"Staging your home" is a real estate concept which refers to organizing the physical characteristics of your property to show off its best advantages. The most important item to be considered as you prepare to stage can best be summed up by the following comment;
"The way that you LIVE in your house,
and the ways you SELL your house are two different things"
What you need to prepare to do, is to basically turn your house into a museum - not necessarily a comfortably place to live. Now is the time that all those "normal" things change. The refrigerator is stripped of photos, finger painting and lunch menus, the Magazine rack next to the toilet disappears, 2 of the six dining room chairs go down in the basement and the leaf comes out of the table, the coffee table becomes home to nothing but Windex. Basically, the house becomes a showpiece.
You probably already know what needs to be done; however, I am available to take a quick tour of your home and give you a few ideas learned from my real estate experience. I have prepared a seven page report on things to consider and review. If you would like a free copy, just .
SKING THEM TO BUY
When it comes to negotiating, this is probably the most difficult area for most "For Sale By Owners". If there is more than one person selling, don't allow any friction to be shown in front of the buyer. This can seriously "turn off" a good prospect.
The best time to enter into negotiations is when the buyer is in the house and "eyeball to eyeball" with you. So try and have the person who is most comfortable with this phase do the actual showing and demonstrating of the home. And, remember; always ask the prospect to buy. Don't wait and let them tell you they'll call you. Ask them before they leave.
Always make sure that ALL people involved in the Home Buying process are there. Far too often, one spouse will be all excited about buying a new home, and the other doesn't even know they're looking.
Also, don't commit to anything while you're showing the house. Say you'll "consider it". Later if the buyer brings it up; you can ask if they would like to include that in their offer. We all know everyone wants something, so we can feel good and say we got a "great deal". Be prepared to give the right buyer something. The time to do this is at the "negotiating table" and not before. If you give it away too soon, it has no value, and you will probably be asked for more. Just plan ahead and know what you can and cannot do.
Keep in mind that the person looking to purchase a "By Owner" home is doing it for the same reason that you are.....to save the commission money. Since you can't BOTH save the same money....one of you has to lose. Be tough...and it will be them... Waiver for even an instant...and it comes out of your pocket.
Never if you can help it, tell a potential Buyer where or why you're moving. They are looking to use that to establish how motivated you area and how low of an offer you'll take. Phrases like "My husband has taken a new job in Florida" cost you about $5000 every time you say them.
Having studied sales techniques for many years, and now teaching these skills to real estate agents from time to time, I have learned to always ask the question, after a proposed concession, "would that make you feel better about going ahead and making an offer to purchase this home today?" Or, "would you like to give it a try?"
VERCOMING BUYER OBJECTIONS AND NEGOTIATION
Buyers always have an objection before they make a buying decision. Most of the time, the objection is just a delay for having to make a decision. You must always ask the buyer "to buy". Then you will get the buyer to usually give an objection. The best way to overcome an objection is by knowing in advance what roadblocks a buyer may have and planning your responses in advance so you can present it during your home demonstration before it becomes an objection.
Most objections you receive will be, "we'll think about it", or "we never make up our mind without sleeping on it" and "well talk about it and call you back" I suppose the worst part about selling a home "by owner" is the same as I'm used to hearing all the time even as a Realtor. This is a techniques that Buyer use all the time and don't even realize. They don't like your home enough to buy it, they know that full well when they're in the home, but they don't want to insult you. Instead, they act as though it’s the most perfect home they've ever seen. "When can you be out by", "are you leaving the refrigerator", and “where is the property line".... Nothing is more disappointing to an owner than when these people never call back. Yet this is something you have to be prepared for. If I had a dollar for every buyer who said they loved a home and didn't buy it I would have retired years ago.
Selling Skills Seminars I took the past years teaches me that the best technique is to ask questions. Have your questions prepared and be ready to ask more. If you would like some examples, . Also you may want to purchase a book on direct selling. They are available at book and office supply stores.
As they say "where the rubber meets the road" is in the negotiating process. You must try to remain unemotional and not be attached to personal values. It's always best to try and work out an agreement at the first presentation of an offer, because for you to call the buyer back later weakens your bargaining power. Buyers sense you may be desperate.
One of the biggest issues with respect to "For Sale By Owner" properties is actually, in my opinion, one of the funniest ones. I had spoken to this gentleman who had called on one of my listings who told me he was "going to sell his home by owner so he could save the commission money." OK, I thought, that sounds typical. The next week I saw an ad in the paper for his home. The ad read as follows:
Sherman Oaks - Deal direct with owner and save the commission,
beautiful 3 BR house on quiet side street priced for immediate sale etc.....
Now what I can't figure out it, who exactly is saving the commission etc, the buyer or the seller? They can't both save the same money. One of the things you need to watch out for is that Buyers react very different to a For Sale By Owner Home than to a regular listing. In a typical neighborhood where the listings have all sold at, let's say $400,000, a homeowner puts their own home on the market. Now, understand that for a Buyer to work with a Realtor doesn't cost them anything. As a result, most of the hot buyers aren't wasting time looking through the newspaper for a homeowner selling “By Owner”. Typically the ones who are out doing it “By Owner” thing think that THEY are going to be the ones who save the commission money. If they go into the house in the above mentioned neighborhood, and look at the By Owner listing for $400,000 they KNOW you're not paying a $12,000 commission, and so THEY want that Money. In addition they want even more “discount on a price” as they are looking for a good deal. As a result, they often offer no more than $350,000 because they don't want Your net figure to be Higher; they want theirs to be lower. This is something which is extremely important to watch out for, especially when that differential profit margin is narrow enough to begin with. Don't be afraid to stand your ground. The home is worth what it's worth and if you're doing the work you deserve the rewards.
Equally important knows how to negotiate. Often times, price can be overcome with other techniques such as creative financing options, closing cost rebate programs, etc... Feel free to if you need any more information or if you get into a sticky negotiation situation I may be able to help with.
INANCING
Lots of folks make offers on for sale by owner homes, but lack the ability, or knowledge, to secure adequate financing to successfully close the transaction. This can tie-up your property for months and you may miss the "right" buyer. It is always necessary to verify a potential buyer's ability before accepting a purchase agreement. Usually the buyer will have what we call a "pre-qualification letter" from a lender. But, you must read them carefully to make certain they are meaningful and not filled with all sorts of "conditions". It is always appropriate to ask the buyer how much will they be using as a down payment, where is that amount currently located and what lender they will be using... And then verify this information in as many ways as you can.
This is an extremely important issue. If a buyer has not spoken with a lender, you should make that a condition for the buyer to accomplish within the next three days. (This can be included in your purchase agreement.) You don't want to have your home off the market for a long time while a potential buyer is trying to figure out a financing program. Also....watch out for the phrase "We already have a pre-qualification letter for our mortgage." Most of those pre-qualified letters aren't worth the paper they're written on. Also, once you sign the offer, the Buyer has you "locked up" until closing. This means that even if they haven't gotten financing, you can't accept offers from someone else. I make it a point to verify each letter with the bank, and discuss it in detail. If I can control who the buyers are using for their mortgage, I can usually get them an unconditional commitment within 48 hours.
Better yet is the old, "We don't have a home to sell, our home is Sold!" Well that's great, but what exactly does that mean? Is their old home closed already with the money in the bank? Is it 'on deposit' waiting to close? If so, has "their buyer" been approved for financing? Does their buyer have to close on another home first? If so is their buyer’s buyer qualified and approved? Not pre-approved...., but APPROVED... APPROVED!!! Hey you are putting yourself at the bottom of a huge pile of dominos and if your buyer's buyers gets hit by a truck YOU are going to be left holding the bag. Be careful!! I have been told hundreds of time, "we don't have to sell our home" only to find out 99% of the time that they really do. It is VERY rare for a Buyer to be able to purchase without selling their home first. Every once in a while, I'll meet someone like that...but most often, they THINK they don't need to sell it...but they're wrong. Even in cases where they don't need to sell first, Buyers often get really "squirrelly" in the third or fourth week of the deal when the old home hasn't sold. Then they start looking for any and every way to back out of the deal. Think you'll get to keep their deposit if they walk away?? Good luck... It'll be in court for 3 years before the money goes anywhere..... In the meantime though, the house is tied up.
DVERTISING TIPS
In writing your ad, and creating a flier, always start with the biggest benefit of your home . . . not a feature. There's a big difference. Come up with a creative headline which describes the benefit. "Room to Roam", "Four minutes from," etc. It's important in writing an ad to try and create copy which appeals to the specific target market buyer. Avoid using ads that I call "universal" ads which just give features like 4BR + 2BA + FAM RM + 2 car garage + etc. The old sales axiom says "sell the sizzle, not the steak."
Always include your area and price. Don't give out your address. It's just asking for trouble. You never know what kinds of criminals are just looking for an opportunity to steal or WORSE. For sale by owners are sometimes a dream come true for these people. They can drive by first, make an appointment with a phony name and number, have a guided tour through the home to stake it out, and then come back at their leisure to take what they like. Try and verify who you are talking to. Get a Caller ID system; they're cheap and very useful. Very importantly though don't let anyone into your home you don't feel comfortable with. In cases where wives are showing alone and the husband is away...be VERY, VERY careful!! Several recent crimes have occurred which really make us re-think what we do. In one recent case, a women Realtor was raped while showing a prospect a home.
It's also important in advertising to use a phone number where you can be reached directly; not just a message machine. A lot of callers do not want to leave a message or their number. Many times, buyers have car or portable phones, and call from the neighborhood when they see your telephone number on the sign. This happens to me a lot. Be prepared to check for messages on a regular schedule throughout the day if you're not by the phone for extended periods of time.
The most important issue to remember about any advertising is not to discriminate in anyway, avoid being legally incorrect and don't use language which violates the fair housing laws, gets you in trouble and alienates potential prospects. Even something as simple as an add that reads "perfect for the big family" could be viewed as discriminating against people without big families. Know the fair housing law inside and out. Do your research on this!
HOWING YOUR HOME
Probably the most difficult part of the sales process is showing your own home to a prospective purchaser. This is because most buyers don't want to offend you and therefore they may not share their concerns with you, and you may not be able to identify their objections.
In showing your property, or what I like to refer to as "demonstrating your home", the most important concept to remember is to speak in terms of benefits, not features. Instead of saying "here's the bathroom", say "this quiet bath is conveniently situated to both the family room and the living room. Did you also notice the tiled countertop on the vanity?" Again, these are statements and questions you can prepare in advance. Talk about the benefits of comfort, convenience, security, pride of ownership and energy efficiency. And don't forget to show the garage and any extra storage.
There's a term I refer to as "demonstration stations". It's an area in each room where you stand and demonstrate the biggest benefit of that particular room or area. And end with a question such as "would that be important to you" or "is that what you had in mind?" Always ask the customer what is the most important part of the home for which they are looking. Nobody buys an entire home, only a certain part. So you don't have to sell a whole house . . . just the part they want or need. The rest they get for free.
ERCHANDISING
You'll probably want to do some advertising and marketing. The first and highest traffic generator is good signage. You'll need a large front yard sign, and you may want to consider some additional directional signage from the nearest major traffic artery. Sometimes, we ask other property owners if we can use their property for this kind of signage and usually they will say okay. In some cases I have even paid owners for the right to put a directional sign on their property. You can probably get your neighbors to agree without having too much trouble. I find, usually, they want to help.
The other important issue is advertising. The only real avenue for Homeowners to use is the local newspaper. Although our experience shows people usually don't purchase the home they first call on, as a For Sale By Owner you will probably get more ad calls than anything else. . Of course it's your job to qualify the caller and get them excited about seeing your home. Remember, when someone calls, your mission is to make an appointment for the caller to see the home. Do not try and sell your property over the phone. Give some information and ask a lot of questions. Again remember that your security and that of your family is paramount. Know who you're talking to. If they won’t give you a name and number don't give them the address.
You may want to write down some questions to ask and keep them by the phone so you can be prepared.
HE CONTRACT
When it comes time to write the contract, you may be familiar with the current law and perhaps you are going to use your attorney to draft your documents. The best advice I can offer is to always include acceptance dates for all the relevant particulars such as a contingency home sale, home inspection report, response time for any work required, lender qualification, appraisal, loan approval, and closing and occupancy dates. It's also a good idea to detail what happens in case the targeted dates are not met.
You need to follow-up on all the details. These things tend to get dragged out if you're not carefully, so be on top of things as much as possible.
Basically, your property is off the market during this time period, so don't allow your agreement to become this protracted epic that goes on sequel after sequel. Just do your homework, be prepared, and get it done.
Oddly enough, I run into "for sale by owners" house and owners even didn't have a blank offer form handy. I don't know if they're being pessimistic or something but I guarantee that if you don't have a blank offer, odds are the buyer won't be carrying one around either. Be prepared. If you need a blank form, you can usually pick one up at a local stationary store, or and I'll drop one in the mail.
ONTINGENCY SALE
If your buyer has a home to sell before they can buy your home, I have some recommendations for you to consider. I suppose my first and foremost would be DON'T. But if you do ...First, never give more than 30 days for them to get their home under contract. You can always give them an extension, and many times as consideration for you’re giving the extension, your buyer agrees to reduce the price of the home they have to sell.
Of course I believe your buyer's home should be listed with a Realtor, so you can be assured they are on the market at the right price and are making their best efforts to get the home sold. If it's listed with a Realtor, call that person and get some feedback. Remember, while your home is under a contingent contract, you cannot accept another "contingent" buyer who may already have their home sold and is just waiting for it to close.
And, if a non-contingent buyer for your home appears, you need to make sure there is a clause in your agreement with the contingent buyer that their offer can be "bumped" with 48 hour notice if they cannot remove their contingency. That leaves it open for you to accept a non-contingent offer subject to canceling out the first offer. Be careful to word this correctly so you don't inadvertently end up agreeing to sell your home to two different parties at the same time. It's happened before, and that's a serious problem you don't want.
ROUBLE
Perhaps the most unpleasant aspect of home selling for you is that the "for sale" sign may invite trouble. Real estate ads and signs shake out many lookers and curiosity seekers as well as thieves posing as buyers to look for valuables and prescription drugs to steal.
You can reduce your risk by pre-qualifying callers to be as certain as possible they are legitimate. Always get their telephone number and then verify it. You can always call them back with "new" information, or check with directory assistance to see if their phone or name is listed. We know you'll have to give out your address, if they don't already know it, but don't forget to ask questions and qualify as much as you can. Also, when showing the home, always to ask the people to stay with you and don't let them separate unless someone can be with them. As Realtors, we also face this problem as well as the potential for violence, when holding a Sunday open house. Particularly because people tend to come all at one time, never one right after another. You may also want to write down license plate numbers just for future reference in the event of suspicious behavior or a suspected robbery.
Ask the police to keep an extra eye on the home if you aren't going to be around. Exercise common sense and good judgment. Just be aware.
ORE TROUBLE
While we're on the "bad news", also be aware of speculators and bargain hunters who may try to take unfair advantage with insincere offers. Or offers that may include expensive terms, delayed closings, improperly prorating the insurance, escrow costs and property taxes. Remember, this kind of buyer has a lot of experience, and if you have not sold a lot of homes, it might make good sense to have your attorney review any documents or agreements before you sign anything. That's Also, everything must be in writing including the statement "there are no verbal representations or other agreements which modify or affect this agreement, unless set forth in writing and signed by Buyer and Seller". (Don’t forget to ask the attorney what will be his/her fee to close the selling transaction)
If any problems arise during the time the property is under contract, deal with them fast. Have your attorney on hand to handle these issues. Also, make sure your attorney is reachable all the time. If you get a potential offer the Friday night of Labor Day Weekend the deal could be long dead by the time you get your lawyer to review the offer. That's why good Realtors like me are available 24 Hours a day - 7 days a week to handle those emergencies. Expect the same from your attorney since in a way they are almost acting as the Realtor.
INAL CONSIDERATION 
If you attempted to sell your home “By Owner”, and are feeling anxious and overwhelmed, I can help represent you throughout this important process.
When you choose me as Your Realtor, it is my responsibility to help you succeed in selling your home
I'm committed to work hard to help you earn top 
for your home, in the shortest amount of time and with the greatest ease.
Please make the easy choice -