|
SHOWING
Once the phone starts ringing, you should be fully prepared.
As a side note, make sure that your phone is always answered when
you’re trying to sell your home. Answering services and
machines are inexpensive and are necessary. The message on a machine
should go something like this “ You have reached 555-5555.
I’m sorry we’re not available to take your call. If you are
calling about the house for sale, please leave your name and number
and we will call you back. Thank you”. Do not have children on
the answering machine; this is only cute to parents and grandparents.
When buyers ask to see the home, make sure you get their name and
phone number. If some emergency should arise that would prohibit
you from keeping the appointment, be courteous and call them.
This also allows you to keep a list of people who have toured the home
and a way to contact them should you need or want to later.
While you have them on the phone, find out how they knew your house is
available and ask them a few questions. Find out if they’re
local or from out of town; do they have a home to sell before they can
buy a new one; have they pre-qualified with a lender. There are
ways to ask these questions and not be intrusive and you should
practice how you’re going to do it. Finally, be prepared for
the ultimate question from a buyer “Why are you moving?”
Chances are you’re moving for the same reasons they’re moving.
You’ve outgrown the house, the house is too big since the children
grew up, the drive to work is too far, etc. Your response to the
question should not be negative. It should be simply that the
house is great but for whatever reason, your needs have changed.
Assuming your home is in a “state of readiness”, you can begin
to set appointments and show your home. Make sure you set the
right atmosphere for the showing, calm and relaxed. Some home
sellers will bake bread or cookies while buyers are viewing the home
because the aroma is warm and comforting. Fresh flowers, if
possible, are a nice touch. The house should be well-lit, no
dark halls or rooms. Children, when possible should go to a
friends house, or visit a neighbor. If the children are in their
room watching television, then your buyer may feel intrusive and
that’s not what you want. Also if your prospect has children
with them, they will feel that they’re invading on another child’s
territory. Pets should be confined and for the most part, out of
sight because they can be distracting.
Many sellers will let buyers simply roam the house, but most prefer
a guided tour. This provides the seller an opportunity to point
out the many qualities of the home. Try to remember what first
attracted you and convey that to your prospects. Talk about what
has been updated or recently replaced, emphasize how well you’ve
maintained the home. Discuss the advantages of the location, the
neighborhood, close proximity to schools, churches, parks and
shopping, etc. You want your prospect to envision living in the
home and whatever you can say or do to make this happen, you should.
Hopefully, you’ll hear back from buyers who have toured your home
but don’t always count on it and don’t be discouraged when you
don’t hear from them. If you haven’t heard from them, you
may want to wait a couple of days and give them a call. Simply
ask if they’ve decided on a home yet and if not, is yours one
they’re considering. This gives the buyer the opportunity to
tell you why your home will or will not work for them, i.e. too big,
too small, etc.
NEGOTIATION
A deal is successful when both you and the buyer are happy with the
terms. The negotiation process should be friendly and
non-confrontational. After all, you’re both winners... they're
getting a new home and you're able to move on.
Presentation of an offer
The presentation of an offer/contract can be handled several ways.
It’s preferable that you contact a real estate attorney to help you
review, prepare and negotiate the offer. Many real estate
attorneys will assist you with this task at no additional cost if they
are the attorney used for the closing. Y ou and the buyer can meet and
discuss the offer face-to-face before it’s in writing. Simply
discuss each of your needs and come to an understanding. Then
contact a real estate attorney to prepare the contract based on what
you and the buyer have discussed. If an offer has been prepared
and presented to you, then you can either review it alone and make the
decision, or contact a real estate attorney to assist. If your
prospective buyer is working with a real estate agent and you have
agreed in advance to pay a commission, the agent will present the
offer to you and you negotiate with the buyer’s agent. If your
prospective purchaser is working a buyer’s agent or an attorney,
keep in mind they are working for the purchaser and not you.
Best advice - hire a real estate contract attorney to handle the
negotiations on your behalf.
Once an offer is presented, you can (preferably with the assistance
of your real estate attorney):
lAccept the offer as is, sign it and
it becomes a binding contract.
lCounter-offer back to the buyer by
making changes in the offer and initialing the changes. The
buyer has the option of walking away if the changes are unacceptable
but negotiations have been re-opened.
lDecline the offer – this should
not be an option. You should at least make a counter-offer.
Many issues can arise during the negotiation but it’s worthy to
discuss a few that you should understand and be prepared to handle.
If you’re wise you will have the consult of a real estate attorney
but ultimately the decision is yours.
Buyer offers a low price
If the offer is low or not within the range at all, counter offer a
little below your asking price. Be prepared to go through
several counter offers. You may ask the buyer how they arrived
at their offer. It’s possible that the buyer may have done
more research than you and have good evidence that your price is high.
If this happens then you’ll eventually have to drop your price - no
matter who buys the property. If the buyer tells you this is all
they can afford, then very likely they are not really qualified to buy
your home so don’t spend a lot of time negotiating.
Buyer has a house to sell before they can buy yours
Accepting this contingency has many pitfalls and if possible
you should try to avoid accepting an offer with this contingency.
Your first response should be to suggest to the buyers that they get a
bridge loan or swing loan. They will need to qualify to carry
both houses at the same time. If they can qualify, you can
extend the closing date on your house to give them the time to sell
their house. That way, they have the time they need and you have
a guarantee that they will close on your house regardless if they sell
their current home. If they can’t qualify but it seems
reasonable to you that their house will sell and these buyers seem
like good prospects, you might consider taking the offer, but
including a "kick-out clause". A “kick-out clause”
means that you continue to market your house, and if you get another
offer, the first buyers will have 24-48 hours to prove that they can
perform on their contract without selling their current home, or they
get "kicked out". They will get a return of their
earnest money deposit. You are then free to negotiate with the
new purchasers. Anytime you accept a contract with a contingency, it
should include a time frame for the satisfaction of the contingency,
even if you have a “kick-out clause”. In other words you
could allow the buyers 45 days to get a firm contract on their house
and 45 more day to close. We strongly recommend that you hire a
real estate attorney when you are dealing with complicated situations
such as this because if you exercise the kick-out clause, you must
make an agreement with the newest purchasers that their contract is
contingent on the first buyers being released.
Buyer wants to do a lease-purchase, also known as a
lease-option
This means the buyer wants to rent the property for a period of
time and then purchase it during or at the end of the rental period,
which is when you get your money. A lease purchase is often used
to sell less desirable properties or to sell properties in a slow
market. It is also used in lieu of other contingencies. If
a buyer has a house to sell and can’t qualify for a bridge or swing
loan, a lease-purchase can be a good solution. Do not attempt
this transaction on your own, hire a real estate contract attorney to
prepare the forms and manage the closing.
The offer is contingent upon the buyer obtaining
financing
This is very standard, most people do not pay for a house with
cash. But there are certain elements that sellers should avoid.
Generally, you should not enter into a contract that is contingent on
the buyer receiving a certain interest rate and points. Let the
buyer know that it is fine for them to shop around to get the best
mortgage terms, but that the contract must say that that they will
take "market" terms. This means that the buyer can’t
get out of your contract just because interest rates go up - unless
they no longer qualify for the loan.
Buyer has too many personal property items in the
contract
If it’s not nailed, fastened or attached to the house, it
is not included in the sale unless the buyer has made special
provisions for it in the contract. Buyers and sellers must be
careful because if there are too many valuable personal items in the
contract, the mortgage lender may deduct the value of these items for
the purpose of the mortgage.
Sale is contingent on the house passing inspection
A home inspection is not an appraisal and it is becoming common
practice to see this contingency in contracts. The purpose of
the home inspection is to disclose the condition of the property to
the buyer. In many states, disclosure by the seller is required
by law. Sellers may opt to have an inspection before the home
goes on the market. This conveys to the buyer that you are
selling a structurally and mechanically sound house. Regardless,
a prudent buyer will require an inspection and you should expect it.
|
