For Sale By Owner Tips
Sell Your House Without a Real Estate Agent

How To Show Your House and Close the Deal

You’ve done your research.  You’ve priced your home, cleaned and freshened it up.  Your sign is hung out and you’ve worked hard on creating an intriguing ad.  You told everyone you know that you’re selling your home.  Now you wait for the phone to ring.

How do you handle calls from buyers?  What do you ask?  How do you get them to come visit?

First of all, make sure you get the call.  If you only have one line then sign up for the call waiting feature from your telephone company.  Instruct everyone in the household to take calls that come through and pass on to you any calls for inquiries on the house.

Second, try to take the call in a quiet area with all your information in front of you.  Have your feature list handy to answer any of their questions and have a list of your own.  Have a calendar to book appointments.

Ask them for their name and phone number, in case you need to contact them.  Set up a time for them to come over, and try to motivate them to come as soon as possible.  If your home has been viewed before, mention to them that there is interest so they should try to come as soon as convenient.  Also mention if you are having an open house since the added traffic will make your home more desirable.

Tips on Booking Appointments

Try to book appointments on the same day and in 15 to 20 minute intervals.  One potential buyer will be walking in the door just as another is leaving.  The increased activity will create a feeling of urgency in your prospects.  Do they really want to loose the home to the nice couple that came out ahead of them?  Or to the family that is heading in while they’re still looking around?  You have to work the angles if you want to compete with the realtor selling down the street.

You don’t want to waste your time or your caller’s.  You might be able to push for some extra information if the caller permits.  Keep your voice friendly (smiling while talking on the phone will help – just consider it mind over matter).  And try not to be too put off by the caller’s phone manner, they may be nervous or hate talking on the phone.

Ask them questions about what kind of home they are looking for and try to get a feel for the price range.  If you know they wouldn’t be interested or can’t afford it (perhaps they are downsizing and you’re selling a three bedroom home) you shouldn’t bother booking an appointment.

You might ask if they are currently selling a home or renting.  When do they need to move in and have they already been approved for a mortgage?  If they haven’t been pre-qualified you might ask questions about where they work, how long they’ve been looking for a place, etc.  Be very tactful and conversational.  You don’t want to interrogate them.

If you get this information you will have an idea if they are really ready to buy your property if they’re interested.  It will also tell you how much help they may still need if they like the place but are unsure how to proceed.

In some cases you will find that these few comments may weed out some who are not reasonably able to work with you.  This will avoid the exasperation and disappointment of showing your home too many times to unlikely buyers.  However, in most cases you will want to encourage a viewing so keep their answers for referral later.

Having an Open House

The most common day to choose for an open house is Sunday.  Sunday is relaxed, the errands are done and people can see the home during the day.  It is an excellent time to find people in a buying mood.

Put an announcement in the paper earlier in the week, as well as Saturday and Sunday.  Your ad might read as follows:

 OPEN HOUSE SUNDAY 2-4
 13 - 1233 Roberts Lane, Anytown
 2 Bedroom, 2 bath Condo – Great Views! $133,000
 Visit or call Dean xxx-xxxx

Be sure to give an indication of what size or type of home they are viewing as well as price and area.  These are typically the criteria that most prospects make their judgments by.  Leave out any other details since you’d rather they just come and see for themselves.

You should list a phone number in case an interested prospect can’t make it to the open house.

If you miss the deadline, put out an open house sign in your yard anyway.  You should be able to find one at your home and garden center or a sign shop.  You may be able to pick up traffic from browsers as they drive around the areas they’re looking for a home.

Now that your advertising is done, get everything ready for scrutiny.  Most of the tasks of repair and maintenance have already been done in preparation for putting your home on the market.  Some people, however, forget the last minute upkeep that will strongly influence a buyer’s perspective.

Final Preparation

Put away the dishes, make the beds, vacuum the rugs, clean the bathrooms and maybe even add some flowers and put on the coffee.  Your house is now the statement of perfection.

Will this help?  Well, little touches and flourishes are nice, but a clean home is a necessity.  You might consider when prospects come through they are not necessarily coming to admire your décor (although we’ll come to that later), but they will certainly notice if your home looks as though they interrupted the family in the middle of supper.

People will be looking for lights in each room, especially if it’s in the evening. Improve the look of the room and avoid having your prospects fumble for switches by using table lamps or track lighting.  This will portray your rooms better than a bright, overhead light will.

You might also try adding some mirrors to increase the brightness of a room (always a sought after feature).  Also clear the fridge of excessive magnets, pictures and notes.

Consider having children and pets staying away with family or friends while prospects are viewing your home.  The extra chaos and excitement might be too much for visitors, and if they don’t like pets it’s just best not to throw it in their faces that yours is a pet household.

Financial Assistance

If you know someone who works in finance or mortgages, you might want to ask them to come by for the open house.  This way, if you do have an interested prospect you can have them talk to your financial wizard to determine if they might be qualified for a mortgage or even to start the process right there.

Some buyers are not already pre-qualified.  Having someone to work out the figures for them can be a big bonus, not only in establishing the possibility of working with them, but keeping a qualified prospect in the running.  They may not know what they can afford and consider this just a preliminary viewing before taking steps to get pre-qualified for a mortgage.

If you don’t have a financial friend, try to ask hesitant prospects questions about their income, debt and down payment.  If both are working full time, have low debts and a good down payment, encourage them to get pre-qualified or make an offer subject to financing before your home is off the market.

Have your forms ready and filled out (this will be explained in the legal issues chapter).  Also have receipts for down payments on hand.

What Not To Do

Before you get too excited about the parade of enthusiastic buyers, be prepared for professional browsers.  These people might be very complimentary, but are not likely buyers.  Perhaps they are not really ready to commit or are just curious.  Never mind.  They will still give you traffic and traffic will encourage the real prospects to make an offer.

If you feel there are less-than-desirable features in your home, do not take extreme measures of hiding them. Small yard?  Unfinished basement?  Older wallpaper?  You don’t know what your prospects see as bonuses.

Perhaps they don’t like yard work.  Or maybe they only want the basement for storage, or have their own plans to build a workshop or suite.  Older décor may appeal to buyers who are anxious to put their own stamp on the place and would feel guilty paying for new paint and paper when the existing décor is brand new.

Don’t feel you must escort your prospects out the door.  Many people prefer some privacy while viewing the home they are considering buying.  They may wish to go back and look more closely at certain areas.  If they come as a couple or a group, there may be some discussion needed without your presence.

Invite them to continue to look around at their own pace.  Be certain that you’ve given them a feature sheet with your phone number and the details of the property and home.  If they are leaving without making a deposit, invite them to return if they’d like another look.

How to Talk to Prospects

Being friendly and likeable is crucial in creating a good relationship with prospective buyers.  Try to find points of interest that would appeal to the buyer by asking questions.

Ask where they work, how many children they have, do they currently live in the area?  These causal comments can give you an idea of what to feature.  Will they be close to work, schools, parks or transit?  Is there plenty of room for the size of the family?  Can you tell them something about the wonderful neighbors?

You know your home better than any realtor ever could.  Try to find the most positive aspects that each prospect may find appealing.  If they don’t agree, at least the sale won’t be lost for lack of trying.

If you find a prospect who seems ready to make an offer, or shows sincere interest, don’t be shy.

Ask for an offer.  You may feel that an offer will be made when the buyer is ready, but making a large purchase, such as a home, requires a certain amount of courage.  Your buyers may be very tempted but need you to ask the question outright to move them to a decision.

You don’t want a nervous buyer who may have never bought a home before to walk out the door and buy the home down the block just because an experienced realtor asked the question.  They will.

Don’t be nervous.  If they want to make the offer they will likely feel relieved that you asked.

Approach them after they’ve had time to roam the home and discuss it among themselves.  Ask them in a friendly tone “Would you like to make an offer?  Perhaps we could sit down and discuss it right now”.

Negotiating

Don’t be surprised to be given very low offers to start.  The buyers want a deal just as much as you want a profit.

Take every offer into consideration.  Drop your price in increments depending on how low the original offer was.  If the original price was $150,000 and the offer is $135,000 you might want to offer $149,000.  If the offer is getting close, try to split the difference.  If you get an offer at $146,000 why not suggest a split at $148,000?

When you’ve met your threshold or you are firm on the original price you should still have some bargaining chips on your side.  Perhaps they would like to have the fridge and stove or the lawn mower included.  If you are moving into a condo with appliances, you might find this a better deal than selling them privately.

The trick is to NOT list these items on your feature sheet or mention them as part of the package.  You may have several items you’d be happy to leave behind including drapes, a freezer or other items.  You might also be surprised what the buyer suggests.  If you can part with it and it seals the deal than go for it!

Getting the Offer on Paper

There’s no such thing as a handshake deal in real estate.  Make sure you have something in writing before they leave the house.

You have all the necessary documents ready thanks to your preparation with the lawyer.  You’ve discussed the price and negotiated what stays.  Now you can ask what down payment they have ready or when they think it will be ready.

Walk them through the contract, explaining to them as your lawyer did for you.  Fill in any subjects (you will review this information under the chapter on legal information) and discuss the deposit.

Never take cash for a deposit.  Have the buyer make the check out to your lawyer which will be deposited into an escrow account.  This will assure them that you will not have access to their money until the contract is settled.  If the contract falls through, the lawyer will refund the money or give back the original check.

The deposit is to ensure the purchaser’s intention to go through with the contract.  Taking a deposit is not required legally, but if it’s in the contract the buyer must provide it.  You will have a lawyer to assist you if anyone backs out, but obviously that is not your first choice.

How Much Should the Deposit Be?

By asking for a substantial deposit – anywhere from 3-5% – you will not be running the risk of the buyer giving into ‘cold feet’ or opting to forgo the deposit and start proceedings on another home.  Unfortunately some people don’t find a problem with staking claims on more than one property while searching for the best one.  The deposit isn’t a legal requirement so any amount will do.

If the purchaser cannot give you the full deposit at the time of signing, you can agree to accept several hundred dollars and include a clause which states that the deposit will be increased to a specified amount within 24 hours (or whatever you have decided).  This will allow for the purchaser to make financing arrangements before placing the full deposit.  If you feel the reason is sound, take the offer.  You may not get a better one.

Obviously the buyer does not want their money tied up in case the financing doesn’t come through.  If it doesn’t work out they will need the money to place an offer on another property but you shouldn’t give them too much time or they may back out for any reason.

 

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