C21Affiliated Sellers Guide

SELLER’S GUIDE

© 2020 CENTURY 21 Affiliated. CENTURY 21 ® and the CENTURY 21 Logo are registered service marks owned by Century 21 Real Estate LLC. Equal Housing Opportunity. Each office is independently owned and operated.

DEAR HOMEOWNER, Our company was founded in 1978 with one office and two agents. Our core philosophies have always stayed the same: To provide excellence in service by concentrating on honesty, integrity, communication, marketing and staying ahead of our industry in training, negotiating and technology. Today, CENTURY 21 Affiliated is one of the world’s largest top producing CENTURY 21 firms with over 100 office locations in five states. As President and CEO of CENTURY 21 Affiliated, I know it takes all of these efforts to property serve our clients. Owning a house is one of the biggest investments of our lives and more importantly, it’s where you and your family build a home. Our team understands the value you place in your home, and we are dedicated to helping you sell it at the best place with as little time on the market as possible. Our agents undergo continuous training to stay on the cutting edge of Real Estate trends and technology. As a brokerage, we have invested in the technology and tools that allow our agents to showcase your home to every available buyer. Your home will be seen by our vast network of agents, displayed on over 500 websites including Zillow.com, C21Affiliated.com and REALTOR.com, as well as marketing both online and offline. We As you learn more about CENTURY 21 Affiliated and our Team, I am confident you will quickly discover that the difference is in the difference; a difference we are proud of.

Dan Kruse President/CEO CENTURY 21 Affiliated

ABOUT CENTURY 21 AFFILIATED

• 40+ Years of Experience • 100 + Offices throughout six states - Florida, Illinois, Indiana, Michigan, Minnesota and Wisconsin • 2,300 + Sales Associates CENTURY 21 AFFILIATED’S STRENGTHS

AWARDS AND RECOGNITION • #1 CENTURY 21 Franchise in the world for the sixth year in a row • Holds the record for most transactions in a single year - over 20,500 • Recipient of the Platinum Excellence Award by the Cartus Corporation • Recipient of the “Centurion” award • Presidents Club Award winner for production • Pinnacle Quality Service Award winner for customer service • Included in Real Trends Magazine “Top 500 Companies in U.S.” MEMBERSHIPS

• Member of the CENTURY 21 “2100 Club” • Member of local area Chamber of Commerce

• Member of the National Association of REALTORS®, Wisconsin, Illinois, Indiana, Michigan, Minnesota and Florida Association of REALTORS®, and numerous local REALTORS® • Association and Multiple Listing Services

REAL ESTATE TRANSACTION REFRESHER Whether it’s the first time you’ve ever sold real estate, or your 5th time, a real estate transaction refresher never hurt! Here are some of the real estate specific terms you’ll want to know. REAL ESTATE BROKERS AND REAL ESTATE AGENTS Listing agreements are made between real estate brokers and you, the seller. A real estate agent works for the licensed real estate broker. The commission for the sale of your home will be paid to the real estate broker. The real estate broker will pay a split of that commission to the seller and buyer agents where applicable. THE FAIR HOUSING ACT The Fair Housing Act, originally passed in 1968 and amended in 1988, is a federal law in the United States that prohibits discrimination in housing. The following are protected under the Fair Housing Act:

Race, Color, Religion, National Origin, Sex, Disability and Family Status. You can learn more about The Fair Housing Act at www.HUD.gov.

THE MULTIPLE LISTING SERVICE (MLS) The Multiple Listing Service is a proprietary database of all properties currently under an active listing contract in a given area. All active agents and brokers who belong to this MLS will have access to information about your property listing. Buyer’s agents searching for a new home for their clients will learn about your property listing through this online database.

REAL ESTATE PORTALS Real estate portal websites like Zillow and Realtor.com are data aggregators on listing information. The marketing information on your listing will be syndicated to real estate listing portals in order to draw in the largest possible market of interested buyers. APPRAISAL Before you signed your listing contract with me, I offered you a competitive market analysis of your home’s value. We will set the final asking price on your property based on this market value estimate. When you receive an offer on your home, the buyer’s lender will require an official appraisal of the property from a licensed appraiser. This valuation helps assure the lender that they would own a marketable property if the buyer (or the borrower in the lender’s eyes) should default on their mortgage. The buyer will pay for the house appraisal, but you should know that it may be different than the market analysis that I provided you. INSPECTION In addition to an official appraisal, most interested buyers will request a home inspection before final sale. The goal of a home inspection is to give the buyer an objective, independent and comprehensive analysis of the physical condition of your property and check for any safety issues that might otherwise be unknowable. A professional inspector will check on the structure, construction and mechanical systems of the house. This usually includes checking: • Electrical systems • Plumbing and waste disposal • Water heater • Walls • Floors • Roof

• Waste disposal • Pests • Foundation • Doors • Windows • Ceilings

• Radon gas • Asbestos • Lead paint

• Insulation • Ventilation • HVAC system • Water source and quality

SHOWING APPOINTMENTS When an interested buyer is scheduled to see your property, it’s best if you, your family and any pets you may own are not in the property. Buying a new home is a very emotional process, and it’s sometimes hard for prospective home owners to imagine themselves living in a particular place when the current resident is still inside. I will work with you and the other real estate professionals who will be showing your home to schedule and supervise listing appointments.

COSTS OF SELLING YOUR HOME MORTGAGE BALANCE This is the remaining balance on your original home loan. You will need to pay off your mortgage in its entirety when your home is sold. HOME EQUITY LOANS (2ND, 3RD MORTGAGES) Any loan against the value of your home will also need to be paid in full after the sale of your home. PREPAYMENT PENALTIES The bank or lending institution that currently owns your mortgage title may assess a pre-payment penalty. You should speak to your lender now, ask if they plan on assessing a pre-payment penalty, and figure out exactly how much that amount is. You may be able to negotiate with your lender to reduce or waive the prepayment penalty, if there is any. You’ll also want to submit a formal pre-payment notice to your lender. PRE-SALE PREPARATIONS In most cases, it’s not advisable to make major investments in your home right before a sale. There are however, a few things that can be done to increase your home’s curb appeal, fix minor problems, and otherwise make your property more attractive. Together we can identify what items should be addressed and create a budget for these pre-sale preparations that are sure to show a significant return on investment. CLOSING COSTS All closing costs associated with the sale of your home will be listed for you and for the home buyer in the Closing Disclosure form. They buyer is generally responsible for all of these closing costs which include: • The real estate broker commissions • Loan fees for the buyer’s home mortgage • Insurance premiums • Title costs (examination and insurance) • Legal documents and services fees • Recording/filing fees In some cases, buyers make a request for you as the seller to cover their closing costs as a part their purchase offer. We will negotiate these requests if they are made and I will help you understand why it would be advantageous to cover the buyers closing costs (if it is) and what limitations we can set to make sure we know the exact net of your home sale before closing.

TAXES The money that you make from the sale of your home is considered capital gains. The good news is that these profits can be excluded from your taxable income, up to $250,000 for an individual or $500,000 for a married couple, as long as your home was your principal residence. To exclude the full portion of those gains, you will need to have lived in your house for at least 24 months in the 5 years previous to the sale date of the property. This is considered the 2 in 5 rule. If you do not meet the minimum occupancy requirement you still may be able to exclude a portion of your gains if you are selling your house because of circumstances related to your health or to your job. You should speak with your accountant or a certified tax specialist if you believe you fall under one of the exclusions or need help in reporting your capital gains after the sale of your home. If this property is a real estate investment your profits will be considered taxable income and will be subject to state, federal and self-employment taxes. You can defer all capital gains taxes in a 1031 exchange if you are planning to reinvest the proceeds of your real estate sale into a new property. Again, in this circumstance you should speak to a financial specialist who can help you fully understand and minimize your tax liability. MOVING COSTS Moving isn’t only a hassle, it can also be very expensive. Whether you’re moving to a new house in your neighborhood or across the country, it’s important to estimate and plan for the full cost of moving from your home once it is sold. If you’re working with a moving company, you’ll want to get a full idea of what you’ll be charged for what services. If you’re moving yourself, you’ll most likely need to rent a van. And don’t forget the packing materials including boxes and tape. The more preparation you do in your move planning, the less likely you are to avoid overpaying for your move expenses.

CHECKLIST

WHAT DOES IT TAKE TO SELL A PROPERTY?

• Understand your goals, objections and expectations - it’s all about you! • Understand your valuable features and benefits • Discuss our local market presence ad my professional representation services • Discuss current market conditions and market data to establish the market value of your home • Discuss your pricing thoughts and pricing strategies • Discuss the benefits of listing your home with CENTURY 21 Affiliated Financial, legal, marketing, screening, security - selling your home requires experience in multiple skill-sets. Go through the questions below and see if you can check off every single one of them.

• Select the listing price of your home • Assure your confidence in our service

HOW I PROPOSE TO WORK WITH YOU • Listen to your goals and expectations • Understand what makes your home valuable • Share why you should list your home with a CENTURY 21 Affiliated professional

• Highlight how our presence and services can help you • Show a 21-point marketing plan to sell your home • Determine the market value of your property • Discuss optimal pricing strategies • Select the listing price for your home • Share resources and tips to help you get started • Answer any questions you may have

T

SELLING YOUR HOME

LOCATION is the single greatest factor affecting value. A neighborhood’s desirability is basic to a property’s fair market value. COMPETITION Buyers compare your property against others in that neighborhood, and interpret value based on properties available on the market. TIMING The real estate market may reflect a “buyers” or “sellers” market. Market conditions cannot be manipulated; an individually tailored marketing plan of action must be developed for each property. CONDITION The property condition will affect price and speed of sale. Optimizing physical appearance and advance preparation for marketing maximizes value. TERMS The more terms available, the larger the market, the quicker the sale and the higher the price. Terms structured to meet your objectives are important to successful marketing. PRICE If the property is not properly priced, a sale may be delayed or even prevented. Reviewing the Comparative Market Analysis assists you in determining the best possible price.

LET’S GET STARTED!

PHASE 1: PLANNING THE SALE

Once you are sure you want to sell, it’s time to choose the CENTURY 21 Affiliated Sales Professional that you feel best represents your interests. One consideration is the listing agreement. There are three types. You will want to choose one that you feel most comfortable with. OPEN LISTING This arrangement lets the owner sell the home on their own. However, if a realtor brings an able buyer and the owner accepts that buyer’s offer, the owner will pay a fee to the realtor. This type of listing is non-exclusive and can be executed simultaneously with more than one broker.

EXCLUSIVE AGENCY LISTING This arrangement is the same as the Open Listing, except the agent will represent the owner.

EXCLUSIVE RIGHT-TO-SELL LISTING This is the most common arrangement, and gives a broker the exclusive right to earn a commission by representing the owner and bringing in a buyer directly or through another brokerage. The owner pays both the listing and selling broker fees.

PHASE 2: 21 STEP MARKETING PLAN

CREATE A MARKETING PLAN Much of a CENTURY 21 Affiliated agent’s work is quiet and unseen, though critical for gaining the exposure necessary to get your home in front of prospective buyers. The phone calls, work with contacts, open house arrangements, follow-ups with prospects, conversations with ad responders, web postings and other outreach efforts are all handled by your agent on your behalf. 1. Recommend a pre-listing inspection and hiring a professional home staging service 2. Develop a Comparative Market Analysis (CMA) 3. Create a photo slide-show or virtual tour to post on listing websites 4. Enter your listing into the local Multiple Listing Service 5. Place the CENTURY 21 Affiliated “For Sale” yard sign 6. Announce your listing to sales associates in my office and other CENTURY 21 offices in the area 7. Place a “Lock Box” on your door to provide easy access for other sales associates

8. Place your listing on our CENTURY 21 Affiliated website 9. Distribute your listing to hundreds of Listing Partners 10. Place your listing on social media sites like Facebook, Twitter and YouTube

11. Place your listing on my personal website 12. Create a Unique Property Site for your listing

13. Prepare full color property flyers and brochures to showcase your home to buyers & REALTORS 14. Offer the CENTURY 21 Home Protection Plan that can help attract buyers to your property 15. Schedule email marketing pieces to my entire list of contacts & past clients as well as area REALTORS 16. Print and direct mail advertising in our local area 17. Hold an open house for area REALTORS and the public 18. Tour your home with prospective buyers 19. Provide you with constant feedback from buyer showings 20. Send you weekly online activity reports on your property 21. Negotiate with potential buyers on your behalf to help get you to the closing table

The most important part of staging your home is to make sure it is extremely clean, especially the kitchen and bathrooms. Next, it’s time to eliminate extraneous knickknacks and furniture to make rooms and closets seem more spacious. If you have decorated your home with bold colors and patterns, you may consider toning them down to appeal to a broader base of buyers. All necessary repairs should be made, including those on the exterior of the home. Don’t overlook the impact that your front and backyard will have in your efforts. Proven tips to make homes most attractive to buyers: PHASE 3: STAGE AND SHOW YOUR HOME

1. Cleanliness 2. De-clutter 3. Neutral paint and décor 4. Curb-appeal

CHECKLIST

TO STAGE YOUR HOME FOR A SHOWING

INSIDE

OUTSIDE

• Clear all unnecessary objects from f furniture throughout the house • Clear all unnecessary objects kitchen counter-tops • In the bathroom, remove items from the counter-tops, tubs, shower stalls and commode tops • Ensure that the bathroom tubs, tiles, sinks, shower floor and ceiling and toilet bowls are free of mildew and look sparkling clean • Rearrange or remove some of the furniture if necessary • Remove/rearrange pictures or objects on walls • Patch and paint where necessary • Review the house inside room by room and paint any room that needs it, clean carpets, drapes, windows, ceilings and chandeliers • Make sure the closets and garbage are not “too full” • Replace burned out light bulbs and repair any faulty switches • Repairs and improvements will facilitate • a sale being made • Make certain all rooms are odor-free

• Go around the perimeter of the house and remove all garbage cans, discarded wood scraps, extra building materials etc. into the garbage or trash • Check gutters, roof leaks and dry rot • Weed and then mulch all planting areas • Clear patios and decks of all small items, such as small planters, flowerpots, charcoal, barbecues, toys etc. • Check paint condition on the house, especially the front door and trim • Review if shutters, shingles, stone or bricks need replacing • Check exterior stairs and handrails; walkways, screens, screen doors

COMPLETE THESE TASKS AND YOU’LL BE AHEAD OF MOST OTHER SELLERS!

PHASE 4: NEGOTIATING THE DEAL

When a buyer is ready to make an offer, they will contact you or your agent. all offers should be formally presented with a contract for purchase and sale. Usually, buyers and sellers want the same thing—to transfer ownership of the home. But the contract negotiation often involves some back and forth between parties. Your CENTURY 21 Affiliated Agent’s expertise and negotiation skills are indispensable at this stage. As a seller, you can agree to accept or counter the offer. Plus, the price, stipulations and closing date are all negotiable. Once mutually-accepted terms have been reached, your agent will collect a deposit from the buyer as a financial indication of their intent to buy. Actual ownership of the home is not transferred until the closing.

CHECKLIST

PLANNING YOUR MOVE

6-8 WEEKS BEFORE MOVING DAY: • Set the date • Interview moving companies & get estimates • Get costs from truck rental companies if you plan to do the move yourself • Inventory household goods • Choose a mover 4 WEEKS BEFORE MOVING DAY: • Contact utility companies to arrange for transfer or shut off • File change of address forms • Notify friends and family of new address • Start organizing items to be moved or packed • Hold yard sale to get rid of unnecessary items 2 WEEKS BEFORE MOVING DAY: • Return any borrowed or rented items • Pick up any personal items • Miscellaneous • Begin to clear out refrigerator and freezer 1 WEEK BEFORE MOVING DAY: • Confirm arrangements with movers • Notify friends that you may need their help • Make arrangements for care of small children and pets for the day

THE DAY BEFORE THE MOVE: • Make sure each person has a bag packed for essentials at the new address • Defrost refrigerator/freezer • Confirm arrival time of movers DAY OF THE MOVE: • Get an early start • Make sure movers have your contact information during the move • Be available to movers for questions • Perform final check of the home once movers have left • Make sure any appliances left behind are turned off • Be sure to leave keys & garage door openers • All rooms should be at least broom clean and prepared for buyer walk through inspection ON DELIVERY DAY: • Make sure you understand how the mover expects to be paid • Supervise unloading and any unpacking • Confirm receipt of all items on inventory sheets

NOTES

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