Script for Selling a Home Slide Show Slide 1: Hello, I’d like to thank all of you for coming to our Sell A House Seminar. I’m going to show you today how you can sell your house yourself and save a commission. However, what I am going to show you does not work unless you follow the whole program. You can’t just do steps one, two and six and expect the program to work for you. You must do each step of the program and do it right. These steps have been tested and I know they work. These are the same steps a Realtor uses everyday to sell a house. Slide 2: Here are the six steps. 1. Getting you ready. This is the one step most people don’t/t do when selling their house and it can kill more deals than anything else. 2. Pricing The House. If this one isn’t done correctly, your house could sit on the market for months. 3. Getting The House Ready. Done correctly, your house is sold. 4. Marketing The House. This is the most important step in the whole process. 5. The Offer. Make a mistake here and it could cost you thousands. 6. Closing the Deal. It’s more than a hand shake and turning over the keys. Slide 3: Getting You Ready. First, as you have probably already noticed, I have been saying house, not home. You are not selling your home, you are selling a hours. This is strictly a business transaction; it need not be an emotional roller coaster. Your home is where your heart is, your house just happens to be where you live now. You can never sell your home, but you can sell your house. You have to keep the emotions of selling your house out of the sale. Let me give you an example: I had a lady who wanted to sell her hours. She had just had a baby 8 months earlier and had traced the babies’ hands and feet on a paper and cut out pieces of sponge to make the baby’s feet and hands. She had dipped the sponges in paint and made a border around the top of all the walls in the baby’s bedroom. It was very pretty and she was very proud of it. Well one of the buyers who came to look at her home made a moment that the border would have to go as soon as they moved in. Well the lady became very emotional and asked the person to leave. This person was all ready to buy the home and the owner said she would never sell to them. Her emotions killed the sale of her house. You must keep emotions out of it. If the buyer wants to knock down walls, repaint everything dark red and put tile in every room, that’s OK, because it will be their house, not yours. Slide 4: Pricing the House Before you even put your house on the market you have to do your homework. You have to know what has sold in the neighborhood in the past six months and how much it was sold for. You have to know what homes are now for sale and how they compare to yours. You have to know what kind of market you are in, buyers market or sellers market. This plays a big part on pricing your house. You can get a market analysis on your home from any real estate agent that will do it for you. Remember to get several to see if they are all in the same approximate price range. Remember that a Market Analysis compares homes that have sold, are for sale , are under contract and did not sell over a period of the last six months. Each category is essential to you setting your price. Homes for sale will give you an idea of where to price your house depending on when you want to sell. Sell first, you must be the lowest price, sell last, the highest price. Expired houses tell you where not to price your house, unless you really don’t want to sell at this time. Beware however, that pricing your house high and then lowering it later will cause prospective buyers to wonder what is wrong with the house and may even keep them from calling you about it. You can always get a FEE Appraisal done by a professional appraiser and then you will know exactly what your house is worth in the current real estate market. Be sure it’s a FEE appraisal and not a refinance appraisal. There is a difference and you can call a mortgage lender and ask them what the difference is. Once you have a Market Analysis or an Appraisal, you can do a net sheet. Base the net sheet on an acceptable offer, not on the asking price you are attempting to get. Slide 5: Getting the house Ready What should you fix and what shouldn’t you fix? FEX EVERYTHING! If there is something broke, fix it before the prospective buyer ever sees it. You would be surprised how little things that are wrong with a house will cost the seller a lot of money in the negotiating of a offer. Paint anything that needs it. Don’t just slap paint on it, having it look nice and clean is very important. I have seen some people paint a wall without preparing it first or washing it off, and that is a big mistake. The dirt, oil, and other markings can sometimes show right through the paint. The prospective buyer sees it and wonders what else you tried to cover up elsewhere in the house. Have a friend who has a great sense of smell come over and check out the whole house. That cute kitten that has lived in the house since you moved in may have marked its territory and you just never noticed it. If you are a smoker, and only smoke in the garage, guess what, when the prospect walks into the garage they will smell it and think to themselves “I wonder if they smoke in the house also and are just cover it up with room deodorizers.” A bad smell in a house can kill the sale faster than almost anything. A lot of people think they will give the prospective buyer a carpet, paint or whatever allowance to fix what needs to be done. Well, that’s great, but give a reasonable allowance. For example, find out how much it would cost to re-carpet from a professional carpet company. Don’t just guess at a figure and think the buyer will take it or leave it. Most of the time a buyer will come in with an allowance figure that is far above what it would cost to have the item replaced or repaired. Slide 6: Marketing the House If you want the house to sell, you have to give it exposure, exposure and more exposure. Your house has to be available for prospective buyers to look at and get information on 24 hours a day, 7 seven days a week. According to the National Association of Realtors (NAR) 85% of all homebuyers found their house on the internet before ever going out to look at houses. You wouldn’t want to pass up 85% of all buyers when you are trying to sell your house would you? Of course not. So you have to get your house on the Internet. You can use some of the For Sale By Owner Realtors on the Internet or you can really do it yourself. Oh, you didn’t know that the For Sale By Owner Companies are Realtors? Well, they have to be, because they are practicing real estate by putting your house in their magazine, if they have one, and by charging you a fee for helping you sell your house. They usually don’t charge a commission; they just charge a flat fee (it’s really a commission, they just call it something else). Anyway, I don’t want to get started on that. Just for using our Guide to Sell Your House Program, we will give you a great discount on putting your house on our xxxx For Sale By Owners web site. The only difference with us is we won’t help you do anything; it’s all up to you to do the negotiating, paperwork, marketing, settlement and closing. The NAR also says the one thing buyers on the Internet demand is a minimum of six photos and full details of the home right on the web site, to include price and address. In fact they said houses with photos get looked at 299% more than houses without photos. Slide 7: The Offer This is where most For Sale By Owners lose thousands of dollars by not having the right information in pricing and marketing steps of the program. The first thing you must do when selling your house yourself is to pre-approve the buyers. You must ask them a series of questions which will let you know if they are really buyers or just lookers. My Guide to Selling Your House gives you all the questions to ask them. You have to know how to write a binding contract. My Guide to Selling Your House has a sample informational contract in it that you can use to base your contract on. Earnest Money – How much do you want? If your house is under 100 thousand dollars, you want at least $500. if you house if more than 100 thousand dollars you should get at least 1% or more. You want to be the person holding the money. In some cases you want it to be non-refundable. You can call me and find out more if you think it applies to your situation. Who pays what? You usually pay your own closing costs. Yes, that’s right, you have closing costs and so does the buyer. The buyer usually pays for any inspections, special tests and the appraisal. The buyer usually asks the seller to pay for a home warranty, more on that in a minute. You can call any title company and ask them to prepare a sample HUD-1 (Form that lists all the costs involved in a sale) for you and it will usually be very close to what all the costs are gong to be. You will have to give them all the information about the offer so they have the figures needed to prepare the HUD-1. There are disclosures that are required on all real estate transactions. You can find most of the required disclosures on line. The buyer will likely request an inspection by a professional house inspector. Any problems found by the inspector will be of concern to the buyer and will likely become part of the contract if the buyer is still interested in the property. Slide 8: Closing the Deal This comes in three parts, settlement, closing sometimes-called recording and possession. Settlement is when you and the buyers go to the title company and sign all the required documents to complete the sell of the house. Closing happens after all documents have been signed and returned to the mortgage lender and they then provide the funds required to pay everyone to the title company and the title company then records the property in the new owners name with the county. Possession is when the new owners get the keys and can do with the house what they want. NOTE: Never, Never, Never give possession prior to closing, no matter what. If the deal falls apart at settlement and you have given the buyers early possession, it may take an act of congress to get them out of the house. Slide 9: Warnings These warnings are not meant to scare you, just to educate you so you can prepare yourself so they don’t happen to you. Children can kill a sale – or maybe make it never happen in the first place. Let me give you an example. We had a family that wanted to sell their house and move to another country. The two daughters were both in High School and really didn’t want to move and couldn’t understand why they were moving. There was no change in job, or anything that required them to move. The children were the ones who were always home or got home before the parents. They would take any prospective buyer messages on the answering machine and call the people back and say “we have taken the home off the market and no longer wish to sell.” They would say the same thing to anyone who wanted to come over to look at it or any Realtors who had a client interested in the house. The parents were not aware that this was happening until one prospect called back to be sure and got and got mom on the phone, not the daughter. They asked why the sellers still had the sign in the yard if they did not want to sell. To say the lease, it was not good for the daughters. Be sure to ask your children what they think and tell them why you are moving. High Value Items, Prescription Drugs, and Personal Information can all be covered as one topic. If you have high value items in the house, put them in a safe deposit box or somewhere else other than the house. Check the doors to be sure they are locked every time you leave. Someone could drive by and knock on the door hoping to see the house. If they happen to try the door and it opens, they could enter without your knowledge. The point is your risk is increased while the home is on the market. Slide 10: Good Luck Finally I’d like to wish you good luck with the sale of your house. If you have any questions after looking at the Guide to Selling Your House, just give me a call, I’d be happy to help you sell your any way I can.