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Tips for Selling by Owner |
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Marketing |
| No one can buy your home if he hasn't seen it. No can see it, if he doesn't know that you're interested in selling and doesn't know how to contact you. You have to get the word out. If you want to find a buyer, you must let potential buyers know your home is available.
Everyone is a potential buyer. If the person you're standing next to in the supermarket checkout line doesn't want to buy your home, he may know someone who does. The elderly woman who sits next to you at church may not be planning to buy a home but, perhaps, her daughter or granddaughter is.
You should tell everyone you know and as many people as you come into contact with that your home is available for sale. Let them know that they should feel free to contact you any time if they might know someone who could be interested in buying. Make sure you give your telephone number and the time you're available to anyone who expresses an interest or who knows someone who might be interested. Make sure also that it's a telephone number where a message can be left if you're not available.
This "word-of-mouth" advertising is not the most effective marketing tool, but it's necessary as just one more arrow in the quiver that holds your marketing arsenal. Several other "arrows," none of which can be relied upon alone, come together to round out that arsenal: |
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Print Ads - Booklets - Flyers - Yard Sign - Open Houses - Internet Ads - MLS |
| Print Ads |
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Newspapers are the most popular medium for real estate professionals and FSBO sellers alike. About 8 percent of homes sold nationally are sold as a result of newspaper advertising. At Oregon's largest newspaper, The Oregonian, thousands of customers spend several million dollars for real estate print ads each year. By contrast, the paper's next closest competitor, The Real Estate Book, has about 300 customers spending in the neighborhood of $1.2 million. Any effective marketing strategy must include newspaper advertising.
Almost universally, newspapers have the greatest number of readers for their weekend editions. Because weekends are also when most people are available to look at homes that's when most real estate advertising appears. Although the cost to advertise in weekend editions is usually greater, sellers are most likely to get a far better response from a weekend ad.
One exception to this practice involves non-daily papers. Even papers that publish fewer than six times per week will usually run their real estate ads on weekends if they have weekend editions. However, a few very small papers, such as the Molalla Pioneer and the Canby Herald, publish the bulk of their advertising, including real estate ads, in mid-week editions, usually on Tuesdays or Wednesdays.
When writing ads, be as brief as possible but don't sacrifice clarity. Use only standard abbreviations, and be sure to include enough information to interest readers. Draw readers in, and make them want to see your home. Use active voice and descriptive verbs rather than lots of adjectives. You want readers to be able to use your words to see how your home could benefit them and to form a picture in their minds that shows them the finest attributes of your home.
Example
Customary: 3 br/2 ba, 1900 sf w/ den, great room and pool. 503-555-2222, eves. & weekends.
Better: Sun yourself & BBQ by the sparkling in-ground pool. 3 br/2 ba is an entertainer's delight. Rustic stone fplc. Skylights. 1900 sf. $179,900. James, 503-555-4444 days, 503-555-2222 eves. & weekends.
Always be sure to include the price in your advertising. If you don't, you'll likely end up wasting your time taking dozens of curiosity calls from people who have no ability or no intention to ever buy your home.
To make your ads stand out, highlight an important line or phrase with bold type. Never use all capital letters. Using all capitals takes lots of extra space and may often confuse the reader's eye, making your ad more difficult to read and causing your reader to pass it over.
The cost of a typical ad in the Homes & Rentals section of The Sunday Oregonian is about $100. |
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| Booklets |
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Booklets showcasing homes for sale along with photos are another form of print advertising that home sellers can use, although access to them is somewhat limited for those sellers trying to sell their homes on their own. The most widely circulated booklets limit advertising to that offered by real estate professionals. However, several publications have started up over the last decade or so that cater to FSBO sellers.
The most popular booklet available to FSBO sellers in the Willamette Valley is For Sale By Owner & Builders Magazine. This publication is published on newsprint in a tabloid format and can be found in the rack of free publications available at most supermarkets. Advertising costs range from about $395 for a 5-inch by 2-inch ad to about $995 for a quarter-page ad. |
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| Flyers |
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Part of getting the word out should include flyers distributed throughout your neighborhood, at all open houses and from a flyer box attached to your yard sign. Flyers are especially important for FSBO sellers. Because FSBO sellers don't have a Realtor® to field calls for them while they're at work or away from home, they need something else to take over this important function. Although a flyer can never make up for most of the things a
Realtor® does, a flyer can answer the primary questions that a potential buyer will ask such as price, square footage, number of bedrooms and so on.
Always be sure to include on your flyer a photograph of your home that shows the home in the best possible light. Having a picture to refer to later will allow buyers to make a mental connection to your home that will help them remember its attributes and what it meant to them long after they've seen it.
While some sellers think providing a photograph could negatively influence potential buyers, this is usually not the case. In fact, because photographs have become so commonplace in many kinds of real estate advertising today, many buyers will refuse to give further consideration to any property whose advertising doesn't include a photograph. The buyers figure that if the sellers didn't include a photo they must have been afraid to have people see the property, or they must have been afraid to remind buyers how the property looked. |
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| Yard Sign |
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A yard sign, in combination with a well designed and informative flyer, can be one of the most effective "arrows" in the FSBO seller's marketing arsenal. As such, great care and attention should be paid to the design and placement of a sign.
Surveys by the National Association of Realtors® have shown that most people looking for homes look in areas with which they're familiar. Many buyers select a neighborhood first, then go looking for a home. These buyers often buy their next home in or near the same neighborhood where they already live or work. More often than not, they learn of homes for sale by noticing for sale signs while they're driving through the neighborhood on errands, while going to or from work or perhaps even while actively searching for another home.
In order to attract the most attention, your yard sign should be professional-looking and should be as big and bright as local laws allow. Be aware that many cities and counties throughout the United States have ordinances that impose restrictions on signage. Courts throughout the country have said that such restrictions cannot usually limit what is said on signs, but the restrictions can limit such things as size, shape and placement of signs. Contact your city or county PLANNING DEPARTMENT for specific restrictions in your area. |
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| Open Houses |
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Holding frequent open houses is another of the more effective ways for FSBO sellers to get the word out. Real estate professionals understand that open houses are often ineffective as a way to sell a specific home. Only about 4 percent of the homes sold nationwide are sold as a result of an open house. However, open houses also allow sellers to network with people who may know others currently in the market for a home; and open houses are the best tool, other than a yard sign, to which FSBO sellers have access.
Open houses can be held any day and at any time, but weekend afternoons are most effective. To produce the best results, hold your home open as often as possible. Any time you find yourself hanging around the house, set out your open house signs and put on a pot of coffee.
Here are a few more tips for a successful open house:
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| Internet Ads |
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With the maturing of the Information Age, more and more buyers are turning to the Internet as a primary resource for property listing information. On-line listings are available for virtually every major market area on a variety of web sites that advertise homes, land and commercial real estate, usually accompanied by property features, terms of sale and a photo.
More and more buyers are turning to the Internet every day, mostly because of convenience. They find it much easier and comfortable to sift through photos and information on-line than to spend all day in the car driving from house to house. They can use the Internet to drastically pare down the number of homes they're considering. Then, they only have to physically tour their top choices.
Although only about 2 percent of buyers end up purchasing a home through Internet advertising, it's important to have an on-line presence in order to increase your home's exposure. Again, although each person who views your home on the Internet may not purchase it himself, he may know someone else in the market for a similar home. Anything you can do to increase your home's exposure can only help.
The top real estate web sites still do not accept advertising from FSBO sellers. However, owners can get some online exposure through web sites operated by their local newspapers or through web sites operated by "for sale" booklets or magazines, such as those mentioned above, that cater to FSBO sellers. |
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| MLS |
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While some home owners who want to sell their own homes may often be able to avail themselves of all the same marketing tools as real estate professionals, one to tool to which no FSBO seller has access is far and away the most effective marketing tool available anywhere--the local multiple listing service. Residential real estate professionals virtually everywhere in the nation today share listings of properties for sale with their competitors through multiple listing services.
About 50 percent of all home sales each year occur as a result of the home having been listed in an MLS database. Of the remaining 50 percent of sales, about 17 percent result from Realtor® for sale signs, and only about 4 percent are completed by owners and builders who choose to sell on their own.
While many buyers may begin their property searches in the newspaper or on-line, most buyers eventually end up working with a Realtor®, who can save them days and weeks of driving and pouring over ads by simply turning to the local MLSs complete and filterable database.
With the superior results an MLS listing can produce, many home owners just naturally prefer to save themselves all of the headaches, time and POTENTIAL LIABILITIES by hiring a Realtor®. These home owners find that while having an agent isn't free, it's well worth the expense in the long run and can even result in substantial COST SAVINGS. |
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Back to Help for Owner-Sellers |
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Showing |
| The key to presenting your property to potential buyers is to listen carefully and ask probing questions. Find out the buyer's needs, then point out the ways in which your property or neighborhood meets those needs. Be sure to point out the special selling points your home has that most other similar homes don't have. If a buyer doesn't like something you show or tell him, don't dwell on it. Be honest in your answers, but once you've answered, shift the topic to something else. And never argue!
Be sure to respond to buyer inquiries promptly and courteously, but avoid seeming eager or desperate. Return calls the same day you receive them, but don't apologize if you're not able to return calls within an hour or two. Don't call back the same day if doing so would mean having to call after 9 p.m. Many people are not accustomed to receiving late calls and so may be offended. They may be relaxing or even in bed for the evening. Similarly, avoid calling before 9 a.m., especially on weekends, unless the buyer specifically requests it.
If a prospective buyer isn't in when you return his call, be sure to leave a brief but polite message telling him the best time and method for reaching you. Give brief, general answers to any important questions he may have asked in his message to you, but try to avoid any negative comments about your property. Your goal is to get each prospect to keep his mind open about the condition, utility and aesthetic qualities of your home until he arrives to tour it. Once a buyer forms a negative opinion, you've lost him--even if that negative opinion is based on a vague comment rather than actual observation, and even if the buyer might not have formed that opinion had he seen your home before hearing the comment. FIRST IMPRESSIONS COUNT!
Remember, a person who has a negative experience with you may tell other potential buyers, thus reducing your home's exposure in the marketplace. A person who has a positive experience, even if he doesn't want your home himself, may promote it to others.
Once you've made personal contact, be aware that all sellers are required by law to tell buyers about most material conditions or defects in a home or property. Something that is "material" is something that would have caused a buyer to change his price or his terms of sale, or caused him to back out of the deal altogether, had he known about the something in advance. Sellers can later be held liable for such material facts, even if they didn't know about them, if a court believes that a "reasonable person" would have investigated and discovered these facts as a normal part of living in the home or preparing the home for sale.
It's impossible to compile a complete list of all facts that could be considered material in a real estate transaction because what's important to one person may be completely irrelevant to another. A few examples of material facts: that a property was once the site of a hazardous waste spill where there is no proof that the spill was ever properly cleaned up; that a property has problems with surface accumulation of rain water; that a home has a half-inch crack in the foundation, etc.
Sellers are not required, however, to tell buyers everything, nor should they. Divulging certain secrets will compromise a seller's bargaining position, resulting in a lower sale price or less favorable terms. Such secrets include the seller's reason for selling, where and when the seller is planning to move, the lowest price a seller will consider, and more.
Even some facts that could be considered material to some people are not required to be divulged and, in some cases, are prohibited from being disclosed. Oregon law specifically prohibits sellers from discussing whether an HIV-infected person lives or has lived in or near the home. Oregon law also excludes sellers from having to tell buyers whether a homicide or suicide has occurred in the home.
A seller who isn't using a Realtor® should consult a licensed and experienced real estate attorney in order to determine what information he must disclose and what information he should keep to himself. The stock real estate contracts and forms available for purchase at office supply companies and stationery stores can never replace the knowledge and advice of a qualified Realtor® or real estate attorney. |
| Back to Help for Owner-Sellers |
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Negotiating |
Negotiating a deal can be more difficult without having a skilled intermediary to act on your behalf, but it's not impossible. Following the general guidelines that many skilled negotiators use will help.
First and foremost, remember that negotiating is a process of "give and take." Only in the hottest of real estate markets are sellers able to get everything they want, and even then they may face limitations.
If you want something, you usually have to be willing to give up something, even if it's something small. Most people are ego-driven. They want to feel, at least to a certain extent, like they're at the controls.
If the price a buyer offers seems too low, counter his offer with a higher price but agree to one or two small concessions the buyer has requested. If price is the only issue, reducing the original price by some token amount, say $500 or $1,000, may be all that's needed to make the buyer feel like he won.
In talking with prospective buyers, always be diplomatic, no matter how you feel about the buyers personally or about any comments they may have made about your home or property. Don't try to explain why you like something they don't. Instead, tell them you understand why they feel the way they do. (You don't have to express agreement with them, just express your understanding of their feelings or concerns.) Taking offense with a buyer's remark serves no purpose and can ruin your chances for the best deal possible.
Always remember that to be successful, you must keep your emotions to a minimum. You may truly have the best house anywhere in the neighborhood; but remember that quality is a matter of perspective. All of the people out looking for homes may not be looking for the same attributes that you consider so attractive or useful. |
| Back to Help for Owner-Sellers |
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Closing |
| Closing is the process of completing a transaction, of having payment delivered to the seller while receiving title to the property being purchased. A real estate transaction is said to have been closed when payment and title have been exchanged and a copy of the new title, or deed, has been recorded at the office of the county clerk or county recorder.
In Oregon, the closing of a real estate transaction normally is completed with the aid of an escrow company. An escrow company acts as an intermediary to facilitate the exchange of money for the goods being sold, in this case real estate. The escrow company is neutral, meaning it has no stake in the transaction and is not beholden or indebted to the buyer, the seller or any other party in the transaction.
The escrow company collects the earnest money deposit, down payment and other payment proceeds from the purchaser but does not release the funds until it receives from the seller a signed deed to the property being purchased. The escrow company then records the deed with the appropriate county and delivers the original to the buyer at the same time the company delivers payment to the seller. This process helps ensure a trouble-free transaction by ensuring that all parties meet their contractual obligations.
Oregon law also allows real estate brokers and attorneys to provide real estate closing services; however, attorneys and real estate brokers who get involved in a real estate transaction usually do so at the request of, and as a representative of, one party to the transaction. Each may, therefore, have a stake in the outcome of that transaction, preventing him or her from being truly neutral. Escrow companies, on the other hand, will never represent any party to a transaction.
An escrow company simply takes instructions from the parties to a transaction and, when those instructions match, it carries them out. When the instructions differ, the escrow company holds back all goods and the payment being exchanged until the parties reach an agreement or until directed otherwise by a court or other legal authority.
Most title insurance companies operate neutral escrow services. The Oregon Insurance Commission and the Oregon Real Estate Agency strictly regulate these title insurance companies, providing buyers, sellers and lenders additional protection against fraud or other difficulties.
Whenever a property being purchased is to be financed with a conventional or government loan, the lender will require that the transaction be closed in escrow and that title insurance be purchased to protect the lender's interest in the property, which will be used as collateral for the loan. Title insurance is an insurance policy that gives financial protections, with certain exceptions, to the buyer and lender to ensure that they will be compensated in the event the buyer doesn't receive the proper title to the property being purchased.
Several competing title insurance firms serve Northwest Oregon. The policies and closing services they provide are similar. When choosing a title and escrow company, compare costs but also compare the level of customer service that each provides. Some companies will work harder to provide added flexibility and convenience for the customers in a transaction. Escrow officers for Pacific Northwest Title, for example, will at no extra charge travel to customers' homes or to
Realtor® offices in order to conduct signings of final loan and sale documents.
For more information about title insurance or closing services, please call me at 503-632-8258. Click HERE for my top picks for title and escrow services in Northwest Oregon. |
| Back to Help for Owner-Sellers |
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Additional Resources |
| Do you need to sell your home, but you feel you can't afford to pay a professional's fee? You have other options!
In order to save sellers money, I offer tiered packages of real estate services designed for do-it-yourself home sellers, with rates starting as low as 2.5 percent.
Homeowners trying to sell on their own can take advantage of my Basic package to advertise their home's details, complete with full-color, professional-style photography, on several excellent web sites that home buyers use. This service also includes other valuable home-selling tools. The home seller pays just 2.5 percent of the sale price* when the home sells. If the home doesn't sell, no fee is due.
Two other packages, including one tailored to do-it-yourselfers who need extra help, offer increasing levels of service and value. My competitively-priced Premier package offers the ultimate in real estate services and comes with a one-of-a-kind money-back guarantee.
Order a brochure detailing all three of my real estate service packages by calling 503-632-VALU (632-8258).
* For properties with prices above $300,000. Fee may vary for properties below $300,000. |
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Back to Help for Owner-Sellers |
| WEIGHING THE OPTIONS |
| Before choosing to sell without a professional representative, a homeowner should carefully study the answers to the questions below. If, after having done so, the homeowner is certain he possesses the time, knowledge, experience and resources to achieve the best price, negotiate the best contract, and avoid the legal risks and pitfalls of selling real estate, then he should give serious thought to selling on his own. On the other hand, the homeowner who has any doubt about how well he will do working without a representative, should call a Realtor® for an in-depth consultation about services and fees. It costs nothing to ask questions, and most homeowners find that what they pay in fee is more than offset by a better sale price, reduced risk, and less frustration. |
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Do you know how to ready your home for sale?
Are you knowledgeable in determining the correct price for your home?
Do you know the most-effective way to advertise and market your home?
Are you prepared to qualify a legitimate buyer?
Do you have the ability to negotiate the sale?
Are you prepared to field all of the inquiries and set and keep all appointments?
Are you prepared to make needed contacts with buyers' representatives and contractors?
Do you understand the steps that take place after an agreement has been reached? |
| Do you know how to ready your home for sale? |
| Only a Realtor® can make a host of suggestions, based on past experience, that will help you market your home and provide the most professional presentation of your property.
Back to Weighing The Options |
| Are you knowledgeable in determining the correct price for your home? |
| Realtors® have specialized training and experience that allow them to formulate comparative market analyses to help in pricing your home as accurately as possible.
Back to Weighing The Options |
| Do you know the most-effective way to advertise and market your home? |
| Using a Realtor® automatically gets your home exposure to the single largest marketing database and network in Northwest Oregon, the Realtors® Multiple Listing Service. Thousands of Realtors® already working with qualified buyers are using the MLS to find homes for their clients. Consequently, more than half of all sold homes sell as a result of being in an MLS database. Ultimately, most owners who try to sell their homes themselves end up hiring a Realtor®. Homes successfully sold by their owners account for only about 4 percent of all home sales. Additionally, Realtors® have experience and training that allow them to effectively use the media and other marketing tools to get the broadest possible exposure for your property.
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| Are you prepared to qualify a legitimate buyer? |
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A Realtor® can pre-qualify prospective buyers two ways:
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Determine the buyer's financial ability to actually purchase your home.
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Determine if buyers are genuinely interested in your home or just out on a sight-seeing tour.
Without having pre-qualified buyers, all you have are a bunch of strangers trouping through your home with who-knows-what intentions.
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| Do you have the ability to negotiate the sale? |
| Realtors® have experience in negotiations and in handling objections from buyers and their agents regarding price, terms and amenities of your home. Your Realtor® also has no emotional ties to your property and can therefore field objections more diplomatically and effectively.
Back to Weighing The Options |
| Are you prepared to field all of the inquiries and set and keep all appointments? |
| Through the use of modern technology, your Realtor® is always available, 24 hours a day, 7 days a week, to field inquiries regarding your property and to show your property according to the scheduling needs of the buyers looking for homes. This makes your home available to the broadest possible market exposure. You don't have to take time away from work, family or moving when you've hired a Realtor®. Your Realtor® makes sure all of the marketing and showing tasks are completed for you.
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| Are you prepared to make needed contacts with buyers' representatives and contractors? |
| Much of the work of selling a home doesn't even start until after a buyer has signed an agreement to purchase your home. In addition to the marketing, advertising and negotiating your Realtor® has already completed, he or she also acts as a go-between, making sure that title and escrow matters are completed, that tests and inspections are handled on time (and with your interests in mind) and that other professionals involved in the transaction meet their necessary deadlines.
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| Do you understand the steps that take place after an agreement has been reached? |
| A Realtor® will prepare a sales agreement that's enforceable. Realtors® are experienced in certain aspects of real estate law, and they understand closing costs and the process of title and escrow.
Back to Weighing The Options |
| If you would like any additional information to aid in your decision about marketing your home, please contact me. I am always happy to provide free consultations, and am thoroughly experienced at the pricing and marketing of homes throughout the North Willamette Valley. |
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