Sell it Yourself by PJV - HTML preview

Chapter 10
YOUR FIRST OPEN HOUSE

Congratulations! You have completed the steps in the previous sections to prepare yourself and the house for the big moment; now you are ready to show the prospective buyers who have pre approval letters from their mortgage banker the property you have for sale.

Your advertising efforts are beginning to bear fruit; inquiries are being sent via the Internet and received from interested people who have seen your flyers or the "for sale" sign on the front lawn. Friends and neighbors have given you information about people who want to schedule an appointment. Now all you have to decide is how you want to show the house.

The first month the house is on the market will be the busiest time. Scheduling individual appointments afford you more time to talk to each buyer as well as keep an eye on things. If you do not relish the idea of a crowd of people all over the house, this might be your best option. On the other hand, if you have 10 or more inquiries within a week, you need to consider having a group open house.

Schedule your open house during the period of the day where you have the most natural light. Make sure you prepare a fact sheet or have printed copies of your Internet listing with your contact information ready along with the required disclosures and questionnaire cards to give prospective buyers.

The prospective homebuyers who viewed your Internet listing have a basic idea about your property, but there will also be people who only saw your open house signs. Many of these "walk-ins" come to an open house to see how they are conducted, because they are thinking about selling their own home.

Buyers are not the only people who may be attendance. More than likely there will be an "undercover" real estate agent-a broker who uses open home showings to prospect for new clients. If a real estate agent attends the open house and offers you suggestions, listen carefully to what they have to say; it might help you to sell your home faster.

You will probably find curious neighbors as well as curiosity seekers and malicious opportunists at your front door. On the positive side, if the curious neighbors like what they see, they will tell their friends about the house; the more word of mouth advertising the house receives, the more potential is created for a fast sale.
Remember to think about your community and safety issues; you are responsible for the property until it is sold and the last thing you need is for a disgruntled neighborhood to have the car of one of your prospective home buyers towed away for parking in their driveway or a home buyer to suffer an accident because of something on your property. Play it safe with the following tips:

_Ï Although you have a "For Sale" sign on your lawn, it is best to inform your nextdoor neighbors of the date, time and duration of your open house at least 2 days ahead of time. Be polite and understanding about their concern that the influx of strangers arriving in a herd of cars. In addition, if your neighbors have pets, request that they be restrained in case one of your prospective homebuyers has a fear of animals.

Ï Keep your buyers' thinking cap on so you can anticipate their questions regarding practical needs. Get copies of fare schedules, bus or train routes, parking, day care and school district information. Make a list of the potential improvements that could be made to the house; adding a deck in the back yard, remodeling the basement to be a recreation area or creating a screened porch may pique a home buyers interest - without any discussions of the cost of these improvements.

Ï Inspect your property the day of the sale to ensure that every area around your property and inside the house is free of obstructions or anything that could cause an accident, i.e., dangling cables/cords, unstable walkway tiles, loose carpet runners, etc.

Ï Place "Open House" signs along the route to the house from major directions on the morning of the open house and be sure to remove them as soon as the open house is over.

Ï Give your home a thorough cleaning the day of the open house, lock up your valuables, place bowls of potpourri in the bedrooms, fresh towels and new soap in the bathrooms. Arrange out-of-the-house activities for the children and hire a petsitter or board your pets for the day.

_Ï Create a folder with extra house listing flyers, fact sheets, property disclosures, blank contracts and forms you need so you can be ready for the homebuyer who wants to buy the house. Every person who attends the open house should have a property disclosure, fact sheet and listing flyer when they leave.

_Ï Make the atmosphere inviting by creating a mood; play some soft music or light a fire in the fireplace. Draw back you window coverings to let in light, if you are in a quiet neighborhood and weather permits, open the windows. Make sure that you turn on all of the lights in the house, and turn off the television.

Ï Put a batch of cookies in your oven to slow bake or boil cinnamon sticks in water on the stove to create a "homey" aroma of welcome. Prepare a refreshment table; select an attractive design in paper plates, cups and napkins along with some "finger food," small sandwiches, cookies, bottled water or soft drinks to encourage buyers to linger and in the process discover more details about the house.

Ï You can also leave the questionnaire cards and pens on the refreshment table; the homebuyers will more receptive to giving your feedback after they have eaten. Remember to provide a waste receptacle.

Ï Help your prospects to interact with the house; encourage them to touch by leaving doors partially open, draping a tactile fabric like silk or velvet throw across the love seat or chair in the living room.

Ï Be prepared to greet "early birds," the home buyer who wants to be the first one to view the property usually has company; others who want to avoid the crowd. If you have scheduled your open house to start at 2PM, be organized and ready to start talking to prospective homebuyers at 1PM.

_Ï Invite the homebuyers that attend the open house to sign your guest book; Although you want to be as gracious as possible during the open house, you have to protect yourself as well. You have a right to know who has received information about the house.

Ï It is also a good idea to ask homebuyers how they learned about the sale of the house; this will help you evaluate which form of advertising was the most effective. Make sure that you have at least one friend or relative to greet the home buyers at the door, just in case you become involved talking to an interested home buyer.

Ï Use notes to provide information for your prospective homebuyers as they explore the house. If there are facts that may not be obvious, print cards and post them in an area that they are sure to see. For example if you have items in the house that are not included in the sale or if there is a room feature with a special history. In addition, you can use these cards to advise for extra caution, for example if the closet has a low ceiling or if the steps to the laundry room are steep.

_Ï Homebuyers will ask you a lot of questions about the house, be factual but keep praise of the house to a minimum. Remember that some of your audience has seen many houses, which they will be comparing to your property.

Ï Keep yourself available at all times so that you can walk through the property with prospective buyers to answer their questions and offer information about local schools, parks, transportation, shopping, places of worship, etc.

_Ï Remain calm and listen carefully to the questions and comments of the homebuyers to understand their reasons for wanting to buy the house. Focus on the homebuyers' information instead of your own; keep your personal reasons for selling the house private.

Ï If you appear anxious or disclose that you are under pressure to sell quickly, you may find that the prospective homebuyer uses that information against you and you many not get the purchase price you want.

Ï When a buyer expresses interest in buying, the first thing you need to see is their pre-approval letter from a mortgage banker. If the buyer does not have one, politely explain to them that you cannot discuss the terms with them until they have this document in hand.

Ï Many homebuyers attend an open house assuming that they can qualify for a certain mortgage when in reality they cannot. No matter how much they claim to want the property, technically they are unprepared, and it is in your best interests to emphasize the need for them to secure a mortgage pre approval letter before you begin discussing terms.

_Ï For the homebuyer with a pre approval letter who is ready to negotiate a deal, sit down in a private area and listen to their offer. Remember to keep your emotions under control and assume the impartial role of a third party; let the buyer show the excitement for the house. If you remain focused and calm, it will be easier to handle all the details of the offer of sale.

_Ï Once an offer is made, come to an agreement on the final price and terms of the sale. If the homebuyer has objections to any of the terms, listen attentively and ask the appropriate questions so that you can respond correctly. Remain responsive and flexible about the homebuyers legitimate concerns and in the case where you do not have the answer, assure the homebuyer that you will investigate the matter. Do your best to resolve any doubts that may be in the mind of your potential buyers to keep their interest high and their offer of sale moving forward to an agreement as quickly and efficiently as possible.

Along with the disclosures, fact sheet and property listing flyer, remember to give the homebuyers who attended your open house a questionnaire card to encourage feedback. You should also note of the buyers who showed the most interest in your home, even if they did not make an offer. Remember to thank them for attending the open house.

When the last prospective home buyer has left the house, take stock of the events of the day; if you received a bona fide offer, the ball is now in the home buyers' court; they must secure the financing to purchase the house. However, it is to your advantage to keep a sharp eye on the process; give your homebuyer a reasonable amount of time to secure the financing but set a deadline. In addition, communicate regularly with the buyer to inquire about their process.

If the deal seems to be lingering a little bit too long, you might want to ask the buyer if you can talk to their mortgage banker to help move the sale to closing. In addition, you can suggest the options that your banker outlined to you were open to individuals who want to buy your home.

When your buyer calls with the good news of secured financing, your next call should be to your lawyer to discuss closing the sale of the home. Sooner than you realize, you will be preparing to move into your new home and when the sale closes you will be ready to hand the keys of the house to its new owner.