INSIDER SECRETS TO GET TOP DOLLAR FOR YOUR HOME
Kristin Garnett
Table Of Contents
1.
Not All Home Sales Are Equal
2
2.
Understanding The Home-Selling Process
8
3.
Pitfalls Of FSBOs
18
4.
Common Mistakes To Avoid
24
5.
The #1 Secret Strategy To Sell Your Home For More
34
6.
Better Marketing
44
7.
Top-Quality Pictures
58
8.
Curb Appeal: Find The Charm And Show It
64
9.
Staging For Effect
72
10. Home Improvements That Make Sense
82
11. Negotiating Tips
92
12. The Vacant Home
98
13. The Distressed Home
108
14. The Inherited Home
120
15. Home Sales When Divorce Is Involved
128
Introduction Hi there! It’s nice to meet you. If you’ve received this book, it’s probably because you’re thinking about selling your home. And if you’re like most sellers, you may be dreading the entire process. But that’s why I’m here! My job is to make your job as a seller as easy and seamless as possible. Throughout my years of experience in the real estate industry, I’ve amassed insider knowledge to help home sellers get the most money out of their homes in the least amount of time. And now, you’ve got all of that information at your fingertips. If you’ve ever wondered how a friend with a seemingly average house in a seemingly average neighborhood managed to sell his home way above market value, the answer isn’t luck. That person likely was working with a great Realtor®.
In this book, you’ll find:
• An overview of the sales process • Secret strategies to sell your home for more money • Common mistakes to avoid • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • Tips for upgrading with the greatest return on investment • A negotiation guide to get more money • And much, much more Sure, you can try to employ these strategies yourself. But I suggest talking to a licensed professional — like myself — to employ them for you. Yes, selling your home can be stressful, but with this book (and my help!), we can make the process as quick v
and seamless as possible.
vi
About Kristin Born & Raised in the Pacific NW; I am a licensed Principal Broker in Oregon & a Managing Broker in WA. I am well versed in the metro neighborhoods & wonderful venues that Portland & Vancouver are famed for offering. My background consists of many years of Sales, Customer Service & HR Mgmt. I am also an AFAA Group Exercise Certified Instructor, my hobbies include spending quality time with my family and teaching fitness classes such as Zumba & Aqua Aerobics. Additionally, since 2006 I like to do Secretarial Subbing on occasion with the Beaverton School District to stay up to date with all the changes that are happening in my local school district. Since 2003 I’ve also owned & operated my own business designing/selling hand-beaded jewelry & wine bottle accessories. My family is the forefront of my purpose & drive. Married 30+ years, we have two boys (now young men). I am very compassionate about helping others; Doing what it takes to make a difference for my people and clients is what truly makes me happy. As a Principal Broker & Managing Broker, building relationships with someone requires trust & dependability. I am known to many as a nurturer, often putting the needs of others first & going the extra mile. Let me be the one to guide you. When it comes to buying & selling a home, it can be an emotional process. My primary objective with my clients is to eliminate their concerns & guide them with their home sales or purchase goals.
vii
When it comes to helping you sell your home, I have an amazing Marketing team that works with me to get your home out there for people to see. We submit your listing out to over 140 websites, post to all major social media (Facebook, Twitter, Instagram and Linkedin to name a few) as well as do an email blast to over 1000 local agents to get the word out. Each property also gets its own unique property website for home shoppers to view with professional photography and a virtual tour. My goal as your agent is to get the highest possible selling price that the market will bear based on the area your home is located and condition of the home at the time of sale. Want to learn more? I invite you to check out my website today. If you have questions, please contact me. I am here to help.
viii
Client Testimonials & Reviews
Great working with Kristin! Very professional from start to finish and easy to communicate with. Hope to do business together again. It was a pleasure!! Cheryl Johnson Kristin is a great agent and a true professional. Our deal was smooth and easy. Her steady, guiding hand helped ensure that everyone was happy and satisfied at the end of the transaction. Cody Williams I really don’t even know where to begin. Kristin is such an amazing lady! She is very open and very honest filled with knowledge and answered all of our questions we could call her anytime. She was right on with everything. She was not just our realtor she became our friend! Did everything to move our house and did an amazing job through the whole process of the sale. Thank you so much Kristin I could go on and on and on! Kristin was Unbelievably responsive 7 days a week; provided assistance and clarification throughout the process of both buying and selling. Hard to imagine a betterexperience. David Edwards-Schofield Kristin was a super helpful and resourceful realtor. She helped us with both buying and selling. We got great prices for both. Emily Edwards-Schofield Kristin was nothing short of a miracle worker. I sent her my friend Laura as a referral. Kristin helped her list and sell and locate a new home quickly. Even with a crazy market, Kristin Trust this Lady!! Sandee Gardner
ix
was able to find my friend a home she loves. Thank you Kristin for being the best! Troy Elston I worked with Kristin for over 7 years. She’s like my best friend and sister. She has a great work ethic, loyalty, and honesty. Anybody would be very lucky to knowand work with her. Vicki Nguyen Kristin Garnett handled both the sell of our home and our new purchase. She went above and beyond what most realtors would do. Made both seamless and made sure any issues were addressed. Best realtor we ever had!!! Paul Klinetobe " I would love to work with Kristin again. She was professional, polite and responded quickly. A real PRO! " Rachel Sheller – Oregon First Realty In a challenging market Kristin was able to make the impossible, possible. Her expert negotiation and attentiveness made our offer work against the stream of competing offers. We are so grateful to her for our new home . Aaron W. Working with Kristin was very easy. She is very professional and has great knowledge of the real estate industry. With her help and persistence, we were able to acquire the home of our dreams. Biff Wellendorf Kristin was an absolute pleasure to work with on a recent real estate transaction where she represented a buyer for one of my listings. Her great communication and attention to detail made her one of the best agents I have ever worked with. Even with a unique transaction, we were able to make it a win-win for both
x
parties. Looking forward to working with you again in the future! Steven Dyer Kristin is fantastic to work with! I referred a client to her for help with a home sale and she was great to work with. She is very professional, very good at communicating and easy to work with. I would recommend her highly to anyone looking to buy or sell their home. She is top class! Ellen Sanford Kristin is a wonderful lady and realtor. You are in excellent hands with her as your home buying/selling guide! Julie Ottaway Kristin’s caring and giving attitude, along with her knowledge of the real estate market are second to none. She’s in the trenches with her buyers and sellers at all times. One of my favorite people to have had the pleasure to work with. Give Kristin a call today. You’ll be happy you connected with her. JD Campbell
Kristin is amazing to work with! Very knowledgeable, professional and personable. I love working with her . Cindy K
Kristin is a real professional. She is thorough and gets work done in a timely fashion. Honesty and integrity define Kristin's work ethic, and anyone who works with her is in for a real treat. Kristin is the Realtor I want to help me with all my Real Estate needs. Sue Pantages Kristin is professional, and very knowledgeable about the area! Love her commitment to finding what will work best for your family! Loved our experience :)
xi
Kasey McAllister
Kristin is very sweet and helpful and went out of her way to get us our lovely home. We recommend her to anyone in the market. She goes above and beyond! Kira S Kristin marketing skills are beyond amazing! Her ability to spread her marketing through different channels to reach every Kristin is the best agent I have ever worked with! she is so patient and attentive, and always available and timely. I am pretty picky and have a lot of requests and she did such a great job bearing with me and took her time to find me a property that suited all my needs. I highly suggest working with her, you will not be disappointed. Mahdy Atwi Kristin is amazing I have had the pleasure working with her for a couple years now and everything has been awesome please know I am in the hvac trade and not many realtors are as amazing as her thanks a ton for being you!!!!!! Kevin Pierce market is great. Chris Lisignoli Kristin is an upstanding/honest agent. I have worked with her in the past. Kristin truly listens to your needs and makes one of our biggest investments in life stress free. I refer all of my friends to her. J.P. I highly recommend Kristin!!! I've had a few deals with Kristin and she has always been knowledgeable, proactive, and great at breaking things down into a matter that is easy to understand for me which helps because there can be some high stress
xii
moments. She's accessible and doesn't beat around the bush. These qualities are what you need when you are looking for a Realtor to represent you . Joshua Kim I can’t speak highly enough of Kristin Garnett @ Summa Real Estate. Her professionalism, knowledge, honesty, integrity and hard work ethics are very much appreciated and respected. She is detail oriented, honest, good with us and has a knack for matching the perfect home for me and my fiancé. Go see her, you'll be glad you did! Sue Erland Kristin did a great job; We had very difficult buyers and she fielded a bunch of questions and issues for us. We would recommend her to anyone! And she makes great Cookies! Kimberly Sutherland Kristin Garnett of Summa Real Estate Group was my choice to help me sell my house and also find another one. My anxiety about trying to find a ranch style home, in my price range, was more than I could handle, but from the moment I met Kristin, she assured me we would find the perfect home. She helped me with many things including people to help me pack, clean and fix things I needed done in the house. She also recommended a mortgage company Change Mortgage to help me get the financing process started. I give both of them the most excellent reference I could give anyone. Both companies were easy to work with and very attentive to me and my needs. Kristen went beyond the call of duty for me and was always a phone call away. She was also available at any time to show me houses I was interested in. I highly recommend her to help find the house of your dreams. She helped me find mine. Laura Miller
Kristin Garnett truly considered our feelings when it came to
xiii
selling our home. We talked to her not just one time but three times in a 5 year time period. She did not give up on us. No pressure to make a decision; the third time around we were ready to go. Kristin is very professional and her knowledge to guide us in the right direction created a trust and belief she was
the one to sell our home. Rodney & Sheila Schuller
Buying and finding a house in a buyers market was not an easy task.. Kristin was very professional as well as personal…our stresses were high as we had many criteria that needed to be met for our home. Kristin is not only a fantastic realtor, she is an excellent support system. ANYTIME there was a house we wanted to see Kristin moved fast as houses were flying off the market. She negotiated and helped us to obtain the house of our dreams, working hard to make sure things like repairs were fair. Kristin is amazing and I would highly recommend her to anyone looking to purchase a home, you won’t regret it. Bryan Goble Kristin was great to work with. She was always responsive to our queries and on top of all the steps in the home buying process. As first time home buyers we did not feel lost at any point- thanks to her. Shachi Agarwalla We had a very good experience buying and selling with Kristin Garnett. She has excellent relationships with a wide network of professionals from home inspectors to contractors to stagers to fellow agents at many other firms. We were delighted with our house going pending so quickly after being placed on the market, the smoothness of all our transactions with Kristin, and how willing she was to help; she even adjusted a cabinet door that we hadn't been able to get to close quite right before the listing went live. She was also great about wearing a mask whenever we met and her team adhered to COVID-19 protocols
xiv
in running open houses and showings, which we really appreciated. E.R. Kristin went above and beyond from the beginning always responded to text calls emails had answers to all our questions and if Kristin didn’t have the answers she… would find out. Kristin made this journey seamless and although at times for me the buyer it became bumpy she reassured me that it was a part of the process and she let me know not to stress out. Kristin has great energy a great smile and I would recommend her to absolutely anybody. When we purchased our next home Kristin will be our realtor again I give her an A+ all the way around. Thank you so much Kristin for your time hard work and effort! Ewalk22 Kristin is an amazing realtor! As a professional, she listened to our needs and desires, and helped us navigate through the home buying process. Our journey… to purchasing was over a year, and she walked every step with us, from beginning to end. We highly recommend her services! Chanesa Hart We were renters all this time, up until the time our neighbors in the wonderful cul-de-sac we live in approached us and said "want to buy our house"? Being a potential first-time home buyer I had no clue what to do and so called our best friend and he recommended hiring someone to represent us in the private sell... the house was not listed. I cannot say enough good things about Kristin and her ability to be our advocate, our voice and our negotiator in the home buying process, especially when it came to dealing with the neighbors who had certain demands because the house wasn't listed. Long story short, it was a great experience and I will only use Kristin moving forward, as we do have plans to move and sell in about 5 to 6 years. Kristin does indeed deserve 5 stars across the board on all those areas, thats
xv
the honest truth! Corey Chambliss
Kristin was AMAZING! My husband and I were first time homebuyers, she was very patient with us, explaining everything as we went through the process. She was also able to give us great reference for a mortgage company, recommended a great place where we could get appliances and even brought us a beautiful gift on the day we closed. I would recommend her to anyone looking to buy a house. Krystal DeMartino Kristin is a very knowledgeable and supportive agent. She worked quickly and efficiently to Support us in buying our forever home. She is knowledgeable and very detailed in the process. I would recommend her to anyone looking to buying a home! Andrea Waltrip-Norberg We recently bought a house in Portland with Kristin's help. We were in a rush, on a tight budget, and searching in the middle of a pandemic - but that didn't stop Kristin! She helped us find and close on our dream home quickly and smoothly. Kristin is on top of her game. She responds quickly to messages and is excellent at communicating with listing agents. She learned what we wanted early on in the process and didn't try to sell us on houses that weren't right for us. We wouldn't hesitate to recommend Kristin to anyone looking to buy/sell a home in the Portland area. Thanks, Kristin!! -Ryan Viles Thank you so much for helping us find our first home! Kristin was always quick to reply and thorough in everything that she did. We really appreciated how dedicated she was to helping us through out the entire process. Thanks again!!! -Alexandra Marin
xvi
Kristin, is the best, I was afraid that I might have got on her nerves bugging her so much, but she stuck with me the whole time. After several attempts of putting in an offer on homes and then getting beat out by higher offers, she got me and my kids into our dream home. Being a first-time home buyer can be very difficult but Kristin made it easy and fast. If you need to buy a home Kristin Is your go to girl, she is wonderful, patient, kind but wants what’s best for you, and she will find what you are looking for. Thank you Kristin -Bianca Morelos Kristin is not just an amazing realtor. She is an amazing person who will always go above and beyond for others. I've known her for many many years and can say without a doubt that she will take the time to listen to you and what you want and she'll be off and running!! So, if you want a agent that will go the extra mile to sell your home or find you your dream home. SHE's YOUR GIRL -Kali Brase Even 3 years post-closing, Kristin still stays in contact with me to see how I'm doing. Truly the best and most personal I have ever worked with. Her extra-curricular activities at the schools and nonprofits support the amount of respect I have for her. Be well until our next listing. -John Harvey Kristin was amazing and very Professional, she had so much patience and time and experience and knowledge it was amazing. Couldn’t have done it without her! -Laura Moore Kristin will never lead you to anything other than what is the very best for you and your family. She will never pressure you or try to talk you into any purchase that you are not 100%
xvii
confident in. She is genuine, patient, and very encouraging. She is the person you want guiding you through your home buying or selling experience! -Marshall Day "Kristin is very patient and NEVER pushy! She has guided us through our house hunting process with encouragement and unwavering patience! We have never felt even the least bit of pressure from her! She wants us to be 100% confident before making our purchase! I highly recommend her and her expertise! -mrssinistropheles “From before my clients saw the listing to after the closing, Kristin was great at communicating! She was always so responsive and great to work with. It felt that we were truly working with each other to help each of our clients, rather than against. It was my pleasure working with you!” Cheyanne Renne Edwards Realty Trust Corporation "The home buying experience with Kristin was very easy and surprisingly fast. She listed the house we were selling and it sold in a matter of days. Then she got us into a new home that we simply love! We couldn't be happier." -pencilartist51 "She was very clear and answered all of our questions. She was easy to work with and reaching her was never an issue. She had a lot of helpful materials and the open houses were well executed." -Alissa polley “Bring in the closer. She got the job done. She knows her stuff.” -Lonard Cox
xviii
“Kristin helped us find our dream home. She never rushed the process. It took us several months to find the right house and Kristen was patient. She gave great advice and is very knowledgeable. I highly recommend her to help you find your perfect home. Thank you Kristin.” -John & Kira Spurr ”Kristin did a great job helping me sell my home and buy another. She was very generous with her time in staging, showing and all of the follow up required once it sold. She was Johnny on the spot through the entire process.” -Betty Blais
"Kristin was very helpful and great to work with.” -Alison & Anthony Stanko
“I can't say enough good things about Kristin! She is wonderful, kind, patient and with her we really felt like we had an advocate that had our best interests at heart. Kristin stuck with us in a seller's market to help us find our first home. Even though we had a strong conventional loan we were still up against all cash offers at times, but she stayed level-headed and made sure we didn't buy a house for more than it would appraise for. We ended up getting a house in the school district of our dreams for our son and growing family.” -Jon & Frances Pimentel “Kristin rocked it. She is a go-getter and marketed our property like it was her own. She always kept us informed, was very responsive to all our requests and questions, and handled all of the details w/the buyers' agents and vendors. If she didn't know the answer to a question she would find it. We had an unexpected sewer issue reported by an inspector and Kristin went above and beyond to get validation from the county - they confirmed no issue and the sale was able proceed on time. She is our hero. Would highly recommend her and will be working
xix
with her again.” -Trina Brown (Bethany Ventures, Inc.)
“Kristin is absolutely amazing. I was looking for a rural secondary home last year. I didn’t know exactly WHAT I wanted, I just knew what I DIDN’T want. She was careful to really listen, ask the right questions, and narrow the search in the parameters needed for the right property. She spent the entire day with me sunrise to sunset going from several different beach towns showing me different places that fit in the parameters we had set. She also met me in Rainer of all places on another day for a lead on a great deal. The thing that impressed me the most was that there was absolutely NO pressure. Her goal was be a conduit to find the right place and the right fit, not push a sale on me regardless. I had a resistance using a realtor because I didn’t want to be talked into buying something or fearing they would be upset for time spent without a sale if I didn’t find the right one. At one point she said, “You need to feel good about the purchase. If not you should question if it’s the right one.” Wow! She totally nailed it for me. Another thing that really impressed me was every house we viewed and entered, she was very careful and respectful of the property and the owner and took great care to follow any instructions, take shoes off when there was carpet, etc. Unbeknownst to her I took mental note that when selling my property, I would trust her as the selling agent as well. Fabulous energy, determined work ethic, sharp mind, and honest integrity. I can’t say enough positive things about my experience in working with her!” -Dondi Kathman “Kristin Garnett is an excellent choice for anyone looking for a home, she is truly a professional and very diligent in all business ventures, she is reliable and you can trust that she will be there to help assist you in finding your perfect home.” -Lisa Holt
xx
“Kristin was amazing. We were interested in buying a property in Portland for our 2nd home investment. With Portland housing market on the rise, she was able to guide us with her deep knowledge and understanding and while provided us with great advice. She is responsive, a go-getter and always ready to go an extra mile. She always took the time to explain every step of the process. We really enjoyed working with her. We would recommend Kristin to anyone that is currently looking to purchase a home.” -Jay Ting & Cassandra Lu “Kristin Garnett I would like to thank you very much for getting my house sold. You have been so understanding of my circumstances and taken all of my concerns seriously. You were always fair and up front with me. You we're able to get the absolute best price removed all of the obstacles that came up. I highly recommend Kristen to anyone looking to sell their home and wants to work with someone they can trust to always have your best interest in mind.” - Kay Schultz “We love working with Kristin. She is friendly, professional, and insightful. Thank you, Kristin!” -David & Kellie Kent “Kristin is one of the best Realtors in town! I have thoroughly enjoyed working with her on many ventures and plan to use her exclusively with my future investments. She has many contacts all over the Portland area and has always found exactly what has been searched for. You would think that she had been in the industry for decades, as her passion and love of people makes her extremely effective.” -Lynda Greene “I was lucky to have Kristin serve as my realtor earlier this year when we sold my home in Troutdale. I travel a lot for my job so
xxi
communication and managing schedules was not an easy task. She was so easy to work with and handled everything form beginning to end! The open house she held was well advertised, attended and yielded multiple very nice offers! She made closing a breeze guided me through the whole process. I would highly recommend her service to anyone looking at buying or selling a new home! Thank you so much for all of your hard work Kristin and once again, GREAT JOB!!!” -Mike Schultz “Kristin was great, was patient with us, helped us find the perfect house in our price range, and helped find a no-hassle lender. She was helpful through all steps of the process and made sure our contingencies were met and really went to bat for us to ensure that we got a fair deal on our home purchase, working with the seller's agent and communicating our needs very well. She made herself available for all our needs, always responded to phone calls or text messages, even on weekends. Overall a great experience. She really made the whole process very easy for us.” -Justin & Karen Dow This is for all of my friends and family: My friend Kristin Garnett is a Realtor so if anyone is looking for a house she’s the one to call! -Tyrone Hayes “I worked with Kristin at Summa Real Estate Group. She cares so much about her clients and a great person! Hard worker, honest!!! I'd work with her any day.” -Janae Allen
xxii
CHAPTER 1 Not All Home Sales are Equal
Let’s Bust That Myth!
Hello! Nice to meet you. Thank you very much for picking up my book on Home-Selling Strategies I Use to Sell Homes for More Money. I am a real estate agent — and proudly so! It’s a wonderful way to make a living for an entrepreneurial and people-person type, as I am. I pride myself on my ability to help people settle into their little piece of the American Dream. If you are reading this book, you’re likely considering selling a home, and I’ve got plenty to tell you. I’m not trying to sell you anything, although my hope is that you will want me to sell something of yours (your house) after reading this book. However, I’m pleased to be of service either way. Later, if you want me to help you sell your property, we can talk. In the meantime, take advantage of the information in this book to get up-to-speed on selling a home for more money. I’m giving you the benefit of experience and professional advice I have garnered working with both sellers and buyers. I have worked on both sides of the street, which is helpful in getting around and lessening a seller’s stressors. Most sellers don’t venture alone into selling their home, instead finding it better to have a knowledgeable, experienced real estate professional with whom the sellers are comfortable. I wrote this book to provide some of that comfort without the direct stressors of salesperson-to-person contact, allowing you — someone interested in potentially selling a home — to learn, reflect, and 2
consider leisurely. At the end of this book, you’ll find material on why you should consider professional services in selling your home. I want the prospective or active home seller to independently achieve a better understanding of the home-selling process without stress, while getting to know the professional services I provide. I’ve also provided actionable insight into how best to market your home and avoid critical mistakes.
HOW TO LOOSE $36,000 ON A HOME SALE: ME SALE: NOT ALL HOME SALES ARE EQ ME SALES ARE EQUAL
Now, I’m going to introduce my Big Idea, the main premise of this book. There’s a widespread myth that any home will sell within a narrow price range compared to other more-or-less comparable homes in the market at the same time in the same area. Allow me to shatter that myth to pieces. No, everyone does not sell their home basically for the same price, and it’s not, like they say, all location, location, location. It is anything but that! You can sell your home for more profit than someone else might sell the same piece of property, or sell a comparable home in the same neighborhood for a significant price difference from what the owner of that home sells it for. It’s what you do before to make the sale that determines how much, and that is the Big Idea of this book — how to maximize your sale potential.
Let’s put this into an example to drive my point home.
Chuck wanted to sell his home. Word got around that Chuck was slated to be relocated; however, he had not started the process
3
of selling his house. It wasn’t listed, and he didn’t have a real estate agent. He hadn’t really given thought to that part of his promotion and move. A fast-moving buyer’s real estate agent contacted Chuck and got him excited by telling him that someone wanted to buy his house before he even put it on the market. The buyers were offering $285,000 and were approved for a loan. As the buyer’s real estate agent put it, this would be an easy, quick, and painless sale. The agent put on the pressure. “If you get a real estate agent, what you get for your home will be reduced by 6% and the deal won’t be as good. Besides, the house around the corner sold for $280,000 just 60 days ago. So? Will you sell your home?” On the surface, it seemed like a great deal. Chuck could sell his home quickly and avoid the inconvenience of the standard selling process. Chuck accepted the $285,000 offer and moved on with his life. The sale Chuck accepted was quick and easy, as the buyer’s agent said it would be. But it wasn’t painless. A few weeks later, Chuck’s neighbor sold his house for $321,000. The neighbor’s house was slightly smaller than Chuck’s, but otherwise comparable and in similar condition. Why did Chuck sell his house for $36,000 less than his neighbor did? What features made his neighbor’s house ~10% more valuable? Was it because it had a red door? Was it because the grass was cut? Why did Chuck bother to work so hard to pay down his mortgage? Why did he work so hard to keep his house in tip-top
4
shape, only to sell it for less than it probably was worth?
Why? Because, unfortunately, Chuck didn’t check with anyone to find out what his house was truly worth on the market. He didn’t get an appraisal or a second opinion. His great mistake was not talking to a real estate professional other than the buyer’s agent (who, of course, is looking to maximize the deal for his/her buying clients). Really, it was because Chuck was an amateur in the real estate game, up against a professional. Here is my tip on how to avoid having this happen to you: Obtain a second or even third opinion on the value of your home before you put it on the market. Valuing homes for sale is a range game; both art and science are involved in the process. But there’s a lot of art — probably more than you think. If you don’t price your home correctly, you risk selling it for less than it’s worth and/or wasting time while your home sits on the market because it’s not priced correctly. Your objective is to price your home so that it sells quickly and for the highest price possible. Each of us probably has a skewed idea of the worth of our home. Either we think it’s far more marvelous than it is, or we’re so tired of it that we think of it as a horrendous cross to bear that no one would ever want. Add to that your hopes and dreams of what to do with your money once you sell, and pricing your own home is a total danger zone. This is indeed an area where a real estate agent comes in handy. However, it’s certainly not the only area. Throughout the rest of this book, I’m going to “take you to school.” We’re going to take a trip through Real Estate Selling
5
Land. Through the rest of Part 1, we will take up Home-Selling Basics: Understanding the Home-Selling Process, Pitfalls of FSBOs (For Sale By Owner), and Common Mistakes to Avoid. Part 2 is devoted to Proven Strategies to Sell Your Home for More (i.e., professional marketing strategies adapted for unique situations; thinking like a buyer; knowing and addressing what buyers want; and marketing in the new online era, with chapters dedicated to Better Marketing, Top-Quality Pictures, Curb Appeal, Staging, Home Improvements That Make Sense, and Negotiating.) Part 3 wraps up Special Home-Selling Situations that sellers may face, including issues with The Vacant Home, The Distressed Home, The Inherited Home, and Home Sales When Divorce Is Involved. And only after all that will I try to sell you something — my very professional real estate services in selling your home for more moneywith A Last Word: Why You Should Hire Me to Sell Your Home.
6
CHAPTER 2 Understanding the Home-Selling Process
Financially and emotionally, a home is often an individual’s or family’s largest single investment. That 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, no more than two or three times in their lives. It involves new terms and concepts, financial acumen, and larger figures than people usually deal with. Emotions can overtake good judgment. As a seller, you might think, “Surely, my home, where I invested so much money and sweat equity, and raised my children, is worth more than ‘you people’ [appraisers, prospects, and buyer’s agents] think it is. You aren’t considering that the neighborhood was named ‘Most Livable’ in the local paper!” (five years ago, and the old neighborhood has since changed). Emotions almost always lead to problems in a sales price negotiation. Further, real estate transactions involve multiple decisions points and often substantial investment in the homeowner’s time, energy, and money. As a seller, you want to find that home shopper who simply can’t resist buying your house at the highest price. However, to do that, you must provide potential buyers a striking home sales presentation that outshines other homes on the 8
market. This requires creating a fantastic first impression, giving buyers an immediate feeling that they’re traveling up the front walkway of “their” new home for the first time, and not visiting someone else’s. Selling a house is about falling in love at first sight, from the curb, in those initial (and fleeting) seconds. As I said before, here’s the big news — everybody doesn’t get the price they could when selling their home. For example, take two little ranch houses across from a well-kept cemetery in a nice suburban city near Cincinnati, in Southwest Ohio. One of them, 25 Cemetery Road (3 beds, 1 bath, 936 sq. ft., built 1957) was described as: “Neat as a pin and ready to go. Complete remodel kitchen w/SS appliances, breakfast bar, flattop stove, beautiful tile. Complete bath remodel. Hardwood floors, replaced windows. Great fenced yard, covered rear patio.”
It was being fought over at $124,000+.
Meanwhile, a comparable 3 bdrm/1 bath, 936-sq.-ft., 1956 single- family home located at 19 Cemetery Road, had the same 3 bdrms/1 bath, approximately 936 square feet, and was built in 1955. It sold for $111,800. That’s enough of a difference (almost $15,000!) for the owner of 25 Cemetery Road to pay the cost of his real estate agent’s commission and pocket some profit. Frankly, that commission was money well spent, because it was hiring the real estate agent and following the plan that made all the difference. 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.
9
THE BASIC HOME SALES P ME SALES PROCESS
We begin our look at “Selling Your House for More!” 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 benefit of a Current Market Analysis (CMA) by a Realtor®. I’m also going to drive home the importance of the seller’s time, effort, “sweat-equity,” financial 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 touchups, improvements, staging, keeping the grass cut, and many other items.
LISTING PRICE SETTING
Setting a listing price is a strategic exercise that aligns the seller’s goals to the selling approach. If the seller is in a situation in which the house must be sold quickly, that calls for a price that will move the home quickly. However, it may forfeit selling for the most money. Where the house is an inherited property and not in the best of condition, but is in a great location, that takes another kind of pricing strategy, and might involve repairs and staging to get the best price. As you see, there are plenty of factors that go into setting a listing price. Therefore, it’s critical for home sellers to know the considerations that determine a home’s price. There is both an art and a science in setting a listing price. Setting the price at which to sell your home is not a formula, nor simply mathematical. There are many factors that go into the decision — for example, location (even location on the same street),
10
condition, features, and unique amenities.
A calculated home value isn’t necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes languishing on the market or unsold.
MARKET VALUE, APPRAISAL VALUE, AND ASSESSED VALUE
The price at which to list a home is the seller’s decision, although a savvy seller will solicit professional advice or work with a trusted real estate agent to arrive at that decision. Knowing the real estate concepts of “market value,” “appraisal value,” and “assessed value” allows the home seller to more meaningfully engage with a real estate agent in coming to a determination of a home’s listing price. “Market value” is the 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. In other words, in what range do similarly situated houses in the area/ neighborhood sell for? “Appraisal value” is an evaluation of a property’s worth at a given point in time that’s performed by a professional appraiser. Appraised value is an important factor in loan underwriting and determines how much money could 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
11
designated for specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property isn’t necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current value; however, this doesn’t reflect what the homes will sell for.
WHAT IS YOUR HOME WORTH?
The first step in selling your home is knowing the difference between value, worth, and price. Let’s examine the determining factors at work. Understanding those factors allows them to be leveraged. There are several ways a home’s value is derived.
ONLINE HOME VALUATION
A place to begin researching a rough estimate of a home’s market value is online. Several free online tools provide an estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. The downside of these systems is that the assessment is based on available public data, with no guarantee of accuracy and often using an algorithm that simply averages comparable sales in the geographic area. These are quick and easy, but do not answer questions regarding factors like location and current local trends. Be aware that in practice, the prices arrived at might be highly inaccurate. For example, a home in Ohio was put into one such system, Redfin (https://www.redfin.com/what-is-my-home-worth). The home last sold for $180,000 in 1998; it was appraised for refinancing in 2015 at $275,000. In 2017, Redfin’s calculator
12
valued this 1890 Victorian home (4 bedrooms, 1.5 baths, and 2,100 sq. ft.) in a four-block area of “Grand Old Ladies” at $158,000. The apparent reason is that the six “comps” (comparable recent sales) include only two homes in this desirable neighborhood (over $300,000), while four others are outside this small neighborhood, although close, and sold for $150,000 to $199,000. Information that would be known to real estate professionals in the area is missing. These tools are worthwhile for obtaining “comps” of area sales; however, they aren’t accurate enough to use in arriving at a listing price.
PROFESSIONAL APPRAISAL
Real estate appraisal (a.k.a. “property valuation”) is the process of developing an opinion of value for real property. This is the “market value,” or what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions almost always require appraisals because they occur infrequently on a given property and every property is different or unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers.
The most 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 type of structure present and how they were built • improvements made
13
• 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, but as property can’t change location, it’s often upgrades or improvements to a residential property that can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals with expertise in your region. Their job is to determine an estimated value by examining the property, looking at the original purchase price, and comparing it with recent sales of similar properties. The fee for this service is usually between $300 and $500.
CURRENT MARKET APPRAISAL BY A REAL ESTATE PROFESSIONAL
This home valuation is free from real estate professionals and more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market has to 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’ll be happy to
14
provide you with a Current Market Analysis (CMA). See the last page of this book if you would like more information on how to request a free home valuation.
EXAMPLE OF DIFFERING HOME VALUATIONS:
Let’s say a buyer is interested in a home listed at $420,000. The online valuation determines the house is worth $440,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $300,000, the buyer wonders why the values are so different, and if he overpaid. The house was listed at $420,000 because at that price, the home would sell in a reasonable amount of time. Why wouldn’t the appraised value be whatever a buyer was willing to pay? The fact that they paid $420,000 doesn’t mean that is the true value of the home. Certain factors may weigh in (undesirable businesses located near the property, for example). Online valuations can’t take into consideration the condition of the property, or the qualities of the neighborhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. Ideally, they should be the same, but usually they aren’t. It’s based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these items into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the appraisal.
A CRITICAL PART OF SELLING YOUR HOME FOR MORE IS YOU
We’ve seen that there’s no calculable certainty in setting the value
15
of a home. There can be wide differences between the seller’s assessed price, the asking or listing (market price value), and the price at which the home sells (sale price). A market in which homes sell within six months of listing is considered balanced or neutral, meaning enough homeowners are selling and customers buying that neither has an advantage. A variable, such as a major retailer entering or leaving the area, will tip the scale toward sellers to make a “fast” market or toward buyers to create a “slow” one. The average time in a fast market might be 30 days, and the average time in a slow market could be a year. Typically, any number below six months is considered a seller’s market. Let’s touch on what the homeowner/seller can do to elicit offers at the listing price, or even above, in a competitive market. As mentioned earlier, the partnership between seller and real estate agent will make an enormous difference in results. The agent can professionally market a house, bring in a qualified prospect, and then the deal is blown because the seller didn’t clear his garage of his taxidermy hobby during a critical showing. Or because the snow isn’t cleared, or because the walls are painted kind of “funky.” There’s only so much even the most talented real estate agent can do. The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation by improving, freshening, landscaping, and generally making the home pristine — and to live in that presentation readiness state for the time it takes to sell the property — will greatly affect both the sale period the price at which the home sells.
16
CHAPTER 3 Pitfalls of FSBOs
You’ve sold a few automobiles in your day without trading in to a dealer, and you sell antiques on eBay. You’ve done well by both and consider yourself an astute horse trader and businessperson. So, now the time has come to sell your home, and you find yourself considering the options of selling it For Sale By Owner (FSBO) to save the commission fee. True, some people can sell their property outside the confines of a contractual agreement with a Realtor®, but the harsh reality is that most can’t, and don’t, and will spend significant time and effort spinning their wheels while qualified buyers come and go, without giving their property any serious thought, or, worse yet, never even knowing it was available. FSBO is the process of an owner selling a piece of real estate without using a real estate broker or real estate agent. While in an FSBO transaction, a seller may employ the services of marketing or online listing companies or market their own property, there’s no commission paid on the sale. This is the perceived value of an FSBO. However, sellers often need the services of attorneys to traverse the documents and intricacies of a real estate sale, and that cuts into the financial benefit. Although still out of the mainstream in real estate transactions, FSBO transactions seem to be increasing. Zillow reports a doubling of FSBO listings between 2012 and 2014 (up to 4%), ForSaleByOwner.com seeing 24% growth in 2013, and StreetEasy reporting NYC FSBO listings increasing by nearly 30% in that same period. According to a 2016 report by the National Association of Realtors® (NAR) regarding home buyer and seller 18
trends, Home Buyer and Seller Generational Trends Report 2016, 8% of surveyed real estate transactions between July 2014 and June 2015 were FSBO. That said, fully 92% of home sellers prefer the use of qualified representation (i.e., a Realtor®) in such a major transaction.
THE TIME FACTOR OF FSBO
One detriment to the seller of a FSBO transaction, and a benefit of engaging a real estate agent, is that in the process of selling your house, you’ll spend an incredible amount of time showing it to potential buyers. Unfortunately, most of them aren’t interested in buying your home. This is a waste of your time. On average, it takes three to four hours to show a home. Most owners show their home at least 8 to 10 times before making a sale. Sometimes more than 30 times! The average owner spends 24 to 40 hours showing their home. It can easily take 80 to 120 hours to complete the process. FSBO homeowners jump at the chance to show their home to anyone and everyone. When a buyer calls, they drop everything. This reactive approach is a big reason it takes them anywhere from 8 to 30 showings to find the right buyer. The process will consume your life. Over time, stress begins to build. Not just on you. Repeated showings are stressful for your entire family. It gets worse, as casual buyers continue strolling through and walking away, undecided. Do you have children? Pets? Showings create chaos in their lives, too! Kids are quickly rushed off to a friend’s or family member’s
19
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164Powered by FlippingBook