TOGETHER



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Table of Contents

❖ Home Selling Process

❖ Seller Letter

❖ Current marketing Environment

❖ Pricing a home to sell

❖ Challenging Property Tax Assessments

❖ Sale by owners

❖ Considerations for Selling Your Own Home

❖ Tips on Packing for a Move

❖ 10 Commandments for House Staging

❖ Homework for Seller

Home Selling Process

I have designed this book to assist you with the sale of your home. I understand the many questions and concerns of home sellers & how this information will be helpful throughout the transaction. I assure you that it is my goal to provide you with the most professional & information services available. I am always just a call away when you have questions.

Consultation to analyze needs

Establish a working relationship - sign listing agreement

Prepare your home for sale

Proactive marketing by Kay Jung-----Home Book, Flyers, Office Tour, Open House,

MLS Book, MLS Computer and MLS Members

Contact prospects *** Closing Process

Showings Mortgage Application

Offer received with earnest money Credit Report

Counter Appraisal Verifications

Counter Offer Underwriting

Acceptance of Contract Rejection Conditions

Inspections Loan Approval

See Closing Process *** Attorney

Seller Letter

“One of Many”

I hope you could select me as your Listing Agent to give you a proposal for selling your home.

My company has many tools available for us to use that make it possible for me to sell your home in the least amount of time with the fewest hassles possible. You can rest assured that I will use every tool available to meet your financial needs as well as your schedule for moving.

My 30-days Marketing Plan will cover the most important period of our marketing effort. I want you to know that I will work endlessly to make sure that the plan comes together flawlessly. I will give you “Same day” feedback on every showing whenever possible.

I look forward to meeting with you soon, and we will be ready to market your home immediately.

Current marketing Environment

This is the Market

1. Comparable properties sold in the preceding 12 months ____

2. Properties sold in 12 months = ___ MAR (monthly absorption rate)

3. Comparable properties OTM ( on the market) ____

4. Properties OTM/ MAR ____ Months Supply

Trend Line

• Number of comparable homes sold in the previous 4 months is __

( ) Homes Sold / ( ) Months = ( ) MAR

What are the Odds of selling the property?

( ) MAR (monthly absorption rate) / ( ) OTM

What is the chance of selling the house? ___ %

Pricing a Home to Sell

     The seller sets the price of the home, but ultimately the buyer determines the value. My job is to supply you with facts about what has sold recently and what is for sale now to help you make a decision.

     The common pricing objections frequently heard from sellers, really have no relationship to value. Some of the most common ones are: "Another Agent said it was worth more.", "Our home is nicer than those houses.", and "People always offer less than asking price.". Others include "We can always come down on our price.", "We have to get that much out of our home.", "My neighbor was able to get his price.", "Let's try it at our price for a month or so.", "The buyers can always make an offer.", or "We paid more than that for our home."

     Obstacles to proper pricing include incompetent Agents who will accept a listing at any price the seller puts on it. Sometimes neighbors will lead the seller to believe they got more for their home than they did.

     Inflationary times can cause prices to go up rapidly because of economic factors. Whilerecessionary times will cause prices to go down because of adverse economic conditions.

     Fear of making a mistake in pricing which could lead to losing a significant portion of their equity. Loss of perspective due to the seller being emotionally involved and not necessarily thinking objectively. . A property is worth a value independent of the motivations or needs of the owner.

   Overpricing can cause a myriad of problems in selling a home in a pre-determined period of time. It can reduce sales associates’ activity as well as reduce advertising response from both agents and prospective buyers.

     

Other missed opportunities of overpricing include losing interested buyers, attracting the wrong prospects, eliminating offers, and even helps sell the competing properties by making them look like a bargain.

    When a buyer is enticed to pay too much for a home, overpricing can cause appraisal problems. There must be comparable sales to justify the price.

Lenders want to protect their investment in case they have to foreclose. Overpricing initially extends market time no matter how important the reasons.

  Houses sell quickly and usually for the most money when they are priced property in the beginning.

     Things that don't affect value include your original cost, or the cost to re-build the home today. Your investment in the improvements does not indicate a market value either; they may improve the marketability but not necessarily the price.

     Personal attachment and sentiment make a house a home but they don't determine value. As difficult as it may be, personal feelings must be separated to arrive at a fair market value.

     REALTORS(r) have buyers waiting who have seen what is currently on the market and are waiting for something new to be listed. Most activity will take place in the first 3-4 weeks of a listing.

     The excitement of a new property on the market will create urgency for both buyers and agents to see it as quickly as possible. In many instances the home will receive its highest and best offers during this time.

     After that initial period, the only people to look at it will be new buyers in the marketplace. Careful consideration must be given to positioning the home properly in the first few weeks of the marketing.

    The purest definition of value is what a willing buyer will pay from a willing seller without any undue forces involved. There are different values for specific purposes such as insurance, taxes, or to determine a sales price.

 An appraisal will use two basic approaches to value. The cost approach considers what it will cost to rebuild the home today and depreciate it for its age and condition. However, the more popular approach is market value. This looks at homes similar to the subject that has sold recently.

  Knowing that past performance is important to establishing value, supply and demand of the current homes on the market also play a factor. Many homeowners find it helpful to look at the similar homes currently for sale before putting a price on their home.

Challenging Property Tax Assessments

Many times the assessment is placed on the property in the first part of the year and statements are mailed to property owners with bold printing that says "This is not a bill." Unfortunately, since it doesn't require action, many property owners don't give it the attention it deserves.

     Usually, there is a deadline for the assessment to be challenged. After that time, the property taxes are set for the year.

     Correcting an assessment is a simple matter and doesn't require the services of a specialist. The first step is to discuss it with the assessor's office. Many times clarifications can be made on this initial phone call.

     The next step is to make an appeal to the local board that is set up to hear disagreements. The board is made up of local citizens. Both the taxpayer and the assessor's office will get to tell their reasons for the valuation.

     The property owner should have as much evidence to support the claim as possible. An independent appraisal is an excellent piece of data to have. However, if you have comparables of recent sales with documented facts, it will usually carry as much weight.

     If the property has deteriorated, pictures can be valuable to show its present condition. If the house has deteriorated significantly, or there has been a general drop in prices, this could adversely affect the value. Simply saying the property is too high and you couldn't sell it for that will generally not have much consideration.

     Call for help getting comparable sales or other information to make an appeal.

Sale by Owners

1. Window shoppers are not serious about looking for a home but actually use it as a form of entertainment or as a hobby looking for decorating ideas.

2. Lookers stopping at all hours of day & night to see the house because it is convenient for them can be quite annoying for an owner.

3. Mis-pricing the home can be very costly

4. Inability to qualify buyers

5. Letting strangers in the home

6. Negotiating with buyer

7. Knowing everything that needs to be done

8. Missed opportunities when away from home

9. Buyers wanting the commission savings

10. Buyers who don't like to deal directly with owners

Considerations for Selling Your Own Home

1. The number one reason homeowners try to sell their home themselves is to save the commission.

2. The most commonly incurred problems that homeowners experience are attracting potential buyers, getting the home priced correctly, selling in the anticipated time, and understanding and performing the necessary paperwork.

3. Homeowners find it difficult to handle objections from buyers such as "I want to think it over", "the price is too high", "we don't have enough cash for the down payment and closing costs", and "we've decided to rent for a while longer."

4. Making appointments to show the home are difficult for owners because it takes time away from work on a frequent basis, it conflicts with their personal and social life, the ability to determine lookers from qualified prospects, and the safety factor from "unknown" prospects.

5. Are you available to show the property? One of the difficulties sellers have when trying to sell their own home is being available at all times. It poses problems in that it interrupts work, family, and social schedules.

     When a buyer wants to look at a home, it must be available for them at that time. Most buyers are on some kind of a schedule and they are not flexible enough to look at the home when it is convenient for the Seller.

     The concept is similar to having a store open for business. There may be times when there are no customers in the store and other times, when several customers are in the store at one time.

     Is safety a factor? It may be a sad state of affairs to have to concern yourself with safety in your own home but it is a reality.

     There have been situations where criminals have posed as potential buyers in order to "case" the home to find out what personal belongings would be worth stealing. By asking casual questions of the seller, they can find out when the seller will be gone and whether there is a security system.

     Even more sinister criminals actually assault sellers in the sanctity of their own home.

     While a professional real estate agent is not totally exempt from such tactics, they are better prepared to handle them.

Meeting a prospect at the real estate office where others can see the prospect will discourage them because they can be identified.

Another common requirement some real estate agents make of prospects is to make a copy of their driver's license and keep it on file.

 Who really saves the commission, the seller or the buyer?

 If a buyer has to learn the process of buying on their own, identify the neighborhoods, find the homes, write and negotiate the contract, secure the financing, arrange the inspections, and coordinate the closing, on their own rather than using an agent, don't you think the motivating factor will be to save the commission?

It is going to be hard for both the seller and the buyer to save the commission.   Buyers will need help obtaining financing.

 It would be important to be able to advise buyers what different loan programs are available and where they can be found. A familiarity with the requirements and limitations of these different programs is necessary to help advise the buyers.

   Having a financial software program or a financial calculator can help to make a variety of analyses that can make decision making easy for buyers.

The forms would show a person how much they qualify for, what the tax advantages and investment potential are, and provide a comparison of different loans.

    The real estate professional has a collective of promotional efforts to attract buyers. They include all of their different ads in the paper, all of the different for sale signs, every open house they hold, past customers and clients, company contacts, agent contacts, institutional advertising, referral organizations, Multiple Listing Service, and the Internet.

     

Homeowners without the benefit of a real estate professional are

limited by placing a single ad in the paper, a single for sale sign, and their occasional open house.

 Methods used to purchase a home.

 The majority of buyers, four out of five, purchase their home through a professional real estate agent. In fact, less than one out of ten actually purchase directly from an owner.

    This means that assuming your marketing exposure is as effective as the entire real estate community, your market will only be 10% of the total.

Attracting potential buyers is the number one problem encountered by owners selling their own home.

Tips on Packing for a Move

     1. Use strong containers, in good conditions, which can be sealed with strapping tape. These can be purchased locally from moving companies.

     2. Keep in mind what the box will weigh after it is loaded. Forty to fifty pounds is considered the maximum.

     3. Empty spaces in boxes should be filled with crumpled newspaper or bubble wrap to keep things from shifting in transit.

     4. Books should be stacked on end and generally in smaller boxes than other things due to their weight.

     5. Label each box after packing, first, so that the movers will know which room to put it in and second, to help you to prioritize which ones need to be opened first.

     6. Remove all breakables from drawers before moving furniture.

     7. Don't pack valuables such as jewelry, collections, checks or savings books.

     8. Packing takes longer than you expect, so allow plenty of time. Pack items that aren't frequently used first and unpack them last.

     9. Organization in packing will save you hours of time and frustration in the long run.

     10. Items that are no longer wanted can be donated to charity and you may be eligible for a tax deduction.

10 Commandments for House Staging

1. Thou shall de-clutter the main house, garage, & basement. This includes the removal of unsightly or worn out objects and the removal of excess furnishings & junk.

2. Thou shall thoroughly clean windows inside and outside and repair any broken glass, trim or operating mechanisms.

3. Thou shall thoroughly clean, dust, vacuum, wax & polish everything until the whole house sparkles & smells fresh & clean.

4. Thou shall not mask unpleasant household odors with heavy air fresheners or candles. Eliminate the source of the odor.

5. Thou shall clean and maintain pet areas especially litter boxes.

6. Thou shall clean all vents & replace all filters.

7. Thou shall repair or replace anything that drips, leaks, sticks, squeaks or is broken. This includes gutters, downspouts, garage doors, shutters & siding.

8. Thou shall clean every closet, cabinet and vanity.

9. Thou shall paint, paper, install new flooring or tile & re-carpet if necessary. This should be done in neutral colors and designs.

10. Thou shall trim the lawn, shrubs and trees and repair any lawn bare spots. Also, remove clutter and leaves, if necessary.

ت ت ت ت ت ت ت

To create optimal showing conditions make sure the home is well lighted. Replace any burned out light bulbs. Open draperies or blinds during the day and set the heat or air conditioner so that visitors will be comfortable when visiting.

Nothing substitutes good old fashioned elbow-grease when it comes to preparing your house for sale.

Your Real Estate Agent,

kyungheejung

Homework for seller

“Please have these items ready for our review when we meet to help save you be time and make the process more efficient.”

• Sellers Property Disclosure

• Lead Based Paint Disclosure

• Home Warranty Information

• Loan Information

• Copy of closing documents

• Utility bills for the last year

• Loan Verification Request Form

• Homeowner’s Association Information

• 2 Keys

RALPH WALDO EMERSON

“To Have Succeeded”

To laugh often and love much;

To win the respect of intelligent people

And the affection of children;

To earn the approbation of honest critics and endure the betrayal of false friends; To appreciate beauty; To find the best in others; To give of one’s self; To leave the world a little better, Whether by a healthy child, A garden patch, Or a redeemed social condition; To have played and laughed with enthusiasm And sung with exultation; To know that one life has breathed easier Because you have lived . . . . This is to have succeeded!

How Do You Increase the Odds of the Property Selling?

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MEGA REALTY

Integrity

Experience

Results

2009

TOGETHER

The Agent working for you

Kay Jung ABR, CRS, GRI & Associate Broker

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