Chapter 9. By Jean-Philippe Loiselle

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2 11 THINGS YOU SHOULD THINK ABOUT BEFORE SELLING A HOUSE IN TODAY S MARKET Chapter 9 11 THINGS YOU SHOULD THINK ABOUT BEFORE SELLING A HOUSE IN TODAY S MARKET By Jean-Philippe Loiselle The story begins with a youth. He had the competition inside him and always wanted to do more. One thing that was important for him was to set a higher and higher standard for himself. If you were supposed to do one mile to accomplish a goal, he would do two miles. In fact, he had a paper on his bedroom ceiling on which was written: Pain is in your head, and by beating pain, you can achieve your biggest dream. I started to read like never before about motivation, business success, negotiation and how people think. What interested me the most was the reason why some people had different result than others, and I got many answers over the years. I was also interested in the psychology behind the negotiation. I then studied business, but it was not enough for me to work for someone else. My father, a notary (the notary in Canada performs legal work for his clients), asked me why I wouldn't try real estate sales. I looked at the kind of work it was, and immediately fell in love with it. It is about giving one s best everyday and making things happen with good strategy. The field of real estate is in the middle of many professions like notary, land surveyor, appraiser, inspector, mortgage specialist and much more. 93

3 Change Agents Being close to people, and in love with psychology, he gives to others the use of his superb negotiation skills. Actually, the real estate job has a huge ripple effect on many lives at the same time. It was an amazing opportunity to learn so many different things. After two years, he was in the top 10% of all RE/MAX agents in the province of Quebec. He is now known as one of the top-growing stars in the industry. He has boundless energy and an innate business sense. His vast knowledge of the market and his negotiation skills allow his client to maximize their profit. His passion to help other people achieve their dreams is within his soul. I am telling you this: His service for his clients is anything but ordinary. A couple of years ago, a client wanted to sell his property for over eight months without any success. I decided to call her right after the contract ended. The conversation was clear and simple with her; she wanted to keep the same agent and she was going to lower the asking price. It was really interesting why she wanted to keep the same agent. I told her, I am sure he did everything in his power to sell your home, however, this time you need a different approach to make sure it will be sold, so that you can achieve your project. She finally decided to see me in order to give her some advice regarding a couple of changes to maximize the value and the time delay. She finally decided to go with me for the right reason, I was able to help her in her situation. We kept the price the same, changed the arrangement of the furniture, and adapted a specific strategy. The property was sold in the first eight days. Actually, I am like a doctor who has to give advice to a patient. For me, I say the right thing on the first appointment, and there will not be any surprises. Many sellers have the goal to sell quickly at the best price with the best terms and conditions. However, many of them are disappointed because they make several mistakes that could have been avoided at the outset. The result of my study over several years show me that these errors often are very expensive. Error #1 - Establishing a sale price without having done a complete analysis Firstly, I do believe your home is one or your biggest assets. This part could be done by your real estate agent. You must insist on a professional analysis with comparables sold and for sale. He will be able to make 94

4 11 THINGS YOU SHOULD THINK ABOUT BEFORE SELLING A HOUSE IN TODAY S MARKET an analysis with comparable house sales normally from the last 6 to 12 months. He is a specialist with the price of things in your house. However, you must insist having an aggressive strategy to sell your home, because it is the key to your success. Error #2 - Over improving your home compared to the sector When you are renovating your home, consider the fact that what you renovate is for you, and not for the new buyer. Furthermore, be careful not to improve your property too much compared to the sector, because the money you invest stays and it won t be possible to get this money back when you sell. Not because it is beautiful for you is it for somebody else. Make sure your property price is based on what you offer compared to the competition, and that you do not over-price because of what you add to the property. Normally, a property that is way over the normal price bracket of the sector will usually stay longer on the market and eventually be harder to get a better price than the competition that offers less to the buyer. Error #3 - Omit TO ENSURE that the property is well-positioned Positioning the price of the property is one of the most important points. It is the same thing as looking at a race horse. In reality, the position of the house will determine the number of visits and how quickly you sell. One of the important points to maximize your profit is based on being well positioned at all times in the process compared to your competitor. Setting too high a price can be as dangerous as setting too low a price. The average buyer looks at between 15 and 20 properties at the same time he sees yours. If your home or condo does not correspond to the price range of homes or other comparable condos, you will not be taken seriously by buyers and agents. Your property is likely to remain very long on the market without moving and buyers end up thinking that your property has flaws. Asking the right price from the beginning gives you the chance to get the most visibility in the market. The visibility generate visits, and then hopefully mutiple offers simultaneously. 95

5 Change Agents Error #4 - Choosing a real estate agent for the wrong reason Do not choose a particular real estate agent based on the price that he evaluates your property. Choosing a great real estate agent is essential for selling your property for its maximum value. The real estate agent must be able to give a professional analysis of the property based on comparables sold in the sector. He has to be well-organised with a shielded structure. It is essential to have confidence in the real estate broker who represents you, to believe in his competence and experience. You want a broker who can easily explain the whole process of marketing, who knows the market very well, which holds a database of potential buyers and can give you valuable tips to increase your chances of selling. In fact, the professional you choose must show you a crystal clear strategic plan for the successful sale of your property. Error #5 - Trusting marketing tools from the 90 s The majority of tools formely used by brokers to sell a home are actually not very effective. People tend to have less and less time to look for homes. They will not take the time to drive to see the sign, they will go on the Internet after work or will call their real estate agent. Make sure your property is visible where it really counts. Over 75% of buyers have seen pictures of the property on the web before they come to see your home. The pictures have to be the best possible because great pictures are worth more than a thousand words in the marketing of your property. Make sure your description on the web is easy to understand and complete for the buyer of You must make sure they get the feeling when they read the description. If they receive the feeling by reading your description, you get a call and/or a visit. Error #6 - Neglect small details that may enhance your home Also, no houses are perfect. Because of this fact, you have to take the time to look at your property and see what might be your obstacles. When you find those, you have to plan at which part of the process you will inform the buyer. Be prepared to face those obstacles and you can calculate the value for them to see if it is worth the reparation. Take the time to see if the problem can be fixed and at what price. It might be a good idea to fix it and increase the price in consideration, or even more. 96

6 11 THINGS YOU SHOULD THINK ABOUT BEFORE SELLING A HOUSE IN TODAY S MARKET Make sure you are ready to encounter the obstacles. Error #7 - Failure to take the time to plan every step in advance Selling a property in 2013 is not an easy game. In a market that only 60% of properties are sold, you must make a strategic plan and know each and every step in advance to be able to control the process. The process is not just an add-on on the computer, it is about being a master of each step of the process. You must be ready for any buyer to come and ask you questions on the property. If you are not ready to answer those questions, you might lose buyers. Make sure you know all the expenses of selling your property. You might need to buy a new certificate of localisation, pay a quittance for the mortgage, real estate fees, servitudes or insurance on your building. Make sure to check that your building conforms according to the certificate of localisation. Error #8 - Not taking the time to know your buyer In order to control the negotiation, you must know your buyer. You have to ask questions that will determine the motivation of the buyer. Does the buyer need to move quickly? Does the buyer have the money to buy your property? By knowing the motivation of the buyer, you will be able to control the transaction and the amount of money you get in your pocket. In fact each thousand dollars does not represent a lot for a buyer in terms of monthly payment on a mortgage. By knowing your buyer, you will be able to motivate him to reach your number. Error #9 - Giving the buyer your reasons for selling Never tell any buyer your reason and motivation to sell because they might want to use it at the negotiating table. If someone asks you, just answer your housing requirements have changed. Error #10 - Neglecting to properly complete the contract When coming to complete the contract to sell or with a buyer, there are lots of emotions. Be sure to disclose all information about your property. If the buyer is aware of problems, a court action may result later. 97

7 Change Agents Make sure not to look only at the price. Take the time to confirm all terms, conditions, costs and responsibilities are clearly mentioned in the offer to purchase. Resist the temptation to diverge from the contract. For example, if the buyer asks you to move before the closing date, say no. Make sure you stick to the contract. This is not the time to take chances and risk aborting the transaction. Make sure to follow up with the notary in between the completion of the offer to purchase and the time you go to the notary. Also, with the economy of today, it would be wise to have a short delay in between to make sure the situation of the buyer does not change. Error #11 - Moving before selling My study shows that it is more difficult to sell a property that is vacant. The first reason is because by moving, you indicate to buyers that you have a new home and you re probably in a hurry and therefore highly motivated to sell quickly. This will give them an advantage in negotiations. It almost gives the same impression to a buyer as if the property is on the maket for a long time. They feel they have the control of the transaction and can negotiate more. The second reason is that the house being empty makes it not appealing. They also have a hard time to vizualise the property and their furniture. They have a hard time seeing if the size is too small or too big because they normally compare the furniture in the property to their furniture. Even more, it could cost you thousands of dollars. The success of selling your home is not a question of improvisation. In reality, selling your home needs much more than just a sign or Internet advertisement. You must have a pro-active plan that is efficient for your type of property. It is about having a crystal-clear plan to use for a specific type of home. With these tools, you can maximize your profit, maintain control of the transaction and reduce stress surrounding the sale of your property. Good luck in your transaction! 98

8 11 THINGS YOU SHOULD THINK ABOUT BEFORE SELLING A HOUSE IN TODAY S MARKET About Jean-Philippe Jean-Philippe Loiselle, also known as The Hungry Machine, is a best-selling author and a dominant real estate broker, who is regularly sought out for his opinion on techniques that really work. Jean-Philippe is known for asking the question, Do you want to sell your property or do you want to get the maximum value with wiser strategy? Jean- Philippe is at the top of his business for many years. He tracks the market everyday and does minor adjustments every week to achieve his clients goals. Jean-Philippe states that in every type of market, a strategy well adapted to today s market always allows him to get more for his clients. He identifies weaknesses with strategies and brings to his clients the newest and best evolutionary strategy. To learn more about Jean-Philippe Loiselle, The Hungry Machine, visit: Jean-Philippe Loiselle Courtier Immobilier RE/MAX

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