1

2

Copyright © 2014 RE/MAX Prestige. All rights reserved.

1

RE/MAX Prestige

7192 Kalanianaole Hwy., Suite C-126, Honolulu, HI 96825

(808) 396-2021

Each Office Independently Owned and Operated

2

Contents

Your Money’s Worth 6

First Things 13

Agency Relationship 13

What’s important to you? 14

How much can I sell my house for? 14

How long will it take? 14

How much hassle is it going to be for me? 15

What else is important to you? 16

Choosing Your Professional 17

My Marketing Program 20

Preparation 20

Professional photography is a MUST! 20

Staging 21

How will buyers see your property? 22

Positioning in the Marketplace 23

Determining a market-sensitive price 23

Market Evaluation 25

The dangers of overpricing 26

Promotion and Exposure 27

Advertising 27

Syndicated listings 28

Global Listing 29

Your Property Website 30

Showings 32

About Me 33

What Clients are Saying… 34

3

Why RE/MAX is your best choice 36

Nobody sells more real estate than RE/MAX. 37

The Business of Caring 38

APPENDIX 40

Real Estate Myth-Busters 40

Dividing the Fees 44

Realtor Code of Ethics 45

How Selling a House is Like Playing a Baseball Game 46

Notes 47

4

5

For all the things that move you.

6

Your Money’s Worth

“It’s more than putting a sign in the yard and a listing on the

Internet.”

What I typically do to sell your property at the best price and terms possible, in your time frame, and with the least amount of hassle to you before, during and

after the sale

7

Pre-Listing Agreement

1. Research all comparable currently listed properties

2. Research sales activity for past 6 months from the MLS and public records databases

3. Research “Average Days on Market” for this type of property, price range and location

4. Download and review property tax information

5. Prepare “Competitive Market Analysis” (CMA) to assist Seller in positioning their property in the marketplace

6. Obtain copy of subdivision plat/complex layout

7. Research property’s ownership & deed type

8. Verify legal names of owner(s) in county’s public property records

9. Research property’s public record information for lot size & dimensions

10. Research and verify legal description

11. Research property’s land use coding and deed restrictions

12. Confirm current public schools

13. Prepare sample marketing calendar

14. Discuss goals with Seller in order to create an effective marketing strategy

15. Perform exterior “Curb Appeal Assessment” of subject property

16. Present Seller with the CMA and a general overview of current market conditions and projections

17. Help Seller interpret current market conditions and establish a pricing strategy to achieve their goals

18. Share the advantages of the global reach of RE/MAX Prestige’s Internet marketing program

19. Clarify my role in screening for qualified buyers

20. Review and explain all clauses in Listing Contract & Addendum and obtain Seller signatures

21. Give Seller the RE/MAX Prestige Pre-Contract Information packet

Once Property is Under Listing Agreement

22. Research Homeowners’ or Community Association (HOA) to verify monthly fees and access the possible impact to market value due to litigation in which the Association may be involved, if applicable

23. Identify Home Owner Association manager, if applicable

Proper preparation before going to

market helps avoid problems in the

transaction.

8

24. Ascertain signage and open house regulations for building or community, and verify HOA pet policy, if applicable

25. Order copy of HOA By Laws, if applicable

26. Order Condominium Documents package, if applicable

27. Order Subdivision Documents package, if applicable

28. Verify condominium parking stall(s) deeded to subject property, if applicable

29. Research and verify sewer/septic tank system

30. Verify security system, current term of service and whether owned or leased

31. Verify if Seller has transferable termite treatment warranty

32. Determine need for lead-based paint disclosure

33. Review current title information

34. Confirm lot size via owner’s copy of certified survey, if available

35. Obtain plat map

36. Note any easements

37. Check assumability of loan(s) and any special requirements

38. Discuss possible Buyer financing alternatives and options with Seller

39. Determine VA, FHA and/or USDA financing eligibility of property

40. Prepare detailed list of property amenities and assess market impact

41. Prepare detailed list of property’s “Inclusions & Conveyances with Sale”

42. Compile list of completed repairs and maintenance items

43. Explain benefits of Home Owner Warranty to Seller

44. Have extra keys made for lockbox

45. Discuss and agree with Seller on showing arrangements

46. Verify if property has rental units involved. And if so:

47. Make copies of all leases

48. Verify all rents & deposits

49. Contact tenants and discuss how showings will be handled

50. Conduct Interior Décor Assessment and discuss staging options

51. Review results of Curb Appeal Assessment with Seller and provide suggestions to improve saleability

52. Stage home as agreed

53. Arrange for installation of yard sign

54. Arrange photo shoot with a professional photographer

Seller’s Disclosure Statement - Your best insurance

policy!

9

55. Order “Just Listed” postcard campaign

56. Prepare property marketing brochure, fliers or virtual tour as applicable

57. Arrange for printing or copying of marketing brochures or fliers

58. Attach electronic lockbox

59. Advise Seller of disclosure obligations and obtain from Seller the completed Seller’s Disclosure form

60. Prepare “Home Book” including plat maps, flood map, seller’s disclosure, etc.

61. Prepare MLS Profile Sheet

62. Enter property data from Profile Sheet and photos and/or virtual tour into MLS Listing Database

63. Proofread MLS database listing for accuracy - including proper placement in mapping function

64. Send MLS sheet to Seller for review and approval

Marketing The Property

65. Coordinate showings with owners, tenants, and other Realtors®

66. Answer all property inquiries promptly

67. Generate marketing collateral and send to contact list

68. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability

69. Upload listing to RE/MAX® and other real estate Internet sites

70. Mail “Just Listed” cards to neighborhood residents

71. Email blast photo flier to Oahu Real Estate Agents and interested parties

72. Schedule Brokers’ Open House and enter information into MLS

73. Get property listed in Joint Brokers’ Open if possible

74. Present property at Brokers’ Regional Meeting if possible

75. Hold Brokers’ Open House

76. Enter Public Open House information into MLS

77. Reprint/resupply brochures promptly as needed

78. Request feedback from buyers’ agents after showings

79. Discuss feedback from showing agents with Seller to determine if changes will accelerate the sale

80. Communicate market activity and pricing with Seller on a regular basis

10

Offer and Contract

81. Receive and review all Purchase Contracts

82. Contact buyers’ agents to review Buyers’ qualifications and discuss offer

83. Contact buyers’ lenders to review Buyers’ ability to obtain financing

84. Evaluate offer(s) and prepare a “net sheet” for comparison purposes

85. Counsel Seller on offers and explain merits and weaknesses of each component of each offer

86. Negotiate all offers on Sellers’ behalf

87. Prepare and convey any counteroffers, acceptance or amendments to buyers’ agent

88. Deliver accepted Purchase Contract to all parties

89. Deliver Seller’s Disclosure to buyers’ agent

90. Set-up account in secure Transaction Management Service (TMS)

91. Add vested parties to TMS

92. Upload contract and associated documents to TMS

93. Transaction documents delivered to Escrow and Title company

94. Request Seller’s net sheet from escrow

95. Give seller access code to TMS

96. Update showing instructions per Sellers’ request

97. Discuss with the Seller how additional offers are handled after an accepted contract

98. Obtain Preliminary Title Report

99. Provide Seller escrow timetable and monitor progress

100. Verify Buyers’ Proof of Funds

101. Arrange and confirm Home Inspection day/time as required

102. Deliver HOA documents to Buyer

103. Order survey as required

104. Deliver survey to Buyer, as required

105. Order termite inspection as required

106. Deliver termite inspection report to all parties

107. Verify mold inspection ordered, if required

108. Review any reports and documents that could possibly impact sale

11

Track Buyer’s Loan Process

109. Confirm Buyer made initial deposit

110. Confirm Buyer’s second deposit

111. Track Buyers’ loan processing through the closing

Home Inspection

112. Coordinate Buyers’ professional home inspection with Seller

113. Ensure Sellers’ compliance with Home Inspection clause requirements

Appraisal

114. Confirm appraisal is ordered

115. Coordinate scheduling of appraisal

116. Prepare property data book for appraiser and meet appraiser

117. Follow-up on appraisal

118. Challenge appraisal report if needed

Closing Preparations

119. Coordinate closing process with Buyers’ agent and lender

120. Ensure all parties have everything needed to close the sale

121. Follow-up to make sure Buyers sign closing documents on time

122. Discuss possible solutions to title problems (boundary disputes, easements, etc.), and assist in obtaining necessary documents, if applicable

123. Schedule and conduct Buyers’ Final Walk-Thru prior to closing

12

124. Request HUD settlement statement from escrow and review with Seller

125. Coordinate appointment for Sellers to sign closing documents

126. Request copy of closing documents from escrow officer

127. Review closing documents with Seller

128. Have a “no surprises” closing

Follow Up After Closing

129. Put Sellers in VIP follow-up program

130. Celebrate the successful close of escrow with Sellers

13

First Things

Agency Relationship

When real estate professionals work with

sellers and buyers, “agency” relationships

are established. As you start working with a

real estate professional, please ask for a clear

explanation of the current agency laws in

Hawaii, so that you understand these important

issues.

There are three kinds of agency relationships:

Buyer’s agent

A “buyer’s agent” represents the buyer during the home buying process. The buyer’s real estate

professional (agent) has a fiduciary responsibility to represent the buyer’s best interests including reasonable care, loyalty and confidentiality.

Seller’s agent

A “seller’s agent” represents the interest of the seller and has a fiduciary responsibility of reasonable care, loyalty, confidentiality and disclosure to the seller. A seller’s real estate professional (agent) works to assist the seller in locating a buyer and in negotiating a transaction suitable to the seller’s

specific needs.

Disclosed dual agent

A “disclosed dual agent” represents both buyer and seller. Dual agents must remain neutral in

negotiations and must not advance the interest of one party over the other. A separate dual agency

agreement is required under Hawaii law prior to the Purchase Contract.

14

What’s important to you?

Most likely, right now you only have three questions:

How much can I sell my house for?

Factors that will affect the market value of your property are:

Supply and demand - How many buyers are looking for a home

like yours and what other homes are on the market that they

can buy with their money at this time?

Condition – How does your property compare to other homes

on the market that your target buyer can choose from? Is there

deferred maintenance? Does the house need a new roof soon?

Financing qualification – Just as a borrower needs to qualify for

financing; the property being financed must meet certain lender and government qualifications. For example, not permitted improvements (i.e., room added on without a building permit) will disqualify a property from most government-insured loans

such as FHA and VA, which reduces your pool of potential buyers.

How long will it take?

Factors that will affect the length of time your property is on the market are:

Market Positioning – How is the property positioned in the marketplace (price)? To assist you in positioning the home to sell within your time frame, I will prepare an Absorption Rate Analysis

which will help us understand the probability of the property selling in a particular price range

during a particular time frame.

Condition – Besides affecting value, the condition also affects time on the market because typically most home buyers will buy a move-in ready house before they will buy one that needs repairs or

updating.

15

How much hassle is it going to be for me?

Before the sale – Selling a home is much more than putting a sign in the yard and putting the listing

on the Internet.

The more thorough the preparation is prior to going to market, the better the chances are that the sale will go smoothly. Proper research on things like flood zone, building permits, financing options, and obtaining or preparing required documentation such as Homeowner Association Documents, Preliminary Title Reports, and Sellers Disclosure Statements will reduce the risk of a buyer canceling the purchase in the middle of the transaction.

That is why I am careful to be very detailed and very thorough in my research and preparation. (See “Once the Property is Under Listing Agreement” in the section “Your Money’s Worth”.

During the sale – Preparing well prior to sale goes a long way towards helping the sale process go

smoothly by eliminating as many surprises as possible. Proper screening of buyers helps reduce risk of the transaction canceling because of the buyer’s inability to obtain the loan.

Your Realtor’s expertise and professionalism in navigating the transaction has much to do with the amount of hassle and stress you will experience during the process, from inspections, to disclosures, to appraisal, and every other thing that may pop up.

After the sale – You want to move on after the sale, right? You don’t want something that wasn’t done properly

during the sale to come back and bite you later on. So I place a high importance on keeping myself informed

about rules and regulations that affect the sale of real

estate, and I want to make sure all the i’s are dotted, and the T’s are crossed.

Selling a home is much more than putting a sign in the yard and putting the listing on the internet.

16

What else is important to you?

My Marketing Program for selling your house must fit together with your objectives, priorities and needs. Understanding what’s important to you will help me determine how I can best serve you and

help you reach your goals.

Motivation

Why are you considering selling your property at this time? How far along are you in the process

(just exploring the possibility, or definitely committed to selling your house)?

Time frame

Is there a certain date by which

the sale of this property needs to

close? How flexible are you on this time frame?

Decision-making

Are there any other individuals

who will be involved in your home-

selling decisions? Are they on title,

and will be required to sign all

documents?

Price

Do you have specific expectations as to the selling price of your property? If so, what do you base this figure on? Do you anticipate a certain amount of net proceeds from this sale?

Marketing plan

Are there specific activities you expect to see included in the marketing of your property?

Concerns

What concerns to you have about the sale of this house?

Expectations

What are your expectations of your real estate professional?

17

Choosing Your ProfessionalWhen selling a home, there are only four elements over which a seller truly has control:

The choice of a real estate professional will be critical to the end result of reaching your goals in

your time frame. The following questions will be helpful as you determine who has the market

knowledge, services and experience necessary to sell your home at the highest possible price and

in the shortest amount of time for you.

18

QuestionsMy

ServicesAgent

#2Agent

#3

Are you a full-time

REALTOR?

Yes, absolutely! I focus on one business -

real estate marketing- and nothing else. You

will not have to wait for me to get off work to

attend to your business, because YOU ARE

my business.

Are you a full-service

company, or a limited

service company**?

RE/MAX Prestige provides the full complement

of services to ensure you realize the most

possible money for the least amount of hassle

to you in the sale of your property.

Do you have any advanced

real estate designations or

education?

Yes, would you like to hear more?

Does your brokerage have

a global presence?

Yes! RE/MAX® is worldwide with offices in 95+ countries with more than 95,000 associates.

Where does your company

rank in market share?

RE/MAX consistently outsells the competition

nationwide. See charts in this book.

Do you have any

testimonials I can read or

references I can call?

Absolutely. For testimonials, see the section

entitled “What Clients are Saying”

Do you have an aggressive,

proactive advertising and

marketing program?

My comprehensive, multi-faceted marketing

program gets results. Nationwide brand

advertising, unparalleled Internet presence,

professionally designed property website

and marketing materials, targeted agent

campaigns, postcard campaigns, open houses

and more.

Do you get referrals from

people who have used your

services?

Most of my business is generated from

referrals by my past clients to their friends and

family.

19

QuestionsMy

ServicesAgent

#2Agent

#3

Will you use a professional

photographer to take

pictures of my home?

It’s very important that your home look its best

to buyers shopping on-line, so professional

photography is a must!

Will you make a website

specifically for my listing?Yes. It will include a virtual tour, maps,

community information and more.

Do you offer staging

assistance?

I offer staging consultation and assistance to

determine the best options available for your

property.

If someone calls the

number on the yard sign

for information about my

house, who takes that call?

Many brokerages’ signs direct those calls to

a central call center, which typically operates

only regular business hours. Calls on your

house will be directed to ME. Who can

answer a potential buyer’s questions better,

me or someone sitting in a broker’s office?

Since this is one of my

largest financial assets, it is important to me that I

can trust my agent. Please

explain to me the fiduciary duties that are owed to me

if I choose to hire you.

Obedience (within the law), Loyalty, Disclosure,

Confidentiality, Accounting and Reasonable Care. I also strictly follow the Realtor Code of

Ethics.

20

My Marketing ProgramAn effective real estate marketing plan consists of Preparation, Positioning in the Marketplace, and

Promotion and Exposure.

PreparationProfessional photography is a MUST!

I will arrange and pay for a photo session with a professional who specializes in real estate

photography.

Do you want your home to look like this?

Or this?

21

Staging

Staging Consultation and assistance when appropriate

is included in my listing services. Staged homes will

sell faster and for more money than a similar home that is

not staged.

Studies have shown that buyers spend an average of 6 to

9 minutes in an empty home and 40 minutes in a staged

home. The reason for this is that a staged home excites

the buyers’ imagination.

We can appeal to the buyers’ emotions by helping them

see themselves in the house the way they would like it to

be (lovely, clean, peaceful, relaxing), not the way life really

is (cluttered, rushed, dishes to wash, laundry to do).

Buyers respond better when they see the house the way they’d LIKE life to be, not the way life really is.

22

How will buyers see your property?

The first steps to staging a house to sell…

Clean, clean, clean

Scrub like crazy and make your home white-glove clean. Don’t assume buyers can look beyond

clutter and untidiness. They often can’t. If the kitchen, bathroom or windows are dirty, the buyers

may perceive that you are unconcerned with maintenance and care of the house. Here’s a list from

top to bottom:

1. Wash windows and screens

2. Clean carpets

3. Clean stovetops and all countertops

4. Wash fronts of all cupboards and appliances

5. Keep the floor swept and clean

6. Clean sidewalks and homes’ exterior with a pressure

washer

7. Dust furniture, ceiling fan blades and light fixtures

8. Eliminate odors (especially dog, cat and smoke)

Fix all the unfinished do-it-yourself jobs

Eliminate “to do” list repairs entirely such as leaky faucets, running toilets, holes in the walls, torn

screens, burned-out light bulbs and closet doors that don’t close properly. Don’t let a five-minute job turn off a potential buyer, or result in a lower sales price.

De-clutter and de-personalize the house

Clutter eats away at your equity! You will eventually have to pack to move, so why not pack away as

much as possible now? It will save you time later and will help sell your house for the most money

possible.

Pack up personal photographs and family heirlooms. We want buyers to imagine their own families

in the house as they walk through.

Clean up the yard

First impressions do count. Typically, a home buyer makes up their mind within 30 seconds of

walking into a house. Make sure the yard is neat and tidy and welcoming. A manicured lawn and

a pot of flowers go a long way towards creating a good first impression.

23

Positioning in the MarketplaceDetermining a market-sensitive price

Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale.

Market Value is determined by what prudent and able buyers are willing to pay under current and

normal selling conditions. Properties priced within market range generate more showings and

offers, and sell in a shorter period of time.

Properties priced too high have a difficult time selling.

What DOES determine the value of a property?

What DOES NOT determine the value of a property?

Location, design, amenities and condition What the seller paid for the home

Competing properties on the marketThe amount of cash the seller needs from the sale of

the home

Economic conditions that affect real property

transactionsAmount the seller spent on improvements

Overall condition and certain upgrades, especially

kitchen and bathroomsWhat a real estate agent says the home is worth

What an appraiser says the home is worth can affect

value because of financing limitations

24

What the tax assessor sees… What you see…

What the buyer sees ... What the appraiser sees…

25

Market Evaluation

An impartial evaluation of market activity is the most effective way to estimate a property’s likely

selling price and position it in the marketplace to achieve your goals. A Competitive Market Analysis

considers similar properties that:

Are currently on the market

These are properties that are competing with yours

for the attention of available buyers.

Have sold in the recent past

This shows us what buyers in this market have

actually paid for properties similar to yours and helps

us anticipate how the appraiser will evaluate your

property. The appraised value affects the amount of

loan a buyer can obtain.

Failed to sell

Understanding why these properties did not sell can

help avoid disappointment in the marketing of your

property

26

The dangers of overpricing

An asking price that is beyond market range can adversely affect the marketing of a property.

27

Promotion and ExposurePromoting the property to the realtor community, advertising where buyers are looking, and making

the property available for showings are all essential to an effective marketing program.

AdvertisingWe want to advertise to the target buyers where they are looking. So, where are they looking?

The most important target areas for my marketing program are the internet and other realtors. My

marketing program emphasizes internet marketing and reaching the realtor community.

28

Examples of Syndicated Listings

29

Global Listing

30

Your Property WebsiteI will create a website specifically for your property which will include virtual tour, photo gallery, map, community information and detailed information about the home.

31

32

ShowingsTen ways your participation can contribute to a successful sale

1. Maintain the property in ready-to-show

condition. Clutter eats away at your

equity.

2. Ensure that the house is easily accessible

to real estate professionals (lockbox).

3. Try to be flexible in the scheduling of showings.

4. For showing appointments, turn on all

lights and put all toilet seats down.

5. If approached directly by a buyer, please

contact me. Do not allow them into the

property unescorted.

6. Remove or lock up valuables, jewelry,

cash and prescription medicine.

7. If possible, do not be present when the

property is being shown.

8. Securely pen up pets, or take them with

you.

9. Be cautious about saying anything to

buyers or their agents that could weaken

your negotiating position, especially

regarding price or your motivation for

selling.

10. Let me know of any change in the

property’s condition that would need to

be disclosed to potential buyers.

33

About Me

Every 30 seconds, a RE/MAX agent

helps someone find their perfect place.

The Frace Group Hawaii - founded by Jeanne and Alan Frace Family Originally from Portland Oregon Two grown children, Alex & Alyssa, who are both graduates of Oregon State University Business Accomplishments • Recognized in the Top 100 Oahu Realtors • 20+ years of real estate experience • Nationally recognized in the Top 2% • Aloha 'Aina nominee • Honolulu Magazine, Best of List..... • Client Service Award Education CRS - Certified Residential Specialist MRP- Military Relocation Professional GRI- Graduate Realtor Institute SRES- Senior Real Estate Specialist CDPE- Certified Distressed Property Expert CNE - Certified Negotiations Expert Community Service • Children's Miracle Network • Susan G. Komen race for the cure • Hawaii 3 R's

34

What Clients are Saying…Client Testimonial Jeanne provided outstanding service which exceeded my expectations! She was always available when we had questions/concerns and was very knowledgeable throughout the entire process. She has been "hanai'd" (adopted) into our family! Lon & Jeremie Horton

Client Testimonial Jeanne and Alan were extremely knowledgeable and made a stressful situation easy for us. They are amazing agents and we consider them our friends after everything they did for us. Chelsea Arnott

35

Client Testimonial Jeanne and Alan are a wonderful team and very supportive. The went above and beyond the call of duty. Thank you very much! George and Linda

Client Testimonial Jeanne and Alan were the reason I stayed sane during the sale of our home. My husband was out of state during the process and Jeanne was fabulous, keeping us all on the same page. She was personable and highly professional...a winning combination when it comes to real estate. Brenda Witten

36

Why RE/MAX is your best choiceNobody sells more real estate than RE/MAX.

Thanks to people like you, RE/MAX is the top choice of Americans buying and selling real estate.

• Nobody sells more real estate than RE/MAX.*

• RE/MAX agents sell more real estate than any

other U.S. brand.*

• RE/MAX agents have the experience to get the

job done in today’s market.

• RE/MAX Associates average more sales than

other real estate agents.

• RE/MAX Associates have more real estate sales

experience than other real estate agents.

• RE/MAX: The #1 name in real estate.**

• RE/MAX leads the industry in brand awareness.**

* Source: MMR Strategy Group study of real estate buyers and sellers.

**Source: MMR Strategy Group study of unaided awareness

That’s what RE/MAX agents do year after year. RE/MAX agents are consistently the most productive

among agents from national franchise brokerages ranked in the annual REAL Trends 500 survey

of the largest U.S. brokerages. They achieve the most transaction sides per agent, and outperform

the field in sales volume per agent. A widely quoted source for brokerage performance, the 2013 survey shows that RE/MAX dominance continues.

37

38

The Business of CaringList your home with RE/MAX and help children’s hospitals

RE/MAX is the exclusive real estate sponsor of Children’s Miracle Network Hospitals, an international

alliance of 170 children’s hospitals providing state-of-the-art and life-saving care. Children’s Miracle

Network Hospitals treat millions of children each year for every disease and condition imaginable,

and RE/MAX real estate agents help support that mission by raising millions of dollars annually.

When you list your home with me, you’ll take part in the Miracle Home® program, which can include

prominent display of a Miracle Home rider on the RE/MAX sign in your yard. You not only get the best

possible service, you’ll help children in your community, too.

At the close of the sale, I will make a contribution in your honor to a Children’s Miracle Network

Hospitals in our area (Kapi’olani Medical Center for Women & Children).

Together, we can make miracles happen for children in your area.

39

PUT YOUR MONEY WHERE THE MIRACLES ARE.Work with a RE/MAX Miracle Office and make a difference in a child’s life

CELIA, 8 YEARS OLDCYSTIC FIBROSIS PATIENT

RE/MAX agents have donated more than 130 million dollars to Children’s Miracle Network Hospitals since 1992

40

APPENDIXReal Estate Myth-Busters

There are several important

Real Estate myths that you

should be aware of.

Here are a few of them:

Myth #1: Discount brokers can

do an adequate job selling real estate.

Truth: Promotional costs such as professional photos, virtual tour, full color brochures, media advertisements, MLS insertion fees, printing and direct mail costs, directional signs, effective internet placement, etc., all paid for by your independent real estate agent as a cost of selling your home, as well as other essentials like assistance with open houses, transaction management, home inspections, appraisals, and negotiating.

Myth #2: Lower commissions mean a higher net to the seller.

Truth: It sounds logical, but it’s not always true. You get what you pay for. A lot of sellers like the idea of a discounted commission until they learn that the salesperson won’t do much marketing, advertising or negotiating. This means the sellers might not each their ideal outcome on the sale.

Myth #3: You should select the Realtor® who says they can get you the highest price.

Truth: This is the oldest myth in real estate. Tell the seller what they want to hear, not what they need to hear, compliment the home to get the listing, then ask for a price reduction within 30 days. Instead, insist on a written, well researched computerized market analysis to determine the realistic amount your home will bring in today’s market and price it accordingly. Select your Realtor® and work together with them to determine the best price for your home.

41

Myth #4: It’s OK to test a high price on your real estate just to see if anyone will buy it at that price.

Truth: If you’re serious about selling your home, don’t play games. We’re living in an age of “Buy it Now”. When your listing hits the internet, buyers in the market are going to make a decision whether to add it to their list of homes to see. If it’s overpriced, it won’t make the list and they won’t come see it. If they don’t come see it, they won’t buy it.

Myth #5: You should price your real estate higher than the market value to allow for room to

negotiate.

Truth: No matter what your reasoning or rationale, overpricing your home is never a good idea. When your home is overpriced, very few potential buyers inquire about it or visit it. If no one wants to buy your home, you won’t have anyone to negotiate with.

Myth #6: If the house sells in a few days, it was underpriced.

Truth: Not necessarily, a quick sale may mean the house was priced correctly for its market and that buyers did their homework. A property does not increase in value the longer it’s on the market.

Myth #7: Property condition is not important to buyers.

Truth: WRONG! A property in superior condition will always sell faster and for more money than a home in average condition with a lower price. Many sellers recognize this and repaint and re-carpet their homes in preparation for selling. These sellers know that home buyers purchase value and will perceive a clean, fresh home as more appealing than an average, lived-in, forgive-the-mess home.

Myth #8: If you don’t want to make repairs, lower your price.

Truth: Not the best idea. A house that doesn’t look its best may attract few or no offers. Condition remains critical to getting top dollar and moving a property fast. Although it can be difficult to decide which repairs to tackle, the best advice is to focus on those that offer the quickest payback, such as fixing a leaky roof.

42

Myth #9: Empty homes don’t show as nicely as furnished homes.

Truth: The important consideration is whether or not a home is properly staged; that it is clean, in good repair and available to show. If you must move to your new home before your old home is sold, take measures to ensure it shows well empty. Repair/replace worn carpeting, oil or paint all woodwork, wash windows and replace broken or fogged windows and clean or paint the walls. It will probably appear larger without your furnishings and the buyers can envision their belongings

in each room more easily.

Myth #101: Pricing a home is a mysterious process.

Truth: Your home will sell for whatever the market will bear. Your full-service broker will research the market and collect data which will help you decide where to position your home in the marketplace. It is not a mysterious process, but it does take a professional approach.

Myth #11: The appraisal value of your home has no impact on the sales price of your home.

Truth: Lenders consider the value of your home to be the price for which the home is appraised. For example, if you and your buyer have agreed on a sales price of $900,000, but the appraisal comes in at $860,000, the lender considers the value of the home to be $860,000, not $900,000. When this occurs, buyers will often want to renegotiate the sales price of the home to match the appraisal price. In cases of FHA or VA loans, the buyerwill have the option to cancel the transaction based on this discrepancy.

Myth #12: Real estate agents want to price homes high because they’ll make a higher commission.

Truth: If you’ve done the work needed to find a great real estate agent, you should trust him or her to help you price your home correctly. Because of their experience, real estate agents understand more than anyone else the importance of properly pricing your home. If your home is priced incorrectly, it won’t sell, and the agents earn nothing. No one benefits.

Myth #13: Real estate agents want to price homes low because they’ll sell faster and easier

withoutthe agents having to do any work.

Truth: Professional real estate agents know that setting the price too low can be almost as harmful

as setting the price too high. Buyers who are looking in a specific price range may not consider your

43

home because of the low price tag. They assume it will not fulfill their needs or worry that there’s something wrong with it.

Myth #14: Selling your home yourself will save money.

Truth: Most buyers are represented by real estate agents who expect to earn a co-op fee of 2.8. If you agree to pay the co-op fee you have already paid much of the total real estate marketing fee. Those buyers who are not represented by an agent are looking at For Sale By Ownersellers because they believe they can save money by having the seller pass the saved commission on to them. The National Association of Realtors has determined that the average For Sale By Owner sells for an average of 9.2% less than comparable homes sold by a Realtor®. Finally, when a home is sold without representation, huge legal liabilities come into play that could impact you long after the home is sold.

44

Dividing the Fees

Home is sold for $500,000

6% of Sales Price + GET

Buyer Agent’s Brokerage

3% of Sales Price + GET

($15,000 + GET)

LESS

Brokerage operating expenses

Listing Agent

X% of $15,000

LESS

Business expenses

Listing Agent’s Brokerage

3% of Sales Price + GET

($15,000 + GET)

LESS

Brokerage operating expenses

Buyer Agent

X% of $15,000

LESS

Business expenses

45

Realtor Code of Ethics

46

How Selling a House is Like Playing a Baseball Game

Second Base

Receiving and negotiating offers

HOME!

We made it! We’re closing escrow

and you’re moving on!

Step up to the Plate

After all the preparation is done, we get into

the game by notifying the world that we’re

ready for the pitch!

First Base

Showings

Third Base

Negotiating

an offer and

opening

Don’t get

thrown out!

47

Notes

48

RE/MAX Prestige

7192 Kalanianaole Hwy., Suite C-126, Honolulu, HI 96825

(808) 396-2021

Each Office Independently Owned and Operated