PROPERTY MARKETING PLAN.
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- Leo Pearson
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2 PROPERTY MARKETING PLAN. There are one of two goals: a. Sell the property within the normal absorption period for the Target Market, (based on CMA value). b. Sell the property within the current pricing parameters of the client, (based upon Client direction). There are two effective pricing mechanisms to price real estate in a rising market: a. Price based on historical sales which is commonly called a CMA (Comparative Market Analysis) or sometimes referred to as the standard appraisal method. The value of each previously sold home is adjusted to determine the value of your home. b. Competitive market approach whereby the existing homes that are for sale in your target market are analyzed and compared to your property in order to determine an appropriate asking price and then monitoring the results and adjusting the asking price by market results. The current market is very simple; there is simply not enough inventory to satisfy the demand. Add to that, the fact that there is a perception that interest rates will be rising and the affordability of housing will be diminished. It is not all positive; the problem for the seller is that today s buyer wants new construction which is why new homes sell for a 20% premium to comparable resales. This tells you really quick what you have to do to sell your home for a good price in a reasonable amount of time. CLEAN IT AND FIX IT. In today s market, well priced, market ready properties, that are well presented, usually sell within 30 days. Other than price and condition, there is no reason for a property to remain on the market for more than 30 days. I have more than 10 years experience pricing and selling properties for Bank s Asset Managers; (I have over 30 years experience as a Realtor), and I have adapted the Bank Asset Manager s pricing program for my use along with my experience. Utilizing all of the available tools, my number one criteria are to get more traffic and a higher price in less time. In a rising market, my largest hurdle is to sell the home above appraisal value. This can be accomplished if the property is presented properly and the eventual buyer incentivized to pay more (net to seller) than they would in a normal transaction. (It is called preplanning and strategically planning the negotiation process) Failure to net the highest amount possible to the seller; is what every experienced Realtor defines as failure. As my initial listing price is intentionally high, my sales usually average less than 98% of initial listing price intentionally. My average days on market may exceed 30 days intentionally. I am more concerned with getting the highest price than the speed of the transaction. There are certain proven methods of accomplishing what I consider the perfect transaction.
3 I have detailed what I think are the common items that need to be addressed in my book HOW TO SELL YOUR HOME FOR MORE MONEY. Please ask for it and see what low cost things you can do that will really make a difference. 1. TARGET MARKET Determine the expected Target Market for the property in order to focus all of the marketing and pricing towards that market. Determine what the competition is and monitor it on a daily basis to insure my pricing is correct. 2. PRICING Determine a realistic expected selling price for the property based on comparable past sales within the neighborhood of properties of a similar size, quality and condition within the Target Market. Utilize the FMLS CMA (Comparative Market Analysis) pricing in order to determine a fair price for the property in relation to others that have Sold. Determine the absorption rate for the property s Target Market in order to evaluate progress. If a market has an absorption rate of selling 1 property every 45 days; then after 45 days, it would be appropriate to add incentives and/or reduce the price as the property is underperforming the market. Understand that nearly every property has an existing Buyer Pool, and it would be most appropriate to attract that pool of informed Buyers in order to sell the property in the least amount of time. I can prepare a desktop appraisal once I have seen the property in order to provide what would be a realistic selling price. Once the property is listed the traffic will be the number 1 determinate of the acceptability of the pricing. 3. INCENTIVES / REDUCTIONS Utilize preplanned incentives or reductions to be offered; if the property does not sell based on the CMA calculation within the indicated Absorption Rate and the status of the competing properties. a. Home Warranty - Offer a prepaid home warranty (estimated cost $550), also, it will protect your home during the Listing Period and insure the buyer that most of the large expenses in the 1 st year are covered. b. Financing Incentives (closing costs) Offer to pay an amount of closing costs which will allow the buyer to have funds to make any additional changes they may require. c. Appliance Replacement Offer new appliances (if needed). d. Repairs Have the home inspected ($350+) and have the defects repaired so you don t get surprised once you are under contract. e. Painting, Carpet Consider painting the home or remove the wallpaper; have the carpets cleaned or replaced, as needed. f. Cleaning Have the house professionally cleaned, including the windows, or offer to do so in the listing. g. Relocation Assistance Provide the buyer with an allowance to pay for their move. h. Prepaid HOA fees Offer to prepay HOA fees for a year.
4 i. Increase the Buyer s Agent Commission Called the Traffic Approach to increase traffic. j. Consider having the hardwood floors refreshed. Each property is different as to which incentives would provide the best return. The first priority is to always make the home look as new as you can. Generally, the incentive which would address specific issues with the property based on the property s condition would be the next to consider. This needs to be preplanned, priced and prioritized or you are going to spend a lot of money that you did not need to have to spend. 4. LISTING The property will be listed in both FMLS and MLS, from which all of the secondary listing programs derive their content. The listing descriptions will be concise; targeted towards the predefined Target Market, describing and emphasizing the positive attributes of the property and any incentives offered. a. The property will be photographed showing the positive attributes from a Realtor s viewpoint. b. A Seller s Disclosure will be completed by the Seller. Please remember that this is also a Marketing Tool. We require all HOA contact information as well as a copy of the covenants if possible. We also need your utility information and termite protection company information on the disclosures. 5. SIGNAGE A standard RE/MAX Real Estate yard sign will be placed in the front yard. Each property will have a specific, professionally completed descriptive recorded Audio Tour, with a call capture phone number. This allows me to capture and contact each caller who has a casual interest in the property. 6. CONDITION The property must be in marketable condition in order to expect to receive a market based offer. Properties may be listed to be sold as-is, but should not expect an offer within the Market Based Valuation. 7. ACCESS All occupied properties will have a recording Lockbox. These lockboxes record each showing by Agent; time and date. Potential Buyers need to have easy access to the property and the front door key has to work properly. Alarms, gate codes and special showing instructions will be included in the private remarks section of the FMLS & MLS listings, and not available to the public. The lockbox for occupied properties need not be placed on the front door. 8. MARKETING MATERIALS - An indoor flyer will be prepared for each listing within 15 days. The flyer will contain pictures as well as a descriptive narrative of the property. The seller s disclosure will be provided on request to any agent who requires it.
5 9. CLIENT UPDATES Updates are not calendar scheduled, but are based on market events. a. Target Market Updates As frequently as daily, you will be apprised of new listings & properties put under contract within the Target Market. The property s position relative to the Target Market will be monitored to insure it is in proper perspective. If possible, each sale in the target market will be analyzed to determine why your property was not selected. b. Showing Activity Each Agent that shows the property will be asked to provide feedback making any comments they care to provide. Normally, 75% respond; these completed feedback responses will be forwarded to the Client when received. Those Agents who request additional information will be serviced as a priority. c. Time on Market In the event the property fails to get a successful contract within the indicated absorption rate; a recalculation of the Target Market will be conducted looking at the property s performance relative to any competition. The investigation of the Target Market will indicate that either the absorption rate has deteriorated, or the property has not competed successfully. Specific recommendations in terms of INCENTIVES / REDUCTIONS will be made to attempt to bring the property in line with the Target Market. Once these are implemented, the entire database of sign callers and Showing Agents will be notified of the changes. 10. OPEN HOUSES Open houses are scheduled within the 1 st 30 days of listing; this gives me a chance to examine the home as well as get feedback from people who come to the Open House. 11. OFFERS All formal offers are required to be submitted to the Seller. All informal offers will be submitted as received. All interested Buyer s Agents will be contacted, if possible, prior to making an offer, in order to insure the offer is acceptable and workable. 12. CLOSING I will attend all closings with you. I can attend the closing for you using a Power of Attorney if allowed by the closing attorney; if you cannot be there. I bring all of the tools to the game. It is a beauty contest and a price war, and you better have all of the tools if you expect to succeed. Always remember that you have two competitors; those in your target market and new construction; it is always about price and perception of value and quality. Start at the front door and work your way inward; the potential buyer you want will!
6 What I do different than other agents: I price & monitor based on the Competitive Market Approach. Nobody but me will look at each home that gets a contract as a missed opportunity to have sold your home. I preplan the selling process to include contingent upgrades to your home. I don t ask you to spend your money until it is absolutely obvious that it needs to be spent. I personally contact each agent that expresses an interest in your home in order to discuss the merits of your home. I don t rely on auto response systems to sell your home. I place a professionally prepared Audio Tour on your yard sign and call capture each caller. I continually re-photograph your home. As we restage the home; I will continually re-photograph. As the azaleas bloom and the grass turns green, I will be there. I don t do the following: Waste your time with no specific game plan. Put flyers on the street and let our interested Buyers get away. Use listing pictures that have no purpose. Spend more time selling you than selling your home.
7 Preparing Your Home for Showings To ensure that your home looks its very best to potential buyers, it s helpful to ask yourself these questions: Do all the light bulbs work? Are the fixtures clean? Exterior Does the yard appear well-maintained? Are the trees and bushes trimmed? Is your lawn mowed and edged? Is your lawn free of weeds? Are the decks and patios clean? Does your home need painting? Are there any exterior holes or cracks? Are your walks and porches clean and in good repair? Does your roof leak or sag? Are any roof shingles or tiles missing? Is your chimney in good condition? Carpeting/Walls/Ceilings Are your carpets clean and in good condition? Do your carpets need stretching? Are there any pet or smoking odors? Do your walls have any cracks or holes? Do your walls need painting? What about that wallpaper? Do your ceilings have any water stains, cracks or peeling? Do your ceilings need painting? Kitchen Are your appliances clean and in good working order? Are your cabinets in good condition? Are your countertops in good condition? Is your tile grout clean? Is your sink stained, chipped, or in need of re-caulking? Bathroom Do your faucets turn off completely? Do your sinks drain freely? Are your toilets in good condition? Are your shower doors clean? Do your tubs need re-caulking? Is your floor in good condition? Are your vanities and mirrors in good condition? Living Room Is your fireplace clean? Is the fireplace screen in good condition? Are all draperies, shutters and shades clean and working properly? Do any window screens need repairs? Do all the windows open and close easily? Are the windowsills clean? General Are your doors in good condition? Do any doors sag or stick? Do the locks work? Is the paint in good condition? Basement/Attic Are they organized? Are they well lit? Are they clean? Are the stairs in good repair? Do the doors open and close easily? Are there any signs of insects or rodents? Is the exterior of the furnace and hot water tank clean? -Are they insulated from the outdoors and the interior of the house? Vacuum up and clean the sills.
8 Garage Is it clean and organized? Is it well-lit? Is the floor swept? Are there oil spots or other stains on the concrete?
9 How to Prepare for a Home Inspection Preparing your home for inspection will not only present your property in its best condition, but will also help to prevent closing delays due to incomplete or repeated inspections. - Make repairs ahead of time. Even minor blunders can present your home in a less favorable light. Fix the little things like handles, knobs and faucets. Repair major defects (like roofs), or be straightforward about them and adjust the asking price. - Check your attic for evidence of visitors. - Thoroughly clean the house. It may seem obvious, but cleaning is often overlooked before an inspection. Inspectors aren t always looking beyond the mess to the real issues within the home. An unkempt house gives the impression of uncaring owners and neglected regular maintenance. Additionally, new buyers are likely to accompany the inspector and will feel the same way; they may possibly rethink their purchase or find the property less appealing than they originally envisioned. - Have the home ready on time. A home inspection can take as long as three hours. With busy schedules to keep and reports to prepare, home inspectors try their hardest to be on time. Often, inspectors are early. A good rule of thumb is to be ready half an hour before the appointment time. Remember as well that inspectors often think little of starting early around the outside of the property, without your knowing they are even there. - Leave keys. Leave keys to all locked utility boxes and doors. Inaccessible systems are cause for incomplete inspections and delays. Arrange a place for the inspector to find the keys, or provide them ahead of time. - Keep utilities connected. If the property is unoccupied, be sure all utilities--electricity, gas, oil, water--are connected and filled enough for appliances to run. The home inspector will need to test heating and cooling systems, plumbing, appliances, faucets, electrical systems and more. Without utilities, required testing cannot be done. The result is an incomplete inspection. Incomplete inspections will delay the release of the home inspection contingency clause, which, in turn, will delay closing. For liability reasons, home inspectors will not light pilot lights on stoves, furnaces or water heaters. - Clear workspace around systems. Home inspectors need adequate room to access appliances, electrical panels and heating and cooling units. Remove boxes, stored items and debris from these areas; at least three feet of workspace is recommended. - Provide access to additional spaces. Attics, garages, sheds, basements and crawlspaces need to be accessible to the home inspector. Clear away any blockages and make sure doors can be opened (unlock if necessary). This includes accessing inspection hatches for bathtubs, water meters and shutoff valves. - Remove appliance contents. Dishwashers and washing machines are subject to the home inspection and will be run. Even if an appliance is not included in the sale, inspectors will run your machine to ensure that the plumbing, venting and electrical supplies are in working order. - Clear exterior clutter and debris. Foundations, outside electrical outlets and faucets are a few of the items inspectors will want to see outside. Remove trash cans, trim branches and brush, dispose of dead limbs and clear an accessible path around the home, especially in winter. Again, the inspection will be easier, but the appearance of your house will improve as well.
10 -Collect receipts for repairs. Leave receipts and repair invoices for anything you have had fixed in the home. This shows proof of upkeep and answers to many questions an inspector may have. - Leave. Plan to leave for at least three hours. This includes children and other home occupants. Inspectors are often accompanied by buyers, and both will want uninhibited, free access to ask questions and explore the home.
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