1. How Not to Play Poker with Your Inventory Homes Presented by Kate Kelley-Dilts, SCRP, GMS, CERC Vice President, Client Development-Western Region NEI Global Relocation Omaha, NE May 21, 2008

2. 2 Relocation Home Sale All transferees: Home Marketing Assistance With formal home sale programs: Pre-Inventory Inventory

3. 3 Home Marketing Assistance For all transferees Transferees engaged in the process –Educate and advise on today’s challenges Key factors: –Partnering with a proven relocation Realtor –Pricing competitively –Condition –Marketing strategy

4. 4 Maximum Exposure Relocation real estate professionals Ensure great condition and appearance Best price out of the gate

5. 5 Maximum Exposure Internet is where it’s at!! –More than 20 photos generate 10 times the leads/views –Statistics show 1 photo = 70 DOM 6 = 40 DOM 20 = 32 DOM 1 photo = 91.2% of original price 6+ photos = 95% of original price Location, location, location is now photos, photos, photos!!

6. 6 How NOT to Stage a Home Advertised on the Internet as a “Showcase Relocation Home”

7. 7 Maximum Exposure Attract attention –List at even numbers for two search ranges –Listing at non-round numbers between ranges: i.e., $231,102 –Weekly, bi-weekly reductions –Unusual open houses Evenings, Sunday mornings Make the interested buyer an offer

8. 8 Marketing Actions Condition – improvements to compete De-clutter, de-personalize Staging options Know the competition –Foreclosures, construction, days on market (DOM), absorption rate Educate and advise on competitive list price –Aggressive action with “stepped down” reductions –Add verbiage “home listed below appraised value” Next steps

9. 9 Marketing Trends Guidance/mandate on Realtor selection List price parameters –i.e., initially 105% of BMA averages, then reduce –Adjust again if/when appraisals conducted Transferee encouraged to entertain all offers –Listening to the news, articles, TV –Rely on assistance to evaluate purchase offers Repair and improvement allowance Home sale bonus Appraisals to gauge listing price

10. 10 Marketing Trends Transferees consider offers less than Buyout Formal home sale offers less than established price (appraised value) Buyer incentives Loss on sale (capped) Short sales

11. 11 Pre-Inventory Preparation required –Before a home is purchased from a transferee Review marketing strategy used to date Order updated BMAs Condition of home –What has been repaired –Bids on repair/improvements needed –Strategize on expense vs. value Project marketing plan –List price to established value (loss on sale) –Advise on sale price to extended carrying costs

12. 12 Inventory Marketing TIME IS MONEY Industry Average Home Sale Costs: Employee-Generated Sale9% Guaranteed Buyout18% Difference9% Additional cost on home value of $250,000 $22,500 Additional cost on home value of $450,000 $40,500

13. 13 Inventory Home Sale Challenges Prolonged market exposure Market conditions vs. initial marketing efforts Curb appeal Condition – house is “naked” Marketing tools –Internet, creative approaches Negotiations for highest price –Concessions that make sense –Critical buyers

14. 14 Assessing Purchase Offers

15. 15 Home Marketing Success BMAs revealed “too much stuff” Advised transferee to de-clutter and store extra/personal items House showed much neater, cleaner Sold in shorter timeframe Employee Sale = higher transferee satisfaction, lower company costs

16. 16 Preparing a Home for Inventory Marketing Pre-arranged for painting upon transferee vacating Competition: supply of homes in area = 12+ months Staging and neutralizing costs = $10,400 Home sold within 3 months Saving 9 month’s carrying costs = $71,800

17. 17 Inventory Management Resistance to pink kitchen Extended marketing time due to new construction in local market Immediate paint, appliances to compete Reduced carrying time net savings = $17,222

18. 18 Challenging Home Sale Remote location 2 heavy smokers, 4 ferrets Property required reconditioning Ducts and floors cleaned, repainted, tear down shed Employee vacated upfront, repair immediately Sold in 90 days

19. Emu Ranch – SOLD!!

20. 20 Fireman’s Dream Condo across from fire station Noise a challenge View – direct and rooftop Appeal to market buyers

21. 21 Where to Park? Home improvement resulted in no off-street parking Added a front circle drive Competitive home Sold shortly thereafter

22. 22 Functional Obsolescence Attracted to home – until you opened the front door Entry post a challenge Staging benefit?

23. 23 Walk Right In? Stairs immediately inside door Addressed in HMA, appraisals Some things cannot be changed Creative descriptions needed

24. 24 Listed for a Year 3 exterior photos online Rehabbed historical home

25. 25 Bright Colors Transferee color choices Neutralize or accent?

26. 26 Relocation Homes Sell With transferee’s knowledge of market Proactive marketing plan Put your best “house” forward –Realistic listing price –Best condition Maximized exposure –Relocation Realtors –Web photos –Identify potential buyer pool

27. 27 Resulting In Increased transferee satisfaction Managed home sale costs Partnerships providing expertise The next concern ~ Transferees buying smart in the new location

28. 28 Case Studies Round Tables Review Case Study Offer recommendations to sell the home Follow corporate policy provisions Recap all groups to gather ideas, input.