Lindsey Johnson - SELLING SECRETS YOU CAN'T AFFORD TO MISS.pdf

SELLING SECRETS YOU CAN'T AFFORD TO MISS

LindseyRJohnson.com

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Table Of Contents

First Steps To Home Selling

Pareto's Principle

Staging With Purpose

Upgrading With ROI In Mind

The Three D's

How To Market Your Home

Common Seller Mistakes

Learn From Other's Mistakes

Finding Buyers

10. Be A Power Negotiator

11. The Dos And Don'ts Of Negotiating

12. Bargaining Chips

13. Why Hire An Agent

Resources The process of selling a home can be stressful, even if you’re working with a professional real estate agent, like myself. Chances are, you’ll have to hire various professionals throughout the process, either to prepare your home for sale, or to fix any of the numerous issues that can pop up in a home inspection. The last thing you want to do is hire an unreliable contractor who delays — or even ruins — your home sale. I’ve experienced firsthand the work of numerous local contractors and professionals. I know which companies will produce the highest-quality work, and which ones to avoid. Because I want my clients to have the most stress-free and successful real estate experiences possible, I recommend only the best professionals in a variety of specialties — from plumbing contractors, electricians, handyman services, roofing contractors, to lawn care services. I have personally worked with each contractor endorsed in this book, and each one comes with my highest recommendation. You can confidently hire any one of these companies or individuals, knowing you’ll be in great hands. In this section, I’ve provided you with a list of resources, along with a brief explanation of how each one can help you have the ultimate home-selling experience.

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Have You Gone “Nose Blind?”

“What is that smell?”

Is that the first thing you want buyers to say when they walk through the door to your beautiful home? Despite how much you may vacuum — and even scrub — your carpets, there’s a chance you may have gone “nose blind” — to quote Febreze — to all the odors they contain. But that doesn’t mean you need to spend hundreds, or even thousands, tearing up and replacing your carpets. A deep carpet cleaning can restore even the oldest, dingiest carpets. Sure, you can rent a unit from a local hardware store to clean them yourself, but if you really want to eliminate troublesome odors and remove any deep, set-in stains, you really should turn to a professional. Greater Fort Worth Carpet Cleaning has been helping my clients make a great first impression for years. They use the best carpet cleaning technology to restore your carpets and stomp out any odors you may not even realize you have. You’ll be breathing easy — and so will your buyers — knowing your carpets are in tip-top shape!

Greater Fort Worth Carpet Cleaning 817-993-4377

Clean is Always in Style viii

You may think that to sell your home, you need to do major kitchen renovations, install hardwood floors, and knock down a bunch of walls. And while those changes aren’t necessarily a bad idea if you want to sell for top dollar, they’re not always worth the return on investment.

But do you know what is? Cleaning .

Cleaning and organizing your home before a sale is the easiest way to ensure it sells quickly — and for the most money possible.

So what should you do to get your home in tip-top shape?

• Deep clean every surface — floors, walls, carpets, countertops, cabinets, appliances, toilets, tubs, etc. • Organize and remove clutter. • Consider investing in a storage unit to store knick knacks, toys, tools, old furniture, unused small kitchen appliances, and piles of paperwork. If this sounds like a lot of work, that’s because it can be. You’re much better off leaving these tasks to professionals. You wouldn't go on a date in dirty clothes, and you shouldn't show your home when it’s not looking its best. I recommend the following professionals to take the handle the stress of deep cleaning and organizing your home.

The Holistic Housekeeper 870-321-2654 Healingaromas@yahoo.com

Why Curb Appeal Matters They say you can’t judge a book by its cover — but it’s also true that books with worn out or torn covers tend to stay on the shelf. When you’re trying to sell your home, you know you have to prep and clean the inside to get it ready to show. But did you consider how your home might look from the outside? When potential buyers pull up to your property — or even when they’re checking out photos online — the exterior is the first thing they see. If your landscaping is in disarray, or your exterior paint is peeling, buyers may not even venture inside. So what should you do to get the outside of your home buyer- ready? The National Association of Realtors® offers the following tips to enhance your curb appeal:

• Clean exterior walls and windows • Apply a fresh coat of exterior paint • Keep grass green and trimmed • Clean and repair your roof

Luckily for you, I have worked with lots of reliable contractors who are experts in creating curb appeal. These professionals can help you increase the value of your home and sell for top dollar, fast!

JC Remodeling 817-374-6737

I recommend Mow Managers LLC to take your property to the next level. Whether your yard needs a full overhaul or just some fresh mulch and shrubbery, ABC Landscaping can meet your needs.

Mow Managers LLC 817-886-3411

Whether your roof needs to be completely redone or you just need to replace a few shingles, Results-Roofing.com is the best local professional to handle your roofing project. Dozens of former clients have put their trust in ABC Roofing, and I’m confident you’ll be pleased with their work.

Results-Roofing.com 214.301.5533 dustin@results-roofing.com

Electrical Issues Can Ruin Deals

Electrical issues are some of the most costly — and potentially dangerous — issues uncovered in any home inspection. In fact, the American Society of Home Inspectors counts electrical issues as one of the top deal-killers in the home-buying process. Some of the most frequent electrical issues found include:

• Undergrounded three-prong plugs • Painted outlets • Double tapping of circuit breakers • Reversed polarity • Improperly modified electrical panels xi

• Knob and tube wiring • Aluminum wiring • Federal Pacific breaker panels • No GFCI protection

Unless the extent of your electrical issues is a burned-out lightbulb, all electrical work should be handled by a licensed professional. Besides being too complicated for most homeowners to handle, electrical repairs pose a huge risk of electrocution and fire. I’ve recommended MR. Electric to many of my clients in the past. Not only are they affordable, but they perform top-quality work, ranging from fixing faulty outlets to completely rewiring older homes.

There’s no one I trust more to work with my clients.

Mr. Electric 817-244-7200 www.mrelectric.com

Are Your Floors Buyer-Approved? If you’ve watched any HGTV show in the last several years, you know one of the first things home buyers are likely to notice is the type of flooring running through the house. If your flooring is dirty, chipped, worn, outdated — or an unappealing color — chances are, buyers will take notice — and move on to the next house.

When buyers see bad floors, they immediately see dollar signs.

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And no one wants to see extra dollar signs before they even purchase a home.

So what kind of flooring should you get?

Based on data from the National Association of Realtors®, 54% of home buyers were willing to pay more for wood floors. But if you can’t afford wood floors, there are many options for wood-look tiles, vinyls and laminates — some even waterproof — that will more than satisfy picky buyers. The Tile Shop can help you with all of your flooring needs, from material selection to quick and professional-quality installation. Call them for an in-home consultation today!

The Tile Shop 817-873-5302

Your Front Door: The Ultimate First Impression

Your front door is the gateway to your home.

A freshly stained or painted door, with shiny new hardware and clean glass, says “Welcome home!” to buyers who come to see your house. A front door with peeling paint, rusted hardware and fingerprinted glass might just leave them out in the cold. First impressions matter and your front door is the ultimate first impression. Stand outside your house, and if you’re less than satisfied with how your front door looks, change it up! xiii

Consider a fresh coat of paint or stain — one of the newest trends in real estate is to make your front door pop with a bold, contrasting color — replace old hardware, and clean any glass surfaces on the door. With something as important as your front door, you may want to put your DIY skills on hold. A professional painter has access to the most durable, weather- resistant materials and will create a pristine finish. I always recommend Constable DFW Painting to my clients. Their painters are professional and highly skilled. You won’t have to worry about patchy work or unsightly drips. While you’re having your front door painted, walk through your house and consider the impression your paint colors might have. That bright orange you painted your living room in the early 2000s might have seemed like a cool, bold move back then, but it’s likely to turn off buyers who view your home now. Constable DFW Painting would be more than happy to take care of all your painting needs!

Constable DFW Painting 817-948-4646 ConstableDFWPainting@yahoo.com

Get a Handyman on Your Side

When you finally accept an offer on your home, you may think the hard work is over.

But unfortunately, that’s not always the case.

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Once your buyers order an inspection of your home, chances are, they’re going to come back with a list of demands — or ask for a price reduction based on the list of repairs the inspector says they need. But rather than dropping your price, you can turn to a great handyman to make any last-minute repairs and salvage your deal. When it comes to hiring a reliable handyman, you can’t trust just anyone. As a real estate agent, I’ve worked with dozens of local contractors, and I know exactly who you should call. For repair jobs big and small, I always recommend 24/7 HANDYMAN. Whether you’re looking at a simple repair like a broken door knob — or a major fix like a broken staircase — you can trust 24/7 HANDYMAN to get the job done to your highest satisfaction — and please even the most demanding buyers.

24/7 HANDYMAN 707-342-0301

Read This Before You Sign a Contract With a Buyer

Imagine taking your home off the market for 60 days while a prospective buyer tries to buy it. Then, 60 days later, the buyer finds out they can’t get a loan. You just wasted 60 days of marketing time! Now, imagine that during the 60 days, another buyer wanted to buy your home. But the buyer couldn’t purchase it. Why? Because you signed a contract with the first buyer.

By the time you find out the first buyer could not obtain xv

financing, the other buyer has already bought a house! Ouch! You just lost a sale! This is why it’s so important to make sure a buyer is able to obtain financing before you sign a contract. Fortunately, I work with a mortgage lender who can pre-qualify any prospective buyers. Global Lending Solutions will tell you whether they’ll be able to obtain financing. It costs you nothing to have Global Lending Solutions prequalify your buyers. Their lenders can help buyers get a loan with the most competitive interest rates available. You can rest easy, knowing they’ll be able to obtain financing. This is a free service. Buyers are under no obligation to use Global Lending Solutions to get a loan. They’ll help buyers get the best loan for their financial needs: • Conventional—A conventional mortgage can lead to a low fixed rate or adjustable rate for your primary home, secondary home, or investment property. • FHA—An FHA mortgage is a great program for buyers. Its advantages are a low down payment without private mortgage insurance. The lender process can be streamlined, with no appraisal and reduced loan documentation to qualified applicants. • VA—A VA Mortgage offers many benefits, including no down payment and lower interest rates. • USDA—These are only available in certain areas deemed “rural” by the United States Department of Agriculture. Surprisingly, many properties on the outskirts of a metro area will qualify for these loan programs. The advantages of a USDA Mortgage are lower interest rates and zero down payment.

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Because Global Lending Solutions is familiar with all of these loan programs, they can pre-qualify your buyers and ensure they obtain financing. That way, you avoid wasting time with buyers that will not qualify for financing. Before you sign a contract with a buyer, make sure you give them a call.

Global Lending Solutions 972-358-1390 jeremy.sourbee@glsmortgage.com

Is Your Faucet Leaking?

No one wants to find themselves knee-deep in plumbing issues — both literally and figuratively. And even worse, no seller wants a home inspector to discover those issues when they’re just about to reach the finish line of a great deal. That’s why I always recommend my clients have their plumbing inspected by a professional before they put their homes up for sale. All Needz Plumbing gives my clients peace of mind in the home- selling process. My sellers know going into the inspection process that everything will check out and won’t delay — or even destroy — their sale. Whether you have a leaky faucet or some strange hissing noise you just can’t place, put your trust in All Needz Plumbing to get to the root of the issue and fix it for good!

All Needz Plumbing 817-589-1322

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www.allneedzplumbing.com

Pool Worries, Be Gone!

If you own a pool, you know how much work can go into maintaining it.

That stress doubles when you’re preparing to sell your home and want your pool to look like the relaxing oasis buyers imagine it to be. Having a pool can be a major selling feature for the right buyer. But buyers looking for a pool don’t want to see your pool and immediately think, “This is going to be a lot of work.”

Before you sell your home, you should consider the following:

• Is your pool clean? If it’s an above-ground pool, are the parts rusting and liner showing signs of wear and tear? If it’s an in-ground pool, are the cement, tile and grout spotless? • Are there any broken parts or leaks? Does it have broken tiles or cracked cement? • Is it fenced in? You may run into zoning code issues if you don’t have a proper fence installed. • Is it low on water? If buyers don’t notice these issues themselves, a home inspector will be sure to point them out. You’re better off handling any potential issues before you put your home for sale, rather than scrambling to fix them later on. Pool maintenance can be stressful — and costly — if you don’t know what you’re doing. This is one job you’re better off leaving it xviii

to a professional. For all of your pool maintenance needs, I recommend Perfect Pool Service. They’ll turn your pool into the dream space every buyer wants to see.

Perfect Pool Services 817-374-4426

The Roof Over Your Head The old saying goes, “As long as you have a roof over your head, clothes on your back, food on the table, and good friends and family, you have all you need to live a happy life.” But if your roof is leaky, old, or missing a few shingles, buyers won’t be happy making an offer on your home. Roof issues can be a major sticking point for buyers — and will 100% turn up in a home inspection. Likewise, many home buyer programs won’t finance homes with old or broken roofs. If you want to save yourself the hassle of scrambling to make repairs at the last minute, I recommend having your roof checked out by a licensed professional before you put your home up for sale. Whether your roof needs to be completely redone or you just need to replace a few shingles, HNL Construction is the best local professional to handle your roofing needs. Dozens of former clients have put their trust in HNL Construction, and I’m confident you’ll be pleased with their work.

HNL Construction 469-995-1938 www. hnlcg.com

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The Secret to Selling for Top Dollar According to the National Association of Realtors® 2017 Profile of Home Staging, about one-third of buyer’s agents said that staging a home increased the dollar value their clients offered between 1 and 5% compared to other similar homes on the market that were not staged.

So what exactly is staging?

Home staging is the act of preparing a home for sale by arranging furniture and decor that allows potential buyers to picture themselves living in the home. The goal of staging is to make a home appealing to the highest number of potential buyers, causing it to sell more quickly and at a higher price point. As a real estate agent, I have a pretty good understanding of staging concepts. But I really prefer to recommend a professional to give my clients the best chance of selling their homes for top dollar in the least time possible. Staged360 The Home Staging Company has transformed spaces inside my clients’ homes. They offer connections to furniture rental companies and years of experience in the art of home staging.

Staged360 Home Staging Redesign & Interior Stylings 817-751-8446 Staged360@gmail.com

Ensure Your Closing

is Smooth and Easy

Here is everything DHI Title Company can do to ensure you have a stress-free, smooth, and easy real estate closing: • Solid Communication. They keep you updated on what’s happening at all times and respond to your inquiries in a timely manner. • No surprises. They work hard to get everything lined up properly early on in the transaction, so there are no surprises later. • Convenient closings. They work hard to close at a time that is convenient to your schedule. If you can’t make it to the closing, they’ll handle it with a convenient “mail-away” closing. • Competitive Rates. They work hard to offer their services at a competitive, affordable price. • Knowledgeable. They understand that real estate is a complicated industry. If you have any questions throughout the process, they’ll answer them for you.

Here’s the first step to get started on your stress-free, no-hassle closing.

Find Out Exactly How Much Money You’ll Receive on Your Sale.

DHI Title Company will put together a free, no-obligation closing cost estimate to show how much money you’ll receive from your home sale. The free estimate will itemize all of your projected closings costs and fees. To request a copy of this free estimate, send an email to dfwwesttitle@drhorton.com Or, can call their office at (817) 230-0600.

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Want Top Dollar For Your Home? There are many different things you can do to sell your home for top dollar. If you use these strategies, you get a higher sales price. But, miss any of these crucial components, 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 all right, and you’ll sell for top dollar. But, neglect one of them, and you risk settling for less than you deserve. So, if you’d like my Free, No Obligation, “Sell for Top Dollar” Consultation, give me a call at 270-312-8054. We’ll schedule a time that works for both of us to meet. I look forward to helping you!

Best Regards,

Lindsey R. Johnson JPAR LindseyRJohnson@comcast.net 270-312-8054

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Testimonials & Reviews for Lindsey R. Johnson Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me: Lindsey had a tough job, but he did it! We were tough clients! We were moving to City and didn’t have a lot of time to look at houses, having to deal with our employer’s relocation and all of the other challenges that came along. But, Lindsey went above and beyond to help us. Even now, one year after the sale closed, I can still call him for business and service recommendations in the area — he knows just about everyone and is very happy to help. Mr. Johnson is the best agent in City! I’ve used Lindsey R. Johnson, twice so far, and I was impressed both times. I bought my dream home with Lindsey a year ago. He worked long and hard to find me the perfect home. And he just recently sold another property of mine. Everything went quickly and smoothly. Both of my real estate deals were done very quickly and professionally. Lindsey is honestly the BEST in his business. I would highly recommend him. Mr. Johnson, perseverance got me the house! My experience with Lindsey during the entire home-buying process, from start to finish, has been nothing short of exceptional. I have a unique work structure, and because of this, it was very difficult to find mortgage lenders that would approve me for a home. I was very frustrated and on the verge of giving up, but Lindsey insisted that we continue searching. Not only did we find a mortgage lender but also a mortgage that I felt great about. His perseverance is the reason I am now a homeowner. He is professional, punctual, knowledgeable, and very easy to work

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with. With the highest regard, I will recommend Lindsey to all my friends and family.

Very attentive to concerns, details, and negotiations

L.J. helped me find a house by literally picking it out for me. Every house I wanted to go to, I got there and didn’t love it. L. J. was busy taking note of the likes and dislikes I was stating and said “I have a house that you’re going to love”.... AND I DID! I went back 4 or 5 times to show other members of my family, and he accommodated me without complaint. I was a first-time homebuyer, and he walked me through the steps of everything, gave me advice, and constantly followed up to make sure I was doing OK. With his help, I was able to close on the house early, right before I started my new job. I would recommend Lindsey to ANYONE, buying or selling. Mr. Johnson made it so so easy. He guided us through the entire process. He recommended great people to work with every step of the way. He was available 24/7 to answer any questions we may have had. With his high standards, expertise in the industry, and patience, we would recommend him as a Realtor to anyone looking! the Army veteran was amazing!

Lindsey even advised me on how to prepare my house

Lindsey was solid as a rock. In addition to being highly knowledgeable about the real estate market, with many years of experience, he is a consummate professional. He was extremely easy to work with, gave me very good advice about preparing my house for sale, and was very responsive during the entire process of receiving offers, selling, and closing. I would work with him again in a heartbeat. He’s that good.

Lindsey is the first agent I would call

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Mr. Johnson and his associates were able to rapidly list, show, and sell my property. Being an expert in real estate, he was spot on in his pricing of my property and getting this deal completed. Overall, I highly recommend him and his associates. If I want to buy real estate, Lindsey is my goto GUY! He would be the first person I’d call.

Mr. Johnson brought us an offer in three days!

Mr. Johnson was the consummate professional during our stressful and difficult process. In the midst of juggling a ‘failed’ marketing effort with another agent, he presented a well thought out plan and strategy to sell our home in short order. We needed to move quickly due to a growing family and another baby on the way. He helped alleviate that pressure by securing an acceptable offer with 7 days of listing. We put the pressure on him, and He delivered! We couldn’t thank him enough.

Mr. Johnson kept us calm throughout the process!

Mr. Johnson always made himself available to answer questions. He worked hard to sell our home and find the best fit for our new home. He and his team worked with us throughout the entire process and kept us calm when we got anxious.

I am 100 percent satisfied!!

Mr. Johnson is professional and knowledgeable about everything. He is also always available. I would definitely recommend him to anyone. Very smooth transaction from start to finish. I felt confident with him every step of the way!

Lindsey! found us our dream home.

Lindsey R. Johnson was very efficient and helped us find our dream home within a few short months. He was able to negotiate

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the price that we wanted for the house. Overall, I would look for him again to help us look for a house if need be in the future. Thank you so much!

Very efficient communication and service

Mr. Johnson and his staff were very helpful in selling our condo. They kept me informed frequently with email, sending reports on showings, offers, and feedback from potential buyers. We are very satisfied.

L.R.J. will get your house sold fast!

Lindsey R. Johnson is great and has the expertise to get your house sold. The communications throughout our sale (from beginning to end) has been outstanding. Lindsey understands the stress involved in selling your house, and he updated our family consistently! This made us feel we were in good hands. I have worked with numerous agents, and I highly recommend him to represent you when it comes time to sell your home.

Excellent experience with a personal touch

Excellent experience all around, not only knowledgeable but Lindsey and his associates have a very personal touch I felt like family throughout the entire process. He always took his time; we never felt rushed or like “just a number.” I sold my home and bought, with him. We had lots of questions he gladly answered them with no problem and guided us through the entire process, eliminating lots of stress. I truly appreciate that and would recommend him and his team to family and friends.

Sold our home in a week!

Lindsey R. Johnson was an absolutely amazing dude to work with. Professional, responsive, efficient, and my moral support

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when in time of need...unfortunately for him. We sold the home within a week. What else can you ask for? Grateful, grateful, grateful!!!

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Foreword When I first ventured into the real estate industry years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to 1. Get the most money possible for your home, 2. Sell in the least amount of time, and 3. Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including:

• Secret strategies to sell your home for more money • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • And much, much more

If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home. Happy reading!

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About Lindsey R. Johnson Hello! I am Lindsey and the reason I got into this business is I truly love the home buying process. As a child, I had aspirations of being an Actor. Never in a million years did I think I'd stumble into the real estate industry, but you can’t always predict where or when you’ll discover what you’re meant to do in life. I was taught at a young age that if you want something in life, you have to work for it. So that’s what I have done. Worked very hard at being the best real estate agent that I possibly could be. Just think about it. What better way to be of service, then to assist families and friends, customers, and clients with one of the largest transactions, that they will ever, be a part of. The selling of their family home. My expertise will be focusing on the residential market in the Dallas/Fort Worth area. I am confident that my experience and skill set will set me apart from other agents. You see, I have an uncanny ability of placing, the right buyers, with the right sellers, saving you time and money. So when you are ready to move, I am ready to serve. I am a United States Army Veteran.

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CHAPTER 1 First Steps To Home Selling

“But You Gotta Know the Territory” — and Terminology

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 — such as location — that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor 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 more 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 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; however, this does not reflect the home’s 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.

ONLINE HOME VALUATION

Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. Note that the assessment is based on available data with no guarantee of accuracy and often uses an algorithm that simply averages comparable sales in the geographic area. These tools might be quick and easy, but they don’t take into consideration factors like location, current local trends and the condition of the property. Be aware that the prices arrived upon might be highly inaccurate.

For example, a home in Ohio was put into one such system, Redfin (https://www.redfin.com/what-is-my-home-worth). The home last sold for $180,000 in 1998; it was appraised for refinancing in 2015 at $275,000. In 2017, Redfin’s calculator valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 square feet) in a four-block area of “Grand Old Ladies” at $158,000. The apparent reason is that the six “comps” (comparable recent sales) included only 2 homes in this desirable neighborhood (over $300,000), while four others outside this small neighborhood, although close, sold for $150,000 to $199,000. Because the system doesn’t understand the makeup of the area and simply pulled prices from a broader geographic area, the arrived-upon price was far below what it should have been. These tools are worthwhile for obtaining “comps” of area sales; however, they are not highly accurate in arriving at a listing price.

EXAMPLE OF DIFFERING HOME VALUATIONS

A buyer is interested in a home listed at $420,000. The online valuation determines the house is worth $440,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $300,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $420,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? The fact that they paid $420,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations cannot take into consideration the condition of the property or the qualities of the neighborhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. Ideally, they

should be the same, but usually they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the appraisal.

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 arriving at developing a perspective of value for real property. This is the marke 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 MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

This 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 (like me), 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 5

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 the listing price, or even above, 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 by improving, freshening, landscaping, and generally making the home pristine — and to live in that presentation-readiness 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 SWIRLING FISHBOWL

A house on the market requires keeping the home in a constant “show-ready” condition, and adjustment to changes in day-to-day life that are inherent in the process. Sellers get out-of-business-

hours phone calls from unrepresented prospects and buyers’ agents to show the home; frequent updates by phone, email, and text and show appointment scheduling messages from the listing agent; 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. Rude, perhaps, but necessary to accommodate.

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 hours, finding an interested buyer is what matters most. The home will be shown to many more uninterested 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.

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 2 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. The story is that 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 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. The generalization became 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 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 remaining 80% of your home still affects the buyer’s decision, so do not neglect it, 9

but in photographs and showings, feature the elements that make your home special. Your selling point won’t be the common features your home shares with the other properties on the market. Instead, use your home’s unique features to grab the attention of buyers who are interested in those distinctive features.

BUYER’S STORY

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

SELLER’S STORY

When Cam and Kate listed their home, they needed a buyer who wasn’t concerned that the house was on an unpaved road. Though the home was 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 buyers had also looked at a home within miles of Cam and

Kate’s that had towering trees as well as a koi pond and patio. 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 Cam and Kate’s home? The buyer loved the secluded country feel of the home. The 1.8-acre property was surrounded by pastures, with grand oaks dotting the landscape.

LOCATION MATTERS

A buyer paid extra for a townhouse because of its location in the complex overlooking woods instead of the parking area. Another seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half-acre grassy area. An owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex on the market because his had a characteristic shared by fewer than 10% of others. 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 lake and 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, if necessary, and spotlight the unique features of your home in marketing copy, online and print photographs, and in showing the house. Do not spend much time explaining how the storage room can be converted to another full

bath; instead, lead the dog-owning prospect to the fenced-off dog run in the unusually large backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyers willing to pay the asking price. 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 • Open fields frequented by wildlife • Unobstructed views of sunrise and sunset • Patios, decks, dog runs, garden areas, and gazebos — highlight items neighboring houses don’t have, or differences in size or quality; that one vital feature could help you sell your home • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot • A private location or lot partially concealed by trees • A unique, shady, or larger backyard; a fenced backyard is a big selling point (if your yard can be fenced, but is not, consider making that improvement) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out

LOOK FOR THE 20% DIFFERENCE AND MARKET THE FEATURE

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 12

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.

HOW THE 80/20 RULE APPLIES TO HOME 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 10% to 20% below the asking price without budging. As the day progressed, the agent’s chances of finding a suitable home 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 the room, he wanted to buy the home for 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.

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