Selling your home is one of the most important steps in your life. These keys will give you the tools you need to maximize your profits, maintain control, and reduce the stress that comes with the home-selling process.

The Real Estate Market has Changed
Remember not so long ago, when you could make your fortune in real estate? It was nothing then to buy a home, wait a short while, and then sell it at a tidy profit. And then do it all over again. Well, as you know, times have changed. Since markets are constantly fluctuating, real estate markets are unpredictable because of changing prices and interest rates. Therefore, it is now more critical than ever to learn what you need to know to avoid costly seller mistakes in order to sell your home fast and for the most amount of money.

Know Why You’re Selling, and Keep Focused on the End Goal
Selling a home is not for the faint of heart. In fact, it is ranked in the top 5 most stressful things you will endure in your life (next to divorce, death in the family, etc). It is important that you hold on firmly to your reasons for moving during the process, as there is a good chance your resolve will be tested as least once.

The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. What’s more important to you?: the money you walk away with, the length of time your property is on the market, or both? Different goals will dictate different strategies. However, don’t reveal your motivation to anyone else (other than your agent) or they may use it against you at the negotiating table. When asked, simply say that your housing needs have changed. After establishing your reasons for moving, place your focus on where you will be moving to and disconnect yourself emotionally from the home you are selling. This will make it easier on you to prepare your home and maximize your results.

3 REASONS Why a Home Does NOT Sell: 1. Price   2. Condition   3. Marketing

REASON #1: PRICE - Do your homework before setting a price. (In fact, your agent should do this for you). Settling on an offering price shouldn’t be done lightly. Find out what homes in your own and similar neighborhoods have sold for in the past 6-12 months, and research what current homes are listed for. That’s certainly how prospective buyers will assess the worth of your home. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low. Remember that the average buyer is looking at 15-20 homes at the same time they are considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorably with others in the price range you’ve set, you won’t be taken seriously by prospects or agents. As a result, your home will sit on the market for a long time, and with this knowledge new buyers on the market will think there must be something wrong with your home.

“Don’t we have to Start High so we can come down?” “You can go down but you can’t go back up right?” Over the years, we have heard these all before. These and other pricing misconceptions are out there. Truth is, right now sellers in the Wichita area are getting on average 98% of their asking price. This is based on the list price at the time that they received the offer. The good ole days of starting 10-20% high are long gone.

The Importance of Intelligent Pricing
More buyers purchase their properties at market value than above market value. The percentage increases even further when the price drops below market value. Therefore, if you price your property at market value, you are exposing it to a much greater percentage of prospective buyers and you are increasing your changes for a sale. Timing The Market
Timing is extremely important in the real estate market. The above graph illustrates the importance of placing your property on the market at a realistic price and terms from the very beginning. A property attracts the most excitement and interest from the real estate community and potential buyers when it is first listed; therefore, it has the highest chance of a sale when it is new on the market. A drop in price 30-45 days into the listing is almost too late! Many of the first showings will never come back for a second time just because of a price reduction. Price it right on to start, even if it means a small room for negotiation.

Common Misconceptions in Pricing
It is imperative to price your home at fair market value from the beginning of the listing. Often 80% of the effectiveness of marketing is linked to where you price your home. In addition, offers received while new to the market are generally your best offers. Understanding Price “Points” People shop in ranges. People will search for homes via the internet or their agent UP TO nice, easy, round numbers like $140,000 or $150,000. Since there are more potential buyers for a $149,900 listing than a $152,000 listing, the difference in buyer activity and number of showings is phenomenal. Since most buyers will buy the nicest home that they see, you begin to understand why it is imperative to price a home at the upper end of a lower range and be the NICEST home they see! That’s the whole key. Be the nicest home a potential buyer will see. Priced at $149,900 your home will compete with lesser properties such as those price in the low $140’s. Priced at $152,000 your home would have to compete with bigger and nicer homes priced in the upper $150’s. Keep this little tip in mind when pricing your home. It will be critical your overall success.

$50,000 in advertising will not sell an overpriced listing.

REASON #2: CONDITION - Maximize your home’s sales potential. Each year, corporate North America spends billions on product and packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home. You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor. Before showings, clean like you’ve never cleaned before. Pick up, straighten, un-clutter, scrub, scour and dust. Fix everything, no matter how insignificant it may appear. Present your home to get a "wow” response from prospective buyers. Allow the buyers to imagine themselves living in your home. The most decisions to buy a home are based on emotion, not logic. Prospective buyers want to try on your home just like they would a new suit of clothing. If you follow them around pointing out improvements or if your decor is so different that it’s difficult for a buyer to strip it away in his or her mind, you make it difficult for them to feel comfortable enough to imagine themselves as the owner.

10 BASIC RULES TO STAGE YOUR HOME FOR A QUICK SALE!
(Courtesy of Farha Design Group)
• Rule #1 - Place your focus on where you will be moving to and disconnect yourself from the home you are selling. By disconnecting your emotion, it will make it easier on you to prepare your home visually to maximize your results.

• Rule #2 - Focus on rule #1. You will want to de-personalize your home as much as possible. This means removing family photos, and limiting personal objects and accessories that are exclusive to you. It will allow potential home buyers to better visualize your home becoming theirs. Remember, you are moving. Start boxing and packing these items.

• Rule #3 - Focus on rules #1 and #2. While you are packing away your treasured family photos and personal items, you will want to also clear the "clutter". Clutter is not necessarily a negative thing. However, the less you have crammed in closets, drawers, and on the tops of counters the better. Remove magnets from your refrigerator and clean off kitchen counter tops. Clear these items so that the potential home buyer can see just how much space your home actually does have. After all, he or she will be purchasing an empty home, not your belongings.

• Rule #4 - When considering home improvements to assist in the sale of your home; think subtle changes with minimal expense to you. Be prepared however to spend a little money. Just know what to spend it on. Painting, minor repairs, carpet cleaning, rent for a storage unit to place your excess belongings in "away" from the house. These are nominal expenses that can create a great return on investment.

• Rule #5 - Painting. Neutral, neutral, neutral! What you need to remember here is that your choice in paint colors however great they may be will not necessarily appeal to everyone. Additionally, a potential buyer wants to be able to visualize his or her own furniture in your house and it is much easier to do that with a neutral color like "buttery tan" not aqua marine blue. Lighter more neutral colors also help the rooms appear brighter and more spacious. Remember, painting is relatively inexpensive yet it can really make a HUGE impact. Avoid and remove wallpaper if at all possible.

• Rule #6 - Sometimes a home can have too much furniture or in some cases too little. You want to make sure your rooms have just the right amount and most importantly in the correct places. That's right; a potential buyer is purchasing your house, not your furniture. However, the way it is displayed is very important. If you have too much, it can make a room look smaller than it actually is. By positioning your furniture correctly, you can actually enhance or even showcase a special feature of the room.

• Rule #7 - Ah the windows. If you have somewhat outdated window treatments or they are dirty and in bad shape, take them down. You can purchase inexpensive blinds that will be new and above all else, clean.

• Rule #8 - Stay with the window theme for a moment. Remember to always turn on all lights, open blinds and draperies during showings and open houses. You want to allow for as much natural light to shine in as possible. This helps to not only brighten the interior of the home, but allows for it to appear more spacious. Don’t make the Buyers fumble around in the dark for light switches; they may be less inclined to stick around for any length of time.

• Rule #9 - The sensitive rule, odors. Most homes have some type of odor. Not all are negative though. If you have household pets, you probably have odors. You may not be able to detect them as your senses are most likely already well adjusted to them. It is recommended that especially during showings and open houses that a mild aroma therapy be in place. This can be as simple as burning a few scented candles or the use of strategically placed potpourri. Even the aroma of freshly baked cookies works well.

• Rule #10 - Don't be afraid to make a few changes in your home. Remember, you have already disconnected your emotions from this house and assigned them to your new home. A little preparation on your part can mean the difference between your home staying on the market too long or you enjoying a relatively quick sale and realizing more money in your pocket.

Before making any improvements to prepare your home for sale, CONSULT A REALTOR OR INTERIOR DESIGN PROFESSIONAL. Many clients of mine over the years have failed to do this, only to find out that the money they spent to improve their home was simply thrown out the window. Imagine spending $7,000 on a kitchen remodel only to discover that you will recoup only about $4,000 of your investment. DO NOT do any major remodeling such as kitchens, baths, vinyl siding, replacement windows, etc without first talking to your Realtor. With such projects you will rarely recoup any more that 50-80% of the money you spend (2005 NAAR Survey).

Whether our clients need a complete makeover or just some subtle changes, the partnership with Farha Design Group has produced amazing results for sellers by helping them sell faster and for more money. Being partners with Farha Design Group we are able to offer our sellers a discounted price. The discounted price is $99 normally $150 for the consultation. Our sellers that use an interior designer use Farha Design Group. The consultation begins with a walk through of the home. The Farha design professional will take notes and make suggestions they think will help make the home sell faster without costing the homeowner too much money. A report is then provided, detailing all suggested changes in a step-by-step and room-by-room format. Typical improvements are: painting walls a color that will appeal to a broad audience, removing/installing window treatments, removing excess furniture/wall hangings/decorative items and rearranging the house to make it appear more spacious. Changes that may not seem that big, Farha says, can turn into a lot more money when the home sells. They estimate that houses with these minor cosmetic improvements can save $5,000, $10,000 or more from being taken off their listing price. We therefore maintain that it is better to spend a little money up front making subtle changes than to have to continue to reduce the listing price of the home several thousand dollars or even worse yet by having to start with a lower than desired asking price. Either way, the market will always dictate the value based on your price/condition offering. Remember your home has to compete with other homes for the hearts and minds of the buyer.

REASON #3: MARKETING - Find a good real estate agent.
Nearly three-quarters of homeowners claim that they wouldn’t use the same realtor who sold their last home. Dissatisfaction boils down to poor communication, not enough feedback, continually lowering your price thus straining relations with your agent. WOW, has the real estate business changed in the last 10 years. In this age of Virtual Tours and cyber-space, it’s amazing that over 86% of all people shop on the INTERNET for real estate (2006 NAAR Survey). This figure was only 2% in 1995! The majority of these internet buyers only went to the top one or two real estate sites. Make sure that your largest asset is given the maximum exposure it deserves. Your agent should give you strong market penetration using advanced and creative marketing methods to find that perfect buyer. Ultimately your success or failure can rest in your REALTOR’s abilities, experience and market savvy. Choose wisely.

“If you think an expert is expensive… wait until you hire an amateur.”

Red Adair
World Famous Oil Field Firefighter

This last part is dedicated to the For Sale By Owner:

Despite what many Realtors will tell you, YOU CAN sell your own home. If all you want to do is sell your own home, you can. Go to Lowe’s buy a sign. It is hard work and it takes longer, but you can do it. But if you want to walk away with the most money, not just sell it yourself: YOU NEED AN AGENT. According to a 2006 national study, Homes listed with a Realtor SOLD for 16% MORE!

Most people don’t have the time or the patience to do it and almost 9 out of 10 For Sale By Owners eventually hire an agent. Of those who did sell their own home, 40% sold to someone they already knew. In 2006, more than half of those interviewed who were able to sell their own home said that they wouldn’t do it again.

So any sane person would have to ask: Nobody does this for fun. Are you sure you want to sell your house yourself, or do you just want to walk away with more money in your pocket?

We all want to save money. I’m the same way. For years, my real estate practice has provided many free services to people who want to sell their own home. I give a Free Home Evaluation which includes a Market Analysis, Strategic Pricing consultation and suggestions for improvements. I also handle contracts and paperwork for both parties for only 1%. Because of these services, I’ve had the opportunity to work with many For Sale By Owner’s first hand. Owners who do sell their own home typically negotiate down too much and give up ALL of the commission they would have saved.

Consider this: On a national average, homes listed by realtors took an average of 4.5 months to close. Homes For Sale By Owner took 7.4 months to close.

Here is the problem: There are over 2,000 Realtors in the Wichita area. An estimated 85% of the buyers in the market have already hired a Realtor to help them find a home. (This service is free to buyers) Buyers who have a BUYER’S AGENT are under contract to use them. That means, if you don’t pay the Buyer’s agent their commission, the buyer has to. That makes dealing with a FSBO a little less attractive to a prospective buyer if you are not cooperating with their Realtor. Most buyers (90%) who respond to ads can not qualify for the homes they call on. We end up selling them a different house other than the one they call on usually. Most buyers that do not use a Realtor are investors looking for a bargain or someone who wants the Owner to carry the note. These buyers are typically trying to save the real estate commission off the price of the home. (Just like the For Sale By Owner) Realtors who have buyers will typically “cooperate” with a For Sale By Owner and sell a home to a buyer of theirs for 3% commission. (Agents get paid 3% by the Listing Agent on any property on the MLS) Because the FSBO is not on the MLS, Agents WON’T EVEN KNOW YOU EXIST unless their buyer specifically asks them about your home! Frankly, even if agents know about your home, MOST don’t want the hassle of dealing with a FSBO. It’s easier to show one of the over 4,500 homes on the market instead. Without being on the MLS, you don’t come up the Realtor “radar.”

What’s the lesson: Hire a Realtor, and you WILL walk away with more MONEY in your pocket. Hire the right Realtor and put A LOT more money in your pocket. (Don’t forget the money you will save in aspirin)

For more information about this article or any of our innovative buyer and seller programs, call Mike Grbic with Mike Grbic Team Realtors, Inc. at Coldwell Banker (316) 684-0000.

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