JOSEPH SCROFANI JD - MY PROVEN SYSTEM FOR SELLING HOMES FAST FOR TOP DOLLAR

MY PROVEN SYSTEM FOR SELLING HOMES FAST FOR TOP DOLLAR

JOSEPH SCROFANI JD

Table Of Contents

Introduction

First Steps to Home Selling

Pareto's Principle

Creating Curb Appeal

Staging with Purpose And Smart Homes

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?

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, and 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!

Joseph (Joe) Scrofani /JD Coldwell Banker Premier 702-882-4949 - JoeScrofani4949@g i4949@gmail.com www.jscrofani.realtor

About Joseph (Joe) Scrofani JD When I'm not busy serving my client's needs, you can find me with my wife and grandkids, playing golf and teaching real estate. Golf is how I unwind after a long week or weekend working hard for my clients — and that’s not just a cop-out. I have dedicated my life in real estate to helping my clients achieve their real estate goals. I was raised in Southern California with two siblings. From a young age, I was taught that if you want something in life, you must work for it. So that’s what I did. And I worked hard. (But that’s not to say I didn’t have fun along the way.) I entered the real estate industry in 1978 after Several years in the corporate world. My dad, my hero, was a real estate broker in Southern California and convinced me to get into real estate. So, I did, and I do not regret my decision. After three years into my real estate career, I enrolled in Law School, earning a Juris Doctorate Degree in Law. I enlisted in the US Army and served four years of active duty and seven years in the US Army Reserves. After training at Officer Candidate School, I served as a platoon leader at Fort Ord, CA. I was then deployed to Korea, where I served thirteen months. After four years of active duty, I fulfilled my commitment as a Company Commander in the US Army Reserves. I currently live in Las Vegas, Nevada, with my wife. I have two wonderful children, a beautiful daughter, an awesome son, and two grandchildren.

EXPERIENCE* SERVICE* RESULTS

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About Joseph (Joe) Scrofani JD

Throughout my career, I have earned numerous accolades, including: REAL ESTATE EXPERIENCE: Broker Salesperson with 45+ years in Real Estate Licensed Real Estate Broker Salesperson in Nevada Licensed Real Estate Broker in California. Specializing in Residential Real Estate, Seniors, Land, and Commercial DESIGNATIONS: Emeritus Status with National Association of REALTORS®

Seniors Real Estate Specialist® (SRES®) Certified Real Estate Negotiator (CREN*) r (CREN*) Certified Real Estate Instructor (CREI*) r (CREI*) DEGREES EARNED: Bachelor of Science. Juris Doctorate Degree in Law. US ARMED FORCES: United States Army Officer Veteran.

Joseph (Joe) Scrofani /JD Coldwell Banker Premier 702.882.4949 JoeScrofani4949@g i4949@gmail.com Website: jscrofani.realtor NV RE License: BS 17796 e: BS 17796 CA RE License: B 613250 e: B 613250

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CHAPTER 1 Introduction

The most significant investment most people make is their home. That makes selling a home — whether a single-family residence, duplex, or condominium — the single largest, most complex transaction a person will ever undertake. It involves new terms and concepts, financial acumen, and more significant figures than generally dealt with. Many emotions can also affect good judgment. Many sellers think, Surely, my home where I raised my children and made so many memories is worth more than the bricks and mortar it contains. Real estate transactions involve dozens of decisions and substantial investments in homeowners’ time, energy, and money, and emotions almost always lead to problems in a sales price negotiation. The home seller’s objective is to find that home shopper who cannot resist buying your house at the highest price. To do this, you need to offer potential buyers a striking home sales presentation that outshines other homes on the market. It requires making a fantastic first impression, creating for the buyers an instant feeling that they are traveling up the front walkway of their new home for the first time, not visiting someone else’s. It’s about falling in love at first sight, from the curb, in those initial seconds. Most sellers do not venture alone into selling their home. They find it better to have an experienced real estate professional with whom they are comfortable. This book was written to provide some of that comfort without the direct sales stressors of person- to-person contact. 2

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

marketing plan to fit your budget and lifestyle.

CHAPTER 2 First Steps to Home Selling o Home Selling

Location! Location! Location! is the most crucial consideration in real estate and a major factor, if not the predominant one, in real estate pricing. Novice (and not-so-novice) home sellers alike must know the considerations that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices and 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 real estate terms, market value, appraisal value, and assessed value can save disappointment and frustration and allow the home seller to engage meaningfully 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 time period that a professional appraiser performs. The appraised value is a crucial factor in loan underwriting and 6

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. The assessed value is the amount the local or state government has designated for a 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. Should We Get a Home Inspection? I highly recommend you get a home inspection before you start to market your home. This way, you will find out exactly what you have to do before you get into a contract. Some of the biggest issues that come up are after the buyer gets their home inspection. Be ahead of the process. What is the Selling Process? The selling process can be divided into five phases, and the home inspection is one of the five.

1. The Offer or Contact Phase. 2. The Appraisal Phase. 3. The Escrow Phase. 4. The Home Inspection Phase. 5. The Closing Phase.

1. The Offer or Contract Phase In this phase, having an agent who is a good negotiator on your side is imperative. If your agent is a Certified Negotiator this is a big plus for your side. A Certified Negotiator has the education and experience to get you the most money if you are selling or the best price when purchasing a home.

2. The Appraisal Phase This can be the most stressful phase because it will determine if you got the price you wanted for your home if you are the seller. If you are purchasing a home, this phase will determine the value of your home. Three alternatives exist if the appraisal is valued lower than the accepted offer. 1) The seller can lower the price to the appraised value, 2) The buyer can pay more than the appraised value, or 3) The escrow will be canceled. If this option is taken, a cancellation addendum is written, and both the seller and the buyer must sign the cancellation.. 3. The Escrow Phase Once the offer is accepted escrow is opened. Before I get into this phase I want to explain: What is an Escrow? An Escrow is a neutral third party whose job is to carry out the agreement ( the contract) between the seller and the buyer in the accepted offer. In other words, it is important to make sure the seller and buyer do what they agreed to do in the accepted offer. The Escrow Phase is simple. One of the agents will call escrow or send the escrow officer the executed contract ( all parties have signed the contract). The Escrow Officer will draw up the Escrow Instructions. Then, within 10 business days, escrow instructions and the Preliminary Title Report will be sent to the seller and the buyer. The buyer will have 5 business days to accept or reject the Preliminary Title Report. If the buyer has concerns, the seller will have 5 businesses to correct such concerns by the buyer. 4. The Home Inspections Phase Sometimes, it is known as the "Deal Killer" because the buyer has the right to a home inspection per the contract if the buyer selects this option. A buyer has a right to know what they are buying. They will hire a licensed home inspector whose job is to

find something! I can tell you from many years of experience they will find something. There are no perfect homes. They will have a set number of days to complete the inspection. Then, the buyer must submit a Request for Repairs within the Due Diligence period agreed upon in the offer. The seller can accept or reject any or all of the requests. This is where negotiations are essential. 5. The Closing Phase This phase is the most important because this is the end of your journey! Escrow will set up a time for you to come in and sign a few documents to consummate the final phase of the sale of your home. One of the documents will be the transfer of the deed into the buyer(s) name. Then, you will let escrow know how you want your proceeds sent. Do you want a check, or do you want your proceeds wired to your bank? Wiring is the fastest and the safest. Each of these phases is the life of a sale. This is where an EXPERIENCE Real Estate Broker/Agent can assist you in making sure your home closes in time.

WHAT IS YOUR HOME WORTH?

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

PROFESSIONAL APPRAISAL

Nothing determines the sale price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange.

Real estate appraisal (“property valuation”) is the process of developing a perspective of value for real property. This is the market value —i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently, and every property is unique in features and characteristics. An appraisal helps with various decision points. The seller can use it as a basis for pricing, the buyer can use it as a gauge on which to base an offer, and lenders use appraisals to determine how much money to credit 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 a property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting

the property, reviewing the initial purchase price, and weighing it against recent sales with the same purchase price.

COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ESTATE PROFESSIONAL

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

THE SECOND STEP (SELLING YOUR HOME FOR MORE)

The 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 most important parts of the process are the seller’s time, effort, and investment. 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 and the price at which the home sells. A market in which homes normally sell in no more than six months of the listing is considered balanced or neutral, which means a good number of homeowners are selling, and buyers are purchasing; therefore, neither has the upper hand. A variable, for instance, like a major company entering — or moving from — the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days, while that of a slow market may be up to nine months. Typically, any number below six months is considered a seller’s market.

LIVING IN A FISHBOWL

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

CHILDREN (AND PETS) SHOULD BE UNSEEN, UNHEARD EEN, UNHEARD

Children and pets are distractions for potential buyers, affecting their experience of your home. You should plan for your children to be elsewhere, your pets crated or leashed, and no

toys lying about or dog hair on the sofa. The dishes should always be done, and the kitchen sparkling. The pressure of showing to everyone even mildly interested in looking (not necessarily buying) may come from the idea that the more your home is seen, the more quickly and easily your home will sell. Many real estate agents provide their clients with dozens of homes to consider without a clear picture of what the buyer wants. Low-interest traffic can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or even hours out of your day, finding an interested buyer is what matters most. The home will be shown to many more uninterested buyers than interested buyers. How many times will you have to show your house? In an ideal world, your property would only be shown to serious buyers. However, many “Sunday afternoon window shoppers” exist in the real estate business. That said, you shouldn’t waste your time trying to appeal to uninterested buyers. This is where planning, organizing, and the professional help of a qualified real estate agent enable you to handle even the most intimidating tasks without wasting your efforts.

HOW REAL ESTATE AGENTS ARE PAID

The National Association of Realtors® Profile of Home Buyers and Sellers states that approximately 10% of homeowners opted to sell their homes without using a real estate agent or Realtor®. A handful of For Sale By Owner (FSBO) transactions dealt with sellers and buyers who previously knew each other or were directly related; Real estate agents and Realtors® — unlike professionals in different categories who bill by hourly rates or earn a salary — get paid through a transaction (commission) at the end of each

sale.

For example, if an agent has worked with a seller or a buyer for months, they don’t get paid for the time spent if there is no transaction during that period. Agents receive a commission once the transaction goes through to settlement (closes) based on the home's selling price. At that point, the commission is earned. Traditionally negotiated between the seller and agent, the commission structure typically amounts between 4.5% to 6% of the sale price. New regulations may influence these negotiations, and some brokerages offer commission discounts to sellers. Historically, the listing agent and the buyer’s agent split the commission, but this practice may evolve due to recent regulatory changes. Issues can arise. For example, sometimes, the split might not be negotiated evenly. A seller could have agreed to pay a commission of 5.5%, which, if further divided, would mean that the buyer’s agent would receive 2.5% while the listing agent would receive 3%. Even though some agents are associate brokers or brokers in general, all commission payments have traditionally gone through to the broker managing the brokerage where the agent is working. From there, the commission is then split to the agent and the broker, according to the agreement that’s been made. The split will vary; sometimes, newer agents earn a small portion of the commission compared to the experienced or successful agents who generally sell more expensive properties or homes.

PAYING THE COMMISSION ITSELF

The Buyer Broker Agreement

Agents working with buyers enter into written agreements with those buyers before touring a home, either in person or virtually. That agreement must specifically disclose the amount or rate of compensation an agent or broker will receive or how this amount will be determined. The amount must be objectively ascertainable and must not be open-ended. For instance, $X or X% is permissible, but a range of commissions is not because it is too vague. The types of compensation available for brokers working with buyers would continue to take multiple forms. This includes but isn’t limited to: A fixed-fee commission paid directly by buyers Concessions from the seller A portion of the listing broker’s compensation

Offers of Compensation

Offers of compensation, or the ability of listing agents to compensate agents representing buyers for the value they bring to the transaction, are still an option under the practice changes. Offers of compensation benefit both buyers and sellers. For buyers, they promote access to representation throughout the home-buying process, which will help consumers achieve the dream of homeownership on terms that work best for them. For sellers, it helps to broaden the pool of prospective buyers by lowering the barrier to entry for those who may not be able to afford to pay buyer-agent compensation out of pocket. This is particularly important for lower- and middle-income buyers who have challenges saving for a down payment, and it enables REALTORS® to be compensated fairly for the value they provide. Suppose there is an offer of compensation from the listing broker to the buyer broker. In that case, the agreement can be memorialized within a broker-to-broker

agreement before the buyer broker and buyer tour a home. It’s important to remember that buyer brokers cannot accept compensation from any source that is more than the amount agreed to between the buyer broker and buyer.

Seller Concessions

Seller concessions can help the buyer cover certain transaction costs, including fees for buyer broker services. Other uses may include loan origination costs or property repairs. Seller concessions can still be communicated on an MLS. However, such concessions cannot be conditioned upon or tied to payment to a buyer broker.

What Is A Buyer Agency Agreement?

A buyer agency agreement sometimes called a buyer representation agreement or a buyer-broker agreement, is a contract between a home buyer and a real estate agent outlining the terms and conditions of their working partnership. The agent could also be a REALTOR® (a real estate professional member of the National Association of REALTORS®) or a broker.

How Does A Buyer Agency Agreement Work?

Upon signing the contract, the home buyer agrees to work with the real estate agent until they purchase a property the agent proposes or the contract expires. If a real estate transaction occurs, the agent receives a commission based on the home sale price. The buyer, seller, or both pay the commission at closing. A buyer agency agreement provides some transparency for the buyer and the agent, so both parties know exactly what to expect from the other throughout their partnership.

Source National Association of REALTORS® (NAR) 8/24

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” by observing 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 18

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

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

home still affects the buyer’s decision, so do not neglect it. In photographs and showings, feature the elements that make your home unique. Remember, your selling point won’t be the standard features your home shares with the other properties on the market. Instead, use your home’s unique features to grab the attention of buyers interested in those distinctive attributes.

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 right for them. Some were overpriced, and others had obstructed views. The search continued 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 he was sold when Vince stepped onto the third-floor balcony off the main suite. When he took in the view, any shortcomings in wall color or fixtures faded. 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 buyer had also looked at a home within miles of Cam and Kate’s with towering trees, a koi pond, and a 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 house. 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 house 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 unique feature. Although she did not have a yard, she could still use

location to her advantage. Her property backed up to a lake and fountain, which helped her 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 your home's unique features in marketing copy, photographs, and showings. Please don't forget to explain how the storage room can be converted to another full bath; instead, you can lead the dog-owning prospect to the fenced-off dog run in

the vast backyard. If the home has a specific feature a buyer is 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 points offer 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 more enormous backyard, fenced in, is a big selling point. (If your yard can be fenced but is not, could you consider making that improvement?) • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out Following the 80/20 rule can reduce the time spent showing your home 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 up 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.

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 10% to 20% 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 sunset. The exterior of the house was dated, and the yard was untended. This agent and her client had spent the entire day looking at houses with 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 loved the one remarkable feature of this otherwise uninspiring house. The house sat on a hill with a beautiful view from 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 decided to buy based on the window view from the hillside. Twenty percent 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 unique feature. He drove out to thoroughly investigate the house and discovered what the property had that the competition did not. The house had a five-acre yard, while other homes being sold in the area had one—to two-acre lots. Not only was the yard bigger, but 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 as love at first sight. But surely it is an invitation to consider the matter.” This could not be truer 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 they drive up to your property for the first time. Think of “curb appeal” as the home seller’s shop window. For example, picking a lunch place on a busy avenue in a tourist spot is either an outside presentation or, as we saw in the 80/20 rule discussion, some particular feature that brings in customers. For most lunch seekers, it is the way the place looks (“curb appeal”) and, for others, the soups and sandwiches they serve (specific desired feature). You cannot 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. 24

Rehabbers look for ugly houses to pay the least amount possible, and homebuyers looking for a deal—not a “basement bargain”—do not want 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 look — at your home, and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are there necessary repairs that you have been putting off? After you’ve lived in a home for a long while, you’re not likely to examine it objectively. Listen to suggestions from real estate experts, your friends, and/or potential home buyers about how you can make your house show better. Then, take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you. Note why. Well- tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door. The outside appearance of a property needs to invite the buyer 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 also believe the house is neglected on the inside. 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, 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. Repairing and repainting your home can cost more money, but often, those upgrades are reflected in the eventual sales price of your home. The goal is to get more money for your home. Homebuyers generally aren’t interested in a home that needs work unless you want to sell it below market value. Look around your yard, and make a written list of everything that could be improved: • Shrubs trimmed, flower gardens tended, walkways tidied, 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) are functioning properly and looking their best • Outdoor features like patio furniture or the deck should be updated with staining or painting. Could you 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 significant 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, an essential 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 vital to 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 in a home. Security is critical to homebuyers. A flimsy lock or handle on the front door will make potential homebuyers uncomfortable and 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 $100 will make your home more visibly and practically secure, and everyone wants to be safe in their home. The front door is a focal point; could you make it impressive? Freshen it up and add a dash of color. Choose a paint that complements the color of your home. Replacing a wooden door with a steel entry door is worth the cost with a 91% ROI (Return on Investment).

SOME OTHER CONSIDERATIONS IN CREATING GREAT CURB AP T 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 home's overall appearance needs balance. • The mailbox should complement your home. Could you

replace it if it is worn, dated, or unsightly? This doesn’t cost much and is worthwhile. • Use outdoor lighting to add to landscaping appeal and 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. • Could you spruce up the landscaping? Eliminating weeds and adding fresh mulch can really make a difference and show that the homeowner cares and maintains the property. • I would like you to consider enhancing architectural appeal by adding molding to the tops and sides of the doorway or around windows. • Please keep shutters and trim in excellent shape. Repainting them adds to their attractiveness. Fence gates, arbors, and fencing panels should be clean and fresh. • Clean downspouts and gutters. Repaint or touch up to eliminate rust spots. • Please make sure the walkway to the front door is clear and approachable. Stacked hoses and unruly landscaping can interfere with home shoppers' progress and diminish the inviting appearance. • Try a fresh coat of exterior paint; faded or chipping paint, siding, or trim will always detract from curb appeal. If exterior paint is good, ensure door and window trim are, too. This simple upgrade is well worth the cost. • Power washing the house, walkways, and driveway can be almost as effective as repainting at a much lower cost. Power washers are easily rented from hardware stores. • Adding stone or stone veneer to the face of the home is

an inexpensive way to instantly update it if it complements the design. • Add a “smart” doorbell. Eight of 10 home doorbells are outdated or not working, so if you invest $200 in a doorbell equipped with a camera and speaker, you will gain the approval of home shoppers 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 it apart. Remember that prospective homebuyers typically won't want to take on a major renovation project unless you are willing to lower your home’s price well below market value.

CHAPTER 5 Staging with Purpose And Smart Homes

Staging is sprucing up and setting up a home's interior to make it as visually appealing as possible to a prospective buyer. Creating an attractive 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 of this, as it takes considerable time and work. However, the payoff is proven. Staging is considered one of the most effective marketing strategies for increasing the value of a home. This strategy is effective in any market and any home property being listed. It applies equally to single-family houses, apartments, 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:

• Could you distinguish it from the competition? • Attract top dollar from homebuyers. • Provide a visual edge over the competition.

STAGED VS. NON-STAGED CASE STUDY & REPORT

Dear Reader,

I wanted to give you the most convincing proof possible. Many people find it hard to believe that the simple act of staging helps one home sell for more than another similar home. In my research, I looked for examples of similar houses being sold for differing amounts of money, where only one of the two houses was staged. The clearest example I could find was in the case of these two listings.

This development has 200 equivalent townhouses.

Every townhome in the neighborhood is three stories, with three bedrooms and three bathrooms, and has the same floor plan.

I looked for two sales there and found these:

• Townhome A was sold on August 26. • Townhome B (5 doors down) was sold on July 26 for 40,000 dollars less. I visited this neighborhood, and I am familiar with these properties.

You could not find a better example of two identical properties that sold for different prices. The lots the units sit on are identical in terms of the desirableness of the location.

Both units had the same kitchen plan, cabinets, and tile floor.

Both units had lovely hardwood floors in the living room and carpeted bedrooms. These townhouses were identical in every important detail. I studied every aspect of these sales to find what made the difference. There are two reasons one home sold for $40,000 more than the other: • Townhome A was professionally staged, giving it a more appealing appearance. • The agent selling Townhome A took higher quality, more attractive home photos. Those two seemingly small actions made the $40,000 difference! The buyers of Townhome A made a higher offer because the agent presented the home more attractively.

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. • Staged homes sold for more than 6% above the asking

price. • A staging investment of 1% to 3% of the asking price generates an ROI of between 8% and 10%. • Homes staged before listing sold 79% faster than homes staged after listing.

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, light, and unique features. Each room needs a purpose or suggested use. The home must feel new to reflect ease of upkeep. The goal is to create a clean, simple, and contemporary feel. Painting, updating fixtures, and eliminating stained carpets and popcorn ceilings can affect the home's saleability by 75%!

NEUTRALIZE FOR VISUAL APPEAL

The idea is to neutralize the home regarding personal taste or decoration so buyers can easily envision the house as it would be outfitted to 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 house space. An effective way to achieve this is to paint all rooms neutral. A wide range of neutrals is available, from soft grays to warm beiges. Painting the interior gives newness and freshness, making the home appear more spacious. Using the same color in visibly adjacent rooms provides the house with 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 the home shopper can envision or imagine life there. Minimization is the key. If the seller’s taste and style are showcased while the home is on the market, it may be a sale distraction. Preparing for moving is part and parcel of selling a house; it might as well be done at this stage to enhance the property’s salability. We will soon examine depersonalizing the home, a key step. First, however, we must examine creating space by minimizing furniture. Buyers are attracted to homes flooded with light and roominess. 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 and store it while the home is marketed. Closets, pantries, and storage rooms must be free of clutter and look organized. Pruning back unnecessary items can create interest by showcasing space and storage in areas such as closets, attics, or basements. Furniture placement is an easy way to highlight unique house features. A grouping of chairs before a fireplace will draw attention to it. Avoid pushing furniture close to the walls. Reposition of easy chairs into floating group spaces.

Every room must be staged to show function. An empty room

for overflowing boxes, possessions, or unwanted items should be transformed into a usable, desirable space. Could you 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 an 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 with one bed with one pillow and blanket may make the room seem bare and lonely. Adding a table with a lamp and a rocking chair draped with a lap robe heightens its appeal. Could you 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 house 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 significantly impact the final sale price of a home. You have two options for staging a home: do it yourself or hire a professional home stager. If you are considering hiring someone, I can give you some recommendations. However, I have listed and sold thousands of homes in my career, and I know how to stage homes. I can save you money by hiring a stager to stage your home.

TO STAY OR NOT TO STAY?

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