than $100 will make your home more visibly and practically secure. The front door itself is a focal point, so make it impressive, too. Is the paint on your metal door faded? Is it peeled and flaking? 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 an average 91 percent return on investment (ROI). You can also replace brass kick plates inexpensively, which adds newness to the appearance. You want to create a sense in the buyer that your house is a great place to come home to. Painting your front door a color that’s both eye-catching but neutral, and that matches the overall style of the exterior, is a great way to add curb appeal to sell your home for more. A contrast between the overall facade of your home and the front door will amp up your curb appeal. Architects from ancient to modern times know it’s important to give a building “a sense of entry.” If your house is a neutral color with black shutters, painting your front door red will provide a “wow” factor and bring more beauty to your home—as will adding a wreath on your door, or decorative plants. This creates a more positive, free-flowing atmosphere, making your home look more appealing to buyers. Your back door needs attention, too. If you have a sliding screen door to your backyard, check to see if it needs a new screen or if it needs to be adjusted on its tracks. There’s nothing worse than having something fall apart or not function properly when there’s a buyer in your home.

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 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. • Ample outdoor lighting adds to landscaping appeal and is 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 home owner 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, diminishing the inviting look (and creating a possible liability issue). • Paint or stain railings (if weathered). • Try a fresh coat of 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. You can easily rent power washers 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, no matter how uninterested they might have been initially. If you put money into cleaning up the outside of your home, buyers will be 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. Remember that unless you are willing to lower your home’s price well below market value, prospective home buyers usually won’t want to take on a major renovation project.

A WELCOMING WALKWAY

The path to your front door is your “red carpet” for prospective buyers. The pathway, landing, and your front door should all blend together to provide an appealing journey from your street or driveway up to your house.

Go easy on decorations and lawn ornaments. Too much will look

disorganized and cluttered. Keep an elegant balance. Limit yourself to four or five decorations, depending on how big your walkway is and how “busy” it already is with flowers, rocks, trees, and other aesthetics.

A WELL-MANICURED LAWN

It’s important to have a lawn that’s well-manicured and shows the home hasn’t been occupied by a negligent owner. However, a lawn that appears to be too high-maintenance can also be an obstacle. It’s best to go for a look that’s clean and simple. At least have the grass trimmed nicely and regularly check that it’s healthy. A simple garden with bright flowers can also be a welcoming feature. Put down mulch in a darker color, such as a solid, dark brown. Mulch helps to neaten things up and gives the area a clean feeling. You can’t go wrong with mulching, as it adds great curb appeal.

CURB APPEAL INCLUDES THE BACKYARD

By the time a buyer gets to the backyard, their decision could already be made, but that doesn’t mean you can skimp on the backyard appeal. In fact, it makes it even more crucial to a sale for more money. When prospective buyers reach the backyard, they will try to envision themselves relaxing, having family and friends over, and playing with children or pets. It’s your job as the seller to make that vision work for them. To ensure your lawn looks more than acceptable, go over it with the lawnmower, and add seed and fertilizer where needed. If you have a pool or a hot tub, make sure the cover is off and the water is sparkling clean.

Add flowers if you don’t have any. Don’t go overboard and clutter the yard with them, as it will end up looking messy rather than pretty and elegant. Patio furniture helps to make your backyard feel more welcoming and will paint a picture of your backyard’s entertainment potential. You’ll want prospective buyers to see themselves in the backyard every summer enjoying the weather and all that life has to offer, so ensure your backyard—not just your curb—is in top condition.

ENHANCE DRIVE-BY APPEAL

When taking a quick drive-by to check out a home, minor details of the house itself stick out a lot more than you’d think. Potential buyers may quickly drive by your home or park out front to see it for the first time, envisioning themselves driving up to the curb. Good drive-by appeal is essential. Keep windows and front door in pristine condition. You’ll also need to touch up your garage. The home’s exterior will need to be neatened up with touches such as painting the door and trim. “Lived in” is not the look that you’re going for. Ensure the exterior has fresh paint, the lawn is well-manicured, your windows are washed, and that you don’t have any dead flowers in your garden. Bring in a professional to assess what needs to be done on your roof, such as re-shingling. If your roof needs repair that you just can’t do prior to listing, get reputable quotes for the price of the work and deduct that cost from the sale price. This method is usually convenient for both the buyer and seller, putting the buyer at ease, knowing they can have items repaired and upgraded, should they wish to do so.

LEVERAGING CURB APPEAL

When it’s time to sell your home, don’t skimp on the smaller details when you can use curb appeal to your advantage and get more out of the closing price. By having your home in its most pristine condition, inside and out, you’ll seal the deal in no time. Image is literally everything, and the exterior of the home matters just as much as the interior. Curb appeal can have a big influence on selling price and will ensure your home doesn’t languish on the market. Statistics show that a home with outstanding landscaping will bring 5 percent more than a home with average landscaping, and 7 percent more than one whose landscaping is in a bit of disarray. So, you can see that if you spend a little money on that $150,000 home, it could mean $7,000 to $8,000 more in your pocket just from curb appeal. On a $500,000 home, landscaping could easily add $25,000 to $35,000 to the selling price.

POINTS TO REMEMBER:

• Curb appeal—the first visual impression prospective buyers receive when seeing your home from the street or in a photo—is a vital component of the home selling process. • It’s important to put your emotions aside and look at your house objectively, the way buyers will see it. • The tidiness, condition, and overall look of your home’s exterior will strongly influence the way prospective buyers envision the home’s interior. • Some touch-ups and repairs are easy; others are expensive and time-consuming. Outstanding landscaping can add 5 percent to 7 percent to a home’s selling price.

CHAPTER 4 Staging with Purpose

I’m going to share with you the story of a real estate agent who learned in a dramatic way about a powerful secret home-selling strategy. The real estate agent reported that in one instance this strategy resulted in one condo selling for $110,000 more than a similar condo in the same building! This agent had intimate knowledge of both condos. Neither listing was bank-owned, a short sale, or a distress sale. The only plausible explanation as to why one home sold for that much more than the other was the seller’s use of this secret home-selling strategy. This strategy is effective in any market, no matter what type of property. It applies equally to houses, apartments, townhouses, and condos. Agents and sellers using these tactics have a greater chance of closing a sale for more money.

THE #1 SECRET STRATEGY TO SELL YOUR HOME FOR MORE

This real estate agent discovered the secret strategy almost by accident. He met a wealthy executive who was interested in selling his condo. The owner was willing to hire the agent, on one condition: The real estate agent must agree to use the man’s secret method to sell the condo. It sounded crazy. The agent was naturally skeptical, but he had little to lose. On one hand, selling the condo would bring a handsome commission. Conversely, if it didn’t work out, their agreement would expire, and the agent would walk away. The real estate agent decided to give it a shot. He helped prepare the listing. They priced the condo at $554,900. For reference, two

similar condos in the same complex were listed for $479,000 and $439,000. With two similar condos listed for less, the agent was doubtful of a sale. The condo went on the market. Almost immediately, he began to doubt the strategy. The condo was showing regularly, but no one was making offers. People were just walking through and leaving. To make matters worse, most visiting agents thought the condo was overpriced. They couldn’t understand why the owner was asking for so much money. After all, a similar condo just around the corner was available for $100,000 less! They counseled their buyers to keep looking and left without making offers. The story is true. The condo had no special attraction that set it apart from the others. This unit wasn’t a penthouse. It was on the sixth floor of a 10-floor complex. The top-floor units weren’t penthouses, either. And the other agents weren’t wrong. The price was indeed high. Still, the owner stood firm. One day, four months and many showings later, another buyer walked in. This time, it was different. This buyer loved the condo the moment he stepped through the doorway. He made an offer before he finished the tour. The agent couldn’t believe what he had heard! He rushed to call the owner. The owner accepted the man’s offer, while the agent began to worry. Maybe the buyer would find out he was overpaying. Maybe the deal would fall apart. But no, everything worked out. The place successfully sold for $549,000, a record high! Naturally, the real estate agent was thrilled. So was the owner, who made a substantial profit.

The price was $110,000 higher than the previous condo that had

sold two and a half months earlier for $439,000. The higher price wasn’t because prices were rapidly increasing. The next unit that sold (28 days later) went for $435,000. It was a less desirable second-floor unit. Five months later, another similar condo sold for $450,000. So, what made the difference? Would you like to use this secret strategy to sell your home for more money? It does take some extra time and some extra work. But as you can see, the payoff is well worth the effort. What’s the secret strategy? What was the special request the wealthy home seller had for his agent? It was simple. He wanted to stage the condo. Staging is the act of sprucing up a home to make it as visually appealing as possible. It might sound crazy, but it results in homes selling for more money. In fact, a whole lot more. Many agents encourage sellers to stage their homes. However, very few of them could ever show you a case study proving it will help your home sell for more money. Fortunately, this real estate agent knew he was onto something. He began researching everything he could find on staging, and the impact it had on sale prices. He put his findings together in a write-up, sharing the tactics the wealthy seller had taught him. He included all the examples he had found as case studies. Here is an excerpt from his report, with one of the case studies he recorded.

STAGING VS. NON-STAGED CASE STUDY

Dear Reader,

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