Mary Lee - MY PROVEN SYSTEM FOR SELLING HOMES FAST FOR TOP DOLLAR

MY PROVEN SYSTEM FOR SELLING HOMES FAST FOR TOP DOLLAR

Mary Lee

Table Of Contents

Introduction

First Steps to Home Selling

Pareto's Principle

Creating Curb Appeal

Staging with Purpose

Upgrading with ROI in Mind

The Three D's

How To Market Your Home

Common Seller Mistakes

10. Learn From Other's Mistakes

11. Finding Buyers

12. Be A Power Negotiator

13. The Dos and Don'ts of Negotiating

14. Bargaining Chips

15. Why Hire an Agent?

Thinking of Selling Your Home? our Home? Dear Homeowner, Selling a home can be an exciting (and potentially overwhelming) time in your life. I understand that there are many factors in this life-changing event. My goal is provide a high level of professional services resulting in selling your home in the shortest amount of time, with the highest profit margin, and ensuring a smooth home selling experience. When it comes to selling a home there are many complex tasks that must be completed and I will help you every step of the way. From my 'White-Glove' house preparation program, to making your home look its best with professional staging and eye- catching custom marketing materials, to determining the appropriate price, to negotiating the best possible terms and finalizing the sale, I am committed to providing you with exceptional service before, during, and after the sale of your home. In this detailed guide, I have included a breakdown of everything that goes into the home selling process and explain how a top-performing real estate broker can obtain the best possible price for you and ensure the sale goes as quickly and smoothly as possible. Thank you for the opportunity to interview for the very important job of your Real Estate Agent. I look forward to sharing my knowledge and expertise with you as you embark on the process of hiring an agent to represent you in the sale of your home.

Mary Lee Global Real Estate Advisor

Realogics Sotheby's International Realty

(425) 941-4229 mary@maryleerealestate.com

Experience & Proven Results Mary has been a licensed Realtor® since 1987 and has since become a prominent agent in the Seattle and Eastside areas. In 2004, Mary created The Ultimate Home Selling Success System™, an exclusive results-oriented system that creates the best home selling experience and results for sellers. This innovative process creates a faster sale, higher sales price and typically with multiple offers, giving sellers their choice of buyers, price and terms. Through Mary’s innovative marketing and proven negotiation skills and strategies, her sellers enjoy a smooth home selling experience without the normal buyer contingencies. Mary hasn't sold a home with an Inspection Contingency since 2005 (and may be the only agent in the country that has this distinction) and her exclusive process eliminates a second round of price negotiations and/or repair requests with the buyer and protects the extra profit she negotiates on Offer Review Day. • Luxury and View Home Specialist • Member, Institute for Luxury Home Marketing • Member, LuxuryHomes.com • Master Certified Negotiation Expert (MCNE) • Seniors Real Estate Specialist (SRES) • Certified Luxury Home Marketing Specialist® (CLHMS) • Certified Divorce Specialist (CDS) • Certified Probate Real Estate Specialist (CPRES)

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Changing Lives Through Exceptional Service & Results

We offer our highest recommendation to Mary Lee for the masterful job in managing every aspect of the selling process of our home with care, professionalism, commitment to client satisfaction, and a quality result. From staging the home, creating quality marketing materials, and managing all elements of the selling process -- including negotiating, attending to the home inspection, and navigating closing -- we offer our glowing thanks and our hearty endorsement. Any seller who wants a quality result with caring, professional, attentive to detail, and market savvy professionals would be wise to hire Mary. We are very glad we did. ~ Steve and Nancy Mary’s ‘program and process’ is one that we believed in and the interview confirmed what we already knew, that she was the agent for us. She provided expert help in the preparation of our property, including contractor referrals, beautiful high- end staging, custom photography and videography, magazine- style custom brochures and open house events. Having her professional expertise in marketing and selling our home removed so much uncertainty and anxiety and gave us confidence and peace of mind knowing that our most valuable asset in our estate was in good hands...and we were “over the moon!” with the results and we know you will be too! We are very happy we hired Mary and highly recommend her when selling your home. ~ Steve and Julie We recently completed the sale of our home of 31 years using Mary Lee as our realtor. After meeting with her and reviewing her comprehensive sales process, it was clear that she was the one ix

to assist with our sale. She made recommendations on changes and upgrades to our property to enhance the sales potential. She provided a pre-sale home inspection to provide to potential buyers. She arranged for the home to be staged as part of the sales preparation, and also produced a complete set of print, photo, and video marketing materials for the listing. Once our home was listed for sale, she coordinated all the showings and managed offers from potential buyers and their agents. The results speak for themselves: after four days on the market we received three solid offers and completed the transaction for significantly over our asking price. She did a fabulous job throughout the entire process. Mary definitely exceeded our expectations and we recommend her for any real estate transaction you may need. ~ Rick and Suzanne We recently sold our home using Mary Lee. We interviewed two other realtors but felt that Mary was the most experienced and qualified. Mary was very helpful leading us through the sales process and helped us keep on a tight schedule. Her marketing was exceptional, and we felt it presented our home in the best light. Mary helped us in stressful situations and gave us the guidance that we needed. The marketing, offer reviews, negotiations and closing all went smoothly and professionally. We are very pleased with the results and we will highly recommend Mary Lee to our friends. ~ Larry and Debbie Mary was referred to us by friends and it was clear from our first meeting with her that she’s a cut above the rest. After 13 years in a home that we loved living in, we were ready to sell and move to Camano Island. Mary’s exclusive home selling process removes the normal contingencies and pitfalls most sellers face. Her pre- listing home inspection strategy allowed us to put our home in top condition for the market and sell our home without a buyer’s home inspection contingency. She has a keen eye for how a home will show and photograph and her investment in beautiful high-

end staging and custom marketing materials really showcased our home’s features and amenities. She clearly understands how to position a home for a quick sale and maximum value through customized targeted marketing and expert negotiation skills. Our results were outstanding - we had 3 offers within 5 days of listing and sold the house for above our asking price. Mary negotiated a release of the buyer’s Earnest Money Deposit, which gave us further peace of mind during the Escrow and closing process. During the entire selling process – all the way through closing escrow, Mary kept us extremely well informed and was available any time we had questions. Mary is a true professional. We would gladly work with her again and highly recommend her. ~ Craig & Cassandra I am pleased to highly recommend Mary Lee with Realogics Sotheby’s International Realty. After deciding to sell my home that I designed and custom-built and enjoyed with my children and grandchildren after 23 years, I knew I needed expert help to sort and downsize a lifetime of possessions. I knew I needed to get my home ready for the market so I could maximize my profit as I started the next chapter of my life. Mary was an invaluable choice in guiding me through this journey from start to finish. She was there every step of the way. She knew exactly what time frame was needed for the process, and she connected me with her vetted vendors to help me with everything from house preparation to packing and moving. Her custom marketing pieces were stunning and highlighted my home’s unique features and amenities which really helped my home stand out in the market. Her pricing strategy was well-researched and matched my expectations on the listing price. I received several offers with a final sales price that I was very happy with. I am so pleased she found the right buyers who will create many happy years with their family as I did with mine.

I enthusiastically recommend Mary for any future real estate journeys you have! ~ Lowell

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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 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 a substantial investment in homeowners’ time, energy, and money, and emotions can often 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 compelling home presentation and value that outshines other homes on the market. It requires making a captivating 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 before you start the very important job of hiring the right agent to sell your home.

I want the prospective or active home seller to independently achieve a better understanding of the home selling process so you can make the right decisions that will ensure a successful sale. 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 and 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 working with the right real estate professional brings to your real estate transaction. After you learn the process, requirements, and tips, you will see that an experienced real real estate professional with top-tier marketing and negotiation strategies can shorten your time on market and increase your profits when selling. Reading this book is your first step to selling your home for the best price in the shortest time. After you read it, I would be

happy to provide you with a current valuation of your home and discuss how you can leverage today's market to start the next chapter of your life.

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. It is important for home sellers to know the considerations that determine a home’s value. 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 on the market and rejected by buyers. 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 determines how much money may be borrowed and under what 6

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.

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. The ultimate value of the home is determine by the market and market conditions, which may include how many competing homes are on the market, how many buyers are in the market, and how many buyers are looking for homes in your price range and area. Additional factors include interest rates and consumer confidence, which can be impacted by economic events like a recession. 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:

• House style (e.g., one-story, two-story, split-level) • Age of property • Size • Features (including design) — quality of materials used • Improvements made • Lot size and lot amenities • Views • Schools • Location— type of neighborhood, proximity to schools, parks and other establishments • Comparable sales • 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 the 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. Having a pre-listing appraisal will give a seller the chance to see how your future buyer's lender's appraiser will interpret the recent sales in your area so you can be more confident about your listing price.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This type of home valuation is typically offered at no cost by real estate professionals and is more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months, including the original asking price, any price reductions, days on market, final sales price and any seller concessions. It also includes the specifics of all the houses for sale in your area. These homes are your competition. The real estate professional will help you interpret this market data so you can 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 appropriate listing price. I am available to provide you with a customized Comparative Market Analysis and Market Study. 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 three to 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 15-30 days, while that of a slow market may be up to nine months. Typically, any number below three 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 buyers’ agents to show the home, as well as frequent updates by phone, email, and text and showing appointment scheduling messages from the listing agent. 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

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.

Make sure your home is sparkling clean for all showings and

open house events. You only have one chance to make a first impression with a prospective buyer.

CHAPTER 3 Pareto's Principle

“Eighty percent of results will come from just twenty percent of the action.” This is the Pareto principle, attributed to Italian economist and philosopher Vilfredo Pareto, who, in 1906, observed an intriguing correlation. He began work on the “80/ 20 rule” with the observation that 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation caused him to explore more examples of uneven distribution. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. His findings led to the concept that 80% of results will come from 20% of the action. While it does not always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases: • 20% of sales reps generate 80% of total sales • 20% of customers account for 80% of total profits • 20% of the most reported software bugs cause 80% of software crashes • 20% of patients account for 80% of healthcare spending

RELATING THE 80/20 R G THE 80/20 RULE TO HOME SELLING

Understanding the 80/20 rule concept can save you time in selling your home. Applying the 80/20 rule, you stop trying to sell people on the entire home. Applying the rule, you can highlight the 20% of your home’s features that make it special. The 12

remaining 80% of your home still affects the buyer’s decision, so do not neglect it, but in photographs and showings, feature the elements that make your home special. Keep in mind, your best selling points won’t necessarily be the common features your home shares with the other properties on the market. Highlight your home’s unique features to grab the attention of buyers who are interested in those distinctive attributes.

BUYER’S STORY

When Mike and Sue 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 onto the third-floor balcony off the master suite, he was sold. Any shortcomings in wall color or fixtures faded away when he took in the view. He could now see the sunrise from his bedroom window every morning. What 20% of the home caught the eyes of Mike and Sue? The magnificent third-floor view of the ocean!

SELLER’S STORY

When John and Kate listed their home, they needed a buyer who wasn’t concerned that the house was on an unpaved road. Though the home was over 10 years old, the interior was updated with fresh, neutral wall colors and carpeting to look brand new. The towering trees and established yard gave the home a welcoming appeal.

The buyer had also looked at a home within miles of John and Kate’s that had towering trees, as well as a koi pond and patio. This home was comparable in interior and exterior, but it was on a busy street. What 20% of the home caught the buyer’s eye and prompted him to choose John and Kate’s home? The buyer loved the secluded feel of the home. The private fenced lot with lush mature landscaping and trees felt like their own oasis in the city.

LOCATION MATTERS

A buyer paid extra for a townhouse because of its location in the complex overlooking a lush greenbelt instead of the parking area. Another seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half- acre grassy area. An owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex because he had a characteristic shared by fewer than 10% of others — in fact, he had the only available listing offering that feature. He pointed to that feature in marketing the townhome. With this attractive point of difference, the house sold for a higher price. Another townhouse seller in the same complex found a different unique feature. Although she did not have a yard, she was still able to use location to advantage. Her property backed up to a community lake with a fountain. This unique feature helped her to sell the townhouse quickly and for a better-than-average sales price.

THE 80/20 RULE IN ACTION: BUYERS ARE SEARCHING FOR UNIQUE FEATURES

Decide upon, improve, and spotlight the unique features of your

home in marketing copy, photographs, and showings. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price. Each house will have its unique features. Here are some suggestions if you aren’t sure of yours: • Hilltop views or high vantage point, offering a spectacular view of the surrounding area. • 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, or anything else that makes your home stand out. Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to buyers who are motivated to make a purchase. You won’t have to show as frequently. You also won’t have to sift through low-ball 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. 15

HOW THE 80/20 RULE APPLIES TO HOME SALES ME SALES

An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale. The agent drove him from house to house. In each case, the buyer suggested offers 5% to 10% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home for the buyer were dwindling. They stopped at one last house as the sun set. The exterior of the house was dated and the yard untended. This agent and her client had spent the entire day looking at houses that shared 80% of the same features. Nevertheless, once the buyer walked into this home, he wanted to offer the full asking price. What set this house apart from the others? He wasn’t too interested in the kitchen, bathrooms, and bedrooms. A bedroom was a bedroom, as far as he was concerned. He fell in love with the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view out a large window. As they entered the great room, the sun was setting below the distant tree line. That view sold the buyer. The remaining parts of the home could be improved. The home buyer based his decision to buy on the window view from the hillside. The 20% of the home’s features motivated him to offer full price on the spot. Such is the power of the 80/20 rule. In some cases, the 80/20 rule may help people make a sale without even conducting a showing. The house in the following example had languished on the market for months. Unlike the previous home, this one was attractive.

It was a brand-new, custom-built home, yet it sat on the market

for over seven months without a single offer.

The builder hired a real estate agent who knew the importance of finding that one special feature. He drove out to give the house a thorough investigation. He discovered what the property had that the competition did not. The house had a five-acre yard. Other houses being sold in the area had one- to two-acre lots. Not only was the yard bigger, it was also more private than the other properties. The real estate agent marketed the property by highlighting the five acres. Because the house was no longer the main selling point, interest in the property increased.

CHAPTER 4 Creating Curb Appeal b Appeal

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

Creating curb appeal is essential to attracting interest in your home. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did not find the written description particularly compelling. Likewise, a neglected house can cause a buyer previously excited by the description to cruise right on by. Try this. Go out into your street and look — I mean really look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are 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 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 front door with peeling paint. The outside appearance of a property needs to be an invitation to come inside. Potential homebuyers are drawn to welcoming entries and uncluttered yards. They are unlikely to be attracted to a home with dead shrubbery and a weather-worn exterior. It is no stretch to think a buyer will believe the home is neglected on the inside as well. Look at your home as a prospect would. Drive up to the curb and take inventory of everything that needs attention. Low-cost investments like power washing the house and concrete walkways, repainting trim, and adding landscaping give your house more curb appeal. Simple improvements like weeding, trimming, and window washing can improve the appearance of a home with little to no expense. Repairs and repainting are

costlier, but the payoff is often reflected in the sale price.

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

CREATING A GRAND ENTR AND ENTRANCE

As I mentioned earlier, an important part of curb appeal is the home’s “grand entrance” — the portal to even the most modest house. You want to create a sense of a great place to come home to. Impressing the home shopper at the front door is a vital part 20

of the home sale. This means more than putting out a welcome mat and potted plants. You want prospective buyers to feel welcome, safe, and secure when they open the door. The doorknob is the first point-of-touch on a home. Security is important to homebuyers. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable, and they may not even know why. Replace a worn or loose entry handset. Consider replacing the door handle with a heavy-duty deadbolt and knob combination. This investment of less than $150 will make your home more visibly and practically secure, and everyone wants to be secure in their home. The front door is a focal point; make it impressive. Freshen it up and add a dash of color. Choose a paint that complements the color of your home. SOME OTHER CONSIDERATIONS IN CREA NS IN CREATING GREAT CURB APPEAL: EAL: • Symmetry appeals to the eye and is easy to accomplish. Lopsided landscaping or unevenly trimmed bushes will detract from the curb appeal; the overall appearance of the home needs balance. • The mailbox should complement your home. If it is worn, dated, or unsightly, replace it. This doesn’t cost much and is a worthwhile investment. • Use outdoor lighting to add to landscaping appeal as well as a perceived safety feature. • Use flower boxes and raised flower beds to add instant color. This is an easy, inexpensive way to enhance curb appeal.

• Spruce up the landscaping. Eliminating weeds and adding fresh mulch can really make a difference and shows homeowner care and maintenance. • Consider enhancing architectural appeal by adding molding to the tops and sides of the doorway or around windows. • Keep shutters and trim in excellent shape. Repainting them adds to the attractiveness. Fence gates, arbors, and fencing panels should be clean and fresh. • Clean downspouts and gutters. Repaint or touch-up to eliminate rust spots. • Ensure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping interfere with home shoppers walking up and diminish the inviting look. • Try a fresh coat of exterior paint; faded or chipping paint, siding, or trim will always detract from curb appeal. If the exterior paint is good, ensure door and window trim are as well. This simple upgrade is well worth the cost. • Power wash the house, walkways, and driveway. Power washers can be rented from equipment rental stores, although having a professional power washing company do the work makes the process much easier. • 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. Modern security systems and doorbells with a camera and speaker will be appreciated by home shoppers who are looking for security measures.

Curb appeal is one of the most essential elements in selling your home quickly and successfully. You can create interest in your home before buyers even step out of the car, even if they didn’t think they were looking for a home like yours. If you put money into cleaning up the outside of your home, buyers will be far more likely to want to see the inside. Your home’s curb appeal draws buyers in, maintains their interest, and sets your home apart from the competition. Remember that unless you are willing to lower your home’s price well below market value, prospective homebuyers typically won’t want to take on a major renovation project.

CHAPTER 5 Staging with Purpose

Staging is the act of sprucing up and setting up a home's interior to make it as visually appealing as possible to a prospective buyer. Creating an appealing home — one that potential buyers can envision themselves living in — is the best investment in the sales effort. Sellers often fail to take full advantage in this regard, as it takes considerable time and work. However, the payoff is proven. Staging is considered one of the most effective marketing strategies to increase the value of your home. This strategy is effective in any market, in any type of home property being listed. It applies equally to single-family houses, townhouses, and condos. This approach works! Agents and sellers using this tactic have a greater chance of selling the property for more money.

Staging the home will:

• Distinguish it from the competition. • Attract top dollar from homebuyers. • Provide a visual edge over the competition.

THE POWER OF STAGING WHEN S G WHEN SELLING A HOME

Consider these results from surveys conducted by the National Association of Realtors®: • Staged homes spent 50% less time on the market than homes that were not staged. 24

• Staged homes sold for more than 6% above asking price. • A staging investment of 1% to 3% of asking price generates an ROI of between 8% and 10%.

WHAT DO BUYERS WANT TO SEE?

Most home shoppers are envisioning a fresh start. If they can picture themselves living in the home, the home will be easier to sell. This is known as “interior curb appeal,” where the eyes are drawn to inviting spaces and light, as well as to unique features. Each room needs a purpose or suggested use. The home must feel modernized to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. Painting, updating fixtures, and replacing stained and worn carpets can affect the salability of the home by 75%!

NEUTRALIZE FOR VISUAL APPEAL

The idea is to neutralize the home regarding personal taste or decoration, so buyers can easily envision the home as it would be outfitted in their taste or with their possessions without the distractions of the seller’s taste and possessions. In staging, distractions are removed so the home shopper can imagine living in each space of the house. An effective way to achieve this is to paint all rooms in a neutral color. A wide range of neutrals is available, from soft grays to warm beiges. Painting the interior gives newness and freshness and can make the home appear more spacious. Using the same color in visibly adjacent rooms gives the house a seamless look and uninterrupted flow. Changing your window coverings to match the walls can also create an illusion of more space. Dark or bold wall colors can dampen interest in a home if used in large spaces; however, they

can occasionally be used effectively as accent colors.

FOCUS ON FURNITURE: LESS IS MORE

In staging, a visibly inviting space is created so that the home shopper can envision or imagine life in that space. Minimization is the key. If the seller’s personal taste and style are showcased while the home is on the market, it may be a sale distraction. Preparing for moving is a big part of selling a home; it might as well be done at this stage of the process, to enhance the property’s salability. Shortly, we will examine depersonalizing the home, a key step. First, however, we must examine the concept of creating space by minimizing furniture. Buyers are attracted to homes flooded with light and spaciousness. They are equally put off by cramped homes filled with unnavigable spaces. Home shoppers want to walk through a house without obstacles in the way. Space and storage are high on the list of buyers’ desires, so every area of the home should feel spacious. Remove all unnecessary furniture from living spaces. Store it while the home is marketed. Closets, pantries, and storage rooms must be free of clutter and look organized. Thinning out unnecessary items can create interest by showcasing space and storage in areas such as closets, bonus rooms or basements. Furniture placement is an easy way to highlight unique house features. A grouping of chairs in front of a fireplace will draw attention to it. Position furniture in a way that maximizes space and creates optimum traffic patterns. Every room must be staged to show function. An empty room used for overflow of boxes, possessions, or unwanted items

should be transformed into a usable, desirable space. Clean it out and create an office space with a desk and chair, or a reading room with a lamp and recliner. Exercise equipment might be arranged to feature it as a workout room. Every room should have a purpose and be user-friendly. Make your home’s traffic flow smoothly, so buyers can browse each room without effort.

EMOTIONAL CUES AL CUES

Once every room has a purpose, creating atmosphere is crucial to make the home desirable. Decorative touches of greenery, flowers, and coffee table books give life to a room. Creatively hung wall art can do the same. A bedroom that has one bed with one pillow and blanket may make the room seem bare and lonely. By adding a table with a lamp and a rocking chair draped with a lap blanket, you heighten its appeal. Be sure to add elements of the same color, shape, or texture to unify the room. Any splashes of color should appear in wall art or any place you want to draw attention. Learn to strike a balance between staging and living in your home. You can even seasonally decorate your home without dashing its appeal. The main goal is to keep your home clean and free of clutter that distracts would-be buyers. Even simple things can make a big impact on the final sale price of a home. You have two options for staging a home: do it yourself, or hire a professional home stager. I believe so strongly in the power of staging and how it creates a faster sale and for more money, I invest in professional staging for my clients.

TO STAY OR NOT TO STAY?

Home sellers often ask whether they should stay in their home while it is on the market, or move out. There are pros and cons to both and factors that can tip the scale to one side.

Pros of Moving Out

If the seller has engaged a real estate agent, the burden of showing a vacant home is virtually eliminated. The agent will field all calls, set appointments, and show the home. Buyers’ real estate agents are also more likely to want to show vacant homes. If agents have 20 homes to show and 15 are occupied, they may show the vacant homes first out of convenience. They don’t have to call and make an appointment and can simply go over and use the lockbox. Further, the continual pressure to keep daily life from affecting the home’s pristine staging presentation is eliminated. The seller is not under constant pressure to keep the home in immaculate showing condition. If you’re someone who might struggle to keep your home in turnkey condition for showing purposes consider vacating before putting the home on the market, or staying in temporary housing during the marketing period.

Cons of Moving Out

A vacant home can signal that the homeowner is a “motivated seller” who needs to sell quickly. This can be overcome by having the home professionally staged and creating that 'model home' look that will appeal to buyers.

CHAPTER 6 Upgrading with ROI in Mind OI in Mind

Making upgrades can be as easy as replacing the handset on your front door and freshening up the paint job, or as daunting as remodeling an entire kitchen or master bath. The question always is, what home improvements give the best return on the remodeling dollar? Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” It is frequently advised in this area that it’s better to update/remodel your home while living in it and not wait until it is time to sell. That way, there is more enjoyment in the improvement and less cost and time in preparing for the sale. Some desirable upgrades or home improvements will not return their cost in the sale price, so it’s better for the owners to enjoy them all along. Many of my clients who did some strategic updates before listing the home have often said, "I wish we had done this sooner so we could have enjoyed it!" If your home is worth $1,000,000, and you spend $55,000 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% to 75% depending on your local market conditions. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath and painting dated cabinets are certainly worthwhile, but be cautious about doing a major remodeling of those rooms just to sell your home. Your real estate professional can assist you in which improvements to make that will produce the highest return on investment (ROI).

That’s not to say you can ignore necessary repairs that a home inspector would red-flag or mortgage company would demand before issuing a loan to a buyer. If major problems (like a leaking roof or outdated electrical wiring) exist, you may want to repair those before putting your home on the market, or expect to give concessions to the buyer.

START WITH THE BASICS

Every listed home should meet the basic expectations of any buyer. It should have a sound roof, functioning gutters and downspouts, foundation without cracks, functioning heating and/or air-conditioning system, solid subflooring, and safe and secure electrical wiring. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodeling to sell the home or to increase the value may not pay off. A conservative approach with a fresh coat of paint and new carpet can make all the difference and creates a great first impression for home shoppers.

MECHANICAL MAINTEN CAL MAINTENANCE IS A MUS CE IS A MUST

It is easy to get wrapped up in the more eye-pleasing aspects of preparing a home to sell. However, the upkeep of all the more mundane aspects of the home cannot be overlooked.

These mechanical features require consideration:

• Electric panel, outlets and wiring • Natural gas lines • Plumbing • Central heating and air-conditioning

If these components are old, outdated, or not working correctly, the home’s appeal is lowered, as is the eventual sale price. According to the National Association of Realtors®, 65% of homebuyers surveyed wanted to be sure their new home had a forced air heating system. Of the 31 mechanical features inquired about in the survey, this was the most important. Homes with other heating systems, like electric baseboard or wall units, oil- fired boilers, or radiant heating are not as desirable by home shoppers. People want to purchase a home that reflects their aesthetic tastes and lifestyles, but also one that is safe and sound. Faulty electrical systems do not provide a feeling of safety. Leaky plumbing arouses concerns of mold infestation and sewage problems. These areas can require extensive work and they are extremely important. Overlook them in the preparation stage, and you run the risk of trouble later with inspections and appraisals. It aids the sale if professionals certify or remediate any deficiencies in the mechanical systems. Having a professional pre-listing inspection for buyers to review is a big plus in marketing. • Have a certified plumber inspect the entire water system for leaks. Check the well and septic field, if applicable. • Hire an electrician to check the wiring. • Call an HVAC company and have technicians perform a thorough service checkup. • Contact the natural gas supplier and have them double- check the mechanics of your tank and lines. If you’re looking for an alternative to calling and arranging all the different inspections, certified home inspectors usually cover all items related to mechanical issues (and more). They will be able

to identify possible trouble spots. Many buyers hire an inspector, so you may be saving them a major step in the sale process, which is especially important in a fast-moving market where buyers may not have time to do their own home inspection. If you have mechanical issues and decide to sell your home “as is,” it may be necessary to negotiate with the buyer.

REPLACING APPLIANCES

New appliances undoubtedly make an impact on buyers. The National Association of Realtors® conducted a survey of buyers and found that: • Buyers were usually more interested in buying a home that featured new appliances. • Roughly 80% of respondents preferred stainless steel. Potential buyers want appliances included and will pay more for them, especially if they are new or in excellent condition. New appliances might be what sets a house apart from the home for sale across the street. If new appliances are out of reach, offer immaculately clean and fully-functioning existing ones.

UPDATING HARDWARE & FIXTURES

Carefully inspect your bathroom and kitchen hardware and faucets. If it is unsightly or worn, it’s best to replace it. Put yourself in a buyer’s shoes. Your home will potentially be their new home. Old, worn-out fixtures are not going to speak to them the way nice, new shiny hardware and faucets will.

Check these hardware items closely and replace, as needed:

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