In today's discussion of 62 Helpful Hints for Maximizing Selling Profits I'll talke about Display & Negotiations/Contracts. Tomorrow's discussion will conclude this four-part series with Transaction Closing and Posession Coordination.
DISPLAY
Because people buy a home based on its emotional appeal, it is important to create an emotional environment when the home is being shown. There are several very important rules for showing a home. Those rules are:
1) Clutter: Remove as much clutter as possible. When a home is cluttered, or when it is packed full of furniture, it will appear smaller and more cramped for space than it really is.
2) Excess noise: The TV and radio should be turned off. Let the buyers talk free of disturbances.
3) Children and pets: Send children and pets outdoors to play. This will eliminate confusion and keep the prospect's attention focused on your home.
4) Light: Leave all drapes open for light and airiness. All lights should be turned on to give the rooms a larger appearance and cheerful effect.
5) Scents: The way a home smells will create, or distract, from its emotional appeal. To give a home an attractive smell, a homeowner can bake cookies, burn scented candles, heat cinnamon water or put vanilla on light bulbs.
6) What to say: Be courteous but don't force conversation with the potential buyer. They want to inspect your house, not make a social call. Never try to over sell.
7) Apologies: Never apologize for the condition of your home.
8) Emotions: Do not get emotional if a buyer says something negative about your home. If you get defensive or try to argue the point, only bad things will happen.
9) Features: Stay with the buyer but don't point out every little feature of the home. Allow buyers to think their thoughts without being constantly interrupted. Have the property's features written on a presentation sheet that can be handed to the buyer.
10) Questions: Answer questions honestly and briefly.
11) Don't negotiate: Don't discuss or negotiate price while the buyer if viewing the home. Let them decide if it is the right home, the one they want to purchase, before you begin negotiations.
12) Don't seem overanxious: If you want to get horrible offers on you home, act like you can't wait to get it sold.
13) Why you are selling: Buyers will ask why you are selling. Give the buyer an honest, but not too lengthy, answer. They are most likely trying to discover how anxious you are to sell the property. Their line of thinking is that if you are extremely motivated, you may accept a low-ball offer.
14) What you paid: While viewing your home, buyers will ask you what you paid for it. This is information the potential buyer doesn't need because it has no effect on today's value.
NEGOTIATIONS/CONTRACTS
1) Emotions: Never allow emotions to get involved in the negotiation process. Once emotions are involved, the negotiating process usually comes to a screeching halt.
2) Pre-qualification: Do not start negotiations until the buyer has a written letter of pre-approval from a qualified lender.
3) Earnest deposit: How much of an initial deposit is enough to make you feel comfortable with the buyer? If the buyer fails to complete the transaction, be specific as to what will happen to the deposit.
4) Forms: Be sure you have all the contracts, disclosures, forms and addendums required by your state and local governments. Understand well, and complete with extreme care, every one of these contracts, disclosures, forms and addendums. Because the amount of paperwork required to close a transaction has increased dramatically over recent years, a seller and buyer are wise to seek professional help in completing it. A few dollars spent at this stage of the selling process can save thousands of dollars in attorney's fees later.
5) Contingency offers: Exercise care with contingency offers. If you accept a contingency offer, one contingent on the sale and close of the buyer's home, consider including a time limited first right of refusal in the contract.
6) Contingencies in the offer: Consider time limits on all contingencies. (IE: Transaction close is subject to the buyer's approval of a home inspection.) Be sure the contract is written to remove all contingencies in the shortest time possible.'
7) Disclosures: Be thorough with all required disclosures in the contract. (IE: environmental hazards, non-permitted structures, zoning conflicts, HOA issues, flood and earthquake, geologic conditions, etc.)
8) Closing and possession: Being very specific in the agreement about the closing date and time of possession will eliminate many problems that can occur.
9) Closing costs: Be specific as to who is responsible for closing costs.
10) Limiting expenses: A seller would be wise to put a ceiling on the costs of required expenditures on corrective work that may result from the home inspection, pest control and other reports.
11) Disclosures: Be thorough, honest and accurate when completing all disclosure statements.
12) Home inspection: Consider having the buyer do a home inspection. It may eliminate, or at least lessen the severity of, a nasty lawsuit after the closing.
13) Final verification of condition: A buyer walk-thru just days prior to the close to verify the property's condition is often advantageous. It should be worded so as not to be a contingency.
14) Exclusions: Any item in the home that may be considered a fixture but will not be included in the sale should be excluded in writing in the contract.
15) Prorations of property taxes and other items: Be specific in the contract as to what date items will be paid and how all items that need to be prorated will be handled.
16) Home warranty: A home warranty can be one of the most inexpensive, effective and tension reducing insurances policies available anywhere. Consider providing a home warranty for the buyer. Be sure you and the buyer understand what coverage is provided by these policies.
We hope you find this informatin helpful. If you have any questions please don't hesitate to contact The Davidson Team today!
No comments:
Post a Comment