FSBO



CONTENTS

1. Rand’s Home Marketing Tips For “By Owners”

2. Pricing Considerations and Strategy

3. Staging Your Home For Sale (For Top Dollar)

4. Open House Tips

5. Sample Open House Guest Sheet

6. Tips For Showing Your Home

7. A Sample Estimate of Buyer Costs

8. A Sample Informational Flyer

9. Safety Reminders

10. Buyer Qualification

11. Negotiating With Your Buyers

12. Writing the Contract

13. A Sample Contract

14. A Sample Seller Disclosure Form

Rand’s Home Marketing Tips

1. Price your home at or just below market. (Be cautious not to overprice your home, this will cost you money.)

2. Stage your home for showings (See Rand’s information included)

3. Make an attractive, detailed flyer for your home. (Rand’s example)

4. Get a lender’s good faith estimate—using your sale price and showing several loan options. (see example in kit)

5. Put eye-catching FOR SALE sign in front yard. Color is great. (Never use hand written signs)

6. Place an information tube or box on or near the sign and keep filled with informational flyers about the home and how to reach you.

7. Distribute 100 flyers to neighbors. (Many times, your neighbors will know a buyer for your home)

8. Make up small ad cards with photos and place on bulletin boards (credit union, workplace, etc.).

9. Advertise on the internet—Many sites are available for home sales.

10. Place an ad in monthly publications such as Homes magazines.

11. Place an ad in local paper’s real estate section. Always advertise price, address and key features.

12. Hold open houses at regular intervals (Sunday afternoons are best)

13. Don’t be bashful about letting people know you are selling your home. You never know who might be looking or someone who is looking.

PRICING

Buyers compare 15 to 30 homes on average.

What are buyers comparing?

>LOCATION >PRICE

>CONDITION >TERMS

Price is the single most determining factor that motivates a buyer to buy.

Days on the Market Information

Days on Market % of Total Sales %of List Price

01-30 54.37 99.07

31-60 22.50 97.76

61-90 10.14 97.03

over 90 12.99 96.09

Fact: Realistic Pricing increases buyer interest, resulting in a faster and higher sales price.

PRICING

Q: How much is your home worth?

A: Only as much as a buyer is willing to pay.

To determine what a buyer is willing to pay, we must first look at what other buyers have already paid for similar properties in your area. We Compare this information and make adjustments for square footage, amenities, condition, location, terms, and other specific information. This data is used to provide you with a comprehensive “Market Overview” rather than just a market analysis. This helps you make the best decision regarding pricing your home to sell at top dollar.

Questions to help you analyze your pricing strategy:

Which improvements have I made that actually increase value? Which ones won’t?

Are my financial needs influencing my price?

Is my opinion of value based on actual neighborhood sales?

How many homes in this area are competing against mine right now? How does mine compare?

Have neighboring homes been on the market too long? Why?

Is the local market rising, falling or stable?

Is my original purchase price affecting my asking price?

Is my home consistent with the area?

What is my gain by buying up in the present market?

Are the benefits of moving important enough to price my home at market?

FACT: A Buyer is more LIKELY to make a realistic offer on a home priced right before making a low offer on a home that is price too high.

STAGING YOUR HOME FOR SALE

We have all heard that “You only get on chance to make a first impression”. In the sale of your home it is vital that your buyers have a favorable first impression. Your home is just another house for sale to a buyer, not a “home” until they actually purchase it. Your home must be packaged to sell to that buyer for top dollar.

There are six key elements to giving your home the winning look.

1. Keep it uncluttered.

It will be neater and appear larger. Kitchens and bathrooms make huge impressions on buyers. Wall space makes rooms feel bigger and floor space gives the impression of more spacious closets. Counter space helps too!

2. Keep it clean.

Let buyers know that your home has been well cared for. Fresh paint, clean carpet and a good scrubbing gives surfaces a fresh look. Manicure outside as well.

3. Keep it repaired.

Fix it before the buyer inquires about it. Think ahead of the buyer. Buyers reduce your price for potential repairs. If you think it is too much trouble to repair, the buyer will probably think so too.

2. Keep it neutral.

Get rid of distracting color and personal accessories. Neutral colors and simpler décor help buyers visualize their own belongings in a room.

3. Keep it dynamic.

Make your home memorable. From fresh flowers to fresh baking smells. Your home should be inviting.

4. Showtime!

Make a final check of every room. Put away toys, clothes or anything left out, turn on appropriate lights and leave the TV off.

We would be happy to provide you with a thorough walk through and staging tips at your convenience. We also have a video that helps you visualize your home and gives you hints on how to prepare it for successful showings.

FACT: Top condition gets you top dollar and a faster sale.

OPEN HOUSE TIPS

Note: Open houses can give your home some additional exposure and allow some prospective buyers a chance to view your home. Do not rely on open houses alone to get the job done. Less that 1% of homes sell at open houses.

Prior to your first open house, have available:

• open house signs

• guest register

• flyers, including financial estimates

1. Make sure that we have confirmation of your open house the Monday prior to the weekend of the open house. We will place an ad and indicate the time and address of your open house. We will also make certain that your supply of open house signs and information in the home is adequate.

2. Spruce up the yard the week of the open house. Cut the grass if needed, manicure all landscaping & meticulously edge driveway.

3. When the time for your open house arrives make sure to:

- place open house signs at strategic corners to guide visitors to the home easily

- turn all lights on and open drapes

- keep temp warm if it is cold outside and vice-versa

- keep the front door open; it invites guests in more readily, have guest register easily accessible (Don’t hesitate to make signing in a requirement for touring your home)

- have all information (i.e. flyers, utility bills, etc.) handy

- answer questions and provide insight, tours are not always necessary (You can often get a feel from the prospect)

4. After the open house, keep names and numbers to follow up with in the near future.

HOME SHOWING TIPS

Note: The impression your home makes on a prospective purchaser can have great influence on the chances of that person making and offer, as well as what kind of offer is made. If the buyer feels that the home was cared for and well maintained, it positively affects his or her overall attitude toward your home. First impressions are extremely important, so dress your home for success from the beginning.

The following checklist will help you accomplish a successful showing:

BEFORE:

1. Make sure the entrance to your home is free of clutter or debris and looks attractive. Potted flowers and anything that adds color helps. Buyers first opinions are developed at the entrance.

2. Open all draperies and turn on all lights. Make your home bright!

3. Turn on soft music – low volume mood music helps people relax while looking.

4. Make sure that your home is free of any odors, such as pets, cooking, etc. Potpourri, bread baking, etc. will emit pleasant odors.

5. Be sure that your home is clutter free and clean; also, windows should be washed, paint touched up, and children’s toys put away.

6. Make sure closed and storage areas are neat and organized.

DURING:

1. Ask the prospective buyer to sign the guest register, full names, addresses and phone numbers. (This will chase away “lookers” and allow follow up with true prospects).

2. Be present to answer questions and lead them through the home. Don’t high pressure them, but always ask questions that reveal their buying ability. Stand near the doorway, never in the middle of a room.

3. Provide flyers with details on the home and financial qualifications to buy your home.

AFTER:

Follow up with the prospect in a courteous and helpful way. Keep a running list so that each person can be contacted if any change is made to the price, terms or physical condition of the home.

SAFETY REMINDERS

1. Make sure you have adequate insurance coverage – liability insurance or a complete umbrella policy. Contact your insurance agent to let him or her know you are selling your home and ask about current coverage. (This is also a reminder to keep your home fully insured until closing.)

2. Make sure you always obtain a name and phone number from anyone coming through your home. Addresses are also great to get if you can.

3. Your FOR SALE sign will attract lookers. Make sure you have adequate lighting outside and make sure lights are on after dark.

4. Look carefully around your home – remove obstacles or clutter that may create a safety hazard.

5. Go through your home and put up all small items such as jewelry, etc. from accessible areas and place in a safe place.

6. Remove any rifles, handguns, etc. from accessible areas. It is always best not to display these items.

7. Use good sense about who you show your home to. If the individual is questionable or you are uncomfortable, take precautions or do not allow access to that person.

8. Beware of potential buyers who just knock on your door. Serious buyers will typically call first. Also, beware of potential buyers who want to look at odd hours. Don’t be bashful, ask questions.

QUALIFICATION

Before a buyer makes an offer on your home they should be either pre-qualified or pre-approved. There are scores of buyers out there who do not have the ability to obtain financing because of income, credit, job history, etc. There are also many buyers who do not have the slightest idea how much home they can qualify to buy. BE EXTREMELY

CAUTIOUS! Regardless if a buyer has a pre-qualification letter, consider the following:

1. Establish a relationship with a lender to whom you may want to send a prospective purchaser in order to establish qualifications. (We can provide several names of reputable lenders if needed.)

2. Always advertise price and terms. This will reduce calls by lookers who are not qualified buyers.

3. Always insist on a letter of pre-qualification from a lender prior to making the emotional commitment of looking at the buyer’s offer. If they are not pre-qualified, get them pre-qualified first.

4. Know the terms you are willing to accept and be aware of the various costs involved in different types of financing; VA, FHA, etc. before accepting offers.

TRUE PRE-QUALIFICATION IS A SPECIFIC PROCESS

1. First the buyer must complete a lender qualification worksheet. With this information, the lender has the buyer’s employer(s), salary, assets, liabilities, and can run a credit report. Now that the lender has the key information, it can be analyzed using the same criteria used by underwriters (the decision makers).

2. Now income qualification and credit worthiness can be determined. A complete estimate of buyer closing costs and down payment requirements will be provided. This information is not only to insure that the buyer can meet these requirements, but also to make certain the buyer has the amount needed to purchase your home.

GIVE YOURSELF THE BEST CHANCE TO OBTAIN A BUYER WITH LOAN APPROVAL!

NEGOTIATIONS

Only 1 out of 21 offers is accepted exactly as written.

First step: Prepare a Purchaser Agreement Analysis. This will allow you to consider your purchase offer objectively, not emotionally.

Second step: Carefully evaluate the positives and negatives. (Including the buyer’s qualifications. There are specific steps to protect you here.)

Third step: Prepare an estimate of your net proceeds to help you evaluate your financial position regarding the purchase offer.

Last step: If necessary, prepare a counter offer.

You really have two negotiating options:

1. Give them your bottom line immediately, and make them aware that you do not intend to play the negotiating game.

2. Play the negotiating game. Make sure you know the minor points of a contract, which can cost or save you thousands.

Based on Multiple Listing Service (MLS) statistics, homes in our area sell for about 97% of the asking price.

FACT: Good negotiation skills will never alienate the buyer and will never weaken your position.

WRITING THE CONTRACT

This is what you have worked hard for: getting to the point where you have an interested party. When you do or don’t do in this situation can determine both the success of closing and how complicated the closing might be,

1. Preview your contract form prior to putting your home on the market and certainly before you have to use it. Study it and make yourself comfortable with its use.

2. Obtain seller disclosure statements (state law), as well as lead based paint warning documents. You may need to present both of these to the buyer.

3. Every offer is different. Make sure all terms are clearly stated. Make sure all terms are spelled out specifically. Price, down payment, loan terms, earnest money all should be clear to all parties.

4. All contracts contain some contingencies – watch out for them and make sure you do not get boxed in by a contingency. Also, make sure the contract is not so loose that the buyer can bail with no recourse. State a deadline before which any contingencies, i.e. repairs, loan approval, etc. must be met. Beware of contingencies for the sale of other properties.

5. Make sure you have established deadlines for everything, such as acceptance of contract, closing date, possession date, etc.

6. Be sure to document anything being excluded from the sale of the home (i.e. special fixtures you want to keep should be removed before putting the home up for sale).

7. Make sure that you have limited liability for repairs. Never leave this open ended. Our new contracts promulgated for 1998 have no allowance for seller repairs, but give the buyer a certain time to terminate after the contract date. Pay special attention to this area.

Being knowledgeable and cautious with you sale contract will save you time, money and headaches as you proceed toward you ultimate goal: YOUR CLOSING

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