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Feel free to download below, or you can read it online as well.
Selling For Top Dollar | ||
SELLING FOR TOP-DOLLAR
The 10 Proven Strategies to Make Your Home Sell Faster and For More Money
by: Sholom Kass
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INTRODUCTION
PRE-MARKET STRATEGIES: APPEARANCE 1. The Look: Stage it. 2. The Feel: Get Rid of Clutter PRE-MARKET STRATEGIES: IMPROVEMENTS 3.“Green” Upgrades: Energy Efficient & Environmentally Friendly 4. Make-up for Your House: Fresh Paint, Flooring, & Roof 5. First Impressions: Fresh & Young Landscaping 6. Gourmet Kitchens and Beautiful Bathrooms MARKET STRATEGIES 7. Easy Sells: Make it Easy for Buyers to View 8. Marketing: Maximum Exposure, Maximum Interest 9.The Buzz: Event Pricing 10.The Deal: Skilled 3rd Party Negotiation |
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INTRODUCTION
Getting the most money for your house requires a strategic, proven approach.
There are a lot of myths and misconceptions about how a homeowner can best get top dollar for their property.
Netting the most money in your pocket will often require extra inconvenience, extra out-of-pocket expense up front, and being open to ideas that may require adjusting some of your expectations.
This book is designed to educate and guide you on some of the different things that you may want to do to get the most money out of the sale of your property. While there are no guarantees that you will get as much as you want for your house, these are proven strategies that will maximize the value of your home and help you protect your hard-earned equity.
First we want to define what exactly is “top dollar” for your house. Top dollar is the most money a qualified, motivated buyer is actually willing to pay for your property in the current market.
It’s imperative to understand that “top dollar” has nothing at all to do with how much you paid for the property, how much you want for your property, how much you owe on the property, or the cost of improvements you’ve made to the property.
A house’s value is almost totally comparative in nature…meaning its value is based on how it compares to other similar properties that have sold recently and to a lesser extent to properties that are currently on the market. An appraiser will use the three most comparable recent sales to establish a current opinion of value as of the date of the appraisal, but at the end of the day, if there is not a buyer willing to pay that amount for it, then the appraised value really doesn’t have any meaning.
In today’s market, buyers are more educated than ever because of the internet. They are also busier than ever, meaning they are more interested than ever before in turn-key houses (properties they can buy and move into immediately without have to do any cleaning, repairs, or updating). And if they are interested in a property that needs some work, they expect a steep discount for their trouble. A general rule of thumb for “as is” sales is to expect to discount your property two dollars for every one dollar of needed updates or repairs. It can be more or less, depending on many factors, but that gives you a general starting place.
There are three basic ways to increase the selling price of your property.
1.Appearance Appeal.
These are steps that make the home show better and or make it more visually and emotionally appealing to buyers.
2.Physical improvements.
This is by making upgrades or changes to your property that will cause the average buyer to be willing to pay your price. Not all physical improvements will give a positive “return on investment.” Some improvements simply bring the property up to marketing standard.
3.Positioning.
How the property, price and terms are positioned and presented to buyers in the market.
The following 10 strategies are simple, powerful, and proven action steps to get buyers’ attention and cause them to be willing to pay the most money for your property.
Getting the most money for your house requires a strategic, proven approach.
There are a lot of myths and misconceptions about how a homeowner can best get top dollar for their property.
Netting the most money in your pocket will often require extra inconvenience, extra out-of-pocket expense up front, and being open to ideas that may require adjusting some of your expectations.
This book is designed to educate and guide you on some of the different things that you may want to do to get the most money out of the sale of your property. While there are no guarantees that you will get as much as you want for your house, these are proven strategies that will maximize the value of your home and help you protect your hard-earned equity.
First we want to define what exactly is “top dollar” for your house. Top dollar is the most money a qualified, motivated buyer is actually willing to pay for your property in the current market.
It’s imperative to understand that “top dollar” has nothing at all to do with how much you paid for the property, how much you want for your property, how much you owe on the property, or the cost of improvements you’ve made to the property.
A house’s value is almost totally comparative in nature…meaning its value is based on how it compares to other similar properties that have sold recently and to a lesser extent to properties that are currently on the market. An appraiser will use the three most comparable recent sales to establish a current opinion of value as of the date of the appraisal, but at the end of the day, if there is not a buyer willing to pay that amount for it, then the appraised value really doesn’t have any meaning.
In today’s market, buyers are more educated than ever because of the internet. They are also busier than ever, meaning they are more interested than ever before in turn-key houses (properties they can buy and move into immediately without have to do any cleaning, repairs, or updating). And if they are interested in a property that needs some work, they expect a steep discount for their trouble. A general rule of thumb for “as is” sales is to expect to discount your property two dollars for every one dollar of needed updates or repairs. It can be more or less, depending on many factors, but that gives you a general starting place.
There are three basic ways to increase the selling price of your property.
1.Appearance Appeal.
These are steps that make the home show better and or make it more visually and emotionally appealing to buyers.
2.Physical improvements.
This is by making upgrades or changes to your property that will cause the average buyer to be willing to pay your price. Not all physical improvements will give a positive “return on investment.” Some improvements simply bring the property up to marketing standard.
3.Positioning.
How the property, price and terms are positioned and presented to buyers in the market.
The following 10 strategies are simple, powerful, and proven action steps to get buyers’ attention and cause them to be willing to pay the most money for your property.
PRE-MARKET STRATEGIES: APPEARANCE
1. The Look: Stage it.
A good professional stager makes good money for good reason. They know how to make a house look it’s best to the largest number of people…and to the people that matter the most…BUYERS. What a skilled staging professional will do is help you make the house look fantastic in a way that is still “neutral,” which helps it appeal to potential buyers with widely varying styles and tastes.
Even homes that have been expertly decorated by an interior designer will still often benefit from staging, because an interior designer customizes the look of the house to match the current owner’s tastes. It may or may not be a look that will create the maximum appeal to the largest cross section of Buyers.
You can find lots of do-it-yourself staging ideas on-line for free, that will give you some great ideas on making your house show at its best. However, here is an important tip that will help you understand the psychology of today’s Buyer.
When a potential Buyer walks into your home, how they FEEL about the property is very, very important. Or to say it a different way…how the property makes them feel. Here is the question to ask yourself: When buyers walk into my property, is there anything about it that could keep them from feeling at home?
Once Buyers have identified the key criteria of their purchase (such as price, location, size, condition, etc), they will ultimately buy based on emotion. How does the house make them feel? So if a Seller has “eccentric” tastes in paint colors, flooring, furniture, or décor that does not “feel” comfortable to the Buyer, the Buyer simply can’t “feel at home” in the house.
Granted this can be an annoying process, because you may tend to say to yourself, “Hey, if they don’t like the way I’ve decorated my home…and they can’t see past it…that’s too bad. I’m not changing it.” And you have every right to take that approach…because after all, it is your house. However, keep in mind that the goal is to make it NOT be your house. AND…to get top dollar. So, take a deep breath and be willing to de-personalize it to make is most appealing to Buyers.
Here is huge tip that is not so much about physical staging of the property as it is a way to position your home in the market with a higher perceived value. Provide a “Home Warranty” on your home. Anything pre-owned feels better if it comes with a warranty. Then, make sure you highlight the warranty in your marketing as a value-added benefit for the buyer.
In addition to the marketing value, having a warranty already covering the house benefits you because it eliminates many post-closing issues caused by a brand new home warranty that does not go into effect until closing. The problem with that is that the home warranty company may exclude issues for the buyer calling them “pre-existing.” Consequently, the buyers may come back to you seeking for you to pay for sometimes costly repairs. You might call a home warranty a “virtual” staging feature that makes your home “show” better and with more value from the buyers’ perspective.
2. The Feel: Get Rid of Clutter
An over-stuffed house makes it look smaller. Second, it makes a home look older, because it presumably takes time to over-fill a living space. And third, it makes the space feel disorganized and sometimes even uncared for.
Because of this, it has a negative effect on the Buyers’ emotions.
Why? Because clutter creates stress. Emotionally clutter is not peaceful or relaxing. We become accustomed to our own “clutter” because it tends to increase gradually and we know where everything is, so it doesn’t feel like chaos to us. However, to someone looking at a house they’ve never seen before, clutter is the ultimate distraction. The clutter simply gets in the way of them seeing or feeling the house as if it were theirs.
So what is the best way to deal with clutter? Here are some ideas that may help.
First, go through your closets and take all your clothes that you haven’t worn in over a year and donate them to charity. You’ll feel great about it after you’ve done it, and your closet will magically grow!
Second, any furniture that is not going to your new place, get rid of it now. Sell it or give it away. Big furniture and/or too much furniture will make any room look smaller. Obviously, if it is still your primary residence, you want to keep enough furniture to keep your home livable.
Third, go ahead and box up everything that you will not need or use in the next 6 months and put it in storage. Again, the goal is to de-clutter. I know this is a hassle, but trust the experts…it will be worth it. Two especially important areas are you kitchen countertop and your bathroom counter space. This is the law: the fewer items the better.
One final warning, relocating clutter from the room to the closet or garage is NOT de-cluttering. That’s called “stuffing” or “stashing,” and that is not pretty! Now your house feels like it has no garage and no closet space. Yikes! Bite the bullet and rent a “PODS” or storage space.
TIP: Take a Saturday or Sunday afternoon to go look at some brand new homes that have been professionally staged. Remember, there is proven strategy behind what they do, so your goal is to make your house look like those houses.
1. The Look: Stage it.
A good professional stager makes good money for good reason. They know how to make a house look it’s best to the largest number of people…and to the people that matter the most…BUYERS. What a skilled staging professional will do is help you make the house look fantastic in a way that is still “neutral,” which helps it appeal to potential buyers with widely varying styles and tastes.
Even homes that have been expertly decorated by an interior designer will still often benefit from staging, because an interior designer customizes the look of the house to match the current owner’s tastes. It may or may not be a look that will create the maximum appeal to the largest cross section of Buyers.
You can find lots of do-it-yourself staging ideas on-line for free, that will give you some great ideas on making your house show at its best. However, here is an important tip that will help you understand the psychology of today’s Buyer.
When a potential Buyer walks into your home, how they FEEL about the property is very, very important. Or to say it a different way…how the property makes them feel. Here is the question to ask yourself: When buyers walk into my property, is there anything about it that could keep them from feeling at home?
Once Buyers have identified the key criteria of their purchase (such as price, location, size, condition, etc), they will ultimately buy based on emotion. How does the house make them feel? So if a Seller has “eccentric” tastes in paint colors, flooring, furniture, or décor that does not “feel” comfortable to the Buyer, the Buyer simply can’t “feel at home” in the house.
Granted this can be an annoying process, because you may tend to say to yourself, “Hey, if they don’t like the way I’ve decorated my home…and they can’t see past it…that’s too bad. I’m not changing it.” And you have every right to take that approach…because after all, it is your house. However, keep in mind that the goal is to make it NOT be your house. AND…to get top dollar. So, take a deep breath and be willing to de-personalize it to make is most appealing to Buyers.
Here is huge tip that is not so much about physical staging of the property as it is a way to position your home in the market with a higher perceived value. Provide a “Home Warranty” on your home. Anything pre-owned feels better if it comes with a warranty. Then, make sure you highlight the warranty in your marketing as a value-added benefit for the buyer.
In addition to the marketing value, having a warranty already covering the house benefits you because it eliminates many post-closing issues caused by a brand new home warranty that does not go into effect until closing. The problem with that is that the home warranty company may exclude issues for the buyer calling them “pre-existing.” Consequently, the buyers may come back to you seeking for you to pay for sometimes costly repairs. You might call a home warranty a “virtual” staging feature that makes your home “show” better and with more value from the buyers’ perspective.
2. The Feel: Get Rid of Clutter
An over-stuffed house makes it look smaller. Second, it makes a home look older, because it presumably takes time to over-fill a living space. And third, it makes the space feel disorganized and sometimes even uncared for.
Because of this, it has a negative effect on the Buyers’ emotions.
Why? Because clutter creates stress. Emotionally clutter is not peaceful or relaxing. We become accustomed to our own “clutter” because it tends to increase gradually and we know where everything is, so it doesn’t feel like chaos to us. However, to someone looking at a house they’ve never seen before, clutter is the ultimate distraction. The clutter simply gets in the way of them seeing or feeling the house as if it were theirs.
So what is the best way to deal with clutter? Here are some ideas that may help.
First, go through your closets and take all your clothes that you haven’t worn in over a year and donate them to charity. You’ll feel great about it after you’ve done it, and your closet will magically grow!
Second, any furniture that is not going to your new place, get rid of it now. Sell it or give it away. Big furniture and/or too much furniture will make any room look smaller. Obviously, if it is still your primary residence, you want to keep enough furniture to keep your home livable.
Third, go ahead and box up everything that you will not need or use in the next 6 months and put it in storage. Again, the goal is to de-clutter. I know this is a hassle, but trust the experts…it will be worth it. Two especially important areas are you kitchen countertop and your bathroom counter space. This is the law: the fewer items the better.
One final warning, relocating clutter from the room to the closet or garage is NOT de-cluttering. That’s called “stuffing” or “stashing,” and that is not pretty! Now your house feels like it has no garage and no closet space. Yikes! Bite the bullet and rent a “PODS” or storage space.
TIP: Take a Saturday or Sunday afternoon to go look at some brand new homes that have been professionally staged. Remember, there is proven strategy behind what they do, so your goal is to make your house look like those houses.
PRE-MARKET STRATEGIES: IMPROVEMENTS
3. “Green” Upgrades: Energy Efficient & Environmentally Friendly
One of the bonuses of creating a home that’s friendly to the environment is that it also makes your house worth more! Of all the improvements and upgrades that you can make to your home, it has been shown that “green” improvements often deliver the most “return on investment” in terms of dollar-for-dollar added value to your home. This chapter contains an overview of some of the best “green” upgrades you can make.
Let’s start with a very simple, no-brainer maintenance item that should be done regularly whether you’re planning to sell right away or not, and that is to replace the filter(s) in your central heat/air conditioner. It’s amazing how many sellers neglect this simple and inexpensive item. Not only does it save you money on your utility bills and make your HVAC unit more efficient, it also gives you cleaner air to breath. Plus it tells the buyers that you take care of routine maintenance items in your home.
Your heating and air conditioning system (HVAC) is likely the largest consumer of energy in your home, so it makes sense to have it functioning as efficiently as possible. Make sure the outside unit of the air-conditioner is in prime condition, that the fins are straight and unobstructed. It can easily become clogged with grass clippings, spider webs, or dirt. A good power-washing will do wonders for the efficiency of your outside unit, not to mention making it look nicer and newer.
Next, check the ducts in the attic that they are sealed, insulated, and that the air flow is unobstructed. If a smoker has lived in the house or a lot of pets (especially cats), sometimes it pays to have the ducts professionally cleaned. This improves the flow of air and also the quality of the air by removing potential allergens.
One final tip for greening an older, existing HVAC unit is to install a digital thermostat with programmable timers if you have one of the old mechanical thermostats. A thermostat ensures the heating system installed in your house works optimally. This gadget can be set to turn your heat/air on or off at certain times, and to what temperature the heat will rise or fall. A thermostat can be your partner in lowering your energy bill. When shopping for a new thermostat make sure you select one with an ENERGYSTAR symbol.
A newer arrival (the last 10 years or so) in the line-up of green, energy efficient upgrades are tankless water heaters. They heat water on demand and can easily supply immediate hot water in a normal family home. The benefit is that you are not wasting energy keeping 50+ gallons of water hot day and night. It also takes up a lot less space than the traditional water heater tank. You can now reclaim that water heater closet for other uses!
If a house has old single-pane windows, installing energy efficient double-pane windows can make a huge difference in maintaining a comfortable home. Plus, new windows look so much better than old windows, which also adds value.
Adding insulation in the attic lowers utility bills and keeps a house warmer in winter and cooler in summer while dramatically reducing heating and cooling bills. Properly installed weather-stripping around doors and windows also will make a big difference. Especially in older homes, anywhere there is a draft or air coming in from the outside.
Now it’s time to champion your energy efficient, environmentally friendly property to buyers. Once you’ve done all this “greening” of your property, make sure that is highlighted in the marketing of your home. Depending on how much greening-up you’ve done, these upgrades may or may not necessarily be a headliner item, but they are definitely features that grab buyers’ attention and may fetch you a higher sales price.
4. Make-up for Your House: Fresh Paint, Flooring, & Roof
Your goal is to make the property look appealing and attractive to the largest cross-section of potential buyers, so you want it to look clean and fresh.
Repainting the interior and exterior of a house is one of the most common update items that can give you a great return on investment when you’re planning to sell. Replacing flooring can be slightly more costly, but can also make a big difference, finally the condition of the roof is more than just a cosmetic issue, it’s also a significant structural component of your property. This chapter will focus mostly on painting simply because it is typically the most cost effective improvement to consider.
Just like you may get dressed up to go out, you want to “dress to impress” when it comes to presenting your house to the market. Fresh paint on a house has been compared to putting on make-up for a woman. It’s inconvenient, but the result is simply worth the effort. Fresh paint makes the house look nicer, newer, and more attractive.
A recent paint job also makes your care for your home obvious. If there are obvious maintenance needs such as painting that have been deferred, buyers and buyers’ real estate agents will automatically wonder what less-obvious items have been neglected.
Exterior paint is much more than a cosmetic item on a house. In addition to making your home look better, the outside paint job also protects your house from the elements. If the existing paint job on your home is cracking or peeling at all and is showing exposed wood on your eaves or windows as an example, painting the exterior may be a lender requirement for many banks to be willing to give the buyer a new loan on the property. Paint that is showing these signs of wear are considered “deferred maintenance,” and if not addressed will allow moisture to penetrate and damage the structure of the home over time.
Of course, masonry sidings, such as brick and natural stone normally do not need paint at all. And repainting exteriors such as stucco or hardi-plank is typically not required for protecting the exterior from the elements so much as just making the home look good. And properly-installed vinyl siding should not need painting at all.
What color paint should you use? For the exterior it’s generally best to go with a color that is fairly conservative and that fits in with other homes in the neighborhood. There are always exceptions and there are a lot of options, however earth tones are usually a safe bet.
On the interior, there are a lot more options to think about, such as using different colors in different rooms or two-tone color schemes, etc. Again, go conservative and stay neutral. If you’re repainting the entire interior just for the purpose of getting your home ready to put on the market, one or at most, two colors will generally work great for the entire house. There are exceptions to this. For example if you have a luxury home with extensive trim work or textured surfaces, paint choices can be a little more complicated. It an interior decorator designed it to begin with, it is probably a good idea to consult with them on any changes.
Even if your interior paint still looks like new, but is a unique color, you might want to consider neutralizing any colors that are really loud (such as yellow or lime green) or intense (like a dark red or purple). Again, this would be a good conversation to have with an interior decorator or stager or professional realtor. Another great option is to visit model homes of new home builders in the area and see what colors they are using.
If your interior paint is fairly recent and still looks fresh, you can often get by with just touch ups. However, make sure that the touch up paint is a true match with the existing paint. Touch up paint should be invisible once it is done. If you can tell where the touch ups were made, it is really bad news. Re-paint. Nothing looks worse that a shoddy touch up job.
FLOORING
Here are the most common reasons to replace flooring. First is carpet. If it is outdated, stained, or anything other than a neutral color, it will cost you. Replacing it with a nice, neutral-color carpet that is appropriate for the price range of your home can make good sense.
A trend in a lot of areas is more hard-surfaced flooring such as hard wood, tile, or even high-quality laminates. Even in rooms that have traditionally been carpeted, such as bedrooms, hallways, and dens, more people are opting for hard surfaces. The two main benefits are that hard surfaces can last longer and they are friendlier to people with allergies because they are easier to keep clean. Whatever decisions you make on flooring, it pays to do your research and consult with experts before you start.
ROOF
The most important issue with your roof is really more functional than cosmetic. Its main job is to protect your house. Replacing the roof can be quite expensive and should really be considered only if it is necessary. There are exceptions to this, but they are really beyond the scope of this book. The first and usually the simplest step is to call your insurance agent and have them send out an insurance inspector/adjustor to check the insurability of the roof. If they say it is in good shape, you should be in good shape.
5. First Impressions: Fresh & Young Landscaping
Curb appeal is the most powerful first impression a buyer gets when they first pull up in front of your house. And as they say, first impressions are lasting impressions. Having well-maintained and attractive the landscaping in the front yard makes a house look happy and loved. If a nicely manicured front yard makes them want to come into the house, a cleanly landscaped backyard makes them not want to leave. This is the one-two punch that you’re looking for.
As a general rule, younger shrubs and plants make a house look younger and accentuate the home itself. Planting flowers is always a good idea, because they give great color and life to a property and make it come alive.
What if you have landscaping that is more mature? Even if it has been well-maintained, older, larger bushes and shrubs make a house look older. This is especially true where you have bushes that have grown so high in a flower bed next to the house that they cover the windows.
Before you rush out and start digging up the old overgrown bushes, do a little more research and look at all your options. Landscaping, especially buying new shrubs and trees, can get very expensive very fast. Remember the goal is return on investment with any money you spend to improve the landscaping.
Mature trees and bushes which are properly maintained give character to a house and can be an extremely valuable feature both for shade and aesthetics and it screens the windows and give extra privacy.
The goal is to make your yard look clean and environmentally friendly, not overgrown and neglected.
3. “Green” Upgrades: Energy Efficient & Environmentally Friendly
One of the bonuses of creating a home that’s friendly to the environment is that it also makes your house worth more! Of all the improvements and upgrades that you can make to your home, it has been shown that “green” improvements often deliver the most “return on investment” in terms of dollar-for-dollar added value to your home. This chapter contains an overview of some of the best “green” upgrades you can make.
Let’s start with a very simple, no-brainer maintenance item that should be done regularly whether you’re planning to sell right away or not, and that is to replace the filter(s) in your central heat/air conditioner. It’s amazing how many sellers neglect this simple and inexpensive item. Not only does it save you money on your utility bills and make your HVAC unit more efficient, it also gives you cleaner air to breath. Plus it tells the buyers that you take care of routine maintenance items in your home.
Your heating and air conditioning system (HVAC) is likely the largest consumer of energy in your home, so it makes sense to have it functioning as efficiently as possible. Make sure the outside unit of the air-conditioner is in prime condition, that the fins are straight and unobstructed. It can easily become clogged with grass clippings, spider webs, or dirt. A good power-washing will do wonders for the efficiency of your outside unit, not to mention making it look nicer and newer.
Next, check the ducts in the attic that they are sealed, insulated, and that the air flow is unobstructed. If a smoker has lived in the house or a lot of pets (especially cats), sometimes it pays to have the ducts professionally cleaned. This improves the flow of air and also the quality of the air by removing potential allergens.
One final tip for greening an older, existing HVAC unit is to install a digital thermostat with programmable timers if you have one of the old mechanical thermostats. A thermostat ensures the heating system installed in your house works optimally. This gadget can be set to turn your heat/air on or off at certain times, and to what temperature the heat will rise or fall. A thermostat can be your partner in lowering your energy bill. When shopping for a new thermostat make sure you select one with an ENERGYSTAR symbol.
A newer arrival (the last 10 years or so) in the line-up of green, energy efficient upgrades are tankless water heaters. They heat water on demand and can easily supply immediate hot water in a normal family home. The benefit is that you are not wasting energy keeping 50+ gallons of water hot day and night. It also takes up a lot less space than the traditional water heater tank. You can now reclaim that water heater closet for other uses!
If a house has old single-pane windows, installing energy efficient double-pane windows can make a huge difference in maintaining a comfortable home. Plus, new windows look so much better than old windows, which also adds value.
Adding insulation in the attic lowers utility bills and keeps a house warmer in winter and cooler in summer while dramatically reducing heating and cooling bills. Properly installed weather-stripping around doors and windows also will make a big difference. Especially in older homes, anywhere there is a draft or air coming in from the outside.
Now it’s time to champion your energy efficient, environmentally friendly property to buyers. Once you’ve done all this “greening” of your property, make sure that is highlighted in the marketing of your home. Depending on how much greening-up you’ve done, these upgrades may or may not necessarily be a headliner item, but they are definitely features that grab buyers’ attention and may fetch you a higher sales price.
4. Make-up for Your House: Fresh Paint, Flooring, & Roof
Your goal is to make the property look appealing and attractive to the largest cross-section of potential buyers, so you want it to look clean and fresh.
Repainting the interior and exterior of a house is one of the most common update items that can give you a great return on investment when you’re planning to sell. Replacing flooring can be slightly more costly, but can also make a big difference, finally the condition of the roof is more than just a cosmetic issue, it’s also a significant structural component of your property. This chapter will focus mostly on painting simply because it is typically the most cost effective improvement to consider.
Just like you may get dressed up to go out, you want to “dress to impress” when it comes to presenting your house to the market. Fresh paint on a house has been compared to putting on make-up for a woman. It’s inconvenient, but the result is simply worth the effort. Fresh paint makes the house look nicer, newer, and more attractive.
A recent paint job also makes your care for your home obvious. If there are obvious maintenance needs such as painting that have been deferred, buyers and buyers’ real estate agents will automatically wonder what less-obvious items have been neglected.
Exterior paint is much more than a cosmetic item on a house. In addition to making your home look better, the outside paint job also protects your house from the elements. If the existing paint job on your home is cracking or peeling at all and is showing exposed wood on your eaves or windows as an example, painting the exterior may be a lender requirement for many banks to be willing to give the buyer a new loan on the property. Paint that is showing these signs of wear are considered “deferred maintenance,” and if not addressed will allow moisture to penetrate and damage the structure of the home over time.
Of course, masonry sidings, such as brick and natural stone normally do not need paint at all. And repainting exteriors such as stucco or hardi-plank is typically not required for protecting the exterior from the elements so much as just making the home look good. And properly-installed vinyl siding should not need painting at all.
What color paint should you use? For the exterior it’s generally best to go with a color that is fairly conservative and that fits in with other homes in the neighborhood. There are always exceptions and there are a lot of options, however earth tones are usually a safe bet.
On the interior, there are a lot more options to think about, such as using different colors in different rooms or two-tone color schemes, etc. Again, go conservative and stay neutral. If you’re repainting the entire interior just for the purpose of getting your home ready to put on the market, one or at most, two colors will generally work great for the entire house. There are exceptions to this. For example if you have a luxury home with extensive trim work or textured surfaces, paint choices can be a little more complicated. It an interior decorator designed it to begin with, it is probably a good idea to consult with them on any changes.
Even if your interior paint still looks like new, but is a unique color, you might want to consider neutralizing any colors that are really loud (such as yellow or lime green) or intense (like a dark red or purple). Again, this would be a good conversation to have with an interior decorator or stager or professional realtor. Another great option is to visit model homes of new home builders in the area and see what colors they are using.
If your interior paint is fairly recent and still looks fresh, you can often get by with just touch ups. However, make sure that the touch up paint is a true match with the existing paint. Touch up paint should be invisible once it is done. If you can tell where the touch ups were made, it is really bad news. Re-paint. Nothing looks worse that a shoddy touch up job.
FLOORING
Here are the most common reasons to replace flooring. First is carpet. If it is outdated, stained, or anything other than a neutral color, it will cost you. Replacing it with a nice, neutral-color carpet that is appropriate for the price range of your home can make good sense.
A trend in a lot of areas is more hard-surfaced flooring such as hard wood, tile, or even high-quality laminates. Even in rooms that have traditionally been carpeted, such as bedrooms, hallways, and dens, more people are opting for hard surfaces. The two main benefits are that hard surfaces can last longer and they are friendlier to people with allergies because they are easier to keep clean. Whatever decisions you make on flooring, it pays to do your research and consult with experts before you start.
ROOF
The most important issue with your roof is really more functional than cosmetic. Its main job is to protect your house. Replacing the roof can be quite expensive and should really be considered only if it is necessary. There are exceptions to this, but they are really beyond the scope of this book. The first and usually the simplest step is to call your insurance agent and have them send out an insurance inspector/adjustor to check the insurability of the roof. If they say it is in good shape, you should be in good shape.
5. First Impressions: Fresh & Young Landscaping
Curb appeal is the most powerful first impression a buyer gets when they first pull up in front of your house. And as they say, first impressions are lasting impressions. Having well-maintained and attractive the landscaping in the front yard makes a house look happy and loved. If a nicely manicured front yard makes them want to come into the house, a cleanly landscaped backyard makes them not want to leave. This is the one-two punch that you’re looking for.
As a general rule, younger shrubs and plants make a house look younger and accentuate the home itself. Planting flowers is always a good idea, because they give great color and life to a property and make it come alive.
What if you have landscaping that is more mature? Even if it has been well-maintained, older, larger bushes and shrubs make a house look older. This is especially true where you have bushes that have grown so high in a flower bed next to the house that they cover the windows.
Before you rush out and start digging up the old overgrown bushes, do a little more research and look at all your options. Landscaping, especially buying new shrubs and trees, can get very expensive very fast. Remember the goal is return on investment with any money you spend to improve the landscaping.
Mature trees and bushes which are properly maintained give character to a house and can be an extremely valuable feature both for shade and aesthetics and it screens the windows and give extra privacy.
The goal is to make your yard look clean and environmentally friendly, not overgrown and neglected.
6. Gourmet Kitchens and Beautiful Bathrooms
There are two rooms in a house that are consistently the most important to buyers. The first one is the kitchen, and the other one is the bathrooms. This is especially true for women. And when a couple is looking at your house, the woman is virtually always the primary one that must be impressed with the house.
Consequently, the kitchen and bathroom are the two rooms where you generally get the most “bang for the buck” on upgrades. This does not mean that every improvement you can make in kitchen or bathroom will pay for itself, but in general these are rooms to pay special attention to. A knowledgeable real estate agent, stager, or interior designer can give you advice specific to your situation. However, this chapter will give you some helpful suggestions and guidelines.
Step one is to de-clutter walls and counter tops in both the kitchen and bathrooms. As mentioned in Chapter Two, clear, uncluttered counters make your home look cleaner and the space larger. Plus this step is very simple and costs nothing to do. Granted it may be an inconvenience to put your toaster or blender away off the counter every day for a while, but it makes a big difference in the “look.” I know it’s a pain to have to unplug the hair-dryer and curling iron and put them away, but it will definitely make your home show better and be more attractive to buyers.
Remember, the way people live in a home, is NOT the way they look for a home when planning to buy it. Clean and uncluttered is the order of the day for your kitchen and your bathrooms. Hide the toilet brush and plunger that live behind your toilet. And the basket of vitamins and supplements or other odds-and-ends sitting on your kitchen breakfast bar…yep…they gotta go. Endure the inconvenience for the short-term to get the better result in a top-dollar sale.
Once you get beyond cleaning and decluttering, now the bigger decisions begin. Should you update the kitchen and/or bathrooms or not? It doesn’t take long to spend a lot of money in these two rooms, so again before you go all out, get some expert advice.`
Some homeowners make the mistake of thinking that the more upgrading and remodeling they do, the more money they will make for their house. They watch a remodeling show on television and decide they need to do a major remodel to get more money for their house. Keep in mind that return on investment is what you’re looking for. It doesn’t make sense to do a $40,000 kitchen remodel that only adds $20,000 to the value of your home. Having said that, here are some typical improvements that you may consider for your kitchen and bathrooms.
First, going back to Chapter Four, strongly consider repainting. If you have wallpaper (which is mostly out of style with some notable exceptions), you may check into removing it and replacing it with a nice paint job. Again compare cost benefit before you start ripping off the old wallpaper.
Next, consider your appliances. In the kitchen, appliances vary widely in their energy efficiency and looks. If they are old (10 years or more) they are also going to likely be unappealing to buyers. Upgrading to new appliances can make a huge difference in the marketing and sale of your home.
The refrigerator is the second highest energy consumer in the average home, second only to your HVAC. If your refrigerator is old (and ugly), consider an upgraded stainless steel refrigerator/freezer. Depending on the price range of your home and the area, you have a lot of options here. In some case you may opt to not include a refrigerator in the sale of the home at all. Just make sure that your real estate agent makes that exclusion clear to potential buyers, otherwise you may get stuck unintentionally leaving your fridge or buying a new one.
TIP: If you decide to stay with your existing refrigerator, at least clean it (including the top) and remove all the refrigerator magnets and “stuff” that occupies the outsides of many refrigerators.
Cabinets, counter tops, and fixtures are the next thing to look at. These are listed in order of expense to replace. Replacing cabinets is one of the most costly improvements you can do in any room in your house. Unless the existing cabinets are in pretty bad shape, it is often best to leave them and consider refinishing or repainting them.
Upgrading from Formica or laminate countertops to granite or synthetic hard surface countertops has become a fairly common improvement when updating kitchens. It makes a big difference in appearance and is not as expensive as one might expect. Again, there are countless options and qualities of granite, marble, or synthetic hard surfaces with widely varying price points.
Updated plumbing fixtures and light fixtures can be done on a tighter budget and can add pop to kitchen and bath. There is a wide range of options and price ranges.
There are two rooms in a house that are consistently the most important to buyers. The first one is the kitchen, and the other one is the bathrooms. This is especially true for women. And when a couple is looking at your house, the woman is virtually always the primary one that must be impressed with the house.
Consequently, the kitchen and bathroom are the two rooms where you generally get the most “bang for the buck” on upgrades. This does not mean that every improvement you can make in kitchen or bathroom will pay for itself, but in general these are rooms to pay special attention to. A knowledgeable real estate agent, stager, or interior designer can give you advice specific to your situation. However, this chapter will give you some helpful suggestions and guidelines.
Step one is to de-clutter walls and counter tops in both the kitchen and bathrooms. As mentioned in Chapter Two, clear, uncluttered counters make your home look cleaner and the space larger. Plus this step is very simple and costs nothing to do. Granted it may be an inconvenience to put your toaster or blender away off the counter every day for a while, but it makes a big difference in the “look.” I know it’s a pain to have to unplug the hair-dryer and curling iron and put them away, but it will definitely make your home show better and be more attractive to buyers.
Remember, the way people live in a home, is NOT the way they look for a home when planning to buy it. Clean and uncluttered is the order of the day for your kitchen and your bathrooms. Hide the toilet brush and plunger that live behind your toilet. And the basket of vitamins and supplements or other odds-and-ends sitting on your kitchen breakfast bar…yep…they gotta go. Endure the inconvenience for the short-term to get the better result in a top-dollar sale.
Once you get beyond cleaning and decluttering, now the bigger decisions begin. Should you update the kitchen and/or bathrooms or not? It doesn’t take long to spend a lot of money in these two rooms, so again before you go all out, get some expert advice.`
Some homeowners make the mistake of thinking that the more upgrading and remodeling they do, the more money they will make for their house. They watch a remodeling show on television and decide they need to do a major remodel to get more money for their house. Keep in mind that return on investment is what you’re looking for. It doesn’t make sense to do a $40,000 kitchen remodel that only adds $20,000 to the value of your home. Having said that, here are some typical improvements that you may consider for your kitchen and bathrooms.
First, going back to Chapter Four, strongly consider repainting. If you have wallpaper (which is mostly out of style with some notable exceptions), you may check into removing it and replacing it with a nice paint job. Again compare cost benefit before you start ripping off the old wallpaper.
Next, consider your appliances. In the kitchen, appliances vary widely in their energy efficiency and looks. If they are old (10 years or more) they are also going to likely be unappealing to buyers. Upgrading to new appliances can make a huge difference in the marketing and sale of your home.
The refrigerator is the second highest energy consumer in the average home, second only to your HVAC. If your refrigerator is old (and ugly), consider an upgraded stainless steel refrigerator/freezer. Depending on the price range of your home and the area, you have a lot of options here. In some case you may opt to not include a refrigerator in the sale of the home at all. Just make sure that your real estate agent makes that exclusion clear to potential buyers, otherwise you may get stuck unintentionally leaving your fridge or buying a new one.
TIP: If you decide to stay with your existing refrigerator, at least clean it (including the top) and remove all the refrigerator magnets and “stuff” that occupies the outsides of many refrigerators.
Cabinets, counter tops, and fixtures are the next thing to look at. These are listed in order of expense to replace. Replacing cabinets is one of the most costly improvements you can do in any room in your house. Unless the existing cabinets are in pretty bad shape, it is often best to leave them and consider refinishing or repainting them.
Upgrading from Formica or laminate countertops to granite or synthetic hard surface countertops has become a fairly common improvement when updating kitchens. It makes a big difference in appearance and is not as expensive as one might expect. Again, there are countless options and qualities of granite, marble, or synthetic hard surfaces with widely varying price points.
Updated plumbing fixtures and light fixtures can be done on a tighter budget and can add pop to kitchen and bath. There is a wide range of options and price ranges.
MARKET STRATEGIES
7. Easy Sells: Make it Easy for Buyers to View
Remember the aim is getting the property sold for top dollar, not making things easy and convenient for yourself. So…at least for a few weeks your goal is to accommodate the buyers’ convenience, not yours.
Here are a couple of the key things to understand about today’s buyers. First, people who are in the process of buying a home are making a huge, life decision, which naturally carries with it a large amount of stress. Consequently, buyers are typically feeling a lot of stress as they go through the process of shopping for a new home. It’s good stress with lots of excitement, hopefully, but it’s still stress.
Second, people today are busier than ever, so they are trying to make this big decision and pick the perfect house with the least amount of inconvenience. Consequently, buyers will often resent special showing restrictions or instructions that make it a “pain in the neck” to view your house. In some cases, they will literally completely eliminate a property from their list of homes to look at because it is too much of a hassle. It sounds crazy, but even when there is a shortage of available homes, buyers will often conclude, “if the sellers are going to make it that difficult for us to even see their house, they must not really want to sell it.”
If seeing your home requires extra inconvenience compared to the other homes they are viewing, buyers easily get irritated or annoyed about your property. This adds to their stress which they now attach to your house as a negative vibe. And yes, it is that important. So how can you position your home in the market to make your property feel like “home, sweet home” from the moment they are first aware of it? By making it easy for them to see it. So here are some tips to making the buyers feel great about your home before they even get to look at it.
Most of the serious, best buyers look at homes during the day, not in the evenings, and they are just as likely to be looking during the week as they are on the weekends. Weekenders (such as people who come to open houses) are much more likely to be unqualified non-buyers who are just window-shopping and wishing. The most serious and highly motivated buyers are “in the hunt,” and are out during the week searching for the perfect place to call “home.”
If your home is not readily available to be seen by qualified buyers on weekdays and on short notice, it will reduce the number of motivated buyers who will actually look at your house. It also adds to the buyer’s stress factor because of the inconvenience. Making it available to be seen on short notice and being willing to accommodate reasonable showing requests will always play in your favor. This is a significant benefit of having your home listed with a full-time real estate agent who uses a Supra lockbox which allows licensed agents to show their buyers without you being there.
If possible, keep your security alarm off on days when showings are happening. A security alarm that must be dis-armed by the buyers’ agent, is stressful for buyers and creates anxiety in buyers at the very moment you are wanting them to be feeling “at home” in the house. And, heaven forbid, if the alarm goes off, forget about it…the buyers are done at that house. Their first association with that property is a piercing siren, causing a sudden rush of adrenalin kicking in the fight-or-flight syndrome, and that does not leave the buyer with feelings of comfort and “home sweet home.”
Let’s talk about pets. Pets are a sensitive issue because, if you have animals, they are probably a part of the family, and after all this IS their home too. The problem is that you want the buyers walking through to feel like this is their own home, not a growling dog’s territory. A room, garage, or backyard that’s off-limits to buyers because of an animal (or sleeping person for that matter), is a big-time negative for the buyers. They are not trying to make it personal, but it’s virtually impossible for them to feel this house as being their home because the presence of your pet is a living reminder that they are an intruder on someone else’s turf.
I love cats. Unfortunately, if you have cats, their presence is a real negative when your house is on the market. A lot of people these days have allergies, especially to cats, which makes this a super sensitive issue to them. Even if the cat is gone, they know the dander remains. And if they are not pet owners, many buyers detest the presence of animal hair which seems to fill up every nook and cranny of a house where pets live.
Unfortunately, there is no convenient solution for this, but if at all possible, consider finding a place for your pets to stay while the house is active on the market. If you have a pro-active, skilled agent, that should not be a long period of time. Also, do everything possible, in terms of cleaning and deodorizing, to remove all signs of animals living in the house especially any hair and odors.
In summary, here are the key tips that make a house easy to show:
1) House can be seen any time (within reason) with minimal notice.
2) Security system off.
3) Use a Supra lockbox.
4) No pets at the house.
These are simply guidelines that will help make a house easier to show and sell. If you have special concerns or issues, discuss them with your professional real estate agent and he will work with you to figure out the best solution. Remember the key point is being willing to endure some inconvenience in order to get a better result.
7. Easy Sells: Make it Easy for Buyers to View
Remember the aim is getting the property sold for top dollar, not making things easy and convenient for yourself. So…at least for a few weeks your goal is to accommodate the buyers’ convenience, not yours.
Here are a couple of the key things to understand about today’s buyers. First, people who are in the process of buying a home are making a huge, life decision, which naturally carries with it a large amount of stress. Consequently, buyers are typically feeling a lot of stress as they go through the process of shopping for a new home. It’s good stress with lots of excitement, hopefully, but it’s still stress.
Second, people today are busier than ever, so they are trying to make this big decision and pick the perfect house with the least amount of inconvenience. Consequently, buyers will often resent special showing restrictions or instructions that make it a “pain in the neck” to view your house. In some cases, they will literally completely eliminate a property from their list of homes to look at because it is too much of a hassle. It sounds crazy, but even when there is a shortage of available homes, buyers will often conclude, “if the sellers are going to make it that difficult for us to even see their house, they must not really want to sell it.”
If seeing your home requires extra inconvenience compared to the other homes they are viewing, buyers easily get irritated or annoyed about your property. This adds to their stress which they now attach to your house as a negative vibe. And yes, it is that important. So how can you position your home in the market to make your property feel like “home, sweet home” from the moment they are first aware of it? By making it easy for them to see it. So here are some tips to making the buyers feel great about your home before they even get to look at it.
Most of the serious, best buyers look at homes during the day, not in the evenings, and they are just as likely to be looking during the week as they are on the weekends. Weekenders (such as people who come to open houses) are much more likely to be unqualified non-buyers who are just window-shopping and wishing. The most serious and highly motivated buyers are “in the hunt,” and are out during the week searching for the perfect place to call “home.”
If your home is not readily available to be seen by qualified buyers on weekdays and on short notice, it will reduce the number of motivated buyers who will actually look at your house. It also adds to the buyer’s stress factor because of the inconvenience. Making it available to be seen on short notice and being willing to accommodate reasonable showing requests will always play in your favor. This is a significant benefit of having your home listed with a full-time real estate agent who uses a Supra lockbox which allows licensed agents to show their buyers without you being there.
If possible, keep your security alarm off on days when showings are happening. A security alarm that must be dis-armed by the buyers’ agent, is stressful for buyers and creates anxiety in buyers at the very moment you are wanting them to be feeling “at home” in the house. And, heaven forbid, if the alarm goes off, forget about it…the buyers are done at that house. Their first association with that property is a piercing siren, causing a sudden rush of adrenalin kicking in the fight-or-flight syndrome, and that does not leave the buyer with feelings of comfort and “home sweet home.”
Let’s talk about pets. Pets are a sensitive issue because, if you have animals, they are probably a part of the family, and after all this IS their home too. The problem is that you want the buyers walking through to feel like this is their own home, not a growling dog’s territory. A room, garage, or backyard that’s off-limits to buyers because of an animal (or sleeping person for that matter), is a big-time negative for the buyers. They are not trying to make it personal, but it’s virtually impossible for them to feel this house as being their home because the presence of your pet is a living reminder that they are an intruder on someone else’s turf.
I love cats. Unfortunately, if you have cats, their presence is a real negative when your house is on the market. A lot of people these days have allergies, especially to cats, which makes this a super sensitive issue to them. Even if the cat is gone, they know the dander remains. And if they are not pet owners, many buyers detest the presence of animal hair which seems to fill up every nook and cranny of a house where pets live.
Unfortunately, there is no convenient solution for this, but if at all possible, consider finding a place for your pets to stay while the house is active on the market. If you have a pro-active, skilled agent, that should not be a long period of time. Also, do everything possible, in terms of cleaning and deodorizing, to remove all signs of animals living in the house especially any hair and odors.
In summary, here are the key tips that make a house easy to show:
1) House can be seen any time (within reason) with minimal notice.
2) Security system off.
3) Use a Supra lockbox.
4) No pets at the house.
These are simply guidelines that will help make a house easier to show and sell. If you have special concerns or issues, discuss them with your professional real estate agent and he will work with you to figure out the best solution. Remember the key point is being willing to endure some inconvenience in order to get a better result.
8. Marketing: Maximum Exposure, Maximum Interest
Even if your property is a show-stopping, jaw-dropping, gorgeous, model home with no apologies, it won’t bring top-dollar if it’s not properly exposed to the right buyers. Let’s look at how you can get the best exposure for your house.
WHAT MARKETING MATTERS?
You want to make sure you property is exposed to ALL the buyers in the market and to the BEST buyers in the market…all at the same time. Because of the internet and technology, this is actually much simpler than it used to be, provided it is being exposed through the best channels that hit the best buyers. Let’s look at what matters most.
First, who are the best buyers for your house?
#1) They have the funds and financing to purchase your home now.
#2) They are highly motivated and serious. Which means they are not casually looking at homes. They are focused on finding the right home and they want to make sure they don’t miss it.
Second, where are ALL of these best buyers really looking for homes?
Answer: Online and with an agent. That is why you want to market your house where all the best buyers are shopping.
Let’s say I’m a qualified, serious buyer. Which is what you’re looking for, correct? I need to buy a house now. I don’t want to waste my time or miss the perfect house. I have two options:
Number one, I can get a newspaper or look on internet, find some houses for sale, and then use my own car, my own gas, and my own energy and go look at a limited selection of houses, not really knowing what I’m going to find when I get there. And then do all the work myself and hope I find a house I like…and stumble through writing an offer and getting financing and hopefully being able to close on the house.
Or number two, I can find a professional buyer’s agent and their access to all the homes on the market. Plus I get use their car, their gas, their expertise, and their knowledge of the market to find the perfect house at a fair price without the hassle, and have professional guidance through the entire process. And that is what almost all motivated, qualified buyers do.
There is a reason that 90% of residential sales are properties listed on the Multiple Listing Service used by licensed Realtors. Agents who have the buyers rely almost exclusively on the Multiple Listing Service and other agents to find properties for sale. It puts all the homes in one central place. It provides complete and accurate information for the agent. Plus, they know that sellers who have listed their home with an agent are serious about selling, so they are not going to be wasting their buyers’ time.
Even if your property is a show-stopping, jaw-dropping, gorgeous, model home with no apologies, it won’t bring top-dollar if it’s not properly exposed to the right buyers. Let’s look at how you can get the best exposure for your house.
WHAT MARKETING MATTERS?
You want to make sure you property is exposed to ALL the buyers in the market and to the BEST buyers in the market…all at the same time. Because of the internet and technology, this is actually much simpler than it used to be, provided it is being exposed through the best channels that hit the best buyers. Let’s look at what matters most.
First, who are the best buyers for your house?
#1) They have the funds and financing to purchase your home now.
#2) They are highly motivated and serious. Which means they are not casually looking at homes. They are focused on finding the right home and they want to make sure they don’t miss it.
Second, where are ALL of these best buyers really looking for homes?
Answer: Online and with an agent. That is why you want to market your house where all the best buyers are shopping.
Let’s say I’m a qualified, serious buyer. Which is what you’re looking for, correct? I need to buy a house now. I don’t want to waste my time or miss the perfect house. I have two options:
Number one, I can get a newspaper or look on internet, find some houses for sale, and then use my own car, my own gas, and my own energy and go look at a limited selection of houses, not really knowing what I’m going to find when I get there. And then do all the work myself and hope I find a house I like…and stumble through writing an offer and getting financing and hopefully being able to close on the house.
Or number two, I can find a professional buyer’s agent and their access to all the homes on the market. Plus I get use their car, their gas, their expertise, and their knowledge of the market to find the perfect house at a fair price without the hassle, and have professional guidance through the entire process. And that is what almost all motivated, qualified buyers do.
There is a reason that 90% of residential sales are properties listed on the Multiple Listing Service used by licensed Realtors. Agents who have the buyers rely almost exclusively on the Multiple Listing Service and other agents to find properties for sale. It puts all the homes in one central place. It provides complete and accurate information for the agent. Plus, they know that sellers who have listed their home with an agent are serious about selling, so they are not going to be wasting their buyers’ time.
THE “FOR SALE” SIGN
A sign in the yard is incredibly important for obvious reasons and for some not-so-obvious reasons as well.
It announces that the home is for sale to people who are coming to see it and to people who just happen to be passing by your house. People who live in your neighborhood may even have someone they know who is interested in living in their neighborhood. They are not looking for a house for sale in the neighborhood, but when they see your for sale sign, they immediately are calling their friend or family member to let them know. Also, buyers who are active and motivated still drive neighborhoods looking for the perfect home. You want to make sure they don’t miss yours if they’ve missed it online.
What if we don’t want a for sale sign? Consider this…
There is a psychology of customers that every retailer and manufacturer with a product to sell knows: The easier it is for the customer to find your product, the more likely they are to buy it. Therefore, you make the product you want to sell easy for the buyer to spot, and they are more likely to buy it. The same is true with home buyers.
It goes back to the power of the buyer’s emotion in the buying process. You want buyers to feel only positive emotions about your house when they come to see it. It’s part of the critical first impressions they have about your house.
When they are driving down the street to come see your house, the sign in the yard announces, “HERE I AM!” It’s easy to spot and welcoming and they feel good about that.
But, when there is no sign, the buyers and their agent are having to search for your house for sale by looking for a set of tiny numbers pasted on your house to distinguish it from all the other houses next to yours that are not for sale. Or by trying to spot it from the pictures they have seen.
I know it sounds crazy, but this causes confusion (“Which house is it?”) and then frustration (“Why don’t they have a for sale sign? They must not want to sell that bad.”). It may sound minor, but that negative thought affects the way they look at your property.
There is another reason a sign matters. A prominent for sale sign draws the focus straight to your home, which is where you want them focused.
On the other hand, if there is no sign, if forces them to pay attention to all the other houses around yours as they scour house numbers looking for yours. The last thing you want them doing as they drive up to your house is looking at the other houses.
“Wow, Honey, look at that gorgeous house! Is that the one?” “No…it’s this next one.” “Oh rats! I wish that house was the one for sale.” Oops. Now they are wishing they could buy your neighbor’s house. Not exactly the outcome you were going for, right? Sound farfetched? I’ve seen it happen multiple times. And, at the exact moment you want them falling in love with your house, they are wishing they could have another home next to yours. They lost interest in the very house you want them to buy at the very moment you want them falling in love with your house.
Remember, the goal is to get your home SOLD. Maximum exposure maximizes interest, which generates more demand thereby increasing the odds of a better offer.
If you have real security concerns or about having your house on the market or personal reasons for not making the marketing of your house public, discuss it with me and we will find a way that serves your best interest.
A sign in the yard is incredibly important for obvious reasons and for some not-so-obvious reasons as well.
It announces that the home is for sale to people who are coming to see it and to people who just happen to be passing by your house. People who live in your neighborhood may even have someone they know who is interested in living in their neighborhood. They are not looking for a house for sale in the neighborhood, but when they see your for sale sign, they immediately are calling their friend or family member to let them know. Also, buyers who are active and motivated still drive neighborhoods looking for the perfect home. You want to make sure they don’t miss yours if they’ve missed it online.
What if we don’t want a for sale sign? Consider this…
There is a psychology of customers that every retailer and manufacturer with a product to sell knows: The easier it is for the customer to find your product, the more likely they are to buy it. Therefore, you make the product you want to sell easy for the buyer to spot, and they are more likely to buy it. The same is true with home buyers.
It goes back to the power of the buyer’s emotion in the buying process. You want buyers to feel only positive emotions about your house when they come to see it. It’s part of the critical first impressions they have about your house.
When they are driving down the street to come see your house, the sign in the yard announces, “HERE I AM!” It’s easy to spot and welcoming and they feel good about that.
But, when there is no sign, the buyers and their agent are having to search for your house for sale by looking for a set of tiny numbers pasted on your house to distinguish it from all the other houses next to yours that are not for sale. Or by trying to spot it from the pictures they have seen.
I know it sounds crazy, but this causes confusion (“Which house is it?”) and then frustration (“Why don’t they have a for sale sign? They must not want to sell that bad.”). It may sound minor, but that negative thought affects the way they look at your property.
There is another reason a sign matters. A prominent for sale sign draws the focus straight to your home, which is where you want them focused.
On the other hand, if there is no sign, if forces them to pay attention to all the other houses around yours as they scour house numbers looking for yours. The last thing you want them doing as they drive up to your house is looking at the other houses.
“Wow, Honey, look at that gorgeous house! Is that the one?” “No…it’s this next one.” “Oh rats! I wish that house was the one for sale.” Oops. Now they are wishing they could buy your neighbor’s house. Not exactly the outcome you were going for, right? Sound farfetched? I’ve seen it happen multiple times. And, at the exact moment you want them falling in love with your house, they are wishing they could have another home next to yours. They lost interest in the very house you want them to buy at the very moment you want them falling in love with your house.
Remember, the goal is to get your home SOLD. Maximum exposure maximizes interest, which generates more demand thereby increasing the odds of a better offer.
If you have real security concerns or about having your house on the market or personal reasons for not making the marketing of your house public, discuss it with me and we will find a way that serves your best interest.
9. The Buzz: Event Pricing
Everyone likes new stuff. They don’t like stale, unwanted items that have been sitting on the shelf too long. This is true with milk, with bread, and with homes for sale. That is one of the major reasons to avoid pricing your property in a way that causes it to sit on the market and become stale. Just like a loaf of bread, homes on the market have a “shelf-life” too.
That is why strategic “Event Pricing” can be very powerful. Strategically you want your price to accomplish something. You want it to create urgency in the mind of the buyers, not resistance, because the buyer’s sense of urgency is what will help you get more money.
As we have already discussed, buying is an incredibly emotional decision for buyers. This is why it’s important to understand the Buyer’s perspective, because what they see, BEFORE they see the house, is the price. Do you want buyers to come see your house emotionally eager and excited about your house? Of course. A great price makes them want to be excited about the house when they see it.
A high price makes them guarded, because they don’t want to over-pay. The unintended consequence is that prospective buyers actually try to find reasons to NOT like your house because the price is higher than the competition. They are emotionally afraid to fall in love with your house just because of the price.
One of the most common (and biggest) pricing mistakes many homeowners make is to price their home high with the idea that “We can always come down.” Today’s buyers are much more market-savvy and knowledgeable than they used to be. They look at comps and at the competition and they know before they see the house if the price is realistic or not. Unrealistic prices can actually make buyers not look at all.
On the other hand, if your home is correctly priced it will make buyers feel they need to snap it up before someone else does. This creates urgency and buzz about your house, which increased the perceived “demand” for your property.
Think about it this way. There are two things that you want buyers to be excited about:
Number one, is your property. Over 90% of the time, they will see your property online before they will see it in person, so it is important that you have great quality pictures of your home on the Multiple Listing Service and on the internet. This is the first impression buyers will have of your home. If the pictures are not excellent, they may not even want to see your house. This is also the reason having your house show at its best is important. When they show up, you want them falling in love with your property. As the saying goes, you want your house to “sell itself.”
The second thing buyers must be excited about is the price. If they love your house, but feel like the price is high, they emotionally put up resistance to liking your house because of the price. This is the last thing you want. First, because it may cause them to not make an offer at all. And second, because even if they do decide to make an offer on the property, it causes them to be hesitant. They tend to think about it longer and look extra hard at other properties on the market (your competition) because they’re trying to find a way out of liking your house. The result is offers do not come in as quickly, and some will not come in at all.
On the other hand, when your property looks awesome AND your price is attractive to buyers, they flock to your property like moths to a flame. Best of all they come to see it wanting to fall in love with it…looking for every reason to justify why they should do whatever it takes to get that house. Now, your house is “THE BUZZ.” In any market, the best way to get top dollar for any house is to hit the market with a price that stimulates demand for that house. The result is the most interest, the most traffic, and the most offers, which (when coupled with the right negotiator) will always result in the highest price.
When a home is over-priced it actually ends up selling for less, because it sits on the market too long and becomes stagnant. And then, after weeks and weeks on the market the “WWWTH” Syndrome kicks in….”What’s Wrong With That House?”
You want someone who will fall in love with your house, because that is the buyer who will pay the most for it. The irony is that pricing it high will actually KEEP buyers from falling in love with your house.
Everyone likes new stuff. They don’t like stale, unwanted items that have been sitting on the shelf too long. This is true with milk, with bread, and with homes for sale. That is one of the major reasons to avoid pricing your property in a way that causes it to sit on the market and become stale. Just like a loaf of bread, homes on the market have a “shelf-life” too.
That is why strategic “Event Pricing” can be very powerful. Strategically you want your price to accomplish something. You want it to create urgency in the mind of the buyers, not resistance, because the buyer’s sense of urgency is what will help you get more money.
As we have already discussed, buying is an incredibly emotional decision for buyers. This is why it’s important to understand the Buyer’s perspective, because what they see, BEFORE they see the house, is the price. Do you want buyers to come see your house emotionally eager and excited about your house? Of course. A great price makes them want to be excited about the house when they see it.
A high price makes them guarded, because they don’t want to over-pay. The unintended consequence is that prospective buyers actually try to find reasons to NOT like your house because the price is higher than the competition. They are emotionally afraid to fall in love with your house just because of the price.
One of the most common (and biggest) pricing mistakes many homeowners make is to price their home high with the idea that “We can always come down.” Today’s buyers are much more market-savvy and knowledgeable than they used to be. They look at comps and at the competition and they know before they see the house if the price is realistic or not. Unrealistic prices can actually make buyers not look at all.
On the other hand, if your home is correctly priced it will make buyers feel they need to snap it up before someone else does. This creates urgency and buzz about your house, which increased the perceived “demand” for your property.
Think about it this way. There are two things that you want buyers to be excited about:
Number one, is your property. Over 90% of the time, they will see your property online before they will see it in person, so it is important that you have great quality pictures of your home on the Multiple Listing Service and on the internet. This is the first impression buyers will have of your home. If the pictures are not excellent, they may not even want to see your house. This is also the reason having your house show at its best is important. When they show up, you want them falling in love with your property. As the saying goes, you want your house to “sell itself.”
The second thing buyers must be excited about is the price. If they love your house, but feel like the price is high, they emotionally put up resistance to liking your house because of the price. This is the last thing you want. First, because it may cause them to not make an offer at all. And second, because even if they do decide to make an offer on the property, it causes them to be hesitant. They tend to think about it longer and look extra hard at other properties on the market (your competition) because they’re trying to find a way out of liking your house. The result is offers do not come in as quickly, and some will not come in at all.
On the other hand, when your property looks awesome AND your price is attractive to buyers, they flock to your property like moths to a flame. Best of all they come to see it wanting to fall in love with it…looking for every reason to justify why they should do whatever it takes to get that house. Now, your house is “THE BUZZ.” In any market, the best way to get top dollar for any house is to hit the market with a price that stimulates demand for that house. The result is the most interest, the most traffic, and the most offers, which (when coupled with the right negotiator) will always result in the highest price.
When a home is over-priced it actually ends up selling for less, because it sits on the market too long and becomes stagnant. And then, after weeks and weeks on the market the “WWWTH” Syndrome kicks in….”What’s Wrong With That House?”
You want someone who will fall in love with your house, because that is the buyer who will pay the most for it. The irony is that pricing it high will actually KEEP buyers from falling in love with your house.
Here are 3 Common Myths about Selling for Top Dollar:
MYTH: If a home gets an offer quickly it was probably priced too low
REALITY: The day your home goes on the market, there are already qualified, motivated buyers in the market whose criteria matches your home. Often these are buyers who have already made offers on other homes and got beat out by a competing offer, so when your home hits the market there are often multiple buyers interested in your home. And when it’s priced and marketed correctly, these buyers will act quickly because they don’t want to risk losing the house to another buyer.
MYTH: If we are willing to wait long enough we’ll get more for our home.
REALITY: There is a correlation between time on the market and the property getting top value, but not the correlation many sellers think. Generally, the longer it takes, the less the seller makes. Why? Because of the “WWWTH Syndrome” (“What’s Wrong With That House”). If a property has been on the market for an extended period of time, buyers begin to wonder why no one has bought that house. The result is often lower offers or no offer at all.
MYTH: I will just wait until the right buyer comes along who is willing to pay the price I want for my home.
REALITY: It is statistically proven that the longer a house sits on the market the lower the offers it will generate, whether it has price reductions or not. When new buyers come into the market, they want the fresh inventory, not the stale listings that all the previous buyers have rejected. Your home becomes a “been there, done that” property on the MLS, making agents and buyers much more likely to submit low offers, or even worse, pass over it completely.
As you can see, pricing your home right from the beginning is simply the best pricing strategy to get the most interest fast, the best offers, and consequently the best price and terms having a competent professional real estate agent help you determine the price is in your best interest.
REALITY: The day your home goes on the market, there are already qualified, motivated buyers in the market whose criteria matches your home. Often these are buyers who have already made offers on other homes and got beat out by a competing offer, so when your home hits the market there are often multiple buyers interested in your home. And when it’s priced and marketed correctly, these buyers will act quickly because they don’t want to risk losing the house to another buyer.
MYTH: If we are willing to wait long enough we’ll get more for our home.
REALITY: There is a correlation between time on the market and the property getting top value, but not the correlation many sellers think. Generally, the longer it takes, the less the seller makes. Why? Because of the “WWWTH Syndrome” (“What’s Wrong With That House”). If a property has been on the market for an extended period of time, buyers begin to wonder why no one has bought that house. The result is often lower offers or no offer at all.
MYTH: I will just wait until the right buyer comes along who is willing to pay the price I want for my home.
REALITY: It is statistically proven that the longer a house sits on the market the lower the offers it will generate, whether it has price reductions or not. When new buyers come into the market, they want the fresh inventory, not the stale listings that all the previous buyers have rejected. Your home becomes a “been there, done that” property on the MLS, making agents and buyers much more likely to submit low offers, or even worse, pass over it completely.
As you can see, pricing your home right from the beginning is simply the best pricing strategy to get the most interest fast, the best offers, and consequently the best price and terms having a competent professional real estate agent help you determine the price is in your best interest.
10. The Deal: Skilled 3rd Party Negotiation
Of all ten strategies for getting top dollar for your property, the the most important and usually the most under-rated is using a professional real estate agent.
It’s important to remember that IF TOP-DOLLAR is your goal, choosing the right agent has to be made as a business decision, not as a personal decision just because you know someone. The key here is simply to keep in mind your ultimate goal of getting top dollar for your house.
Some sellers wonder whether hiring an agent justifies the commission you pay. Think about it this way. There is a reason that highly-paid celebrities and professional athletes virtually never negotiate their own contracts in their respective fields. Just like in a real estate transaction, they use “agents,” because they know and understand the value and leverage of having a skilled third-party negotiator representing them.
Having a third party negotiator has several significant advantages. First, they have knowledge and skills that enable them to negotiate from a stronger position. Second, they are more objective and can keep emotions out of the equation. Third, they provide a communication buffer between the parties that allows you to respond more strategically.
However, an agent who does not understand the importance of skilled negotiating, can be more of a liability than an asset when it comes to getting top-dollar. In fact, in terms of value, an agent’s negotiating skill and understanding of how to close a transaction seamlessly is more critical to your bottom line than their “marketing plan.”
With the first communication from the buyer or buyer’s agent, the negotiations have already begun.
Imagine, you get the call from your broker or agent. Hurray! We have an offer! Or even better, you have multiple offers! What happens next? This is where it pays to have an agent that understands negotiating strategy.
Do they understand how to represent you and the value of your home well when a potential buyer or buyer agent asks, “Will the seller take less?” or “How much flexibility does the seller have on their price?” An agent skilled in negotiation will know how to answer that question simply and honestly in a way that does not give away one dime of your equity, AND at the same time does not make the other party feel like they are being stonewalled.
For example a skilled answer will sound something like this, “That’s a great question. The sellers are very comfortable with their price, and if you’ve seen the recent, comparable sales, then I’m sure you’re already aware that the house is priced very well… Have you (your buyers) seen the property yet?” Notice the response does two things. First, it answers the questions in an effective way. Second, it turns the conversation towards the buyers’ situation. Being a skilled agent I will leverage this conversation to gather information about the buyers and their qualifications and motivation not to posture in a way that pits buyer against seller. That only creates resistance and will be ineffective at securing the best result for you.
Being a highly motivated seller is a plus, not a negative, IF (and this is a big “IF”) you or your agent knows how to communicate that you are motivated without compromising the value of your property. The secret here is that an extremely motivated seller, when properly positioned, can almost create a feeding frenzy mentality with buyers. This is what you want. Some sellers mistakenly believe it is best to act like they are not really that motivated at all. Playing “hard to get” is a fine line. A strong negotiator can communicate high motivation without giving the impression of desperation. That’s what you want…motivation, not desperation.
These are not skills that the all real estate agents possess. One of the mistakes many sellers make is hiring an agent simply because they are family friends or relatives (or even worse someone they just met, because they’re cheap). While any of those reasons may have some advantage for you, the real question you need to ask yourself is do they have the knowledge and skill to effectively represent your best interest in a complex and large transaction.
When you put your home on the market, you are selling one of your most valuable assets, right? Don’t go cheap. There are times when it’s OK to cut corners, and there are times when it pays to invest in quality. We’ve all heard the saying, “You get what you pay for.” When it comes to hiring skill, you definitely get what you pay for. Every agent has the same state-issued license, but they most definitely do not have the same skill level to get YOU the best result.
An unskilled agent can cost you tens of thousands of dollars of your valuable equity by not knowing how to position your property to get the best offers or how to negotiate the price and terms in a way that protects your hard-earned equity. And the worst part of it is that you will never know how much hiring that agent really cost you.
A skilled negotiator makes everything sound easy and communicates confidence and is a competent professional who knows how to deliver results. And when you find that person, not only will they protect your equity and maximize your cash, they will make the process much less stressful for you.
Of all ten strategies for getting top dollar for your property, the the most important and usually the most under-rated is using a professional real estate agent.
It’s important to remember that IF TOP-DOLLAR is your goal, choosing the right agent has to be made as a business decision, not as a personal decision just because you know someone. The key here is simply to keep in mind your ultimate goal of getting top dollar for your house.
Some sellers wonder whether hiring an agent justifies the commission you pay. Think about it this way. There is a reason that highly-paid celebrities and professional athletes virtually never negotiate their own contracts in their respective fields. Just like in a real estate transaction, they use “agents,” because they know and understand the value and leverage of having a skilled third-party negotiator representing them.
Having a third party negotiator has several significant advantages. First, they have knowledge and skills that enable them to negotiate from a stronger position. Second, they are more objective and can keep emotions out of the equation. Third, they provide a communication buffer between the parties that allows you to respond more strategically.
However, an agent who does not understand the importance of skilled negotiating, can be more of a liability than an asset when it comes to getting top-dollar. In fact, in terms of value, an agent’s negotiating skill and understanding of how to close a transaction seamlessly is more critical to your bottom line than their “marketing plan.”
With the first communication from the buyer or buyer’s agent, the negotiations have already begun.
Imagine, you get the call from your broker or agent. Hurray! We have an offer! Or even better, you have multiple offers! What happens next? This is where it pays to have an agent that understands negotiating strategy.
Do they understand how to represent you and the value of your home well when a potential buyer or buyer agent asks, “Will the seller take less?” or “How much flexibility does the seller have on their price?” An agent skilled in negotiation will know how to answer that question simply and honestly in a way that does not give away one dime of your equity, AND at the same time does not make the other party feel like they are being stonewalled.
For example a skilled answer will sound something like this, “That’s a great question. The sellers are very comfortable with their price, and if you’ve seen the recent, comparable sales, then I’m sure you’re already aware that the house is priced very well… Have you (your buyers) seen the property yet?” Notice the response does two things. First, it answers the questions in an effective way. Second, it turns the conversation towards the buyers’ situation. Being a skilled agent I will leverage this conversation to gather information about the buyers and their qualifications and motivation not to posture in a way that pits buyer against seller. That only creates resistance and will be ineffective at securing the best result for you.
Being a highly motivated seller is a plus, not a negative, IF (and this is a big “IF”) you or your agent knows how to communicate that you are motivated without compromising the value of your property. The secret here is that an extremely motivated seller, when properly positioned, can almost create a feeding frenzy mentality with buyers. This is what you want. Some sellers mistakenly believe it is best to act like they are not really that motivated at all. Playing “hard to get” is a fine line. A strong negotiator can communicate high motivation without giving the impression of desperation. That’s what you want…motivation, not desperation.
These are not skills that the all real estate agents possess. One of the mistakes many sellers make is hiring an agent simply because they are family friends or relatives (or even worse someone they just met, because they’re cheap). While any of those reasons may have some advantage for you, the real question you need to ask yourself is do they have the knowledge and skill to effectively represent your best interest in a complex and large transaction.
When you put your home on the market, you are selling one of your most valuable assets, right? Don’t go cheap. There are times when it’s OK to cut corners, and there are times when it pays to invest in quality. We’ve all heard the saying, “You get what you pay for.” When it comes to hiring skill, you definitely get what you pay for. Every agent has the same state-issued license, but they most definitely do not have the same skill level to get YOU the best result.
An unskilled agent can cost you tens of thousands of dollars of your valuable equity by not knowing how to position your property to get the best offers or how to negotiate the price and terms in a way that protects your hard-earned equity. And the worst part of it is that you will never know how much hiring that agent really cost you.
A skilled negotiator makes everything sound easy and communicates confidence and is a competent professional who knows how to deliver results. And when you find that person, not only will they protect your equity and maximize your cash, they will make the process much less stressful for you.
