3.
What do we need to do to prepare
our condo for the market?
- In the vast
majority of cases this exercise is nothing to dread. In many
instances sellers even advise Fred
the Condo Guy
of changes or improvements
they plan to make. In any event, Fred the Condo Guy will walk through your condo
with you and assume the role of a very critical buyer. At the
end of the tour, Fred
the Condo Guy will
have some suggestions to make that will
be aimed at further enhancing the marketability of your condo.
In addition, for those who wish, Fred
the Condo Guy has several pamphlets and
a video that can be utilized to learn even more about
"Dressing Your Condo for Success." For those anxious
to get started, Fred
the Condo Guy
provides this list of suggestions aimed at
ensuring that sought after Favorable First Impression…
In
the kitchen
Virtually
spotless and fresh smelling - try putting a quarter section of
lemon in the
disposal and grinding it up.
Did
you remember under the sink, inside the dishwasher and under
the fridge? Consider
replacing outdated light fixtures.
Refrigerator
- remove the magnets, memos and photos…and, clear off the top.
Spruce
up cabinets and drawers by adding new pulls and hardware
Remove
small kitchen appliances, gadgets and collectibles from countertops to create
an un-cluttered look.
Set
out a cookbook open on a stand.
Add
colorful dish towels rolled up and placed in a wicker basket
next to the sink.
Decide
where to add the bowl of fruit and the blooming plant.
In
the bathrooms
Sparklingly
clean.
All
personal care products out of sight.
No
dripping faucets or slow running drains.
Replace
dated or worn light fixtures.
Add
a vanity strip for a current look.
Keep
that toilet lid down.
Organize
the medicine cabinet.
A
new shower curtain can add inexpensive drama.
Display
towels in a combination of neutral and bold colors to soften
the room and add
texture.
Add
a small bouquet of fresh flowers.
In
the bedrooms
Rugs clean and windows spotless
Remove
dated or bold wall coverings.
Organize
closets so they show their largest - All clothes hanging in
the same
direction, very little on the floor.
A
reading lamp, a book and a small vase of flowers on any
nightstand.
Add
a group of green flowering plants to any empty corner.
In
the living/family room
Rearrange furniture for openness.
Showcase
a fireplace by placing logs in and around it.
Use
lemon-cleaning products.
Use
inexpensive "can" lights to create dramatic visual
effects behind large plants
or pieces of furniture
Set
a board game or jigsaw puzzle on a table and add a colorful
bowl of M & M's.
Stage
a quiet space - Drape an afghan over an easy chair and open a book on the
ottoman or end table.
Entertainment
center doors should be kept closed and shelves neat.
Display
a few visually interesting magazines on a coffee table - careful, no
clutter
In
the Basement/Laundry/Garage
Neat and tidy.
Adequate
lighting If it's stored here and you won't use it
until
after
you move out, move it out.
Hang
as many items as possible to remove floor clutter.
Wipe
down that furnace and water heater - they'll look
much
newer.
Arrange
laundry supplies in an orderly fashion to suggest
doing laundry here is quick and easy.
Stage
a hobby project on a workbench to suggest time and space to pursue personal
activities and hobbies.
4.
How will Fred the Condo Guy determine our listing
price? -
Fred
the Condo Guy
will help you determine the market value of your condo first
by generating a Comparative Market Analysis report which will
show us a range of prices being paid for condos in your area.
Other factors Fred
the Condo Guy will discuss that have an influence on market
price include:
1.
Location
2. Square footage
3. Condition of your condo
4. Buyer demand level
5. Competition
6. Market trends
7. Your motivation
8. Interest rates
With
the plethora of information available in newspapers and on the
Internet today, Fred the Condo Guy finds many of his sellers have a
"pretty good idea" with respect to value before the
topic is ever broached. A "probable" price range
will result from this consultation.
The above work being accomplished, it's time to turn our
attention to the "wouldn't it be nice if we could
get" price. Experience tells us that this price is
generally 7% - 10% higher than the upper end of our probable
bracket. The formula now tells us that our listing price lies
somewhere between "probable" and "wouldn't it
be nice if." Most folks find this part relatively easy.
Suffice it to say, nonetheless, an asking price must also
satisfy three basic criteria:
1.
It must be competitive with other condos on the market.
2. It must allow for some negotiation.
3. It must afford the seller the highest
possible return.
You
are invited to fill out the "online short form" to
receive a free Comparative Market Analysis report.
5.
What expenses do we have as
sellers? -The
"ballpark" estimate answer to this question is that
a seller's expenses will total a bit less than 7.5% of the
selling price. A more complete answer can be played out on the
form below and actually give you a very close estimate of your
net proceeds. It is important to note that the brokerage/marketing/commission fee is a negotiable number. The
example here presumes a 6% fee.
|
Selling
price |
____________
|
|
Marketing
fee - 6% |
____________
|
|
State
Transfer Tax - .75% |
____________
|
|
City/County
Tax - $1.10/1000 |
____________
|
|
Title
Insurance - $5.00/1000 |
____________
|
|
Fix-ups |
____________
|
|
Mortgage
Payoff |
____________
|
|
Total
(deduct from selling price) |
(___________)
|
|
Net
Proceeds |
____________
|
6.
What will Fred the Condo Guy do to market our
condo? -
Fred
the Condo Guy's
marketing plans may vary somewhat based on what he perceives to
be the target market for your particular condominium. Suffice
it to say here that, although plans may vary, the list below
encompasses the arsenal of marketing weapons that have led to
the success of fredthecondoguy.com.
fredthecondoguy.com
- The pool of
potential buyers Fred
the Condo Guy
is able to draw upon as a result of this website is nothing short of phenomenal. This is a unique
service that provides an ever-growing database of ready,
willing and able buyers.
fredthecondoguy.com
- Your listing
will appear as a "featured listing" on this site and
available to customers 24 a day. Again this is unique to our
service.
Realtor.com,
ColdwellBanker.com, CBPreferred.com
- A sampling of
some additional web-sites that will also carry your listing.
Multiple
Listing Service -
A
marketing tool that is common to any realtor you may talk to
regarding the sale of your condo. Accuracy counts. Fred
the Condo Guy's
emphasis on impact in the "remarks" section of the
listing form sets him apart. The MLS reaches thousands of
realtors within hours of a listing being taken.
Electronic
Lockbox -
This
is a system we use that allows easy access for realtors
wanting to show your condo but also offers the maximum in
security. These boxes actually log in who is showing the home
and at what time. Additionally the boxes are set so no one can
access between the hours of 10:00PM and 8:00AM.
Feature
Sheets -
No
doubt you've seen these in some form or another. Fred
the Condo Guy's
are
relatively simple and clean in appearance. They feature a
photo and are printed on clear white 60-pound paper. Copy is
aimed at presenting features perhaps not on the listing ticket
as well as creating an image, picture or feeling. Fred
the Condo Guy
feels
there may be real truth in the adage that we all buy based on
emotion and then justify it with logic.
Property
Perspectives -
A
three ring binder that occupies a spot on your coffee table or
kitchen counter and contains information about schools,
churches, shopping, freeways, airports, the condo association,
recreation, energy bills … even photos you might have
available and perhaps your comments about what you have
enjoyed about living in your condominium. This little item can
go a long way toward helping a customer make a buying
decision.
"Quick
Stop" Open Houses -
Thirty
minutes only. I t doesn't take four hours on a Sunday
afternoon to get interested customers to an open house. Those
who are truly interested, as the result of a very specific ad Fred
the Condo Guy has
run, will be in attendance…And, you don't have to be
out of your home all day.
Classified
Advertising -
A
national readership study by Gannett Co., Inc., publisher of
USA Today, reports that 74% of American adults name newspapers
as their primary source for real estate advertising. 'Nuff
said! Classified ads are primary in Fred
the Condo Guy's
marketing plans. And - they are printed complete with address and price.
Television
- The Home Preview
Channel, condominium portion, is another slice of the total
marketing pie.
"Just
Listed" Postcards - Advertising
needs to infiltrate the market in any way possible. Because
your neighbors often know folks interested in living in
your/their development - Fred
the Condo Guy
wants them to know you're unit is
available. A quality color postcard accomplishes our goal.
Networking,
Real Estate Magazines, E-Mail, Broker Open Houses, Virtual
Tours, Follow-up and Feedback Calls, MLS Reverse Prospecting,
Sales Meeting Presentations, Offering of Incentives
- Each of these marketing
tools plays a role in Fred
the Condo Guy's
marketing plans as well.
The
goal of any marketing plan or system is to get the necessary
information to prospective buyers in the most efficient and
effective manner. Fred the Condo Guy has proven that a mix of what
he has
presented here, in conjunction with specific approaches
dictated by the property, consistently leads to sales success
stories.
7.
Do we have to sign a contract? -
There are actually
five documents you will be asked to sign. They are -
|
Disclosure
Regarding Real Estate Agency Relationships
- By signing this
form you acknowledge that we have explained our role as a
Seller's Agent.
Lead-Based
Paint Seller's Disclosure Form
- Here you are
asked to disclose any information you may have with regard to
the presence of lead-based paint in your condo. Note here that
lead-based paint was not used after 1977.
Seller's
Disclosure Statement -
This
statement is a disclosure of the condition of and information
concerning the property known by the seller. This statement is
not a warranty nor is it a substitute for any inspections or
warranties the buyer may wish to obtain.
Realcomp
Listing Form -
This
is the form on which all the specifics of your condo are
listed. The listing ticket is derived from this form and
broadcast throughout the Multiple Listing Service.
Exclusive
Right to Sell Form -
This
is the form via which you hire Fred
the Condo Guy
and Coldwell Banker Preferred, Realtors to market and
sell your condominium. It details such items as price,
commission and length of listing period. Your signature on
this form comes with Fred
the Condo Guy's
guarantee that if at any time you are
not pleased with our services you may declare this agreement
null and void. Fred
the Condo Guy
wants that power in your hands.
|
8.
What's the latest scoop on
Capital Gains Taxes and how they pertain to our sale?
-
Taxpayers who
sell their principal residence can pocket (tax free) as much
as $500,000 in profit if they file federal taxes jointly, or
$250,000 if they file singly. The property must have been used
as their principal residence for two of the prior five years.
Homeowners can shelter the profits on the sale of a home as
often as once every two years.
9.
How are showings
handled? -
Realtors
contact Fred
the Condo Guy's
office to schedule all showing appointments.
Realtors never call you directly. These appointments are then
confirmed only after the office receives your approval. Realtor name,
State of Michigan license number, company affiliation, plus
date and time of showing is logged for each request. Assuming
you are not at home at the time of the scheduled showing time
(which we have learned is what most buyers prefer) realtors
will gain access by using the key that is kept in a secure
electronic lockbox. Should particular situations or concerns
dictate - the presence of pets, security alarm, company for
the week-end, and the like - other showing arrangements are
available and will be discussed on an individual basis.
10.
How are offers presented?
- When the new
government regulations regarding Buyer and Seller Agency
became law, Fred
the Condo Guy
altered his policy and began directing all
Buyer Agents to simply to drop off purchase agreements at his office. If time and distance are a concern
he expedites the
matter and utilizes the FAX machine or E-mail. Fred
the Condo Guy
asks that detailed
financial pre-qualification be a part of the offer presentation.
Only after Fred
the Condo Guy
has thoroughly studied the offer to be certain he understands it completely, and after
he has checked with
other realtors to be sure their clients are not interested, he
will call you to set an appointment to go over all the
details of the offer with you.
11.
Need we be concerned about an
inspection contingency? -
In
a word? No. Virtually all condo buyers hire professional
inspection companies to inspect the condo they have selected.
These inspections are usually done within several days of
offer acceptance, take about two hours and are paid fir by the
buyer. Comments regarding normal wear and tear, anticipated
obsolescence and a list of minor repairs are of no
consequence. Should something of a more severe nature be
discovered, you may be asked to correct it as a requirement of
removing the inspection contingency.
12.
Are there other common
contingencies? -
Thorough
buyer agents will include a contingency that allows the buyer
a period of several days to review and accept the association
master deed, by-laws, financial statement and minutes of the
last three association meetings. There is much to be learned
from these documents.
13.
Can you tell us about counter
offers and negotiating? -
Seldom
are offers 100% acceptable on the first bounce. Counter offers
(our offer back to the buyer) might focus on time of
occupancy, what personal property is to remain in the condo,
purchase price, home warranty, terms of sale - the list is
endless. In the negotiating phase, as with any transaction,
patience, a bit of psychology, flexibility and intuition all
play major roles.
14.
How long is it from when a purchase
agreement is signed until we have to vacate?
- From the signing
of the purchase agreement to the time of closing is generally
4 - 6 weeks. The number of days you may occupy the condo after
closing will have been determined at that signing. The most
common is up to 30 days.
15.
What should we anticipate after a
purchase agreement is signed?
-
Fred
the Condo Guy will first
focus on clearing any contingencies. Common contingencies
relate to property inspection, attorney review and review of
master deed and by-laws.
Fred
the Condo Guy
will order a mortgage payoff
statement, a commitment for title insurance and an association
dues statement. Fred
the Condo Guy
will arrange for the appraisal and
continually monitor the loan process. The next two to four
weeks will seem relatively quiet as we await loan approval.
Upon notification of approval Fred
the Condo Guy
will contact you regarding a
convenient time for closing. Closings are usually held at the
title company or at the office of the lender. Fred
the Condo Guy
will have all
of the closing documents available two to three days ahead of
closing so we can get together and review them for accuracy
and answer any questions. At the closing Fred
the Condo Guy
will discuss
move-in-out timing, the transfer of utilities, appliance
manuals and any other details that need to be tweaked.
Visit
the Free
Pamphlets and Brochures page
of our site.
Why
Use Fred
the Condo Guy?
- Fred the Condo Guy is the
condominium specialist - familiar with the nuances of
condominium transactions. He will provide you with every
service you should expect from an experienced professional. Fred
the Condo Guy will use
his experience and expertise to -