Step #3: Calculate The NET Proceeds From The Sale Of Your Home.
Here’s a fact you need to understand up front: Never attempt to price your home based on what you “want or need” to net out of the proceeds.
If you spent $40,000 on a remodeling job that will only increase your homes value $30,000, you will lose $10,000. If you paid too much when you bought your home, and need to sell it within a year or two of buying it, chances are (unless your market is hot) you will lose money on your net proceeds.
I’ve seen these sad situations, but there’s little anyone can do about it.
Never Confuse The Difference Between Cost And VALUE
That said, however, you DO need to understand what your net proceeds will be from a sale of your home. And to calculate them, you need to consider five factors.
1. Take the gross listing price of your home.
2. Subtract the amount buyers will discount to arrive at sales price (Step #2 previous post).
3. Subtract your estimated real estate commission.
4. Subtract contingency costs and repairs/personal property stipulated in a contract.
5. Subtract closing costs: appraisals, attorney’s fees, escrow and title fees, etc.
In many cases, the net proceeds can be as much as 10% or more off your listing price. And interestingly, this amount does NOT change even when sellers attempt to sell their homes WITHOUT a REALTOR®.
Guess what the first thing any buyer is going to do with a “For Sale By Owner?” They’re going to knock off the equivalent of the real estate commission you would normally pay anyhow. They hate the fact that you’re trying to pocket that money…and they’re going to fight over it.
Then they’re going to keep discounting based on other home and market criteria.
Before you know it, you’re back at the same place as if you used a professional. Only now, you’ve lost the resources a REALTOR® could have brought to the transaction…negotiation power, important home value information, market power, marketing resources…and much more!
So be careful. There’s a reason why 94% of all For Sale By Owners end up using a professional to market their home…It pays off in the net proceeds!
Step #4: Advertise And Market Your Home For
Maximum Exposure
I want to reveal four marketing secrets that can help you make thousands more profit from your home. And the first one is this…
Purchase Decisions Are Emotional, Not Logical
Think about that. People never buy homes because of logical reasons. If they did, one four bedroom, two bath home would sell just like any other. But they don’t.
They don’t because people discriminate by nature. One home will always appeal to them over another based on their DESIRES.
They buy homes because of the FEELINGS the home gives them. Nearly everyone buys a home thinking of the LIFESTYLE BENEFITS they’ll get by living there.
Lifestyle benefits are the memories of watching your children play in a safe area. While getting a good education at local schools. Where your home is decorated as an extension of your individual personality. Where you enjoy Sunday dinner with the family, and Thanksgiving reunions.
It’s the place where you relax in your favorite hammock on Saturday afternoon. The place where you can hold summer barbecues under the shade of a beautiful Birch tree.
The place where you finally send your children off to college…and eventually off to live a life of their own.
Your house is NOT going to be evaluated as a “house.”
It will be evaluated for its potential to become a HOME.
So it’s important to recognize and appeal to buyer’s EMOTIONS when marketing your home.
Now, the second marketing secret you need to know about marketing your home is this...
Buyers Are Looking For A Bargain
And looking for a bargain is again, subjective. What one person sees as a bargain, another may see as overpriced.
Nevertheless, you need to “position” your home as “priced right” in the market…another reason to do your homework when pricing your home.
If you price your home right, you can promote it as such. Buyers clearly respond to promotions that state “priced to sell,” “a unique bargain at this price,” “act now, won’t last long at this price.”
And getting as many buyers to respond is your goal, right?
The third marketing secret you need to know about is this…
Buyers Are Attracted To Affordability
Affordability appears the same as a “bargain,” but it’s not…
Affordability relates to how inexpensively someone can live in your home…more to do with FINANCING than anything else.
What have you done to make your home affordable? If you’re selling your home without a real estate agent, are you willing to carry back financing on your purchase price? How EASY will you make it for a buyer to buy your home?
And if you use a REALTOR®, they should put together several financing “packages” with a local mortgage lender. This will make the home appear special, and affordable to buyers.
The fourth and final marketing secret you need to know is this…
The Best Way To Motivate A Sale Is To Create URGENCY
Have you ever noticed the dynamics of a bidding war?
Buyers are scrambling like lunatics to put in the highest offer in order to get the home they desire. But what’s really happening is the bidding war takes on a momentum of its own.
In other words, the mere shortage of the home makes people frantically WANT it. People naturally value what’s in short supply…what they cannot readily have. And what more could a seller want than a bidding war on their home!
But did you know that you can create the very same dynamic with YOUR home?
Anytime you want to increase the value of your home, or the overall demand, CREATE A SHORTAGE.
A shortage can be limited time, limited supply, or limited financing. Anytime you create a limit, you motivate people to act.
Very few real estate agents know about this, yet it’s one of the most important elements of successful marketing.
Successful Marketing Of Your Home Requires
A Complete, Systematic Approach
The four marketing secrets I mentioned above are very important. But to motivate a successful sale, you need to employ a systemized approach to marketing your home. There’s no ONE single method that will automatically make your home sell immediately.
Here’s a checklist of my 28 Point Top Dollar Marketing Plan I employ. You’re welcome to use any of these elements to market your home.
Marketing Plan Elements
1. Submit your home listing for exposure to thousands of active agents in the Multiple Listing Service system.
2. Sign inserted in yard: information submitted to our Appointment Center for showinga.
3. Give you a list of do's and don'ts before your scheduled appointment for photograps of your exterior and interior.
4. Present flyers of your home listing to 1000 of our company's active agents who each day work with interested and capable buyers;
5. Present you with professional advice on presenting your home to show exceptionally well, and sell for the greatest possible price;
6. Place your home on company weekly tour schedule to be examined by agents working with motivated buyers;
7. Promote your home on the internet. You will get exposure of your home in numerous popular websites that consumers use in home searching, as well as my personal website and Keller Williams. com.
8. Create a custom publicity flyers about your home for personal distribution to each active agent in the community;
9. Promote your home on our community Realtor* tour schedule to be examined by over 4,000 active agents;
10. Create a custom flyer of features and lifestyle benefits of your home for use by cooperating agents showing your home;
11. Create a custom "listing book" to be placed in your home for buyers to reference home features, lot, utility, and tax information, neighborhood benefits, schools, shopping, medical, and other buyer benefits;
12. Promote your home to our company agents, local and national.
13. Maximize showing exposure through professional signage;
14. Enhance convenience of buyer viewing by placing home on a keysafe;
15. Promote your home to the public through Open Houses;
16. Promote your home by distributing flyers, brochures, and making personal announcements at real estate board meetings;
17. Educate you and potential buyers on the numerous methods of financing the purchase of your home;
18. Suggest constructive changes to your home to make it more appealing, and a sale more likely, to interested buyers;
19. Send a personalized letter to residents in your neighborhood promoting the features and lifestyle benefits of your home;
20. Personally speak with your neighbors about your home, neighborhood benefits, and their knowledge of potential buyers;
21. Update you on all activity regarding your home with our exclusive Marketing Activity Report.: agent showings, open house attendance, agent tours, sign inquiries, etc. Keep you educated and up-to-date on listing and selling market conditions in your area;
22. Place your home listing in our exclusive Relocation Program national database;
23. Track all home showing agents and public using special sign-in sheets;
24. Follow-up on all agents who have shown your home to answer questions, and further motivate buyer interest;
25. Ensure that any offers from buyers are pre-qualified and capable of closing on the purchase;
26. Represent you in contract negotiations with buyers to help generate the highest selling price for the home;
27. Coordinate escrow, financing, and closing activities on your behalf to ensure a smooth, hassle-free closing;
28. Personally accompany you during closing of your home.
Company Objectives
1. To expose your home to the maximum number of interested and capable buyers;
2. To educate all interested prospects on the unique features and lifestyle benefits your home offers;
3. To help you get the highest possible sales price for your home;
4. To make the listing and sales process easy, convenient, and problem-free for you;
5. To educate and assist you in the most effective ways to present your home for the greatest buyer impression;
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