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Paul & Jana Klaasse How To Sell ANY Home Strategies That Maximize The Odds of Getting Top Dollar For Your Home WHO WE ARE > HOW WE GET THE JOB DONE >

Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

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Page 1: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Paul & Jana Klaasse

How To Sell

ANY HomeStrategies That Maximize The Odds

of Getting Top Dollar For Your Home

WHO WE ARE > HOW WE GET THE JOB DONE >

Page 2: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Why do some houses sell quickly and for more money?

Two houses -- seem similar -- both have 2 car garage,3 bedrooms etc. Yet one sells for more money andquickly and the other lingers on the market. Housenumber 1 have some magic trick? House number 2

just having bad luck?

There are reasons but luck is not one of them.

Houses do not sell for more money by accident.There’s no magic trick or luck involved. On the con-

trary, higher prices and quicker sales are the result ofcareful planning and some simple strategies outlined

in the following pages.

Follow the same winning formula to get your home sold

Thanks for taking the time to consider these ideas.Our background is in the Marketing & Ad Agency fieldwhich is a huge advantage in Real Estate Sales. Plus

we train regularly and meet with a group of Realtors InPittsburgh lead by Bob Cenk every few months to

learn and share ideas. Some of the great ideas in thisbook originate from those sessions.

Our sincere hope is that it will help result in you making more money on the sale of your home.

We believe you’ll see some ideas you’ve not seen before.

If you have questions or need help please contact us. We’d be happy to help.

THIS BOOK WILL HELP YOU SELL YOUR HOME

Page 3: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

InsideI.. The strategy & psychology of price setting

II, How buyers pick what homes to preview

III, Why the pictures of your homes can stop it

from selling

IV. Make Your Home Stand Out

V. Don’t Just Wait For An Offer

VI. Why Buyers Will Eliminate A Home

VII. How & Where to Reach Targeted Buyers

VII. Scenario Demonstrating These Ideas

VIII. Know what you’ll net from a sale

VIX. Figure your capital gains

X. Will it be benefical to hire a real estate agent?

Price -- Presentation -- Marketing.The three things that go into

a home sale.This book covers the systems, strategies and psychology that support each of those ideas

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Page 4: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

I. The Strategy & Psychology of Setting a Price For Your HomeKnow How Buyers Will Find Your Home

Buyers Set Price Criteria in Predictable Brackets

Here’s An Example. Lets say Matt is searching for a home online.His absolute top limit is $275,000 but he’d rather spend less - sohe sets his search criteria from $200,000 to $275,000. He won’teven see Sue’s house because she set the price at $199,900. Shethought that would look better. Sue’s house is just what Matt islooking for and he would be thrilled to find something at his lowerend. If she had priced it at $200,000 - a hundred dollars more -Matt would have seen her house and a sale could very well have re-sulted. The only buyers that will see her house online are peoplelooking up to $200,000 not buyers that start their search at$200,000 because she set the price at $199,900.

Understanding Price Bracketing

Who searches for homes with their starting price at $199,900 or$149,900? No one. They start at an even number. $200,000 or$150,000. If you price your home at $149,900 then buyers startingat $150,000 won’t see your house. Many buyers would love to finda home at their lower end. Just about every other house on theMultiple Listing System is priced at a $100 less than an even num-ber knocking out a whole bracket of buyers.

Price your home so that it falls in 2 brackets that match how buyers search.

PRICEBRACKETINGFOR LARGESTNUMBER OF VIEWS

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Page 5: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

II. HOW BUYERS RESEARCH PRICEThe Problem With Sites Like Zillow is That They Are

WRONG Much Of The Time

How We Do An Online Analysis When Determining Value

The most popular sites are Zillow and eppraisal. Chances are aninterested buyer will check out those sites to get an idea of thevalue of your home. They may even refer to those sites in theiroffer. Knowing this, you’d be wise to get ahead of this issue be-fore the negotiating begins.

The first step in determining value is to do a Competitive MarketAnalysis -- which we will cover in the next few pages. From thatAnalysis we’ll have several recently sold homes similar to yourhome. Next step is to look up how Zillow and eppraisal valuedthose homes. Step 2 is to then compare those values to the ac-tual sold price. Step 3 is to take those percentage differences,average it out and apply the average to the value these sites gaveyour home. Here’s an example:

The actual price it sold for? $367,690

101% of eppraisal estimate ( $4,231 more)& 94% of Zillow estimate ($21,242 less)

Estimates - as you can see - are inconsistent and often wrong.

Take the average of these percentage differences and apply that result to the estimate these sites give on your

home. Good way to get ahead of any issue regarding onlinevalues in contract negotiating.

These are the online estimates for ahome that recently sold

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Page 6: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Tax Assessments

How Buyers Research Price Part 2

Its Also WRONG Much Of The Time

Tax Assessments Can Be UsefulHere’s Why

Here’s a Tax Analysis We Recently Completed

60% of Market Value?No. This Analysis says the actual percent is more like

40-49% of market value.

Everybody says that the tax department assesses value at 60% ofwhat they believe is market value. And some buyers will go bythis. We decided to see if that holds water. Just like the onlineprice analysis, we see how off this is using the assessments vsactual sold price method. And the majority of the time the 60% ofmarket value rule doesn’t hold water.

Same idea as online analysis described ear-lier. But even though the 60% rule is likelyto be off, we are assuming the tax depart-ment is more consistent in what they valuea certain area. So we take those samecomparable sold homes that we used in theonline analysis -- taken from the Competi-

tive Market Analysis (which we’ll go over very soon) and look atthe tax department assessment compared to the actual soldprice.

Tax Assessment Actual Sold Price Percentage Difference

116,660 317,000 37121,640 272,900 45106,330 218,000 49119,530 242,000 4999,370 241,000 41

Average difference - 44%Applied to Tax Assessment of Subject Property: 126,610 / .44= $287,750

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Page 7: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

What Homes Like Yours AreSelling For In Your Area

COMPETITIVE MARKET ANALYSIS(CMA)

ARE YOU IN AN APPRECIATING ORA DEPRECIATING MARKET?

This is the most reliable method to determine market value. Pull recently sold properties similar to your home.

TIPS IN A COMPETITIVE MARKET ANALYSIS:1. Start with finding homes with similar sq feet.2. Also acreage close to what your home has.3. Consider the differences between these homes (number

of bedrooms, bathrooms, amenities) and your home andmake adjustments.

4. Don’t include foreclosures or short sales unless thereare a lot of them in your neighborhood.

5. Start with homes that sold within last 6 months. If notmuch comes up, go back further and then look at the ap-preciation/depreciation data so you can apply that toproperties that sold more than 6 months ago.

6. Take a look at what’s for sale (Active Listings) so youknow the competition.

ACTIVE LISTINGS CARRY MORE WEIGHT IN A SELLERS MARKETOR IN A MARKET THAT IS APPRECIATING.

The best way to determine this is to find a fewhomes in your area that have sold at leasttwice since the market starting picking up -about 8 years ago. And then calculate whatpercent they have gone up (or down). If youbought your home during that time frame,apply that percentage to what you paid foryour home. You can also apply that percent tothe sold comparables pulled for the CMA if thesold date goes back 6 months or more.

Also check online marketing statistics for thezip code and homes in your area.

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Page 8: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

III. Why The Pictures OfYour Home Can Stop It

From Selling

A Common Mistake Many Agents Make IsNot Having Professional Photos

This is a bad picture of a reallynice house.

PICTURES SELL YOUR HOME. Its the first thing abuyer notices and it’s what keeps them interested.Get Professional pictures taken.

MUCH BETTER

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Page 9: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

PROPERTY/COMMUNITY Map location of Hospitals, GroceryStores, school Information - bus stop location.

Do some research on your area. Is it appreciating? Any plansfor new companies moving in?

UTILITIES (gas, electric, etc. with monthly cost estimates)

Floorplan with pictures showing rooms & purpose

SURVEY or PLAT

[

[

[

[

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Our Brochures are 8-12 pagebound booklets with floorplans, aschool page, pictures plus maps &community information.

IV. Make Your Home Stand Out From The Competition

After a long day of home shopping, buyers won’t re-member the details of the homes they saw So give themsomething that makes your home stand out.

(7)

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Page 10: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

GO GETTER ACTIVITY.....MAKE A REVERSE OFFER

The Reverse Offer consists of a formal sales agreement and a personalized letter from Sellers designed to answer the most common questions from Buyers

What is their reason for moving? What do they like about the area?When are they planning to move? What is their bottom line price?

V. Don’t Just Wait For An Offer

So Ann Does This.....

Buyer Previews Your Home &Seems To Like What They See

MAKE THEM AN OFFER AND SWEETEN UP THE DEAL.

Ann’s house has been on the market for 2 months. Lots of show-ings but no offer and luke warm feedback. Matt comes along and isvery complimentary and gives some great feedback but doesn’tsubmit an offer. He is the perfect candidate for a Reverse Offer.

Writes a contract with the following sweeteners:

1. Offered to reduce price by $3000 or pay $3000 toward buyer’sclosing cost.

2. She remembered he stated that he loved nice gardens but couldn’t do as much because of an injury. She included a 6month contract with a local landscaping company.

3. Offered a Home Warranty to insure the systems and appliancesin the house

4. She also offered his agent a $500 bonus if the contract is signedwithin 48 hours.

Plus she included a letter saying why she loved the house and thearea, why she is moving and when she would like to move.

(8)

Page 11: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Buyers decide in the first 15 or so seconds of seeing ahome whether they are interested or not. The homeon the left would be a no go. House on the right wouldexcite buyers and bring a higher price.

VI. Why Buyers Eliminate A Home

When Buyers Pull Up Make Sure They See: Clean windows,a washed and if needed newly painted house, brightly painted frontdoor & shiny new looking hardware - plus a new doormat, paintedwindow frames, well manicured lawn and clean gutters. Decks &Porches should look freshly stained or painted, everything removedexcept flower pots and a few pieces of furniture. Stage the deck orporch like an outdoor room. All clutter removed.

Inexpensive Ideas to Add Outdoor Pizazz

Add flower boxes and a pergola.Upgrade your mailbox.

Add outdoor lights Spray paint old hardware

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Page 12: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Inside Your Home

Make it sparkling clean with freshly painted neutral walls

Check List:

* Make sure fireplace is clean and screen is in goodcondition

* Drapes, shutters and shades should be clean andworking.

* Make sure windows open & close easily and win-dowsills are clean

* Check doors - do they sag, seal tightly & are in goodcondition?

* Floors - Are carpets clean, stain free and free of furni-ture dents. Wood floors - refinish if needed or wax toa shine.

* Basement/Attic. Are they organized,well lit & clean?Stairs in good repair and doors open and close easily.Make sure there are not signs of insects and the exte-rior of the furnace & hot water tank are clean.

* Garage. It needs to be clean, organized, well lit andfree of oil stains.

Spotless & Staged

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Page 13: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

MAKE OR BREAK ROOMSFirst is the kitchen. Second is the bathroom. Make

sure they sparkle and are clutter free.

BATHROOMS:Ensure faucets turn off,sinks drain freely, toilets ingood condition, showerdoors clean, recaulk tubs ifneeded, vanities and mirrorsin good condition. It needsto be sparkly clean andsmell fresh - not overly per-fumed with strong candles.

KITCHENS:Are appliances clean & inworking order? Cabinets &countertype in good condi-tion? Sink stained, chippedor in need of caulking?Clear off countertops & re-move any frig magnets.

Inexpensive Ideas to Add Indoor Pizazz

Add brightflowers & fruiton counters

Add upscale hardware & plush towels

Placeset with some nice dishes

Add a kitchen island &accessorize

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Page 14: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

STRONGPRESENCE ONSOCIALMEDIA

A YARDSIGN THATGRABS ATTENTION& Provides Drive-BysInstant Access To YourHome’s Website

Create an ad on Facebook and target it to income levels likely tobuy your home and specify people who are active on Zillow andclassified as “likely to move.” Create a webpage for your homeprovide a direct link so that buyers can click on the link and seeyour home. Include a virtual tour.

VII. How & Where to ReachTargeted Buyers

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Page 15: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Email Campaigns

Marketing Your HomeEverywhere

Multiple Listing System

Send a flyer that appearsin the email messagearea to local realtors, re-altors in the DC Metroarea and a list of buyerscurrently looking for ahome.

Send it again if there areany changes like a pricereduction.

Once entered in thelocal MLS (MRIS), your

home’s listing is dis-tributed to hun-dreds of websites.

We also syndicateto additional web-

sites through Cir-clepix - a real estate

marketing company.

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Page 16: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

VII. A Scenario Using TheseWinning Strategies

1.

2.

3.

Carol decides to sell her home. She schedules an inspection by a li-censed home inspector and decides which items she will repair. Thiswill be offered to interested buyers as part of a “Buyer ProtectionPackage” -- along with a Home Warranty.

She follows the 75 Point Checklist and paints a couple of rooms, hiresher neighbor college student to help with landscaping, paints the frontdoor and applies a nice wreath. Then she cleans everything to a shine.A Professional Photo shoot is scheduled to ensure all her work is cap-tured in the photos and the home is presented in its best light.

After going over the Equity Evaluation (the CMA, tax and online analy-sis) Carol sees that her home will likely sell in the $285-$290K range.She prices it in a bracket typically used by buyers when they searchfor a home online -- $300K -- to ensure that people searching up to 300will see it and also people searching from 300 up.

A few weeks go by. She is getting a fair amount of showings but nooffer. She has a good feedback system in place so she can stay on topof any issues.

Leslie comes along and loves the house but expresses a concern aboutthe price. and doesn’t like the color in the master bedroom.

Carol determines that Leslie is a good candidate for a reverse offer. Soshe puts a contract together and sends to Leslie

Price lowered to $293. $2000 contribution offered toward buyers clos-ing cost and she will pay for a painter to repaint the master bedroom.She sends Leslie a copy of the Home Inspection & Repairs and a niceletter saying why she is moving and what she loves about the houseand area.

Leslie counters with $4000 toward closing - everything else ok.Carol knew she would likely get between $285-$290 and this will nether at $289,000 - so she accepts and specifies that it is an “As Is” saleas the home has been inspected and comes with a Home Warranty.

Prepare the home to get top dollar.

Determine the asking price.

The marketing begins and buyers start showing up

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Page 17: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

MORE ABOUT THESESTRATEGIES

Carol is happy - she got the top range of market value (netting$289,000) and doesn’t have to worry about buyer asking for more re-pairs. Buyer is happy -- she got a lower price with most of her closingcost covered and a home that’s been inspected so she decides toforego an inspection eliminating the major reason contracts fall apart.

Staying on top of feedback is very important If buyer states he wasturned off by an odor, for example, then you can resolve that beforethe next buyer arrives. Plus you can monitor likely candidates for a Reverse Offer.

HOME INSPECTION. The number one reason contracts fall apart isdisputes over the Home Inspection -- buyers and sellers won’t come toagreement over what needs to be repaired and who will do the repairs.Get ahead of this problem -- get the home inspected before putting iton the market and then the items to be repaired will be your decisionas well as who will do them -- potentially saving because you’ll havetime to explore options and the charges for various contractors -- ordo some of them yourself. Offer the report and list of repairs to buyersand use it as a sales point in the marketing in the form of a “Buyer Pro-tection Package.” Include a Home Warranty that insures the systemsand appliances in the house for a year. Place a flyer in your home andin the brochure with this information. Of course, buyer may get theirown inspection but very often they won’t and will appreciate the con-scientiousness of the seller.

HOME WARRANTY. This is a policy that covers the appliances and sys-tems in the house. Its fairly standard these days in a contract. If a hotwater heater or a heating system is nearing the end of its life and thatis cited in the Home Inspection, providing a Home Warranty will miti-gate the issue. It gives buyers comfort that they won’t have a big ex-pense in the first year.

ITS A WIN -- WIN

Buyer Protection Package

Have A GoodFeedback System so

problems can be addressed

FEEDBACK

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Page 18: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

VIII.KNOW WHAT YOU’LL NET AFTER EXPENSES

Your home’s original sales price when you bought it

Additional costs you paid toward the original pur-

chase (include transfer fees, attorney fees, and in-

spections but not points you paid on your mortgage).

Cost of improvements you’ve made (include room

additions, deck, etc. Improvements do not include re-

pairing or replacing existing items).

Current selling costs (include inspections, attorney

fees, real estate commission, and money you spent

to fix up your home to prepare it for sale). +

Add the above items to get your adjusted cost basis

The final sale amount for your home.

The adjusted cost basis figure from above.

Calculate Capital Gains

VIX. CALCULATE YOUR CAPITAL GAINS

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SELLING PRICE: __________________________

ENCUMBRANCES:First Mortgage __________________________Second Mortgage __________________________Prepayment penalty for existing loan __________________________Other __________________________

ESTIMATED SELLING COSTSCommission based on sales price (___%X sales price) _________________Attorneys Fees on sellers side (approx $350-500) __________________________Recording Fees ($6.00-$10.00) __________________________Transfer Stamps (about $6.60 per thousand) __________________________Delivery Fees (Fed Ex) __________________________Other Processing Fees (Notary, etc)Septic & Well Inspection (approx $130.00) __________________________

for FHA additional $150.00 __________________________Pest Inspection (usually is package with

well and septic inspection) __________________________

Home Warrenty $500-700 _________________________Other _________________________Other __________________________Other __________________________

APPROXIMATE COSTS ___________________________

APPROXIMATE SELLER’S PROCEEDS ___________________________

Page 19: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

REASONS TO HIRE A REALTOR....& WHY WE ARE A GOOD CHOICE

1.

2.

3.

4.

That’s because we know what needs to be done to get a home soldand to settlement. There are hundreds of things to do -like market-ing, loan conditions, satisfying contingencies,inspections, stayingon top of deadlines, writing addendums when necessary - to namea few. If you aren’t familiar with these activities you’ll spend a lot oftime on a learning curve and potentially expose yourself to risks.Its Knowing Where To Tap.

Pricing strategy is something we spend a lot of time on. Settinga price goes beyond just knowing market value. We have madeit our business to learn about buyer behaviour which can trans-late into getting top dollar for your home. Its Knowing Where To Tap.

A title company closer told me that For Sale By Owners some-times don’t have a ratified contract for at least 30 days after anagreement and sometimes not until they get to settlement table.Why is this a problem? Without a ratified contract specifyingcontingencies, a buyer can walk at any time. Meanwhile yourhome has been off the market so that other buyers aren’t see-ing it. Our contracts are typically ratified within 48 hours.

An example: We wrote a contract on a “round house”. Lenderwouldn’t approve the loan because of the unconventional na-ture of the house. We knew a lender that would lend on thisproperty so the contract went to settlement. Problem solved.Another benefit of hiring a realtor. Its knowing where to tap.

A steamship captain hired a boiler expert to fix the boiler system in his ship. The expert asked a few questions, examinedthe system and reached for a small hammer. He gently tappedone value and BAM the problem was solved. He sent a bill for$1000. The captain was furious saying he was only on the shipfor 15 minutes. The expert said he’d send another bill which hedid the following day. It read as follows:

Tapping the valve: $.50Knowing where to tap: $995.50

We’ll Save You Hours of your time.

Odds Are You’ll Sell For More Money

You’ll Be More Protected

We Can Solve Problems Others Cannot

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Page 20: Paul & Jana Klaasse How To Sell ANY Home · $150,000. If you price your home at $149,900 then buyers starting at $150,000 won’t see your house. Many buyers would love to find a

Here’s Our Contact InfoWe Can’t Wait To Help!

Jana Klaasse & Paul KlaasseSnyder Bailey and AssociatesLicensed in WV & VA404 W.Burke, Martinsburg, WV 25402Direct: (304) 264-2828Cell: (304) 264-2828Fax: (866) 571-4685E-mail: [email protected] Website: http://WeSellWV.com

Jana Klaasse has been practicing real estate for about 20 years.She is licensed in Virginia and West Virginia and has a MilitaryRelocation Professional designation. She is a retired AmericanAirlines International Flight Attendant. She has a Masters De-gree in Social Work from the University of Chicago and hasalso worked as a graphic artist and desktop publisher forKlaasse Marketing.

Paul Klaasse’s background is in advertising and sales. Heworked for 20 years for Washington DC area newspapers win-ning numerous awards from national newspaper contests. Heformed Klaasse Marketing, an advertising and marketing firmthat served high tech clients throughout the DC Metro area. Heretired in 2001 to sell real estate in the Eastern Panhandle. “In1989 I had the vision to marry Jana Beth Giddens BoomerKlaasse - my greatest personal and professional achievement.”

They have been negotiating real estate dealsin this area for 15 years.

Military Relocation Professional)