Selling In Today’s MarketFebruary 21, 2013 Beaverton, ORFollow: @RedfinPortlandLike: http://www.facebook.com/RedfinPortland
Agenda● Intro to Redfin● Understanding the Market● The Selling Process● Pricing Strategies● Marketing your home● Repairs & updates● Curb appeal● Staging & perfect pictures● Questions?
A Little Bit About Who We Are● Redfin 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 ($$)
Case-Shiller: Portland Area v. 20-City 250.00 200.00 150.00 100.00 Portland Area 20-City Composite 50.00 0.00
Case-Shiller – By the NumbersPortland Area Up 6.7% year-over-year Peak was July 2007 Down 23.8% from peak Currently at April 2005 prices20-City Composite Up 5.5% year-over-year Peak was July 2006 Down 29.4% from peak Currently at September 2003 prices
Beaverton January Stats for Homes
Beaverton January Stats for Homes
Selling Your Home
7 Secrets to Sell Your HomeFaster and for More Money1. Know the Process: Knowledge puts you in the Driver’s Seat2. Know Your Numbers: Price it right the first time3. A House Not A Home: Prepare Your Home For the Market4. Surviving the Inspection: Maintenance & Repairs5. “Why now?”: Upgrades & Touches that Payoff6. Sparkling Debut: Photos make the FIRST Impression7. Get Noticed: Exposure is the Key!
The Selling Process
The Selling Process● Decide on selling● Meet with an Agent● Stage and prepare your Home (Open Book referrals)● Photograph your home● Take it live!● Get an offer & expert help in negotiating = Signed Contract● Work as a Team through the Inspection & Appraisal process● Signing / Funding / $$$
Pricing: An Art & Science● Consider the current economic factors ► Housing market ► Mortgage rates ► Employment & other Economic factors● Consider ► Location-Competition-Timing-Condition-Price ► Comparable homes in your area “Active”: Your direct competition “Pendings”: How many DOM can indicate final price “Solds”: Watch the trends of list VS sold prices
Pricing StrategiesWhat if we over price?● Fewer Buyers see your house● More days on market can elicit suspicion● Need price - reduction plan● Hope: One Buyer pays the higher price● Risk: Appraisal concernsWhat if we under price?● Elicit Market Interest● More buyers see your house = more potential offers● Sold more quickly● Hope: More than 1 Buyer● Risk: Timing works against you & only 1 Buyer makes an offer
Comparative Market Analysis● What 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 level ► Business style ► Underlying Strategy
What is the Best Day to List?● Homes listed on Sunday get marginally more online views.● Homes listed on Friday are toured 19% more.● Homes listed on Friday or Thursday sell for slightly closer to original list price.● Homes listed on Friday are 12% more likely to sell in 90 days or less.
How to Get Your HomeReady to Sell
Front Door● The first impression of the house● Clean!● Nice hardware on door goes a long way● Clean/updated hardware - spend $100 on updated locks
Porch● Don’t put a lot on it● A place for people to sit● 1 or 2 great decorative pieces● Grill – make sure it’s clean!● Porch lights ► Make sure they work ► Buy new ones – Great touch for under $50
Paint● Things to consider: ► How much light the home gets ► What color the neighbor’s home is painted ► Specific to style (modern vs. craftsman)● Contrasting colors - Light trim/solid color● Painting door an appealing color
Driveways and Pads● Kill weeds● Cut branches and bushes back● Shovel driveway in winter● Hide garbage cans● Power wash driveway and walkway
The Backyard● Power wash patios/deck● Furniture ► Buyers will sit ► Borrow from a friend ► Bright pillows● Trim back large bushes – makes yard appear bigger● Fence ► Paint/re-stand ► Make 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!
Kitchen Floors: Tile● Tile: 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!
Kitchen Counters and Cabinets● Backsplash: ● Cabinets: ► A tile backsplash can make for ► Often are in good shape but a nice upgrade from just wall show normal signs of wear paint between your from daily use. countertops and cabinets ► Painting cabinets that are in ► There are new products out good shape but show signs of there that can make tackling moderate wear & tear is an this type of project much easier inexpensive alternative to if you want to try to take on this replacing them. upgrade yourself. SimpleMat is ► Re-facing is another cost one example. effective alternative to putting in all new cabinets.
BathsThis is the second place that people are going to really focus on.
Baths: 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:
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 & PerfectPictures
Tips for Staging Your House● De-clutter! De-clutter! De-clutter!● Get rid of ALL smells (even the ones you like!)● Get the dust and film off of everything● Wash windows – Inside & Out● Make all beds & add throw pillows to couches● New fixtures and drapes in the bathroom or kitchen● Neutral 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
How Much Can You Expect toSpend 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
The Return on Investment ofStaging Your Home● If, for example, staging your home costs $2,600 - and results in a $26,000 increase in your homes sale price - thats a $1,000% return on investment● "The investment in staging your home will always be less than a price reduction on your home." - Barb Schwarz, founder of home staging● "This home was on the market for 90 days with no offers. At the insistence of the homeowner, I was contacted to stage the property. It sold two days after staging. What does that tell you about the importance of staging?" - home stager, St. Louis, MO
Marketing Your Home
Listing with Redfin● More People See your Home ► Redfin.com is the #1 used RE search site in the US ► Your listing gets Premiere placement on Redfin.com ► Mobile app target “On-the-Go” Buyers ► Professional HD Photography ► Stunning “Get Noticed” Flyers● You’ll Know It All at Every Step ► You’ll have a whole Team on your side ► Link to show how many people have viewed your home ► Advise you at every step in the process
Benefits of a MLS Powered Site● Recent Windermere/Redfin study across 11 major U.S. cities● Redfin.com has 20+% more agent-listed properties than two national portals, Zillow and Trulia● We display new listings 7 to 9 days faster, and record sales faster too
Marketing BlitzTwice as many people see your home on Redfin.com #1 Brokerage Website 100-250 extra clicks per day
Marketing BlitzTwice as many people see your home in email
Marketing BlitzPotential buyers see your home on the web We buy premium placement on Realtor.com, the top real estate website in the U.S. (Source: Hitwise)
Thanks for Coming!Please fill out the survey that was handed out at the beginning of class. Weappreciate the feedback!Check out our upcoming classes and events at http://www.redfin.com/buy-a-home/classes-and-eventsRebecca Walter | Listing Team | Redfinrebecca.email@example.com | T: 503.482.8204