Selling with M Squared Real Estate

Congratulations, you’re ready to sell your home. You now have some tough decisions. Do I sell myself? Do I list with a national brokerage? Can a franchise company offer me more? These are good questions and a great place to start your research. Today’s real estate market is vastly different than yesterday’s. Over 90% of real estate buyers begin their search online. One in three home buyers will find the home they ultimately purchase, themselves, on the internet. For over 10 years the principals of M Squared Real Estate have been at the forefront of real estate marketing technology, creating a variety of proprietary solutions to meet the challenges of today’s market. This results in DC homebuyers being equipped with the best possible tools to locate real estate and sellers with the best possible tools to effectively market their home. We are a local company. Our consultants live, work and play in Washington, DC. They don’t commute. We know the city, we know the marketplace, and only M Squared can provide you a complete marketing solution coupled with professional, knowledgeable consultants to sell your home in the shortest time possible. Sit back and relax, you’re home.

DEAR HOMEOWNER,

M SQUARED REAL ESTATE WWW.MSQREALTY.COM

The steps to closing


STEP 1

The Home Valuation It's important that we price your home properly from the start. New listings receive a lot of attention. If your home is overpriced during the initial marketing campaign, you will lose many qualified buyers to competing properties. Your property will receive the most attention during the first two weeks on the market. Your M Squared consultant will provide you with a complimentary CMA (comparative market analysis) to assist you in pricing your home. Your CMA will include currently listed and recently sold properties matching similar criteria to your property.

STEP 2

Listing the Property Once we've determined the proper price for your home, we need to prepare the listing agreements. Your listing agreement will include the types of advertising to be used when marketing, guidelines for showings and open houses, the commission rate, and other pertinent details to allow us to best market your home to potential buyers.

STEP 3

Preparing for Showings & Open Houses Your M Squared consultant will schedule a time for one of our home stagers to visit your home. Your property will be photographed for print, online and interactive video. M Squared listings are secured with smart card, digital lockboxes that monitors all activity for your listing. In addition, all showings must be scheduled in advance, and are accompanied by your M Squared consultant. Moreover, M Squared will not show your listing to prospective buyers who have not received loan pre-approval from an accredited lender.

STEP 4

Let the Marketing Begin! No DC broker is equipped to market your property as M Squared does. Your listing is offered on over 300 online websites, including: Trulia, Zillow, Google Maps, Frontdoor, Home Finder and Hot Pads and The Washington Post (to name a few). In addition to online syndication, our listings are marketed to over 3,000 co-operating brokers and agents throughout the District with weekly emails and private agent-only open houses. All marketing campaigns are complete with professional photography, brochures, postcards, and online virtual tours.


STEP 5

The Offer The "written offer" covers such subjects as the purchase price, down payment, terms of conventional financing or financing to be provided by the seller; and covers such other subjects as the location and duration of the escrow, title insurance issues, termite and other inspections, seller’s disclosure concerning the property and any contingencies upon which the parties’ obligation of performance depends.

STEP 6

The Contract Once the contract is formed, the seller signs the “acceptance” portion of the offer. If the seller makes changes in the terms of the offer, a “counter offer” is prepared. There may be several counter offers between the parties. Once both parties have accepted and signed an acceptable counter offer, an enforceable contract is formed. The escrow holder creates a set of “escrow instructions” that set forth the terms of the transaction. Once the instructions are signed, the escrow holder obtains information and creates documents necessary to carry out the terms of the transaction. During the escrow period, the following events occur: a. The escrow holder orders and obtains a preliminary report of title for the buyer’s approval that shows all liens and encumbrances on the property; b. The brokers arrange a structural pest control report which identifies “required” repairs which are performed at the expense of the seller and “recommended” repairs. c. Other inspections, including a home inspection, are provided at the expense of the seller, and optional inspections by contractors, engineers or geologists are performed. d. “Contingencies” of the transaction are removed so that the transaction may close or are disapproved by the buyer. e. Condominiums require specific records from the condominium associations.

STEP 7

The Closing The escrow company prepares the following documents for the clients: a deed for signature by the seller in favor of the buyer, and requires the buyer to deposit the balance of the cash consid-eration. At the “closing”, the escrow records the deed in favor of the buyer and tenders the net proceeds of sale to the seller after paying real estate commissions and seller’s closing costs, typically including the cost of the buyer’s policy of title insurance; one-half the escrow fees; and document preparation and recording fees. The buyer’s “closing costs” which are deposited in escrow along with the cash consideration required to complete the purchase, include one-half of the escrow fees; the cost of the lender’s policy of title insurance; document preparation and re-cording fees; and prorations for secured property taxes and homeowner’s insurance. Following the closing, the buyer becomes the owner of the property and takes possession.

To capture the online buyer, we’re generating exposure for your property with unprecedented brand presence on Internet real estate sites and portals and microblogs. Our online marketing strategy continues to change and evolve with the ever-changing online real estate space. Just a few years ago, sites like Trulia and Zillow didn’t exist and Google™ wasn’t displaying real estate listings. As the online Real Estate space evolved and home seekers began to integrate online searching into their home buying experience, M Squared Real Estate has continued to not just keep the pace but set the industry standard with regards to online marketing solutions. Today, you will find your property, your consultant and the M Squared brand on the most visited web sites and real estate portals on the web. Not only will you have the exposure, but M Squared will promote the features most online home seekers demand: multiple photos, maps, descriptions and school and community information.

MARKETING FOR TODAY

36% of buyers found the home they purchased through a real estate agent

24% of buyers found the home they purchased through the Internet

15% of buyers found the home they purchased through yard signs

5% of buyers found the home they purchased through print newspaper ads

Statistics courtesy of National Association of Realtors 2006


msqrealty.com

OUR ONLINE PRESENCE @ MSQREALTY.COM ATTRACTS MORE THAN 20,000 VIEWS PER MONTH. OUR TOOLS ALLOW CLIENTS AND PROSPECTS ALIKE TO SEARCH PROPERTIES, PROCESS CMAS, COMMUNICATE WITH THE TEAM, ACCESS INFORMATION AND EXPLORE DC NEIGHBORHOODS WITH JUST A FEW MOUSE CLICKS.

EXPOSURE

EMAIL MARKETING (E-BLASTS) WE MARKET YOUR HOME TO OVER 6,000 COOPERATING BROKERS. Every week, we send new listing announcements along with broker open and open house invites to thousands of cooperating Realtors. Your home is also included in all neighborhood property update subscriptions that prospective buyers create on our website.


PROPERTY BROCHURES

AS THE SAYING GOES, YOU NEVER GET A SECOND CHANCE TO MAKE A FIRST IMPRESSION.

Our in-house marketing department creates property

brochures, flyers, and just listed postcards to market your home to buyers and Washington DC agents.

Every listing agreement includes custom designed

brochures with stunning high-definition photography.

Brochures are hand delivered to brokerages throughout the city, as well as prospective buyers.

PRINT MARKETING

These are a sampling of various publications where M Squared property advertisements appear.

THE NEW FACE OF PRINT

80% OF HOMEBUYERS BEGIN THEIR SEARCH ONLINE

THE SIGN OF THE TIMES The National Association of Realtors reports that 80% of homebuyers begin their search online. Our in-house research indicates this percentage for Washington, DC home seekers is over 90%. Our aggressive internet marketing programs put your home in front of prospective buyers. We include all of our listings in the online editions of The Washington Post & The Baltimore Sun.


INTERNET LISTING SYNDICATION

Facebook Craigslist Twitter Realtor.com RealEstate.com RELO Home Search Leading RE Google Maps Yahoo! Real Estate AOL Real Estate Trulia Zillow.com Frontdoor Cyberhomes HotPads Homefinder.com LakeHomesUSA CLRSearch Local.com Propbot Vast Lycos Oodle eRealInvestor LandWatch Resortscape Enormo Investor Loft Homes.com MyNewPlace Homeaway Property Pursuit Homewinks Homes Database

PLUS OVER 200 MORE

SYNDICATION ACCELERATED

CRAIGSLIST Craigslist has quickly become one of the most valuable resources to advertise real estate. At M Squared, we understand the benefits of Craigslist and have become one of the first brokers in the area to create an automatic Craigslist marketing system. Our proprietary Craigslist marketing system allows us optimize and track your home on Craigslist, ensuring you’re always at the top of search results for your area.

M Squared uses social marketing to advertise your home. We maintain active presences on Twitter, LinkedIn, Facebook & YouTube. As well as a variety of microblogs. New listings and open house notifications are automatically syndicated to all

of our presences for complete online coverage. We also allow our website visitors to follow new listings via RSS Feeds.

SOCIAL MEIDA


SINGLE PROPERY WEBSITES & MOBILE

MOBILE MARKETING Our mobile application uses GPS to locate nearby properties. Making sure to leave no buyer out, our application is available for iPhone, Android & BlackBerry smart phones. Prospective buyers can view your home’s photos, listing information, virtual tours and schedule showings. In addition, all of our marketing materials feature QR codes for one‐snap access to your property from any mobile device.


SINGLE PROPERTY WEBSITES Single property websites are complete presences dedicated to showcasing your home. Our in‐house marketing department is available to create stunning property websites loaded with features:

Personalized domain name (www.123MainStreet.com) Hi‐Def Panoramic Virtual Tours Open House Calendar MLS Compliant Website & Virtual Tour Inclusion

Integrated Property Feedback System

Search Engine Optimized

Google Street Views

And much more...

The timeline to closing

Pre-Listing Activities Make and confirm appointment with seller for listing

presentation

Review pre‐appointment questions

Prepare Listing Presentation Package

Prepare current and historical data to establish market position

Research sales activity for past 18 months from MRIS and public records databases

Research average days on market for comparable properties

Download and review property tax roll information

Research property’s ownership and deed type

Research property’s public record information for lot size and dimensions

Research and verify legal description

Research property’s land use coding and deed restrictions

Research property’s current use and zoning

Verify legal names of owner(s) in public property records

Perform exterior “curb appeal assessment”

Compile and assemble formal property file

Confirm current public schools and explain impact of schools on market value

Review current title information

Measure overall and heated square footage

Measure interior room sizes

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

Note any and all unrecorded property lines, agreements, easements

Obtain house plans, if applicable and available

Review house plans and copy

Prepare showing instructions for buyers’ agents and agree on showing time window with seller

Financing

Obtain and verify current mortgage loan(s) information: companies and loan account numbers

Verify current loan information with lender(s)

Check assumability of loan(s) and any special requirements

Discuss possible buyer financing alternatives and options with seller

Review current appraisal if available

Home Owner Association (if applicable)

Identify home owner association manager

Verify home owner association fees with manager – mandatory or optional and current annual fee

Order copy of homeowner Association bylaws

Utilities

Research electricity availability and supplier’s name and phone number

Calculate average utility usage from last 12 months of bills

Research and verify city sewer/septic tank system

Water system: calculate average water fees or rates from last 12 months of bills

Well water: confirm well status, depth and output from Well Report

Natural gas: research/verify availability and supplier’s name & phone number

Verify security system, current terms of service and whether owned or leased

Verify if seller has transferable Termite Bond

Ascertain need for lead‐based paint disclosure

Prepare detailed list of property’s amenities and assess market impact

Prepare detailed list of property’s “Inclusions & conveyances with sale”

Compile list of completed repairs and maintenance items

Send “vacancy checklist” to seller if property is vacant

Explain benefits of home owner warranty to seller

Assist sellers with completion and submission of home owner warranty application

When received, place home owner warranty in property file for conveyance at time of sale

Have extra key made for lockbox

Inform tenants of listing and discuss how showings will be handled

Arrange for installation of yard sign

Assist seller with completion of Seller’s Disclosure form

Review results of interior decor assessment and suggest changes to shorten time on market

Enter property in Multiple listing service database

Prepare MLS Profile sheet – agent is responsible for quality control and accuracy of listing data

Enter property data from profile sheet into MLS listing database

Proofread for accuracy, including proper placement in mapping function

Add property to company’s active listings list

Provide seller with signed copies of listing agreement and MLS profile sheet data form within 48 hours

Arrange for photography to upload into MLS and use in flyers

At Time of Listing Agreement

Marketing Design print and internet advertising with seller input

Coordinate showings with owners, tenants, and other Realtors

Return all calls promptly – weekends included

Install electronic lockbox if authorized

Assign a toll free number with a custom 24‐Hour pre‐recorded message and install sign rider

Prepare mailing and contact list

Generate mail‐merge letters to contact list

Prepare flyers and feedback faxes/emails

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

Prepare property marketing brochure for seller’s review

Arrange for printing of marketing brochures/flyers

Feedback e‐mails/faxes sent to buyers’ agents after showings

Review weekly market study

Discuss feedback from showing agents with seller to determine if changes will accelerate the sale

Place regular weekly update calls to seller to discuss marketing and pricing

Promptly enter price changes in MLS

Receive and review all offers submitted by buyers or buyers’ agents

Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes

Counsel seller on offers. Explain merits and weakness of each

component of each offer

Contact buyers’ agents to review buyers’ qualifications and discuss offer

Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible

Confirm buyer is pre‐qualified by calling Loan Officer

Obtain pre‐qualification letter on buyer from Loan Officer

Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date

Prepare and convey any counter offers, acceptance or amendments to buyer’s agent

Deliver signed offer to buyer’s agent

Deliver copies of fully signed offer to purchase contract to seller

Fax/deliver copies of offer to purchase contract to selling agent

Fax copies of offer to purchase contract to lender

Provide copies of signed offer to purchase contract for office file

Advise seller in handling additional offers to purchase submitted between contract and closing

Change status in MLS to “sale pending”

Deliver well flow test report copies to lender and buyer and property listing file

Verify termite inspection ordered

Verify mold inspection ordered, if required

Confirm verifications of deposit and buyer’s employment have

been returned

Follow loan processing through to the underwriter

Contact lender bi‐weekly to ensure processing is on track

Relay final approval of buyer’s loan application to seller

Home Inspection

Review home inspector’s report

Recommend or assist seller with identifying and negotiating with

trustworthy contractors to perform any required repairs

Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed

Schedule appraisal

Provide comparable sales used in market pricing to appraiser

Follow‐up on appraisal

Assist seller in questioning appraisal report if it seems too low

Coordinate closing process with buyer’s agent and lender

Select location where closing will be held

Confirm closing date and time and notify all parties

Work with buyer’s agent in scheduling and conducting final walk‐through

Research all tax, HOA, utility and other applicable prorations

Request final closing figures from closing agent

Receive and carefully review closing figures to ensure accuracy of preparation

Forward verified closing figures to buyer’s agent

Provide home owner’s warranty for availability at closing

Provide earnest money deposit check from escrow account to closing agent

Coordinate this closing with seller’s next purchase and resolve any timing problems

Have a “no surprises” closing and present seller a net proceeds check at closing

Refer sellers to one of the best agents at their destination, if applicable

Change MLS listing status to “Sold.” Enter sale date and price, selling broker and agent’s ID numbers.

The Offer and Contract Closing Preparation & Duties

When presenting your home to prospective buyers, first impressions are crucial. Buyers begin judging your home the moment they see it, and generally they prefer homes that are well-maintained, clean and clutter free -- homes they can picture themselves living in. That is why home improvements -- particularly if they

address the anticipated needs of buyers -- can WILL boost your home's saleability and sale price. Here are a few proven, cost-effective tips and will help your home look its best: Exterior (single family & townhome) Mow and rake the lawn, trim hedges, weed and edge gardens Sweep sidewalks and driveway, pick up any litter Repair gutters and eaves, touch up exterior paint Plant extra flowers for color, or place potted plants beside the front door Clean or paint front door, polish front door hardware, ensure doorbell works Power-wash siding and deck if necessary Interior Clean and tidy the entrance, clear stairs and halls, store all excess furniture Brighten interiors with fresh, light-toned paint Brighten rooms by installing high wattage light bulbs and turning them on Shampoo carpets, clean and wax floors Organize kitchen countertops -- removing appliances if necessary -- to make them look spacious Clean kitchen countertops, cabinets, appliances, washer and dryer Organize and clean out closets to make them look larger Clean and freshen bathrooms, put out clean towels, minimize clutter Clean mirrors and windows so they sparkle Organize and clean garage and basement Perform necessary minor repairs and touch-ups to walls, windows, fixtures, etc. Tips For Showings And Open Houses Be absent so buyers feel more comfortable making comments and feel like

they can linger Light the fireplace, open the drapes, play quiet background music Keep pets outdoors These are just a few ideas to get you started. We know what today's buyers are looking for and can provide more ideas that will maximize your home's appeal. Remember, a few easy and inexpensive improvements can and WILL produce big returns on your investment.

PREPARING YOUR HOME TO SELL


Pricing Your Property Is A Balancing Act On the one hand, you want to set a listing price that maximizes interest among qualified, motivated buyers who will be willing to pay top dollar for your property. Indeed, such buyers will ultimately determine your property's top market value. On the other hand, you do not want to set a listing price that attracts a lot of buyer prospects, but sets the stage for negotiations that result in your getting less than what your property is really worth. Your Home's Actual Market Value In a perfect world, your home's value would be everything you think and need it to be. However, simply put, your home's value is not determined by you, but by what the market is willing to pay for it at a given time. These days, the "market" increasingly refers to home buyers who have researched property values over the Internet for months, have already viewed a number of homes, and are not under any undue pressure to buy. You can determine a value range for your home by looking at the recent sale prices and current asking prices of homes similar to yours in your area. That is why we’ve prepared a Comparative Market Analysis (CMA) that includes a variety of "comparable" homes drawn from the local Multiple Listing Service (MLS). The Bottom Line: REALISTIC IS STRATEGIC! On average, serious buyers look at about fifteen properties before they make an offer. Doing so gives them a basis for determining how competitively a property is priced, both in terms of the market generally and what they are looking for specifically. If you overprice your property you'll usually lose serious buyers even if they otherwise love it. Experience shows that buyers usually do not make what they consider to be realistic offers on overpriced properties because they assume that doing so will just be a waste of time. The overlap between buyer and seller price ranges is depicted below. It will be helpful to keep this diagram in mind when pricing your property. The First Two Weeks This graph shows those in the buyer pool who will be previewing your house in the first 21 days on the market. If we have created a perception of value, when your house in first introduced to the marketplace, we will see the

heaviest traffic. These buyers are the best buyers because they are seasoned, qualified buyers who have seen all the other houses in the area they are looking. They started contacting agents about properties they saw on web sites, open houses or ads many months ago and are now prepared to make offers. If the positioning of your house creates a sense of urgency where more than one buyer wants the property, they will ask the question, “What will it take to get this house?” By the time we enter the third week of marketing, the showings will have dropped off. From this point, most are buyers just entering the market and are not ready to make decisions for several months until they have their

financing arranged and have seen enough houses to be educated about the market. So our best opportunities are during the initial exposure to the market.

PRICING YOUR HOME TO SELL

M SQUARED REAL ESTATE WWWW.MSQREALTY.COM


The pre-listing checklist

Questions M Squared Broker #2 Broker #3 Property Featured on MSQRealty.com? Yes

Property included in Washington, DC neighborhood-specific RSS feeds?

Yes

Advanced listing syndication to over 200 online website publishing partners?

Yes

Property featured in state-of-the-art smartphone application?

Yes

Professional photography & printed marketing materials including flyers, brochures & postcards?

Yes

Private, catered broker-only even at my property to promote the sale of my property?

Yes

Public open houses to promote the sale of my property?

Yes

Virtual tour with syndication to YouTube? Yes

Blog article about my property syndicated to over 30 microblog partners?

Yes

Featured listing on Realtor.com, Trulia.com, Zillow.com & Google Maps?

Yes

WalkScore included with property listing? Yes

Secure, digital lockbox with online access tracking? Yes

Complete online showing management w/ reviews and comments from buyers and showing agents?

Yes

Complimentary home valuation (CMA) from your listing agent?

Yes

Weekly Craigslist & BackPage posting of your property with guaranteed top ranking?

Yes

Promotion of your property on Facebook, Twitter and LinkedIn (public and agent-to-agent)?

Yes

Use of QR Code for instant access via smartphone in all print marketing?

Yes

Single property website w/ custom domain name (www.youraddress.com)?

Yes

Your property included in online editions of Washington Post & Baltimore Sun?

Yes

Marketing & branding in DC’s most-read print publications?

Yes

M Squared Real Estate is a locally-owned, independent real estate brokerage firm that specializes in assisting home buyers and sellers reach their goals in any market. We believe in

creating opportunity and discovering unique solutions for each of our clients.

Two Convenient Area Locations

GEORGETOWN 3222 M Street NW · Suite C30 Washington, DC 20007 (202) 321-5641

LOGAN CIRCLE (Opening Fall, 2011)

always online @ www.msqrealty.com

Documents

Selling with M Squared Real Estate