1. How to Effectively Market a House
Title Slide
©REALTY EXECUTIVES International, Inc. 2003

2. Marketability Proposal
prepared especially for
Mr. & Mrs. Smith at
123 Easy Street

3. EXECUTIVES Make decisions Make things happen Direct a team to a goal
Understand all facets of the business
Responsible for overall success of project.
Executives are the highest level employees of a company. They make decisions in order to make things happen. Executives direct a team to the goal set by management. Executives understand all facets of the business they are in and they are responsible for the overall success of the project. That is exactly what you’ll get when you hire one of the Realty Executives to handle your next move.
©REALTY EXECUTIVES International, Inc. 2003

4. EXPECT THE BEST The service you receive Closing without surprises
Someone who will listen to you
Someone to represent your interests
Success on your next move.
When you choose Realty Executives, you can expect the best of everything: the service you receive; completing the transaction on time without surprises. You can expect someone who will listen to you and your special needs; someone who will represent your interests the success of their reputation. You can expect success on your next move.
©REALTY EXECUTIVES International, Inc. 2003

5. EXPERIENCE THE DIFFERENCE
EXPERIENCED
EXCELLENCE
EXCLUSIVE
EXCITEMENT
EXCEPTIONAL
EXPERTISE
EXTRAORDINARY
You deserve to experience the REALTY EXECUTIVES difference. You’ll describe it like thousands of satisfied buyers and sellers by using words like Experienced, Excellence, Exclusive, Excitement, Exceptional, Expertise, and Extraordinary.
©REALTY EXECUTIVES International, Inc. 2003

6. Relocation/Referral
Across the country or around the world, take advantage of the REALTY EXECUTIVES experience in buying and selling.
Across the country or around the world, take advantage of the REALTY EXECUTIVES experience in buying and selling.
©REALTY EXECUTIVES International, Inc. 2003

7. The difference between an “agent” and an “EXECUTIVE”?
The difference between “For Sale” and “Sold.”
©REALTY EXECUTIVES International, Inc. 2003

8. Always ready, never presumptive.
My Credentials
30 years in the real estate business.
87% of all property marketed has sold.
Complete customer satisfaction even during difficult transactions.
Operate from a mission, vision & guiding principles business plan.
Always ready, never presumptive.
Even if you are new in the business, your are licensed and members of the local, state, and national association of REALTORS®. If you have designations and degrees, include them. However, don’t put too much stuff on this page.
©REALTY EXECUTIVES International, Inc. 2003

9. Mission & Vision Statements
My mission is to provide a living for my family, save for the future and financial security upon my retirement. I will adhere to my spiritual beliefs without compromise and I will do what is right over what is expedient in all cases. My desire is to serve my customers by the most ethical and honest means possible. I will be a team player and attempt to contribute to the benefit and welfare of the people with whom I associate. I will do my utmost to elevate the profession of Realtor above all other professions.
My vision is to achieve the goals outlined in my six personal objectives. It is my desire to see clearly where I am headed and to follow a road map to attain my goals. I will pursue honest and ethical ways to achieve all activities necessary to obtain my long term objectives and I will execute daily those activities. I will contribute to the community expecting nothing in return. I will do what is ethical and morally right without compromise even if I may suffer financially.

10. Selling Pricing Market Preparation Buying
Ken Durkee
Pricing
Market Preparation
This is a “menu” page that has hyperlinks to different specific areas. On each of the pages in those areas are hyperlinks to return to this page. You access the “return” hyperlink by clicking on the REALTY EXECUTIVES logo in the lower right corner of the slide.
Buying
©REALTY EXECUTIVES International, Inc. 2003

11. Seller
Title Slide
©REALTY EXECUTIVES International, Inc. 2003

12. Initial Interview Familiarize ourselves with the property
Assemble information
Determine seller’s goals & objectives
Explain process of selling
Begin to formulate a marketing plan.
In this initial interview, the first job is to familiarize ourselves with the property and to assemble information that is important to marketing your home. We’ll explore your goals and objectives so that we can determine how to best achieve them. We’ll explain the process of selling a home so you’ll be able to anticipate the different steps along the way. And we’ll start formulating a marketing plan that will end in a successful sale.
Can you tell me how long you’ve owned it? What repairs have you made and what items have you replaced? Is there anything in the home that is not working? What do you like best about the home?
What is your reason for selling? Have you bought another home? Is timing a concern? Do you need to get a certain amount out of the home? What do you think the home is worth?
©REALTY EXECUTIVES International, Inc. 2003

13. House Selling Process Pre-assessment Marketing Mid-assessment Offer
value
agreement
mkt prepartion
Marketing
flyers
tour
MLS-Internet
showings
open houses
follow-up
Mid-assessment
traffic
# showings
offers
Offer
earnest money
negotiation
contract
Inspections
mechanical
structural
pest
This process can be modified to add or remove steps which may or may not be appropriate in your area. First, simply modify or delete the text. Each area has been grouped together, so to add or delete an object, you’ll need to right mouse click on the object and select ungroup. Then, select the object and delete.
Mortgage
appraisal
credit
underwriting
Title
review
binder
policy
Settlement
transfers title
possession
assemble papers
©REALTY EXECUTIVES International, Inc. 2003

14. Inspections Mechanical Structural Pest Pre-market for discovery
Eliminate obstacles that adversely affect buyers
Compare and validate buyer’s inspection.
In most cases, the buyer will perform inspections on the property after a contract has been agreed upon. The inspections will include mechanical, structural, and pest to determine the condition of the property and discover things not disclosed by you, the seller. An excellent way to avoid surprises is for you to have inspections made by an independent inspector prior to putting the home on the market. You’ll be able to make repairs and eliminate obstacles that adversely affect buyers. Another benefit of the pre-inspection is that when the buyer makes his inspections, you’ll have something to compare it to.
©REALTY EXECUTIVES International, Inc. 2003

15. Market Preparation Buyers can’t afford to make repairs or decorate
Buyers over-estimate cost of repairs and decorating
Agents remember the house the way it is when they first see it.
It is actually better for sellers to make any necessary repairs or decorating prior to selling the home because buyers use most of their funds for acquiring the home and will have to live in it’s present condition for some time. Another difficulty that can occur when selling a home in “as is” condition is that buyers will over-estimate the costs to correct the items and expect to be able to deduct that amount from the price. Our experience shows us that you’ll get a higher price in a shorter period of time with a home that is ready to move in.
One more disadvantage in showing a home before the repairs are made is that the agents will remember the home in the condition they first see it. If there are a lot of homes on the market, they may avoid yours because they want to show the “nicest” homes.
©REALTY EXECUTIVES International, Inc. 2003

16. Marketing Plan Comprehensive CMA Multiple Listing Service
REALTY EXECUTIVES yard sign
Multiple Listing Service
Internet exposure
REALTY EXECUTIVES Tour
Color property brochures
Open houses
Alternative financing plans.
Ken Durkee
We’ll tailor a marketing plan for your home that will include a comprehensive comparative marketing plan to price your home accurately, our distinctive REALTY EXECUTIVES yard sign. We’ll place your home in the Multiple Listing Service and on the Internet so that all of the agents will have access to the information as well as buyers searching for a home like yours. We’ll place your home on our REALTY EXECUTIVES tour for agents to preview in case they are working with a buyer who is looking for a home like yours. We’ll produce full color property brochures with multiple pictures to showcase the features of your home. Occasionally, we’ll hold your home open for buyers and to make it easy for other agents to show. We’ll also analyze alternative financing plans to increase the ways a buyer can finance your home.
©REALTY EXECUTIVES International, Inc. 2003

17. Exposure to the Marketplace
Existing Buyers
Best Agents
Neighbors
Centers of Influence
TV & Print Media.
International Marketing
Seller and Buyer Warranty
Our job is not so much to sell your home as it is to get your home sold. That means we need to expose it to the marketplace so the maximum number of people will know about it. This will include the existing buyers currently looking at homes, the Multiple Listing Service, and the Internet. Since a relatively small number of agents are responsible for selling the majority of the homes, we’ll make sure they know about your home. In addition to those, we’ll also notify the neighbors in case they have friends who might want to live in their neighborhoods. And another source that proves successful is to tell some of the key people in our centers of influence who might know someone looking for a home like yours.
©REALTY EXECUTIVES International, Inc. 2003

18. EXPERIENCE THE EXCELLENCE
Ken Durkee
Coins in Fountain.mpeg
Genie.mpeg
Falling Star.mpeg
Just let this movie play and you might want to explain that these are produced for use in a variety of markets.
©REALTY EXECUTIVES International, Inc. 2003

19. Realtor. com
Over 80% of all buyers go online before surfacing in the market.
Some buyers go online up to nine months prior to contacting a Realtor.
More buyers contact a Realtor than seek out a for sale by owner for house hunting.
75% of all people looking for property come to Realtor.com first to seek their next home.
We rise above the norm by placing 6 photos of your home that you select attracting 300% more hits on the site.

20. Websites That Will Show Your Property

21. Seller and Buyer Warranty
Did you know that homes with home warranties sell faster?
Did you also know that usually the seller normally nets more money when the house sells because of a home warranty?
Want to know why?

22. Negotiation Third party effectiveness Increased communication
ne·go·ti·a·tion, noun - A process of discussion intended to reach an agreement.
Third party effectiveness
Increased communication
Avoid conflicts
Negotiating directly with a buyer is one of the most difficult areas of the entire transaction. You don’t want to appear too anxious or you’re liable to leave money on the table. If you are to stayed, you are liable to discourage a serious buyer that might have ended in a sale. A third party negotiator is very effective gradually getting agreement between the two parties separately. This process leads to increased communication and avoid conflicts.
©REALTY EXECUTIVES International, Inc. 2003

23. Mutual Objectives Maximize Value Minimize market time
Eliminate/Avoid difficulties.
We really have mutual objectives. We both want to maximize the value of the home while minimizing the time it is on the market while trying to avoid or totally eliminate difficulties along the way.
©REALTY EXECUTIVES International, Inc. 2003

24. Ken Durkee
We really believe that REALTY EXECUTIVES is “The difference between ‘For Sale’ and ‘Sold.’”
©REALTY EXECUTIVES International, Inc. 2003

25. Pricing
Title Slide
©REALTY EXECUTIVES International, Inc. 2003

26. Pricing Roles Seller sets Price Buyer determines Value
Lender validates
Value
It is important to understand the different roles that the parties play in pricing your home. You, as the seller, sets the price of your home. However, the buyer determines the value by stating how much he is willing to pay. And then, in most cases, there is a loan involved and the Lender validates the value to be sure that they are not loaning more than the property is worth. My role is to present you with objective facts about what has sold in the marketplace and to help you understand how your home compares to them. It’s your role to set the price at a fair market value.
©REALTY EXECUTIVES International, Inc. 2003

27. Determining List Price
Percentage above and below
Fair Market Value ( FMV)
of your asking price, and percentage
of prospects willing to buy.

28. Factors That Affect Value
Comparable sales
# of houses available
Available mortgage money
General economy
Favorable terms.
There are a number of different factors that affect value. The comparable sales show what have actually sold recently near your home. These are facts and are given the most weight in determining a price. The number of homes that are currently on the market can also affect value. If the demand is high and the supply is low, the price can go up. If the demand is low and the supply is high, the price can go down. It is just basic economics.
If mortgage money is in short supply or priced high, it reduces the number of people who can consider your home which will lengthen the time it is on the market and ultimately affect value.
If the general economy is good, people will fee “good” about buying a home. If there are favorable terms, people will be willing to pay more.
©REALTY EXECUTIVES International, Inc. 2003

29. Terms Can Increase Value
Seller carries a 1st lien below market rate
Seller carries a 2nd lien for buyer to avoid PMI
Temporary buy-down
Seller paid points
Subsidize buyer’s costs
Make specific improvement required by the buyer
Include a decorating allowance.
If the seller was willing to carry a 1st lien below the current market rates, a buyer might be willing to pay more for the home because his payments would be less.
If you are willing to carry a second lien for 10% of the sales price, the buyer could put 10% down and get an 80% loan. This would allow the buyer to avoid Private Mortgage Insurance which would save money needed to close (as much as 1% of the loan) and the renewal on the PMI which is about ¼% per month. Would you be willing to do that?
A seller can contribute a subsidy in cash at time of closing that would give the buyer lower payments in the first two or three years of their loan. Typically, this is more appropriate in lower priced homes.
If the seller is willing to pay points in order for a buyer to get a lower interest rate mortgage, they may be willing to pay more for the home.
If the seller is willing to pay part or all of the buyer’s closing costs, they could get in the home for less “out of pocket” cash. The home would appeal to more buyers and they might pay more for the home than if a seller wasn’t willing to help with their closing costs.
Another option might be for the seller to buy something for the home, like new carpet, and include it in the price of the home. The buyer would feel like the home was worth more to them if they could pick out the carpet of their choice. Or you could just give the buyer a decorating allowance to be spent any way they want. This needs to be approved by the lender.
©REALTY EXECUTIVES International, Inc. 2003

30. Factors That Don’t Affect Value
What you paid for the house
The cost to rebuild it today
Your investment in the improvements
Certain types of improvements.
However, there are some things that just don’t affect value at all. For instance, what you paid for the home is irrelevant to today’s market. Just because you might have overpaid for a home doesn’t mean that the new buyer needs to. The market conditions may have changed.
You may have invested in certain types of improvements for our own personal enjoyment that has little or no value to the buyer. Sometimes, an owner will make improvements with the highest of quality items that are not justified by the price of the home. They just won’t increase the value.
©REALTY EXECUTIVES International, Inc. 2003

31. Expressions that do not affect sales price:
“Another agent said it was worth more”
“Our house is nicer than those houses”
“People always offer less than asking”
“We can always come down on price”
“We have to get that much out of it”
“We paid more than that for our house.”
Selling a home is an emotional exercise and sometimes things are said that just aren’t rational or true. Don’t get caught saying things like this in order to try and get more money for your home:
“Another agent said it was worth more” - they have to look at the same comparable we are, how can they justify it with facts?
“Our home is nicer than those houses” – this is a very subjective statement. Most owners always think their home is nicer than the others.
“People always offer less than asking” – By overpricing a home, you actually encourage people to make a lower offer.
“We can always come down on price” – Once a home has been on the market for a while, the public as well as the agents start thinking that something is wrong with it.
“We have to get that much out of it” – Your need for more money is a personal thing and you can’t expect a stranger to want to help you by overpaying for your home.
“We paid more than that for our home.” – It is unfortunate when the market goes down but it does happen. Can you wait years for it to come back up again?
©REALTY EXECUTIVES International, Inc. 2003

32. Obstacles to Proper Pricing
Incompetent agents who will accept any listing at any price
Neighbors who mislead the seller as to how much they got for their house
Fear of making a mistake
Loss of perspective because the seller is emotionally involved
Greed
There are obstacles to proper pricing that need to be avoided if at all possible. There are agents who will accept a listing at any price and then, after you become disappointed that it hasn’t sold, solicit a price reduction. There are neighbors who intentionally mislead other neighbors by letting them think they sold their home for what they were asking for it.
Fear of making the mistake of selling too low will also cause a person to pricing a home too high. They know that if it sells for that price it would be good but they just aren’t certain what the “right” price should be.
We’ve seen sellers who lose the proper prospective because they are emotionally involved and cannot approach the task logically.
No matter how legitimate the need to realize a certain amount from the sale, it will not justify overpricing a home.
©REALTY EXECUTIVES International, Inc. 2003

33. Overpricing Reduces sales associates activity
Reduces marketing response
Loses interested buyers
Attracts the wrong prospects
Eliminates offers
Helps sell the competition
Extends the market time.
Unfortunately, overpricing actually causes some severe outcomes. It reduces sales associates activity because they know it is too high and they don’t want to show it to buyers looking for a different price home. This leads to reduced marketing response; pretty soon, even the buyers in the market know it is overpriced which leads to actually losing buyers who might have bought it but ended up buying something else.
An overpriced home actually attracts the wrong prospects. For instance, a buyer looking in a certain price range expects the home to have certain amenities typical of that price range. When they look at a home that is overpriced, it doesn’t have what they are looking for and therefore, will not consider it. The people who could afford it won’t be looking at it because it is out of their price range. This actually eliminates offers before there is even a chance to negotiate them.
If a home is overpriced, it might be used to make a reasonably priced home look like a good value. This means that your overpriced home is actually helping to sell the competition.
All of these things extend the time needed to sell a home which could lead to another completely different set of problems.
©REALTY EXECUTIVES International, Inc. 2003

34. Appraisal vs. CMA Description Appraisal CMA Estimate of Price Yes
Performed by
Appraiser
Agent
Licensed
Considers past sales
Considers current sales No
An appraisal is an estimate of value determined by a licensed appraiser based on comparable sales of similar properties that have sold and closed.
A CMA, comparative market analysis, is an estimate of value determined by a licensed real estate agent based on comparable sales of similar properties that have sold and closed. It also includes similar properties that are currently on the market that a buyer would be considering when looking at the subject property.
©REALTY EXECUTIVES International, Inc. 2003

35. Market Preparation Title slide
©REALTY EXECUTIVES International, Inc. 2003

36. Kitchen Clear off counters Clean the oven All appliances working
Wax the floor
Fresh grout or caulk
Bright light bulbs
Bake cookies.
©REALTY EXECUTIVES International, Inc. 2003

37. Bedrooms Beds made Clothes put away Windows clean
Window treatments open
Bright light bulbs
Remove unnecessary furniture and items.
©REALTY EXECUTIVES International, Inc. 2003

38. Living Room Carpets clean Windows clean Drapes/shades open
Paint if necessary
Bright light bulbs.
©REALTY EXECUTIVES International, Inc. 2003

39. Closets Lights working Clothes neatly hung Shoes arranged
Shelves orderly
Remove unnecessary items to make closet appear larger.
©REALTY EXECUTIVES International, Inc. 2003

40. Bathrooms Fresh and spotless Countertop clear of clutter
Toilet lid down
Shower curtain clean
Fresh caulking & grout
No leaking faucets
Bright light bulbs.
©REALTY EXECUTIVES International, Inc. 2003

41. Mechanical Heating and air conditioning serviced
All appliances working
Locks and latches operating.
©REALTY EXECUTIVES International, Inc. 2003

42. Garage Store unnecessary items offsite Clean grease from floor
Clean dust and cobwebs
Organize tools and shelves
Adjust garage door to operate smoothly.
©REALTY EXECUTIVES International, Inc. 2003

43. Outdoors Mow & edge lawn Trim trees and shrubs Replace dead plants
Have some blooming plants
Keep driveway, sidewalk, and steps clear.
©REALTY EXECUTIVES International, Inc. 2003

44. When the Property is Shown
Turn all lights on
Open window treatments
Music but no TV
Keep pets out of way
Avoid conversations with the agent or prospects
Try to be gone or out of the way.
©REALTY EXECUTIVES International, Inc. 2003

45. Final Touches
“Our customers will judge the maintenance on our planes by the cleanliness of our tray tables.”
Astronaut Frank Borman while serving as President of Eastern Airlines
Astronaut Frank Borman, when he was President of Eastern Airlines said “Our customers will judge the maintenance on our planes by the cleanliness of our tray tables.” This just means that if a buyer suspects that there are lots of little obvious things wrong with the home that there are also probably major things wrong that they can’t see.
©REALTY EXECUTIVES International, Inc. 2003

46. I would be honored to go to work for you now, would you consider hiring me to market your house?

48. Buyer
Title Slide
©REALTY EXECUTIVES International, Inc. 2003

49. Help Me Help You Have you seen any homes that you like?
Are you working with a broker/agent?
Do you have a home to sell?
If we find the right home, is there anything keeping you from buying it?
Have you been pre- qualified for a loan?
By asking these questions, you’ll discover a lot of valuable information that will help you find the right home for this buyer.
©REALTY EXECUTIVES International, Inc. 2003

50. Home Benefits Pride of ownership Freedom of enjoyment Investment
Property owner
Freedom of enjoyment
Decorate, modify, …
Investment
Appreciation
Principal accumulation
Tax Advantages
Deductions Interest & property taxes
Capital Gain exemption.
These are the tangible benefits of owning a home. Owning your own home is part of the American dream. The freedom to decorate or change it to fit your own tastes causes lots of people to move from rental properties. The investment in their home is the largest investment that most people have. It comes from appreciation in value over time and principal accumulation from amortization of the loan. And finally, home ownership has income tax advantages. The interest on qualified mortgages and the property taxes are deductible on the Schedule A of the Federal 1040 tax form. When the home is sold, up to $500,000 worth of gain can be exempt from capital gains tax for a married couple.
©REALTY EXECUTIVES International, Inc. 2003

51. Home Buying Process Initial Interview Pre-Approval Showing Offer
wants
needs
agency
Pre-Approval
application
verifications
commitment
Showing
Internet
open houses
appointments
Offer
earnest money
negotiation
contract
Inspections
mechanical
structural
pest
This process can be modified to add or remove steps which may or may not be appropriate in your area. First, simply modify or delete the text. Each area has been grouped together, so to add or delete an object, you’ll need to right mouse click on the object and select ungroup. Then, select the object and delete.
Mortgage
appraisal
credit
underwriting
Title
review
binder
policy
Settlement
transfers title
possession
assemble papers
©REALTY EXECUTIVES International, Inc. 2003

52. Pre-Approval Advantages
Look at the “right” homes
Negotiate price and terms
Eliminate uncertainty
Saves time
Better decisions with financial information.
There are some distinct advantages to becoming pre-approved for a mortgage at the beginning of the home buying process. You’ll look at homes that you can afford without wasting time or becoming disappointed by finding a home you can’t afford to buy. It may be possible to actually negotiate a better price and terms on the home by submitting the commitment letter with the contract offer because it removes a major contingency from the contract. This allows the seller to feel more confident that his home is sold and it will actually close.
Being pre-approved also shortens the time between contract and closing because in most cases, the mortgage takes the longest. You’ll feel much better about the decisions you make with good financial information.
©REALTY EXECUTIVES International, Inc. 2003

53. Buyer Representation Someone who will: Protect your interests
Negotiate on your behalf
Know the neighborhoods
Research the facts
Work for you.
This is a legal issue that may differ from state to state. You should know how to explain this and if changes need to be made to this page, do so immediately.
©REALTY EXECUTIVES International, Inc. 2003

54. Internet Assistance Define the home you want
Home information will be sent to you as it comes on the market
I’ll recommend additional homes.
One of our Internet services we can offer is to automatically you any homes that meet your requirements. Each day, you’ll get any new homes that have come on the market. You’ll be able to look at a variety of pictures of the home and read what amenities it has to offer. If you are interested in seeing the home, just let me know and I’ll set up an appointment. This service will save you lots of time and really put you in control of the process. In addition, I’ll recommend homes.
©REALTY EXECUTIVES International, Inc. 2003

55. I can show you every home on the market
All of the REALTY EXECUTIVES homes
All of the homes in other companies
All of the homes in MLS
Builder’s homes
For Sale by Owners.
I can show you every home one the market including all of the REALTY EXECUTIVES homes, all of the homes listed by other companies, all of the homes in MLS, all of the builder’s homes, and even, for sale by owners. In order for me to provide the services that we have talked about, I really need to be the one who introduces the home to you. Please don’t look at homes without me.
©REALTY EXECUTIVES International, Inc. 2003

56. Inspections Objective, visual evaluation Impartial, 3rd party
Professional
Roof to foundation
Includes all systems
Written report.
Many buyers like to have mechanical, structural, and pest inspections to determine the condition of the home. Generally, this is done after you have come to an agreement in the sales contract. That way you won’t spend money on a professional inspector for a report on a home that you can’t come to terms with the seller. I can give you a list of qualified inspectors that we have found to be reputable and reasonable.
©REALTY EXECUTIVES International, Inc. 2003

57. Mutual Agreement: If I… Make an effort to find your home
Commit my time, car, & computer
Incur all my own expenses
Continue until we find your home or you tell me to quit looking.
Will you…
Let me know if your plans change?
Tell me what you like and dislike?
Tell me if you want to talk to another REALTOR®, builder, or for sale by owner?
Work with me until we find you a home?
Simply read the left side to let the buyer know what you are willing to do and then, read the right side slowly, one sentence at a time. You are trying to get commitment from them. It is better to find out early in the process that they are not going to be faithful to you than later. At least, you can make an informed decision.
©REALTY EXECUTIVES International, Inc. 2003