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![A Word of Thanks to You!
Thank-you for the opportunity to discuss the possibility of marketing
your home..
The purpose of this pre-marketing introduction is to:
1. Help guide you through “merchandising” and “competitive market
position” strategies that are in your control;
2. Explain how Better Homes and Gardens Real Estate Gary Greene
and I can assist you in achieving the sale of your home and
3. Give you a sense of comfort that our experience and expertise can
get you the results you want.
Information about merchandising your home and competitive market
positioning is included FIRST because:
1. The National Association of Realtors® 2012 Profile of
Homebuyers and Sellers identified these two elements as one
of the most important wants sellers requested of their listing
agent,
2. Market position [pricing] and Merchandising are the most
important elements of securing a home sale and
3. Both elements take the most time to cultivate to achieve the
right marketing mix.
Please feel free to call upon me for any questions that may come to
mind. I want you to be happy with the services you receive from
me.
Very truly yours,
Joyce & Chris Hanson
Marketing Consultants](https://image.slidesharecdn.com/joycechrishanson-marketingproposal-130208231247-phpapp01/85/Joyce-chris-hanson-marketing-proposal-2-320.jpg)
Joyce & chris hanson marketing proposal
The document is a letter from Joyce & Chris Hanson, marketing consultants at Better Homes and Gardens Real Estate Gary Greene. It thanks the recipient for discussing marketing their home and outlines their strategy to guide the recipient on merchandising and competitive market positioning to achieve a successful home sale. It emphasizes that merchandising and market positioning are the most important elements to secure a sale and require the most time and effort.
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Joyce & chris hanson marketing proposal
- 1. Joyce & ChrisHanson “A Powerful Connection” Realtors® | Marketing Consultants
- 2. A Word ofThanks to You! Thank-you for the opportunity to discuss the possibility of marketing your home.. The purpose of this pre-marketing introduction is to: 1. Help guide you through “merchandising” and “competitive market position” strategies that are in your control; 2. Explain how Better Homes and Gardens Real Estate Gary Greene and I can assist you in achieving the sale of your home and 3. Give you a sense of comfort that our experience and expertise can get you the results you want. Information about merchandising your home and competitive market positioning is included FIRST because: 1. The National Association of Realtors® 2012 Profile of Homebuyers and Sellers identified these two elements as one of the most important wants sellers requested of their listing agent, 2. Market position [pricing] and Merchandising are the most important elements of securing a home sale and 3. Both elements take the most time to cultivate to achieve the right marketing mix. Please feel free to call upon me for any questions that may come to mind. I want you to be happy with the services you receive from me. Very truly yours, Joyce & Chris Hanson Marketing Consultants
- 3. Merchandising and Competitive Market Positioning The Two Factors Affecting Salability That The Seller Controls The Elements of Merchandising
- 4. Elements of Merchandising Access Whatpotential buyers Expect when requesting a showing. Steps you can take to enhance a sale: Home warranty Professional home pre-inspection Staging
- 5. Elements of Merchandising Staging You’reinvited to visit our “Stage to Sell” video section of bhgrealestate.com or Scan the code with your cell phone to watch “Staging to Sell” success story video, http://neom.us/431609696028
- 6. Elements of Merchandising Curb Appeal Makethat first impression count! Interior Condition Learn how to leverage the “Power of Color” in the video section of bhgrealestate.com to prepare your house to sell.
- 7. Merchandising You Can Control Checklist before leaving home Exterior Remove toys, newspapers, yard tools and other clutter. Tidy up; pick up after pets. Park vehicles in the garage or on the street; leave the driveway clear. Add color with flowers and potted plants. Interior Make beds; clean up dishes; empty wastebaskets. Remove clutter throughout; organize closets and cupboards; put away toys. Set out “show towels” in baths. Freshen the air; potpourri or baked bread aroma; deodorize pet areas; set comfortable temperature. Do quick vacuuming and dusting. Arrange fresh flowers throughout. Fire in fireplace (when appropriate). Turn off television; play soft background music. Open drapes and shades; turn on lights.
- 8. Competitive Market Positioning Market positioning can be the key to maximum market exposure and, ultimately, a satisfactory sale. The existing pool of prospective buyers determines a property’s value, based on: Location, design, amenities and condition. Availability of comparable (competing) properties. This includes not just your neighborhood but similar priced neighborhoods in the region. Economic conditions that affect real property transactions. Factors that have little or no influence on the market value of a house include: The price the seller originally paid for the property. The seller’s expected net proceeds. The amount spent on improvements. The impact of accurate positioning: Properties positioned within market range • generate more showings and offers, and • sell in a shorter period of time. Properties positioned too high have a difficult time selling.
- 9. Competitive Market Positioning A Competitive Market Analysis is an x-ray of the market and considers competing properties that: Have sold in the recent past This shows us what buyers in this market have actually paid for properties competitive to yours. Are currently on the market These are unsold properties that will be competing with yours for the attention of available buyers. Failed to sell These homes were rejected by the market place. Understanding why these properties did not sell can help avoid disappointment in the marketing of your property.
- 10. Competitive Market Positioning We are the only broker that takes the traditional market analysis 2 steps further. We’ll review these 2 extra steps together: 1. Trend of “time on the market to sell” by price range of your neighborhood and 2. Trends in Centralized Showing reports to find out what price ranges buyers are looking in your zip code. An analysis of the above trends lend more insight into the current market and helps you make a better decision on the initial market position..
- 11. Competitive Market Positioning What happens when you position your home beyond market range? •Fewer buyers are attracted, and fewer offers received. •Marketing time is prolonged, and initial marketing momentum is lost. •The property attracts “lookers” and helps competing houses look better by comparison. •If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan. •The property may eventually sell below market value.
- 12. Competitive Market Positioning Market Position in Relationship to Fair Market Value MARKET POSITION IN % OF PROSPECTIVE RELATIONSHIP TO FAIR MARKET PURCHASERS WHO WILL VALUE LOOK AT PROPERTY
- 13. My Professional Experience OurPhilosophy The opportunity to make a positive difference in the lives of others is what motivates us everyday. Our Credentials Members: National Association of Realtors®, Texas Association of Realtors® and Houston Association of Realtors® Our Background Native Houstonians, both earned a BBA in Marketing from the University of Houston and both are Graduates of the Texas Realtor® Institute (GRI). Our Awards Office Top Producers
- 14. Company Background The company Foundedin 1963 in Houston by Gary Greene, the founder is still associated with the company. Gary Greene is the longest existing real estate firm in Houston. Locally owned and operated by partners, Mark Woodroof and Marilyn Eiland. Years of experience 50 Number of agents 850 Accomplishments In 2012, the firm was ranked Number 1 in Houston by the Houston Business Journal’s Book of Lists by dollar volume closed, and number of transactions. It was ranked Number 44 nationally in 2012 by Real Trends in the Top 100 Brokers by closed transactions.
- 15. Changing the Businessof Real Estate Through Service, Innovation and Values The name “Better Homes and Gardens” is a household word nationally. The name “Gary Greene” has been known to Houston households since 1963. Two names you can trust. More than 850 agents More than 19 offices Celebrating 50 years of success
- 16. Our Commitment toYou Our commitment is to provide a results-oriented real estate experience that will achieve the highest price possible for your home with the least inconvenience to your family and in a time frame that meets your needs. As your marketing professional, I will: •Communicate with you on an agreed upon interval and method: phone, email, text message •Provide you with ideas and recommendations that will enhance the presentation of your home to the public and to the real estate community. •Develop a list of features that will more likely attract showings to the right buyers. •Schedule the dates you can expect completion of marketing activities including: •Multi-photo marketing on all web sites, provided web site accepts multi-photos under normal conditions. •Color flyers strategically distributed to generate activity •Mobilize the entire local market sales force of Realtor® members of the Multiple Listing Service®. This will include e-mail or direct notification to those agents who have sold a home in your area in the last six months. •Place your home on high-traffic real estate internet sites – see our Internet Marketing Menu. •Communicate daily or weekly updates about changes in your market. •Periodically reevaluate the market, reviewing with you recent activity of sales and new listings. •Provide you with available feedback after showings, when received and be candid about suggestions that are made to improve our position. I will look for every opportunity to obtain an offer to purchase your home. •At your request, I will obtain information and a sample quote on insurance for your home in order to facilitate the sale. •Obtain information from the buyer on their ability to qualify for a mortgage before you are asked to take your home off the market for a contract. •My manager will be available to discuss any concerns with you. •When an offer is received on your home, I will diligently work as your advocate to help you achieve the highest price and the best terms possible. I will also be your advocate in the negotiation of repairs. •Coordinate all the closing procedures with the mortgage company, the title company, the appraiser, the inspectors, and the cooperating agent. •Review your papers before closing, if available and attend the closing with you. Our Guarantee to You: If, during the listing period, you feel that I do not perform to this standard, you may talk with my manager and if your concerns can not be satisfied, Better Homes and Gardens Real Estate Gary Greene will release you from the listing. Joyce & Chris Hanson ______________________________________ ______________________________ Better Homes and Gardens Real Estate Gary Greene Seller _________________ ____________________________________________________ Date Seller
- 17.
Editor's Notes
- #3 NOTE TO SALES ASSOCIATE: Customize this page with personal information or rewrite the letter to suit your personality. Add or delete points as needed. This is your opportunity to create personal value and convince the seller that you are the best person to market their property.
- #4 A marketing plan and promotion strategy is critical to attracting buyers to a property and ultimately to getting the property SOLD! And that’s where merchandising strategies come in. Have you ever noticed displays in the retailers store windows of the products they sell? This is merchandising. Retailers spend a great deal of time making sure their products look appealing to consumers so they catch their attention and encourage them to have a look. These same principles apply to selling your home. We need to merchandise it to make it as appealing as possible to prospective buyers. Let’s look at the elements of merchandising.
- #5 Access is a big part of merchandising. It is next to impossible to sell a home that people can’t see. We use a showing service known as Centralized Showing or CSS to schedule appointments. It is important though that you allow showings as requested. That won’t be a problem will it? Also, buyers are often reluctant to ask questions and display their feelings if the sellers are home. So the best thing you can do is leave the house during showings and open houses. (And be sure to take Fido with you.) By attracting and providing peace of mind to prospective buyers, these steps can enhance the salability of your property: Home warranty A home warranty can give prospective buyers peace of mind by providing repair-or-replace coverage of major home operating systems and appliances. We recommend American Home Shield, Old Republic or First American Home Warranty. They have a quality commitment to us to provide excellent service to our clients. Professional home inspections Professional inspections, such as structural, mechanical and termite will reveal the current condition of the property. We recommend a pre-inspection. This buys you great “peace of mind” because you can remediate any defects sited on an inspection report before the buyer’s inspector flags it. A pre-inspection saves you time and it can save you money. Buyers often use an inspection report to negotiate the price down. An ounce of prevention is worth a pound of cure. Staging Homes - homes that are staged derive an average 6% higher sales price than non-staged homes and have proven to shorten market time. Staging enhances photographs used for marketing by enriching the look and feel of your home. Multi-photo marketing Rich professional photography also helps sell your home. We take extra care in presenting a great experience by showcasing your home with rich photography both online and offline. Mr. and Mrs. Seller, can you see how these elements will be important in reaching your sales goals? [check for acceptance, agree and continue]
- #6 Let’s talk about staging. It’s important to your bottom line. Homes staged have shown on average to sell faster! I know that is of interest to you. An even better statistic - a staged home derives on average 6% more value in the sale than a comparable home in the area that isn’t staged. So, staging can add more money to your bottom line. Generally speaking, staging takes a home from a product that has been customized for the owners and converts it into a product with broad universal appeal. We’re talking neutral colors in the background, colorful items only in accessories, de-personalization, clutter-less, clean, repaired, luscious landscape and and sparse furnishings – all with one thing in mind. Viewers can visualize their own possessions in the home. We have created short informational videos providing tips on how to stage and prepare each room of your house to sell. When you have time this week, please take a look at these. They can be found in the Videos section of bhgrealestate.com [check for acceptance, agree and give seller recommendations list]
- #7 Let’s review curb appeal and interior condition- I’m sure you’ve heard the expression, “you never get a second chance to make a first impression.” Well, in real estate, curb appeal is the first impression. I have worked with buyers who will immediately eliminate a property from consideration based on its drive-by appearance. Keep the lawn manicured, walkways cleared, the landscape trim and neat, leaves raked, …you get the picture, don’t you? The smallest things make a big difference. Using our “Exterior Checklist”, we can walk together outside and earmark those things that need attention. And also using our “Interior Checklist”, we can walk together through the home and earmark items that need attention. Shall we start? {With Exterior and Interior checklist on clip board, walk through the outside and inside of the home [checklist on the next two pages] and then write up recommendations for improvement – [see page after Interior and exterior checklist] Get an agreement of when these items can be completed – post date your listing agreement to a date when these are complete and a photography shoot can be scheduled. You want the home in tip top shape BEFORE you put it on the market – to generate the highest maximum dollar and so you show it to your office and everyone in its highest and best position.
- #8 How to use this page Every showing counts! Even if the sellers take care of all the home enhancement steps you recommend, a showing can be spoiled by dirty dishes or unmade beds. This is a checklist to remind the sellers of the fine tuning necessary for impressive previews and showings. Suggested presentation points • “ We’ll want your home to be just as beautiful as possible whenever it is seen, whether broker previews, buyer showings or open houses. First impressions really do matter, so your house will need to look its best on a moment’s notice.” • “ Experience has taught us that the simplest things can spoil a showing, and that can be very costly. Here are some basic items you’ll want to take care of when a showing is expected.” • “ Whenever you’re going to leave the house, it’s wise to assume that it might be shown while you’re gone, so it’s always a good idea to put the house in prime showcase condition before you leave.”
- #9 There are two components to the successful sale of a house. One is an effective Marketing Plan. The other is a realistic Positioning Strategy. They are equally important.” • “ You’ve made it clear that you expect to get nothing less than top dollar for your property, and that’s exactly what I want to help you do. My goal is to help you sell your house for the highest possible price, so that you’ll receive the maximum net proceeds.” • “ The challenge is, how do we do this? The key is to determine a realistic positioning strategy - one that is high enough to bring you top dollar, but not so high that it discourages buyer interest.” • “ Strange as it may seem, sellers and the sales professional they hire have no control over property values and no power to dictate sales prices. Market value is determined by what informed buyers will pay for competing properties -houses with similar location, amenities and condition.”
- #10 Now that I’ve seen your home and gotten an idea of how you feel about merchandising your house, let’s review how we can establish an initial market position. I say, “Initial Market Position” because – the market is always changing. It is never static – so neither should the list price of your home be static. Like all other brokers – I will create and share with you a competitive market analysis which consists of Homes sold in the recent past Homes currently on the market – that’s what you will be competing with and of course, we won’t know what others you’ll be competing with until they come on the market and we can compare market positions. And we also want to know Homes that failed to sell – these were rejected by the market and we want to understand why so we don’t become part of the same category. These 3 analyses of recent activity or lack thereof of homes in the market will be of great guidance to us in establishing a list price. However, a competitive market analysis is hypothetical. We’re looking at a perceived value of your home in comparison to others – but those other homes sold, were listed or were rejected during different market conditions than is current. We are the only broker that takes the CMA 2 steps further. We look at how this list price established by a CMA now looks in your current market. The whole point is to give you more information so you make better decisions.
- #11 The real estate market is always changing. More unsold properties enter the market, some go off the market, and some sell. We want to establish an initial market position for you now based on the CMA, the current rate of sales and current buyer demand. We’ll look at current buyer demand by price ranges in $5,000 increments. All of this to establish an initial market position. It may be necessary to position it up or down in the future. We’ll know if we have it priced correctly by the number of showings you are getting versus offers. If the market is not responding favorably to our initial market position – we’ll perform these 2 steps again to see what’s changed and how we need to respond. Because this is in a pre-listing packet or Step 1 of a Two Step Listing Proposal – this is for informational purposes only. It is to acquaint the seller with our method of arriving at an initial market position. We will perform the CMA in Step 2 and then compare the position point derived in the CMA with 1. Time on the Market to sell by price range for the neighborhood” and 2. Trends in centralized showing reports to show what buyers are currently looking at in the zip code. Here is how to calculate time on the market and how to get to CSS showing trend reports. First – let’s take a look at the current trend of time on the market for the position point we’ve selected [plus and minus $5,000 to establish a price range] Total # of closed sales in a 6 month period divided by 6 months = # of properties absorbed by the market on a monthly basis – the absorption rate. Total listing inventory ÷ the absorption rate = month supply of homes [MOI] months of inventory. As the listing agent, you will want to calculate absorption rate and MOI by price range, not the entire neighborhood where the home clearly won’t compete. Sample: You completed a detailed CMA on a sellers’ home and determined a position point of $339,000. The seller wants to list at $359,999. Determine the number of like-kind homes that have sold in the last 6 months at $359,999 [take a range $5,000 above and $5,000 below $359,999 – like $354,999-$364,999] It shows 4 properties sold in that price range during that time frame. Divide 4 properties by 6 months to get the absorption rate: 4÷6=.67 Search the number of like-kind homes currently on the market [listed between $354,999and $364,999]and you find 17 properties. Divide 17 properties by monthly absorption rate [.67] = 25.37 months supply . Now do the same exercise at $339,000 # of like-kind properties that have sold in last 6 months = 13 ÷ 6 = 2.17 # of like-kind homes currently on the market for sale = 6 ÷ 2.17 = 2.77 months supply 5. To further your case, you can also take the CSS showing reports for both price ranges to see what type of buyer demand both of those price ranges are experiencing in the market. Script: Mr. Seller, you have mentioned that you would like to list your home at $359,999. In terms of time on the market – homes priced in that range take 25.37 months to sell. Unfortunately, it’s just the current trend. On the other hand, if you positioned your home initially at $339,000, the absorption rate equals a 2.77 month supply. 25 months absorbs a lot of your time and money maintaining the home and may very well absorb the $20,000 gain you’d realize from the price you want. Would you rather target it closer to 2.77 months to get it sold quicker? It is also possible that by positioning it closer to the $339,000 price range – buyers would see more value in your home than the competition. This could lead to multiple offers and a rise in bids on the price. See also CSS on showings.com – select the tab, market statistics – and after selecting parameters [dates of showings, zip code and $5,000 increments] select Current Trend Showing Reports. This will give you an online report of showings in the most recent past that indicates where buyer demand is strongest.
- #12 Suggested presentation points • “ I know you want to get top dollar for your property. I want you to get it too! The way to do that is to position it right in the market, right from the start.” The graph shows that the most amount of activity on a listing occurs within the first 4 weeks. That is why it is imperative to get its condition and initial market position right from the start. • “ Setting too high a price will fail to get you what you want, and in fact it may cause you to end up with less. Overpricing inevitably leads to grief.” • “ When showing properties to their buyers, some sales professionals will seek out homes that are priced too high and use them as ‘bouncers.’ That means they’ll show them to their buyers to help sell another home that is more favorably priced. You don’t want your house used as a bouncer, do you?” • “ A high price is generally interpreted to mean the seller is not too motivated to sell, and that often attracts buyers who are not very motivated to buy. Tire-kickers, lookers and nosy neighbors won’t help you achieve your goals.”
- #13 “ There is a relationship between your initial market position and the time it takes a house to sell. Generally speaking, the higher the price, in relation to market vale, the longer the market time.” • [Refer to the “Buyer Pyramid” graph on this page.] “This graph illustrates what happens when a property is positioned too high. The pool of available buyers drops off quickly, and there are comparatively few buyers willing to pay higher prices. It takes more time to locate these buyers, so it takes longer for overpriced properties to sell -if they sell at all.”
- #14 NOTE TO SALES ASSOCIATE Customize this page with personal information. Add or delete bullet points as needed. This is your opportunity to create personal value and convince the seller that you are the best person to market their property.
- #18 I