Nelson Vianna - HOME SELLING INSIDER

HOME SELLING INSIDER

What e very h ome s eller n eeds t o k now

•••

Nelson Vianna

Published by LA Execs Publishing Copyright © 2020 LA Execs Publishing All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this publication, neither the Author nor the Publisher assumes any responsibility for errors, inaccuracies, or omissions. Any slights of people or organizations are unintentional. This publication is not intended for use as a source of legal or accounting advice. The Publisher wants to stress that the information contained herein may be subject to varying state and/or local laws or regulations. The reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including advertising and all other aspects of doing business in the United States or any other jurisdiction is the sole responsibility of the reader. The Author and publisher assume no responsibility or liability whatsoever on behalf of any reader of these materials. If your property is currently listed with a Realtor, please disregard this notice. It is not our intention to solicit the offerings of other brokers. Printed in the United States of America

Table Of Contents

Introduction

Home Selling Primer

How To Stand Out

Creating Curb Appeal

Staging With Purpose

Upgrading With ROI In Mind

The 3 Ds

Setting The Price

How To Market Your Home

10. Make Your Home Picture Perfect

11. Common Seller Mistakes

12. Learn From Others’ Mistakes

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13. Finding Buyers

116

14. Common Seller Negotiating Mistakes 120

15. The Dos And Don’ts Of Negotiating

130

16. Bargaining Chips

138

17. Why Hire An Agent

142

18. Conclusion

150

Foreword

I was very pleased and quickly accepted his invitation when Nelson asked me to write a foreword for his book. I have no reservations about telling that he is a great professional and knows his trade. Also, that it is a pleasure working with him, he makes the whole transaction feel very easy. I know and have been working with Nelson for over 10 years. I’m an investor and Nelson has represented me on the sale of 4 properties so far. Working with him gives me the con fi dence that I’m getting the best value for the sale of the property. He knows the market and is an expert on determine the correct market value of the property and what to do to prepare the property to sell for the best return. Once we have a property that I need to sell, th e fir st thing we do is call Nelson to be our listing agent and we can rest assure that we will sell the property for the best value the market will bear, he is an expert on doing everything necessary to preparing the property for sale, marketing the property and securing the best buyer for it. Nelson is great on keep us informed about all of the activities of the sale process, he is also a great marketer and will expose the property to the most opportune buyers that have an interest and are qua lifi ed to purchase. Working with Nelson is a great experience as he communicates with you frequently, keeping you well informed about the whole process, without being overwhelming, and if you have any questions about anything, he is always available to answer. But Nelson is more than just another listing agent, he has become a friend that we can trust and recommend. He is an accomplished vii

professional on hi s fi eld of work, he has a passion for what he does and make all his clients feel at ease and very con fi dent that he will do the best to help them. He is very well connected in the industry, has access to the best professionals and uses the latest technologies needed on a real estate transaction. He also has a great team of people that works with him that makes the transaction seen very simple and easy, what we know it isn’t. Th is book has a lot of valuable advice that any seller can use to make the best on the sale of their property. He has put together a great collection of time proven tips and techniques to make the selling process to become smooth and easy. His advices are practical and useful to somebody that is selling for th e fir st time as well for someone that has sold other properties before. I highly recommend this book to any seller. It is an easy read and if you are a seller don’t miss reading this book, it is an enjoyable read and a valuable learning experience. Best wishes! Mark G. Andrews

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About

Nelson moved to the South Bay area of Los Angeles right after he finished college. As a teenager, Nelson had aspirations of being an architect, but didn't happen that way. Never in a million years did he think he’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. Nelson was taught at a young age that if you want something in life, you have to work for it. So that’s what he did, and he worked very hard. Nelson always been involved in sales and customer service businesses. Early in life he saved enough for buying his first property and that became a passion for him. But he never wavered in his resolve to become the best version of himself. Nelson kept looking for, finding and buying good properties, and became a real estate investor. Nelson's passion always was to help people and with his experience as a real estate investor he then decided to become a real estate broker and help other people to realize the American dream of owning their own home and investing in real estate. As his career advanced, Nelson found his stride working with residential real estate and investment properties. He's become an expert in buying and selling single family homes, luxury homes and investment properties. Nelson loves to work with the fascinating people that he gets to meet on a daily basis and help them to achieve their goals of owning or selling their home or income producing properties. But the highest compliment comes from his clients, who come back for repeat business and refer him to their families and friends. ix

Th roughout his career, Nelson has earned numerous designations from the National Association of Realtors (NAR), including:

• CRS - Cert ifi ed Residential Specialist • SRS - Seller Representative Specialist • ABR - Accredited Buyer Representative • PSA - Pricing Strategy Advisor

• CNE - Cert ifi ed Negotiator Expert • GRI - Graduated Realty Institute • CIPS - Cert ifi ed International Property Specialist • SRES - Senior Real Estate Specialist • RSPS - Resort and Second-Home Property Specialist He's currently a member of several Real Estate organizations, including:

• ILHM - Institute of Luxury Home Marketing • PLMC - Premier Luxury Marketing Consultants • NAR - National Association of Realtors • CAR - California Association of Realtors • SBAOR – South Bay Association of Realtors • REBAC - Real Estate Agents Buyer's Council

Nelson is a long time resident of the South Bay area. In his free time he loves to play golf, walking on the beach with his wife and appreciate the beautiful Southern California sunsets, enjoy the good company of friends and relatives, check the local eateries, and he and his wife are avid travelers. Whether you are a first-time buyer, a seller, or a new or seasoned investment property owner, you can rely on Nelson to provide the expertise and knowledge necessary to ensure a smooth and stress-free real estate experience.

Reviews

Here's what some of Nelson's recent seller clients are saying: "Th is is the second time I have made a purchase with Nelson. He is very professional, prompt, and highly knowledgeable with real estate. He helped me list and sell my home, and purchase a new home in 45 days! I wouldn't go to anyone else." — Regina S "Nelson helped my wife and I sell our old home to buy another one. He was very courteous about our time and had our property sold in no time!! He worked very hard for us when we purchased our new home. I would highly recommend him for any clients looking to buy or sell.". — Justin R "Extremely professional and very thoughtful. I highly recommend Nelson Vianna as a realtor. He helped my grandmother to sell her home and we were very comfortable working with him from th e fir st meeting. He is great at working at your pace and thoroughly explains everything along the way. Great to work with him." — Sandra W "Nelson helped us to sell our condo. It was a rental property, 2 hours away from where we live. He handled every aspect of sale remotely, from preparing the property for sale to working with the escrow company on our behalf . Th e process couldn't have gone smoother. Nelson is extremely professional, organized, knowledgeable and very friendly. We recommend him highly. You will be in great hands with Nelson." — John C

"While looking through realtors online I came across Nelson Vianna. I was intrigued by all the positive reviews. I sent him a note on a Sunday a ft ernoon expecting to get an e-mail response the next day. He called me within 5 minute s! Th is responsiveness continued throughout our transaction to sell our investment property in Torrance. His marketing strategy and negotiating experience on countero ff ers was spot on. Since I live out of the area, he arranged for estimates and a contractor to do some repairs for us. Our property was listed on a Tuesday, and we received a full-price o ff er during the weekend open house. Only 28 days from listing to closing of escrow. No need to look any further, Nelson is the Realtor you need!" — Kathy R "Nelson was very highly recommended to me by a trusted friend. I spoke with Nelson on the phone prior to meeting him, and I immediately felt comfortable with him. His professional and warm easygoing demeanor was delightful. Nevertheless, I scheduled in-person interviews with four realtors, including Nelson. Upon meeting Nelson, I knew right away, that I could trust him, and I was con fi dent we would have a really good working relationship. He fu lfi lled every expectation I had, and then some . Th e sale of our home was very emotional for me. Nelson was always so sensitive and caring. He was always there for me whenever I would call or text with questions or concerns. I always felt better a ft er each contact. He professionally and accurately handled all the business related to the sale, which relieved me of any added stress, pressure, or worry about whether things would get done properly. I never worried onc e!! Th ank you for everything, and for just being you. You are awesome!!! I will always remember you with the most positive thoughts, and I highly recommend you!! You're the Best!!!" — Diane P “Nelson is great, he is the best in the business. Very knowledgeable, professional and e ffi cient. He sold our home very

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fast and sold it for our listed price. Being business owners, it's diffi cult to schedule appointments and meetings ahead of time. He was understanding and worked around our busy schedules.” —Th e Liu’s "Th e LA Execs Team was second to none in areas such as customer service, knowledge, expertise and professionalism. I would recommend them to anyone interested in selling and purchasing a home. Buying/Selling a home can be one of the most stressful times in a person's lif e –Th e LA Execs Team made the selling and process of selling our home very smooth, enjoyable, and nearly e ff ortless!" — Todd an d Th eresa M "Nelson did a great job selling our house and purchasing another one. He carefully explained the process, our options, and his recommendations, but always le ft a ny decisions to us." — Philip R "Working with Nelson was a pleasure and we have already recommended him to friends and family. We worked with him to sell our home and buy a new one. He is 100% focused o n fin ding the right home for the buyer and getting the best overall value on a deal for his sellers. He patiently shared his wisdom and experience with us, and we could not be happier with our outcomes." — Andrew & Emily C "I was very fortunate to have Nelson on my team as we navigated the process of selling our current home and purchasing a new home. Nelson was knowledgeable, con fi dent and reassuring to us every step of the way. His tech savvy marketing skills allowed us to list and price our home, making it very attractive to potential buyers. Nelson allowed us to make our decisions but was ready to provide his guidance and experience when necessary. I really appreciated his professionalism, friendliness and experience from

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day one, having him as our Realtor allowed us to make our dreams come true." — Oscar and Christine P "Nelson was our realtor both when we purchased our home and when we sold it. Nelson approaches his work with energy, care, and commitment. He operates with the highest level of integrity, ensurin g fir st that he fully understands the needs and values of his clients, and also that clients are informed and updated throughout the process. Nelson is a consummately professional, yet still extremely warm and down-to-earth. He is creative, knowledgeable, and thorough. He also understands the anxieties that clients might feel as they purchase or sell a home and takes great care to ensure that they are comfortable at each step in the process. If you are in need of a realtor in the Los Angeles area, you will no t fin d a better realtor than Nelson Vianna." — Leslie K "Nelson is outstanding! My wife and I were unable to sell our home with a previous agent so we decided to lease it for a year. We met Nelson around the time we had to evict the tenants for not paying rent. He was extremely helpful for us every step of the way. He put our home back on the market and we closed inside of four wee ks. Th anks to Nelson, what would have been a stressful time was quick and painless. He is a true professional and highly recommended." -- — Dwayne J "Having bought and sold several homes in varying market conditions over 3 decades, we know how critically important "our" realtor is. In advance of our most recent sale we interviewed 4 realtors, and realized immediately upon meeting Nelson that we had found a realtor of a caliber we had NEVER known previously. From market positioning, home preparation guidance, and home marketing to sale negotiation and sale administration, Nelson was on point, on target, and on top of

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everything. With complete con fi dence I can say our buyers and their realtor share our respect and appreciation for Nelson’s market knowledge, professionalism, and focus on a mutually bene fi cial transaction." — Scott & Laura B "Nelson is a godsend. We were recently faced with moving my husband's parents into an assisted living community. As such, we were confronted with the task of closing up and selling their home for them. Nelson was always prompt, professional and so responsive to our multitude of questions. He patiently worked with my in-laws through this process, doing what he could do to keep them feeling involved and informed; and he certainly kept his sense of humor as we worked through it all. I would not hesitate to recommend him. Our appreciation for him during this time goes beyond words." — Vic & Karen W "I've been a part of several real estate transactions and never understood why I was paying so much money to my realtor . Th en I was introduced to Nelson, and my opinion has changed. He's professional, hard working and handled every detail of the transaction from start t o fin ish. He was on top of every aspect and not once did I feel like he didn't have something covered. I can't recommend Nelson highly enough, if you're looking for a realtor you wo n't fin d a better one." — Tony & Amy V "I met Nelson a little over four years ago from a referral. We have used him to help sell a house and buy another one. All I can say is if you have to look for a home or you have to sell your home, Nelson is the realtor that you want for all your needs. Both times he exceeded beyond expectations. He is a class act gentlemen. I don't give kudos to everyone like this but he is well deserving of just that." — Daniel B

"Nelson has helped me and my family to buy and sell multiple homes across the Los Angeles area. Most recently, he simultaneously listed our last house, sold it quickly and helped us buy our dream home in the South Bay area! Nelson is a very friendly realtor who is incredibly experienced, knowledgeable, motivated, reliable an d fl exible - everything you would want in a Real Estate Professional. I would highly recommend him to any prospective seller or buyer." — Tim P "I had the pleasure of working with Nelson on two concurrent transactions, he listed my house for sale while helping m e fin d and buy my dream home. He is smart, personable and worked tirelessly to close the sale of my home over asking price in time to lock down the purchase of my new home. It was a seamless experience which could not have gone smoother. He successfully promoted my old house securing multiple o ff ers over asking price within days of our only open house and made himself available to me seemingly at all times as we searched for and found my new home. I could not give Nelson a higher recommendation!" — Sal U “Nelson helped m e fin d 2 houses in 2 years and was looking out for my best interest all the way - even when he had to hand a deal over to another agent. I always recommend him to friends, family, and to anybody I meet on a daily basis that might be thinking about buying or selling real estate. You have complete freedom to choose your agent, why not choose the best?!... Th anks Nelson!." — Richard M

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CHAPTER 1 Introduction

Congratulations! You’re taking the big step of putting your home on the market. As a seller, your task now is t o fin d that home shopper who simply can’t resist buying your house at the highest price. A buyer who sees your home’s advantages and recognizes its possibilities. A buyer who will fall in love with your home immediately, move quickly to purchase it, and o ff er you more money than other prospective buyer s. Th e ideal buyer will increase your pro fi ts, while minimizing your e ff orts and stress. Th is book will teach you how to look at your home through the eyes of prospective buyers. You’ll learn all about what buyers are looking for—sometimes even before they realize what they want! You’ll discover how to identify the unique characteristics that make your home stand out from all the others in your market. You’ll unlock the secrets of marketing these vita l diff erentiating features in a way that buyers can’t resist, resulting in more attractive o ff ers. You’ll save the time, the e ff ort, and the money that other sellers waste on meaningless “improvements,” ine ff ective showings, and advertising that misses the mark. Best of all, when you’r e fin ished reading this book, you’ll understand how to motivate buyers to purchase your home more quickly and for the highest price possible! How will this book help you accomplish all this? By putting you in the buyer’s shoes and seeing your home from the buyer’s perspective.

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

CHAPTER 2 Home Selling Primer

THE FIRST STEP OF 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 — 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 decisio n. Th roughout this book, you will read examples of similar and similarly situated houses that sold for ver y diff erent 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. Th e most-used de fin ition 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 spe cifi c property and frequentl y diff ers from market value or appraisal value . Th is assessed value is used as the basis of property tax and when a property tax is levied . Th e 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 re fl ect the home’s value. WHATS YOUR HOME WORTH The fir st step in selling your home is to understand th e diff erence between value, worth and sale price. Let’s exam each one of those to determine the factor that make th e diff erence between them. Understanding those factors allows them to be leveraged and accentuate each one according . Th ere 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 o ft en uses an algorithm that simply averages comparable sales in the geographic are a. Th ese 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 was entered into one such system, the home last sold for $380,000 in 1998; it was appraised for re fin ancing in 2015 at $675,000. In 2017, Re dfin ’s calculator valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 square feet) in a mixed neighborhood, a t $658,000. Th e apparent reason is that the six “comps” (comparable recent sales) included only 2 homes in this desirable neighborhood (over $700,000), while four others outside this small neighborhood, although close, sold for $580,000 to $600,000. 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 bee n. Th ese 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 a t $820,000. Th e online valuation determines the house is worth $840,000. Based on that estimate, the buyer o ff ers the asking price. When a professional appraisal comes in at $800,000 the buyer wonders why the values are s o diff erent and whether he overpaid. Th e house was listed at $820,000 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 pa y? Th e fact that they paid $820,000 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 online valuation is for basic 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. 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 tra ffi c, or potential development will also a ff ect 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. Th is 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 appraisals because they happen infrequently, and every real property is unique in features and characteristics. An appraisal helps in various decision poin ts. Th e seller can use the appraisal as a basis for pricing . Th e buyer can use it as a gauge on which to base an o ff er. Lenders use appraisals to know how much money to lend to their borrowers. Th e 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 o ft en can enhance its value. A professional appraiser should be a qua lifi ed, 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 Th is home valuation is free from real estate professionals and more helpful than automated online o ff erings. It provides detailed information on each house sold in your area over the last six months, along with th e fin al sale price. It also includes the spe cifi cs of all the houses for sale in your area, including the asking price . Th ese homes are your competitio n. Th e real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market must be considered. By utilizing a professional real estate agent, you can rely on proven expertise to market your home at the best listing price. I will be happy to provide you with a Comparative Market Analysis. Please refer to the last page of this book if you would like more information on how to request a free home valuation.

THE SECOND STEP (SELLING YOUR HOME FOR MORE) Prior discussion showed that there is no calculable certainty in setting the value of a home . Th ere can be wid e diff erences between the seller’s appraised 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 o ff ers at the listing price, or even above, in a competitive market. Th e seller’s time, e ff ort, and investment are the most important parts of the proces s. Th e 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 a ff ect 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 a good number of 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 sw ift m arket or toward buyers to make a slow market . Th e typical selling time in a sw ift m arket 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. Th e house may be photographed for online, periodical, or brochure presentations. Th ere are repeated showings when the hom e fir st 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, a ff ecting their experience of previewing 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 sof a. Th e dishes should always be done and the kitchen sparkling. Th e 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 tra ffi c can be heavy and a burden on the seller’s time, energy, and resources. Since a showing can take an hour or hour s, fin ding an interested buyer is what matters most . Th e 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 a ft ernoon window shoppers” exist in the real estate business. You shouldn’t waste your time trying to appeal to uninterested buyer s. Th is is where planning, organizing, and the professional help of a qua lifi ed real estate agent enables you to handle even the most intimidating tasks without wasting e ff orts.

CHAPTER 3 How to Stand Out

Financially and emotionally, a home is o ft en an individual or family’s largest single investment . Th at makes selling a home—whether a single-family residence, duplex, or condominium—the single largest, most complex transaction a person will undertake, and for most people, either the only time or no more than two or three times in their lives. It involves new terms and concep ts, fin ancial acumen, and larger monetary fig ures than people usually deal with. Furthermore, real estate transactions involve multiple decision points and o ft en substantial investment for the home owner’s time, energy, and money. As a seller, you want t o fin d that home shopper who simply can’t resist buying your house at the highest price. To do that, you must provide potential buyers a striking home sales presentation that outshines other homes on the market . Th is requires creating a fantasti c fir st impression, giving buyers an immediate feeling that they’re traveling up the front walkway of “their” new home for th e fir st time, and not visiting someone else’s dated home. Selling a house is about getting a buyer to fall in love a t fir st sight, from the curb, in those initial (an d fl eeting) seconds. Here’s the big news—not everybody gets the price they could when selling their home. For example, take two traditional style homes in the Los Angeles South Bay area, both houses near by a well-kept nice park close to a City Middle School. One of them has 3 beds, 1 bath, 1,236 sq . ft ., built 1957) was described as: “Neat as a pin and ready to go. Complete remodeled kitchen w/SS appliances, granite countertops, breakfast bar , fl attop stove,

beautiful til e fl oor. Complete bath remodel. Hardwoo d fl oors, new double pane windows. Great fenced yard, covered rear patio.” It was being fought over at $924,000+. Meanwhile, a comparable traditional single-family home a couple of blocks away, had the same 3 bdrms/1 bath, approximately 1,248 square feet, built in 1955. It sold for $868,000. Th at’s enough o f a diff erential (some $56,000!) for the owner of th e fir st home to pay the cost of his real estate agent’s commission and pocket some pro fi t. Frankly, that commission was money well spent, because hiring the real estate agent and following the agent’s sales plan made all th e diff erence. We’ll talk more about that as we move through this book; however, it was the advising, planning, staging, pre-marketing, marketing, negotiation, and professional know-how that sealed the deal. THE BASIC HOME SALES PROCESS Let’s begin with a practical examination of what the home-selling process is and how it works. We’ll examine how listing prices are determined and look at various ways that a listing price is set. I will discuss online valuation, professional appraisal, and the great bene fi t of a Current Market Analysis (CMA) by a REALTOR®. I’m also going to drive home the importance of the seller’s time, e ff ort, “sweat equity, ” fin ancial investment, and working as a team with a carefully selected real estate agent. It’s not a hire-me-and- you-are-done transaction. To get the most money for your house, you’ll have to invest in touch-ups, improvements, staging, keeping the grass cut, and many other items. Just as important, you’ll want to focus on the

factors that increase your home’s value and saleability, not merely throw money at items that will provide no measurable advantage. THE 80/20 RULE Imagine a buyer is in the market for a three-bedroom home and his agent found h im fi ve houses to preview. Each meets his general criteria, with similar features, is comparable in price, and is located in his desired area. One would assume the buyer would hav e a diffi cult time deciding between the houses. But no matter how similar they may seem, no two houses are exactly alike. Let’s say that one out of th e fi ve houses has a pool. Th e buyer is unaware of this feature, however, because the agent didn’t mention it . Th e buyer tours the four houses without pools and isn’t particularly interested in any of the m. Th en he sees the fift h house with the pool. Suddenly, he is ready to make an o ff er. He might even pay full asking price, even though this house is more expensive than the others. Here’s where something called the “80/20 rule” comes into play. Th e 80/20 rule, also known as the “Pareto Principle” (suggested by Joseph M. Juran and named a ft er Italian economist Vilfredo Pareto), states that for many situations, approximately 80 percent of results, or e ff ects, will come from roughly 20 percent of e ff orts, or causes. While it does not always come out to be an exact 80/20 ratio, this imbalance is o ft en seen in various business cases: • 20% of sales reps generate 80% of total sales. • 20% of customers account for 80% of total pro fi ts. • 20% of the most reported so ft ware bugs cause 80% of so ft ware crashes. • 20% of patients account for 80% of healthcare spending.

BUYERS FOCUS ON UNIQUE FEATURES In the above example, the buyer’s o ff er wasn’t based on the 80 percent of features this house shared with the rest. Instead, his bid was based on one unique attribute: the pool . Th e 80/20 rule predicted the sale of this house. Unfortunately, a lot of time was waste d in fin ding the perfect house. Had the agent known to look for the 20 percen t diff erence, this might have been the ir fir st stop. As a seller, you can leverage the 80/20 rule to work in your favor. Draw attention to de fin ing characteristics in your home. In one real-life example, a real estate agent was contacted by an out-of- town client . Th e client didn’t present a list of criteria for his house hunt. All he mentioned was that he liked the area. Th e agent drove him from house to house. Each time, the buyer suggested o ff ers that were 10 percent to 20 percent below asking price. He wouldn’t budge . Th e agent began to think that the whole day was turning into a big waste of time. Th e last house of the day didn’t have a lot of curb appeal. It was not a great looking home, but the agent was out of options. Nevertheless, this house broke the tough negotiator down. He was suddenly willing to o ff er the full asking price! What set this house apart from the others? It was not because the client had a “thing” for ugly house s. Th e 80/20 rule kicked in again. THE #1 SECRET STRATEGY TO HOME SELLING Understanding the 80/20 rule concept can save you time in selling your property. Stop trying to sell people on the entire home. Instead, highlight the 20 percent of your home’s features that make it special . Th e remaining 80 percent of your home still a ff ects the buyer’s decision, so don’t neglect it. But in photographs and showings, feature the elements that make your home special.

Your selling point won’t be the common features your home shares with the other properties on the market. Instead, use your home’s unique features to grab the attention of buyers who are interested in those distinctive features. Learn to leverage this rule, and you won’t have to settle for less than your asking price. Buyers who fall in love don’t haggle over pricing; they make good o ff ers. FINDING WHAT'S UNIQUE ABOUT YOUR HOME Th e house in the following example had languished on the market for more than seven months without a single o ff er. Unlike the home in the previous example, this house was not ugly. It was a fairly-new, custom-built home. But nobody seemed to care. Th e builder was ba ffl ed that his fancy new house would not sell. He ended u p fir ing his agent and hiring a new one. Fortunately, the new agent knew the importance o f fin ding that special, unique feature that would appeal to buyers. He toured the house to investigate further. What he found was incredibly obvious, and it changed everything . Th e house had a gorgeous double size yard. Other houses for sale in the development just had a regular size yard. Not only was the yard bigger, it o ff ered more privacy than the other available lots. So, the new real estate agent marketed the double size yard and the privacy. He described the home’s details but focused much of the attention on the lot. In no time, his phone rang! A buyer was relocating. He had noticed the house was for sale, but the previous description hadn’t caught his attention. With the added detail that the house had a double size yard and lots of privacy, suddenly this buyer was very interested; so interested, in fact, that he submitted an o ff er from 1,000 miles

away. He had never even seen the property in person. He feared someone else would buy it before he could, and he would lose out on the perfect house . Th at sale happened in 45 days. Th e builder was amazed. His house had been on the market close to eight months without so much as a nibble. Suddenly it was sold. Purchased sight unseen, all because of the 80/20 rule. By sh ift ing the focus to th e fi ve acres, the real estate agent captured the interest of buyers immediately . Th e house was no longer unsellable. On the contrary, for a short time, it became the hottest house on the market. SELLING TO INTERESTED BUYERS Th e moral of this story is to stop (or don’t ever start!) wasting time showing your home to uninterested people. Compare your home’s features with those of other houses in the neighborhood to see what makes yours stand out . Th ink about what you love about your home. Not the sentimental and family attachment, but rather the quant ifi able, physical characteristics. What makes you happy or brings you comfort as you walk through the door at the end of a long, hard day? Is it the shade of a secluded garden? A cozy library or inviting conversation pit in front o f a fir eplace? Is the heart of your home a sunny deck, a nice home theather room or a quaint backyard?” Perhaps it’s an elegant bathroom spa with a relaxing old-fashioned bathtub. Maybe you have a garage with built-in tool cabinets or a basement with your own recording studio. By shining a bright spotlight in your ad copy on what makes your home unique, you’ll attract interested buyers who are willing to pay full price and won’t waste your time with lowball o ff ers. Following the 80/20 rule can lessen time showing to people who aren’t interested. Instead, you will be showing your home to

buyers who are motivated to purchase. You won’t have to show as frequently. You also won’t have to s ift t hrough lowball o ff ers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your house with others in the neighborhood to see what makes yours stand out. Work with that. BUYER'S STORY When Vince and Sue were shopping for a new home, Vince wanted an ocean view . Th ey looked at many desirable properties but didn’ t fin d any that were right for them. Some were overpriced; others had obstructed view s. Th e search went on for almost a year until they found an older home a short walk from the ocea n. Th e neglected exterior and dated interior were not encouraging, but when Vince stepped out onto the thir d-fl oor balcony o ff t he master suite, he was sold. Any shortcomings in wall color o r fixt ures faded away when he took in the view. He could now see the sunrise over the sea from his bedroom window every morning. What 20 percent of the home caught the eyes of Vince and Su e? Th e magn ifi cent thir d-fl oor 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. Th ough the home was more than 10 years old, the interior was updated with fresh, neutral wall colors and carpeting to look brand new . Th e towering trees and established yard gave the home a welcoming appeal. Th e buyer had also looked at a home within miles of Cam and Kate’s that had towering trees as well as a koi pond and patio. Th at home was comparable in interior and exterior, but it was on a busy street. What 20 percent of the home caught the buyer’s eye

and prompted him to choose Cam and Kate’s hous e? Th e buyer loved the secluded country feel of that home . Th e large lot was surrounded by mature trees, and bougainvilleas dotting the landscape. LOCATION MATTERS One buyer paid extra for a townhouse because its location in the complex overlooked woods instead of the parking area. Another seller took advantage of the fact that most of the surrounding homes didn’t have yards; only a few shared a half-acre grassy area. Th e owner whose townhouse bordered this yard area sold his home for a higher price than other townhouses in the complex that were on the market because his had a characteristic shared by fewer than 10 percent of them. He had the only available listing o ff ering that feature, and he emphasized that feature in marketing his townhome. With this attractive point o f diff erence, the townhouse sold for a higher price. Another townhouse seller in the same complex found yet another unique feature. Although she did not have a yard, she was still able to use location to her advantage. Her property backed up to a lake and founta in. Th is unique feature helped her to sell her townhouse quickly and for a better-than-average price. SPOTLIGHTING UNIQUE HOME FEATURES Decide upon, improve, if necessary, and spotlight the unique features of your home in marketing copy, online and print photographs, and when showing the house. Don’t spend a lot of time explaining how the storage room can be converted to another full bath; instead, lead the dog-owning prospect to the fenced-o ff d og run in the unusually large backyard. If the home has a certain feature a buyer is spe cifi cally looking for, highlighting this aspect in marketing e ff orts will attract interested buyers willing to pay the asking price—or possibly more.

Each house will have its unique features. Here are some suggestions if you aren’t sure of yours: • Hilltop views or a high vantage point, o ff ering a spectacular view of the surrounding area. • Ope n fi elds frequented by wildlife. • Unobstructed views of sunrise and sunset. • Patios, decks, dog runs, garden areas, and gazebos—highlight items neighboring houses don’t have, o r diff erences in size or quality; that one vital feature could help you sell your home. • Location can set a property apart, even in the same area, adding value to a home on a cul-de-sac or corner lot. • A private location or lot partially concealed by trees. • A unique, shady, or larger backyard; a fenced backyard is a big selling point. (If your yard can be fenced, but is not, consider making that improvement). • Finished basement, large attic or garage, swimming pool, or anything else that makes your home stand out. POINTS TO REMEMBER: • To make your home stand out from others on the market, apply the 80/20 rule, which says buyers will consider 20 percent of features more important than the rest. • Identify the features that make your home unique, and emphasize those in marketing. • Buyers who appreciate the uniqueness of your home will tend to purchase more quickly and for more money.

CHAPTER 4 Creating Curb Appeal

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

they want to see more. So, consider what a potential home buyer might think as he or she drives up to your property for th e fir st time. You’ve probably seen the “We buy ugly houses” signs nailed to utility poles. Rehabbers look for ugly houses so that they can pay the least amount possible and “ fli p” the houses for a quick pro fi t. However, true home buyers—people looking for a home in which to live—are not lured by ugliness and “bargain basement” prices. Creating curb appeal is essential to attracting interest in your home from serious buyers. How your home looks from the road is so persuasive that a well-prepared house may catch the attention of buyers who did no t fin d the written description particularly compelling. Conversely, a neglected house can cause a buyer previously excited by a printed or online marketing listing to cruise right on by. SEEING YOUR HOME THROUGH FRESH EYES Try this. Go out into your street and look—I mean really look—at your home and see if you can spot any imperfections. Is it appealing, pristine, and well-kept, or are there necessary repairs that you have been putting o ff? Aft er 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 . Th en, take a drive around your neighborhood and surrounding area and see which homes for sale appeal to you, and note why. Well-tended houses with trimmed bushes, groomed lawns, attractive landscaping, and a “grand entrance” (discussed shortly) will be more impressive than homes with an unkempt walkway, uncut grass, and a paint-peeling front door . Th e outside appearance of a property needs to be an invitation to come

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