Successful Sales Strategies
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Marketing Factors
The entire real estate community includes all of the companies, offices, and agents in the marketplace. They work together to sell property in an incredibly efficient system of sharing information. The increasing effects of this cooperation will increase the promotion that is done on each and every property in the marketplace. It brings purchasers into the home buying process and after qualifying them to their wants, needs, and abilities, they can be directed toward the home that meets their requirements. Purchasers have a tendency to want to look at all of the available properties that meet their criteria. They will compare the homes according to value for price, condition, and appeal. Even if the buyers are not familiar with prices in a particular area, after seeing a few homes, it is easy to determine whether a home is priced correctly. The agent’s objective is to get your home sold, not necessarily to be the one to actually sell it. The sheer number of other agents makes it more likely that someone else will sell it. The listing agent’s job as marketing coordinator will be to manage the sale to maximize promotional efforts, represent the seller’s interests, and to use their experience to make the transaction go smoothly.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
We Have Mutual Objectives...
The average Sales Price to List Price ratio experienced on my listings is higher than the average of the Multiple Listing Service. The benefit to you is more money after all of the expenses have been deducted.
The average time on the market experienced on my listings is less than the average of the Multiple Listing Service. The benefit to you is that your home will sell in a shorter period of time so that you receive your equity sooner.
Negotiating the most favorable terms regarding mortgage fees, settlement fees, possession and personal property can be as important as the price. The benefit of third party negotiation can be one of the most effective services offered by an agent.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Home Selling Process
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Services Provided Absorption Rate Positioning A written report of the transactions in the neighborhood to identify similar properties that have sold recently and what is currently on the market. You will be advised as to how many months of inventory are currently available in an effort to determine a realistic price for your property. Market Preparation Improving the condition of the home, "setting the stage" before showings, and knowing what to do when the property is being shown are just a few of the things that will help maximize the marketing efforts. We’ll take time to examine your home and explore the alternatives to showcase your property.
Special Services If you have to vacate the property prior to selling, special services can be arranged to help you with your specific needs such as: collecting the mail, removing advertisements, maintaining the yard, turning off the lights at night, setting the thermostat at a reasonable temperature, paying bills and forwarding statements monthly, and reporting to you monthly.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Pricing
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Overpricing Reduces sales associates activity because they know it is over-priced and don’t want to waste their time showing it because the seller is unrealistic. Increasingly more often, selling agents are representing the buyer and have a responsibility to find the best values for their clients. Reduces advertising response because buyers as well as agents looking for a particular type of home in a certain area become familiar with what is available. Loses interested buyers who might have looked at it but didn’t think the seller would consider what they thought it was worth. Not all buyers are willing to go to the effort to write an offer, put up earnest money, and take the time it takes to find out if the seller will take less. Attracts the wrong prospects because they are expecting more amenities in the home based on the price and once they see it, it won’t compare to the other homes in that price range. Eliminates offers for the same reason because the wrong prospects are looking at the home. Helps sell the competition by making the other homes in that price range look like they have more to offer. Can cause appraisal problems even if you were to find a buyer who was willing to pay more than market value. The lender would require an appraisal which would demand factual, objective proof that the home was indeed worth what the buyer was willing to pay for it. The lender does this so that if they have to take the home back because the buyer defaults, the loan would be covered by the sale of the property. Extends market time because of all of the reasons listed above.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Internet Syndication Exposing your home to the maximum number of sites and people is critical to selling your home.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Financing Alternatives Attractive financing can actually shorten the marketing time and increase the sales price. I stay upto-date with the types of mortgages that are available and maintain business relationships with mortgage professionals to provide choices. Financing Concessions can include seller-paid benefits like paying part or the entire buyer’s closing costs or buying down the interest rate. 80/10/10 Mortgage–calculates the payments on the first and second mortgage that equal 90% and the blended rate compared to a 90% loan requiring mortgage insurance. The second loan could come from a conventional lending source or from the seller. Income Estimator - calculates the minimum amount of income and the maximum amount of debt needed to qualify for a mortgage at a specific rate. This form could be displayed in an open house or at a listing to give a buyer a rough idea of what kind of income they would need to qualify to buy this house. Seller’s Net Sheet - A Seller’s Net Sheet can provide an estimate of the charges involved based on the contract and experience with local charges from title companies, attorneys, and lenders. Rent vs. Own – this form will show three significant benefits of homeownership that reduce the cost of housing. They include the tax savings, appreciation, and amortization that don’t apply to people who rent. If the Rate Goes Up – this form illustrates how much the payment will increase with ½% increments in interest that might occur while buyers wait to make a decision. Cost of Waiting to Buy– this form shows a buyer what can happen if they are waiting for the price on homes to come down. If the price does come down but the interest goes up, it shows them how much more it could cost them to own the same home.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Positioning Your Home with Terms
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Certified Serious Seller A Certified Serious™ Seller indicates that the homeowner has completed a series of inspections and disclosures to accurately convey the condition of their home to the best of their knowledge. Advantages for Sellers Shortens the market time Increases marketability Reduces or eliminates obstacles to closing Conveys confidence to buyers Affects better negotiations Creates differentiation with competing properties Suggested Requirements for Sellers Pricing the home at or below an independent appraisal or within absorption positioning to sell within 60 days Having a qualified home inspection Repairing items identified in a home inspection Pest inspection Property disclosure Home warranty
Certified Serious Seller {Contact.FullName} have met requirements to be called Certified Serious Sellers by the undersigned agent for the home that is being sold at {Contact.StreetAddressLine1}: Pricing the home at or below an independent appraisal which was made prior to putting the home on the market and is available for examination. Having the property inspected by a qualified home inspector and making the repairs that were required. Inspection is available for examination. Having the property inspected by a licensed Pest inspection company. Inspection is available for examination. Having completed a Property Disclosure statement as well as a Lead Based Paint statement. Copies are available. Providing a Home Warranty for the buyer that will cover specific items for one year from time of closing. Information on coverage is available on request.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Home Protection Plan Home protection plans can increase the marketability of a home by providing a “peace of mind” extra that competing homes may not have.
A home warranty increases marketability: Warranted homes sell up to 50% faster than nonwarranted homes Homes with a warranty sell for about 3% more, on average (Business Week) Reduced chance the seller will be asked to reimburse the buyer for a breakdown of a covered component Better chance that the closing won't be delayed by a malfunctioning warranted item It provides the buyer with a full year of coverage on the home’s major systems and appliances after they move in. In the event that something covered breaks down, only a deductible is paid and the Warranty Company pays the remainder. Buyer coverage on selected items:
Central Heating System Electric Central Air System Interior Plumbing Built-in Appliances Electric Pool Equipment
The seller may also have coverage on certain items while the property is listed for sale, even before the coverage is paid for. Homes sell 60% faster and for a higher price than homes without a home warranty ... according to a study by the National Home Warranty Association.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Pre-Appraisal and Pre-Inspection The benefits of ordering an appraisal and an inspection when initially listing the home can make the entire marketing process move smoother and quicker. Establishes Objective Value The price is not merely set by the seller but placed on the home by a disinterested third party whose profession is to value property. Validates List Price If the appraisal and the list price are the same, there is less likelihood that the buyer will discount the “asking price.” Establishes Basis for Comparison The appraisal and inspection can be used to compare with subsequent reports and can help to validate or challenge their findings. Creates Awareness of Condition of Home A third party inspection of the home by an inspector will identify areas that need attention and serve as a marketing tool to buyers to give proof to the condition. It can also be used to challenge claims that the buyer’s inspector might make. Anticipates Potential Problem Areas If certain things are identified by the first inspection, it gives the seller the opportunity to repair them at competitive rates instead of possibly having to rush to get them done prior to closing. Saves Time By understanding what might need to be done to a home early in the marketing process, it can save critical time between the contract and closing.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Marketing Plan 1. Perform a comparative market analysis and absorption position analysis 2. Produce professionally written copy describing the property 3. Wide-angle photographs to better display rooms 4. Maximize number of photos on Internet sites to create virtual tour experience 5. Broad-based Internet exposure through listing syndication 6. Expose the property through the Multiple Listing Service 7. Promote property on www.remaxatlasgroup.com with multiple photos 8. Place a RE/MAX Legends Group sign on the property 9. Conduct a tour for the RE/MAX Legends Group agents 10. Conduct a Broker's tour for agents with other offices to preview the property 11. Notify the neighbors that the property is on the market 12. Notify the other agents in the area about the property 13. Conduct analog and virtual Open Houses for prospects and associates 14. Produce color property flyers – print and online 15. Promote the property to the best agents 16. Canvas centers of influence to locate prospects 17. Install a key box to facilitate ease of showings 18. Offer a one-year home protection plan for purchaser 19. Analyze financing alternatives for prospects 20. Follow-up on showings to obtain prospects' reactions 21. Provide market preparation tips 22. Involve the homeowner to maximize marketing position 23. Monitor activity to maintain competitive position in the marketplace
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Professional Service Fee The professional service fee charged by my company is X% of the sales price of the property. Our company cooperates fully with other real estate companies and agents. We offer a 50% split to the selling agency that is shared between the brokerage company and the salesperson.
Transaction Fee A transaction fee of $XXX.00 in addition to the commission is charged to cover the initial expenses of placing the home on the Multiple Listing Service, the Internet, the sign, the lockbox, and other miscellaneous fees. This fee is payable at the time the listing is signed and is considered earned regardless of the outcome of the property
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Performance Guarantee
We feel so confident in our ability to sell your home, that when your property is entrusted to our company under an exclusive right to sell agreement for 180 days or more, our firm assures you that if at any time during the listing period, you are not satisfied with the service you are receiving, you may notify our office in writing and your listing will be terminated.
Owner's signature
Owner's signature
Broker's signature
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Follow-up
I can follow up on prospects that have seen your home without them thinking you're anxious. A homeowner calling a person who has seen their home can give the wrong impression that may lead them to think you are desperate. The problem with a homeowner calling a prospective buyer "to see what he thinks" is that the buyer might get the wrong impression. You don't want to appear as though you'll take less money. This could lead to lower cash proceeds for you. To the contrary, it is natural for a third party like the listing agent to follow up with a prospect. It is the responsibility of the agent to find out what kind of reaction the buyer had to the property. This will help encourage a contract and can lead to learning about adjustments that can be made to make the home more marketable.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Professional Profile Phil Lande, an experienced sales executive, has focused his attention on the Northern section of Marion County and the Southern Section of Hamilton County within MIBOR while concentrating on homes in the above average price ranges. Mr. Lande is a consummate salesperson with a dedication to the essential components of marketing. She is committed to her clients and their needs and devoted to helping them accomplish their goals and dreams. In the midst of her challenging career, you will find a person who is also dedicated to her family and community. EDUCATION BA, Indiana University ~ Bloomington CRS, Certified Residential Specialist RFC, Residential Finance Consultant CDPE, Certified Distressed Property Expert ABR, Accredited Buyer Representative ASP, Accredited Staging Professional WORK EXPERIENCE Associate Broker, RE/MAX Legends Group, 2005 to present Associate Broker, RE/MAX Preferred, 2000-2005 Broker Owner, ATLAS Realty Co. 1979 - 2000 Technician, Lande Dental Lab. 1977-1979
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356
Professional Profile continued... Past President of Certified Residential Specialists of Indiana Former Vice-President, Indiana Association of Realtors Former Director & Secretary/Treasurer of Metropolitan Indianapolis Board of Realtors Former Chairman of the Northside Marketing Division of MIBOR While interviewing a widower about selling his home of 17 years, discovered that it had been rented for the last 18 months. After explaining that to avoid paying Income Tax on the gain, it had to be owner-occupied two of the last five years. This meant that there couldn’t be a long market time and in fact, it must be sold and closed with the allotted time frame. Discovering this information and taking the proper action to guarantee a short market time saved the seller a considerable amount of money he might have had to pay in tax. Listed home after having been on the market for six months with another agent. To overcome the fact that the home was vacant and didn’t show well, we arranged for a home stager to furnish the home. We created a promotional plan that made the property look like it was new to the market. The home sold within 30 days from the day we unveiled it. Listed home that was inherited by two sisters after the death of their mother. The home was in considerable disrepair and they didn’t have the money to make the necessary repairs. We got firm bids on all work to be done and found a lender who appraised the home based on the repairs to be done. The lender agreed that with a qualified buyer, they would make the loan, close the loan, and withhold monies to be paid when the repairs were completed. This facilitated a single mortgage on the property. We then, positioned the home so that the buyer would be in the home for less than market value after buying the home and doing the work. Saved a client $124 a month by recommending that she refinance her home 13 months after I sold it to her.
Suggested to a buyer that instead of getting a 90% conventional loan that they should get an 80% first loan with a 10% second loan instead of a 90% loan. This saved them the initial premium of $1,800 on the Private Mortgage Insurance due at closing and 3/8% each month in the payment. In addition to those savings, the interest rate on the 80% loan was ¼% less than that of the 90% loan.
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Provided by Phil Lande RE/MAX Legends Group www.remax-atlasgroup.com • (317) 863-2356