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As a for sale by owner, open houses should be the
cornerstone to your marketing plan to sell your home. No other way
is more effective in selling your home than to allow prospective buyers
to view it. To have a successful open house, check out the
following sections:
Open House Preparation
Rule number one: Buyers do not have an imagination.
Buyers almost universally see what is in front of them. They
believe, almost absolutely, what they can see. Therefore, it is
important to remember that how your home looks during a showing will
have a significant impact on the buyer’s decision to buy your home.
However, you should always be asking yourself, “How can I make my house
more saleable?” The answer lies in looking at your home objectively and
through the eyes of a buyer.
Rule number two: Buyers are looking for
excuses not to buy your house so don't give them one. As a buyer
walks through your home, he or she is looking for defects, hazards, or
issues that justify why buying your home isn't practical, especially for
the price you are asking. Make sure you remove any potential
objection or reason why a buyer would not want to buy your home--from
the foul odor emanating from the backyard to the burned out light bulb
over the kitchen sink. Failure to do so will result in losing your
buyer or having buyers present offers well below your asking price.
Appeal to the Buyer’s Senses
It is important to understand that all buyers, like
all human being, have senses. When these senses are stimulated, buyers
will experience either a positive feeling or a negative feeling about
the stimuli. Your goal in selling a home is to stimulate as many of
these senses as possible. If you can achieve a positive stimulation of
all the buyer’s senses, you can create an environment in which the
potential buyer will be motivated to buy your home.
Sight. The first and most important sense is
the sense of sight. When we talk about the sense of sight we are talking
mainly about the first impression that someone gets when they see your
home. Where the buyer develops a first impression is usually from the
street in front of your home. This is called “curb appeal.” Many buyers
will make up their minds whether or not they are going to buy a home
solely from looking at the front of the home when driving by. Have you
ever driven by a friend’s or neighbor’s home and told yourself that you
could never live there? In effect, you have formed an opinion about
their entire home by briefly viewing its exterior. The interior may be
breathtaking, but you would never know it. This is exactly what buyers
do. They drive by a home and try to picture themselves living in that
home.
First impressions are lasting impressions. Even if
potential buyers decide to walk through your home, any negative
attitude they have created will inhibit their ability to see the
positive features of the home. What can you do to make the best first
impression possible? Start by taking an objective look at your home from
the curb across the street. Ask yourself questions that demand critical
answers. Are the shrubs overgrown? Are there more weeds than grass/rock?
Does the landscaping stand out? Can you see your home from the street or
are there too many shrubs and trees blocking the view? Does the front
entrance stand out or does it look old, dirty, and in need of some
sprucing up? Can you read the house numbers from the street or are they
small, rusted, and falling down? The questions can go on forever. The
point is that you must look at your home as if you were deciding whether
or not to buy it.
The next step is to walk in your front door and
take an analytical look around. Are the blinds or shades closed, thereby
giving the effect of a dim, closed up, and possibly even musty room? You
want to make your home look as open, airy, fresh, and clean as possible.
This is achieved by opening the windows, shades, and blinds and by
turning on every light, even if it is the middle of the day. A home can
never be too bright. Check your light bulbs and replace them with 75 to
100 watt bulbs. If this is done throughout the home the buyers will see
a bright, open and delightful home—one they would enjoy living in.
For more information, read the sections on
Outside
Preparations and
Inside
Preparations.
Touch. When we talk about the sense of
touch, we are mainly talking about the cleanliness of your home. Buyers
will instantly be turned off when they walk face first into cobwebs or
step into a puddle that a pet has left behind. For some reason these
buyers are not too interested in the amenities of the home during the
remainder of the tour. Also, be aware of the collection of dust that is
piling up on your furniture. If you are interested in getting top dollar
for your property, you should take the time to inspect your home for
spider webs and any other detractors that could turn a buyer off.
You should also be aware that it is almost human
nature for people to touch things. Many times buyers will run their
fingers along the countertops or over the front of refrigerators. Be
sure to wipe off any lingering fingerprints, food or dust from your
appliances, countertops, walls, light switches, and telephones.
Smell. When purchasing a home, the sense of
smell plays as important a role as the sense of sight. Nothing ruins a
sale faster than an obnoxious aroma permeating the walls of a home. By
the same token, few things are as pleasant as walking into a home that
smells fresh and clean.
During the open house, go as far as baking an apple
pie, cookies or even putting a pie tin with cinnamon and butter in the
oven. Often times, smells of baking will transport buyers to the days
when they were young and used to travel to their grandparents’ home for
the holidays. Another alternative is to use potpourri, scented candles
and scented sprays. Be sure not to overdo it. More importantly, stay
away from the use of incense. This often leads to a negative impression
about the home and especially the habits of the seller.
Do something rather than nothing. A bad smell might
just ruin your day. But try not to overdo it. Choose how you are going
to enhance the smell of your home and stick with it.
Taste. The sense of taste is one that you
might not think has anything to do with the purchase of a home. In many
ways that is true; however, freshly baked desserts and coffee or cold
drinks available can cut through much of the formalities that are
associated with the establishing a rapport with a buyer. Offer buyers
something to eat or drink after they have toured the home. This gives
you the opportunity to get to know their feelings about the home and
their motivation for purchasing. Anything that compels a buyer to linger
in your home might be a successful tool.
Hearing. Have you ever entered someone’s
home and had so many distractions that you could not collect your
thoughts? For example, the dog barking, the TV blaring, the kids
screaming, the phone ringing, and someone knocking on the door. When you
are showing your home, you should try to generate the least number of
distractions as possible. Have the family go out for the day. Turn off
the TV and turn on some soft music. Most people would rather hear the
birds singing than the kids screaming.
Open House “Must Haves”
Giving the buyer information about your home and
what it will take to own it is just as important as preparing the house
for your showings. How the home shows will create a buyer’s first
impression; however, what they have when they leave and the information
you provide to take home with them will play a crucial role in whether
they decide to return for a second look or to make an offer.
Sales Flyers—your last and most effective
marketing tool. Successful sales flyers try to impact upon the buyer’s
emotions. You will want to state the basic features of your home:
property address and phone number, the fact you are selling the home “By
Owner,” number of bedrooms and bathrooms, square footage, other key
rooms throughout the house, type of heating and cooling systems, etc. In
addition, be sure to highlight the key amenities of the home: items such
as a fireplace, pool, spa, hardwood floors, walk-in closets, ceiling
fans, water softener, located in a particular school district, etc.
More importantly, be sure to include color photos
on your sales flyer. When looking at the competition’s flyers (if they
have some), you will notice how drab and dreary they look—typically a
black and white photocopy where someone attempted to be a graphic artist
with cheesy graphics and a “blah” design. A successful sales flyer will
jump out from within a stack of various flyers. Ideally, include three
color photos of your home: 1) a front, exterior view of the home, 2) an
interior shot of the most striking room of the house, and 3) an exterior
view of the backyard (an additional interior view should be substituted
if the backyard is not very appealing). Insure that you have cleaned the
house/exterior before taking your photos. In addition, turn on your
interior lights to guarantee proper lighting and exposure.
Practice using descriptive words and adjectives
when you describe your home. Instead of talking about the kitchen area,
talk about the work-saving, efficient kitchen. Instead of saying that
your home is in a nice location, describe it as being in a convenient
location with easy access to all amenities. You do not have a garage
door opener, you own a time-saving, convenient, and practical garage
door opener. The list can go on and on. Finally, avoid using words like
“very” when you are selling benefits. There are so many words in the
English language that are better suited to describe the way you feel
about a particular item. If you need any further help, consider picking
up a thesaurus at a local bookstore. For more information,
click
here for more information on FSBO flyers.
Financial Matrix—the home buyer’s analysis.
One of the most asked questions regarding home buying (outside of the
basic questions of the home) are about being able to afford the house.
Buyers will ask themselves, “What would the monthly payments be on this
home?” or “How much do I have to put down in order to buy this home?”
Most home owners do not know the answers to these and other questions.
However, not having the answers to these questions will leave doubt in
the buyer’s mind that they cannot afford the home. As they are viewing
the showing, many buyers will find reason to justify why they cannot
afford it and pick apart every aspect of the home that they can find
fault with. This is definitely not what you want going through the
buyer’s mind and once they leave through the front door, they typically
do not show up again.
Your task as a home seller is to show your
potential buyers just how easy it is to afford your home. As soon as
someone walks into your house, give them a copy of the financial matrix.
This will give them the answers to their financial questions—down
payment, monthly payment, closing costs, etc. That way as they are
walking through your home, they are focused more on the house itself,
not the financial burdens of owning it. They can see the home in more of
a positive perspective, dreaming of the home’s potential for them.
Self Prequalification Test. The third item
you will need for a successful open house is a self prequalification
test that allows the potential buyer to prequalify themselves at their
own leisure. This tests asks the buyer a series of questions necessary
for qualifying to buy your home and indirectly shows them just how easy
it is to buy your home. Unless the buyer has already been prequalified
for a home loan, make it easy for them to buy your home by showing them
how easy it is to qualify to buy your home. Be sure to place it in a conspicuous place in
the home (a kitchen cabinet or bathroom mirror). That way, they are
guaranteed to read it.
Sign In Sheets. In light of the many
security hazards that are present when showing your home, it is vital
that you keep a written record of everyone walking through your showing.
You must insist that everyone that wishes to view the home sign in
before walking through. By doing so, you have a list to give to the
police should an item be broken or stolen. Equally important, your list
should give you only the names, addresses, and phone numbers of your
“potential buyers” so that you can follow up after the showing to try to
overcome any objections and close the sale of your home. Follow up is
crucial in any type of sales and as a seller, it is important that you
get their feedback about your open house and everything it has to offer.
Appraisal Report and/or Market Comparables.
Many savvy sellers will have available to their open house guests a
listing of recently sold home or an appraisal (if they had one done
recently) to show how they arrived at their asking price. By having this
information available, a potential buyer is reassured that the asking
price is justified and not an arbitrary number made up by the seller.
Property Disclosure Form. Though not
required for an open house, a property disclosure statement allows
potential buyers to analyze the condition of the home they are viewing.
Many people fear buying resale homes because of hidden or undisclosed
defects with the property. By having this information available during
your open house, buyers can see for themselves how well you have cared
for your home and are able to make an informed purchasing decision
without the fear of buying a “lemon.”
Blank Sales Contracts. You never know
when someone will be ready to make an offer. Don't give them an
opportunity to think it over because chances are they will pass on the
deal and you will have to do it all over again next weekend. Also
have any additional contract forms that you may deem necessary.
These forms may include pre or post possession agreements, access to
premises agreements for the buyer, contingency addendum (such as having
to sell a home before closing, etc.), and other forms and disclosures
that you must include by law with the purchase contract.
Open House Security
Many sellers have the false impression that they
are required to let everyone in to their home during an open house.
Though it is a good practice to show your home to as many people as
possible. However, you do not have to let just anyone in.
I'm not talking about excluding a person or a group a people based upon
their race or ethnicity. Rather, use your judgment when allowing
people to walk throughout your house.
When conducting an open house, follow these rules
to avoid any potential security problems:
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Don't tempt people to steal something. Secure
anything of value, such as jewelry, guns, cash, coins, prescription
drugs, etc. Don't hide them in obvious places such as a jewelry
box or sock drawer. The safest place to store these items is in the trunk
of your car. If this is not feasible, at least hide them in less
obvious places (i.e. under the trash liner in the trash can in the
bedroom, hidden in shoes in the closet, etc).
-
Put away receipts, bills, and credit card
statements. Don't leave anything out that can be copied, pocketed,
or stolen.
-
Don't talk about the valuables you do have.
Though this may seem pretty obvious, every now and then a seller will be
proud of something expensive (such as a rare coin or stamp they just
bought at auction) and say something in passing. Also, don't
discuss your living habits, your schedule and even your lifestyle.
The more a stranger knows about your habits, the easier it is to predict
when you are home and when you are away (besides, what does your
personal life have to do with the sale of your home?).
-
Have everyone that visits your open house sign your
guest register. Some sellers go as far as requiring picture ID
(though I would say this is more of a judgment call on the part of the
seller). If someone is not willing to give their name and address
(and possibly their phone number), don't let them in. If this
happens, ask yourself this--How serious of a buyer is this person
refusing to sign in? Chances are they are not very serious and in
many cases are only there to check out what you have.
-
Never have an open house by yourself. It is
always a good practice to have two people there--one person to great
incoming viewers and another to shadow other people walking throughout
the home.
-
Always make sure people are accompanied throughout
the house. Never leave people to wander by themselves.
Though you have to make sure you don't hover over them (people like a
little space), it is always important to make sure they know you are
there (besides, this allows you the opportunity to answer any questions
they may have if they come up).
Showing the Property
Before opening your door to the world, be sure you
are ready to show. As mentioned previously, the key to a
successful open house is preparation. Take a few seconds to race
throughout the house and double check each room, making sure the lights
are on, the windows are open, and that everything is in place.
Approximately thirty minutes before the open house
starts, place your directional signs (the smaller signs that say "OPEN
HOUSE" with an arrow to direct traffic) at major intersections in your
area and lead people to your home. Generally this requires four or
five signs (especially if you place a sign on each side of a busy street
to direct the traffic your way). Be careful of local sign
ordinances that may restrict sign placement (such as placement in a
right-of-way, on sidewalks, or on other people's property). As
stated in
For
sale signs section, be sure to purchase professional looking signs.
Hand crafted, magic-marker-colored signs might be okay for a garage
sale, but your signs should portray you as a professional selling a
quality home. Also, turn on the sprinklers for about 30 minutes to
give the grass a little sparkle.
As people stop by your home, greet them with a
friendly "hello", hand them a sales flyer detailing the home, and have
them sign your guest book. As they are filling out the register,
highlight the major features of the home to include:
Have someone accompany them throughout the house.
As they walk from room to room, point out the strong points for each
space. Give them adequate time to view each room and refrain from
intruding into their conversation among themselves.
Most importantly, do not hover. Allow them enough room to feel
comfortable talking among themselves while letting them know you are
still there.
To be truly effective during your showing, you and
those assisting you with the showing must be prepared. Be sure to
review the following before the open house:
-
Know the home: the types of appliances in the
home, the types of services (i.e. gas, electric, water, etc)., the
features of the home
-
Know the neighborhood: the area schools,
local grocery stores, parks, shopping malls, crime rate, etc.
In addition, emphasize to everyone involved in
conducting the open house that
they should be polite and friendly--even if someone says something
negative or critical about the home. Avoid arguing with people
coming through the open house. You may win the argument but you
will lose the sale. If you or anyone else is asked a question, be
truthful about the answer. Avoid exaggerating or embellishing your
answers and if you don't know the answer to a question, tell the buyer
you do not know. Just let them know that you can call them later
with the answer (assuming they wrote down their phone number in the
guest book).
For more information on handling objections and
negotiating a contract, read the section on
FSBO Negotiating Basics.
Expect real estate agents to stop by your open
house. Regardless of the fact that you may or may not want to
speak to an agent, be friendly with them. If you are not
interested in what they have to say, tell them that you are in the
process of selling the home yourself and that if you need the services
of an agent, leave a card so that you may contact them when you are
ready. For more information on the games that agents play,
click here. Remember, agents are in the business of finding buyers.
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