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

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RE/MAX Prestige7192 Kalanianaole Hwy., Suite C-126, Honolulu, HI 96825

(808) 396-2021Each Office Independently Owned and Operated

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Contents

Your Money’s Worth 6

First Things 13Agency Relationship 13What’s important to you? 14

How much can I sell my house for? 14How long will it take? 14How much hassle is it going to be for me? 15

What else is important to you? 16

Choosing Your Professional 17

My Marketing Program 20Preparation 20

Professional photography is a MUST! 20Staging 21How will buyers see your property? 22

Positioning in the Marketplace 23Determining a market-sensitive price 23Market Evaluation 25The dangers of overpricing 26

Promotion and Exposure 27Advertising 27Syndicated listings 28Global Listing 29Your Property Website 30Showings 32

About Me 33

What Clients are Saying… 34

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Why RE/MAX is your best choice 36Nobody sells more real estate than RE/MAX. 37The Business of Caring 38

APPENDIX 40Real Estate Myth-Busters 40Dividing the Fees 44Realtor Code of Ethics 45How Selling a House is Like Playing a Baseball Game 46Notes 47

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For all the things that move you.

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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

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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.

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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!

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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

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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

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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

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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

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First ThingsAgency 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.

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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.

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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.

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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?

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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.

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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.

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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.

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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?

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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.

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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.

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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 transactions

Amount the seller spent on improvements

Overall condition and certain upgrades, especially kitchen and bathrooms

What a real estate agent says the home is worth

What an appraiser says the home is worth can affect value because of financing limitations

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What the tax assessor sees… What you see…

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

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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

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The dangers of overpricing

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

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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.

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Examples of Syndicated Listings

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Global Listing

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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.

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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.

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About Me

Every 30 seconds, a RE/MAX agent

helps someone find their perfect place.

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What Clients are Saying…

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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.

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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.

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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

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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.

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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.

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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

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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.

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Dividing the Fees

Home is sold for $500,0006% 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

LESSBusiness expenses

Listing Agent’s Brokerage

3% of Sales Price + GET($15,000 + GET)

LESS

Brokerage operating expenses

Buyer Agent

X% of $15,000

LESSBusiness expenses

45

Realtor Code of Ethics

46

How Selling a House is Like Playing a Baseball Game

Second BaseReceiving and negotiating offers

HOME!We made it! We’re closing escrow and you’re moving on!

Step up to the PlateAfter all the preparation is done, we get into

the game by notifying the world that we’re ready for the pitch!

First BaseShowings

Third BaseNegotiating an offer and opening

Don’t get thrown out!

47

Notes

48

RE/MAX Prestige7192 Kalanianaole Hwy., Suite C-126, Honolulu, HI 96825

(808) 396-2021Each Office Independently Owned and Operated