century 21 s.g.r. seller's handbook
DESCRIPTION
Fine Homes and Estates Seller's HandbookTRANSCRIPT
Seller’s HandbookSeller’s HandbookSeller’s Handbook
Century21 SGR, Inc.
G L O B A L . . . LOCAL . . .
IN YOUR NEIGHBORHOOD . . .
THE SGR VALUE PROPOSITION
We are a strong, vibrant real estate firm with a global reach. We strive to deliver unsurpassed market intelligence and insight. We are committed to our clients and their goals. Belonging to a global network is our edge: This EDGE allows us to give
unparalleled exposure to our listings.
OUR GLOBAL NETWORK…OUR LOCAL SUCCESS
8000 Offices Worldwide 143,000 Sales Associates 56 Countries The Largest Referral Network in the World Global Strength…Local Success
Canada Mexico Japan China Thailand Russia Asia Pacific France England All 50 states
World Class Marketing Systems & Tools
Property Discovery Through Unparalleled Exposure
Thousands Of Successful Sales
COMMITMENT
COMMITTED AGENTS
Our Agents singular focus is to achieve their clients’ goals. Invariably, these goals have three interwoven components: The best possible price The shortest period of time The most seamless transaction possible To affect these layered goals our agents work unceasingly to expose their clients’ properties to the market. It’s through creative, systematic marketing that our clients’ goals are affected. It’s only through a global network that maximum exposure can be achieved.
Exposure to discovery through to sale. No firm is better equipped to complete this cause and affect triangulation than SGR.
THE BE ALL AND END ALL: MARKETING
DISCOVERY
As part of the most successful global real estate network, SGR has full access to the most creative and sophisticated graphic design systems and tools extant. We are able to present a property in its fullest light to the largest, qualified audience possible. Exposure, then discovery, are achieved through world-class graphic design imaging; through unsurpassed agent access: 143,000 Century 21 agents; 13,000 CAR members; 50,000 Multiple Listing Service of Northern Illinois participants; and through
comprehensive persistent marketing, running the gamut from the time tested…signage, open houses, broker contacts to the technologically creative…internet placement, search engine optimization, individual listing web pages, keyword purchase, exclusive internet lead capture. Underlying everything are the most committed and tireless agents to be found.
SUPERIOR DESIGN; CREATIVE OUTREACH
The Internet is the primary way for exposure and discovery of listings. The National Association of Realtors reports that 84% of consumers go online to find their next home. SGR’s experience suggests that approximately 93% do so. This is where SGR separates itself from local competitors.
3 MILLION According to Webtrends Analytics, Century 21.com receives approximately 3 million unique visitors* per month. With direct linkage by zip code, listing, office and agent, SGR receives thousand of leads from this one service alone. *unique visitors are the number of different individuals that access century21.com during the course of the month.
DISCOVERY
CENTURY21.COM ATTRACTS MORE THAN 3 MILLION UNIQUE VISITORS PER MONTH
DISCOVERY
EVERY SGR LISTING IS DISPLAYED IN SHOWCASE FORMAT WITH MULTIPLE
PHOTOS AND SLIDESHOW
INTERNET MARKETING
On our award winning national website, SGR showcases all of its listings with an innovative search experience. We offer an array of options to display the search: List, Grid, Map and Photo Flow. We also distribute all of our listings to other national sites to achieve maximum exposure & discovery. Google.com Trulia.com Zillow.com Yahoo.com Homes.com Chicagotribune.com Craiglist.com Msn.com Realtor.com Homefinders.com AOLrealestate.com Frontdoor.com Wallstreetjournal.com Cyberhomes.com Coldwellbanker.com BHGrealestate.com
YOUR LISTING
MLS-MRED
REALTOR.COM CENTURY21SGR.COM CHICAGOTRIBUNE.COM
YOUR LISTING WILL BE DISCOVERED
TRULIA.COM
LOOPNET.COM
CENTURY21 INTERNAL DATABASE
CITYFEET.COM……..REALESTATE.YAHOO.COM REALESTATE.AOL.COM…………...REALESTATE.MSN.COM HOMES.DAILYHERALD.COM……………..SUNTIMES.COM NBC5.COM…………..PLUS HUNDREDS MORE…..
HOMES.COM
CHICAGOTRIBUNE.COM GOOGLE.COM
ZILLOW.COM
CENTURY21.COM
EXPOSURE - DISCOVERY - SALE
TIME TESTED...SUPERIOR IMAGING
THE MOST RECOGNIZED SIGN IN THE WORLD
THE PRICING CHALLENGTHE PRICING CHALLENGEE
Pricing a home in an unstable market is extremely challenging. The last time housing prices significantly declined was from 1989 through 1991.
Source: Standard & Poor's and Fiserv
The only experience that most real estate agents and many homeowners have ever known is pricing into a rising market. The universal, historical practice of finding the best closed comparable and deciding how much more to ask for it is no longer feasible. With prices moving in multi-directional ways for the first sustainable period in two decades, the last closed sale might be the harbinger of better things to come, or the precursor of still lower prices.
PRICING INTO A MARKET IN FLUX
Since 2006, metropolitan Chicago has seen an overall decline of approximately 29% (Source: S&P/ Case-Schiller Housing Price Indices). During the last year (2008-2009), prices retracted 8.5%. In many areas of the city and the nation, prices have fallen to 2003 levels.
Source: Standard & Poor's and Fiserv
Old Town Of course, metropolitan and city-wide numbers don’t tell the stories of individual neighborhoods. Some have fared better than others, but many have dropped. The neighborhoods that have fared the best share a common thread: Housing prices and income have risen together. Emerging neighborhoods where housing prices have dramatically escalated while incomes did not keep pace have fared the worst. What does this mean for individual homeowners? It’s critical as never before that they find an agent with an extreme depth and breadth of knowledge about their neighborhoods. Agents must know a neighborhood block-by-block, housing type-by-housing type, complex-by-complex, and individual home-by-individual home and know historical pricing patterns. Beyond a rendition of the past, they need to understand the economic forces that will drive prices in the future:
Loop
HYDEPARK BRIDGEPORT
Near South Side
LAKEVIEW NEAR NORTH SIDE
Jefferson Park Englewood
Edison Park
The number of foreclosures hitting the market Short sales in the neighborhood Interest rate movements Lending practices Marketplace psychology Absorption rates
Agents must be able to factor all these variables into their primary pricing methodology, the Comparative Market Analysis, when advising a homeowner.
A CMA is a comparison of similar type properties that have sold in the recent past, preferably the last three months. It secondarily analyzes pending sales, houses presently for sale (actives), houses that have failed to sell (expired), and absorption rates (how many homes are selling per month in a specific area). By far the most weight is given to sold and closed properties. These comparables tell us what buyers have actually paid for properties in the most recent past. The key for agents in guiding sellers on price is to find true comparables. Factors which affect the value of properties can be divided into internal and external determinants:
CMA
Location Size Livable Square Footage Lot Dimension Zoning Condition Special Features Physical & Functional Utility
INTERNAL PROPERTY FEATURES
EXTERNAL FACTORS
Market Conditions
- Supply & Demand - Comparable Properties for Sale - Absorption Rates - Market Times - Time of Year - Psychology of Market - Foreclosure in Area - Short Sales in Area - Interest Rates - Employment
Agents must find comparables that closely mirror these internal influences and factor into the equation the external components. They must have exceptional analytical skills, knowledge, and experience to do this.
Agents must also possess a high level of confidence and conviction so they don’t dilute their recommendations when facing sellers who confuse prices paid with present values or needs.
A 2009 Agent Metrics report entitled “Selling Price to Original Listing Price” for the City of Chicago shows that when the average days on the market for a home is 116 or less, the average selling price as a percentage of the original listing price is 96%; conversely, when the average days on market extends to 240 or more, the average selling price as a percentage of the original listing price drops to 82%. Conclusion: Sellers must price their properties correctly from day one.
Average selling price as a per-centage of OLP
Average days on market
Average selling price as a per-centage of OLP
Average Days on market
96% 116 82% 240
Home with no price changes Home with at least one price change
Source: Agent Metrics, MRED LLC data, 2009, Selling Price to Original Listing Price, City of Chicago.
THE SELLING PROCESSTHE SELLING PROCESS
NEGOTIATING THE CONTRACT
An offer is not a contract until fully executed by the buyer & seller. An agent’s job is to generate an offer or offers Once an offer is generated, the negotiations can begin. This is another facet of the transaction where comprehensive training and experience are critical.
Long before reaching the second phase of the transaction your agent will have reviewed with you…
All contract and disclosure forms The original and updated CMAs Single and multiple offer protocols All probable buyer financing options His or her fiduciary obligation
With the seller’s objectives clearly understood and extensive pre-negotiation preparation in place, the actual negotiations usually proceed in a calm and professional manner.
CONTRACT TO CLOSING AND BEYOND
Holding the transaction together after the acceptance of an offer is the final phase of this Trinitarian process. Every detail to effect a closing must, and will, be attended to by your agent. They will coordinate, oversee, and direct the following pre-closing activities:
Document collection, including all contract and disclosure forms, and distribution to all parties Notification of and compliance with all “time is of the essence” contractual deadlines including, but
not limited to, the following: Attorney’s review Property inspection Receipt of earnest money Escrow compliance Loan commitment Preparation and distribution of broker’s statement Closing of escrow Closing confirmation
Your agent will explain to you all other pre- and post- closing services that are administered primarily through the Century 21 international alliance partnership network. They include:
Home warranty Recommended contractors Relocation services Moving and storage discounts
After the closing your agent will keep you informed about the marketplace through periodic reports detailing the state of the market nationally and locally.
Yearly, an updated CMA will be emailed to you. “Our goal is to make Century 21 SGR your brokerage firm for life.”
Why list with Century 21 SGR, Inc.? Superior agents – training, productivity, energy, teamwork Superior marketing system—comprehensive, written, verifiable Superior results: best possible price; seamless transaction
SOUTH LOOP OFFICE 1823 S. MICHIGAN AVE.
CHICAGO IL 60616 312.326.2121 (o) 312.326.7911 (f)
WEST LOOP OFFICE 1161 W. MADISON ST.
CHICAGO IL 60607 312.455.3122 (o) 312.455.3124 (f)
LAKEVIEW OFFICE 3813 N. LINCOLN AVE.
CHICAGO IL 60616 312.326.2121 (o) 312.326.7911 (f)