YOUR EXCLUSIVE GUIDE TO


SELLING A LUXURY HOME


JOHN GRANDT
RENE | LICENSE #FA100074635
720.351.8488
MEET JOHN GRANDT | REF REALTY As a luxury expert in the Denver metro area, John Grandt, a Luxury Property Specialist with Coldwell Banker Global Luxury offers a wealth of knowledge and expertise that is unsurpassed; you can always trust his service and commitment to you.
John Grandt has served his clients since stepping off the ice as a Linesmen in the National Hockey League. Many of the skills he developed as a professional referee have translated to the real estate world including attention to detail, hard work, empathy and a strong foundation. These critical skills he brings to the real estate industry make a difference in outcomes and help clients get the results they expect. As a Denver native, he offers a keen insight into the rapidly changing real estate market. His expertise and high-level negotiation skills are why his clients are excited to refer his services to to their family, friends and colleagues. He is a Broker Associate, Coldwell Banker Global Luxury Property Specialist, Certified Luxury Home Marketing Specialist and Certified Real Estate Negotiation Expert.
John lives in Broomfield where he is currently an active member of the community. He frequently hosts educational seminars to teach residents how to maintain and increase the value of their homes.
• • • • •
Coldwell Banker Global Luxury Property Specialist
Certified Luxury Home Marketing Specialist
Certified Real Estate Negotiation Expert
Colorado Native
Former Linesmen with the National Hockey League
CONTENTS Introduction
1
Our Commitment To You
3
Define Your Goals
4
Price Your Property
7
Prepare Your Home
8
Market The Home
10
Show The Home
13
Ask For Feedback
14
Negotiate The Offer
17
Remove Contingencies
18
Close The Deal
21
Moving-Out Checklist
22
Frequently Asked Questions
24
A Home Seller’s Glossary
26
Your Guide To Selling A Home In The Luxury Market Selling a luxury home requires calculated finesse, the right connections, exceptional marketing capabilities and a thorough understanding of the luxury market. This exclusive guide is intended to provide a tangible resource in the process of selling your luxury home. My guarantee is to commit to the utmost discretion and provide personal concierge services through the process of selling your home.
SIGNING A LISTING AGREEMENT A listing agreement is a contract between you and your Realtor. It is an agreement that says the agent has the right to list, advertise and handle the sale of your home. It is important to understand the terms of agreement because you will be bound by them - forming and obligation of time and commitment of responsibilities.
KEY FACTORS • COMMISSION- The amount you'll pay your agent
• EXCLUSIVE RIGHT TO SELL- This gives your agent the right to sell your property
• DURATION- The amount of time the listing agreement is in effect
• HOLDOVER CLAUSE- A clause that protects the agent or broker after the end of the listing agreement, preventing you from avoiding payment to your agent should you find a buyer while under exclusive agency agreement
• DUTIES- The agreement lays out the activities the agent is authorized to conduct on your behalf
• REPRESENTATIONS- The agreement may also require you to verify certain legalities and facts about your home.
• DISPUTE RESOLUTION- Specifies how you will handle disputes that cannot be worked out informally.
MY COMMITMENT TO YOU It is important to work with a Realtor who are not only committed to working with you, but who are also dedicated to finding you the RIGHT home. Your Realtor should be someone you trust and who is protective of your interests. As your Realtor, this is my commitment to you.
CONCIERGE To focus on your specific needs and take care of all the small details, so you don’t have to.
RESPONSIBILITIES To educate you about the professional responsibilities, including disclosure, loyalty, confidentiality, compliance and accountability.
UNDERSTANDING YOUR REQUIREMENTS To take the time to understand your requirements location, property type, purpose, your must haves, local amenities - even if your goals change.
RESEARCHING THE MARKET To provide a sophisticated home search that will assist you with previewing homes and to keep you informed as new homes come on the market.
VIEWING AND ASSESSING HOMES To view homes with you, provide a comparative analysis, and work with experts who can provide an indepth analysis and advice.
CONSULTATION AND NEGOTIATION To provide full service consultation, together with expert negotiation on pricing and terms, with management of all documentation
CLOSING To keep you fully informed about all activities that lead to the transaction closing.
DISCRETION To always keep your interests and privacy secure, so you know that you are working with someone with the utmost discretion.
DEFINE YOUR GOALS Determine Why You Are Selling Everyone has a different reason for selling - as you start to go through the process of discovery, focus on what is important to you and your family.
Here are four important questions to ask yourself
• Why do you want to move?
• Is there a timeline?
• Are you relocating?
• Are there financial considerations?
Here are three important considerations
• Is this the right time for you to sell?
• What are the present market conditions and the implications to your sale?
• Does your home’s equity give you an advantage?
Recognize that every market is different and the selling process can be a sprint or a marathon - be prepared for both.
CHOOSING A TITLE COMPANY In preparation for selling your home, we will want to ensure the title is clear before placing it on the market. If a title is clouded (not clear), appropriate measures will need to be taken to clear it.
REASONS FOR A CLOUDED TITLE 1. 2. 3. 4. 5.
Recording error
Fraud
Liens
Probate Issues
Foreclosures
PRICE YOUR PROPERTY Pricing It Right The First Time While not all homes are the same and your luxury home may have some unique features, it is important that we price your home correctly from the beginning to avoid having to lower the price at a later date. The correct price can be determined by a market evaluation or appraisal.
Price sets “the opinion of value.� Price it too high against comparable properties and your home may not sell. Price it too low and you may not achieve the true value of your home.
THE FAIR MARKET VALUE IS INFLUENCED BY: Location
Condition And Its Unique Features
Buyer Demand
Prices Of Similar Properties On The Market
Recent Sales
Availability Of Financing
PREPARE YOUR HOME Let Your Home Win Over Buyers Every home requires some version of preparation, whether that is de-cluttering, defining each room’s purpose, staging or major renovations. As your real estate consultant, we will review your home together and we will advise you based on my experience and your needs, the proper preparation needed for your home.
HELPFUL TIPS: • Scrutinize the home. If you were a buyer, would you want to buy this home? You have lived here and know all the pros and cons. Highlight the pros and eliminate the cons.
• Don’t forget about the outside.
MARKET THE HOME The Keys To Getting Your Home Sold Each home has its own unique story to tell and the marketing should reflect that. Take time and sit down with your Realtor to discuss a marketing plan to successfully market the home. A comprehensive and customized marketing strategy will complement the time, money and energy that you have invested in your home. LOCATION Understanding your location’s positives and negatives are very significant in the marketing of your home. Misconceptions, preconceptions and knowing the nuances of your home can make a significant difference in how a home is marketed, when its shown, and how its positioned.
NETWOKRING AND REFERRALS Realtors will utilize their network and referral systems to create additional sources for potential buyers. Networking with other local, national and international relocation experts creates a larger database. Local advertising, word of mouth and open houses create referrals from local homeowners who are the biggest advocates for having their friends and family move into their neighborhood.
LUXURY ADVERTISING For luxury homes, local advertising is not sufficient these unique often specialist appreciated homes need exposure to the elite and discerning. I showcase your home to these affluent buyers through publications such as The Wall Street Journal, Unique Homes, The New York Times, Robb Report, Mansion Global and more.
YARD SIGNS AND DIRECTIONAL SIGNAGE The trusted yard sign is the #1 way to show that your home is for sale. It is fast, effective and easy to spot. Directional signs help guide people to the home.
PHOTOGRAPHY A key element to all marketing is the right photography. Your home has five seconds to impress and grab attention. The right photography can give you an extra 20 seconds and a great photo can evoke emotion. This is where they fall in love first. Skilled professionals know how to use composition, color and lighting to enhance the subject.
WEB EXPOSURE 95% of buyers look at homes online as their first step in the home buying process. This trend will continue to increase over time. Placing your home online allows the home’s exposure to be seen locally, nationally and internationally whether its on a computer, tablet or cell phone.
VIRTUAL TOURS/ ONLINE VIDEO MARKETING Creating a digital experience and footprint is an integral part of advertising in the 21st century.
PROFESSIONAL PRINTED MATERIALS The power of showcasing your home and its unique features through professional photography and sophisticated marketing materials is crucial to setting your home apart from the competition. Promotional materials that feature your home and are mailed to your neighbors, potential buyers and other Realtors are some of the most powerful ways to spread the message that your home is for sale.
SHOW THE HOME Letting Your Home Shine When showing a luxury home there are always special considerations. Most often private and pre-qualified showings are the best course of action to narrow down the field of qualified buyers.
Here are some things to consider when showing your home:
LET YOUR AGENT HANDLE IT A potential buyer is less likely to voice any concerns in front of you. Give them the space to explore and scrutinize. Remember your Realtor is your ally, let me handle any concerns a buyer may have.
BE FLEXIBLE Like many home sellers, home buyers are on a tight schedule. Continue to be flexible, especially if your are still living in the home.
CLIMATE CONTROL Make sure the temperature of the home is comfortable. You want buyers to feel comfortable and not rush the process because they are too hot or too cold.
ANIMAL CARE A pet-friendly home is a great selling point. However, if potential buyers are not animal friendly you don’t want your pet(s) to be a distraction. If you can, remove them from the home temporarily or place them in a contained space.
COMMUNICATE WITH YOUR REALTOR If there are special aspects to the home that you want to be featured and recognized during the viewing of the home, make sure to communicate that clearly to your Realtor.
ASK FOR FEEDBACK Knowing Is Half The Battle It is never easy hearing negative feedback about your home, but knowing is half the battle. The information provided could be helpful for the next showing. Following a showing, discuss with your Realtor to measure your home’s reception and consider recommendations.
REVIEW: • Are you receiving positive feedback from private showings, Open Houses or Broker Opens? Use this feedback to enhance your homes presentation for future showings.
• Could your home use an incentive to entice more buyers to come for a showing?
• Be patient. Be open to feedback and continue to maintain an open dialogue with your Realtor.
NEGOTIATE THE OFFER Starting The Process Perhaps the most complex moment in the sales process comes when you get an offer on the home.
An offer can be drafted with or without conditions. An offer without conditions is know as a contingent-free offer. An offer with conditions is known as a conditional offer, once the conditions are satisfied, the buyer or seller will be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not be obligated to purchase or sell the property.
POINTS TO CONSIDER IN YOUR NEGOTIATIONS: • The comparative condition of your home
• Length of time on the market
• Desire of buyer
• Location
• Your urgency to sell
You can accept or reject the initial offer. If you agree to some points of the offer, but not others, you would submit a counter offer. The counter offer may differ from the original offer in respect to price, conditions, closing date and the like. Offers can be countered back and forth until one party accepts or rejects the offer, ending the negotiations altogether.
REMOVE CONTINGENCIES Managing The Details Once both parties accept the sales contract and its contingencies, they will start the work of removing these conditions.
It is important for you to understand the options available to you should one of the conditions you are responsible for not be removed prior to the contract date. This does not automatically mean that the “deal is dead” - having a Realtor who is a good negotiator and will work with the buyer’s agent to find a solution is key.
Equally, conditions that the buyer needs to address can also be provided with extensions - this is the seller’s choice.
As your consultant, I will advise you on the right course of action based on my knowledge and experience.
CLOSING THE DEAL Finalizing The Details After the contingencies have been removed, it becomes the responsibility of the legal and and financial institutions to prepare all of the necessary paperwork. Should any issues arise your consultant will contact you directly.
You will need to inform the Escrow Company how you would like the funds deposited from the sale.
At closing, you will sign all of your legal documents, including paperwork related to the transfer of ownership. There is usually a representative from the Escrow Company to facilitate the exchange.
When closing is finished, you should not only be prepared to hand over the keys, but any copies of documentation that relate to the property and its amenities. You will receive a copy of the documentation you signed together with a statement of costs. At the end of closing, the deed will be taken and recorded at the county clerk’s oďŹƒce.
MOVING OUT CHECKLIST Even of you are hiring professionals to move you out there are still important considerations:
• Notify current utility companies - advise of new address, shut-off and connection dates, and if necessary, moving equipment:
• Electric
• Water/Sewage
• Trash
• Gas
• Telephone
• Cell Phone
• Cable/Satellite
• Internet
• Insurance - Transfer homeowners insurance to new home
• File change of address with postal service - start and end dates
• Notify DMV of new address - driver’s license, registration, tags
• Notify your bank and credit card companies of your move and that you will be making purchases in a new area.
• Updated voter registration
• Updated medical records - Notify doctor’s, dentists, pharmacists.
• Update employer records.
• Notify children’s school and activities of move.
• Cancel/update gym memberships and local memberships, if not staying in the area.
• Return library books or other things you have borrowed.
• Hire housekeeping and landscaping services to ensure the home is clean before the new buyers arrive.
• Send out “Just Moved” cards to notify family and friends of your new address.
FREQUENTLY ASKED QUESTIONS WHEN IS THE BEST TIME TO SELL? When you are ready. Every real estate market it different, therefore, the best time to sell a home will be different from community to community. Don't wait for perfect conditions to sell - they don’t exist.
HOW DO YOU CHOOSE A CONSULTANT? Think of the process as equivalent to giving a job interview. Do they know your local market? Price points? Types of homes? What is their track record for sales in your community? Can they provide testimonials? Ask for references!
HOW LONG DOES THE LISTING AGREEMENT LAST? Every real estate professional will have a preferred length. One thing to keep in mind when asking about the length of a listing agreement is the average days on the market. If the average days on the market in your local real estate are 75, a 90 day listing agreement may not be enough.
HOW MUCH COMMISSION SHOULD YOU PAY? Commission is negotiable, period. The saying “you get what you pay for,” is true when it comes to real estate too. Choosing a real estate professional based solely on the fact they offer the lowest commission amount is a mistake made by home sellers when choosing a real estate professional to sell there home.
CAN I GET OUT OF A DEAL SHOULD I DECIDE THE PROPERTY OR DEAL ISN’T RIGHT FOR ME? Don’t be afraid to back out of the deal; you have never gone too far until the contingencies have been removed.
A HOME SELLER’S GLOSSARY When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, I will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know.
Abstract of Title - A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present.
Closing Date - This is usually the date that the legal ownership of the property transfers from the seller to the buyer.
Adjustable Rate Mortgage (ARM) - Also known as a variable-rate loan, an ARM is one where the interest rate changes over time.
Contingency - A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.
Amortization - The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in the loan documents.
Appraisal - An appraiser’s estimate of the market value of a property, based on local market data and recent sale prices of similar properties.
Assessed Value - The value placed on a home by municipal assessors for the purpose of determining property taxes.
Closing - The final steps in the transfer of property ownership. On the closing date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid.
Closing Costs - The costs to complete a real estate transaction in addition to the price of the home and may include: points, taxes, title insurance, appraisal fees and legal fees.
Counter Offer - An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutually acceptable sales contract.
Debt-To-Income-Ratio - A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income.
Disclosures - Disclosure statements, which can come in a variety of forms, are the buyers opportunity to learn as much as they can about the property. Seller disclosures include knowledge of issues with the home. They serve to inform buyers and they can protect the sellers from future legal action. It is the sellers chance to lay out anything that can negatively affect the value, usefulness or enjoyment of the property.
Earnest Money - A deposit given by the buyers to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited.
Easements - Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed.
Equity - The value of the property, less the loan balance and any outstanding liens or other debts against the property.
Escrow - Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowners insurance.
Home Inspection - Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.
Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down.
Homeowners Insurance - A policy that protects you and the lender from natural disasters and liabilities such as a visitor injury or damage to your personal property.
Inclusions and Exclusions - Specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures and decorative pieces.
Lien- A claim or charge on property for payment of a date. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.
Mortgage Insurance - Purchased by the buyers to protect the lender in the event of default. Available through a government agency like the Federal Housing Administration (FHA) or private mortgage insurers (PMI).
Pre-Approval Letter - A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that a buyer is serious.
Principal - The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow.
Title - The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.
Title Insurance - Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.
Title Search - A historical review of all legal documents relating to ownership of a property to determine of there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.
Truth In Lending Act (TILA) - Federal law that requires disclosure of a Truth In Lending statement for consumer loans. The statement includes a summary of the total cost of credit.
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I would like to thank you for giving me the opportunity to present this preview of the home selling process. I’d be delighted to assist you with the sale of your current home and the purchase of your next home, and the next one, because I am not just providing a service, I am building relationships. Please let me know when I can be of service. Call me before making any important real estate decisions, you’ll be glad you did.
JOHN GRANDT | REF REALTY COLDWELL BANKER GLOBAL LUXURY 720.351.8488 | JOHN@REFREALTY.NET | WWW.REFREALTY.NET