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Free Guide and Free Download on Home Selling - RE/MAX Midlands

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

How to Successfully<br />

Sell Your Property


InterACTIVE book.Links are marked in this colour<br />

Please read a word about navigati<strong>on</strong> - click HE<strong>RE</strong><br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

How to Successfully Sell Your Property<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s<br />

196 Chapel Street, Pietermaritzburg 3200<br />

Republic of South Africa<br />

First Editi<strong>on</strong><br />

Copyright © <strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s 2003<br />

M I D L A N D S<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Rental Department<br />

196 Chapel Street, Pietermaritzburg 3200<br />

P.O. Box 1182, Pietermaritzburg 3200<br />

South Africa<br />

Ph<strong>on</strong>e: 033 - 345 8256 (intl: +27 - 33 - 345 8256)<br />

Fax: 033 - 394 0411 (intl: +27 - 33 - 394 0411)<br />

Web: www.RemaxMidl<str<strong>on</strong>g>and</str<strong>on</strong>g>s.co.za<br />

All rights reserved. No part of this publicati<strong>on</strong> may be reproduced, in any form or by any means, electr<strong>on</strong>ic,<br />

mechanical, photocopying, recording or otherwise, without the prior permissi<strong>on</strong> of the publishers.<br />

This book is distributed subject to the c<strong>on</strong>diti<strong>on</strong> that it shall not, by way of trade or otherwise, be lent, resold, hired<br />

out or otherwise circulated for financial gains without the publisher’s prior c<strong>on</strong>sent in any form of binding or cover<br />

other than that in which it is published <str<strong>on</strong>g>and</str<strong>on</strong>g> without a similar c<strong>on</strong>diti<strong>on</strong> including this c<strong>on</strong>diti<strong>on</strong> being imposed <strong>on</strong> the<br />

subsequent purchaser.


iii<br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

A Word About Navigati<strong>on</strong><br />

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<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

C<strong>on</strong>tents<br />

A Word About Navigati<strong>on</strong> ......................................................................<br />

C<strong>on</strong>tents .........................................................................................................<br />

Preface ..........................................................................................................<br />

Topics:<br />

Iv<br />

Please click <strong>on</strong> the page number to view a given topic<br />

1. Private <strong>Selling</strong> .........................................................................................<br />

2. <strong>Selling</strong> A <strong>Home</strong> is Teamwork ...................................................................<br />

3. Why Do You Need Real Estate Agent? ....................................................<br />

4. Questi<strong>on</strong>s You Should Ask A Real Estate Agent ......................................<br />

5. Property Market ........................................................................................<br />

Marketing Plan ......................................................................................<br />

Market Analysis ....................................................................................<br />

6. Pricing Your Property ...............................................................................<br />

Market Pricing Mechanism ...................................................................<br />

Fair Market Value .................................................................................<br />

Key Points in Pricing .............................................................................<br />

Pricing to Sell .......................................................................................<br />

Effects of Overpricing ...........................................................................<br />

10 Advantages of Correct Pricing ........................................................<br />

7. House Show .............................................................................................<br />

How to Prepare Your House for the Show ..............................................<br />

What to Do During the Show ................................................................<br />

8. Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice ........................................................................................<br />

What Makes A Listing Saleable? .........................................................<br />

10 Point System to Get Your <strong>Home</strong> Sold ..............................................<br />

40 Tips to Add Extra Appeal to Your <strong>Home</strong> ..........................................<br />

Seller's Checklist ..................................................................................<br />

10 Most Comm<strong>on</strong> Mistakes Sellers Make ...........................................<br />

When An Offer Is Made .........................................................................<br />

9. <strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers ...............................................................<br />

Becoming A <strong>RE</strong>/<strong>MAX</strong> Client .................................................................<br />

<strong>RE</strong>/<strong>MAX</strong> Agents' Qualificati<strong>on</strong>s ............................................................<br />

<strong>RE</strong>/<strong>MAX</strong> Market Reach .........................................................................<br />

Where does <strong>RE</strong>/<strong>MAX</strong> Get Buyers? ......................................................<br />

Why do You Save with <strong>RE</strong>/<strong>MAX</strong>? ..........................................................<br />

<strong>RE</strong>/<strong>MAX</strong> Commitment to You ................................................................<br />

Is Sole M<str<strong>on</strong>g>and</str<strong>on</strong>g>ate A Good Opti<strong>on</strong>? ........................................................<br />

Page iii<br />

Page iv<br />

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Page 43<br />

C<strong>on</strong>tact .......................................................................................................... Page 43<br />

C<strong>on</strong>tents<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


5<br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Preface<br />

Your home is more than just a house.<br />

Preface<br />

It is a place where you experience the most intimate moments. It is a shelter for<br />

you <str<strong>on</strong>g>and</str<strong>on</strong>g> your beloved <strong>on</strong>es. It has a history written in your memory <str<strong>on</strong>g>and</str<strong>on</strong>g> heart.<br />

Your home is a lifetime investment coupled with the str<strong>on</strong>gest sentimental ties.<br />

We underst<str<strong>on</strong>g>and</str<strong>on</strong>g> that it deserves to be sold for the best price <str<strong>on</strong>g>and</str<strong>on</strong>g> with the least<br />

inc<strong>on</strong>venience to you.<br />

Our Seller's <str<strong>on</strong>g>Guide</str<strong>on</strong>g> makes prepares you for selling your home at the best<br />

price. It explains pricing strategy, market reality, proper promoti<strong>on</strong>, agent's<br />

involvement, different costs involved <str<strong>on</strong>g>and</str<strong>on</strong>g> gives many tips <strong>on</strong> how to prepare<br />

your house to impress buyers.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


6<br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Private <strong>Selling</strong><br />

Do you anticipate selling privately in<br />

order to pocket the "savings" by not<br />

paying commissi<strong>on</strong>? If you do, please<br />

answer the following questi<strong>on</strong>s:<br />

Private Sellers vs. Agents<br />

Under what c<strong>on</strong>diti<strong>on</strong>s will strangers<br />

be permitted to enter your home?<br />

Who will "Show" your home?<br />

How much will you budget for<br />

advertising?<br />

Who will write the adverts for your property <str<strong>on</strong>g>and</str<strong>on</strong>g> place them?<br />

Will you hire, make or buy signs?<br />

When will you advertise, <str<strong>on</strong>g>and</str<strong>on</strong>g> how often?<br />

How much deposit do you require?<br />

Who will ask the buyers for the deposit?<br />

Who would credit check the buyer <str<strong>on</strong>g>and</str<strong>on</strong>g> the agreement?<br />

At what point would you use a lawyer?<br />

How will you qualify the buyer financially?<br />

Buyers today buy by comparing other homes. Who will discuss these with<br />

buyers?<br />

Buyers may be reluctant to tell what they d<strong>on</strong>'t like about your home. How<br />

would you deal with any objecti<strong>on</strong> they may have?<br />

Buyers need to be followed up. How would you do this without appearing<br />

anxious to sell?<br />

What special c<strong>on</strong>diti<strong>on</strong>s do you want?<br />

Do you have a pre-approval certificate?<br />

Legally, how is the property described <str<strong>on</strong>g>and</str<strong>on</strong>g> where are the title deeds located?<br />

How much will transfer costs be?<br />

What will the buyers m<strong>on</strong>thly payments be?<br />

How l<strong>on</strong>g will you give the buyer to secure finance?<br />

Should you rather leave selling your home to a professi<strong>on</strong>al?<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

7<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online<br />

<strong>Selling</strong> A <strong>Home</strong> Is Teamwork<br />

<strong>Selling</strong> a home quickly <str<strong>on</strong>g>and</str<strong>on</strong>g> for the highest price<br />

possible is achieved with:<br />

A plan of acti<strong>on</strong><br />

Co-operati<strong>on</strong> between motivated seller<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> a professi<strong>on</strong>al estate agent<br />

The table below illustrates how seller <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

agent cooperate:<br />

<strong>Selling</strong> A <strong>Home</strong> is Teamwork<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

8<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online<br />

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<strong>Selling</strong> <strong>Home</strong> is A Teamwork


9<br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Why Real Estate Agent?<br />

Beware of agents who will, at first, suggest a very high price, then after they have<br />

your listing, work the price down!<br />

Never select agents based <strong>on</strong> the price they give you, but rather <strong>on</strong> the accurate<br />

informati<strong>on</strong> they supply to you <str<strong>on</strong>g>and</str<strong>on</strong>g> their ability to market your home to get you<br />

the best results!<br />

A good real estate agent is a trained professi<strong>on</strong>al who cares about selling<br />

your home at the best price that the market can bear.<br />

Look at the table below. It illustrates savings that you make by using an agent:<br />

What does Save M<strong>on</strong>ey when Using An Agent?<br />

Higher sales price from a qualified agent .......................................<br />

Quicker sales save extra b<strong>on</strong>d payments, rates <str<strong>on</strong>g>and</str<strong>on</strong>g> insurances ........<br />

Legal fees .....................................................................................<br />

Advertising, signs, flags etc. ..........................................................<br />

Needless repairs <str<strong>on</strong>g>and</str<strong>on</strong>g> expenses .......................................................<br />

Quicker transfer <str<strong>on</strong>g>and</str<strong>on</strong>g> cancellati<strong>on</strong> of b<strong>on</strong>d, etc. ...............................<br />

Owner's time .................................................................................<br />

Why Real Estate Agent?<br />

Total:<br />

% Saving<br />

3 - 9.5%<br />

1 - 2%<br />

1 - 3%<br />

1 - 2%<br />

1.5 - 2%<br />

1.5 - 2%<br />

1.25 - 1.5%<br />

10.25 - 22%<br />

When savings are measured against the agent's fees of 7%, it almost pays to use<br />

an agent! Not all these costs will be evident in every transacti<strong>on</strong>, but a large part<br />

of them will be present.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


10<br />

Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Questi<strong>on</strong>s You<br />

Should Ask<br />

A Real Estate<br />

Agent<br />

Interview your estate agent first -<br />

ask him a few key questi<strong>on</strong>s...<br />

Questi<strong>on</strong>s You Should Ask A Real Estate Agent<br />

How many years of experience<br />

have you had in Real Estate?<br />

Give the names <str<strong>on</strong>g>and</str<strong>on</strong>g> addresses of three recent satisfied sellers whose homes<br />

you have helped to sell<br />

How many of your listings sell per m<strong>on</strong>th?<br />

What market share do you or your company take in this area?<br />

Give a track record of quick sales<br />

How many showdays do you do per m<strong>on</strong>th?<br />

What awards or recogniti<strong>on</strong> has your company received?<br />

What can you say about your company's credibility?<br />

Do you have a marketing plan?<br />

What is your average listing to selling ratio?<br />

What is your average difference between "asking price" <str<strong>on</strong>g>and</str<strong>on</strong>g> "selling price"?<br />

How will you communicate with me during the listing period?<br />

How will my property be advertised?<br />

What "home selling process" do you follow?<br />

What do I need to do to assist in getting the property sold?<br />

What other homes have you sold?<br />

How does my property compare with the competiti<strong>on</strong>?<br />

How will you report back to me after the showhouse?<br />

Do you have any references or testim<strong>on</strong>ials?<br />

Do you prepare a CMA (Comparative Market Analysis) <strong>on</strong> my property?<br />

Do you give a service guarantee?<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Marketing Plan<br />

Property Market<br />

To assure that your property is marketed to<br />

its fullest potential <str<strong>on</strong>g>and</str<strong>on</strong>g> to obtain the highest<br />

possible market value, a real estate agent<br />

should prepare a marketing plan for you.<br />

The plan must be explained to you in<br />

detail, <str<strong>on</strong>g>and</str<strong>on</strong>g> should include the following<br />

undertakings:<br />

Prepare CMA (Comparative Market<br />

Analysis) to establish fair market value<br />

Prepare <str<strong>on</strong>g>and</str<strong>on</strong>g> sign listing agreement<br />

Place "For Sale" sign <strong>on</strong> property<br />

Schedule property for office tour<br />

Mail "Just Listed" fliers to neighbourhood<br />

Place "Open House" advert in local paper<br />

Ph<strong>on</strong>e all potential buyers with details of listing<br />

Hold "Open House"<br />

Arrange showing for other agents<br />

C<strong>on</strong>tact you regularly with verbal progress reports<br />

Prepare <str<strong>on</strong>g>and</str<strong>on</strong>g> deliver Marketing Service Report to owner<br />

Negotiate the transacti<strong>on</strong> with other agent<br />

Finalise the sales c<strong>on</strong>tract<br />

C<strong>on</strong>firm that all c<strong>on</strong>tingencies <strong>on</strong> sales c<strong>on</strong>tract are completed<br />

Finalise the transfer<br />

Arrange for relocati<strong>on</strong> agent, if required<br />

Arrange for moving company<br />

Other services...<br />

Property Market<br />

We are committed to offer the highest st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard of professi<strong>on</strong>al service to all our<br />

customers. The Marketing Plan is a st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard document prepared for each seller<br />

who elects a <strong>RE</strong>/<strong>MAX</strong> agent. We follow the plan meticulously.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Market Analysis<br />

The correct selling price of a home is the highest price the<br />

market will bear. To assist you in determining the correct<br />

asking price, <strong>RE</strong>/<strong>MAX</strong> provides you with a comprehensive<br />

market analysis of comparable properties that have been<br />

recently offered for sale in your neighbourhood.<br />

This analysis is based strictly <strong>on</strong> homes that can be<br />

c<strong>on</strong>sidered similar to yours, <str<strong>on</strong>g>and</str<strong>on</strong>g> is specially prepared for<br />

you over a few days.<br />

Our comprehensive property market analysis is divided<br />

into three categories:<br />

1. Similar properties that are currently listed<br />

2. Similar properties that have recently sold<br />

3. Similar properties that failed to sell<br />

Be careful when studying the comparable property<br />

locati<strong>on</strong>s, features <str<strong>on</strong>g>and</str<strong>on</strong>g> the terms under which they are<br />

offered, so that we can develop a clear picture of the<br />

potential value of your property.<br />

Property Market<br />

By looking at the properties currently listed, we can see exactly what<br />

alternatives a serious buyer has to choose from. We can be certain that we are<br />

not under-pricing the property.<br />

By looking at similar properties recently sold, we can see what home owners<br />

have actually received over the last few m<strong>on</strong>ths. This is the acid test that is<br />

used by lending instituti<strong>on</strong>s to determine how much they will be willing to<br />

lend a buyer for your home.<br />

While we naturally want top market value for the home, we can agree that<br />

there's a point where the price will be too high. By looking at homes that<br />

didn't sell, we can accurately determine that price point <str<strong>on</strong>g>and</str<strong>on</strong>g> be careful not<br />

to get too close to it. By doing our homework diligently, we can get<br />

maximum R<str<strong>on</strong>g>and</str<strong>on</strong>g>s in a reas<strong>on</strong>ably short period of time.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Market Pricing Mechanism<br />

Pricing Your Property<br />

Pricing Your Property<br />

All homes <strong>on</strong> the market in any specific price frame can be divided into 3 categories:<br />

GROUP A<br />

Estimated percentage of<br />

homes in this category:<br />

10% - 15%<br />

Descriptive words:<br />

Urgent sale required<br />

Will sell within 30<br />

days<br />

Perceived good value<br />

Enthusiastic estate<br />

agents<br />

Competing quality<br />

buyers<br />

Secure finance for<br />

buyer<br />

Shown to every<br />

serious buyer in the<br />

market<br />

Showday material<br />

Extensively<br />

advertised <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

marketed<br />

Agent's reputati<strong>on</strong> at<br />

stake if property<br />

remains unsold in<br />

reas<strong>on</strong>able m<str<strong>on</strong>g>and</str<strong>on</strong>g>ate<br />

period<br />

Inclusi<strong>on</strong> into agent's<br />

primary "hot list" of<br />

properties<br />

GROUP B<br />

Estimated percentage of<br />

homes in this category:<br />

25% - 35%<br />

Descriptive words:<br />

Would like a sale<br />

Sell within 90 days<br />

provided price is<br />

revised<br />

Best chance of a<br />

sale is to a 'subject<br />

to' buyer who most<br />

likely requires<br />

unrealistic price <strong>on</strong><br />

his property<br />

Most likely group to<br />

move to 'A' category<br />

as time becomes a<br />

factor<br />

Agent unlikely to<br />

invest in advertising<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> marketing<br />

Limited exposure to<br />

quality buyers<br />

GROUP C<br />

Estimated percentage of<br />

homes in this category:<br />

50% - 65%<br />

Descriptive words:<br />

No urgency to sell<br />

No specific time<br />

factor<br />

Overpriced<br />

Agents use as<br />

'stepping st<strong>on</strong>e' to<br />

better valued<br />

properties<br />

Seller determines<br />

price <strong>on</strong> future needs<br />

instead of<br />

comparative value<br />

Viewed primarily by<br />

low key buyers<br />

Viewings c<strong>on</strong>ducted<br />

<strong>on</strong>ly as last resort<br />

Buyer's finance<br />

problematic in<br />

unlikely event of a<br />

sale<br />

Not recommended by<br />

agent as he/she builds<br />

trust <str<strong>on</strong>g>and</str<strong>on</strong>g> respect with<br />

new buyer<br />

Requires 2, 3 or even<br />

4 price reducti<strong>on</strong>s<br />

before sale is likely<br />

Becomes stale <strong>on</strong> the<br />

market <str<strong>on</strong>g>and</str<strong>on</strong>g> forgotten<br />

(lost) over time<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Pricing Your Property<br />

The situati<strong>on</strong> <strong>on</strong> the property market <str<strong>on</strong>g>and</str<strong>on</strong>g> the pace of sales can be compared to<br />

a c<strong>on</strong>veyor belt - look at the diagram below:<br />

Speed at which c<strong>on</strong>veyor belt moves (i.e. pace of sales) is determined by<br />

unc<strong>on</strong>trollable factors, the most significant of which are:<br />

Affordability: b<strong>on</strong>d rate, surplus disposable income, prospect of salary<br />

increases etc.<br />

C<strong>on</strong>fidence: job security, mood of the ec<strong>on</strong>omy (influenced by media in general<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> micro envir<strong>on</strong>ment of each prospective purchaser in particular), level of<br />

crime, 'capital status', pace of development (new projects) etc.<br />

Other explanati<strong>on</strong>s to the diagram:<br />

New listings (properties offered for sale) are immediately categorised by estate<br />

agents <str<strong>on</strong>g>and</str<strong>on</strong>g> informed buyers into <strong>on</strong>e of three categories: A, B or C.<br />

Placement into a particular group has nothing to do with time <strong>on</strong> the market<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> everything to do with perceived value!<br />

Seller has ultimate decisi<strong>on</strong> into which category the listed property will be<br />

placed.<br />

As time becomes more relevant for the seller so he/she will adjust price<br />

downwards <str<strong>on</strong>g>and</str<strong>on</strong>g>, subsequently, the property will move from group C to group<br />

B or A.<br />

Not all listings start in group C <str<strong>on</strong>g>and</str<strong>on</strong>g> progress over time to group A. Sometimes<br />

well informed new sellers will place their well-priced homes into group A at<br />

the outset. C<strong>on</strong>versely, many sellers remain in group C indefinitely with no<br />

chance of a sale.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Fair Market Value<br />

When selling your home, you<br />

want to achieve the following<br />

results:<br />

Your home is sold for the<br />

best price<br />

Your home is sold in the<br />

shortest time<br />

Your home is sold with<br />

the most favourable<br />

terms <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>diti<strong>on</strong>s<br />

Pricing Your Property<br />

To reach the goals above, your property should be priced right, i.e. it should<br />

have a fair market value.<br />

Major Factors Affecting Value<br />

Supply <str<strong>on</strong>g>and</str<strong>on</strong>g> dem<str<strong>on</strong>g>and</str<strong>on</strong>g><br />

Seas<strong>on</strong>al markets<br />

Mortgage market<br />

C<strong>on</strong>diti<strong>on</strong>s<br />

Political acti<strong>on</strong>s<br />

Locati<strong>on</strong>, locati<strong>on</strong>, locati<strong>on</strong><br />

Methods of Evaluati<strong>on</strong><br />

Market value approach<br />

(comparable property sales)<br />

Income approach (investment or<br />

income producing properties)<br />

Cost approach (most useful <strong>on</strong><br />

new properties when<br />

replacement values are readily<br />

determinable)<br />

We'll do it right! Our Comparative Market Analysis (CMA) will c<strong>on</strong>sider the<br />

factors above <str<strong>on</strong>g>and</str<strong>on</strong>g> lead us to listing your property right - from the beginning.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Key Points in Pricing<br />

There is generally <strong>on</strong>ly <strong>on</strong>e reas<strong>on</strong> a<br />

property doesn't sell - PRICE.<br />

The following key points will help<br />

you to come to the right price for your<br />

property:<br />

Improve marketability of your<br />

property by pricing right<br />

Price is the most important<br />

negotiati<strong>on</strong> factor to the buyer<br />

Price compensates for properties<br />

shortfalls or inadequacies<br />

Interest sells houses - not time<br />

Because initial market time is<br />

critical - like a shelf life of freshly<br />

baked bread - avoid overexposure<br />

Pricing Your Property<br />

Combine realistic asking price<br />

with initial surge of interest<br />

Choose agent <strong>on</strong> competence - not <strong>on</strong> "promised" price<br />

Buyers buy by comparis<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> eliminati<strong>on</strong><br />

Buyers compare price <str<strong>on</strong>g>and</str<strong>on</strong>g> value for m<strong>on</strong>ey<br />

Buyers are generally more educated <strong>on</strong> market with realistic pricing<br />

You have <strong>on</strong>ly <strong>on</strong>e chance to make "first impressi<strong>on</strong>" <strong>on</strong> buyer<br />

D<strong>on</strong>'t eliminate buyers by outpricing them<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

The Seller <str<strong>on</strong>g>and</str<strong>on</strong>g> the Agent have three shared goals:<br />

1<br />

Goal 1 Price<br />

2<br />

Goal 2 Time<br />

3<br />

Goal 3 Comfort<br />

Pricing to Sell<br />

Sell at the highest price<br />

Sell quickly<br />

1. <strong>Home</strong> Pricing - A Critical Factor<br />

Sell c<strong>on</strong>veniently minimising problems<br />

Pricing Your Property<br />

Never select an agent based <strong>on</strong> price. The agent has no c<strong>on</strong>trol over the market,<br />

but <strong>on</strong>ly over the marketing plan. Base your selecti<strong>on</strong> of agent <strong>on</strong> the competence<br />

of the pers<strong>on</strong>, <str<strong>on</strong>g>and</str<strong>on</strong>g> the services provided. D<strong>on</strong>'t allow or encourage agent to<br />

"build up" the price in order to get your m<str<strong>on</strong>g>and</str<strong>on</strong>g>ate.<br />

The value of a home is determined by what a willing buyer will pay a willing<br />

seller.<br />

The amount of time a house is <strong>on</strong> the market affects the price. If a house is<br />

overpriced initially, then it has a good chance of selling below the market price.<br />

The reas<strong>on</strong> for this is that by the time the house price is reduced to a fair <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

reas<strong>on</strong>able selling price, it has become overexposed, <str<strong>on</strong>g>and</str<strong>on</strong>g> has begun to raise<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Pricing Your Property<br />

questi<strong>on</strong>s in the buyers' minds... What is wr<strong>on</strong>g with it? Why did nobody offer<br />

<strong>on</strong> it? These are just some of the dangers of overpricing.<br />

Remember! The wr<strong>on</strong>g price attracts the wr<strong>on</strong>g buyers, <str<strong>on</strong>g>and</str<strong>on</strong>g> the right buyers<br />

will not see the property!<br />

2. Price versus Time<br />

Prices in the real estate market rise <str<strong>on</strong>g>and</str<strong>on</strong>g> fall over time. Whether a Seller’s<br />

market as we have today, correct pricing is absolutely critical since the market<br />

w<strong>on</strong>'t absorb an overpriced home within a reas<strong>on</strong>able time. The result is that<br />

the l<strong>on</strong>ger an overpriced home is <strong>on</strong> the market, the less likely the seller will<br />

be to obtain his asking price.<br />

3. Seller's C<strong>on</strong>trol versus Agent's C<strong>on</strong>trol<br />

The Seller C<strong>on</strong>trols<br />

MARKETABILITY<br />

Price<br />

Terms<br />

Time<br />

C<strong>on</strong>diti<strong>on</strong><br />

4. Buyers Buy in Brackets<br />

The Agent C<strong>on</strong>trols the<br />

MARKETING<br />

How saleable do you want to<br />

make your home?<br />

R160.000 buyers will never see the home priced at R170.000<br />

R170.000 buyers often will not make an offer <strong>on</strong> a R160.000 value home,<br />

even for R160.000<br />

You can always come down, true.<br />

They can always make an offer, true.<br />

But not likely!<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

5. Maximum Exposure<br />

Pricing Your Property<br />

The diagram below illustrates how many buyers will see your property depending<br />

<strong>on</strong> the asking price:<br />

(Percentages are used for illustrati<strong>on</strong> purposes <strong>on</strong>ly)<br />

Pricing your property as close to the centre of the triangle as possible will<br />

guarantee maximum exposure <str<strong>on</strong>g>and</str<strong>on</strong>g> the best price for your property.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Effects of Overpricing<br />

Pricing Your Property<br />

Overpricing creates impressi<strong>on</strong> of bad value <str<strong>on</strong>g>and</str<strong>on</strong>g> lowers level of buyer activity.<br />

Subsequently, marketing time extends.<br />

Effect of Overpricing <strong>on</strong> Buyer Activity<br />

Overpricing over-exposes property <str<strong>on</strong>g>and</str<strong>on</strong>g> makes competing home look more<br />

attractive. Subsequently, price reducti<strong>on</strong>s are necessary.<br />

Effect of Overpricing <strong>on</strong> <strong>Selling</strong> Price<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Pricing Your Property<br />

Pricing your home above levels that the market can bear will trigger off an<br />

overpricing cycle - look at the diagram below:<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

10 Advantages of Correct Pricing<br />

1.<br />

2.<br />

3.<br />

4.<br />

5.<br />

6.<br />

7.<br />

8.<br />

9.<br />

10.<br />

Faster sale<br />

Impressi<strong>on</strong> of good value<br />

Less inc<strong>on</strong>venience<br />

Maximum exposure during initial<br />

3 weeks<br />

Exposure to more buyers<br />

Marketing period minimised<br />

Least disrupti<strong>on</strong><br />

Increased advertising resp<strong>on</strong>se<br />

Stimulati<strong>on</strong> of buyers' interest<br />

Attracti<strong>on</strong> of high offers<br />

Pricing Your Property<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

House Show<br />

How to Prepare Your House<br />

for the Show<br />

It is very important that your<br />

home shows well. We are also<br />

aware that it cannot always be<br />

perfect. After all, you <str<strong>on</strong>g>and</str<strong>on</strong>g> your<br />

family must live there too.<br />

Develop a routine that will allow<br />

you to pick up <str<strong>on</strong>g>and</str<strong>on</strong>g> be prepared<br />

for show in a reas<strong>on</strong>able period<br />

without duress - a 45 minute<br />

countdown, for example.<br />

House Show<br />

This means that certain things must be d<strong>on</strong>e in advance. For example, beds<br />

should be made up first thing in the morning <str<strong>on</strong>g>and</str<strong>on</strong>g> dirty dishes placed in the<br />

dishwasher after use so that you d<strong>on</strong>'t need to rush around attending to those<br />

matters at the last moment. This way you can prepare for each showing in an<br />

organised fashi<strong>on</strong>.<br />

Below is the list of things that you should do before each showing:<br />

1. Pick Up Every Room<br />

Check counters, floors, halls <str<strong>on</strong>g>and</str<strong>on</strong>g> stairs. Straighten up or remove newspapers,<br />

magazines, mail, toys, clothing, recreati<strong>on</strong> gear, snack glasses <str<strong>on</strong>g>and</str<strong>on</strong>g> dishes.<br />

2. Turn On All Lights<br />

Even those in toilets <str<strong>on</strong>g>and</str<strong>on</strong>g> storage rooms. Electric lights have an amazing<br />

capability for creating an illusi<strong>on</strong> of lightness, airiness <str<strong>on</strong>g>and</str<strong>on</strong>g> largeness.<br />

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3. Open All Drapes, Shades <str<strong>on</strong>g>and</str<strong>on</strong>g> Blinds<br />

Do all that you can to create a bright <str<strong>on</strong>g>and</str<strong>on</strong>g> light ambience<br />

4. The Bedrooms<br />

House Show<br />

Make up the beds, neatly <str<strong>on</strong>g>and</str<strong>on</strong>g> attractively, early in the morning. This is a job<br />

you d<strong>on</strong>'t want to have to do when you learn that the buyers will be there<br />

within the hour.<br />

5. The Kitchen<br />

Be sure all countertops are clear <str<strong>on</strong>g>and</str<strong>on</strong>g> "squeaky clean". Wipe down appliances.<br />

Be sure all dishes are in the dishwasher or cleaned <str<strong>on</strong>g>and</str<strong>on</strong>g> put away. The sink<br />

should be clear <str<strong>on</strong>g>and</str<strong>on</strong>g> clean.<br />

6. Clean Air<br />

Keep air fresheners in toilets, bathrooms <str<strong>on</strong>g>and</str<strong>on</strong>g> kitchen. Be especially careful<br />

to keep kitchen odours fresh: coffee brewing or a cinnam<strong>on</strong> coffee cake<br />

baking in the oven have a lasting, inviting effect.<br />

7. Music<br />

Perhaps you cannot have something baking in the oven every time, but soft,<br />

pleasant background music may be very effective.<br />

8. Fireplace<br />

A warm, cozy fire may be just the extra touch that turns the trick.<br />

9. Airc<strong>on</strong>diti<strong>on</strong>ing<br />

If the weather is warm <str<strong>on</strong>g>and</str<strong>on</strong>g> sultry, have the airc<strong>on</strong>diti<strong>on</strong>ing operating.<br />

10. The Bathrooms<br />

Keep a set of fresh attractive towels in each bathroom that you can change<br />

instantly.<br />

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11. The Entryway<br />

House Show<br />

It is the first <str<strong>on</strong>g>and</str<strong>on</strong>g> last impressi<strong>on</strong> that your buyers will have of your home -<br />

make it a good <strong>on</strong>e! Check it regularly for sharpness.<br />

12. Other Helpful Tips<br />

General:<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> repair windows<br />

Replace burned out lights (interior <str<strong>on</strong>g>and</str<strong>on</strong>g> exterior)<br />

Repair cracked plaster (interior <str<strong>on</strong>g>and</str<strong>on</strong>g> exterior)<br />

Cut lawn <str<strong>on</strong>g>and</str<strong>on</strong>g> shrubs <str<strong>on</strong>g>and</str<strong>on</strong>g> pick up litter<br />

Touch up chipped paint (interior <str<strong>on</strong>g>and</str<strong>on</strong>g> exterior)<br />

Repair gutters <str<strong>on</strong>g>and</str<strong>on</strong>g> eaves<br />

Oil squeaky doors (interior <str<strong>on</strong>g>and</str<strong>on</strong>g> exterior)<br />

Tighten door knobs (interior <str<strong>on</strong>g>and</str<strong>on</strong>g> exterior)<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> tidy entrance<br />

Spic 'n Span:<br />

Shampoo carpets<br />

Clean washer, dryer <str<strong>on</strong>g>and</str<strong>on</strong>g> tubs<br />

Clean fridge <str<strong>on</strong>g>and</str<strong>on</strong>g> stove<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> freshen bathrooms<br />

The Spacious Look:<br />

Clear stairs <str<strong>on</strong>g>and</str<strong>on</strong>g> halls<br />

Store excess furniture<br />

Clear counters <str<strong>on</strong>g>and</str<strong>on</strong>g> stove<br />

Make closets neat <str<strong>on</strong>g>and</str<strong>on</strong>g> tidy<br />

The Spacious Look:<br />

Keep dogs outside <str<strong>on</strong>g>and</str<strong>on</strong>g> get rid of all pet odours<br />

Be absent during showings<br />

Prepare well for your showings! Set the stage to make the best impressi<strong>on</strong> <strong>on</strong><br />

each prospective buyer.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

What to Do During the Show<br />

Everything is going to be fine. The agent has<br />

called in advance <str<strong>on</strong>g>and</str<strong>on</strong>g> you have made your last<br />

minute preparati<strong>on</strong>s as indicated in "How to<br />

Prepare Your House for the Show" (click here).<br />

1. Relax<br />

There is nothing more to do. Pick up a<br />

magazine while you are waiting. Try to be<br />

underst<str<strong>on</strong>g>and</str<strong>on</strong>g>ing: the agent may have several<br />

home showings scheduled <str<strong>on</strong>g>and</str<strong>on</strong>g> he or she may<br />

be a bit early or late.<br />

2. The Dog<br />

House Show<br />

Keep Fido away. Pet lovers will be distracted by your fun pet. For those who<br />

do not have pets, it may be bothersome.<br />

3. Children should be Seen <str<strong>on</strong>g>and</str<strong>on</strong>g> not Heard<br />

This is a new experience for the kids. Naturally, they are excited, but they<br />

will disturb the professi<strong>on</strong>al flow of the showing. Ask them to remain away<br />

from the agent <str<strong>on</strong>g>and</str<strong>on</strong>g> buyers, to go outside or watch TV.<br />

4. Ding D<strong>on</strong>g<br />

Answer the door as you would for any welcome guest. The agent will take<br />

care of the introducti<strong>on</strong>s. If there is a situati<strong>on</strong> that needs menti<strong>on</strong>ing, perhaps<br />

a sick child in the sec<strong>on</strong>d bedroom, do so now. You may invite the agent to<br />

begin showing the home <str<strong>on</strong>g>and</str<strong>on</strong>g> then you may excuse yourself.<br />

5. Low Profile<br />

Discreetly remain away from the buyers. As helpful as you wish to be, your<br />

presence will be intimidating. They need to be able to discuss the home<br />

freely with <strong>on</strong>e another. And the agent needs to learn from the buyers how<br />

they are resp<strong>on</strong>ding to your home. Your presence can limit that free<br />

communicati<strong>on</strong>.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

6. What should You Do?<br />

House Show<br />

Read a magazine; watch a TV programme; take a walk outside; c<strong>on</strong>tinue<br />

with a chore. Pick a room <str<strong>on</strong>g>and</str<strong>on</strong>g> settle down. When they stop to preview that<br />

room, you may leave, but it's not really necessary. After all, they d<strong>on</strong>'t want<br />

to feel that they are chasing you around the house. If there's a room that you<br />

should try not to be in, it would be the kitchen since buyers - generally -<br />

spend more time there as they evaluate appliances, counter space, cabinets<br />

etc.<br />

7. C<strong>on</strong>versing with the Buyers<br />

If you are asked a questi<strong>on</strong> about a neighbourhood, schools etc., by all means<br />

answer pleasantly. However, avoid being engaged in a c<strong>on</strong>versati<strong>on</strong>.<br />

Questi<strong>on</strong>s regarding terms of sale should be referred to the agent. If the<br />

agent is a cooperating broker <str<strong>on</strong>g>and</str<strong>on</strong>g> does not have the answers, advise him<br />

that your agent will c<strong>on</strong>tact him.<br />

8. Inclusi<strong>on</strong>s<br />

The listing sheet should clearly identify items that are included <str<strong>on</strong>g>and</str<strong>on</strong>g> excluded<br />

in the offered property. D<strong>on</strong>'t initiate c<strong>on</strong>versati<strong>on</strong>s about other pers<strong>on</strong>al<br />

property that you may be interested in negotiating. It rarely is a deal clincher,<br />

may be distracting, <str<strong>on</strong>g>and</str<strong>on</strong>g> besides, there will be a time to discuss this when the<br />

offer is presented.<br />

9. Let the "Pro" Work<br />

As much as you love your home, d<strong>on</strong>'t be tempted into doing the agent's job.<br />

He has been working with the buyers <str<strong>on</strong>g>and</str<strong>on</strong>g> should know what is important<br />

to them. Whether the agent menti<strong>on</strong>s your new refrigerator now, or after<br />

they leave, is in his h<str<strong>on</strong>g>and</str<strong>on</strong>g>s.<br />

You have d<strong>on</strong>e all that you can. Now, relax as we do our job. So<strong>on</strong>, we will be<br />

calling you to say: "C<strong>on</strong>gratulati<strong>on</strong>s! We have an offer to present to you."<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

What Makes A Listing Saleable?<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

The most important factor in making a listing saleable is the seller's motivati<strong>on</strong>.<br />

All other aspects result directly from this motivati<strong>on</strong>:<br />

10 Point System to Get Your <strong>Home</strong> Sold<br />

1. Three m<strong>on</strong>th m<str<strong>on</strong>g>and</str<strong>on</strong>g>ate, renewable if<br />

service is good<br />

2. Choose an odd sale price within 10%<br />

of the market value<br />

3. Sign a "Sole M<str<strong>on</strong>g>and</str<strong>on</strong>g>ate" with the best<br />

agent or firm<br />

4. If not sold in 30 days, price is<br />

adjusted 5% every 30 days to bring<br />

it to the suggested market value<br />

5. Postdated price adjustments<br />

6. Easy access for agents<br />

7. Occupati<strong>on</strong> date to be provided by<br />

mutual agreement<br />

8. Seller agrees to follow any recommendati<strong>on</strong>s to make property more saleable<br />

9. Agent to c<strong>on</strong>tact seller weekly to update activity<br />

10. If we get a clean offer within 5% of suggested market value, that will<br />

c<strong>on</strong>stitute a valid <str<strong>on</strong>g>and</str<strong>on</strong>g> acceptable offer<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

40 Tips to Add Extra<br />

Appeal to Your <strong>Home</strong><br />

These suggesti<strong>on</strong>s are<br />

provided to assist you in<br />

selling your home more<br />

quickly <str<strong>on</strong>g>and</str<strong>on</strong>g> at a better price.<br />

You never get a sec<strong>on</strong>d<br />

chance at making the first<br />

impressi<strong>on</strong>...<br />

Take a l<strong>on</strong>g hard look at<br />

your home using the<br />

following quick checklist:<br />

Maintenance:<br />

Oil squeaky doors<br />

Tighten door knobs<br />

Replace blown lights<br />

Replace or repair windows<br />

Touch up chipped pain<br />

Repair cracked plaster<br />

Repair leaking taps/toilets<br />

Repair grouting around bath/basin<br />

Cleanliness:<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> freshen carpets<br />

Clean sink <str<strong>on</strong>g>and</str<strong>on</strong>g> dirty dishes<br />

Keep curtains crisp <str<strong>on</strong>g>and</str<strong>on</strong>g> clean<br />

Clean fridge <str<strong>on</strong>g>and</str<strong>on</strong>g> stove<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> freshen bathrooms/toilets<br />

Clean all windows<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

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The First Impressi<strong>on</strong>:<br />

Clean <str<strong>on</strong>g>and</str<strong>on</strong>g> tidy entrance<br />

Ensure that doorbell is working<br />

Check <strong>on</strong> functi<strong>on</strong>ing of security system<br />

Open curtains/windows to let the sun in<br />

Avoid children tagging al<strong>on</strong>g<br />

Leave showing to agent<br />

Let agent discuss price, terms etc.<br />

Outside Appeal:<br />

Cut lawn<br />

Trim shrubs <str<strong>on</strong>g>and</str<strong>on</strong>g> lawns<br />

Pick up any litter<br />

Rid driveway of leaves, stains etc.<br />

Repair gutters, eaves etc.<br />

Touch up exterior paint<br />

Weed <str<strong>on</strong>g>and</str<strong>on</strong>g> edge garden<br />

Swimming pool must sparkle<br />

Creating A Buying Mood:<br />

Be absent during showing<br />

Turn <strong>on</strong> all the lights<br />

Add charm with fresh flowers<br />

Open drapers in the day time<br />

Play quiet background music<br />

Never apologise for the appearance<br />

That Spacious Look:<br />

Clean stairs <str<strong>on</strong>g>and</str<strong>on</strong>g> halls<br />

Store excess furniture<br />

Clear kitchen counters <str<strong>on</strong>g>and</str<strong>on</strong>g> stove<br />

Tidy cupboards<br />

Keep pets out of the way<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Seller's Checklist<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

The following is a list of documents <str<strong>on</strong>g>and</str<strong>on</strong>g> informati<strong>on</strong> that you should prepare<br />

when listing your property for sale:<br />

Documents <str<strong>on</strong>g>and</str<strong>on</strong>g> Official Informati<strong>on</strong>:<br />

Copy of the Title Deed<br />

Most recent Property Rates Bill<br />

Most recent Electrical Clearance Certificate<br />

Most recent Termite/Borer Clearance Certificate<br />

Lender's name, address, ph<strong>on</strong>e, c<strong>on</strong>tact pers<strong>on</strong>, mortgage acc. number <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

present balance<br />

If there are other loans/mortgages against the property, supply same<br />

informati<strong>on</strong> as above<br />

If property is held in trust, provide name of trustee, trust account number<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>tact info<br />

Your attorney's name, address <str<strong>on</strong>g>and</str<strong>on</strong>g> ph<strong>on</strong>e number<br />

Other supportive documents: ...<br />

C<strong>on</strong>tact Informati<strong>on</strong>:<br />

Other:<br />

Your work number<br />

Spouse work number<br />

Neighbour ph<strong>on</strong>e number<br />

Utility bills (electric, water, gas)<br />

Brochures/informati<strong>on</strong> about your property<br />

Attractive, exterior photos of your house in other seas<strong>on</strong>s<br />

Your thoughts <strong>on</strong> special features of your home or community<br />

Pers<strong>on</strong>al property which may be included in the sale - whatever you feel<br />

might have special marketing value to the average buyer<br />

House keys<br />

�<br />

C<strong>on</strong>tinue...<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

For Flats <str<strong>on</strong>g>and</str<strong>on</strong>g> Townhouses:<br />

Body Corporate management <str<strong>on</strong>g>and</str<strong>on</strong>g> C<strong>on</strong>duct Rules<br />

Body Corporate Certificate of Insurance<br />

Body Corporate Current Budget<br />

C<strong>on</strong>tact pers<strong>on</strong> name <str<strong>on</strong>g>and</str<strong>on</strong>g> address of Managing Agents<br />

Other Requirements (fill in):<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

....................................................................................................................<br />

....................................................................................................................<br />

....................................................................................................................<br />

....................................................................................................................<br />

10 Most Comm<strong>on</strong> Mistakes Sellers Make<br />

1. Believe or choose the agent who prices<br />

their home the highest<br />

2. Choose or select an agent based <strong>on</strong> their<br />

valuati<strong>on</strong>s rather than their track record<br />

or ability to market the home<br />

3. Price the home above the market value<br />

(too high) in the initial plan period which<br />

is the most critical time<br />

4. Neglect to interview 2 or 3 agents <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

request a marketing plan or proposal<br />

5. Neglect to check out the "competiti<strong>on</strong>"<br />

in the same area at that time<br />

6. Sign an offer without checking out the<br />

details with an attorney or top property<br />

professi<strong>on</strong>al<br />

7. Turn down the first offer you get which<br />

is generally the best you get<br />

8. Place the home <strong>on</strong> the market before it is in the best c<strong>on</strong>diti<strong>on</strong><br />

9. Fail to give proper viewing access to available buyers<br />

10. Neglect in ensuring that permanent fixtures remain with the property<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

When An Offer Is Made<br />

1. Presenting the Offer<br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

Presuming that the offer to purchase your home is generated by an agent<br />

other than the <strong>on</strong>e who initially listed your property, your agent should c<strong>on</strong>tact<br />

you immediately to arrange a meeting. The timing may be inopportune, but<br />

it is usually best to meet as so<strong>on</strong> as possible to c<strong>on</strong>sider the c<strong>on</strong>tract. Please<br />

note that when your agent calls you to arrange for the presentati<strong>on</strong>, he will<br />

not be aware of the terms of the offer. However, he will present the offer to<br />

you <str<strong>on</strong>g>and</str<strong>on</strong>g> you both will review all of the terms <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>diti<strong>on</strong>s at that time.<br />

2. Three Opti<strong>on</strong>s to C<strong>on</strong>sider<br />

A. Accept the offer exactly as presented - <str<strong>on</strong>g>and</str<strong>on</strong>g> your home is sold!<br />

B. Make a counter proposal. In other words, propose changes to the offer,<br />

i.e. price, pers<strong>on</strong>al property, transfer or possessi<strong>on</strong> dates etc. so that it<br />

is acceptable to you.<br />

C. Reject the offer.<br />

3. Finalising All C<strong>on</strong>diti<strong>on</strong>s<br />

If the c<strong>on</strong>tract states that financing will be provided by a lender, it is the<br />

buyer's resp<strong>on</strong>sibility to make an applicati<strong>on</strong> for the mortgage loan as<br />

so<strong>on</strong> as possible. The buyer will have a set number of days to procure the<br />

loan, as stated in the c<strong>on</strong>tract. The lending instituti<strong>on</strong> will verify the buyer's<br />

credit, work records, <str<strong>on</strong>g>and</str<strong>on</strong>g> determine his ability to meet his m<strong>on</strong>thly<br />

obligati<strong>on</strong>s. Since your buyer's mortgage loan is to be secured by the house<br />

itself, the lending instituti<strong>on</strong> will assign an appraiser to visit your home<br />

to determine that its value is enough to secure the loan that they are making<br />

to your buyer. When all the informati<strong>on</strong> is received, the mortgage loan<br />

underwriter will either approve or disapprove the loan.<br />

After the loan is approved, more legal work is necessary, though you will<br />

have very little involvement. The title deed will be searched, b<strong>on</strong>d<br />

cancellati<strong>on</strong> figures will be requested <str<strong>on</strong>g>and</str<strong>on</strong>g> updated electrical <str<strong>on</strong>g>and</str<strong>on</strong>g> termite<br />

certificates of the property may need to be ordered. If the property is a<br />

secti<strong>on</strong>al title unit, your Body Corporate may have to be c<strong>on</strong>tacted.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Tips <str<strong>on</strong>g>and</str<strong>on</strong>g> Advice<br />

When the paperwork is in order, both buyer <str<strong>on</strong>g>and</str<strong>on</strong>g> seller will be called up<strong>on</strong><br />

by the c<strong>on</strong>veyancer to sign the transfer documents. We will assist your<br />

attorney to ensure a smooth <str<strong>on</strong>g>and</str<strong>on</strong>g> timely transfer.<br />

Keys will be delivered to the buyer <strong>on</strong> transfer, or whenever possessi<strong>on</strong> of<br />

the property has been agreed up<strong>on</strong>.<br />

Immediately after transfer all funds will be disbursed by the c<strong>on</strong>veyancer.<br />

4. Agent's Resp<strong>on</strong>sibilities<br />

Agent's resp<strong>on</strong>sibilities are not fulfilled until the transacti<strong>on</strong> is completed.<br />

The agent will follow the progress of all steps menti<strong>on</strong>ed so he may keep<br />

you abreast of all developments.<br />

He will do everything in his power to work with your mortgagee,<br />

accountant, lawyer etc. to ensure a timely <str<strong>on</strong>g>and</str<strong>on</strong>g> highly satisfactory settlement<br />

for you.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

<strong>RE</strong>/<strong>MAX</strong> Assistance<br />

for Sellers<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

Your home is a lifetime investment coupled with str<strong>on</strong>g pers<strong>on</strong>al ties. <strong>Selling</strong><br />

your home is <strong>on</strong>e of the most important experiences <str<strong>on</strong>g>and</str<strong>on</strong>g> we approach our task<br />

with sensitivity, c<strong>on</strong>cern <str<strong>on</strong>g>and</str<strong>on</strong>g> professi<strong>on</strong>al competence.<br />

Our diligently prepared market analysis of your property <str<strong>on</strong>g>and</str<strong>on</strong>g> reviewing it in<br />

detail with you reduces the time spent <strong>on</strong> trial <str<strong>on</strong>g>and</str<strong>on</strong>g> error <str<strong>on</strong>g>and</str<strong>on</strong>g> leads to a faster sale,<br />

at a better price <str<strong>on</strong>g>and</str<strong>on</strong>g> with less inc<strong>on</strong>venience to you.<br />

An average <strong>RE</strong>/<strong>MAX</strong> agent outsells the competiti<strong>on</strong> by an incredible 3:1 thanks<br />

to the highest educati<strong>on</strong>al <str<strong>on</strong>g>and</str<strong>on</strong>g> professi<strong>on</strong>al qualificati<strong>on</strong>s that each <strong>RE</strong>/<strong>MAX</strong> agent<br />

must have.<br />

These pages describe our assistance <str<strong>on</strong>g>and</str<strong>on</strong>g> steps we undertake when selling your<br />

property.<br />

Becoming A <strong>RE</strong>/<strong>MAX</strong> Client<br />

It's the man <str<strong>on</strong>g>and</str<strong>on</strong>g> woman of <strong>RE</strong>/<strong>MAX</strong>.<br />

<strong>RE</strong>/<strong>MAX</strong> Associates across the<br />

country average twice the experience <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

three times as many sales as other agents.<br />

With a record like that, it's no w<strong>on</strong>der<br />

that <strong>RE</strong>/<strong>MAX</strong> is the real estate leader in<br />

cities <str<strong>on</strong>g>and</str<strong>on</strong>g> towns throughout the world. If you are ready to sell your home with the<br />

industry's elite, c<strong>on</strong>tact us today - click here.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

Read below a list of promises that any <strong>RE</strong>/<strong>MAX</strong> agent gives when selling your<br />

property:<br />

1. Listing Sheet<br />

I will prepare the pertinent informati<strong>on</strong> about your home (price, pers<strong>on</strong>al<br />

property, special features, rates <str<strong>on</strong>g>and</str<strong>on</strong>g> taxes, mortgage info, lot size etc.) for<br />

marketing purposes.<br />

2. Sign<br />

A <strong>RE</strong>/<strong>MAX</strong> sign with my name <strong>on</strong> it will be promptly placed <strong>on</strong> your property.<br />

I shall be marketing your home in a number of ways but the str<strong>on</strong>g <strong>RE</strong>/<strong>MAX</strong><br />

sign is a proven winner in attracting prospective buyers. My name appears<br />

to ensure that interested callers will be directed straight to the agent who<br />

knows more about your home than any<strong>on</strong>e.<br />

3. Property Network Services<br />

In additi<strong>on</strong> to notifying all <strong>RE</strong>/<strong>MAX</strong> agents, I will as per our agreement<br />

advise the Property Network of the availability of your home <str<strong>on</strong>g>and</str<strong>on</strong>g> encourage<br />

our cooperating brokers to show your home.<br />

4. Photographs<br />

I will take exterior <str<strong>on</strong>g>and</str<strong>on</strong>g> interior photographs of your home within a few days.<br />

They will be used with the listing sheet, display advertising <str<strong>on</strong>g>and</str<strong>on</strong>g> Internet<br />

advertising.<br />

5. Tour Day<br />

An inspecti<strong>on</strong> tour by <strong>RE</strong>/<strong>MAX</strong> Associates <str<strong>on</strong>g>and</str<strong>on</strong>g>, if necessary, by Property<br />

Network salespers<strong>on</strong>s will be scheduled. This is an outst<str<strong>on</strong>g>and</str<strong>on</strong>g>ing opportunity<br />

to provide your home with early, excellent exposure to sales people who are<br />

working with today's buyers.<br />

6. Showings<br />

Salespers<strong>on</strong>s from my company as well as our cooperating brokers will want<br />

to show your home. An appointment will always be made in advance. You<br />

will have the name of the agent <str<strong>on</strong>g>and</str<strong>on</strong>g> an approximate arrival time.<br />

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Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

7. Follow-up <strong>on</strong> Showings<br />

You may call my office at any time<br />

if you have any informati<strong>on</strong> which<br />

you believe will be helpful. I will<br />

follow up <strong>on</strong> showings to establish<br />

interest <str<strong>on</strong>g>and</str<strong>on</strong>g> to elicit any meaningful<br />

feedback from the showing agent. It<br />

may take some time to c<strong>on</strong>tact the<br />

other agent since we may both be in<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> out of our offices, but I will<br />

follow up <str<strong>on</strong>g>and</str<strong>on</strong>g> call you when the<br />

feedback is pertinent.<br />

8. Promoting Your <strong>Home</strong><br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

<strong>RE</strong>/<strong>MAX</strong> clients enjoy a wide<br />

spectrum of full media classified <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

display advertising opportunities in<br />

which homes in your price range are<br />

c<strong>on</strong>tinually advertised. In additi<strong>on</strong>, I<br />

have my own marketing <str<strong>on</strong>g>and</str<strong>on</strong>g> advertising programmes in which your home<br />

will participate. In all, your home will enjoy the full impact of our broad,<br />

professi<strong>on</strong>al coverage including:<br />

Display Advertising<br />

Internet Exposure <str<strong>on</strong>g>and</str<strong>on</strong>g> E-mail Communicati<strong>on</strong><br />

Classified Advertising<br />

Internati<strong>on</strong>al Relocati<strong>on</strong> Transferee<br />

Neighbour Card Mailings<br />

Open Houses<br />

Lawn Signs<br />

Property Network Services<br />

I'll be there... We will be patr<strong>on</strong>s till the day you settle. You can be c<strong>on</strong>fident<br />

that when you need help or advice, or need to discuss your home, I'll be there.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

<strong>RE</strong>/<strong>MAX</strong> Agents' Qualificati<strong>on</strong>s<br />

Things you should know:<br />

<strong>RE</strong>/<strong>MAX</strong> is a world leader in real<br />

estate with over 4,800 full service<br />

offices in South Africa, USA, Canada,<br />

Mexico, Carribean <str<strong>on</strong>g>and</str<strong>on</strong>g> 42 other<br />

countries.<br />

Today, <strong>RE</strong>/<strong>MAX</strong> associates proudly<br />

number over 89,500 full time,<br />

professi<strong>on</strong>al agents worldwide.<br />

The Typical <strong>RE</strong>/<strong>MAX</strong> agent is am<strong>on</strong>g<br />

the most experienced in the industry,<br />

averaging over 11 years of service<br />

worldwide <str<strong>on</strong>g>and</str<strong>on</strong>g> 8 years service in South<br />

Africa.<br />

This agent is also distinguished by<br />

earning, <strong>on</strong> the average, more real<br />

estate educati<strong>on</strong>al designati<strong>on</strong> than its<br />

industry competitors - a commitment<br />

to professi<strong>on</strong>al improvement.<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

Because of this industry high educati<strong>on</strong>al <str<strong>on</strong>g>and</str<strong>on</strong>g> experience achievements, the<br />

average <strong>RE</strong>/<strong>MAX</strong> agent outsells the competiti<strong>on</strong> by an incredible 3 to 1.<br />

Over 70% of <strong>RE</strong>/<strong>MAX</strong> agents' business comes from repeat business or referrals<br />

from past customers <str<strong>on</strong>g>and</str<strong>on</strong>g> friends - more than twice the industry average.<br />

<strong>RE</strong>/<strong>MAX</strong> agents make a pers<strong>on</strong>al financial investment in every listing.<br />

<strong>RE</strong>/<strong>MAX</strong> agents completely c<strong>on</strong>trol the marketing programme for each of<br />

their listings.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

<strong>RE</strong>/<strong>MAX</strong> Market Reach<br />

Sources<br />

of<br />

Buyers<br />

( <strong>RE</strong>/<br />

<strong>MAX</strong><br />

Agents)<br />

%<br />

Do<br />

Private<br />

Market?<br />

For Sale<br />

Boards<br />

8 YES<br />

Newspaper Advert<br />

11 YES<br />

Showhous e<br />

5 YES<br />

Estate Agents<br />

Referrals<br />

18 NO<br />

Just Listed<br />

Fliers<br />

3 NO<br />

Real Estate<br />

Company<br />

Referrals<br />

12 NO<br />

Agent's<br />

Current<br />

Buyers<br />

( from<br />

previous<br />

listings)<br />

List<br />

12 NO<br />

Company's Current<br />

Buyer's<br />

Base<br />

15 NO<br />

Agent's Marketing<br />

Skil<br />

l s<br />

12 NO<br />

Buyers<br />

Ph<strong>on</strong>e<br />

in<br />

to<br />

Known<br />

Real<br />

Estate<br />

Company<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

Our current records show that private sellers have just 24% chance of selling<br />

themselves. The table below represents market reach for <strong>RE</strong>/<strong>MAX</strong> agents <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

private sellers:<br />

4 NO<br />

Sellers<br />

Reach<br />

this<br />

That's why most sellers turn to an estate agent to get the job d<strong>on</strong>e. It makes<br />

sense to give yourself every chance to maximise your result.<br />

Where does <strong>RE</strong>/<strong>MAX</strong> Get Buyers?<br />

The table above illustrates, typically, how <strong>RE</strong>/<strong>MAX</strong> prospects are sourced, i.e.<br />

which markets can be reached by a <strong>RE</strong>/<strong>MAX</strong> agent.<br />

The diagram <strong>on</strong> the next page illustrates the c<strong>on</strong>tact source of actual buyers.<br />

The figures presented are average, <str<strong>on</strong>g>and</str<strong>on</strong>g> depend <strong>on</strong> an agent's skills, experience<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> engagement in actual selling process.<br />

�<br />

See Diagram...<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Sources of Buyers for <strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Agents<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

You can see that the most important in our business are c<strong>on</strong>tacts established<br />

throughout the years with associates who represent buyers, <str<strong>on</strong>g>and</str<strong>on</strong>g> our buyer's database.<br />

We simply know who is looking for a house, <str<strong>on</strong>g>and</str<strong>on</strong>g> that is why it is m<str<strong>on</strong>g>and</str<strong>on</strong>g>atory to<br />

seek an agent's assistance when selling your home.<br />

Why do You Save with <strong>RE</strong>/<strong>MAX</strong>?<br />

There is a c<strong>on</strong>victi<strong>on</strong> that selling privately can save m<strong>on</strong>ey by not paying<br />

commissi<strong>on</strong>.<br />

In fact it works the other way!<br />

Look at the table <strong>on</strong> Page 9 (click here). It illustrates savings that you make by<br />

using an agent.<br />

When savings are measured against the agent's fees of 7%, it almost pays to use<br />

an agent!<br />

Not all these costs will be evident in every transacti<strong>on</strong>, but a large part of them<br />

will be present.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

<strong>RE</strong>/<strong>MAX</strong> Commitment to You<br />

We will go an extra mile for you. First of<br />

all: we listen!<br />

1. Accurate Evaluati<strong>on</strong><br />

The correct selling price of a home is<br />

the highest price that the market will<br />

bear. To assist you in determining the<br />

correct asking price, we provide you<br />

with a comprehensive market analysis<br />

of comparable properties sold <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

offered for sale in your neighbourhood.<br />

2. Professi<strong>on</strong>al Advice<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

We will advice you of any necessary<br />

repair <str<strong>on</strong>g>and</str<strong>on</strong>g> how you may best prepare<br />

your home for showing. You will be<br />

kept up to date <strong>on</strong> the state of the market, the sale of similiar properties<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> other factors which may affect the progress of the sale.<br />

3. Promoti<strong>on</strong> of Your <strong>Home</strong> to Other Realtors<br />

The major selling points of your home will be distributed to other real estate<br />

firms throughout the community.<br />

4. Signage<br />

The highly respected <strong>RE</strong>/<strong>MAX</strong> sign board advertises your property 24<br />

hours a day.<br />

5. Notify Purchasers<br />

We will use our advanced computer system to identify people who have<br />

been looking for homes in your neighbourhood. They will be c<strong>on</strong>tacted <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

given details of your property.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

6. Open Houses<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

If appropriate, open houses will be arranged <str<strong>on</strong>g>and</str<strong>on</strong>g> held during reas<strong>on</strong>able<br />

hours.<br />

7. Advertising<br />

We will advertise your home in appropriate publicati<strong>on</strong>s <str<strong>on</strong>g>and</str<strong>on</strong>g> communicate<br />

our results to you.<br />

8. Progress Report<br />

Every step of the sales effort will be documented. Our Progress Report will<br />

keep you up to date.<br />

9. Pre-arranged Mortgages <str<strong>on</strong>g>and</str<strong>on</strong>g> Financing Guidance<br />

We offer pre-approved mortgages which encourages buyers by letting them<br />

know their mortgage potential in advance. Your <strong>RE</strong>/<strong>MAX</strong> representative<br />

will provide professi<strong>on</strong>al financing guidance to both the buyer <str<strong>on</strong>g>and</str<strong>on</strong>g> the<br />

seller.<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online


Seller’s <str<strong>on</strong>g>Guide</str<strong>on</strong>g><br />

Is Sole M<str<strong>on</strong>g>and</str<strong>on</strong>g>ate A Good Opti<strong>on</strong>?<br />

Too many cooks spoil the broth...<br />

<strong>RE</strong>/<strong>MAX</strong> Assistance for Sellers<br />

Property listed indiscriminately with every Tom, Dick <str<strong>on</strong>g>and</str<strong>on</strong>g> Harry is cheapened.<br />

Buyers w<strong>on</strong>der why efforts of so many firms are required to sell it.<br />

With a sole m<str<strong>on</strong>g>and</str<strong>on</strong>g>ate, the agent has greater inducement to study the property<br />

thoroughly, to devote time <str<strong>on</strong>g>and</str<strong>on</strong>g> effort to incur the expense of finding a prospect<br />

willing <str<strong>on</strong>g>and</str<strong>on</strong>g> able to buy the property as quickly as possible.<br />

Giving a sole m<str<strong>on</strong>g>and</str<strong>on</strong>g>ate to a reputable agent is your guarantee that he will advertise<br />

your property properly, <str<strong>on</strong>g>and</str<strong>on</strong>g> can offer it freely in the best channels <str<strong>on</strong>g>and</str<strong>on</strong>g> in the best<br />

method to attract buyers. He has time. There is no urgency. The transacti<strong>on</strong> can be<br />

c<strong>on</strong>cluded in a calm, relaxed <str<strong>on</strong>g>and</str<strong>on</strong>g> dignified atmosphere, because you <str<strong>on</strong>g>and</str<strong>on</strong>g> he would<br />

be protected against piracy.<br />

A competent <str<strong>on</strong>g>and</str<strong>on</strong>g> self-respecting agent would rather list ten properties exclusively<br />

than make 100 open listings. If you are <strong>on</strong>e of the ten, your chance of selling, <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

at a good price, is better than if you were <strong>on</strong>e of the hundred.<br />

List your property with <strong>on</strong>e live, wide-awake firm - it will serve you better than<br />

ten dead <strong>on</strong>es which list everything offered, but sell little.<br />

M I D L A N D S<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s<br />

196 Chapel Street, Pietermaritzburg 3200<br />

P.O. Box 1182, Pietermaritzburg 3200<br />

South Africa<br />

Ph<strong>on</strong>e: 033 - 345 8256 (intl: +27 - 33 - 345 8256)<br />

Fax: 033 - 394 0411 (intl: +27 - 33 - 394 0411)<br />

E-mail: info@remaxmidl<str<strong>on</strong>g>and</str<strong>on</strong>g>s.co.za<br />

Web: www.RemaxMidl<str<strong>on</strong>g>and</str<strong>on</strong>g>s.co.za<br />

<strong>RE</strong>/<strong>MAX</strong> Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s Online

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