Home Seller Seminar

IntroductionIntroductionFor nearly two years the news media has For nearly two years the news media has

been scaring us about the terrible real estate been scaring us about the terrible real estate

market. market.

While the market has While the market has ““shiftedshifted”” people have people have

continued to successfully buy and sell. continued to successfully buy and sell.

The aim of this presentation is to help you The aim of this presentation is to help you

understand how you too can successfully sell understand how you too can successfully sell

a home in this market. a home in this market.

Phil Hutsler 314-440-1507

The Hutsler Family Team [email protected]

Keller Williams Realty www.HutslerTeam.com

OverviewOverviewToday weToday we’’ll talk about some ll talk about some

common fears and helpful facts common fears and helpful facts

about selling a home.about selling a home.

WeWe’’ll also discuss eight simple ll also discuss eight simple

steps to successful home sales.steps to successful home sales.




Fears and Facts About Selling Fears and Facts About Selling

a Home in Todaya Home in Today’’s Markets Market

Fear: I canFear: I can’’t afford to sell my home right now.t afford to sell my home right now.

Fact: Actually, homes are still selling in this market.Fact: Actually, homes are still selling in this market.

BREAKING NEWS!!!!! BREAKING NEWS!!!!!

$8,000 TAX CREDIT FOR FIRST$8,000 TAX CREDIT FOR FIRST--TIME TIME

BUYERS! BUYERS!




$8,000$8,000 Tax Credit for FirstTax Credit for First--

Time BuyersTime BuyersTo stimulate the economy, Congress has passed a To stimulate the economy, Congress has passed a

tax credit of up to tax credit of up to $8,000$8,000 for firstfor first--time buyers. time buyers.

The Buyer of your home may be a First Time The Buyer of your home may be a First Time

Buyer or have sold to a First Time Buyer. The Buyer or have sold to a First Time Buyer. The

first time Buyers are driving the market.first time Buyers are driving the market.





a Homea HomeFear: I should wait until the real estate market Fear: I should wait until the real estate market

gets gets betterbetter..

Fact: If you are selling and buying, whatever is Fact: If you are selling and buying, whatever is happening to your homehappening to your home’’s value is also s value is also happening to your next homes value.happening to your next homes value.





a Homea HomeFear: I donFear: I don’’t want to give my house away.t want to give my house away.

Fact: Real Estate markets go up and down, but Fact: Real Estate markets go up and down, but overall the value of Real Estate goes up over overall the value of Real Estate goes up over

time. Ittime. It’’s possible that your home may be s possible that your home may be worth more than you think.worth more than you think.





a Homea HomeFear: I canFear: I can’’t afford to buy my dream home.t afford to buy my dream home.

Fact: The best way to get closer to buying Fact: The best way to get closer to buying

your dream home is to sell your current your dream home is to sell your current

home and move up.home and move up.




Seven Steps to a Successful Seven Steps to a Successful

Home SaleHome Sale1. Decide to sell.1. Decide to sell.

2. Hire your agent.2. Hire your agent.

3. Prepare your home for sale.3. Prepare your home for sale.

4. Monitor and take action based on the Market4. Monitor and take action based on the Market

5. Negotiate & Accept offer.5. Negotiate & Accept offer.

6. Perform contractual requirements.6. Perform contractual requirements.

7. Close.7. Close.




Decide to SellDecide to Sell

��Successful Sellers have a compelling reason to Sell.Successful Sellers have a compelling reason to Sell.

��Whether itWhether it’’s to move to a new city, new school district, s to move to a new city, new school district,

bigger home or retirement home, your reasons will be your bigger home or retirement home, your reasons will be your

own. own.

�� Without a compelling reason, your chances of a Without a compelling reason, your chances of a

successful sale diminish radically.successful sale diminish radically.




Decide to SellDecide to Sell��A home is the largest financial asset most people A home is the largest financial asset most people

have due to equity and appreciation over time. have due to equity and appreciation over time. ��Average annual appreciation rate nationally is Average annual appreciation rate nationally is 5 to 6 percent5 to 6 percent

since 1977. since 1977. ((Note: Note: LocalLocal appreciation rates vary greatlyappreciation rates vary greatly.).)

��At At 3%3% annual appreciation, a home purchased for $150,000 annual appreciation, a home purchased for $150,000 would grow to would grow to $364,000$364,000 in 30 years.in 30 years.

��Even at Even at 1.5%1.5% annual appreciation, this same home would still annual appreciation, this same home would still grow to grow to $234,462$234,462 in 30 years.in 30 years.




Decide to SellDecide to Sell��Selling your home is an emotional decisionSelling your home is an emotional decision

““Home is where the heart is.Home is where the heart is.””��A home represents your personal tastes and provides a A home represents your personal tastes and provides a

haven of stability and security for both you and haven of stability and security for both you and your loved ones.your loved ones.

��Provides a pride of home ownership, because itProvides a pride of home ownership, because it’’s s yours.yours.

�� YouYou’’ve made investments to improve and protect your ve made investments to improve and protect your homehome





ItIt’’s also a rational decisions also a rational decision““Home is where your wealth is.Home is where your wealth is.””

��YouYou’’ve grown wealth via equity buildup, debt pay down, ve grown wealth via equity buildup, debt pay down, and value appreciation.and value appreciation.

��In the United States, you can take advantage of taxIn the United States, you can take advantage of tax--deductible benefits such as property tax and mortgage deductible benefits such as property tax and mortgage interest writeinterest write--offs.offs.





““Home is Where Your Wealth IsHome is Where Your Wealth Is””

Appreciation ExampleAppreciation Example

A $100,000 home appreciating at 3%/yr gains A $100,000 home appreciating at 3%/yr gains value at approximately $3,000/yrvalue at approximately $3,000/yr

A $200,000 home appreciating at the same A $200,000 home appreciating at the same rate gains value at approximately $6,000/yrrate gains value at approximately $6,000/yr




Decide to SellDecide to SellPeople have many reasons to move;People have many reasons to move;

��A larger more comfortable homeA larger more comfortable home

�� A smaller easier to care for homeA smaller easier to care for home

��A better school districtA better school district

�� Move closer to work or work from homeMove closer to work or work from home

�� A job relocationA job relocation

Your reasons will be your ownYour reasons will be your own




Decide to SellDecide to SellA BuyerA Buyer’’s Market is a Trading Up Market!s Market is a Trading Up Market!

If home prices dropped by 5%, hereIf home prices dropped by 5%, here’’s what it could look like if you decided to trade up:s what it could look like if you decided to trade up:

Home Price = $200,000Home Price = $200,000 Home Price = $400,000Home Price = $400,000

Sell at $190,000 = $10,000 lossSell at $190,000 = $10,000 loss Buy at $380,000 = $20,000 SavingsBuy at $380,000 = $20,000 Savings

The smaller loss at sale will be more than compensated by greateThe smaller loss at sale will be more than compensated by greater savings at r savings at purchase, resulting in a net gain.purchase, resulting in a net gain.

Just as important is when the market turns around, as it always Just as important is when the market turns around, as it always does, the higher does, the higher priced home should appreciate at a similar rate and result in evpriced home should appreciate at a similar rate and result in even more gain.en more gain.




Hire Your AgentHire Your AgentReal estate agents perform 9 main roles:Real estate agents perform 9 main roles:

1.1. Educate you about the marketEducate you about the market

2.2. Analyze your wants and needsAnalyze your wants and needs

3.3. Assist you in pricing your home for a successful saleAssist you in pricing your home for a successful sale

4.4. Market your home where the most buyers will find it.Market your home where the most buyers will find it.

5.5. Coordinate the work of other needed professionalsCoordinate the work of other needed professionals

6.6. Help you prepare your home for saleHelp you prepare your home for sale

7.7. Negotiate on your behalfNegotiate on your behalf

8.8. Review paperwork and deadlinesReview paperwork and deadlines

9.9. Solve any problems that may ariseSolve any problems that may arise




Hire Your AgentHire Your AgentEducate you about the MarketEducate you about the Market

Your agent should be able to tell you:Your agent should be able to tell you:

�� The median sale price for your neighborhoodThe median sale price for your neighborhood

�� The direction your local market is movingThe direction your local market is moving�� The The AbsorbtionAbsorbtion rate for your neighborhoodrate for your neighborhood

�� The Historic appreciation rateThe Historic appreciation rate




Hire Your AgentHire Your AgentIdentify your wants and needsIdentify your wants and needs

Your agent should ask you;Your agent should ask you;

��Why do you want to or need to moveWhy do you want to or need to move

��Where are you moving toWhere are you moving to

��When do you need to be thereWhen do you need to be there

��Do you need help with buying your next homeDo you need help with buying your next home




Hire Your AgentHire Your AgentAssist you in pricing your home effectivelyAssist you in pricing your home effectively

Pricing Strategically is Critical!Pricing Strategically is Critical!

The internet has changed the market, most buyers looking for a hThe internet has changed the market, most buyers looking for a home ome like yours are aware of your property within 48hrs!like yours are aware of your property within 48hrs!

A home that is priced right for itA home that is priced right for it’’s condition is typically under contract in s condition is typically under contract in less than 30 days!less than 30 days!

The first 3 weeks are the most The first 3 weeks are the most important.important.




Hire Your AgentHire Your AgentPricing Your HomePricing Your Home

The Dangers of overpricing:The Dangers of overpricing:

�� A home that is more than 10% above what a buyer will pay, will NA home that is more than 10% above what a buyer will pay, will NOT even OT even show up in the buyershow up in the buyer’’s search. s search.

�� A home that is 8 to 10% above what a buyer will pay will NOT be A home that is 8 to 10% above what a buyer will pay will NOT be shown. shown.

�� A home that is more than 5% above what a buyer will pay usually A home that is more than 5% above what a buyer will pay usually will NOT will NOT get an offer. get an offer.

�� Homes that look like a Homes that look like a ““DealDeal”” to the buyer will often get competing offers.to the buyer will often get competing offers.




Hire Your AgentHire Your Agent

Get the Right Price!Get the Right Price!

The Tale of Two Markets: NoThe Tale of Two Markets: No--ManMan’’s Lands Land




Hire Your Agent : PricingHire Your Agent : Pricing




Selling Price Vs. TimingSelling Price Vs. Timing

WEEKS ON MARKET

A

C

T

I

V

I

T

Y

1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17

�Timing is extremely important in the real estate market.�A property attracts the most activity from the real estate community and potential buyers when it is first listed.�It has the greatest opportunity to sell when it is new to the market.

Hire Your Agent : Market Your HomeHire Your Agent : Market Your Home




Realtor

36%

Internet

24%

Yard Signs

15%

Referrals

7%

Other

> 1%

Knows the

Seller

3%

Home

Builders

7%Advertising

and

Newspaper

6%

The Internet, other Realtors and Yard signs comprise 75% of sources for Buyers

Hire Your Agent : Hire Your Agent :

Market Your HomeMarket Your Home




The Internet is the fastest growing source for buyers while print media and other sources continue to shrink, Your agent should have a comprehensive plan for using the Internet to attract

Buyers to your home.


Market Your HomeMarket Your Home




20%

80%

Exposure

Price

80% is of it is how your home is priced

20% is how your home is exposed to the market.

No matter how well your home is Marketed, if it isn’t priced correctly, it won’t sell.

Hire Your Agent : Hire Your Agent : Coordinate the Work of other Needed ProfessionalsCoordinate the Work of other Needed Professionals




From beginning to closing, your Agent is like the conductor of a symphony. Your Agent has relationships with teams of

professionals from stagers & decorators to service technicians, handymen, building inspectors, title

professionals and lenders to help you get to closing with the most money, in the shortest time and with the least amount

of hassle.


Help you Prepare your home for saleHelp you Prepare your home for sale




Today making a great first impression is critical.

A freshly painted home with new carpet, which has been de-cluttered and properly staged will sell for more money in less time. The cost of

staging will be substantially less than your first price reduction.

With Buyers shopping on the Internet, quality photos have never been more important. While a properly priced home will generate interest, a

properly staged and prepared home will generate offers.

Your professional, full time agent will help you make these important choices and connect you with the professionals who can help.


Negotiate on Your BehalfNegotiate on Your Behalf




When you sell your home, you are probably selling your most valuable asset. Realtors are skilled, practiced negotiators. When you hire a professional, full time agent, you’ve really hired someone to protect the value of that asset.

Research shows that people who try to sell their home themselves net on average 17% less than those that use a Realtor. A large portion of that difference is their ability to negotiate you the best possible price, terms and conditions for the sale of your home; price, terms andconditions that meet your wants and needs.


Review paperwork and deadlinesReview paperwork and deadlines




A real estate contract has a number of obligations for both Seller and Buyer. Your Agent should be aware of all deadlines and required paperwork to help you get through the process with your desired outcome.


Review paperwork and deadlinesReview paperwork and deadlines




A real estate transaction is fraught with possible “problems”. There is always “turbulence”. Your professional, full time Realtor has the experience to foresee and avoid most of this “turbulence” much as an airline captain does with his airplane. When such problems aren’t avoidable, your agent will offer you options, suggestions or recommendations for solutions.


Solve Any Problems That AriseSolve Any Problems That Arise




A real estate transaction is fraught with possible “problems”. There is always “turbulence”. Your professional, full time Realtor has the experience to foresee and avoid most of this “turbulence” much as an airline captain does with his airplane. When such problems aren’t avoidable, your agent will offer you options, suggestions or recommendations for solutions.

Prepare Your Home for SalePrepare Your Home for Sale




Before you put your home on the market today, it is imperative that it “puts it’s best foot forward”. Use this time wisely;

� Put anything you won’t need for the next 90 days in storage

�Have all living space repainted a warm, neutral color

�Replace all carpet more than 2-3 yrs old.

�Consult a professional stager/decorator

�Have a pre-inspection done by an ASHI certified Building inspector

�Make repairs recommended by the Inspector

�Gather all warranties for appliances etc.

�Create outstanding curb appeal. Cut grass, clean or paint exterior surfaces, plant fresh flowers if weather allows.

Prepare Your Home for Sale; cont. Prepare Your Home for Sale; cont.




�Unfinished spaces like garages, basements or attics need to be neat, clean and organized.

�A one or two year history of utility bills may set a move up buyer or first time buyer’s mind at ease.

�Collect any documentation on neighborhood restrictions, updates to home, termite treatments or repairs.

�Pretend you were buying your home, what would you want to know about it? Be prepared to answer those questions for the Buyer.

�Supply a recent property survey if one is available.

Monitor & Take Action Based on the Monitor & Take Action Based on the

Market Market

A Properly Priced and Well Prepared Home will sell A Properly Priced and Well Prepared Home will sell quickly. Your Agent will constantly monitor the quickly. Your Agent will constantly monitor the market activity for your home. A rule of thumb; if market activity for your home. A rule of thumb; if your home is not under contract within 30 days, your home is not under contract within 30 days, the price is probably too high and probably at least the price is probably too high and probably at least 5% too high. The Market is constantly moving and 5% too high. The Market is constantly moving and MUST be watched, delaying a price reduction in a MUST be watched, delaying a price reduction in a

BuyerBuyer’’s market ALWAYS costs money! s market ALWAYS costs money!




Negotiate OfferNegotiate OfferWhen your home is priced correctly, it attracts offers.When your home is priced correctly, it attracts offers.

Another rule of thumb;Another rule of thumb;

Your first offer is almost always your best! In a BuyerYour first offer is almost always your best! In a Buyer’’s s Market, time is your enemy. Many Sellers have made the Market, time is your enemy. Many Sellers have made the mistake of rejecting out of hand their first offer only to take mistake of rejecting out of hand their first offer only to take

a much lower offer many months later. a much lower offer many months later.

ThereThere’’s good in every offer, you need an offer before you can s good in every offer, you need an offer before you can negotiate.negotiate.




Perform Contractual Perform Contractual

RequirementsRequirementsA Real Estate Contract has built in obligations for all A Real Estate Contract has built in obligations for all

parties. Your agent will consult with you on your parties. Your agent will consult with you on your

obligations, time frames etc. If youobligations, time frames etc. If you’’ve prepared ve prepared

well for the sale, made most or all major repairs well for the sale, made most or all major repairs

and provided most of the anticipated information and provided most of the anticipated information

to the Buyer in advance, things can go very to the Buyer in advance, things can go very

smoothly from here on. smoothly from here on.




Close the Sale!Close the Sale!HereHere’’s your ultimate goal. s your ultimate goal.

Your agent has coordinated with the title company and the Your agent has coordinated with the title company and the

BuyerBuyer’’s agent to schedule an appointment to sign s agent to schedule an appointment to sign

documents and close the sale. Once all documents have documents and close the sale. Once all documents have

been signed and verified, you will receive any funds due been signed and verified, you will receive any funds due

you and the title to the property will transfer ownership to you and the title to the property will transfer ownership to

the buyers. If you are buying another home and using the buyers. If you are buying another home and using

those funds, they will be available for your purchase at this those funds, they will be available for your purchase at this

time. time.

Congratulations! YouCongratulations! You’’ve successfully reached your Goal! ve successfully reached your Goal!




Home Seller Seminar

Documents

Transcript of Home Seller Seminar