DIY Help

DIY Help

Posted on August 1st, 2006 Huis-Huis No comments

If, even after reading our opinion on selling privately, you’ve decided to have a go at selling your home yourself, you might find our DIY Help and hints usefull.

Selling Property Is About People

Selling a home is all about the people. The property will simply fulfill someone’s needs.

The above statement might seem like lunacy untill you really think it through. When you put your home in the market, you are actually shopping for a person with a need that can be fulfilled by your property, AND a person with the means to give you what you want in return for fulfilling this need.

Read our article on buying property to get an idea of the different motivations that might move a buyer to buy your property. Honestly ask yourself what kind of buyer would be interested in your property. This will help you target your marketing to reach those potential buyers that are most likely to buy the property you have to offer.

Remember to focus on the potential buyer’s needs in the marketing, advertising, showing and negotiations about the property. A private seller should be looking for the best compromise between meeting his/her own needs as well as the needs of the buyers.

Be “professional” in your dealings with potential buyers. A sense of hostility from the private seller may make the buyer less willing to compromise. Being too familiar with buyers might be an invitation for an unscrupulous buyer to take advantage of the private seller’s hospitality and inexperience.

Finding Buyers

Read our article on the subject of where buyers come from and design and implement a workable marketing plan. Buyers hunt houses, not estate agencies. If your property is properly marketed and the price is market related, the buyers will come.

>Real Estate Home Hub Network – HomeHub.Net A real estate portal website for Buyers, Sellers and Agents. Features FREE listings for both Agents and Private Sale Sellers. Up to 3 photos per listing, unlimited multiple listings per account constructed online!

Taking Offers To Purchase

It is not enough to stuff a blank offer form in a buyers hand and hope that they will come back to you!

Before or after every viewing, it is important to have a sit-down with the potential buyers. Invite them for coffee if you have to, but take a moment to talk to them. The kitchen- or dining room table is the best place for this.

This “sit-down” is buyer time. Refrain from speaking about yourself or your property. You want to know more about the buyers in front of you.

Ask questions about the buyers AND truly listen. You should be trying to establish a trust, but first you have to get them to like you. People are like people who are truly interested in them. Memorize a list of questions to ask, if this is not your strong point. Ask about their current home, their jobs, pets, parents, hobbies, sports, pet hates etc. This can take quite a bit of time, so don’t be in a hurry.

After building trust and viewing the home, sit down again. As them to give you their honest opinion of the property. Take notes.

Now take out the offer to purchase form. Don’t ask them if they would like to make an offer. Just start fulling in your own details. Now ask them how much they would like to offer.

They might want to discuss things a little more; do it! The buyers obviously have concerns about making an offer, so discuss it. If they are not interested in your property at all, they will tell you now. Let them know that it’s ok!

If they name a price, jot it down on a writing pad before filling in the space on the offer form. You still need to find out about the deposit, bond amount, occupation date and special conditions they want to add to the agreement. Discuss everything in detail.

As Private seller, you have to know the meaning and consequences of every clause in the contract that you decide to use. Go through the contract with the buyer. Summarize the meaning of each clause in a single sentence. Then allow the buyers some time to read through it. They don’t have to read it, but you have to allow them time to do so, if they wish.

Have the buyers initial every page and sign in full in the spaces provided, and get a witness to verify their signatures. Tell them that you will discuss the offer with your spouse or an advisor and get back to them as soon as a decision has been made. It is always easier to say no to a bad offer without the buyer present. Set it up so that you can shift the blame for not accepting an offer onto a third party, if needed. Proceedings can be kept much more civil that way. The last thing you want is an argument with a rejected buyer.

It would be wise to line up a willing neighbour to act as witness. It is safer to get witnesses that are not part of your family.

Buyer Qualification

Read our article on buyer qualification. Private sellers actually put the cart before the horse here. At this stage you are only interested in the buyer’s ability to get a home loan.

Now is the time for the really personal questions. Explain to the buyers that you need a bit of personal information to allow you to make an informed decision.

Don’t shy away now! Ask far all the information you need to properly qualify them. Ask for copies of their Identity Documents, pay-slips, financial statements and bank staytements if needed.

These documents are important if your contract allows you to apply for financing on their behalf. Always allow them three working days to apply for a home loan themselves, but if they don’t apply, contact a bank or bond originator to start an application.

If you don’t feel comfortable asking for such personal information, some good real estate agents will be willing to do it at no cost to you or the buyer. The banks actually pay them to do the dirty work for you!

Or you could ask your transferring attorney to do the paperwork on your behalf. And they often will be willing to do so at no cost, as long as they get to handle the transfer of ownership on your behalf too.

DIY Help

We hope that this information helps you in your DIY sale. Feel free to contact us with any questions or suggestions.