Redfin's Free Home Selling Class - Denver

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Selling In Todays MarketAugust 1, 2013 Lone Tree, CO

Presented by: Paul StoneRedfins Listings Denver Team

Follow: @RedfinDenverLike: http://www.facebook.com/RedfinDenver

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AgendaIntro to RedfinUnderstanding the MarketThe Selling ProcessPricing StrategiesMarketing your homeRepairs & updatesCurb appealStaging & perfect picturesQuestions?

A Little Bit About Who We AreRedfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend.

New RE Model: Customers, not commissions

Buy-side: More info available + Transparency = Informed decisions = The right home for the right price

Give back a portion of our commission

Sell-side: We do MORE (Info, Photos, Classes, Sparking Debut, FT Coordinator, Proprietary Software for LESS ($$)

- The 97% comes from looking at our agent reviews. We consider 6/10, 7/10,8/10,9/10,10/10 to be people who would recommend us to a friend.

Understanding the Market

Case-Shiller: Denver Area v. 20-City

Case-Shiller By the Numbers Denver AreaUp 9.9% year-over-yearPeak was August 2006Down 1.5% from peakCurrently at May 2006 prices

20-City CompositeUp 12.1% year-over-yearPeak was July 2006Down 26% from peakCurrently at and September and October 2010 prices

Story of 2013: Low Inventory

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Story of 2013: Rising Prices

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Lone Tree Area Overview

[REQUIRED Updated every time]Agents should use this slide to talk about what theyre seeing on the streetTell some stories!9

Selling Your Home

7 Secrets to Sell Your Home Faster and for More MoneyKnow the Process: Knowledge puts you in the Drivers Seat

2. Know Your Numbers: Price it right the first time

3. A House Not A Home: Prepare Your Home For the Market

4. Surviving the Inspection: Maintenance & Repairs

5. Why now?: Upgrades & Touches that Payoff

6. Sparkling Debut: Photos make the FIRST Impression

7. Get Noticed: Exposure is the Key!

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The Selling Process

The Selling ProcessDecide on selling

Meet with an Agent

Stage and prepare your Home (Open Book referrals)

Photograph your home

Take it live!

Get an offer & expert help in negotiating = Signed Contract

Work as a Team through the Inspection & Appraisal process

Signing / Funding / $$$

Pricing: An Art & ScienceConsider the current economic factorsHousing marketMortgage ratesEmployment & other Economic factors

ConsiderLocation-Competition-Timing-Condition-PriceComparable homes in your areaActive: Your direct competitionPendings: How many DOM can indicate final priceSolds: Watch the trends of list VS sold prices

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Pricing StrategiesWhat if we over price?Fewer Buyers see your house More days on market can elicit suspicionNeed price - reduction planHope: One Buyer pays the higher priceRisk: Appraisal concerns

What if we under price?Elicit Market InterestMore buyers see your house = more potential offersSold more quicklyHope: More than 1 BuyerRisk: Timing works against you & only 1 Buyer makes an offer

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Comparative Market AnalysisWhat is a CMA? Art and Science: Left brain VS Right brain What is my home really worth?

CMA VS Appraisal? What they each mean to you

How could 3 different Agents suggest 3 different prices?Experience levelBusiness style Underlying Strategy

(show pre-done CMA from MRIS, pulled in advance, include summary with photos of comps, and summary detail at a minimum)

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What is the Best Day to List?Homes listed onSundayget marginally more online views.

Homes listed onFridayaretoured 19% more.

Homes listed onFriday or Thursdaysell for slightly closer to original list price.

Homes listed onFridayare12% more likely to sellin 90 days or less.

How to Get Your Home Ready to Sell

Curb Appeal

Front DoorThe first impression of the houseClean!Nice hardware on door goes a long wayClean/updated hardware - spend $100 on updated locks

PorchDont put a lot on itA place for people to sit1 or 2 great decorative piecesGrill make sure its clean!Porch lightsMake sure they workBuy new ones Great touch for under $50

PaintThings to consider:How much light the home getsWhat color the neighbors home is paintedSpecific to style (modern vs. craftsman)

Contrasting colors - Light trim/solid color

Painting door an appealing color

Driveways and PadsKill weedsCut branches and bushes back Shovel driveway in winterHide garbage cansPower wash driveway and walkway

The BackyardPower wash patios/deckFurniture Buyers will sitBorrow from a friendBright pillowsTrim back large bushes makes yard appear biggerFencePaint/re-standMake sure gates work

Repairs and Updates

EntrywayUsually the 1st and last thing a potential buyer seeswhen looking at any home/condo. Things to focus on: Are the walls & baseboards damaged, scuffed or dinged up?A quick coat of paint can make a big impact.Is the light fixture in need of being replaced? Adequate light is important; makes the entryway feel more open and inviting.Does the area have proper storage (are things piled up and stuffed in corners)?Not necessarily on the cheaper end of updates, but a built-in storage area can be a big plus.

KitchenAs you have probably heard, kitchens & bathrooms sell homes!

courtney.wenclawski (c) - New photo!Kitchen Floors: TileTile: many times the tile is in good shape but the grout is either falling apart or discolored from the foot traffic pattern. A cheap do-it-yourself fix is to buy some industrial cleaner and a good firm bristle scrubbing brush and go to town on the grout. Another option would be to hire a company like The Grout Dr. They come out and rout out the old grout and re-grout the whole area with new material. This is also a much cheaper option than ripping up the old tile and having to pay a contractor to retile the entire kitchen.

Kitchen Floors: Hardwood Hardwood: If you have hardwood floors you already know they can show wear and tear easily. A quick & easy do-it-yourself fix to minor scratches and moderate signs of wear, is to use a hardwood floor cleaner/polisher. It will remove light signs of wear immediately. For heavy scratches and damage, a good option aside from replacing the flooring would be to hire a company to refinish the floors. They will come in and sand down the floors and apply a coat of polyurethane. Your floors will usually look like new!

courtney.wenclawski (c) - New photoKitchen Counters and Cabinets Backsplash:A tile backsplash can make for a nice upgrade from just wall paint between your countertops and cabinetsThere are new products out there that can make tackling this type of project much easier if you want to try to take on this upgrade yourself. SimpleMat is one example.

Cabinets: Often are in good shape but show normal signs of wear from daily use.Painting cabinets that are in good shape but show signs of moderate wear & tear is an inexpensive alternative to replacing them. Re-facing is another cost effective alternative to putting in all new cabinets.

BathsThis is the second place that people are going to really focus on.

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courtney.wenclawski (c) - new photoBaths: Floor Floors: Basically the same idea as the kitchen: either clean or re-grout.New tile installation can also make a big impact in any bathroom.

Before: After:

courtney.wenclawski (c) - new photos

Baths Shower enclosures can show signs of wear and water damage to the grout and caulking. An effective & inexpensive fix is to strip and re-caulk any material that shows signs of mold or discoloration. Retiling a shower enclosure is also a nice facelift but is going to be more costly than touching up the tile.Vanity/Toilet: If they are in poor shape, replacing them is not a very expensive option and can make a big difference from run down fixtures. Swapping out the faucet/shower control and shower head can also make a worn down bathroom look new if the rest of the items are in good shape.

Staging & Perfect Pictures

Tips for Staging Your HouseDe-clutter! De-clutter! De-clutter!Get rid of ALL smells (even the ones you like!)Get the dust and film off of everythingWash windows Inside & OutMake all beds & add throw pillows to couchesNew fixtures and drapes in the bathroom or kitchenNeutral colors

The Importance of StagingYour Home Will Spend Less Time on the Market

The Real Estate Staging Association studied 174 homes previously on the market an average of 156 days.

Those same homes were professionally staged, relisted and sold in 42 days on average after staging. This is 73% less time on the market.*

*2011 RESA study

The Importance of StagingYour Home Will Show Better in Photographs

90% of all home purchases begin with an Internet search Photos begin to sell your home before buyers even enter it

The Staging Process ExplainedFor an Unoccupied Property:

Staging generally takes 2 days Stagers make recommendations for improvements and maintenance Stagers bring in all furniture, rugs, lamps, window treatments, art and accessories

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How Much Can You Expect to Spend on Staging?

Some stagers charge $1.50 per square foot Monthly rental fee based on 1/3 of the staging cost Rental fees are pro-rated daily after the first month

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