by Jerry Stoffer, ABR

   It's hard to get anxious buyers -
who are sometimes totally wrapped up
in the moment - into thinking about
the future. In my real estate business,
however, I make thinking about the
future value of the home a key part of
my sales presentation.
   True, much of what the buyer needs
to keep in mind is very basic informa-
tion, but it never hurts to brush up on
the basics.
   Much of my business is comprised
of corporate clients, many of whom get
transferred every two or three years. It
is essential that these mobile buyers
think about resale value, so that when
they come back to me to list their
home it will sell fairly easily.
   Typically these clients, who often
find me through a business referral
system, are in their 30s and 40s and
have children, so schools are naturally
important.
   It's up to me to point out other fac-
tors about whether the home will
resell well - like whether a new office
complex is planned nearby to bring in
jobs or whether the home is priced in
line with other properties or whether
the floorplan is marketable - so the
buyers can recoup their investment
when it's time to move.
   I try to use my 18 years of experi-
ence in the business to simplify the
process and show buyers that the three
most important factors (in order of
importance) are location, price and the
actual house.
   It's straight-shooting, from-the-hip
advice like this that has helped me
gain referrals. In fact, 85-87 percent
of my business is referrals or
repeat clients.
   If I can build that base, other real
estate professionals can too. Here are
some suggestions about tailoring your
sales approach with resale in mind.

1. Start on the Right Note
   I start off with a planning session at
my office with corporate buyers.
   You need to be astute to help these
buyers get in the right frame of mind
before they start seeing homes.

Jerry Stoffer 'The Real Estate DoctorTM, of Winter Park offers tips for buyers' agents.

It's up to you to point out other factors

about whether the home will resell well

so the buyers can recoup their investment

when it's time to move.

   Key to this for me is a questionnaire and a financial analysis. You want them thinking in terms of value drivers and not all do that, so it is up to you to introduce these factors upfront. What you want to do is relate their initial preferences for location, price range and house features to the value drivers.
   A focus on resale value will also focus the search.
   I find these planning sessions save hours of driving around without a focus.
   I recently had a Federal Express employee referred to me from the RE/MAX referral system. He came in to fill out the questionnaire and that laid such a good foundation that we found a home and wrote a contract the next day.

2. Drive the Street
   After prescreening the area, I like to take the buyer out for a driving tour. This is where you should remind the buyer that location is the most important factor to a home's value.
   Value truly begins with individual neighborhoods or subdivisions. A nice, well-kept neighborhood where homeowners take pride in their homes is going to impress buyers and yield a stronger resale.
   I try to sell buyers on the neighborhood and/or the street before I take them in a house. For example, if you see lots of "street clutter" that is not a good image of the neighborhood. These are the same things an appraiser looks at and that is why he or she typically takes a picture of the street as the first step to determining the value of a home.
   Of course here in Winter Park -- and other such areas -- it's smart to buy a well-priced modest property in an area where people are putting up huge mansions. Some people would think buying a 1,000-square-foot home next to a mansion to be a smart move. This idea wouldn't appeal to most corporate customers though.

3. Check the Curb and the Backyard
   I cannot believe how many people, particularly in new construction, undervalue the impact of "curb appeal." This image of the home, before the buyer even steps inside, is the first image that they see. It should invite them into the home.
   A common mistake for salespeople, however, is focusing on just the curb. Instead, I recommend looking in the backyard for value detractors such as power lines or water towers within sight of the home.
   Other detractors that smart resale buyers need to heed are busy roads nearby and especially undeveloped land that could be a future sewage treatment plant.
   Pick a street and drive them to the end of it. Urge them to fully digest the neighborhood and surroundings.

5. Structurally Speaking
   Of course, the bedroom, bathroom and garage count are still the primary house features for buying a home, but advise your buyer to purchase a house design that appeals to the statistical majority of demand for resale. Go back to the common-sense approach: Avoid the mistake of buying a two-bedroom, one-car garage home in a family area of three- to four-bedroom homes with working adults that typically commute.
   Also point out whether or not the home is solidly constructed with concrete blocks. This sturdy feature is a plus over a wood frame.

6. Check the Condition
   With resale homes, you always want to check the condition of the house.
   Recommend buyers get a professsional inspection prior to the purchase to avoid the reduced value at resale time of "big-ticket" replacement items such as the roof and the A/C system. Show buyers that resales are better values than new homes because new homes have automatic depreciation; instead buy a resale in excellent condition with features that can be purchased at depreciated price. You want buyers to see the whole picture and the fact that they may get a pool, upgraded landscaping, etc., sometimes for half of the new home price and that later on those things can make the house more enticing.

Overall, I think that the buyers' agent should always try to use the three simple value drivers - location, price and house - to create and follow a purchase plan. You will be happy when your buyer calls you back when it is time to resell.

Jerry Stoffer, ABR, is a broker-salesperson with REIMAX 200 Realty in Orlando. He specializes in buyer representation of corporate clients. He writes 50 buyer contracts in a typical year over the last 10 years.