Kat Timpson - HOME SALES MADE EASY

HOME SALES MADE EASY

Kat Timpson

Table Of Contents

Introduction

First Steps To Home Selling

Preparing

Creating Curb Appeal

Staging With Purpose

Upgrading With ROI In Mind

The Three D's

How To Market Your Home

Finding Buyers

10. Common Seller Mistakes

11. Bargaining Chips

12. Working With Your Agent

Foreword In my 30 plus years in real estate, and as a Broker/Manager with Coldwell Banker Realty Summit NJ, I can honestly say Kat Timpson is a standout. In addition to her vast knowledge of local real estate, she consistently demonstrates honesty, integrity and a dedication to clients . I’ve watched Kat go above and beyond to close difficult deals for her clients and spend countless hours creatively promoting her listings and working hard to reach out to buyers. Kat is also heavily involved in the community and industry— in fact, you’d be hard-pressed to find someone more well- connected in the issues facing real estate for both agents and clients. She has lived and raised a family in the areas she serves. In short, she knows the area she’s selling, and that’s something you just can’t teach. If you’re currently on the fence about hiring Kat Timpson or considering any other agents, I highly suggest you stop your search. No one has more enthusiasm for supporting clients, or will work harder to sell your home than Kat Timpson. With her on your side, you simply can’t lose.

Sincerely,

Victoria “Vici” Prodromitis Branch Vice President, Broker Sales Associate Coldwell Banker Realty

401 Springfield Ave Summit, NJ. 07901 O: 908-522-1800 M: 908-319-0871

About Kat Timpson Kat is a Realtor ® with Coldwell Banker Realty in North Central New Jersey. In 1998, with a new baby and a husband who wanted a reasonable commute, Kat moved from her native New York City to the New Jersey suburbs. Kat was quickly taken with the opportunity to enhance, upgrade and sell homes and she followed her passion moving into and renovating 5 homes in Essex and Union Counties within 22 years. Despite her love of homes, Kat had no intention of becoming a real estate agent. However, a good friend who had gone into the industry and was doing so well she needed a buyers' agent, reached out to ask Kat to get her license. Knowing Kat's history as a consumer expert in both sides of a house sale, she urged Kat to try the industry. In 2017, Kat go her license and joined her friend's team. Within the first year, Kat realized she wanted to have more say in her marketing and more possibility of making a difference in clients' lives. So made a move to become a solo agent. In 2018, she was recruited by the Coldwell Banker. Kat brings her marketing, public relations and media skills from her previous career, as well as her personal experience as a homeowner to her transactions for buyers, sellers and investors. In 2020, Kat began to consider the opportunity to help other divorcing people using her profession. She felt like there could be a viable need by divorcing people to work with a real estate agent who was specifically trained to help with their situation/s. She felt that an agent skilled in discretion, negotiation and neutrality would be the best support for both of a divorcing couple who own property. Unfortunately Kat found few resources and even fewer people who supported her interest.

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However, since then, Kat has persevered and received training and a designation as a Real Estate Collaboration Specialist - Divorce (RCS-D®). Kat now works with clients who have major decisions to make about their marital and family homes. Kat serves, in her capacity as a Realtor®, as a key part of divorcing people's teams - helping them with a critical area of their separation as they face new and separate lives and living spaces.

5 Star Reviews for Kat Timpson or Kat Timpson Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me: Single family home, Middlesex NJ "Buying a house, especially your first house, can be a stressful event. I had asked my cousin if she knew someone and low and behold, I was introduced to Kathryn. Kathryn makes things very simple and easy and also will deal with the other realtors to ensure that they are not trying to pressure you into using their mortgage broker or insurance guy, I had this happen to me a couple times throughout this process, Kathryn took care of it quickly." Single family home, Montclair, NJ "Kat is a true pro. We were first time home buyers and were nervous about the process. Kat made herself available to us for any questions we had. We struggled with narrowing down where we wanted to be and Kat helped us to get clarity on that. We're very happy with where we ended up!" Commercial Property, Union, NJ "Kathryn is a consummate professional who never ceases to impress with her can-do attitude and deep personal knowledge of the region. With her help, I found the perfect apartment quickly and with the minimum of fuss. She understood my needs straight away, and every property she showed me was on point. When I decide to buy a house, Kat will be my first call!"

Single family home, New Providence, NJ

"Kat was a wonderful guide throughout the sales process. We never knew the importance of a realtor until selling our first home and then was so grateful to have Kat assist us every step of the way and to remind us of the things we needed to do. We always knew she had our best interest in mind." Single family home, Maplewood NJ "Kat Timpson’s extensive real estate knowledge, excellent communication & honesty make her a terrific real estate agent that we highly recommend. When searching for our house my wife & I feel very privileged to have found Kat as a buyer’s agent. Being new to NJ we had a lot to take in plus had a challenging list of requests but Kat’s friendly & no pressure approach was both welcoming and reassuring. We were very impressed by how connected she is to all components of the real estate industry & were able to use her vast network of contacts to our advantage during the entire purchasing process. Nothing was too difficult for Kat as she guided us every step of the way and went above & beyond to ensure we were looked after. Overall her vibrant personality & professionalism made the whole purchasing experience enjoyable and resulted in us finding the perfect home well within our budget." Single family home, South Orange, NJ "We used Kat to sell our house and she was on top of everything, was emotionally supportive, and helpful in helping us get our house ready to put it on the market. Highly recommend."

Single family home, Rockaway, NJ "Kat Timpson is very passionate about her work. Quickly responds to email, text message and phone calls. Extremely friendly and honest. Would highly recommend to others."

Want Top Dollar For Your Home? our Home? There are many different things you can do to sell your home for the best possible price. Using specific strategies, you are better positioned to get a higher sales price. But, miss any of these crucial steps and options, and you risk settling for a lower price than you deserve. That’s why I offer a Free “Sell For Top Dollar Consultation." I’ll meet with you, take a look at your home, and show you exactly what needs to be done to sell for top dollar. I’ll give you advice on marketing, pictures, pricing strategy, staging, negotiations, etc. Each of these items is crucial to your sale. Get them right, and you will have a product ready for the market. But, neglect them, and you risk settling for getting less equity from your home sale. To schedule my free, no obligation, “Sell for Top Dollar Consultation," give me a call at 973.204.5534. We’ll schedule a time that works for the both of us to meet. I look forward to helping you!

Best Regards,

Kathryn "Kat" Timpson Coldwell Banker Realty Kat.Timpson@CBMoves.com 973.204.5534

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CHAPTER 1 Introduction

The largest investment most people make is their home. That makes selling a home — whether it’s a single-family residence, duplex, or condominium — the single largest, most complex transaction a person will ever undertake. It involves new terms and concepts, financial acumen, and larger figures than normally dealt with. There are also many emotions at play that can affect good judgment. Many sellers think, Surely, my home where I raised my children and made so many memories is worth more than the bricks and mortar it contains. Real estate transactions involve dozens of decisions and substantial investment in homeowners’ time, energy, and money, and emotions almost always lead to problems in a sales price negotiation. The home seller’s objective is to find that home shopper who cannot resist buying your house at the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market. It requires making a fantastic first impression, creating for the buyers an instant feeling that they are traveling up the front walkway of their new home for the first time, not visiting someone else’s. It’s about falling in love at first sight, from the curb, in those initial seconds. Most sellers do not venture alone into selling their home. They find it better to have an experienced real estate professional with whom they are comfortable. This book was written to provide some of that comfort without the direct sales stressors of person-to-person contact. 1

I want the prospective or active home seller to independently achieve a better understanding of the home-selling process. I’ve also provided actionable insight into how best to market your home, avoid critical mistakes, and maintain a proper focus. Let this book be your go-to resource for information, strategies, and techniques that can be put to work to sell your home quickly at the best price. Take time looking through the chapters and master the secrets of successful home sellers. For example, discover why comparable homes sell for considerably different prices. Be ready to sell by knowing your home’s market value, best listing price, negotiation tactics, and improvements that offer the best Return on Investment (ROI). My sincere hope is that this book will help you make the most of your time and efforts to sell your home. In Part 1, the process and importance of preparing your house for sale is examined: how to present to get top offers, the “80/20 rule,” along with which upgrades will make the most difference in ROI. Part 2 delves into marketing your home with a look at costly mistakes, avoiding those mistakes, and finding qualified buyers. In Part 3, we examine the critical topic of negotiations — what to expect, and how to conduct them — and finish with a look at what engaging a real estate professional brings to your real estate sale transaction. After you learn the process, requirements, and tips, you will see that an experienced, financially astute real estate professional can vastly cut the time and raise the economic value of your transaction. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, I stand by to assist you with a Comparative Market Analysis and a solid

marketing plan to fit your budget and lifestyle.

CHAPTER 2 First Steps to Home Selling o Home Selling

Location! Location! Location! is the most crucial consideration in real estate and a major factor, if not the predominant one, in real estate pricing. Novice (and not-so-novice) home sellers alike must know the considerations that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing or unsold. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to meaningfully engage in setting a home’s listing price. The most used definition of market value is “the most probable price a property should bring in a competitive, open market, under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Appraised value is a crucial factor in loan underwriting and 4

determines how much money may be borrowed and under what terms. For example, the Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. Assessed value is the amount local or state government has designated for specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current value.

WHAT IS YOUR HOME WORTH?

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

PROFESSIONAL APPRAISAL

Nothing determines the sale price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“property valuation”) is the process of developing a perspective of value for real property. This is the market value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently and every real property is unique in features and characteristics.

An appraisal helps in various decision points. The seller can use

the appraisal as a basis for pricing. The buyer can use it as a gauge on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.

The important factors in a house appraisal are:

• Dwelling type (e.g., one-story, two-story, split-level, factory-built) • Features (including design) — materials used and the kind of structure present and how they were built • Improvements made • Comparable sales • Location — type of neighborhood, zoning areas, proximity to other establishments • Age of property • Size • Depreciation Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation is free from real estate professionals and more helpful than automated online offerings. It provides

detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market must be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I will be happy to provide you with a Comparative Market Analysis. Please refer to the last page of this book if you would like more information on how to request a free home valuation.

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

Prior discussion showed that there is no calculable certainty in setting the value of a home. There can be wide differences between the seller’s assessed price, the asking or listing price (market value), and the price at which the home sells (sale price). Let’s turn to what the homeowner/seller can do to elicit offers at, or even above, the listing price in a competitive market. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation — and willingness to live in that pristine state for the time it takes to sell the property — will greatly affect both the sale period as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing is considered balanced or neutral, which means a good number of homeowners are selling and buyers are

purchasing; therefore, neither has an upper hand. A variable, for instance, like a major company entering — or moving from — the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days, while that of a slow market may be up to nine months. Typically, any number below six months is considered a seller’s market.

LIVING IN A FISHBOWL

A house on the market requires keeping the home in a constant “show-ready” condition, and changes in day-to-day life are inherent in the process. Sellers get unexpected phone calls at all hours from unrepresented prospects and buyers’ agents to show the home, as well as frequent updates by phone, email, and text and show appointment scheduling messages from the listing agent. They also will likely deal with repair and reconditioning appointments and inspections. The house may be photographed for online, periodical, or brochure presentations. There are repeated showings when the home first hits the market. Keep your home in pristine showing condition for impromptu visitors — the perfect prospect might just drop in at dinnertime.

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD

Children and pets are distractions for potential buyers, affecting their experience of your home. You should plan for your children to be elsewhere and your pets crated or leashed, and no toys lying about or dog hair on the sofa. The dishes should always be done and the kitchen sparkling. The pressure of showing to everyone even mildly interested in looking (not necessarily buying) may come from the idea that

the more your home is seen, the more quickly and easily your home will sell. Many real estate agents provide their clients with dozens of homes to consider without a clear picture of what the buyer wants. Low-interest traffic can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or even hours out of your day, finding an interested buyer is what matters most. The home will be shown to many more uninterested buyers than interested buyers. How many times will you have to show your home? In an ideal world, your property would be shown to serious buyers only. However, many “Sunday afternoon window shoppers” exist in the real estate business. That said, you shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the professional help of a qualified real estate agent enables you to handle even the most intimidating tasks without wasting efforts.

CHAPTER 3 Preparing

The decision to sell your home requires seeing the total picture, from start to finish. You should now understand what is involved in selling your home quickly and profitably. However, let me summarize a bit about what you should consider to avoid trouble in the process. To eliminate any misunderstandings by you, your agent, or an interested buyer, discuss this list with your trusted agent. • Selling your home before you are qualified to buy another — Financial situations change, along with loan requirements. • Guessing your mortgage payoff — Know if penalties exist. • Underestimation of closing costs — Calculate fees, taxes, and commissions that need to be paid. • Spending earnest money — If the sale falls through, what happens to the money? • Befriending potential buyers — Discretion is imperative when buyers want to be your friend. • Fear of low appraisals — You have options if this happens. • Stress of showings, remodels, cleaning, phone calls — Let your agent handle the bulk of the responsibilities of selling your home. • Facing inspection requirements — Know what is expected for your home to pass. 10

• Being prepared for closing — Your agent and your lawyer should let you know what to expect. • Flexibility and readiness to show your home — Make preparations, so showings do not interfere with your family and your life. • Letting buyers see your home in your absence — Buyers prefer to view homes without the seller present to listen to their critiques. Any questions should be fielded by your agent. • Weeding out non-qualified buyers — You can request that only qualified home buyers view your home. If they are not eligible, even for creative financing, it’s a waste of everyone’s time — especially yours., with grand oaks dotting the landscape.

CHAPTER 4 Creating Curb Appeal b Appeal

Curb Appeal: the attractiveness of a property for sale and its surroundings when viewed from the street. Whether viewing an online photo or driving by your home, a home shopper will decide in a matter of seconds whether or not they want to see more. First impressions are powerful, and, as they say, you don’t ever get a second chance to make a first impression, so creating curb appeal is crucial to generating interest in your home. Curb appeal is so powerful a selling tool that your well-prepared house may even catch the attention of buyers who weren’t attracted by the written description of your home. Conduct an experiment. Take a drive around your neighborhood and the surrounding area to see what homes appeal to you. Homes with clean yards and groomed lawns will be more impressive than homes with cracked paint, loose shutters, uncut grass, and weed overgrowth. The outside appearance of your property should serve as an invitation to come inside. Potential home buyers are drawn to welcoming entries and uncluttered yards. Would you be attracted to a home with dead shrubbery and a weather-worn exterior? You may assume that the home is neglected on the inside, as well as the outside. Herein lies the importance of curb appeal. When you drive up to your home, take an objective look and inventory the things that need attention. With simple 12

improvements, like weeding, trimming, and window washing, you can improve the appearance of your home in an afternoon. Low-cost investments, like power-washing the house and concrete, repainting trim, and adding landscaping, also add to your home’s curb appeal. The goal here is to get more money for your home. Homebuyers generally aren’t interested in a property that needs work unless you don’t mind selling it below market value. If you have poor landscaping, dingy exterior paint, or an unkempt yard, they may drive right on by without giving the interior of your home a second thought. Look around your yard, and list everything that needs work. • Are your shrubs, trees, flower gardens, and walkways tidy? • Is there trash or a general mess in your yard? • Does everything (front light, garage door, porch rails, etc.) function properly and look its best? • Could outdoor features, like patio furniture or the deck, be cleaned or updated with a coat of paint? Make the necessary improvements to update the exterior of your property, and you will benefit from the many people who are drawn to the inside of your home when they see how beautiful it is from the curb! You may find yourself with 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 can sell that house quickly or make the profit they want and/or need. Follow these guidelines to improve your chances of selling your home quickly for the best price.

Cut the grass. Give your lawn a clean, close cut, and manicure

the edges of sidewalks and driveways. Obliterate stubborn weeds along pathways, the house, and around trees. Repair, seed, or use groundcover to detract from bald patches in the yard. You can also use a commercial turf dye aerosol paint colorant to cover dead spots caused by pet urine. Trim the hedges. If there is one thing that makes a home look like an abandoned hideout, it’s a runaway row of hedges. Make sure that hedges are nice and even. Invest in colorful landscaping. Plant a variety of flowers, and spread pine, straw, or cedar chips. It’s a great idea to include a night photo for effect, so consider adding some LED path lights. Give the home a bath. Wash the windows, power wash the house, driveway, and pathways, and clean the gutters. Keep the pathways and driveway swept. Invite buyers by showing that the home is well maintained. Don’t forget to lower the garage doors and wash those windows, too!

CREATE A GRAND ENTR AND ENTRANCE

Impressing the home shopper at the front door is as important as the 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 doorknob is the first touch point of your home. If the entry handset is worn or loose, replace the door handle with a heavy- duty deadbolt and knob combination. This wise investment of less than $50 will make your home more visually impressive. A flimsy lock or handle on your front door will make potential home buyers feel uncomfortable, and they may not even know why. Security is important to homebuyers.

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% return on investment (ROI). You can also replace brass kick plates fairly inexpensively, which adds a newness to the appearance.

OTHER THINGS TO CONSIDER TO CREATE GREAT CURB AP T 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 your home should be balanced. • Invest in a new mailbox. Make sure it complements your home. • Outdoor lighting is not only a great way to add beauty to your landscape, it is perceived as a safety measure. You can purchase attractive yet inexpensive solar lamps that soak up the sun all day and glow all night. No wires or cords necessary! • Add instant color by using flower boxes and raised flower beds. They are an easy, inexpensive way to enhance the exterior appearance of your home. • Spruce up the landscaping surrounding your home. Eliminate weeds and add fresh mulch to make a difference and show shoppers you care about the overall look of your home. • Give your home architectural appeal by adding molding to the tops and sides of the doorway or around windows. • Shutters and trim need to be in excellent shape. Repainting them adds to the home’s attractiveness. Your 15

fence gates, arbors, or fencing panels need to be clean and fresh as well. • Clean downspouts and gutters. Repaint or touch up to eliminate rust spots. You don’t want your home to appear neglected. If they can’t be repaired, replace them. It will add to the ROI in your sale price. • Make sure the walkway to your front door is easy to approach. Don’t let stacked hoses or unruly landscaping interfere with home shoppers entering your home. • If your railings look weathered, consider a fresh coat of stain or paint. • Faded or chipping paint, siding, or trim will always detract from curb appeal. Giving your home a fresh coat of paint is recommended. If your exterior paint is in good condition, make sure your doors and window trim are, too. It is well worth the cost of this upgrade because it will add to the overall look and feel of your home. • Power washing the house, walkways, and driveway can be almost as effective as repainting, and at a much lower cost. You can rent power washers from your local hardware store, or if you’re not able to do it yourself, most house painters offer pressure washing as a side service. • Adding some stone or stone veneer to the face of your home is an inexpensive way to instantly update your home, if it complements the design. • Add a “smart” doorbell. Eight of ten home doorbells are outdated or not working, so if you invest $200 in a doorbell equipped with a camera and speaker, you will impress home shoppers who are looking for security measures.

Curb appeal is one of the most important 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; after that, though, it’s up to the interior of your house to carry that impression. The upcoming sections will lead you through the interior staging of your home and understanding the power of photography in marketing your home. Know where to spend and where to save. The investment of your time and energy to update can improve the way your home is appraised, viewed, and valued.

CHAPTER 5 Staging with Purpose

Home-staging/Staging: the act of preparing a private residence for sale in the real estate marketplace. The goal of home-staging is to make a property appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money. This strategy is effective in any market. No matter what type of home property is being listed, this approach works. It applies equally to single-family houses, apartments, townhouses, and condos. Agents and sellers using this tactic have a greater chance of selling the property for more money. Staging does take extra time and work, but the payoff is well worth the effort. Staging is one of the most effective marketing tools to sell homes for more money. In today’s competitive real estate market, selling your home requires hard work and dedication. If you are a motivated seller, this is where you can bring your home to the marketing forefront. Creating an appealing, eye-catching home via strategic staging helps potential buyers envision themselves living in the home and has come to be known as the best investment of your time and effort when selling a home.

THE POWER OF STAGING A HOME

Consider these statistics accordinging to a 2021 survey by NAR®:

• 82% of buyers agents said a staged home made it easier for buyers to visualize the property as their future home. • 31% of agents said that staging a home greatly decreased the amount of time it spent on the market. • 23% of agents said staging a home can increase the dollar value offered by as much as 10%. • Homes staged prior to listing sold 79% faster than homes staged after listing. • A real estate agent accidentally discovered this secret strategy when he met a wealthy executive who wanted to sell his condo. He was willing to hire the agent with one condition: the real estate agent had to agree to use the man’s secret method to sell the condo. The agent was naturally skeptical, but he knew selling the condo would bring a handsome commission. Conversely, if it did not work out, their agreement would expire, and the agent could walk away. The real estate agent decided to give it a shot and listed the condo. They priced the condo at $554,900, even though two similar condos in the same complex were listed for $479,000 and $439,000.The agent was not confident that the condo would sell for the $554,900 price. On the other hand, the owner’s secret strategy was intriguing. The condo went on the market, and the agent waited to see what would happen. He began to doubt the strategy, as he was showing the condo regularly but was not receiving any offers. People were walking through and leaving. To make matters worse, most visiting agents thought the condo was overpriced. They could not understand why the owner was asking for so much more than comparable condos. After all, a similar condo around the corner was available for $100,000 less! They counseled their buyers to keep looking and left without making offers.

The condo had no special features that set it apart from the others. This unit was not a penthouse. It was on the sixth floor of a 10-story complex. The other agents were well within their rights to say the price was too high. Still, the owner stood firm. Four months and many showings later, a buyer walked in who loved the condo the moment he stepped through the door. He made an offer before he finished the tour. The agent was so excited that he rushed to call the owner. The owner accepted the man’s offer and sold close to listing price. The condo successfully sold for $549,000, which was a record high! The strategy they used was a huge success. Naturally, the real estate agent was excited, and the owner was thrilled to make a substantial profit. The price was $110,000 higher than a condo that had sold two- and-a-half months earlier. The higher price was not due to the current market, either. 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. What was the seller’s secret strategy to selling for more money? What was the special request the wealthy seller had requested of his agent? It was simple. He insisted that the condo be staged. The successful real estate agent knew he was onto something. He began researching everything he could find about staging’s impact on the selling prices of homes. He collected his findings and shared the tactics the wealthy seller had taught him. He included all the examples he had found as case studies. Many agents already encouraged sellers to stage their homes. However, few of them were familiar with the following case study, proving staging is an effective method of selling your home for more money.

The following is an excerpt from his report, with one of the case studies he recorded.

WHAT DO BUYERS WANT?

Most home shoppers are looking for a home that will give them a fresh start. Perhaps they are just starting out and it’s a fresh start from apartment living, or maybe they’ve outgrown their starter home and need more room for their expanding family. On the other end of the spectrum, if their kids are grown and out of the house, a couple might be looking for a way to declutter their lives and downsize. There is also the situation in which a marriage is ending in divorce, and the couple has to face the reality of selling what is often the single largest asset of the union. In any case, if potential buyers can envision themselves living in your home, it will be easier to sell. Think of it as creating interior curb appeal, where you draw prospective buyers’ attention to the inviting space and unique features of your home. Each room in your home should have a purpose or a suggested use and should feel new to reflect ease of upkeep. By removing dated wallpaper, adding a fresh coat of paint, updating the brass bathroom fixtures that were all the rage in the 90s and replacing stained carpets and popcorn ceilings, you can improve the salability of your home by 75%! High-end replacements are not necessary; your goal is to create a clean, simple, and contemporary feel to your home.

NEUTRALIZE FOR EYE APPEAL

The most important aspect of staging your home lies in removing all distractions that may prevent the home shopper from imagining themselves living in each space of your house.

One of the most effective ways to appeal to the buyer is to “think fresh,” and paint every room a neutral color. A wide range of neutrals, from soft grays to warm beiges, is readily available at any home improvement center. Many stores offer the expertise of associates who are often well-acquainted with preparing a home for sale and can assist you in selecting just the right hues. For instance, dark or bold wall colors can dampen interest in a home if used in large spaces but can be used effectively as accent colors. Painting the interior not only gives a newness to your home, it can also make it appear more spacious. By using the same color in visibly adjacent rooms, your house will have a seamless look and uninterrupted flow. You can also create the illusion of more space by changing your window coverings to match the walls.

FOCUS ON FURNITURE — LESS IS MORE

Staging is the art of creating a visibly inviting space. Like any homeowner, you will take your furniture with you when you move out of your home. Until then, your personal taste and style will be showcased while your home is on the market. In upcoming pages, you will learn about depersonalizing your home — but first, we’ll examine the concept of creating space by keeping furniture to a minimum. Buyers are attracted to spacious homes, flooded with light. At the same time, they are repelled by darker homes, filled with cramped and unnavigable spaces. Remove all unnecessary furniture from your living spaces, and store it elsewhere while your home is on the market. Home shoppers want to walk through your home without obstacles. Space and storage are high on buyers’ lists, so every area of your home should feel spacious.

All closets, pantries, and storage rooms must be organized and free from clutter. Remove the things that aren’t necessary for daily living, and store keepsakes, photo albums, rarely used appliances, and so forth out of sight, preferably off the premises, so closets and cabinets are not cluttered. This will create interest and showcase the home’s space and storage capacity. Strategic furniture placement is an easy way to highlight unique features of your home. A grouping of chairs in front of a fireplace, for example, will draw attention. Avoid pushing the furniture close to the walls. Every room has to be staged to show function as well as beauty. An empty room used for overflow of boxes 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. If you have exercise equipment, feature it as a workout room. Furniture pieces, such as tables, can be taken from the living room for use in other rooms. Every room should have a purpose and be user-friendly. Make your home’s traffic flow obvious, so buyers can browse each room without effort.

EMOTIONAL CUES AL CUES

Once every room has a purpose, creating atmosphere is key to making your home desirable. Decorative touches like greenery, flowers, and scented candles give life to your home. Frame rooms with creatively placed wall art. A bedroom with a bed, a single pillow and blanket, and a harsh overhead light will make the room seem bare and lonely. By adding a table with a little décor — such as fresh flowers, a lamp and a few books — and a rocking chair draped with a lap robe, you heighten its appeal. Make sure to add elements of the same

color, shape, or texture to unify the room. Any splashes of bold color should appear in the wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can tastefully decorate for the seasons without dashing your home’s appeal. The main goal is to keep your home clean and free of “stuff” that distracts would-be buyers. Even simple things can make a big impact on the final sale price of a home. Effective staging is one of those things! You have two options for staging a home:

• Option 1: Do it yourself. • Option 2: Hire a professional home stager.

If you are considering hiring someone to handle your staging, contact me or see my list of resources. The stagers I recommend will transform your home from just “somebody’s house” into a desirable property that will entertain numerous tours and, ultimately, offers. In the next few pages, you will learn how to prepare for staging. Remember, first impressions are important. The time and effort you put into creating great first impressions will pay off when you sell your home quickly and for more money!

CHAPTER 6 Upgrading with ROI in Mind OI in Mind

Making upgrades to your home can be as easy as replacing the handle on your front door or as daunting as remodeling a kitchen or bathroom. There are some things you must keep in mind with regard to market value and return on investment when updating your home to sell. What home improvements give you the best return on your remodeling dollar? The return on investment is generally less than 100% in real estate, so the rule of thumb is “less is more.” Accordinging to HGTV, doing minor upgrades to the bathroom, such as recaulking, replacing old/outdated fixtures, changing the shower door, and giving the room a fresh coat of paint can yield a 102% return on investment. If your home is worth $275,000 and you spend $15,000 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 is not wise. That’s not to say you can ignore necessary repairs that a home inspector would red-flag or a mortgage company would demand before issuing a loan to a buyer. If you are facing major problems, like a leaking roof or outdated electrical wiring, you must either address those repairs yourself or be prepared to make major concessions on pricing to the buyer, so that they will not have to bear the burden of major repairs as well as the 25

price of the home.

STARTING WITH THE B G WITH THE BASICS

Every home that is listed should meet the basic expectations of any buyer. Your home should have a sound roof, functioning gutters and downspouts, a foundation without cracks, a functional heating and 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 the buyer’s financing approved. You do not need to undertake extensive remodeling projects to sell your home or to increase the value of your property. You do need to be sure your property is up to the standards of the neighboring homes. What’s important, though, is that you understand that the market value of your home is determined by the prices of homes recently sold in your area. Remodeling your kitchen to outshine others may not get you more money for your home, especially if it exceeds the market value buyers are willing to pay. You could spend more money than you will make in return — it is possible to over-improve.

MECHANICAL MAINTEN CAL MAINTENANCE IS A MUS CE IS A MUST

It is easy to get wrapped up in the aesthetic aspects of preparing a home for sale. However, you should never overlook the upkeep of the “unseen” aspects of your home that keep it warm or cool, dry, and safe from fire.

Take a close look at these mechanical features: • Electrical boxes and wiring • Natural gas lines

• Plumbing • Central heating and air-conditioning

If these systems are old, outdated, or not functioning correctly, you are lowering your home’s value. According to NAR®, 65% of home buyers surveyed wanted assurance that their new home had a working central air system. Of the 31 mechanical features inquired about in the survey, across the board, this one was viewed as the most 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, but they are extremely important. Overlook them in the preparation stage, and you run the risk of trouble later with inspections and appraisals. Professionals should do most of the mechanical work. Having a professional inspection on record is a big plus for most buyers as well. There is an alternative to personally arranging and coordinating all the separate inspections. Certified home inspectors can usually cover all items related to mechanical issues and more. They will be able to identify possible trouble spots requiring attention. Many buyers hire an inspector, so you may even be saving them that expense, which is always a mark in your favor when it comes to moving forward with a potential buyer. Having antiquated wiring and plumbing replaced is expensive. If you do have mechanical issues and decide to sell your home as is, it may be necessary to negotiate a reduced sale price with the buyer. Some buyers are willing to take on the improvements themselves, with the thought that they can be assured they are 27

completed to their own standards and specifications. However, some buyers will simply walk away, not wanting to deal with known problems that could get expensive long after the deed is transferred.

REPLACING APPLIANCES

There is no doubt that new appliances make an impact on buyers. NAR® conducted a survey of buyers in the market over the past several years about appliances and found that: Buyers were usually “interested” or “somewhat interested” in buying a home that featured new appliances. Roughly 17% of respondents preferred stainless steel. The most important factor: available appliances. 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. Potential buyers prefer that appliances be included with the house and will pay more for them, especially if they are new or in excellent condition. If you can afford it, new appliances might be what sets your house apart from the home for sale across the street. If new appliances are not an expense you are able to cover, ensure your existing appliances are immaculately clean and fully functioning.

UPDATING HARDWARE

There is no doubt that new appliances make an impact on buyers. NAR® also conducted a survey of buyers in the market over the past several years about details and found a few things out.

Carefully inspect your bathroom and kitchen hardware. If it is

unsightly or worn, it should be replaced. Put yourself in a buyer’s shoes; your old home will potentially be their new home, after all. Old, worn-out fixtures are not going to speak to them the way nice, shiny new hardware will. Unless your knobs, pulls, handles, or hinges are broken, there is no real reason to replace them. You can get that new look simply by thoroughly washing, sanding, and painting them with spray paint made specifically for kitchen and bath hardware, which is generally more cost-effective. The goal is to touch up your home and give it a new, clean look, without breaking the bank. The internet has a wealth of do-it- yourself videos that can help you update your bath and kitchen if your budget is limited, or if you just have the time and interest in these DIY projects. If the hardware is broken or completely worn-out, it’s best to replace the whole set. If it is just broken in a few places, and you can find matching pieces, you can paint the old and new to match. You could also consolidate all the good parts in one bathroom and replace all the hardware in the other.

LET THERE BE LIGHT

Whether natural or artificial, good, bright 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. Oddly, this is an aspect of staging that is often overlooked. Light that is too dim or too harsh is unflattering to the finest furnishings and best features of the house. Dim lighting gives everything in the house a dingy feel. Assess the lighting in each area of your home for ideas on where to bring in more light. 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 limited natural light. One quick, easy fix is to 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. Keep in mind that there are three basic kinds of lighting. General lighting, or overhead lighting, is typically ambient. Pendant lights are good for tasks like food preparation or reading. Accent lights are usually found 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. Don’t assume you need to buy new fixtures if you can update your existing ones. The aim is to make sure each area of your home is effectively lit. Kitchen and bathrooms are pivotal rooms to any home seller. 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 an opportunity to shine aesthetically, as well as 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 to ensure the brightest light. Lighting in the bathroom should be intense without being harsh. Soft lighting enhances any part of the house you want to highlight. Rooms painted in neutral colors need sufficient light so the room doesn’t appear drab, but avoid harsh lighting in the bedrooms. Strategically placed lamps give bedrooms a dreamy, peaceful, and restful feel. On the other hand, the closet light

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