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A Step-By-Step Guide To Understanding How To Sell Your Own Home! And It All Begins By Outlining Your 4 Selling Goals! Introduction When selling privately you have actually decided to become the ‘real estate agent’. And to ensure you have a successful sale, you will need to implement the very same activities agents do to cause a sale. What Are Some of Those Activities? That’s what this presentation is all about. It will give you the inside knowledge of what agents really do when it comes to selling a home.
Step 1 - Your 4 Selling Goals When These Goals Are Realized You’ll Experience A Successful Sale!
Your 4 Selling Goals
Experience minimal discomfort during the marketing stages of the sale.
Sell your home at the highest possible market value price.
Eliminate last minute surprises that often cause a sale to fall apart
Sell your home in the fastest possible time frame without it negatively impacting price.
With These 4 Goals Addressed You’re Ready To Begin The Sale Process!
Step 2 – Success Facts Understanding The Success Odds? The Facts According to association statistics, every year 3% to 13% of homeowners nationally attempt to sell without employing the services of a real estate company. How Many Private Sellers Are Successful? Only 3% to 9% of those who try are successful when selling privately. (Failure rate is 91% to 97%) How Long Do Private Sellers Sell Privately? The average private seller will try to sell on their own for 37 days before hiring the services of a real estate professional. The Vast Majority of Private Sellers Eventually Hire A Real Estate Professional!
Sale Success Is Limited Why Are The Majority of Private Sellers Unsuccessful? Question: Price Were they asking too much for their home? Answer: No Private sales are generally priced at, or near, market value. Then Why Were They Not Successful? They failed because their marketing process did not attract a qualified buyer. Actually, marketing process is of more importance than is price. Implementing An Effective Marketing Process Increases The Odds For A Successful Sale!
What Is Marketing Process? It’s The Organized System Created To Increase The Odds For Success Question: Do you mean open houses, advertising, sale signs, etc.? Answer: No. Those are activities agents use to service homeowners. Activity and process are not the same. Then What Is Marketing Process? It is a system designed to solve the #1 problem sellers have – how to locate a qualified buyer for their home. This system is called the Multiple Listing Service, (MLS), and is proven to be the most effective home marketing process on the planet. The Marketing Process Called The MLS Is of Far More Importance Than Is Activity!
Activity Effectiveness The Truth About Public Open Houses! Less Than 5% of Homes Are Sold This Way Then why do some agents offer open houses to their sellers? There are two reasons. #1. Lack of Knowledge They are agents who do not understand the selling process of the MLS. #2. Buyer Prospecting They are ‘buying agents’ who use your home to meet potential clients who may buy another home, but not yours, within the next 6 months. An ‘Open House’ Is An Ineffective Activity When Compared To The MLS!
Activity Effectiveness The Truth About Office & Agent Open Houses! Less Than 2% of Homes Are Sold This Way Then why do agents hold these types of open houses? There are three reasons. 1. To check out competitive listings. 2. To train new agents in office. 3. To maintain accurate up-to-date knowledge of the prevailing market value for homes within the community. ‘ Office & Agent Open Houses’ Are Ineffective Activities When Compared To The MLS!
Activity Effectiveness The Truth About Advertising! Less Than 3% of Homes Are Sold This Way Then why do agents advertise? There are two reasons. #1: Name Recognition They must build personal name recognition with the public to ensure their success as an agent. #2: Lead Prospecting Buyers almost never buy the home they call on from a newspaper ad. Instead they inform the agent of their home needs. The agent then uses the MLS to match their needs to a home currently listed for sale. Ads Are Used To Source ‘Interest’ While The MLS Is Used To ‘Locate’ Buyers!
Step 3 - Buyer Facts All Private Sellers Absolutely Must Know! #1. First Time Buyers Their inexperience necessitates the services of an agent to assist them with the home buying process, financing obligations, offer contract to purchase agreements, and closing procedures. #2. Corporate Relocation Buyers Most are unaware of the area, have limited time to buy, and are often contractually obligated to use a certain real estate company. #3. No Money Down Buyers Agents do not work with these TV dreamers. Unfortunately most approach private sellers hoping to find one who is ‘desperate’ to sell at any price. Buyer Types Identity & Determine The Buyers Ability To Buy!
Buyer Facts All Private Sellers Absolutely Must Know! #4. Move Up Buyers – (The Best) Up to 97% of these buyers are actually sellers currently listed on the MLS with an agent for the purpose of selling their existing homes. After they do sell they become a move up buyer and use the same agent to find their next home. #5. Bargain Hunter Buyers They know private sellers are trying to save the real estate commission, so they demand a price reduction equal to the commission. The private seller nets the same amount of money as if he had listed with an agent. The private seller is no better off financially, plus they took all the risk and did all the work. Potential Negative Buyer Fact Criminals Posing As Buyers!
Step 4 – Sale Facts How Do Homes Really Sell? Up To 97% of Homes Sell Through The MLS! Why? There are four reasons. 1. MLS buyers have been socially educated to go to an agent to purchase a home. 2. MLS buyers are also socially educated to question homes selling through private sales. 3. MLS buyers are not comfortable or experienced with negotiating their own home purchases. 4. MLS buyers are under ‘time pressure’ to match closing dates! The MLS Is A Time Tested & Proven System For Locating Buyers!
Step 5 - The MLS Process 1. Your home is listed by a MLS real estate company. 2. Your listing is placed in the MLS system. 3. Agents on the MLS board receive your listing. 4. MLS agents have qualified move up buyers. 5. MLS agents show your home to these buyers. 6. Your home is one of many the buyer visits. 7. Agent discloses to buyer market value of your home. 8. The buyer then asks agent to place an offer. 9. Most buyers need financing to make purchase. The Buyer Is Guided By A Professional Through The Entire Purchasing Process! It Consist of 15 Unique Stages During a Successful Sale!
The MLS Process Let’s Continue Reviewing The 15 Stages of The MLS Process! 10. Buyer goes to lender for loan to buy your home. 11. Lender orders appraisal to confirm market value. 12. Lender finances upon appraised value or purchase price - whichever is lower . 13. The buyer purchases your home. 14. The sale closes at predetermined date. 15. You locate and then move to your new home. Your agent continues to work for you between the time you sign the selling contract and the actual closing date of the sale by ensuring the buyer has funding in place, title matters are in order and all documents are properly prepared. An Understanding of Agents Is Important Before Hiring An Agent To List Your Home
Step 6 – Agent Specialties The Difference Between A Listing Agent & A Selling Agent! 1. A Listing Agent - Works With MLS Buyers Deals primarily with homeowners. Invests in specific training on how to effectively list and then market homes to agents within the MLS system. A listing agent’s business is a mix of 95% homeowners and 5% first time buyers. 2. A Selling Agent - Works With Buyers Deals primarily with ‘first time’ buyers. Invests in specific training on how to effectively work with buyers. A selling agent’s business is a mix of 95% buyers and 5% homeowners. When Selling It’s Critical Your Hire A ‘ Listing Agent’ Specialist Professional!
The Listing Agent’s Role Will Your Listing Agent Personally Sell Your Home? Actually - The Entire MLS Board Will! Your listing agent is just one of many agents on the MLS board. The odds of your listing agent personally selling your home is extremely low. For Example: Your local MLS board may have 1000 agents. This means the odds of ‘your agent’ having the right buyer for your home is 1000 to 1. Then What is the Job of Your Listing Agent? Your listing agent’s job is to find that one MLS Agent who already has that one right buyer for your home. A Listing Agent’s Job Is To Find That One ‘ MLS Agent’ With The Right Buyer!
Step 7 – MLS Overview When Selling It Is Critical To Understand How The MLS Works! Your buyer will most likely come from another MLS agent and not from your listing agent, since this is how the MLS was designed to function. Your Listing Agent’s Job Is To Inform All MLS Agents About Your Home The Buyer Pool All MLS Agents Your Own Agent
Your Listing Agent’s Job Is To Promote Your Home To Other MLS Agents! That’s The Real Job of a Listing Agent! A listing agent’s job is to make sure other MLS agents know your home is for sale. Why? Up To 97% Of Homes Are Sold By MLS Agents! A listing agent’s task is to target MLS agents who have move up buyers, current sellers, with needs matching your home’s features, location and investment price. This is achieved via a communication strategy specifically targeting price range MLS listings. Homes Are Marketed To MLS Agents First And Then To Their Move Up Buyers Second?
Step 8 – Finding Your Buyer Understanding MLS Move Up Buyers Remember - Homes Are Marketed To MLS Agents First & Their Buyers Second! Let’s Suggest Your Home Is Worth $200,000 After you sell, you will most likely ‘move up’ to a more expensive home. (You are called a ‘move up’ buyer.) That’s The ‘Find Your Buyer’ Secret! The average buyer moves up 20% to 30% in value. How Do We Find Your Buyer? All we do is take your asking price and subtract 20% to 30% from the price. Then we go onto the MLS board and find all listings within that price range.
Let’s Do The Math & We’ll Find Your Buyer Home Value Estimate Is Your opinion of value = Top of Range Price Is Home value – (home value x 20%) = Bottom of Range Price Is Home value – (home value x 30%) = Your Buyer’s Home Listing Range Top __________ Bottom __________
MLS Agents Bring Sellers Who Just Sold Their Homes To View Your Home They Are Highly Motivated Buyers And they are under pressure to find, negotiate and purchase their next “move-up” home. What Pressure Is A Motivated Buyer Under? Time as they must match closing dates of the home they just sold to the home they must buy. And this time pressure creates the urgency necessary to purchase a home at full market value. In fact, they generally have only 14 to 30 days from the date they sold their home to find another home matching the required closing date. Only MLS Sellers Are Must Buy, Highly Motivated & Qualified Buyers!
I Have MLS Buyers Right Now Who Would Be Interested In Taking A Look At Your Home! When I Drop Over I Will Bring This List For what purpose? To discuss with you where these buyers are currently located and what must be done to ensure they know your home is for sale privately . My Promise To You! I will bring a list of who these buyers are to our meeting without any obligation on your part to list with me. I Look Forward To Our Appointment Margarita Swartz (267)872-3320