Guide to Marketing and Selling Your Home by Sharon A. Curtiss

A G U I D E TO MARKETING & SELLING YOUR

HOME

A company built on a

FOUNDATION OF TRUST Berkshire Hathaway HomeServices PenFed Realty is built on a foundation of trust that translates into a passion for delivering the best service for our clients. OUR VISION Integrity. Innovation. Improvement. OUR MISSION To provide a gateway to an enhanced quality of life and better financial opportunities for our real estate clients, sales professionals and employees. OUR VALUES To be the premier provider of real estate services in the markets we serve.

WHO WE ARE Trust is more than just a catchword at Berkshire Hathaway HomeServices PenFed Realty. It’s at the very core of the relationships we build with buyers and sellers every day. And it’s why thousands of home buyers and sellers have placed their trust in us.

50+

offices serving 51 cities

GLOBALLY known

Berkshire Hathaway HomeServices PenFed Realty utilizes an elite network of powerful relationships, along with modern, effective tools to bring together buyers and sellers of distinctive properties from all over the world. Our experienced, serviceoriented professionals combine local expertise with vast global connections, the most advanced technology available and unparalleled marketing resources to deliver best-in-class results to our clients. Our global syndication strategy capitalizes on consumer preferences and search patterns to keep our listings in front of the world’s serious and qualified home buyers.

WE REACH 6 MILLION UNIQUE VISITORS every month 37 COUNTRIES in 12 languages 2 MILLION CONSUMERS IN CHINA every month 70 PROPERTY WEBSITES around the world

LOCALLY owned PENFED CREDIT UNION Berkshire Hathaway HomeServices PenFed Realty is a wholly-owned subsidiary of PenFed Credit Union. Established in 1935, PenFed Credit Union: • • • • •

Is one of the country’s strongest and most stable financial institutions Has 1.6 million+ members Has $24 billion+ in assets Has members in all 50 states and the District of Columbia, plus military bases in U.S. territories Is federally insured by the National Credit Union Association (NCUA) and is an Equal Housing Lender PENFED REALTY

PenFed Realty was established in 2006 and has since steadily increased its presence and expanded its market share across multiple states. We have: • 50+ offices • 1,800+ sales professionals in Maryland, Virginia, Washington, D.C., West Virginia, Delaware, Pennsylvania, Florida, Kansas, Tennessee and Texas • Services for residential and commercial properties This remarkable achievement earned Berkshire Hathaway HomeServices PenFed Realty the Berkshire Elite designation, reserved only for the top companies nationwide.

Why

CHOOSE US REPUTATION

SERVICE

EXPERTISE

REACH

EXCELLENCE

When our name goes on a real estate sign, it means something. It’s a promise of integrity, professionalism, innovation and the highest standard of work.

Your needs come first, and we don’t just say that. Year after year, surveys by Harris Poll* and RISMedia recognize our dedication to clients and our commitment to customer service. We are proud of our expertise in process, places and people—guiding you through your home selling journey, in the locations right for you and with the right people who can help. We combine local expertise with vast global connections. Our network, with over 60,000 sales professionals in over 1,500 offices in North America, reaches 37 countries in 12 languages.

Whether you’re relocating, scaling up to a larger home or downsizing into a cozier space, we are deeply committed to a successful outcome for you.

Berkshire Hathaway HomeServices received the highest numerical Equity Score and the highest numerical score relating to Trust and Love among Real Estate Agency brands included in the 2020 Harris Poll EquiTrend® Study, which is based on opinions of 39,100 U.S. consumers ages 15 and over surveyed online between January 1 and January 30, 2020. Your opinion may differ. “Highest Ranked” was determined by a pure ranking of a sample of Real Estate Agency brands.

How

WE RANK BERKSHIRE HATHAWAY HOMESERVICES

REALTRENDS 500 2020

REPRESENTING LESS THAN ONE-HALF OF 1% OF ALL BROKERAGE FIRMS IN THE COUNTRY

HARRIS POLL 2020

REAL ESTATE AGENCY BRAND OF THE YEAR AND MOST TRUSTED REAL ESTATE BRAND *

RISMEDIA 2020 POWER BROKER

RANKED IN THE TOP 500, #24 IN SALES VOLUME

Touching hearts

IMPROVING LIVES We proudly support two non-profit organizations that serve people in the military, children with cancer, and their families. PenFed Foundation works to meet the unmet needs of veterans, active duty personnel and their families. Sunshine Kids is dedicated to enriching the lives of children with cancer.

Better

TOGETHER Our partners create a streamlined escrow, disclosure reporting, title, mortgage, and insurance experience for you. Together we have a vested interest in expediting your home buying and selling process. Our unified efforts assure a positive closing.

Moving made easy

PENFED REALTY CONCIERGE

When you’re considering buying or selling a home, the prospect of dealing with a MOVE can be daunting—and even a deterrent to taking the first step. Fortunately, at PenFed Realty we offer our clients a lifetime account with PenFed Realty Concierge! This FREE service provides both an online platform and live, dedicated specialist to help make your move EASY: •

Customizable week-by-week moving checklist

•

Personalized reminder emails to help you stay on track

•

Set up or transfer: utilities, internet, cable, home security, insurance

•

File your change of address and mail forwarding with USPS

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Research and hire top-rated moving companies and storage providers

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Request quotes for car shipping

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Update your driver’s license and vehicle registration with the DMV

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Connect with preferred vendors for all of your home needs

•

Project planning for your new home

•

And so much more!

Plus, after your move, PenFed Realty Concierge is your one stop for managing all of your needs as a homeowner. With PenFed Realty Concierge, your Berkshire Hathaway HomeServices PenFed Realty agent is your trusted real estate professional for life.

MARKETING YOUR PROPERTY Thoughtfully-developed marketing campaigns tailored specifically to your property’s location, condition and characteristics are at the heart of our success. We are plugged into the most up-to-date marketing strategies and channels to ensure that your property receives maximum exposure online, in print, on social media—and of course—in person.

DAZZLING

DIRECT MAIL

materials

Beautifully-developed materials are the foundation of our marketing strategy. We take the time to publish carefully crafted messages paired with high-definition photos designed to grab the attention of discerning buyers.

FLYERS

YARD SIGN 20

DIGITAL

ECARDS

SOCIAL MEDIA

VIDEO

WEBSITE

DIGITAL strategy

Our comprehensive online marketing strategy leverages the power of the Internet to drive consumers to your listing. DIGITAL ADVERTISING A digital ad campaign featuring your home will be created and shown to high-propensity buyers and retargeted multiple times on social media and premium websites on their desktop and mobile devices. You will also receive a daily report on the number of impressions your ad receives and the sites that displayed it. SELLER REPORT You will also receive a more comprehensive report with insider information on how many potential buyers are searching online for similar homes, and data on how many times your home appeared in search results, how many times the listing was viewed, and new comparable listings and price changes. OUTBOUND DIGITAL COMMUNICATIONS eNewsletter Offering localized marketing information and tightly curated articles that are of great relevance to potential home buyers. Email Marketing High-impact and professionally designed eCards target your local community and our network . PROPERTY WEBSITE A beautifully-designed mobile-responsive website will be created that contains high-quality photography and detailed information on your listing. SOCIAL MEDIA We can leverage the power of both organic posts and boosted ads to showcase your property to targeted groups.

VIDEO Using high-definition photography of your home, we will create a video and upload it to YouTube.

Reaching

BUYERS

As more buyers conduct their property searches online, our partnership with strategically-selected real estate search portals ensures that your home will be showcased on websites that target consumers who are in the market for a new home, giving your property listing an additional 6 million unique views every year. WSJ.COM EUROPE.WSJ.COM ASIA.WSJ.COM Your listing is automatically showcased on the Wall Street Journal’s property portals and shown around the world to a global audience of 43 million+ digital readers per month1. MANSIONGLOBAL.COM For listings over $1 million, a rotating ad is placed in MansionGlobal.com, the award-winning digital destination for affluent real estate buyers. JUWAI.COM Your listing automatically appears in Juwai.com, the market leader in China for global real estate listings. FINANCIAL TIMES London-based Financial Times will automatically showcase your property on its listing feed. BERKSHIREHATHAWAYHS.COM With the company’s brand recognition, millions of people around the world visit the Berkshire Hathaway HomeServices website to search for properties.

Data obtained through SimilarWeb via comparison of top local brokerages – May 2017.

A timeless medium Even in the digital age, the power of print cannot be underestimated. We value the power of print as part of our overall marketing strategy for brand promotion.*

* The publications shown on this page only represent a sample of the magazines and newspapers that we utilize in our marketing campaigns; they do not represent specific advertising placements for your property.

Public

EXPOSURE In-person events are a powerful way to showcase your house to other sales professionals and potential home buyers. After all, nothing beats walking through a property and seeing things for yourself. BROKERS’ OPENS We utilize our local network of area brokers to heavily promote your listing and invite them to tour your property. OPEN HOUSES Depending on market conditions, an open house may be an effective way to maximize exposure and gather public opinion if you choose to hold one.

THE ART OF home pricing WHAT IS THE IMPACT OF PRICING? Properties priced right generate more showings and offers and sell in a shorter period of time. Conversely, properties priced too high have a difficult time selling.

The dangers of OVERPRICING It attracts lookers (not buyers) It makes you seem unmotivated to sell It reduces the number of showings It helps the competition look better Buyers may not be able to secure a loan

It’s important to position your home at the best price during its first market exposure. 26

FACTORS

that impact price As a seller, you control • • • •

Asking price Property condition Access to the property Terms of sale

As a seller, you do not control

What determines the price of your home?

• • • •

Market conditions Motivation of your competition Motivation of your buyer Financial market

YES • Current real estate • • • • • •

market Economic conditions Competition Financing Buyer’s perception of the property’s condition and needs Location, amenities and attributes Your motivation

NO • Contents • • • • •

Your purchase price Appraised value Cost of improvements Sale price of your neighbor’s home Your financial needs

PREPARING YOUR HOME FOR SALE You only have one chance to make a positive first impression. Staging your home will present it at its best, which can result in a successful sale at a fast pace for the highest price. The next few pages will outline a few of the “must-dos” to best prepare your home for sale.

WHY YOU NEED A REAL ESTATE AGENT According to housing industry experts at Realtor.org, more homes listed by real estate agents are sold than homes marketed by owners, and they sell more quickly and for more money. Homes listed by real estate professionals get more exposure and their sellers get more support. Real estate professionals offer many advantages: •

We are trained and licensed professionals.

•

We have experience in your neighborhood and your market.

•

We have oversight from brokers and state licensing officials.

•

Our job is to advise you of the best way to reach your goals.

•

Our continuing education keeps us up-to-date on housing issues.

•

We know how to present your home and engage with buyers.

•

We know how and where to market properties.

•

We know how to overcome typical snags that occur in all real estate transactions and closings.

•

We understand state-required disclosures and look out for your best interests.

•

We understand personal safety and security for your belongings during showings.

•

We know the best resources to make transactions go more smoothly, from bankers to homestagers to contractors.

•

We have the most accurate data sources that are exclusive to real estate professionals, e.g., the MLS, the only data repository that has the most up-to-date listing and sales information.

•

We know how to negotiate on your behalf.

•

Our job is to make your real estate transaction successful.

When you market your own home, you have to make the time to do all the jobs that a real estate professional would do, and you’ll be competing against other sellers who have real estate professionals by their sides. You can’t go wrong by hiring a well-respected real estate professional.

OPTIMIZING YOUR HOME’S POTENTIAL BRING YOUR HOUSE INTO “MOVE-IN CONDITION” To a buyer, ”move-in condition” means they can literally get the moving trucks to deliver their belongings on Friday, unpack over the weekend, and go to work on Monday already settled into their new home. To bring your home to that “move-in condition,“ especially if it needs a major renovation, PenFed Realty clients have the option of leveraging one of the following programs: PENFED REALTY MAKEOVER ADVANTAGE PenFed Realty Makeover Advantage is a six-month, interest-free loan* available only to PenFed Realty home seller clients. This loan program can provide the cash you need—up to $25,000—to finance your pre-sale renovation. CURBIO For home sellers who need financing AND construction assistance, ask us about Curbio. Curbio is a turnkey renovation service for home sellers who need help with financing a renovation and managing the project. Curbio’s licensed design and build professionals will manage your renovation and wait to be paid at settlement.

31 * To receive the advertised product, you must become a member of PenFed Credit Union, which is federally insured by the NCUA. 1.0% APR for 6 months. After that, a fixed APR between 6.49% and 17.99% applies. Your fixed APR applicable after the promo expiration will be determined at the time of loan disbursement and will be based on your application and credit information. Not all applicants will qualify for the lowest rate. Rates quoted assume excellent borrower credit history. The 0% APR for 6 months offer is valid for consumers working with a PFR agent. To be eligible for the 0% APR for 6 months, you must submit a PenFed personal loan application through your PFR agent. “0% APR” means all loan payments received in the 6 months following loan origination will be applied exclusively to your unpaid loan balance. After 6 months, your loan payments will be applied to the unpaid loan balance and applicable finance charges. ©2020 Pentagon Federal Credit Union.

FEATURES THAT SELL According to the National Association of REALTORS® latest profile of homebuyers and sellers, buyers plan to occupy their homes for the next 10 years. They want homes that offer the room, flexibility and comfort they anticipate they will need for a long time. Over three out of four buyers chose a detached home, while attached homes—condos and townhomes—were favored by single homebuyers and buyers without children. MOST POPULAR HOME FEATURES According to a study by the National Association of Realtors, the factor that mattered most in the sale of a house was the price, while the home's condition came in second. And according to Kiplinger.com, when it comes to features, buyers were most attracted to homes with the following features:

•

Energy-efficient appliances and windows

•

Ceiling fans

•

Patios

•

Hardwood floors

•

Garage storage spaces

•

Eat-in kitchens

•

Curb appeal

•

Large master baths

•

Main-level bedroom

FIRST IMPRESSIONS Most buyers form their first impression of your home before they even get out of their cars. This is called “curb appeal” or the attractiveness of your home when viewed from the curb. THE IMPORTANCE OF CURB APPEAL Curb appeal sets the tone for what the buyer will see inside your home. To maximize your home’s curb appeal, pay attention to the following factors: WALKWAY/DRIVEWAY: Make sure they are clear of snow, weeds or debris. Repair or replace cracked steps or pavers. Park cars in the garage. LANDSCAPING: Your lawn should be mowed, edged and watered. Prune hedges and plants. Weed flower beds and replace thin landscaping with fresh plants and flowers, if needed. EXTERIOR: Replace loose or damaged roof shingles, clean gutters and paint/caulk window trim and doors. Repaint the front door an eye-catching color. Replace broken windows. ENTRY: Power-wash siding, brick, windows and porches. Paint or replace furniture (e.g., rocking chairs, porch swings, etc.). Replace mailboxes, light fixtures, doorknobs, and floor mat, if needed.

SHOWINGS AND OPEN HOUSES Once your home goes on the market, real estate agents may call to show your home between 8am to 9pm. Keeping your home “showtime” ready can be challenging, especially if you have children and pets. But keeping your home free of clutter when a potential buyer visits maximizes your home’s appeal and allows the buyer to imagine their belongings in the space. CHECKLIST •

Eliminate clutter: Not only is clutter unattractive, it’s time-consuming to sort through and expensive for you to move.

•

Keep, donate, throw away; go through your belongings and put them into one of these three baskets.

•

Remove temptations: Take valuable jewelry and collectibles to a safety deposit box, a safe, or store them in a secure location.

•

Remove breakables: Figurines, china, crystal and other breakables should be packed and put away in the garage or storage.

•

Be hospitable: You want your home to look like a home. Stage it to show the possibilities, perhaps set the table, or put a throw on the chair by the fireplace with a bookmarked book on the table.

•

Have a family plan of action: Sometimes showings aren’t convenient. You can always refuse a showing, but do you really want to? If you have a showing with little notice, get the family engaged. Everyone has a basket and picks up glasses, plates, newspapers, or anything left lying about.

•

Get in the habit: Wash dishes immediately after meals. Clean off countertops. Make beds in the morning.

•

Keep pet toys and beds washed and smelling fresh.

•

Clean out the garage, attic and closets. Buyers want to see the home’s storage possibilities.

CLEAN-UP AS EASY AS 1-2-3 1. Everyone gets their baskets and cleans up clutter. Check for hazards like toys left on the floor. Make sure all toys, including bicycles, are put away. 2. Put pets in daycare, sleep cages or take them with you. In the listing instructions, there should be a warning if there is a big dog on premises. Buyers with allergies also may appreciate knowing in advance if you have pets. 3. Turn on lights and open the drapes so buyers can really see. 34

NEGOTIATIONS The best way to avoid contentious negotiations is by maximizing your home’s potential and removing any potential sticking points in advance. This includes: 1. Pricing your home to sell at or below current market comparables. 2. Putting your home in spotless, move-in condition. 3. Decluttering your home, deep clean it, paint it and repair it, and keep it “show-ready” every day it’s on the market. 4. Getting your home inspected ahead of an offer so you know where issues are and can correct them before they become negotiating points. WHEN AN OFFER IS MADE Buyers sometimes test sellers with low offers, but don’t get upset or discouraged. If the offer is too low, simply have your agent return the offer with a copy of recent comparables to show that your home is priced fairly at current market value. If the offer is low, but close to what you want, study the terms carefully, adding up possible expenses such as paying the buyer’s closing costs. Ask for the buyer’s reasoning behind the offer to give you insight into the buyer’s mindset. And before you agree to any offers, make sure the buyer is preapproved with a lender and working with a real estate professional. Serious buyers have access to the same comparables as you do, so a buyer working with a real estate professional is more likely to be preapproved by a lender and informed of current market conditions.

WHAT IS A CMA? A Comparative Market Analysis (CMA) is a side-by-side comparison of homes for sale and have recently sold in the same area and price range. It also categorizes homes by size, features, and other factors. HOW IS THE CMA CREATED? CMAs are created using information from the multiple listing service, a database only available to licensed real estate professionals, brokers and appraisers. It is a snapshot of the market based on the most recent data available and can vary greatly depending on the search parameters entered by the real estate agent. It can tell you which homes have recently sold, and which are currently on the market. CMAS V. APPRAISALS Although the CMA is used to help determine current market value, it does not establish the seller’s home value from the perspective of the buyer’s lender. In fact, the CMA is merely a guide to help the seller learn what’s happening in their local market, so they can better understand where their home fits in term of price ranges, based on location, features and condition. Unlike the CMA, an appraisal is a professional determination of a home’s value at the directive of a bank who is funding the loan for the home purchase. It’s performed by a licensed appraiser, using guidelines established by the Federal Housing Finance Agency, which regulates federal housing loan guarantors such as FHA, VA and housing loan purchasers Fannie Mae and Freddie Mac.

COMMISSIONS REAL ESTATE AGENTS Nearly 9 out of 10 real estate agents work on commission, and are paid only when the transaction closes. Except for the legal profession, real estate agents are the only fiduciaries and agents who work this way. Commissions are paid according to the terms of the listing agreement. We do not negotiate commissions in contracts. To simplify how commissions are routed, the real estate industry customarily allows all sales commissions to be paid out of the seller's proceeds, according to the terms of the listing agreement. DISTRIBUTION Once the home is listed in the MLS, the listing broker discloses the terms of the commissions offered to competing brokers, so they will bring their buyers to the listing. When the buyer’s broker presents a contract to the seller, it will include a provision to collect their share of the sales commission, as offered by the listing agent in the MLS.

LISTING BROKER

BUYER’S AGENT

LISTING AGENT

BUYER’S BROKER

That means a commission is typically split four ways: •

Listing broker

•

Listing salesperson

•

Buyer’s broker

•

Buyer’s salesperson

Commissions owed per listing agreements are collected during closing, typically from the seller’s proceeds. All commissions are negotiable, but sellers should keep in mind that commissions are incentives between clients and their brokers.

YOUR COMPARATIVE MARKET ANALYSIS No two homes are alike, which is why choosing a listing price for a home can be challenging. That’s where the comparative market analysis, or CMA, is most useful.

AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT PENFED REALTY, LLC

This is to give you notice that PenFed Realty, LLC, d/b/a Berkshire Hathaway HomeServices PenFed Realty, d/b/a Berkshire Hathaway HomeServices PenFed Realty Texas (“PenFed Realty”) has business relationships with the Pentagon Federal Credit Union (“PenFed”), which provides mortgage financing, and the following companies, all of which provide title insurance and/or closing/settlement services: PenFed Title, LLC (“PenFed Title”); Prestige Title & Escrow, LLC (“Prestige”); Members Title LLC, a Texas LLC (“MTTX”); Members Title Company of California, Inc. (“MTCA”); Members Title LLC, a Maryland LLC d/b/a Broadview Title (“MTMD”); Capitol Title Group (“CTG”); Closeline Acquisitions, LLC (“Closeline”); Champion Title & Settlements, Inc. (“Champion Title”); and Kase & Associates, P.C. (“Kase”). Specifically: PenFed owns 100% of PenFed Realty and PenFed Title. PenFed Title owns 100% of MTTX and MTCA. Closeline owns 100% of Affiliated Services, LLC and CTG. PenFed Title and Affiliated Services, LLC each has a 50% ownership interest in MTMD. PenFed Title has a 65% ownership interest in Prestige, and Champion Holdings, LLC (“Champion Holdings”) has a 35% ownership interest in Prestige. Principals of Champion Holdings also have ownership interests in Champion Title, and a principal of Champion Holdings also owns 100% of Kase. None of the PenFed, PenFed Realty, PenFed Title, Prestige, MTTX, MTCA, MTMD, Affiliated Services, LLC, CTG, or Closeline has any ownership interest in Champion Holdings, Champion Title, or Kase. Because of these relationships, this referral may provide PenFed, PenFed Realty, PenFed Title, Prestige, MTTX, MTCA, MTMD, CTG, Affiliated Services, LLC, Closeline, Champion Holdings, Champion Title, Kase, or any of their principals and affiliates, a financial or other benefit. Set forth, below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for the purchase or sale of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

Provider/Settlement Service PenFed Origination Appraisal Credit Report Tax Service Flood Certification CLO Access PenFed Title/Prestige/MTTX/MTCA/ MTMD/ CTG/Closeline/Champion Title Lender’s Coverage Owner’s Coverage Settlement Title Examination Document Preparation Recording Services Photocopies, miscellaneous Kase Deed/Document Preparation Settlement Recording Services

REV 2/21

Charge/Range of Charges 0% - 6% of loan amount $350 - $750 $9.75 - $16.50 $37.50 - $65 $7 $65

$0.32 to $5.70 per thousand of loan amount $2.40 to $6.84 per thousand of sales price $200 - $825 $75 - $550 $100 - $375 $50 - $200 $35 - $200 $100 - $500 $150 - $250 $35 - $75

PenFedRealty.com

©2021 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity. We are proud to be an equal employment opportunity employer. REV: January 22, 2021 2:41 PM