Selling in Today’s Market Redfin’s Ballard Team March 13, 2012
Agenda for March 13, 2012• What Redfin is all about• How to sell your home• Photos• Curb appeal• Staging• Pricing• How people see your home• Negotiating• Inspections and contracts• Post Mutual
What Redfin Is All AboutOur MissionTo use technology and a customer service focus to make buyingand selling homes better for consumers.The Redfin Difference: service, not sales• Agents 100% focused on clients, not prospecting• Every client surveyed, every response published• Every agent paid on client satisfactionWhat That Means for You: a good sale, not any sale• Deepest local expertise: what’s selling, who’s buying• Accountable for results• Focused on your goals, not mine
A Little Bit About Who We AreRedfin is a real estate brokerage that hashelped over 20,000 people buy or sell a home;97% would refer us to a friend.• Customers, not commissions• Informed decisions• The right home for the right price No obligation Get back up to 50% of our commission
How to Sell Your House• Perfect debut • Staging: invest in the house, not fees • Professional photos: optimized for online • Pricing: a science, not an art• Marketing blitz • Website syndication • Open house, private tours, yard sign, flyers• Sustained effort • Tour follow-up • Real-time traffic dashboard
Case-Shiller: Seattle Area v. 20-City 250.00 Case-Shiller: Seattle Area Down 5.6% year-over-year Peak was July 2007 200.00 Down 32% from peak Currently at May 2004 prices 150.00 100.00 Case-Shiller: 20-City Composite Seattle Area Down 4.0% year-over-year 20-City Composite 50.00 Peak was July 2006 Down 34% from peak Currently at February 2003 prices 0.00Considering… Looking… Buying…
Where is the Market Headed?• Supply of homes is at a five-year low, but signs are pointing to a slight increase in inventory this spring• Foreclosure inventory has been driving price declines, but number of them are decreasing
Strategies for Sellers…Tips for Pricing Your Home • Buyers today know value • Effects of wrong pricing • Price BlockingTips for Marketing • List on a Thursday or Friday • Be flexible on showings • Open Houses • Online Marketing & Photography • http://www.frontdoor.com/sell/10-tips-for-selling-a-home-in-the-fall/55828
Tips to Making Your Curb Appealing• Clean up and fix your yard• Fix your mail box and add house numbers if missing• Wash off your siding• Flowers in pots, weed, mow & edge lawn• If your house needs a quick refresher, paint the front door instead of the whole house!• Park your cars in the garage, not the driveway
Pricing: An Art & Science• Consider the current markets • Housing markets • Mortgage rates • Economic and other factors• Consider the price • Competitive environment • Comparable homes in your area • Active, under contract, sold (within 90-120 days) • Appraisal concerns
Pricing Strategies What if we under price? What if we over price?• Stand out from competition • Loss of Interested Buyers• More buyers = more offers… • Eliminates Offers = Lower Price• Lower carrying costs • Long days on market• Risk: one buyer • Need price-reduction plan • Hope: one buyer • Appraisal concerns
90% of Buyers Use the Internet to Search Internet 76% 13% 10% Real estate agent 68% 19% 13% Yard sign 24% 35% 41% Open house 12% 34% 54% Newspaper ad 11% 29% 60% Home book or magazine 7% 18% 74% Home builder 6% 11% 82% Television 1% 6% 92% Relocation company 1% 2% 96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Frequently Occasionally Rarely or not at allSource: 2009 NAR Profile of Home Buyers and Sellers
Negotiations and Tactics• Understanding current market conditions• Personal vs. business• Evaluate entire offer • Price • Settlement date • Inspections • Financing• To counter or not to counter
Inspections and Contracts• Types of home inspections • Home Inspection vs. General Inspection • Opportunity to negotiate repairs?• As-is terminology• Seller credits
After Offer is Accepted…• Agent • Mutual Acceptance• Alternate Agent • Earnest money due• Team Coordinator • Loan Application • Title Contingency • HOA Contingency (condos) • Inspection Contingency • Financing Contingency • Closing
How Commissions Work Example: You buy a home for $500,000 Traditional Agents Commission Seller’s Agent (3%) $15,000 Buyer’s Agent (3%) $15,000 Redfin Agents Commission Seller’s Agent (3%) $15,000 Redfin (50% of commission) $7,500 Redfin Buyer (50% of commission) $7,500 • Commissions are determined by the seller • Redfin refunds 50% of the buyer’s agent commission • Applied to closing costs • Refund is tax-free • Minimum Redfin fee: $6,000Considering… Looking… Buying…
Thanks For Coming Out Tonight!Please fill out the survey we’ll sendtomorrow along with the slide deck. We’dlove to get your feedback on how the classcould improve.If you’d like to get in touch with an agent,just chat with us now or contact us onRedfin.com.
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