ebook - lynley mcgovern leaders real estate wellington new zealand

LYNLEYM c G o v e r n


SELLING YOUR HOUSE FOR A PRINCELY SUM

A guide to selling your property for the best price in a recession

(1987) LTD Licensed under REAA 2008

Selling Your House for a Princely Sum



Step 1: Prepare your house for sale 6

Step 2: Choose an agent 9

Step 3: Choose a pricing strategy 11

Step 4: Hang in there! 15

Why did I write this e-book? 17

It’s okay to share this e-book in its entirety with anyone you think might be interested. In fact, I’d be delighted if you did.

Copyright © 2011

Contents

1




Most people get a lot of joy from real estate agent jokes and I admit, I laugh at them just as hard as the next person.

Two women were walking through the woods when a frog called out to

them and said, “Help me, ladies! I am a real estate agent who, through a

curse, has been transformed into a frog. If one of you will kiss me, I’ll be

returned to my former state.”

One woman took out her purse, grabbed the frog and stuffed it inside her

handbag. The other woman said, “Didn’t you hear him? If you kiss him,

he’ll turn into a real estate agent!”

The woman replied, “Sure, but a talking frog is worth more than a real

estate agent!”

2




I must have been in a reflective mood when I heard this one because, although I did have a chuckle, I found myself thinking that this joke is not as funny as it might have been a few years ago when the real estate market was at its peak and selling a house was a piece of cake.

Now, since the global financial crisis left us in a relentless recession, I would argue that a good real estate agent is much more valuable than a talking frog!

When people are spending conservatively, they are more likely to spend their money investing in the important things, like their family home, and sacrifice the gimmicks. (And, after seeing a whoopee cushion app on an iPhone, I think Apple have pretty much got the ‘ridiculous entertainment’ market sewn up!)

So here I am: your talking frog. And this e-book is filled with information on how to get the best out of the current market.

Selling your home is never easy, even in a buoyant economy. It requires some smart work on your behalf but if you get it right, you can reap the benefits.

INTROSelling your house

3




DECLUTTER Home is where the heart is... and the sports equipment, kids’ toys, hobby materials, camping gear

and more. Life comes with lots of stuff and it’s okay to surround ourselves with the things that enrich our

lives – it’s what keeps us sane.

But in order to sell a house, you need to make way for someone else’s life enriching ‘stuff ’.

You need to provide a blank canvas so it’s easy for potential buyers to imagine their own life in that house.

So, that’s right, you can’t put it off any longer – you need to start the arduous task of packing.

It’s a gruelling task but you’ll appreciate the preparation you’ve done now when moving day comes around.

Find a clean, dry, out-of-the-way place to neatly stack all the packed boxes and surplus furniture. It needs to

be a place that won’t interrupt a potential Buyer’s view of your property – like a garage, shed or cupboard.

If you don’t have anywhere in the house, consider getting a storage unit. Storage facilities are good value and

most will give you complimentary use of a truck or trailer for transporting your things.

Work through the house, clearing out any superfluous items. Don’t make the house seem too bare,

though – leave a selection of items that give a feeling of an inviting home.

STEP 1Prepare your house for sale

4





PLEASING PRESENTATIONAlthough you want to get rid of anything that might distract potential buyers from the great features of your home, you also want to

highlight them and play down any weaknesses. We’re not all interior designers but here are some simple tips on making your home

aesthetically pleasing:

Make sure all your soft furnishings are clean (curtains, cushions, throw rugs etc.). This will make them look (and smell!)

their best.

Make the most of things that can create a colour theme – cushions, throw rugs, vases, hand towels. Choose three

colours for each room and try to stick to them. Usually one colour would act as a base and be a neutral colour (white, cream,

brown, grey). Consider the light in the room when selecting colours – choose light but warm colours for rooms with low natural

light. This article: 5 Tips to Designing a Stylish Shelf Display, has some great ideas for displaying your items in a sophisticated way.

It’s not just WAGs (wives and girlfriends) who appreciate fresh flowers. They add a nice touch to any room.

Just be considerate when you choose the flowers – try not to go for flowers with an overpowering scent (like lilies) so that you

don’t irritate people with allergies! You can also do a scented soap display in bathrooms to provide a nice aroma and some colour.

Reconsider your furniture placement. Clear floor areas give a feeling of space. Try grouping your living room seating to

create conversation areas. Look around the house for a spot that you could turn into an enticing place to curl up and read a book.

Think of it as selling a lifestyle rather than a house and use your furniture to bring that lifestyle to life.

5




SPRING CLEANAs the old adage says, cleanliness is next to godliness. It certainly is in the real estate market, anyway. It is time to have a spring clean

and make your house sparkle. A good clean will make even a tired home look good and will give the property a fresh smell.


6




HERE’S A LIST OF WHAT AREAS TO TACKLE IN YOUR SPRING CLEAN:

Windows and external doors – wipe all the sills, remove any dirt and clean the glass. Pay particular attention to the front

door and its surrounding area. First impressions count!

Kitchen – clean every nook and cranny! Potential buyers will scrutinize the kitchen so make it shine. Clean extractor fans, the

ceiling and ceiling lights – you’ll be surprised at the grime that can build up here! Wipe down all the whiteware (or stainless

steel-ware). Remove anything you have attached to your fridge door – photos, kids’ artwork, school notices. It all has to go to create

a clean, clear space. Wipe down all the cupboard doors.

Bathroom – this is another area that needs particular attention. Once again, clean extractor fans, the ceiling and the ceiling lights.

If you have a shower curtain, give it a wash to freshen it up. Wipe down walls and vanity cupboard doors/drawers.

Carpet and floors – cleaning the carpet can improve the look of a home ten-fold. Give hard floors a scrub and mop. While

you’re down at that level, wipe down the skirting boards to get rid of dust and dirt build up.

Light switch plates and internal doors – go around all the light switches and doors (they’re usually next to each other)

and wipe off all the grubby finger prints. Another area that attracts finger prints is the walls, handrails and balustrades in stairways so

give these areas a wipe down too.


7




Outside areas – don’t forget about the cleaning required outside. Consider hiring a water blaster

to clean off fences, patios, driveways and pathways. This is an easy way to smarten up your outdoor living

spaces. Weed and tidy up gardens, especially those leading to and surrounding the front door. Clear out the

house’s gutters.

FIX IT!

Make sure you attend to any general maintenance. Check all light bulbs are working and change them

if necessary. If the tap is dripping, now is the time to fix it. Check for jobs that need doing outside too.

If the gate is hanging off its hinge, that’s right, fix it!

Take care when doing DIY jobs – stay safe on ladders and use a professional for electrical work.

Traditionally, getting a builder’s report has been the buyer’s responsibility. However, it is worth

considering getting one done yourself so you can fix any issues before the property goes to market.


8




AGENTSFor most of us, buying and selling a property is the largest financial transaction we’ll ever make, so it’s important you have a trusted

professional to help you through the process.

Real estate agents live and breathe property so they know what’s happening out there. An experienced real estate agent knows the

neighbourhood and the buyers, and they take care of all the tricky (boring!) stuff, like marketing and contracts. For the best chance at

a sale at the right price, you can’t beat an experienced agent.

A good agent will take the stress out of selling by keeping you informed and helping you with the decisions you need to make

along the way. Experienced agents are a good source of information for anything to do with the sales process. Usually they will have

trusted tradespeople and businesses they can recommend – from plumbers and electricians to furniture moving companies and

storage facilities.

Rapport and trust are key to any business relationship, so when choosing an agent, trust your instincts. Choose someone with

experience and who you feel comfortable with.

STEP 2Choose an agent

9




HERE ARE SOME QUESTIONS YOU SHOULD ASK WHEN LOOKING FOR AN AGENT: � How long have you been licensed to sell real estate?

� How much experience have you had in selling properties similar to ours?

� How much did these properties sell for and when?

� What is your top and bottom estimate for the sale of our property?

� How much commission do you charge?

� Can you provide the details of a past client for us to contact?

� Can you provide an example of what the marketing schedule might look like?

� How much will advertising in newspapers and online cost?

STEP 2Choose an agent

10




PRICEThere are three options when choosing a pricing strategy:

� Tender

� Auction

� BEO (buyer enquiry over)

Does it really matter which one you choose? YES!

Here’s what you should know about each option...

TENDERWhen a house is for sale by tender, no price is advertised. The tender process lets the market decide the price for the property,

using the RV (ratings valuation) as a guide to where the property sits in terms of price.

Tenders from buyers remain confidential until the closing date, when the seller (vendor) chooses the offer they favour most. The

details of any tender (whether successful or unsuccessful) will not be divulged to any other tenderer or third party. The tenderer

who is chosen is then committed to buying the property and has a set amount of time to meet all of the sale conditions.

The tender process offers a vendor lots of benefits and this is the option I most often recommend. But, of course, every situation is

different so talk to me about what is right for you.

STEP 3Choose a price strategy

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BENEFITS OF SALE BY TENDER:� Having a closing date for all tenders to be in by creates competition and signals commitment from

the buyers.

� The number and quality of the tenders remain confidential so buyers are encouraged to put their

best foot forward – unlike an auction where buyers are able to see the other offers and therefore

only need to offer enough of an increment above the last offer to win, possibly well below the

maximum price they are willing to pay.

� You will receive written offers. If the price is not high enough, negotiation can take place.

� The settlement and possession date is dictated by the vendor.

� Offers cannot be accepted prior to the set date, encouraging the greatest number

of potential buyers to make an offer.


12




AUCTIONAn auction is a public sale in which property is sold to the highest bidder.

Auctions don’t tend to be a popular way to sell a house in the Wellington market.

BENEFITS OF SALE BY AUCTION:� The time frame and sense of urgency that can be created at an auction gives the buyers focus and incentive to act.

� You, the vendor, have control throughout the campaign and can dictate the terms and conditions of sale, including a settlement date

that suits your personal requirements.

� When the highest bid is reached and the auction closes, the sale is unconditional.

� Price will not be an objection and therefore we can establish a buyer’s need to own your property.


13




BEO (BUYER ENQUIRY OVER)The ‘buyer enquiry over’ (BEO) price indicates the minimum price a vendor expects to receive for the sale of

their property. Offers from potential buyers can be presented to the vendor at any time, as opposed to the

tender process or an auction where potential buyers must wait until the tender or auction date.

BENEFITS OF BEO:• A BEO strategy has similar characteristics to that of a tender however it doesn’t have any time

constraints, so offers can be submitted whenever potential buyers are ready to make one.

• Marketing with a BEO gives potential buyers an indication of price and so buyers will know if your

house is in their price budget or not.

• To maintain a competitive element in the sale, when an offer is made under this strategy, other

interested parties are notified giving them an opportunity to make an offer too.

• This pricing strategy enables potential buyers to make an offer as soon as they are ready, unlike for

a tender or auction where the potential buyers must wait for the tender or auction date. Allowing

the potential buyer to make an offer as soon as they want to make one reduces the possibility of

buyers finding another property while they are waiting for the tender or auction date.


14




HANG IN THERE!You can sell your property during a recession and get a great price but it can take time. It can be difficult, especially if you have young children, to live in your home while still keeping it pristine for potential buyers to view. Here are some tips for making it a bit easier :

Swish and swipe – when you use the bathroom in the morning, do a ‘swish and swipe’; swish the toilet bowl with a brush and

some toilet cleaner and swipe the basin and vanity tops with a cloth and a bit of window cleaner. Have a cloth and a spray cleaner in

the shower to give it a quick spritz while you’re in there and wipe out the bath after you’ve used it. It only takes a couple of minutes

and will save you time in those mad minutes after the agent has called and said they’re on their way with a potential buyer!

Kids toys – a good day’s work for a toddler is if their toys are spread as far and wide as possible! It can be difficult to keep it

under control. When you prepare for sale (step 1), pack away as many toys as possible leaving only a select few to play with over

the next few weeks. It will be like Christmas when they open the boxes at your new home and rediscover all their toys. Get some

attractive baskets to put the remaining toys in and put them in an area where your kids like to play. This will help to contain the toys

and you can quickly throw them into the baskets to tidy up. Baskets with lids are the best – they hide everything!

Enlist the help of the whole family – sometimes big kids can be harder to encourage to pick up after themselves. Take

some time to talk to them about what your goals are and how selling your home helps you achieve that. Also explain how keeping

the house tidy helps show it off and will help you get the best price for it. It is a great lesson in commerce! You might be surprised at

how well everyone pulls their weight when they understand why they need to do it.

STEP 4Hang in there!

15




Set up some easy systems – the kitchen is the heart of the home and can attract all the bits and

pieces that keep life pumping – bills, bank statements, school notices, newspapers and newsletters. Creating

an easy filing system will free up kitchen bench space and make it easier to keep the kitchen (and anywhere

else you might leave these things) smart. Stationery stores sell good paper organising items. For example,

divided plastic pockets can keep papers together. Label each tab with things like ‘bills to pay’ and ‘school

notices’ and slide the paper into the relevant section as soon as it comes into the house. This will keep it

neat and you’ll know exactly where the important paperwork is, even amidst the chaos of moving day.

So there it is, four basic steps to getting the best price for your property during a recession – or anytime, really.

So what are you waiting for? Get cracking on step number one and I’ll see you when you get to step number two (or before if you want)!

Happy selling everyone!

STEP 4Hang in there!

16




WHY DID I WRITE THIS E-BOOK?

Now you get a glimpse into the mind of a talking frog – can this e-book get any more exciting??

I wrote this because I’m passionate about guiding people through the exhilarating process that is

selling a property, and seeing them achieve their goals and embark on a new adventure – be it the

adventure of life in a new home or the adventure that comes with a new investment property.

I work with the fabulous team at RE/MAX Leaders, where a powerful brand and a commitment to

being the ‘Leaders in real estate’ provide me with a strong foundation to do what I do best –

sell your home.

If you’ve found this e-book useful, I’ve got a lot more information up my sleeve. So give me a call.

I’d love to discuss your next adventure with you.

All the best!

Lynley McGovern

16




CONTACT ME

Lynley McGovern

15 Brandon Street

PO Box 1747, Wellington

Mobile: 021 325 799

Email: [email protected]

www.leaders.co.nz

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SELLING YOUR HOUSE FOR A PRINCELY SUM

ebook - lynley mcgovern leaders real estate wellington new zealand

Documents

real estate market

real estate agent jokes

good real estate agent

talking frog

family home

current market

elses life enriching

important things