A Step-By-Step Guide
To Understanding
How To Sell Your Own Home!
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.
And It All Begins By
Outlining Your 4 Selling Goals!
Step 1 - Your 4 Selling Goals
When These Goals Are Realized
You’ll Experience A Successful Sale!
Your 4 Selling Goals
1.
Experience minimal discomfort
marketing stages of the sale.
during
the
2. Sell your home at the highest possible market
value price.
3. Eliminate last minute surprises that often cause a
sale to fall apart
4. 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
It Consist of 15 Unique Stages
During a Successful Sale!
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!
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!
The Buyer Pool
All MLS Agents
Your Own Agent
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
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
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.
Remember - Homes Are Marketed To MLS
Agents First & Their Buyers Second!
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
Your Contact info here