biz card book

Let’s explore your options, and then you can choose which is
best for you.

Negotiation Technique #1:
The typical negotiating approach.

You are probably familiar with the way most people approach
the buying and selling process. The home is put on the market, and
when an interested buyer comes by, they make an offer to the
homeowner.

The homeowner will typically make a counter offer, which can
be accepted or rejected by the bidder. Sometimes this back and forth
can go on for a while. There are both pros and cons to this particular
situation.

Pros

One positive to the typical negotiating method is the transaction
is fairly straightforward and easy to understand.

It makes the seller seem flexible and willing to work with the
buyer’s needs. It’s a bang, bang, boom sort of situation, and everybody
knows exactly what’s going on.

This strategy can work quite well for folks who are willing to
take lower offers to simply be rid of a home. It’s a pretty straight
forward process. That is as much as any home purchasing transaction
can be straight forward.

Cons

A serious negative to this approach is once you begin this back
and forth negotiating tactic, your home is off of the market until the
deal is either sealed or discarded. Let me put it in perspective for you.

Let’s suppose Sally Sue, who checked out your home last week,
calls with a much higher bidding price five minutes after you make a
counter offer to your current bidder.

You are now legally bound to put Madame Sue on hold until you
see if your current negotiations work out or not.

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The bottom line is you could be making substantially less money
and there’s not a thing in the world that you can do about it.

Another con to the standard approach is you might feel pressured
to take low ball offers from deal seekers out of fear nothing better will
come along.

If the cons outweigh the pros in your situation, let me ease your
mind. You don’t have to go through those negatives, because there are
many negotiating approaches you can take. Allow me to share.

Negotiating Technique #2:
Reject an offer, but throw the bidder a bone.

Let’s just say a buyer comes around, loves your property and
makes an offer. You are happy they want the home, but you’re a little
less than thrilled with their bid.

You find yourself on the fence. You wonder if you should get
the deal over with and take what you can get, or if you should hold out
for a better offer in the future.

That’s a valid concern, and there is a way to handle this. Go
ahead and reject their offer. That’s right. Take a step most folks have a
hard time taking and simply say that one dreaded word, “No.”

Saying no can sometimes take you exactly where you want to
go. Just don’t stop with the negative answer. Reject their offer, but
invite them to resubmit a higher bid. That takes some of the pressure
off of you. There are several ways a deal like this can go.

The potential buyers are not usually going to expect you to take
their very first bid, and they might be throwing out a low ball offer just
to see how far down you’re willing to go.

You can send your own little message by rejecting that less than
desirable offer, but keeping them in the loop.

They’ll know without a doubt they ventured far too low. If they
sincerely want your property, and not just a bargain, they are likely to
come back to you with a much higher bid.

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As always, there are two sides to every coin. In the event the
bidders really do want your property, out of all of the other properties
available, this procedure can work well.

However, you are liable to lose the deal if this is just a person
gobbling up cheap real estate the way some people gobble cookies.
While that may seem bad at first, in retrospect it leaves you completely
open to better offers in the future.

Useful Tips

● It’s most desirable to use this approach when your home has just
come on the market or if you have an open house scheduled soon.

● Keep in mind that whole legal counter offer thing-a-ma-jig, too.
The instant you make a counter offer to a low bid, which could just
be a real estate gobbler on the prowl, you’ve tied yourself to
dealing only with that bidder until you come to a consensus.

During the time you and your bidder are coming to a common
decision, you can’t entertain any other offers. That wastes your
valuable time, and could cost you better bids.

Negotiation Technique #3:
Bring on the bidding war.

Did you know there is such a thing as a bidding war? This is
usually a carefully crafted situation that can literally bring the bid on a
home above the price the homeowners are asking for in the first place.

Here, allow me to explain how this can happen.

The Process

● The first thing you do is to put your desirable home on the market.

● You also ideally schedule an open house for just a few days later.

● As you put your home on the market, you also put in a disclaimer
that you’re not going to entertain any bids made on said home until
after the completion of the open house.

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Well, you’re probably thinking this is ludicrous! How is going
through all of this trouble going to help you sell your home quickly,
and for top dollar? You could be missing out on real bids!

Hold on to your horses, cowboy, because there’s more to this
story. The answers to your questions are simple as can be. Human
nature will take over, my friend. You and I have just created a prime
situation for competition to abound.

Everyone who sees the home and loves it will want to make a
bid. Some really competitive players will want to bid just to see if they
can win the prize! They’ll know from the onset you are potentially
getting offers from countless other people, too.

You have just been set up to take multiple bids at once, and this
gives you the freedom to go with the best one.

Potential homeowners who really want your house for their own
are going to start bidding high, and they might keep overbidding each
other.

In this type of situation, or a bidding war, it is not uncommon at
all for the seller to come away with more than their asking price.

The reality of the situation is you might only get one bid out of
the whole shebang. However, the bidder isn’t privy to that information.
The fact they know they could be competing against other offers also
works in your favor.

They are going to try to make an offer that’s better than
everyone else, because they don’t have a clue there is no one else at all.
At the end of the day, who does the winner turn out to be? You do!

Negotiating Technique #4:
An expiration date for extra motivation.

Let me remind you. Once a buyer makes an offer you don’t want
to accept, and you then make a counter offer, you are legally bound to
see the negotiation process through until you and the bidder either
come to agreeable conditions or agree to part ways.

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This means you can’t take a higher offer if one comes along.
That is a rotten situation to be in. However, there is a way you can
counteract this problem.

You can set yourself up for a higher selling price and a shorter
waiting time all at the same time. To help your cause, in order to sell
your home quickly for the most money possible, put an expiration date
on your counter offer.

It means you give your bidder a certain amount of time to either
agree or disagree with your terms. This benefits your outcome in a
couple of ways.

Benefits of a short expiration date

● First, a short expiration date motivates your potential buyers to
make a speedy decision. Either you’ll go into a contract with them,
or they’ll move on to greener pastures.

● If the bidder moves on, you are free to negotiate with other bidders
quickly.

● If they accept your terms in short order, you sell your property
faster.

I encourage you to be reasonable about this. The last thing you
want to do is turn your buyer off by making the timeframe too short,
particularly if they aren’t that far off from your ideal price with their
current offer.

However, feel free to go below the standard time used in your
state. If the typical deadline is three days, make yours two.

The potential buyers will know you mean business, but you also
recognize this is a life changing decision for them, as well as for
yourself.

There’s another reason to expedite these contracts besides
quickly closing a deal or being free to negotiate with other buyers. The
longer your home is on the market, the less desirable it appears to
potential buyers.

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If the deal falls through, you’ve extended the number of days
your home has been on the market. Valuable time has been wasted.

By shortening that time, you’re shortening your overall number
of marketed days in the event that this deal doesn’t go through.

Negotiating Technique #5:
Pay the piper, but raise the price.

Buyers are increasingly asking sellers to pay their closing costs,
which are normally around 3% of the actual price of the home.

I know it makes you shudder to even think of handing out that
kind of cash. However, this kind of deal could actually work to your
benefit. Let me explain.

The Buyer’s Perspective

Let’s look at this from a buyer’s perspective for a moment.
Many homebuyers just can’t afford to come up with those kinds of
additional costs.

Often, they are strapped for cash after coming up with the down
payment for your home, money for new appliances, moving expenses
and re-decoration needs.

Your Perspective

On the other hand, it isn’t quite fair for you to come up with that
much cash so they can buy a home, now is it? After all, they not only
want you to pay the closing costs but also to come down on your
original price.

I’ll give it to you straight. You should pay those closing costs.
Wait! Before you decide I’ve lost my marbles and toss this book out of
the nearest window, allow me to show you how paying those costs will
work for you and not against you in the long run.

You should pay the closing costs, but you should also increase
the price the buyers pay for your home by the same amount. Let me
restate that.

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If the only thing preventing you from selling your home is the
out of pocket cost for closing fees, and you’re able to afford it, it would
be beneficial for you to do so. You should recoup that money by raising
the price on your home by the same amount.

You see, buyers may not be able to come up with extra cash for
closing costs, but they can often borrow more money with their loan.

Many buyers don’t realize if you pay their closing costs, you are
giving up some substantial profit on your home’s sale. You should help
them realize that fact in your counter offer.

Here’s how you handle the situation. When the buyer submits an
offer that includes you paying the closing costs, simply counter with an
offer that says you’ll do just that. That is, you’ll do just that as long as
they agree to the higher price you’re proposing for your home.

Show me some numbers, please!

● Let’s say, for instance, your asking price is $250,000.

● Closing costs would be approximately $7,500.

● Your bidder makes an offer for $240,000 and additionally asks you
to pay the closing costs.

● We understand this means you would be letting your home go for
$17,500 less than you asked for it. That’s a nice chunk of change,
and often more than anyone with a brain and a house worth the
asking price is willing to go.

● So you make a more reasonable request. Simply counter offer by
agreeing to pay the $7,500 in closing costs as long as the bidder is
willing to pay the original price of $250,000 for the property.

● You’ve reduced it to a more reasonable amount of loss at $7,500.

● The bidder is still getting a deal, and you’re getting a fair price.

(Keep in mind these numbers are only approximations. I’m a
Realtor, not a mathematician. I think you can see the point, though.
Thanks!)

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Ideally, this approach allows you to come out smelling like a
rose, because you’ll get back the money you invested for closing costs
as soon as the deal is done.

However, there is one major hurdle that could hinder you. In the
event your home won’t actually stand for the amount of money you’re
asking, you’ll have to go back to the drawing board.

A bank is not going to loan more money than your home is
worth in any event, and especially in today’s economy.

However, paying closing costs in many situations can be a great
way to close a deal. It can actually mean the difference in your possible
buyer choosing to go into debt for your home rather than the guy’s
down the street.

It’s just a matter of asking a fair price for an outstanding home
from the very beginning.

A Final Tip: How to immediately gain
the upper hand in any negotiation.

If you ever feel you are getting "taken advantage of in any
negotiation, do this. Tell the buyer you are changing your mind. Yes,
that's right. You are taking your home off the market.

The dynamics of the negotiations will change right away. The
buyer will now have to sell you on why you should sell the home to
them. In addition, they will have to make a really sweet offer in order to
have any chance of you accepting it.

I'm not saying you should use this tactic in every negotiation.
However, this is a very effective strategy when you feel you are losing
the negotiation. I only recommend using it in that type of a situation.

If the buyer doesn't buy the house, you can always change your
mind and continue to try and sell it.

After all, there is nothing wrong with changing your mind.
Lying, cheating, and stealing are wrong. But changing your mind isn't!
Does that make sense?

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Chapter 16

Two Additional Ways To Sell
Your Home For More Money

Are you making a common seller’s mistake that stops your home
from selling? What else can you be doing to ensure your home is going
to sell?

In this chapter, you’ll discover the biggest mistake home sellers
make, a proven marketing secret, and how to “sweeten the deal” for
buyers.

These topics are crucial to selling your home, and quite honestly,
most other real estate agents and are oblivious to these proven methods.

A common mistake most sellers make
is not having a professional take pictures of the home!

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Most Realtors don’t take the time or use the energy to get decent
pictures. They will show up with their point and shoot approach, take a
few shots and call it good.

Professional pictures will make your home look much better.
Photographers know what to do to make their subject look its absolute
best.

Whether it’s a cute puppy, a newly married couple, or a home
for sale, professional pictures are a complete necessity in my book.

You have to view your house from a buyer’s perspective. If
you owned the house in this picture, you may not notice the trees that
dominate the photo, the bland coloring tint, or the really bad angle this
was taken from.

Even if you don’t hire a photographer, at least get someone to
touch up the pictures and make them look their absolute best.

For example, here’s a picture before and after touch up:

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Now the same picture, after simple touch up:

Pictures sell your home. It’s the first thing a buyer notices and
it’s what will keep them interested. Get professional pictures taken!

What can you do to sweeten
the deal for the buyer?

Everyone is looking for a deal; this includes you, me, your mom,
everyone. If people think they are getting a bargain, they are going to
hear that little voice inside of their head saying, “do it, do it, don’t pass
it up!”

Marketers have been using this method for centuries, because it
works. If you want to convince someone to buy your home, offer them
something no one else is offering. Even if it’s something that seems
insignificant to you, it may be the closing deal for the buyer.

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Take this example, an agent had been trying to sell a particular
home for almost a year and was ready to give up. In fact, he had come
very close to selling the house at one point, but the deal fell through.

Getting people interested in the home was not a problem. Buyers
were looking at a lot of homes in the neighborhood. This listing was
even one of the nicer ones in that particular area. That was a problem.

Yes, the house was nice, but so were a few other houses in the
neighborhood and this house was priced above the others. The agent
could not seem to close the deal on his house, because it everyone
would eventually turn their interest to one of those other homes.

Luckily, he talked the owner into “sweetening the deal”. He
needed something that would make the house stand out. He needed an
incentive to buy this house instead of the ones that were almost just as
nice right down the street. Finally the owner agreed to give it a try.

The following week a new buyer came to look at the house. As
usual, they planned to visit other houses in the area, after this one.

So before they moved on, the agent told them he had something
special to share. Based on his agreement with the owner, he gave them
something to consider. Told them the owner had agreed to pre-pay the
entire first year of property taxes! That is a sweet deal in any sale.

The buyers came back later that day, and wanted to buy the
house! All it took was a little incentive to make one house stand out
from other similar homes in the area.

See the power of a good incentive? It doesn’t have to be much,
and it doesn’t have to be a discount on property taxes. You could
include free cleaning or lawn care or pest control services.

The list goes on and on and the only thing stopping it is your
creativity. Put yourself in your buyer’s shoes and ask yourself what
kind of “deal” would you like to get when buying a home. Be ready
before the first buyers come. If they show interest, it might be the right
time to sweeten the deal with one of your incentives.

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Chapter 17

What Most People Don’t Know

Here is what most people don’t
realize about marketing a home.

If buyers are looking for a luxury home, most of the homes they
are going to see will be nice. You don’t have to sell them on the fact it
has the features of a luxury home.

Your job is to show them how this home is different than all of
the other homes for sale.

There are two important facets to your marketing.

● First, the message. This includes the pictures of the
home, the description, etc.

● Second, the messenger. This is how you tell potential
buyers about the home.

Many people mix these two things up.

They think if they just tell more people about their home, it will
sell. Their home isn’t selling. So they ask their agent to advertise their
home in other cities.

“A lot of the buyers buying a home here in town are moving
from Timbuktu. I want you to advertise my home there”, they tell their
agent.

That doesn’t work.

In the next chapter, we will explain why.

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Chapter 18

What the Wright Brothers
Discovered About Home Selling

Have you ever heard of the Wright brothers? I’m sure you said,
“Yes.” Now, have you ever heard of Samuel Langley? You probably
said, “No.”

Langley’s unmanned planes flew in 1896 before the Wright
brothers had started working on flying full time.

Both the Wright brothers and Langley were trying to get a plane
to fly around the same time. However, 4 years before the Wright
brothers started, Langley’s unmanned plane flew.

Langley had many advantages.

1. More money: He had collected over $50,000 in
government grants.

2. A 5-year head start: He started in 1895, 5 years before
the Wright brothers.

3. A more powerful engine: Langley’s engine was 50
horsepower versus their 12 horsepower engine.

Yet, the Wright brothers beat him.

Why did that happen? Well, Langley's approach was much
different than the Wright brothers.

Langley thought if he could just get a powerful enough engine,
his plane would fly. He focused on finding more powerful engines.

The Wright brothers focused on building a glider that flew in the
wind – and then attached an engine.

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Look at the difference between their
gliders in the picture:

● The Glider on the Left is the 1901 version. It doesn’t have
much lift and almost looks like it could fall out of the sky.

● The Glider on the Right is the 1902 version. It looks like it
could almost pick the men off the ground.

The Wright brothers spent hundreds of hours testing their gliders
in a wind tunnel. They spent two years tweaking and improving their
glider before they ever attached an engine.

Once they had a glider that could fly on its own in
the wind, they attached an engine.

They beat Langley to the punch and the rest is history.

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Chapter 19

Home Marketing Approaches

How does this apply to marketing your home?

The majority of people use Langley’s approach to sell their
house. More marketing. More open houses. More ads in the newspaper.
More arrow signs. More videos. More pictures. More social media.

They try to tell more people about the home,
hoping if they tell enough people, it will sell.

That is why most agents will try to show your home to as many
buyers as possible. They think if they can get enough buyers to look at
your home, it will probably sell.

Getting more people to look at your home will eventually result
in a sale. That does not mean it is the best strategy. It is frustrating to
repeatedly show your home to people that can’t afford it or don’t like it.

There is a better way to sell your home.

First, find a compelling marketing strategy to attract buyers.
After you have a solid strategy in place, turn on the marketing engine.
The Wright brothers would have used this approach to sell your home.

Use the “Sell It Before You Show It” Strategy

You should not be marketing where you have to pitch, sell, or
push something. You should try to find out what makes one house
stand out from all the others. Make that part of your marketing push.

To get the most money for your house, you must find a
buyer who wants it for its highest and best use.

Most agents try to sell everything. For instance, they may focus
on granite countertops – despite the fact all of the competing homes

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have granite countertops. They fail to realize in trying to sell everything
nothing actually stands out!

The reality is most people buy a specific home because it had
one or two things the other homes didn’t have. That is the key to good
marketing for your home.

Focus on the one or two things that differentiate
your home from every other house for sale.

If you do this properly, you will attract the right buyer who is
willing to pay a higher price for your home.

Why do so many agents fail to do this? Because they are too
busy trying to sell the 50 other things.

You can’t sell everything.

Most people don’t understand this. I’ll illustrate it with a quick
example. This should help you get a picture of how important it is to
stay on topic with your marketing message.

Many people have heard a speech, or attended some type of
presentation, only to walk away confused. If a friend asked about it
afterwards, you might say, “It was a good speech, but I can’t remember
what they talked about.”

Make sure your message stands out
by staying focused on one core point.

● Memorable speeches have one core theme, or make a
clear and concise statement.

● Speeches that try to cover every topic in detail and do not
make any defining statements are quickly forgotten.

Take a moment right now, and think of a speech or line from a
speech that you know. Is it famous? How long ago did the speaker
deliver those words?

Next, think back to the most recent speech you have heard. It
could be anything, speech, presentation, podcast, office meeting,

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sermon, that is not important. What is important is how much you
remember. Do you remember anything specific?

Chances are, unless the speaker was very clear and concise, and
stayed on point throughout the entire speech, you don’t remember
much. If they did, it’s likely that you remember a lot more.

Find one or two core features of your home and you can
sell your house without mentioning anything else.

You will attract the person interested in those features. They will
see all of the other features when they get to your house. They will
realize it has all of the nice things most of the similar homes have.

Figure out who is going to be interested
in those one or two things and market to them.

You have to create a prototype for the type of person most likely
to buy your home. Your marketing must talk to them one on one. You
want to talk to them in their words.

If you understand their needs and desires, you can talk to them in
their language.

● If you are selling a small horse ranch, think like someone
who loves horses, and the outdoors.

● If you are selling a home on the water, think like someone
who loves the water, and enjoys waterfront living.

● If you are selling a downtown condo with a skyline view,
think like someone who loves the city life.

If you do this properly, you will sell your home faster, for
more money and with fewer showings.

That is one of my core beliefs. I believe you should only show
your house to people that are genuinely interested in it. They should be
“pre-sold” on buying it based on the description and the pictures.

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Chapter 20

Avoid Costly Mistakes

How do you avoid selling your house for less than it is worth?
How do you avoid losing money in your sale? The first thing that you
need to do is find out what other people have done wrong.

Find out where others made a mistake
and lost money as a result.

Then avoid making that same mistake yourself.

I'm going to go through a few mistakes and show you what they
are. I’ll show you what the home seller did wrong that caused their home
to sell for less than their neighbor’s home.

Underpricing is the easiest way
to lose money on your home sale.

The number one reason people lose money on their home sale is
underpricing. They think their home is worth X. They don’t research
the value. That is why it is so critical you have a true understanding of
the value of your home in today’s market.

They put their home on the market, sell it for less than it’s worth,
and never realize their mistake.

A perfect example is the sellers who sold 3 acres
– that was worth about $300,000 – for $80,000.

● They lived about 30 miles away and didn't realize the
development potential the property had.

● They hired an agent who wasn't familiar with the area.
● Their agent didn't realize the development potential.

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Their buyer had experience with developments. He researched the
zoning and discovered the 3 acres was zoned for high-density condos.

The sellers didn’t know the property was zoned for high density
condos. They didn't know the county was planning on putting in a new
road right past their property.

Stories like this are the reason banks will
not accept an unsolicited offer when a bank

owned home is NOT on the market.

They know if someone comes along and makes an unsolicited
offer, most of the time those offers are going to be below fair market
value.

In one case, a bank lost about $25,000 on a mistake similar to
this. They were selling a property worth $90,000. For some reason,
possibly oversight, they put the property on the market for $67,000.

Two people were very interested in buying that piece of
property. It was in a very good location. There wasn’t anything similar
available nearby. Both buyers were very anxious to make an offer
before someone else could snatch it up.

Bottom Line:
Both buyers really wanted that property!

Either one of them would have been willing to pay the fair
market value of $90,000 for the property. Money was no problem; both
buyers had the ability to pay in cash.

Unfortunately, the bank refused to take any offers on the
property. They would not budge until it was listed on the open market.

There was a catch:
The bank made two big mistakes.

1. The bank underpriced the property by $23,000.

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2. The bank hired an agent who did a lousy job of marketing
the property. He didn’t see a big profit, and got sloppy.

● He didn’t put it into the MLS correctly. As a result, it
didn’t show up in search results for other agents who
had a buyer looking for that type of property.

● Secondly, he didn’t have the correct address. As a
result, the listing did not show up on any of the real
estate websites that use a map display.

● Finally, he neglected to put a sign on the property.
(The person who ended up buying it lived just down
the road and drove past the property every day.)

Had the bank not made mistakes, the two initially interested
buyers would have made an offer, and likely started a bidding war.

There is a good chance the two buyers would have
driven the price up to the $90,000 Fair Market Value.

Maybe even higher.

After the bank refused to work with the buyers, they waited for
the listing to appear. When it did not show up in searches, they gave up.
Ultimately, both buyers moved on to find another piece of land.

Meanwhile, the property sat on the market, unnoticed. Because
of the agent’s errors, nobody who was interested was seeing it.

It was pure luck the man who ultimately bought
the property even discovered it was for sale.

This man knew the bank was trying to foreclose on the property.
He did some research on the foreclosure with the courthouse He found
out the bank had successfully foreclosed on it.

Knowing it had to be listed somewhere; he went online and
searched through all of the properties for sale until he found the listing.
To his surprise, it was priced well below the market.

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Most bank owned homes are priced below market for a reason.
Banks will discount the homes they sell because the house has not been
lived in for 6 months - and the bank doesn’t know if there are any
problems with it. Sadly, this was not the typical bank owned home.

The bank missed a full-price sale
and lost $28,000!

This was a piece of raw pasture. There were no unseen problems
with it. The buyer had lived down the road from it for years and was
intimately familiar with it.

The buyer submitted an offer for $62,000 and the bank accepted
it. He saved $28,000 because the bank’s agent was sloppy. – and they
substantially underpriced it.

Why does this story matter to you?

Moral of the story: Anyone can lose money in the real estate
market.

Any seller unfamiliar with the market risks selling their home for
less than it is worth. In most cases, you would never even realize it.

See how important it is to know the true value of your home?
The bank was following a strict policy. But, the same thing can, and
does, happen to private sellers. Knowing the true value of your home
protects you from settling for less money than you deserve.

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Chapter 21

Does Listing Price Matter?

Let’s imagine a red hot housing market.

A seller decides to sell their house. All of the recent sales in the
area suggest a value around $550,000. The seller looks at the recent
sales and prices their place at $575,000. (They want to give themselves
some negotiating room.)

It turns out prices are on the upswing, and no other house like
theirs is listed below $650,000. Also, they are in a very desirable area.

Chances are you will lose a lot of money
if your home is not correctly priced!
Two things can happen.

1. The seller puts their home on the market for $575,000. It
receives multiple offers and sells for $580,000.

2. They put their home on the market for $650,000. It sells
for $650,000.

The buyer is getting a loan. The home does not appraise
and the buyer decides not to buy it. They put it back on
the market and accept a cash offer for $637,000.

Which seller would you rather be?

 The one that sold for $580,000?
 Or, the one that sold for $637,000?

And don’t tell me that stuff
doesn’t happen in real life. It does!

Situations like this happen in all sorts of markets. There are
many crazy things you see in the real estate business. Most agents just

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get used to it and after a while, it isn’t a big deal anymore.

Bottom Line: Before you put your home on the market,
check to see what your home is really worth.

Let's take a real life example of a seller that underpriced their
home:

● Three similar houses in one neighborhood sold between
May and June.

● One house sold for $750,000.

● The other two sold for $840,000 and $860,000.
● The $750,000 place went on the market on April 18th.

It sold the same day.
● The $840,000 house was on the market for 280 days.

● The $860,000 listing was on the market for 46 days.

Are you wondering why the first
house sold for so much less than the other two?

● The more expensive houses were the same size or smaller.
● The more expensive houses were not any nicer.

● The more expensive houses were built around the same
time. In fact, the $840,000 home was 9 years older. (Built
in 1990 versus 1999 for the $750,000 place.)

● The $860,000 listing had a nice in-ground pool. That
explains some (but not all) of the price difference.

I can’t say exactly why the first house sold for so much
less, because I haven’t seen the inside of all 3 homes.

I do know this:

In most cases, if a house sells without being on the market for at
least a week, it probably sold for less than its fair market value.

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The house that sold for substantially less also sold very fast.
Meaning that the sellers didn’t have time to get a feel for the market.
Chances are high that a savvy buyer swooped in and got very lucky!

Here is another example:

● Four similar houses in one neighborhood sold between
June and August.

● The $285,000 house was on the market for 1 day.
● It was put on the market on July 17th. Sold the same day.
● Three similar houses sold at prices between $321,000 and

$350,000.
● All of these houses were nice homes in similar condition.
● None of them had a pool or any other obvious features

that would explain why they should sell for more money.

I can’t find anything to explain why the first house sold
for $36,000 less than the next cheapest sale.

● The $321,000 house was on the market for 88 days.
● The $348,900 house was on the market for 21 days.
● The $350,000 house was on the market for 24 days.
● None of these three sales was a bank owned listing,

foreclosure, or short sale. In fact, a comparable bank
owned home even sold for $307,000 in August.

(If a bank owned home is selling for more than your
home, you are making a serious mistake in pricing!)
● None of them had a pool or any other major features.

Bottom Line: The seller who sold their home for
$285,000 lost quite a bit of money.

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Sellers can also make bad pricing
decisions in a slow housing market.

I’m sure some of you may be thinking, “None of this matters if
the local housing market is horrible. When prices are dropping, I don’t
think I run the risk of underpricing my home.”

Here is an example of how you can lose
money in a slow housing market.

An owner of a nice home had financial problems and couldn’t
pay the mortgage payments. He hired an agent to sell the house.

The house was selling as a short sale.

The seller owed about $400,000 on the house, but it was only
worth $380,000. He wouldn’t be able to sell the house unless his lender
agreed to accept a payoff below the $400,000 he still owed.

This type of a sale is called a “Short Sale.” The bank is settling
for a payoff which falls short of the total amount they are owed.

A buyer offered to buy the home for $378,000.

The seller’s agent put together an entire short sale application
package and sent it to the seller’s lender. The lender reviewed it and
refused to agree to the short sale.

The agent put the house back on the market. The next offer came
in for $373,000. The agent put together the entire short sale package
again and submitted it to the lender. They also rejected that offer.

The agent gave up on the short sale and took the home off the
market. The seller could not afford to make the payments, and the home
ultimately went into foreclosure.

The lender foreclosed on the home
18 months later and sold it for $230,000.

I am sure you are wondering why the lender did not accept the
original $378,000 offer. You’re probably asking yourself, “How could

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they be so stupid?” I could go into all of the reasons, but I don’t want to
waste your time.

Two main reasons this happened:

First, most of the huge national banks do not own the loans
they are handling. These banks do not have much to lose if something
goes wrong.

You may not know it, but the large banks sell most of their loans
to Fannie Mae, Freddie Mac, or another party. The Federal Government
through the FHA, VA, and USDA programs insures them against loss.

Based on research statistics, a third party owns or insures 80% of
all the loans held by one of the largest banks in the US.

Second, and we saw this in the last big downturn, banks can
easily be overwhelmed with files and run short on people to process
them. The process to approve a short sale can be very bureaucratic and
inefficient. Even worse, clerks who are not aware of the importance of
timely processing can cause the whole transaction to fail!

How does this apply to a person selling their
house during a slow housing market?

If you do not price your house aggressively, you may lose
money as you chase the market down. Your home’s value is dropping
and you are stuck trying to catch up with the dropping market. This
applies mostly to a market that is dropping very quickly, like the 2008-
2010 housing crash.

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Chapter 22

Creative Financing

Offering creative options can save a sale!

In certain cases, you will need to go outside the box and come
up with creative solutions to a roadblock standing between you and a
buyer. Those solutions may be the pivotal point between getting your
home sold to an interested buyer, and watching a deal fall through.

I am not here to tell you, “Oh, it can’t work, it won’t work.
Everybody’s a failure. Woe is me. Nothing works. There’s no good
ideas, be a Negative Nelly, have a negative outlook in life.” That’s not
me. If you like a Negative Nelly outlook, go somewhere else.

You do have to be realistic. The mainstream way will not
always work. Be prepared with options, and you won’t lose a sale. Here
is one option you should consider. It is not traditional, not ordinary, and
not endorsed by most financial people.

Your friends will probably not agree with it, either. Some of
your friends would even tell you it is a stupid suggestion. Some might
say you’d be dumb to even consider this option, and tell you it’s a
horrible idea. And I understand all that. Just don’t give up at the first
hurdle!

Under the right circumstances,
this seemingly crazy option can be beneficial to you.

The option is offering owner financing or selling your house
with a lease option. There! I told you. Pretty crazy, huh? “What? I don’t
want to do owner financing. That’s a horrible idea.”

Well, I did tell you it was not traditional. I did tell you it is not
endorsed by the mainstream. However, under the right conditions,
owner financing can be a good idea.

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Consider an example of two people
who owned rental houses.

The first person got a start in the 1970s with rental houses.
Today, he’s a multi-millionaire. He began with one rental property and
grew. Today his business manages thousands of rental properties.

Nathan Collier is a real estate investor in Gainesville, Florida.
If you met Mr. Collier and asked, “Nathan, do you think rental
properties are a good investment?” he’d answer, “Yes, rental properties
are an incredible investment.”

“I love rental properties. They have made me rich beyond my
wildest dreams. I started with one in 1970s. Today, I own thousands.”

“In fact, owning and managing rental properties helped me
become one of the richest men in Gainesville. I’m worth millions.” (not
to imply he is cocky; I just don’t know his exact worth)

If you ask Nathan Collier whether he likes rental properties,
he’s definitely going to tell you they are a great investment.

Mr. Collier has had success with rental property.
Bob has not done so well.

Bob owned a house. He moved away to live closer to the
beach. He didn’t sell the original house when he left. Figured he’d ty
his hand at renting the house, and see what happened.

He bought it for $350,000. The house was decent, but renting
has taken a toll. It’s probably worth $300,000 today. Rent checks don’t
cover much more than the basics. He’s upside down on the loan.

Bob owes more on the house than its worth. He has good
credit. He doesn’t want to do a short sale. He has it rented out, but
repairs are costly. At times has difficulty collecting the monthly rent.

If you chatted with Bob and said, “Hey Bob, do YOU think
rental properties are a good investment? Could you really become a
multi-millionaire by investing in rental properties?”

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He’d probably shrug and say, “You know what? I think maybe
some people can make money in rental properties, but I doubt I could
ever make much money at all, let alone millions of dollars, doing rental
properties!”

There are many choices in life.
The important thing finding one that works for you!

The moral of the story is I am here to give you options and to
plant seeds of ideas in your mind. I want to be clear what works very
well for one person, may work terribly for another.

There are many ways to sell your house without dropping the
price. Owner financing or a lease option is just one of those ways.

Is owner financing low risk? Nope. Is a lease option low risk?
Not really. Both choices carry risk. However, for the right person who
is willing to take the risk, it is a way to sell your house when other
ways have failed. If you understand the downsides and have a plan in
place to reduce the negative aspects, it can be a good option. It may be
a good educated risk for the right person.

Understanding the options available
will help you choose wisely if the need arises.

Let’s assume you’re selling a $600,000 house with owner
financing. Let’s say you have someone with the worst credit in the
world. However, they pay you cash. Because of the risk involved, they
are willing to give you a down payment of $300,000 for the house.

The buyer has a solid job or business or good earning
potential. The economy is strong, and they work in a steady industry.
On that is going to be around for a long time. Unfortunately, they have
made some unwise choices in the past, and have horrible credit.

If they are ready to buy your home, it may be worth doing
owner financing. You would not sell your $600,000 house for $600,000
in this case. You can work with them, but you are going to ask for a
premium price.

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To a buyer who is not getting owner financing, ask for 10%
more than the house is worth. You would sell for $660,000. They
would put down a payment of $300,000.

In that specific situation, it would make sense if you have the
right safeguards in place. Every situation is different. Evaluate the exact
case you are in, and make a slow, careful decision. That is the key. If
you are NOT comfortable, do NOT go through with the deal.

I’m not saying you should do owner financing. I’m not saying
I endorse it or not. I’m just saying it is an option you could use to sell
your house without dropping the price.

If you are thinking about owner financing, I can give you more
information on it. The main purpose of this entire book is to share
helpful tips and ideas.

One of the responsibilities I have as a real estate agent is to help
every client complete their transaction, and see them through to a
successful end! Many times that involves coming up with creative
options to share along the way. I also work with good lenders and
finance companies. Don’t ever hesitate to ask for suggestions or advice!

I’ll be glad to discuss it with you and cover the pros and cons of
your specific situation. Selling a home may well be the biggest
transaction of your life, so take time to ask for help if you need it.

Don’t ever rush into a situation you feel you may regret later.
Chances are you probably will! Just like this book, I’m here to help.
Just ask.

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Chapter 23

The Price Myth Debunked –
Why Price Isn’t the Only Reason

Homes Don’t Sell

Are you sick of being told the reason your home didn’t
sell was because it was "overpriced?"

Most people think a home that didn’t sell was probably
"overpriced." Nothing could be further from the truth.

The reason homes don’t sell is not always because of the price. It
is usually because the home wasn't marketed properly.

It’s not easy to sell something for full market value.

You may need to negotiate price with a buyer,
but good marketing helps bring in a full price offer!

Here is a perfect example. John was trying to sell his house. He
put it on the market for $499,900.

He hired an agent to help him sell it. The agent worked at a
reputable firm and made a good effort to sell John’s house.

● The pictures of the house were top notch quality.
● The marketing of the house was first class. The home

was advertised extensively online, in the newspaper, and
other marketing avenues.
● The agent did an open house.

The agent’s efforts failed to attract a buyer.

John’s agent recommended that he adjust the price. After all,
most of the similar homes were priced around $400,000 to $450,000.
He recommended dropping the price to $450,000.

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But, John owned one of the nicest homes in the area. And his
home had many features the other homes did not have. John knew this.

John was reluctant to reduce the price.

So, he hired a new agent. This agent worked at the top real estate
company in the area. Had a bunch of accolades. He took a closer look
at the home, and launched his own specialized marketing plan.

● New pictures were better than the first agent’s pictures.

● The marketing was better. There was even more
advertising than before.

● The agent didn’t just do a regular open house. He also
did a Broker’s Open House and invited other agents to
view the home.

Even with additional marketing,
the second agent couldn’t sell the home either.

John was frustrated. What could he do to sell his house? Both of
his previous agents had told him it was because the home was
“overpriced.”

At this point, John had two options:

Option #1: Drop the price. Most of the agents he talked to told
him his home was not worth what he wanted. They told him he should
just "be reasonable" and drop the price to $450,000.

Option #2: Hire an agent who could sell the home for what it
was actually worth. This agent’s marketing would need to get a buyer
so excited about the home they would be willing to pay full price.

Here's what happened.

Fortunately, for John, he picked Option #2. He contacted an
agent who specialized in selling homes other agents could not sell.

The agent looked at his house and could clearly see it was worth
the price. The agent put the home on the market for the same price as
the previous agents. Only this time something different happened.

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63 days later, the home sold for $480,000.

The other agents were shocked. After all, they had told John his
home was worth no more than $450,000.

And since most homes sell for slightly less than their asking
price, an asking price of $450,000 would have resulted in a final sales
price of $430,000 to $440,000.

Yet the new agent had sold the home for more. And it had taken
him only two months to capture a buyer’s attention. They were shocked
and maybe even a little bit embarrassed! What had they missed?

Why did the first two agents fail to sell the home,
while the other agent sold it with ease?

It’s because the new agent used a marketing strategy that most
agents weren’t familiar with. The details on this secret marketing
strategy are explained in the next chapter.

But first, a refresher.

If you’ve been following along from the beginning, you already
know this. If you haven’t, take time later to jump back to the start. This
next point is the single most important idea and concept you can grasp
when selling your home.

Most people think a home will usually sell for exactly what it is
“worth.” I’m here to tell you that isn’t true. I’ve said it before, and now
I’ll say it again:

Homes do NOT always sell for
what they are “worth.”

● Sometimes they sell for more.

● Sometimes they sell for less.

Wait, didn’t you read those EXACT words in an early chapter?
Yes! You did. And you probably laughed and said “Wow. What a no-
brainer!” But you are here now, so you obviously kept reading.

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I hope at this point in the book
you truly understand the impact of that statement.

We’ve been eating away at the pages, filling up on a steady diet
of examples to illustrate this exact point. And that’s only the tip of the
iceberg. There really are almost unlimited cases you could study.

Having a clear understanding of your home’s value is critical at
almost every juncture of the process. It helps you determine what steps
to take when you are preparing your home to sell. Helps you decide
how hard to negotiate. Guides you toward that ideal offer.

So once more, just to drive it home, let’s look back over a few
examples we’ve seen so far. In each case, the uninformed party paid a
hefty price for not being fully aware of the situation and pricing they
were working with:

● Cheryl and Richard – one house sold for $14,000 more
than the identical house.

● The “million-dollar view” – sold the plain jane
ordinary house on the spot.

● The overlooked 5-acre lot – became the deciding
factor in a sale to an out of town buyer!

● Record setting condo – beat out the second highest
listing by $110,000 mainly due to the staging effect.

● Piece of land worth $300, 000, snatched up for
$80,000 – the seller did not realize the zoning potential.

● The stubborn bank who refused to sell pre-listing – and
lost $25,000 when a bumbling agent muffed the listing.

Those are a few of many. Sadly, it happens all the time. Happens
to sellers, and agents alike. That is why I keep stressing the importance
of knowing what you should reasonably expect from the sale of your
home!

In the following chapter, we’ll take a closer look at a strategy
you can use to make sure that you start out on the right foot.

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Chapter 24

Listing Price Strategy

Here’s another example.

Chuck and Richard owned very similar homes in the same
neighborhood. Both were very similar in terms of square footage,
bedrooms, baths, etc. But, they didn’t sell for a similar price.

● John sold his home for $321,000.

● Chuck sold his for $285,000.

Here is why Chuck sold his
home for less money.

Chuck was an uneducated seller. He wanted to sell his home. A
random buyer contacted him, offering to buy his home.

The buyer offered to pay $285,000. They were approved for a
loan. It looked like a good deal on the surface. Chuck accepted their
offer and sold his home to them.

The buyer was working with a Realtor, so Chuck did save on the
commission. He paid them half of the typical commission. However, he
still lost $25,000 when you factor in the commissions.

Chuck skipped that crucial step of getting to know the true value
of his home before selling! As a result, he sold his home for $36,000
less than his neighbor.

Chuck sold his house for $36,000 less
than his neighbor because he did not know any better!

It was because he didn't know what his house was actually
worth. Unfortunately, Chuck never researched his home’s value.

I know that seems elementary. Seems like anybody would do it.
But you’d be amazed at how many people neglect this step. As you’ve
seen, they lose money as a result. Unfortunately, they usually lose a lot!

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Here’s another similar story.

A seller listed her home with an agent whose incompetence cost
her $25,000. Shortly after her home went on the market, they received a
full price offer. Unfortunately, the agent was careless, and a small
problem (one that could have easily been resolved) caused the sale to
fall through. The frustrated buyer went looking elsewhere.

In the meantime, she had to make 15 more house payments
while her home sat on the market. That is one frequently overlooked
cost of not finding a buyer quickly.

Over a year later, another offer came in. Only this time, the
owner was getting desperate. She accepted it immediately, and settled
for $15,000 less than the original full price offer.

Don’t let yourself become another home selling horror story!
Take time to know the true value of your home. Do your homework,
and prepare for the sale before putting your home on the market. The
good news is, by reading this book, you are well ahead of the game!

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Chapter 25

Four Reasons Home Sellers
Should Hire a Realtor

I am sure you have wondered why people even hire a Realtor.
Well, here are a few reasons why.

Reason #1: We can sell
homes for more money.

In fact, most sellers net more money in their pocket, even after
they pay the agent’s commission.

The typical home sold by an agent sells for $230,000, while the
typical For-Sale-by-Owner home sells for $184,000.

That doesn't mean every agent is going to sell your home for
more money. But the numbers do show agents typically sell homes for
more money.

In fact, many sellers actually make money hiring a Realtor to sell
their home. Here are a couple of real life examples:

● Brandon had his home on the market for $220,000. He wasn’t
getting much activity. The buyers who did look at it were not
serious.

They showed little interest in buying the home and made
lowball offers. He listed his home with an agent for $240,000.

Three weeks later, he received an offer from a buyer willing to
pay full price. He actually ended up with more money in his
pocket, even after paying the real estate agent’s commission.

● Jimmy & Kaye had their home on the market for $380,000. It
wasn’t selling. After a few months, they hired a Realtor and
increased the price to $420,000.

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A few months later, the home sold for $408,000. They actually
made more money, even after paying the real estate
commission.

Do these stories happen every day? No. Does this happen to
every For-Sale-by-Owner that hires a Realtor? No.

But, they happen more often than not. In most cases, the agent
can sell the home for more money than the seller could sell it for on
their own.

Reason #2: The whole process is easier
when you hire a Realtor.

Let me give you a concrete example. I talked to a title company
manager who handles both For-Sale-by-Owner closings and Realtor
closings.

He told me when a For-Sale-by-Owner sells their home, it takes
about 30-45 days for the two parties to sign off on the sale contract.

He said sometimes they don't even sign it until they sit down for
the closing. When a property is sold by a Realtor, the sales contract is
usually signed in 45 hours.

Why does this matter to you?

Have you ever heard of "Buyer's Remorse?" It's what happens
when a buyer makes a decision to buy your home, only to immediately
begin questioning their decision.

It doesn't matter if the decision was good or bad. I've seen buyers
get buyer's remorse when they were stealing homes. They still question
it. And, sometimes they freak out and change their mind.

If you have a signed contract, you can hold them to it. If not,
they may walk away, and you have to sell your home all over again.

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This isn't to say that you can't
sell your home yourself.

You probably can. But, unless you have sold a lot of homes
yourself, then you probably aren't set up as well as a professional
Realtor is. Does that make sense?

Reason #3: A good Realtor can
save 80-100 hours of your time.

That is because we handle all of the work for you. We are
experts at financing, loan conditions, home inspections, surveys, title
work, termite inspections, appraisals, negotiating, etc.

Some people have estimated there are 189-213 different things
an agent does to sell a home.

That list is shorter or longer, depending on the property. I haven't
familiarized myself with every item on that list. But, I do know from
personal experience selling a home does take a lot of time.

Reason #4: We solve problems.

This is the most important thing a Realtor can do for you. After
all, just because a buyer is interested in your house does not mean they
will actually be able to complete the purchase.

Here is a story that illustrates this perfectly.

A seller put her home on the market. The perfect buyer came
along and made a full price offer for the home.

The seller and the buyer signed a contract, and the buyer started
working on financing. The buyer ran into a problem with the financing
and cancelled the contract.

The seller told the story to an agent. It turns out the problem the
buyer had was completely solvable. However, the seller didn't know
how to solve it. As a result, the buyer couldn't obtain financing to buy
the home.

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The agent is confident if they had been involved in the
sale, the buyer WOULD have obtained financing and

bought the home.

Unfortunately, the seller had to put the home back on the market.
It took another 5 months to sell. The seller had to pay an additional 5
months’ worth of mortgage payments, property tax payments, and
homeowner's insurance premiums.

In addition, she had to maintain the lawn, pay the electric bill,
and take care of the property.

This reminds me of the old story of the
importance of "Knowing Where to Tap."

Have you ever heard the story? Here’s the short version: A huge
steamship boiler system was not working properly. The steamship
captain hired a top boiler expert to fix it.

The expert asked a few questions and inspected the boiler room.
He looked at the pipes that twisted and turned every which way and
listened to the boiler and all of the machinery.

He studied the problem, reached into his tools, and grabbed a
small hammer. He gently tapped one valve and "Voila" the problem
was fixed. He sent a bill for $1,000 to the owner of the steamship.

When the owner saw the $1,000 invoice
he was mad as a hornet's nest!

He called the expert and confronted him about the bill. "You
were only there for 15 minutes! How dare you charge me $1,000!” he
said. The expert heard him out and told him he would send a new bill.

The owner received another bill the next day. The bill was
itemized as follows:

Tapping the valve: $.50
Knowing where to tap: $995.50
Total: $1,000.00

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Specialized Knowledge is one of the
most valuable resources in the world.

Fortunately, for you, I have specialized knowledge. I know how
to sell homes for more money. I know precisely where to "tap the
valve" and to solve any problems that come up.

In fact, you will usually make more money
when you hire me to sell your house.

I know that sounds crazy. But it’s true. The fact I can sell your
home for more money is usually enough to pay my commission.

Here is how you make money hiring me. I save you countless
hours chasing down surveys, handling inspections, etc.

What is your time worth?

If it isn't worth anything, you should sell your home yourself.
But, I know that isn't the case. Your time isn't worthless!

I know from personal experience most homeowners are
successful, hardworking individuals.

You have probably spent many hours becoming skilled at your
profession. I am sure you have considerable "specialized knowledge" in
your area of expertise. An outsider might look at what you do and think
it's easy. It's not. You know it and I know it.

Run the numbers. Consider the valuable insight I’ve shared with
you. When you are ready to hire a highly skilled, professional Realtor,
give me a call. I'll be glad to help you.

When you are ready to have me do all of the work required to
sell your home, contact me. I’ll help you take the first critical step:
Determining your home’s true value. With that number in hand, we’ll
be ready to talk about listing and selling your home. And you will be
able to make well informed decisions.

The next page has all my contact information. I can’t wait to
help you get started!

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What is Your Home Really
Worth?

To Request A Copy Of My Free Home Value
Report And Find Out Exactly What Your
Home Is Worth, Go To:

[website]

This is all 100% completely free with no obligation. After you
submit your info, you will receive my free report with the information.

You can use that information to determine what your home is
worth. I recommend printing it out and driving past the other homes.

See how they compare to your home. This will help you get an
even more accurate idea of what your home is worth.

I don't charge a dime for this report, even though an
appraiser would charge $300-500. Luckily, that’s not necessary!

If you would like my free, professional opinion on the value of
your home, I’d be glad to help. We can talk over the phone, or I can
meet with you in person. I look forward to helping!

Email me at [email]
Call me at [phone] and enter code [code] or text code [code] to
[phone].
Best Regards,
[Full Name]
[Agency]

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