22115WES

HOW TO SELL YOUR HOUSEFOR MORE, AND FAST

Bharat Kumar Residential Sales

A trusted opinion.

Bharat Kumar Residential Sales021 912 866DDI 09 391 3299

Barfoot & ThompsonWest Harbour BranchCnr. Luckens & Hobsonville Roads09 416 5599 barfoot.co.nz

This complimentary copy of How To Sell Your House For More, and Fast is courtesy of Bharat Kumar, Barfoot & Thompson West Harbour. Design & set up by Kaylee Liu.

TABLE OF CONTENTS

INTRODUCTION 4 WHICH HOME REPAIRS RESULTS IN THE GREATEST RETURN? 6CALCULATE YOUR HOME REPAIR PRIORITIES 7LIGHTEN & BRIGHTEN 8CLEAN & DE-CLUTTER 9LANDSCAPE FRONT & BACK YARDS 10STAGE A HOME FOR SALE 11REPAIR ELECTRICAL & PLUMBING 12REPAIR DAMAGED FLOORING 13UPDATE KITCHEN & BATHROOMS 14REPLACE OR SHAMPOO CARPETING 15PAINT EXTERIOR WALLS 16PAINT INTERIOR WALLS 17A VENDOR’S GUIDE TO SELECTING THE BEST REAL ESTATE AGENT 18

HOW TO SELL YOUR HOUSEFOR MORE, AND FAST

4

INTRODUCTIONSo….you’d like to sell your house? Great! Everyone’s doing it. But this is your first time and you’ll be going on the market in near future. Nervous? Of course!

The fact is, it’s only unnerving because you haven’t got much of a clue about the dynamics of selling a house – your house. It’s the one asset you have where you’ve invested your lifetime savings. Now you want it all back!

That equity you were slowly building over these years will come back to you because you’ve thought about it long enough to realise that there is a handsome profit waiting to be made.

Don’t worry! This episode in your life doesn’t need to be a drama of horrors. In this eBook, we’ve collected important tips for you – the first timer.

And when that cheque finally lands in your hands or your bank account and the last box has been shipped out of your house to make way for

the new owners, it will be exhilarating – more exhilarating than you’ve ever imagined it to be.

Study the tips. Some you already know, no doubt. But even with all the tips, you’d still need professional advice of your real estate agent (primary source), your lawyer and maybe your accountant. You need to consult with other professionals as well – like the tradespeople who will give valuable advice about repairs and maintenance.

With the assistance of your Real Estate Agent, these tips can help you map out a selling strategy for your house, and when you turn the lock for the last time, you’ll come out of the experience wiser. And yes, wealthier, too.

The confidence you gain by getting your feet wet the first time could – who knows? – make you want to do it the second time, and then a third time…and more!

5

IT’S NOT A QUESTION OF IF

THE PRICE OF REAL ESTATE CAN BE INFLUENCED ...

IT’S A QUESTION OF BY HOW MUCH.

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6

WHICH HOME REPAIRS RESULTS IN THE GREATEST RETURN?

HOME IMPROVEMENTS:

• Clean and De-clutter• Home Staging• Lighten and Brighten• Landscape Front / Back Yards• Repair Plumbing• Update Electrical• Replace or Shampoo Carpets• Paint Interior Walls• Repair Damaged Floors• Update Kitchen• Paint Outside of Home• Update Bathroom

From the studies conducted locally and overseas, it is the small improvements that pay the biggest dividends when the home is sold. It is normally advised the homeowners to do as little as possible – perform touch-ups on floor tiling instead of replacing the entire floor; shampoo the carpets instead of replacing them. However, if the homeowner and their real estate agent determine that the condition of certain areas is deemed to be too poor, more extensive work may provide the greatest benefits.

Most of the activities identified are common sense, but many sellers overlook some of the most critical items in the pressure of getting their house prepared for sale.

The following is a summary of home improvements identified which will make the highest impact - the time house is on the market and the sale price.

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CALCULATE YOUR HOME REPAIR PRIORIT IESEstimating home improvement costs requires specialised skills. You can’t price home improvement work the same way you’d price new construction. The proportion of labour expense is greater but if you can undertake much of the work yourself it will keep the cost down. There’s far more risk because there are far more variables and unknowns.

By far the most common estimating mistake will be omitting something essential to the job. Get in the habit of completing an exhaustive job survey before beginning any estimate for home improvement work

If you have some experience with home improvement or are a handy around the house and understand what needs to be done you’ll be right. However accurate pricing is crucial to carrying out the improvements in a cost effective manner.

ALL HOME IMPROVEMENT HAS SIMILAR PROBLEMS:

• No chance for economies of scale (mass production),

• Difficulty in removing just enough of the old,

• Work doesn’t follow the normal (from the ground up) sequence of construction,

• Difficulty adding new materials to deteriorated or nonstandard existing materials,

• The need to match designs, colours and textures,

• Covering up for another contractor’s mistakes,

• Struggling to get access to the place where the work is to be done,

• Protecting adjacent surfaces and pathway to the work area,

• Initial uncertainty about how much work is needed.

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L IGHTEN & BRIGHTEN

TIPS:

• Clean all windows, inside and out• Wipe all light fixtures with a rag and

cleaning solution• Keep curtains open; use as much natural

light as possible• Polish brass and glass• Clean existing shutters, blinds and drapes• Make sure all outdoor lighting works• Clean all switchplates• Install new window treatment if yours are

damaged• Prune outside trees to allow as much

natural light inside as possible• Make sure all windows open easily. Repair

sticky windows that don’t open• Use the brightest light bulbs possible, while

making sure they have the right wattage• Install dimming switches in rooms such as

dining and living / lounges, to allow you to create lighting for different occasions

• At night, turn on porch light and other outdoor lighting

One of the most noticeable yet economical improvements you can make to prepare your house for sale is lightening and brightening. Buyers look for space, light and comfort. Often all a homeowner has to do is make simple touch-ups that can create very noticeable results. For instance, it is important to make the entry to your house as light and bright as possible. Bright light can make a small home appear larger, while soft light provides a warm, cosy atmosphere to empty spaces.

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CLEAN & DE-CLUT TER

TIPS:

• Organise closets, storage rooms and areas

• Polish woodwork, metal and glass/mirrors• Clean windowsills, doorsills and shelves• Remove all your personal possessions• Keep screens cleaned and vacuumed• Make stairwells and hallways clutter free• Get rid of odours (e.g. pet, food, cigarette)• Get rid of all items on front and back porch• Clean or purchase new front door

hardware• Clean the entryway carefully, it creates

the buyer’s first interior impression of your home

• Clean the inside of all kitchen and bathroom cabinets, and neatly organise items on shelves

• Ensure all doors, cabinets, and drawers can open completely, without any blockage

• Remove appliances from above kitchen counters to give a look of spaciousness

• Make bathrooms sparkle; sinks toilets and tubs should be immaculate

• Hire a professional to thoroughly clean the interior and exterior of your home (if required)

• Keep bookshelves and entertainment units organised neatly

• Remove excess furniture to give your home a spacious look

• Call in an exterminator to take of insect problems

Thoroughly cleaning your home and freeing it from all clutter can be the most important of all pre-sale activities. Buyers want to imagine themselves in your home, but will have a difficult time if there is extensive clutter. It can be difficult to maintain an immaculate home over the period of time when it is shown to prospective buyers, but it is definitely worth it. Consider renting a short term storage for excess furniture and other belongings.

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LANDSCAPE FRONT & BACK YARDS

TIPS:

• Mow, trim, fertilise and water the lawn• Edge the lawn and secure fences• Remove dead or dying plants and flowers• Clean all debris from front and back yards• Thoroughly weed flowerbeds• Waterblast - wash the deck • Prune trees and bushes• Rake fallen leaves• Weed and fertilise the garden• Keep firewood neatly stacked• Keep rubbish bin area clean and organised• Keep paths, steps and driveway clean &

obstacle free• Remove signs such as “Beware of Dog” if

there is no dog• Replace welcome mat at the doorway

• Remove moss and weeds from paths, walkways and driveways

• Add colourful plants and flowers near front door and porch area

• If views are obstructed by overgrowth, restore views by trimming trees and bushes. Even ask the next door neighbour for permission and have trees trimmed in their yard at your own expense.

• If you have an awning for the patio, make sure that it is also free of debris and that there are no tears or worn material. Replace if necessary.

• Strengthen the fence as necessary if it is leaning and also check and strengthen the retaining walls if required

Many buyers decide based on the “curb appeal” of your home whether they want to see the inside. It is advisable to invest some money on modest landscaping to enhance the appearance of your home. The same logic applies to your back yard as well. An immaculate lawn and garden can significantly increase the appeal and value of your home.

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STAGE A HOME FOR SALE

TIPS:

• Place fresh flowers, potpourri and other decorations around house (even in bathrooms)

• Play soft music• Turn all lights on• Open drapes, curtains or blinds• Turn fireplace on in the winter• Use room fresheners in kitchen and

bathrooms• Set the dining room table for a dinner party• Hang artwork on the walls• Hang new towels in the bathroom for your

guests• Remove personal possessions, like

photographs, frames, trophies and mementos

• Tag or remove items not included in Sale (please let your Real Estate Agent know before hand – so appropriate disclosures can be made) e.g. water feature, chandeliers, plants, drapes.

• Stage garage – clean up oily floors, straighten tools and other equipment.

Staging can be the secret to selling your home quickly. Your house will attract more qualified and serious buyers if it is already in a staged condition when you begin to show it. Your real estate agent can assist you in adding the finishing touches and staging your home for sale. This often involves rearranging furniture or even hiring modern furniture to show your house in the best possible light. Vacant houses can be more difficult to sell because most buyers have difficulty visualizing themselves living in an empty house.

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REPAIR ELECTRICAL & PLUMBING

TIPS:

• Make sure that all bathroom and kitchen faucets / taps are in good working order.

• All toilets should be in good working order• All drains should be clean and free flowing• If needed, hire a plumber to replace badly

rusted and corroded plumbing pipes• Clean up, paint or replace old plumbing

fixtures in bathrooms• Repair leaky faucets and remove any rust

stains in sinks or tubs• Remove mildew stains and repair any

loose, crumbling caulk or grout around tile and tub areas.

• Repair holes in the gutter and repair any separation from the eaves

• Make sure that all smoke and burglar alarms are functional

• Doorbell should be in working order• Change old light fittings with modern light

fittings• Replace very old wiring (1950’s) and rewire

the house to present day code

All of light switches, overhead lights and plumbing fixtures should be in working order. Before putting your house on the market, be sure to have all defective electrical switches replaced. These low cost items can have a very positive effect on the appeal of your home. If the problems are greater, call in a licensed electrician to examine all wiring

and make any necessary repairs.Plumbing is one of those jobs that needs to be handled in the right manner. Some easy jobs you can do yourself. If you’re not sure, call in a professional; the consequences of a mistake can mean costly water damage to your house.

13

REPAIR DAMAGED FLOORING

TIPS:

• Patch, repair or replace hardwood flooring• Clean and wax wood or linoleum floors

(Replace missing or damaged linoleum tiles)

• Mop and vacuum floors (carpet, marble ceramic, etc.)

• Eliminate any creaks in the floors by driving finished nails into creaky areas.

Like everything in your house, you should keep flooring very clean all the time and, if necessary, enhance the appearance at minimal cost. Some repairs or replacement may be necessary to improve the condition and appearance of your home.

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UPDATE K ITCHEN & BATHROOMS

TIPS:

• Make bathrooms and kitchen sparkle• Make sure that the appliances are

operating and have proper documentation, such warranties and repair information

• If there are missing or damaged tiles, have them replaced

• Retouch or repaint kitchens and bathrooms if the colour is dated or paint quality is poor

• Make sure sinks are clean and stain free• Repair damaged countertops, sinks or tubs• Remove any mildew stains and re-seal

with silicone crumbling seals or grout on showers, sinks tubs, and surrounding areas

• Clean tile grout and make stain-free• Paint, touch up, or refinish kitchen

cabinetry• Tighten or replace loose doorknobs or

cabinet hardware, sticking doors and drawers, and wobbly hinges

• Replace toilet seat (if required)• If appliances are dated or not functioning,

consider replacing

Special attention should be paid to kitchen and bathrooms because they receive particular scrutiny from buyers. Prioritise those improvements that will be the most obvious and impressive to buyers. An immaculate kitchen and bathrooms can result in a faster sale. They should be free of all clutter to give an “open” appeal.

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REPLACE OR SHAMPOO CARPETING

TIPS:

• Steam clean carpet thoroughly• Hire a professional to deodorize carpets if

you have pets• Replace any worn carpets• Make sure carpets are secure, Stretch and

tack down any loose or curling carpet or ask a carpet layer to come and fix it

• Eliminate any creeks in floors by driving finished nails (you may have to uplift the carpet)

Carpets should be clean, vacuumed and completely smell-free. If the carpets are not faded or damaged, you may consider no more than a thorough shampooing of the rugs to improve the smell and appearance. If the condition of the carpet is poor or smells do not come out, you should consider replacing it with a neutral colour.

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PAINT EXTERIOR WALLS

Without going to the expense of painting the exterior of your house, there are many touch-ups you can do to give your home a fresh “new” look. Particularly important to the outside is the appearance of the garage and front doors. The window and door frames should also be painted.

TIPS:

• Paint or clean front and garage doors• Paint window ledges• Paint the mailbox• Paint over any rust spots or streaks on

downspouts• Sand and repaint areas with blistering or

peeling paint• Paint exterior fixtures• Paint or re-stain fence if it is peeling or

dirty• Repair any damage to the chimney and

ensure it is cleaned /swept within last twelve months

• Repair holes in gutters and repair any separations from eaves

• Repair or replace shingles or tiles missing from the roof

• Seal cracks on porch and remove any standing water, if concrete. If the porch is wood, secure railings and seal or paint as necessary

• Clean and wash moss / algae off the south side of the house thoroughly and then perhaps put new paint on, if required.

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PAINT INTERIOR WALLS

TIPS:

• Remove dated wallpaper, prepare the walls and then paint walls a neutral colour

• Whitewash dark panelling (if possible)• Paint, touch-up or refinish kitchen

cabinetry• Put a fresh coat of paint on your front door• Tone down bright room colours by

painting them white or neutral colours• All woodwork, such as stairwell railings and

doors should be repainted and / or stained• Have leaks repaired and watermarks

covered• Make sure that cracks in ceilings and walls

are repaired • The windows should be washed and

stain free. The window frames should be painted if necessary, and the hinges should not squeak

A fresh coat of paint can make a world of difference to a room. If your walls are in good condition, often you can get away with just retouching. However, if the walls are dingy or have nicks or holes in them, taking the time to repairs and repaint them now can pay off later.

The key to a great paint job is in the prep work. You should plan on patching or repairing wall / gib in your house to cover nail holes, furniture nicks or damage created by children’s toys. Paint will not hide cracks and other defects in your walls, so you will need to spend some time up front preparing the walls to ensure that your paint job will look professional. Please avoid painting over wallpaper.

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Finding an agent is not a difficult task, however finding a GOOD agent amongst the many agents out there can be a little trickier. Firstly, in most cases, your home is your biggest asset. You have an emotional attachment to it and it is hard to be completely objective about the sale.

BRAND VERSUS AGENTIt is the person, rather than the brand, who vendors firstly choose. However you also need to evaluate - does the brand have an image that sits well with your property. They will already have a number of buyers in that range that could possibly be interested in your property. When going to a brand, you still have to have an agent. Here are some pointers to help with the process:

• Don’t select an agent on emotion. Select an agent who you believe will do the best job. Invite at least two or three agents from different agencies to come to your home and present to you.

• A top agent will have sent to you a pre-listing kit. This should have some information about themselves, their background, their successes, some references from satisfied customers, and the recent sales in your price range. They should have sent this to you before the meeting, so that you have some time to absorb the information.

COMMUNICATION

Ask the question: “If I choose you, how and how often will you keep me up to date during the marketing?”From experience we note, the number one complaint vendors have about agents, is lack of communication. Communication should not only be verbal, but there should also be a written report once a week explaining the activity on the property, the number of inspections and what the buyers had to say in regard to price and presentation. You should expect the report to be given to you in person so both parties can have an open discussion about it and any other matter that may have arisen.

A VENDOR’S GUIDE TO SELECTING THE BEST REAL ESTATE AGENT

“ The greatest fear any vendor has in selling their property should be appointing the wrong agent.”

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PRICING THE PROPERTYBe very wary of the agent who prices your property off the top of their head. A real estate agent is not a valuer. They are a marketer and negotiator. A top agent will look at all “comparable” sales in the area over the last 6 - 12 months. This will give a good indication of what your property is worth. You need to base your pricing structure on facts, not opinion. The major conditions that will determine how quickly a house will sell are location, condition and price.

METHOD OF SALEWhen it comes to the method of sale, all processes should be explained to you in detail. The three most favoured methods are: Sole Agency, Tender and Auction. Each of these methods differ in their approach to a sale. You should ask the agent to explain to you the benefits of each method and which is the best option for you.

MARKETING

“You can’t sell a secret.”As a vendor you need to realise you are competing with every house on the market in your price range and in your area. You need to make your property stand out, and small advertising or no advertising is not going to do the job. The internet will have a great impact on the marketing of property. You also need to have a presence in local real estate publications. An agent who knows their business will have examples of previous successful campaigns. These should show the marketing adopted for the property, along with the cost to and the result they achieved for the client.

COMMISSIONYou need to know how much all this is going to cost. Get the agent to detail what their charges are. Compare “apples with apples”. A smaller company may charge a little less commission but will be unable to generate the competition to own your home a large company can. A larger company with its common listing database is likely to create intense competition and get you the very best price for your home.

The information above is very important in selecting the right company and salesperson.

However the most important piece in the selection process is that you must like the agent, and must trust that they will do and give their very best to ensure that you achieve the very best result possible in the sale of your home.