Show & Sell*

Chapter Five

You remember 'Show & Tell' day in school – don't you? All the excitement from getting everything ready, and then the thrill of getting up in front of the class and bragging about your project, person, or demonstration. Hopefully, you'll get that same sort of excitement from this all-important phase of selling your own real estate in Tucson.

You're prepared. You’ve done all the research on comparable real estate. You’ve priced your home similarly to other Tucson real estate. You cleaned the house, made the appropriate repairs, and gotten it freshened up. Your sign is hung out front so that all passers-by can see and read it. And you’ve worked hard on researching and creating an alluring real estate advertisement. You've gone out of your way to tell everyone you know or run into that you’re selling your home. And now you wait until the phone rings, or the doorbell rings.

Phone inquiries
If you've done even a fair job of the previous tasks, your phone will ring! When it does, you need to know how to handle the calls: what to ask and how to get the caller to come and do a walk-thru.

You've done a lot to make your phone ring, and you don't want to lose even one chance at selling your real estate. Start by making sure that you will actually receive all of the calls. Don't let the phone be tied up for too long at a time. If you don't have call waiting, this might be a good time to consider getting it – at least until the real estate has sold. Make sure that all the people who live in the house know how to direct calls about the real estate. Taking all the real estate calls on one telephone is best – a phone at a desk, or someplace where you can have all of the paperwork gathered together in one location – for easy reference while you're talking. If only one person is assigned the task of actually talking to prospective buyers, then make sure that everyone else who might answer the phone knows what to say if that person is not currently available to speak.

Always try to take real estate inquiry calls in a quiet place in your house. Be sure that all the information needed is right in front of you, and well organized so that you don't have to make buyers wait unnecessarily while you search through papers.

Create a special calendar that will only be used to book appointments real estate walk-thru appointments. Make sure you allow adequate time between appointments – so that you don't have to rush anyone along. Some real estate buyers like to take their time, and see and inspect everything. How long you should leave for appointments largely depends on the size of your house, but an hour is a good place to start.

Promptly introduce yourself on the phone, and ask for the caller's name. This is not only courteous, but makes the call more personal. At a point in the conversation, offer to set up a specific time for them to come over and personally view the house. Offering two possible times is even better. "Well, Bob, I'd love to show your our home – how about Tuesday morning at 9 AM, or perhaps Wednesday evening at 7 PM?" Try to motivate them to come as soon as possible. If your home has been viewed before, mentioning this will help create a sense of urgency about viewing your house. In Tucson, real estate moves quickly, and buyers know that. If you are planning on hosting an open house, be sure to mention that. Buyers know that open houses move real estate more quickly, and so that will also add to the urgency of their visit and walk thru.

Some advice on booking prospective buyer appointments
Try to book several appointments on the same day. Some real estate agents prefer to leave an hour or so for each appointment, while others like them in 15 to 20 minute intervals. The closer appointments set the stage for one prospective buyer to be walking in the door – just as another is leaving the house. The idea is that the increased activity will create a feeling of urgency in your prospects. It might also help them to appreciate the 'appeal' of the house they're considering buying. Do they really want to loose the home to the nice couple that came out ahead of them? Or to the family that is heading in while they’re still looking around? You'll have to work all the angles used by professional real estate agents if you want to compete with the real estate agent who is selling the house (very similar to yours) right down the street.

By talking to your prospective buyers when they call, you can ascertain a bit about what they are looking for in their next home. Ask them questions about what kind of home they are looking for, and even try to get a feel for the price range. If you know that the caller absolutely wouldn’t be interested in your real estate, or if you determine that they simply can’t afford it, you shouldn’t waste time booking an appointment. Your time will be better spent on others.

You might ask the caller, for example, if they are currently selling their own real estate, or are they currently renting. When do they want/need to move in to their new house? Have they been pre-approved for a mortgage? If they haven’t been pre-qualified you might even ask questions about where they work, or how long they’ve been looking for a place, etc. Be very courteous, friendly, personal, tactful, and conversational. You don’t want to interrogate them, or put them off. Remember, YOU are the real estate agent for this property, and you want prospective buyers to like you and feel comfortable talking with you.

If you can get all or some of this information you will have a much better idea if the caller is really ready to buy your property if they’re interested. Many prospective buyers are really just looking – and have no intention of buying for quite some time – sometimes years. Collecting some basic information on the buyers will also tell you how much help they may still need to close a deal – if they like your real estate.

In many cases, you'll find that asking a few questions will weed out some callers who are not genuinely able to work with you to buy your property. Among other things, this will avoid the exasperation and disappointment of showing your home (too many times) to buyers who simply will not buy your real estate. Be sure to make notes about your phone call, and keep the information you gather for referral later – should they call again, or make an appointment to view the house.

Hosting an Open House
Sunday is Open House Day in Tucson – and other cities as well. See, that was easy – you already know what day you will host your Open House. Sunday makes sense, too. It is a relaxed day. The errands are done, and people can see the real estate during the day. It is a great day to find people in a buying mood. Most people have busy work-weeks, and trying to squeeze in an Open House can be difficult, and doesn't leave them in the right frame of mind for buying.

Again, take out an ad (or more ads) announcing the Open House. The newspaper is fine for this. Place your ad earlier in the week, so people can plan to attend. But also place it on the weekend days of the weekend you plan the Open House. Your Open House ad might read as follows:

OPEN HOUSE SUNDAY 2-4
1234 Tucson Street, Tucson
3 Bedroom, 2 bath Condo – Sensational Views! $133,000
Information: call Bob @ ###–###–#### (phone number w/area code)

In the Open House announcement/ad for your real estate, be sure to give an indication of what size and/or type of house you will be showing. Tucson Open House visitors are also accustomed to getting pricing in such ads. Also, you can add the area of town the house is located in, if you wish – such as northwest, or eastside. Especially in a real estate market such as the one in Tucson, this can be an important addition. These are the pieces of information necessary for most buyers who are contemplating going to view an Open House. You should also seriously consider listing a phone number in case an interested prospect can’t make it to the open house, or if someone has trouble locating the house.

An "Open House" sign (as well as the real estate sign) in your yard is also a nice touch. You should be able to find a sign expressly for this purpose at your hardware store, home and garden center, or discount store. They are very inexpensive. You may be able to pick up some good buyer traffic from any driving browsers as they cruise around your area looking for homes.

Now that your attention-getting advertising is done, get every aspect of the real estate ready for scrutiny. Most of the tasks of repair and maintenance have already been done in preparation for putting your real estate on the market. Some people, however, forget the last minute upkeep that can very strongly influence a prospective buyer’s perspective.

Final Preparation

 

Overall, everything should be tidy, clean, appear well kempt, and in working order. Amazingly, a burned out light or defective ceiling fan can ruin a sale! Ask any professional Tucson real estate agent and they'll tell you about that – and much worse!

The way your house smells to visitors (prospective buyers) is important. Some say to bake cookies, others to brew fresh coffee, and others say to boil potpourri. Take your pick – you could even use fresh flowers.

Will any or all of this help? In a word, 'yes.' Small nice touches such as cookies are nice, but a clean home is absolutely necessary.

It might help to properly prepare your home for interested parties if you consider that when prospective real estate buyers come through the house, they are not coming to admire your personal décor (something we’ll come to later), but they will certainly notice if your home looks as though they arrived the day BEFORE cleaning day, or if they may have interrupted the family in the middle of supper.

People will be looking for lights in each room, especially in the early morning, evening, and night. Table lamps and floor lamps tend to show houses better, but you should not allow a prospective real estate buyer to enter a dark room and fumble for a switch. Either have a lamp on in the room, or be sure to POLITELY enter in front of them and turn the light on.

Although it's not something to do lightly, you might even add some mirrors to a room – to increase the brightness and perceived size of the room. A bright, well-lit room is something that is almost always a sought-after feature. Also, clear the front of the fridge of excessive magnets, pictures and notes. You don't have to wipe it clean, but keep it reasonable – remember: tidy!

You might want to consider having children and pets staying away with neighbors, family, or friends while prospects are actually viewing your home (or during an Open House). The extra chaos and excitement might be too much for the visitors. Also, if they don’t like pets, it’s just best not to throw it in their faces that yours is a 'pet household.' You've GOT to cater to the Tucson prospective real estate buying market – not yourself. You're doing all these things to sell your home and make more money. You're not doing them because you agree with them or like them. It'll help if you explain it to the kids…

Financial Assistance
If you know someone who works in finance or mortgages, you might want to ask them to come by for the Open House, if you're having one. This way, if you do have an interested prospect, you can have them talk to your financial wizard to determine if they might be qualified for a mortgage, or possibly even to start the process right there.

Some (usually most) real estate buyers are not pre-qualified for their loan. Having someone to work out the figures for them can be a big bonus, not only in establishing the possibility of working with them, but in keeping a qualified prospect in the running, also. They may not know what they can actually afford to purchase, and consider this just a preliminary viewing before taking steps to get pre-qualified for a mortgage loan.

If you don’t have a financial friend, try to ask hesitant prospects questions about their income, debt and down payment. If a husband and wife are both working full time, have low debts, and can make a good down payment, encourage them to get pre-qualified, or make an offer subject to financing before your home is off the market.

What Not To Do…
Before you get too excited about the parade of enthusiastic buyers, be prepared for professional browsers. These people might be very complimentary, but are not likely buyers. Perhaps they are not really ready to commit, or they are just curious. Never mind. They will still give you traffic, and visible traffic will encourage the real prospects to make an offer.

If you believe that there are less-than-desirable features in your home, do not take extreme measures of hiding them. Small yard? Unfinished basement? Older wallpaper? You don’t know what your prospects see as bonuses.

Perhaps they don’t like yard work. Or maybe they only want the basement for storage, or have their own plans to build a workshop or add-on suite. Older décor may appeal to buyers who are eager to put their own stamp on the place, and would feel badly about paying for new paint and paper when the existing décor is brand new.

Don’t feel you must escort your real estate buying prospects out the door. Many people prefer some privacy while viewing the home they are considering buying. They may wish to go back and look more closely at certain areas. If they come as a couple or a group, there may be some discussion needed without your presence.

Invite them to continue to look around at their own pace. Be certain that you’ve given them a feature sheet with your phone number and the details of the real estate. If they are leaving without making a deposit, invite them to return if they’d like another look.

Dealing with Negative Comments
People who come through your house will undoubtedly make some comments about your house or yard that you don't like. Some people may rile you up with their negative comments. Accept this as their means of bargaining. They may feel that it is important to portray to you that they are not really that satisfied or interested in the real estate. This is often done with the hope that you will drop your asking price.

If you believe the prospects are really hiding a sincere interest, try to turn the tables. If they complain about the size of the bedrooms, remark how large the living room and kitchen are. If they suggest the home is too close to a busy area, remind them of the easy access to shopping and transit, or the rapid appreciation of the real estate in the area.

Even if someone really irritates you, just keep smiling. If they're interested, they will accept your blasé-faire attitude as confidence that the home is a good one. If you get defensive, it will be difficult to turn the situation to your favor.

When a young couple arrives and shows interest in the home, they may suggest that they’d be happy to make an offer but require the input of their parents. Do not waste your time sitting down with them to draw up the papers just yet. Tell them that you would love to talk with them and their parents after everyone has had an opportunity to view the home. Often times the parents input will alter the decision, and so it is not reasonable to make arrangements (or get your hopes up) before the parents have come and actually seen the real estate.

How to Talk to Prospects
Being friendly and likeable is crucial in creating a good relationship with prospective real estate buyers. Try to find points of interest that would appeal to the buyer by asking questions. The Tucson real estate market is teeming with houses, and personality and buyer relations may be the edge needed to sell your house against the competition.

Ask where they work, how many children they have, do they currently live in the area? These causal questions can give you an idea of what to feature. Will they be close to work, schools, parks, or transit? Is there plenty of room for the size of the family? Can you tell them something about the wonderful neighbors, shopping or schools?

You know your home better than any professional real estate agent ever could. Try to find the most positive aspects that each prospect may find appealing. If they don’t agree, at least the sale won’t be lost for lack of trying.

If you find a prospect who seems ready to make an offer, or shows sincere interest, don’t be shy. Offer to get moving on preparing some paperwork.

Ask for an offer. You may feel that an offer will be made when the buyer is ready, but making a large purchase, such as a home, requires a certain amount of courage. Your buyers may be very tempted, but need you to ask the question outright to move them to a decision. You don’t want a nervous buyer who may have never bought a home before to walk out the door and buy the home down the block just because an experienced real estate agent did asked the question. Don’t be nervous. If they want to make the offer they will likely feel relieved that you asked.

Approach them after they’ve had time to thoroughly tour the home, and discuss it privately among themselves. Ask them in a friendly tone “Would you like to make an offer? Perhaps we could sit down and discuss it right now”.

Negotiating
Don’t be surprised to be given very low offers to start. The buyers want a deal just as much as you want a profit. Don't be offended.

Take every offer into consideration. Drop your price in increments depending on how low the original offer was. If the original price was $150,000 and the offer is $135,000 you might want to offer $149,000. If the offer is getting close, try to split the difference. If you get an offer at $146,000 why not suggest a split at $148,000?

When you’ve met your threshold or you are firm on the original price you should still have some bargaining chips on your side. Perhaps they would like to have the fridge and stove, or perhaps the lawn mower included. If you are moving into a condo with appliances, you might find this a better deal than selling such things privately.

The trick is to NOT list these items on your feature sheet or mention them as part of the package. You may have several items you’d be happy to leave behind including drapes, a freezer or other items. You might also be surprised by what the buyer suggests. If you can part with it, and it seals the deal, then go for it!

Getting the Offer on Paper
There’s no such thing as a handshake deal in real estate. Make sure you have something in writing before they leave the house.

You have all the necessary documents ready thanks to your preparation with the lawyer. You’ve discussed the price and negotiated what stays. Now you can ask what down payment they have ready or when they think it will be ready.

Walk them through the contract, explaining it to them, just as your lawyer did for you. Fill in any subjects (you will review this information under the chapter on legal information) and discuss the deposit.

Never take cash for a deposit. Have the buyer make the check out to your lawyer. This money will be deposited into an escrow account. This will assure them that you will not have access to their money until the contract is settled. If the contract falls through, the lawyer will refund the money or give back the original check.

The deposit is to ensure the purchaser’s intention to go through with the contract. Taking a deposit is not required legally, but if it’s in the contract the buyer must provide it. You will have a lawyer to assist you if anyone backs out, but obviously that is not your first choice.

How Much Should the Deposit Be?
By asking for a substantial deposit – anywhere from 3-5% – you will not be running the risk of the buyer giving into ‘cold feet’ or opting to forgo the deposit and start proceedings on another home. Unfortunately some people don’t find a problem with staking claims on more than one property while searching for the best one. The deposit isn’t a legal requirement, so any amount will do.

If the purchaser cannot give you the full deposit at the time of signing, you can agree to accept several hundred dollars and include a clause which states that the deposit will be increased to a specified amount within 24 hours (or whatever you have decided). This will allow for the purchaser to make financing arrangements before placing the full deposit. If you feel the reason is sound, take the offer. You may not get a better one.

Obviously the buyer does not want their money tied up in case the financing doesn’t come through. If it doesn’t work out they will need the money to place an offer on another property, but you shouldn’t give them too much time or they may back out for any reason.