DEAR HOMEOWNER, Congratulations, you’re ready to sell your home. You now have some tough decisions. Do I sell myself? Do I list with a national brokerage? Can a franchise company offer me more? These are good questions and a great place to start your research. Today’s real estate market is vastly different than yesterday’s. Over 90% of real estate buyers begin their search online. One in three home buyers will find the home they ultimately purchase, themselves, on the internet. For over 10 years the principals of M Squared Real Estate have been at the forefront of real estate marketing technology, creating a variety of proprietary solutions to meet the challenges of today’s market. This results in DC homebuyers being equipped with the best possible tools to locate real estate and sellers with the best possible tools to effectively market their home. We are a local company. Our consultants live, work and play in Washington, DC. They don’t commute. We know the city, we know the marketplace, and only M Squared can provide you a complete marketing solution coupled with professional, knowledgeable consultants to sell your home in the shortest time possible. Sit back and relax, you’re home.
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The steps to closing STEP 1
The Home Valuation It's important that we price your home properly from the start. New listings receive a lot of attention. If your home is overpriced during the initial marketing campaign, you will lose many qualified buyers to competing properties. Your property will receive the most attention during the first two weeks on the market.
Your M Squared consultant will provide you with a complimentary CMA (comparative market analysis) to assist you in pricing your home. Your CMA will include currently listed and recently sold properties matching similar criteria to your property.
STEP 2
Listing the Property
Once we've determined the proper price for your home, we need to prepare the listing agreements. Your listing agreement will include the types of advertising to be used when marketing, guidelines for showings and open houses, the commission rate, and other pertinent details to allow us to best market your home to potential buyers.
STEP 3
Preparing for Showings & Open Houses
Your M Squared consultant will schedule a time for one of our home stagers to visit your home. Your property will be photographed for print, online and interactive video. M Squared listings are secured with smart card, digital lockboxes that monitors all activity for your listing. In addition, all showings must be scheduled in advance, and are accompanied by your M Squared consultant. Moreover, M Squared will not show your listing to prospective buyers who have not received loan pre-approval from an accredited lender.
STEP 4
Let the Marketing Begin! No DC broker is equipped to market your property as M Squared does. Your listing is offered on over 300 online websites, including: Trulia, Zillow, Google Maps, Frontdoor, Home Finder and Hot Pads and The Washington Post (to name a few). In addition to online syndication, our listings are marketed to over 3,000 co-operating brokers and agents throughout the District with weekly emails and private agent-only open houses. All marketing campaigns are complete with professional photography, brochures, postcards, and online virtual tours.
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STEP 5
The Offer
The "written offer" covers such subjects as the purchase price, down payment, terms of conventional financing or financing to be provided by the seller; and covers such other subjects as the location and duration of the escrow, title insurance issues, termite and other inspections, seller’s disclosure concerning the property and any contingencies upon which the parties’ obligation of performance depends.
STEP 6
The Contract
Once the contract is formed, the seller signs the “acceptance” portion of the offer. If the seller makes changes in the terms of the offer, a “counter offer” is prepared. There may be several counter offers between the parties. Once both parties have accepted and signed an acceptable counter offer, an enforceable contract is formed. The escrow holder creates a set of “escrow instructions” that set forth the terms of the transaction. Once the instructions are signed, the escrow holder obtains information and creates documents necessary to carry out the terms of the transaction. During the escrow period, the following events occur: a. The escrow holder orders and obtains a preliminary report of title for the buyer’s approval that shows all liens and encumbrances on the property; b. The brokers arrange a structural pest control report which identifies “required” repairs which are performed at the expense of the seller and “recommended” repairs. c. Other inspections, including a home inspection, are provided at the expense of the seller, and optional inspections by contractors, engineers or geologists are performed. d. “Contingencies” of the transaction are removed so that the transaction may close or are disapproved by the buyer. e. Condominiums require specific records from the condominium associations.
STEP 7
The Closing The escrow company prepares the following documents for the clients: a deed for signature by the seller in favor of the buyer, and requires the buyer to deposit the balance of the cash consideration. At the “closing”, the escrow records the deed in favor of the buyer and tenders the net proceeds of sale to the seller after paying real estate commissions and seller’s closing costs, typically including the cost of the buyer’s policy of title insurance; one-half the escrow fees; and document preparation and recording fees. The buyer’s “closing costs” which are deposited in escrow along with the cash consideration required to complete the purchase, include one-half of the escrow fees; the cost of the lender’s policy of title insurance; document preparation and recording fees; and prorations for secured property taxes and homeowner’s insurance. Following the closing, the buyer becomes the owner of the property and takes possession.
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MARKETING FOR TODAY To capture the online buyer, we’re generating exposure for your property with unprecedented brand presence on Internet real estate sites and portals and microblogs. Our online marketing strategy continues to change and evolve with the ever-changing online real estate space. Just a few years ago, sites like Trulia and Zillow didn’t exist and Google™ wasn’t displaying real estate listings. As the online Real Estate space evolved and home seekers began to integrate online searching into their home buying experience, M Squared Real Estate has continued to not just keep the pace but set the industry standard with regards to online marketing solutions. Today, you will find your property, your consultant and the M Squared brand on the most visited web sites and real estate portals on the web. Not only will you have the exposure, but M Squared will promote the features most online home seekers demand: multiple photos, maps, descriptions and school and community information.
36% 24% 15% 5%
of buyers found the home they purchased through a real estate agent of buyers found the home they purchased through the Internet of buyers found the home they purchased through yard signs of buyers found the home they purchased through print newspaper ads Statistics courtesy of National Association of Realtors 2006
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OUR ONLINE PRESENCE @ MSQREALTY.COM ATTRACTS MORE THAN 20,000 VIEWS PER MONTH. OUR TOOLS ALLOW CLIENTS AND PROSPECTS ALIKE TO SEARCH PROPERTIES, PROCESS CMAS, COMMUNICATE WITH THE TEAM, ACCESS INFORMATION AND EXPLORE DC NEIGHBORHOODS WITH JUST A FEW MOUSE CLICKS.
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EXPOSURE Â EMAIL MARKETING (E-BLASTS) WE MARKET YOUR HOME TO OVER 6,000 COOPERATING BROKERS. Every week, we send new listing announcements along with broker open and open house invites to thousands of cooperating Realtors. Your home is also included in all neighborhood property update subscriptions that prospective buyers create on our website.
PROPERTY BROCHURES AS THE SAYING GOES, YOU NEVER GET A SECOND CHANCE TO MAKE A FIRST IMPRESSION. Our in-house marketing department creates property brochures, flyers, and just listed postcards to market your home to buyers and Washington DC agents. Every listing agreement includes custom designed brochures with stunning high-definition photography. Brochures are hand delivered to brokerages throughout the city, as well as prospective buyers.
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PRINT MARKETING
These are a sampling of various publications where M Squared property advertisements appear. Â
THE NEW FACE OF PRINT
THE SIGN OF THE TIMES The National Association of Realtors reports that 80% of homebuyers begin their search online. Our in-house research indicates this percentage for Washington, DC home seekers is over 90%. Our aggressive internet marketing programs put your home in front of prospective buyers. We include all of our listings in the online editions of The Washington Post & The Baltimore Sun.
80%
OF HOMEBUYERS BEGIN THEIR SEARCH ONLINE
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INTERNET LISTING SYNDICATION
Facebook Craigslist Twitter Realtor.com RealEstate.com RELO Home Search Leading RE Google Maps Yahoo! Real Estate AOL Real Estate Trulia Zillow.com Frontdoor Cyberhomes HotPads Homefinder.com LakeHomesUSA CLRSearch Local.com Propbot Vast Lycos Oodle eRealInvestor LandWatch Resortscape Enormo Investor Loft Homes.com MyNewPlace Homeaway Property Pursuit Homewinks Homes Database
PLUS OVER 200 MORE
SYNDICATION ACCELERATED CRAIGSLIST Craigslist has quickly become one of the most valuable resources to advertise real estate. At M Squared, we understand the benefits of Craigslist and have become one of the first brokers in the area to create an automatic Craigslist marketing system. Our proprietary Craigslist marketing system allows us optimize and track your home on Craigslist, ensuring you’re always at the top of search results for your area.
SOCIAL MEIDA M Squared uses social marketing to advertise your home. We maintain active presences on Twitter, LinkedIn, Facebook & YouTube. As well as a variety of microblogs. New listings and open house notifications are automatically syndicated to all of our presences for complete online coverage. We also allow our website visitors to follow new listings via RSS Feeds.
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SINGLE PROPERY WEBSITES & MOBILE SINGLE PROPERTY WEBSITES Single property websites are complete presences dedicated to showcasing your home. Our in‐house marketing department is available to create stunning property websites loaded with features: Personalized domain name (www.123MainStreet.com) Hi‐Def Panoramic Virtual Tours Open House Calendar MLS Compliant Website & Virtual Tour Inclusion Integrated Property Feedback System Search Engine Optimized Google Street Views And much more...
MOBILE MARKETING Our mobile application uses GPS to locate nearby properties. Making sure to leave no buyer out, our application is available for iPhone, Android & BlackBerry smart phones. Prospective buyers can view your home’s photos, listing information, virtual tours and schedule showings. In addition, all of our marketing materials feature QR codes for one‐snap access to your property from any mobile device.
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The timeline to closing Pre-Listing Activities
Make and confirm appointment with seller for listing presentation Review pre‐appointment questions Prepare Listing Presentation Package Prepare current and historical data to establish market position Research sales activity for past 18 months from MRIS and public records databases Research average days on market for comparable properties Download and review property tax roll information Research property’s ownership and deed type Research property’s public record information for lot size and dimensions Research and verify legal description Research property’s land use coding and deed restrictions Research property’s current use and zoning Verify legal names of owner(s) in public property records Perform exterior “curb appeal assessment” Compile and assemble formal property file Confirm current public schools and explain impact of schools on market value
At Time of Listing Agreement Review current title information Measure overall and heated square footage Measure interior room sizes Confirm lot size via owner’s copy of certified survey, if available Note any and all unrecorded property lines, agreements, easements Obtain house plans, if applicable and available Review house plans and copy Prepare showing instructions for buyers’ agents and agree on showing time window with seller Financing Obtain and verify current mortgage loan(s) information: companies and loan account numbers Verify current loan information with lender(s) Check assumability of loan(s) and any special requirements Discuss possible buyer financing alternatives and options with seller Review current appraisal if available Home Owner Association (if applicable) Identify home owner association manager Verify home owner association fees with manager – mandatory or optional and current annual fee Order copy of homeowner Association bylaws Utilities
Research electricity availability and supplier’s name and phone number Calculate average utility usage from last 12 months of bills Research and verify city sewer/septic tank system Water system: calculate average water fees or rates from last 12 months of bills Well water: confirm well status, depth and output from Well Report Natural gas: research/verify availability and supplier’s name & phone number Verify security system, current terms of service and whether owned or leased Verify if seller has transferable Termite Bond Ascertain need for lead‐based paint disclosure Prepare detailed list of property’s amenities and assess market impact Prepare detailed list of property’s “Inclusions & conveyances with sale” Compile list of completed repairs and maintenance items Send “vacancy checklist” to seller if property is vacant Explain benefits of home owner warranty to seller Assist sellers with completion and submission of home owner warranty application When received, place home owner warranty in property file for conveyance at time of sale Have extra key made for lockbox Inform tenants of listing and discuss how showings will be handled Arrange for installation of yard sign Assist seller with completion of Seller’s Disclosure form Review results of interior decor assessment and suggest changes to shorten time on market Enter property in Multiple listing service database Prepare MLS Profile sheet – agent is responsible for quality control and accuracy of listing data Enter property data from profile sheet into MLS listing database Proofread for accuracy, including proper placement in mapping function Add property to company’s active listings list Provide seller with signed copies of listing agreement and MLS profile sheet data form within 48 hours Arrange for photography to upload into MLS and use in flyers
Marketing
Design print and internet advertising with seller input Coordinate showings with owners, tenants, and other Realtors Return all calls promptly – weekends included Install electronic lockbox if authorized Assign a toll free number with a custom 24‐Hour pre‐recorded message and install sign rider Prepare mailing and contact list Generate mail‐merge letters to contact list Prepare flyers and feedback faxes/emails Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions, and availability Prepare property marketing brochure for seller’s review Arrange for printing of marketing brochures/flyers Feedback e‐mails/faxes sent to buyers’ agents after showings Review weekly market study Discuss feedback from showing agents with seller to determine if changes will accelerate the sale Place regular weekly update calls to seller to discuss marketing and pricing Promptly enter price changes in MLS
The Offer and Contract
Receive and review all offers submitted by buyers or buyers’ agents Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes Counsel seller on offers. Explain merits and weakness of each component of each offer Contact buyers’ agents to review buyers’ qualifications and discuss offer Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible Confirm buyer is pre‐qualified by calling Loan Officer Obtain pre‐qualification letter on buyer from Loan Officer Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date Prepare and convey any counter offers, acceptance or amendments to buyer’s agent Deliver signed offer to buyer’s agent Deliver copies of fully signed offer to purchase contract to seller Fax/deliver copies of offer to purchase contract to selling agent Fax copies of offer to purchase contract to lender Provide copies of signed offer to purchase contract for office file Advise seller in handling additional offers to purchase submitted between contract and closing Change status in MLS to “sale pending”
Deliver well flow test report copies to lender and buyer and property listing file Verify termite inspection ordered Verify mold inspection ordered, if required Confirm verifications of deposit and buyer’s employment have been returned Follow loan processing through to the underwriter Contact lender bi‐weekly to ensure processing is on track Relay final approval of buyer’s loan application to seller Home Inspection Review home inspector’s report Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed Schedule appraisal Provide comparable sales used in market pricing to appraiser Follow‐up on appraisal Assist seller in questioning appraisal report if it seems too low
Closing Preparation & Duties Coordinate closing process with buyer’s agent and lender Select location where closing will be held Confirm closing date and time and notify all parties Work with buyer’s agent in scheduling and conducting final walk ‐through Research all tax, HOA, utility and other applicable prorations Request final closing figures from closing agent Receive and carefully review closing figures to ensure accuracy of preparation Forward verified closing figures to buyer’s agent Provide home owner’s warranty for availability at closing Provide earnest money deposit check from escrow account to closing agent Coordinate this closing with seller’s next purchase and resolve any timing problems Have a “no surprises” closing and present seller a net proceeds check at closing Refer sellers to one of the best agents at their destination, if applicable Change MLS listing status to “Sold.” Enter sale date and price, selling broker and agent’s ID numbers.
PREPARING YOUR HOME TO SELL When presenting your home to prospective buyers, first impressions are crucial. Buyers begin judging your home the moment they see it, and generally they prefer homes that are well-maintained, clean and clutter free -- homes they can picture themselves living in. That is why home improvements -- particularly if they address the anticipated needs of buyers -- can WILL boost your home's saleability and sale price.
Here are a few proven, cost-effective tips and will help your home look its best: Exterior (single family & townhome) Mow and rake the lawn, trim hedges, weed and edge gardens Sweep sidewalks and driveway, pick up any litter Repair gutters and eaves, touch up exterior paint Plant extra flowers for color, or place potted plants beside the front door Clean or paint front door, polish front door hardware, ensure doorbell works Power-wash siding and deck if necessary Interior Clean and tidy the entrance, clear stairs and halls, store all excess furniture Brighten interiors with fresh, light-toned paint Brighten rooms by installing high wattage light bulbs and turning them on Shampoo carpets, clean and wax floors Organize kitchen countertops -- removing appliances if necessary -- to make them look spacious Clean kitchen countertops, cabinets, appliances, washer and dryer Organize and clean out closets to make them look larger Clean and freshen bathrooms, put out clean towels, minimize clutter Clean mirrors and windows so they sparkle Organize and clean garage and basement Perform necessary minor repairs and touch-ups to walls, windows, fixtures, etc. Tips For Showings And Open Houses Be absent so buyers feel more comfortable making comments and feel like
they can linger Light the fireplace, open the drapes, play quiet background music Keep pets outdoors
These are just a few ideas to get you started. We know what today's buyers are looking for and can provide more ideas that will maximize your home's appeal. Remember, a few easy and inexpensive improvements can and WILL produce big returns on your investment.
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PRICING YOUR HOME TO SELL Pricing Your Property Is A Balancing Act On the one hand, you want to set a listing price that maximizes interest among qualified, motivated buyers who will be willing to pay top dollar for your property. Indeed, such buyers will ultimately determine your property's top market value. On the other hand, you do not want to set a listing price that attracts a lot of buyer prospects, but sets the stage for negotiations that result in your getting less than what your property is really worth.
Your Home's Actual Market Value In a perfect world, your home's value would be everything you think and need it to be. However, simply put, your home's value is not determined by you, but by what the market is willing to pay for it at a given time. These days, the "market" increasingly refers to home buyers who have researched property values over the Internet for months, have already viewed a number of homes, and are not under any undue pressure to buy. You can determine a value range for your home by looking at the recent sale prices and current asking prices of homes similar to yours in your area. That is why we’ve prepared a Comparative Market Analysis (CMA) that includes a variety of "comparable" homes drawn from the local Multiple Listing Service (MLS).
The Bottom Line: REALISTIC IS STRATEGIC! On average, serious buyers look at about fifteen properties before they make an offer. Doing so gives them a basis for determining how competitively a property is priced, both in terms of the market generally and what they are looking for specifically. If you overprice your property you'll usually lose serious buyers even if they otherwise love it. Experience shows that buyers usually do not make what they consider to be realistic offers on overpriced properties because they assume that doing so will just be a waste of time. The overlap between buyer and seller price ranges is depicted below. It will be helpful to keep this diagram in mind when pricing your property.
The First Two Weeks This graph shows those in the buyer pool who will be previewing your house in the first 21 days on the market. If we have created a perception of value, when your house in first introduced to the marketplace, we will see the heaviest traffic. These buyers are the best buyers because they are seasoned, qualified buyers who have seen all the other houses in the area they are looking. They started contacting agents about properties they saw on web sites, open houses or ads many months ago and are now prepared to make offers. If the positioning of your house creates a sense of urgency where more than one buyer wants the property, they will ask the question, “What will it take to get this house?” By the time we enter the third week of marketing, the showings will have dropped off. From this point, most are buyers just entering the market and are not ready to make decisions for several months until they have their financing arranged and have seen enough houses to be educated about the market. So our best opportunities are during the initial exposure to the market.
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The pre-listing checklist Questions
M Squared
Property Featured on MSQRealty.com?
Yes
Property included in Washington, DC neighborhood-specific RSS feeds?
Yes
Advanced listing syndication to over 200 online website publishing partners?
Yes
Property featured in state-of-the-art smartphone application?
Yes
Professional photography & printed marketing materials including flyers, brochures & postcards?
Yes
Private, catered broker-only even at my property to promote the sale of my property?
Yes
Public open houses to promote the sale of my property?
Yes
Virtual tour with syndication to YouTube?
Yes
Blog article about my property syndicated to over 30 microblog partners?
Yes
Featured listing on Realtor.com, Trulia.com, Zillow.com & Google Maps?
Yes
WalkScore included with property listing?
Yes
Secure, digital lockbox with online access tracking?
Yes
Complete online showing management w/ reviews and comments from buyers and showing agents?
Yes
Complimentary home valuation (CMA) from your listing agent?
Yes
Weekly Craigslist & BackPage posting of your property with guaranteed top ranking?
Yes
Promotion of your property on Facebook, Twitter and LinkedIn (public and agent-to-agent)?
Yes
Use of QR Code for instant access via smartphone in all print marketing?
Yes
Single property website w/ custom domain name (www.youraddress.com)?
Yes
Your property included in online editions of Washington Post & Baltimore Sun?
Yes
Marketing & branding in DC’s most-read print publications?
Yes
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M Squared Real Estate is a locally-owned, independent real estate brokerage firm that specializes in assisting home buyers and sellers reach their goals in any market. We believe in creating opportunity and discovering unique solutions for each of our clients.
Two Convenient Area Locations LOGAN CIRCLE (Opening Fall, 2011)
GEORGETOWN 3222 M Street NW · Suite C30 Washington, DC 20007 (202) 321-5641
always online @ www.msqrealty.com