What were Richard and his wife thinking?  A recent news story I came across tells the story of how this couple recently put the house they have been building for the past two years in Alpine, New Jersey up for sale.  Only minutes from New York City and a bargain at $68,000,000, it’s got 30,000 square feet and more bedrooms and baths than the local Holiday Inn.

So what did Richard and his wife do?  What nearly 80% of all homeowners do:  They listed it with a broker.  By doing so, they’ve agreed to pay a broker commission of up to 6%.  That 6% of $68,000,00 equals … drum roll please… $4,080,000 taken out of their pockets! Yikes!  That’s  a LOT of money they could save  if they sell the home FSBO, as more and more homeowners are doing.

Since 2005, the number of home sales completed by homeowners without a real estate agent has steadily grown from 12% to over 20% in 2008.   And guess what?   The steps to selling a $68,000,000 home are no different than those necessary to sell a $68,000 home.  In the case of any home sale,  the most important thing you can do is expose your home to the greatest number of buyers in the market for a home like yours.

There are obviously very few buyers out there who can afford a home like the one Richard built.  Imagine:   the monthly mortgage payments on a 30 year mortgage will be over $292,000.   (Unless the buyer pays in cash.  Wow!  What a thought!)  Who knows–maybe Bill Gates is getting tired of his home in Seattle and wants to move to the East coast now that he has retired from Microsoft!

But seriously, folks, though it’s unlikely that Bill Gates would be Richard’s ultimate buyer, a buyer that qualifies for a $68,000,000 home may just well be an acquaintance of Bill’s.   So…Bill should be targeted in Richard’s marketing plan so he can tell his acquaintances.   But why spend over $4,000,000 to have an agent market to the very small group of potential buyers for this home, when Richard and his wife can do it much less expensively without an agent?

Richard may not understand that with the millions he can save on an agent’s commission, he can hire his own PR agency to get the word out, not just to  the wealthiest individuals around the globe looking for a nest this close to NYC, but to virtually all the media on the planet–for a lot less than $4,000,000.

And once you identify the market for your house, the same ‘outside the box’ thinking could work to market your home, too–also for considerably less than 6% of your sale price.

The point is that all of the steps to sell a house of this size and cost are exactly the same as selling the more typical $200,000 home in America.  Every step can best be handled by the home owner because the homeowner knows their home and their target market–someone like them–best!   You need to get it ready to sell, then advertise and market it to buyers in your target market, show the house,  get an offer and then close the deal.

And though the cost of a FSBO listing plan is infinitesimal when considering the price of Richard’s home, for many FSBO sellers, every penny of home selling expense is worth watching. So there’s absolutely no reason NOT to try selling FSBO, especially when the listing plan carries a money back guarantee should you decide to list with an agent after trying FSBO.   That’s right–there’s No Risk!!!  And in Richard’s case, up to $4,000,000 to gain!

If their listing contract runs out before the house is sold, we hope Richard and his wife consider selling FSBO.   Like you, they could still have it listed on the MLS to bring buyers working with agents.  By placing your home on the MLS, you’re still in control when you decide what you’ll pay a buyer agent–normally up to a 3% commission, but you will also expose your home to many more potential buyers and still save half the traditional 6% commission.   Richard would still pocket a 3% saving…or just over $2,000,000. Works for me!

Richard, I wish you all the luck in the world with your current brokered listing.  But remember, if you don’t have a sale when that listing runs out, you can literally save millions going FSBO!

Why have an Open House?

It gives your home additional exposure.  An Open House is an important marketing tool that allows the general public in your area to visit your home for a tour. Contrary to the opinion of some in the business, we think it is worthwhile to have an Open House.

The more exposure your home gets, the more opportunity you have to find a buyer. Someone who you think is just a “looker” might then tell a friend, family member, or a co-worker about your home. The rule is: The more action and the more exposure you get, the better your chances are to sell your home.

Timing Issues

• Hold your Open House after you have researched the comparables in your neighborhood, finalized your selling price, gotten your house Ready to SELL,  and completed your marketing materials.

• Be sure you have made all the necessary repairs or improvements that are critical  to getting the highest possible price. Have you painted everything that needs to  be painted? Cleaned the garage? Cut the lawn and replaced any dead shrubs?   Minimized any drawbacks and optimized your home’s best features?

• Be sure you have produced several sets of your Buyer Information Packet.

• Select a weekend for your Open House. Typically Sunday is the  best day. However, many people hold their Open House on  Saturday and Sunday. If you have to clean your house and spend money to get      the word out, having a two-day event allows you to have more visitors for about  the same cost and inconvenience. The main reason weekends work best is that both husbands and wives who work are normally available on weekends.

• Typically you should start your Open House around 1:00PM and end at 4:00PM. However, many people will actually start around 10:00 AM and end about 4:00PM for the same reason some have a two-day event. The cost and the clean-up are the same, and you have more opportunity to find a potential buyer with longer hours.

• Don’t pick a holiday weekend when buyers are unlikely to shop for a home.

Open House Marketing

Creating traffic is the key to a successful Open House. We recommend the following to generate the most traffic to your home:

1.     Advertising:  Consider running an ad in the classified section of our local newspaper at     least one week in advance of your Open House.

2.    Open House and Directional Signs: Put an Open House sign on your front lawn and     directional signs on all of the corners of major roadways leading to your home. These     signs have arrows pointing the potential buyer to your home. Additional Open House and     directional signs are available for purchase from the Private Sale Partners Store.

You could also create a “Welcome–Come In” sign for your front door to let people know     it is OK to simply walk in. Some people will hesitate to simply walk into a home without   a sign, and you don’t want a dozen people ringing your door bell every ten minutes,     especially if you are trying to present your home to a potential buyer who is already     touring the house with you.

3.    Home Listing: Update your Private Sale  Partners Home Visit Scheduler on the  Private Sale Partners website to include the date and time of your Open House. Many  potential buyers will search the web for Open House information.

4.    Neighbors.  We strongly suggest that you invite all of your neighbors to  your Open House. Why?  Several reasons: More visible traffic into your home suggests to a potential buyer that the home is of interest to others and is therefore priced correctly. It also gives you more security around the house if you have more friendly people around, and you may want to show off great neighbors to those buyers who are really interested in the neighborhood.

Although it’s unlikely that a neighbor will actually buy your home, a neighbor is a perfect person to spread the word to a friend, family member, or co-worker whom they would like to have living closer to them that your home is for sale. Neighbors make wonderful sales assistants for you, and you might even consider giving them a “commission” if they help you sell your home.

Open House Security

Any time you allow the general public into your home for any reason, you need to take basic security measures. It’s just common sense.

• First, remove from view all small items that can be easily stolen. Put them in a box and bring them to the basement or a closet, but get them out of sight. You should not have to worry about having someone taking your possessions when   you need to spending your time presenting your home to potential buyers.

• Second, most real estate brokers who hold Open Houses only have one or  two agents present. We do not recommend that. We highly recommend that  you put a team together of at least three people, with you being the fourth. One  or two members of your team could be your neighbors; others could be your  children if they are old enough, or other family members.

In the event you do not have friends or family who can assist you, consider hiring a few people from work, but do get help.

Your job at an Open House is to meet and greet at the front door, quickly assess each visitor to determine which ones are real potential buyers, and then spend quality time with them on a tour of your home. So, you will need one of your team members at the front door so that you can move away with a prospect if you need to.

If someone comes in and they look and sound like they have no intention of buying, have one of your team members take them through the home. You need to focus on real leads; that’s why you are having an open house.

• Third, we highly recommend that you have guests register at the front door and have one of your team nearby to ensure that  everyone signs in. This accomplishes two things:

• It will weed out those people with ulterior motives. They will be reluctant to sign in.

• It gives you a very valuable tool for follow-up.

• After the Open House,     walk-around and re-check all the locks on all the windows, patio door, back door, etc.  Make sure everything is still locked. The overwhelming majority of people who come to your home will be honest.  But don’t take any chances.  Be smart.

Preparing Yourself and Your Home for the Open House

Clean Up
Before the appointment, you should have picked up everything in your home that is
out of place. Nothing should be lying around. Make all the beds, be sure there are no
dishes in the sink and that the mail is off the desk and out of sight, take newspapers off the coffee table, and take out all the trash.

Check the Thermostat
The day of an Open House is not the time to worry about your energy bills.  If it’s winter, adjust the thermostat to a warmer temperature. It shouldn’t be too hot, but warm enough to make your home “welcoming.” Remember, the more traffic you get in and out, the more the house will heat up. If it’s hot outside, turn up your air-conditioning. If your potential buyer is cold or hot and uncomfortable, he or she will want to leave as soon as possible.  Buyers might even take with them a vague uncomfortable feeling about your house and wonder why.

Bad Weather
If it’s raining or there’s snow on the ground, it is appropriate to have a quality mat at the front door, inside, for people to wipe their feet on. Some sellers will actually ask a potential buyer to remove their shoes, which is a good idea. First, it helps you keep your home clean, and, second, it sets a tone that the seller cares about the quality of his or her home. What you don’t want is a mat that looks like a plastic drop cloth.  Have a nice mat at the door. Even if you have to wash it later, it is better to have something presentable at your front door. Remember the good first impression rule.

Music
To create a little more atmosphere, have some soft music playing, just for a little background effect. Some people think classical music is best. Again, this is another area of dispute in real estate. Some people think that music takes away from the focus of the sales presentation. We don’t.  We think that, done correctly, it adds a measure of quality to the environment and that most people find soft music calming.

Lights
Turn on all the lights in every room. Remember, “light-filled” is something all
buyers are looking for in a home. You want the home to look well-lit and bright. If you simply leave the lights on for your Open House, you will be able to move through the home smoothly without fumbling with light switches.

Consider using stronger light bulbs in rooms where natural light is at a minimum. We mentioned earlier the expression, “People gravitate to the sunshine.”  The only exception to the “lights on” rule is if the particular room you will be showing looks awful and you don’t want to highlight how bad it is. But we trust that will not be the case, and that you’ve fully prepared for the Open House by addressing any issues that cry out for painting or repairs before you welcome prospects to your home.

Small Children and Pets

Small children (and their toys) as well as pets (dogs and cats and their litter boxes and bowls) should not be at home during any Open House events. You must make arrangements for a friend or family member to take your children and pets for the day. Small children will not only distract you, but they will distract any potential buyer.

Food and Beverages?

There are two schools of thought about food and beverages. One says have something light such as cookies or a vegetable platter for your guests and some coffee. The other says have nothing.
You’ll have to make your own decision on this subject. Having snacks and coffee might make a potential buyer feel more at home and actually stay around your home longer, and that’s a good thing. Also,   if you have good traffic at your Open House,  you’ll learn a lot from the conversation about your home that naturally takes place among various prospects around the cookie tray.

However, the cost of food and beverages is an issue. Also, you run the risk of someone spilling coffee on your carpet as they walk around your home. Lastly, someone will have to ensure that the coffee pot is not empty and that the snack tray is kept fresh. We suggest you go with your instinct on this one.

One thought about refreshments to consider:  It’s an especially good idea to serve refreshments if you have a great area in which to serve them. If you serve refreshments in a recently remodeled and sparkling kitchen, cozy dining room with a great view from the bay window,
or a deck laid out with pots of seasonal flowers, guests will take away a great impression of an area where they enjoyed lingering.

Flowers

We strongly recommend that you purchase fresh flowers on the day of your Open House. Placing flowers in various spots gives a good overall impression and adds a nice touch to the home. It sends a subliminal message that you are a quality homeowner who cares about the home.

Aromas

Aromatherapy works. A simple way to add a wonderful aroma to your house is with “plug-ins,” but be sure to use ones that are not offensive or too strong. Most can be adjusted, so be sure to set them at a lower setting.

The smell of fresh baked cookies will make anyone linger a little longer and feel like they are home. You might also consider boiling some cinnamon sticks about 30 minutes before  potential buyers arrive.

Dress the Part

What should be done before the potential buyer arrives at your home?  Simple: Be ready. Remember our maxim about the first impression? When you open your front door, you have only one chance to make a good first impression.

So, if you’re a guy, that means get up early, shave, put on nice clothing. Nothing over the top, but be clean and neat. Not jeans with holes or paint on them. Not a tee shirt, but a collared shirt. Look professional and communicate that you’re a quality guy, and the subconscious impact on the potential buyer will be, “He must also have a quality home.”

If you’re a woman, take the time and put on your makeup and a smart outfit. Again, nothing over the top, but look professional.

Remember, you are a reflection of your home, and your home is a reflection of you. The key is that you want to look like a quality individual and a serious seller, particularly if you want the potential buyer to think you have a quality home. Looking the part is important. Dress for success!

Prepare your “Buyer Information Packet” and other marketing materials in advance.

See Part 2, Marketing Made Easy! to review how to prepare the Buyer Information Packet. We do not recommend that you give out a packet to all visitors. Only those expressing interest in the home should be given the complete packet, and
possibly a CD of your virtual tour or photos.

All other visitors should be given a flyer that contains all of the basic information you want them to have. You can print flyers directly from your online property listing
and add your personal phone number if you choose.

Remember, serious buyers will probably visit many homes on a weekend. After they have seen several homes, they all start to run together in their mind. “Which one had the kitchen that I liked?” “Which one had the deck?” Giving serious potential buyers information to take with them, including a Home Visit Feedback form and postage-paid return envelope, is a way for you to help buyers remember your home and to gather valuable feedback. Have all the research that went into pricing your home nearby so that buyers who question your pricing will see that you’ve done your homework.

Welcome Potential Buyers and Establish Rapport

Though it is important in every sales transaction to establish rapport with a potential buyer, it can be a challenge in an Open House setting, especially if you have a great turnout. If traffic is brisk at your Open House, you may only have time to be as welcoming as possible, answer a few questions, and then move on to the next potential buyer.

Your focus when there are multiple potential buyers in the home should be to be warm and welcoming, and to be sure that each potential buyer leaves with information about the home and that you have a way to get feedback from them through a sign-in sheet with contact information and the Home Visit Feedback.  If they seem seriously interested, be sure to give them the Buyer Information Packet. Give a Home Sale Flyer to every visitor, whether they seem interested or not. You might even ask if they would like to take more than one to pass along to a friend or to place on a bulletin board for you.  During a slow time at your Open House, you will probably have sufficient time to follow the detailed suggestions presented below.

When your doorbell rings and you open your door, smile and welcome your guest. Your potential buyer should immediately feel comfortable with you and not want to run back to their car. Remember, the buyer is probably feeling some of the same anxiety that you are feeling.

At this point, it is important for you to be yourself as well as to be sensitive to the buyer:  Do they seem to want to chat a bit first, or do they just want to get to the tour of the house?

It is better to try to develop a rapport and relationship with the prospect than to appear uninviting and cold. Be open and friendly with the prospect so he or she will be comfortable. Everyone has their own style when it comes to selling and buying, and you will have to decide just how friendly you want to be with a prospect and try to sense how much interaction with you they are comfortable with. You might ask the potential buyer if they would like to be accompanied on the tour of your home so that you can answer any questions they might have. Many people expect to be left to tour the house on their own at an Open House and to be able to ask questions later, after they’ve toured the home. If your Open House gets any degree of traffic, you may have no choice but to leave potential buyers to tour the home on their own.

At the end of the day, it is  important that the buyer be comfortable at every stage of the process. This is another reason why your Buyer Information Packet should be complete. The buyer might not want to discuss all the features and benefits on the initial visit, and the best aspects of your home will be detailed in the packet, which the buyer can review at his leisure after the visit.

Follow Up

In the week following your Open House, gather up any returned Home Visit Feedback forms sent to you by your guests. Then, if you have the time, call visitors who registered but did not send back the feedback. Ask for their impressions of the home.

This information will help you immensely in presenting your home to other potential buyers. If you identify a flaw that you had not seen before, you can now fix it before other potential buyers come to visit.  Most important, if you have someone that exhibits a real interest, you now have a chance to have them come back for a second visit.

It’s important that you be open to any comments, particularly constructive criticism, you receive from visitors. None of us likes to receive negative comments, but this is not the time to be defensive about your home.  Remember, information is power, and this information is going to help you make adjustments to either your presentation or to your home itself so that you can sell it for the best price.

Be sure to continue reading the Sale Presentation information on the following pages before your Open House, as many of the specific Sales Skills discussed will be helpful to know beforehand.  It’s unlikely that you will have the same kind of time to devote to each Open House visitor as you will when you have a Home Visit. But if you review the sales skills and are ready to use them at your Open House, you’ll be well prepared should you have the opportunity.

Allocate at least a week to advertise your Open House, a day or two to prepare the home, one weekend to conduct it, and a week to follow up. If you order “Open House” or directional lawn signs from the Private Sale Partner Store, allow 7-10 days for shipping. Keep publication deadlines for classified ads in mind when you start planning your Open House.  Some publications will require as much as a week’s notice to place your ad.

I’ve been corresponding over the last week with a customer who purchased her ProSell MLS plan three weeks ago. She wanted to know if her listing had been picked up on the other sites where we feed our listings. A couple of days later I confirmed that the listings had been fed and were beginning to appear (how quickly they appear on the other sites is controlled by those sites), not only on the sites we feed to, but on several others in her local area, thanks to the additional online exposure provided by her MLS agent. As a matter of fact, when I searched for her property address, I came up with over two pages of search results. So, all in all, our seller was satisfied that she was getting the widespread online exposure we promise.

But in the meantime, there was interesting lesson to be gained from this seller’s expectation that her online listing do the lion’s share of marketing her home.

In the three weeks since creating her listing, she had gotten some traffic. In today’s real estate market, any traffic in three short weeks is quite remarkable. Yet when she wrote, she commented that “time is of the essence for sellers” which seemed to indicate that she had an expectation of a lot more traffic and even possibly getting an offer in that three-week time frame.

We have always been keenly aware that time is of the essence in the home selling process. We address the issue of timing exhaustively in Book Two of our home-selling system, Marketing Made Easy!

And that brings me to the Thighmaster…or Bowflex…or diet plan. We all buy products that make promises, and ours is no exception, in that we promise you that if you use our  system you’ll save a lot of money on the sale of your home (or we’ll give you your money back). But just as the Thighmaster sits in many a basement and doesn’t achieve the results it promises, so our complete system, if unused, won’t achieve the results we want for our sellers.

You’ll get the best results from using all the components of our home-selling system. Get all you can from your four selling system books. From home prep to pricing, from marketing and sales to a hassle-free closing, we’ve written them to cover every issue that might arise in the home-selling process. (If we’ve missed something, please feel free to let us know what it is!) Contact our staging or storage partners to help clean up and declutter. Use our classified ad partner to get a great price on a classified ad. Plan a traffic-stopping Open House with our Open House sign kit.

I reminded our seller to gather the statistics discussed in  Marketing Made Easy! For example, in her market, the average days on market is 133, and there are currently over 600 properties in foreclosure and over 150 other properties listed for sale. I suggested a thorough review of her Home Valuation Report for recent sales data in her neighborhood. She decided, first, to drop her price, and secondly, to lower her expectation that, in such a competitive market, the sale of her home will result from an online listing alone (or even many online listings).

We know that we’re not going to get the slimmer thighs, rock-hard abs, or lose the weight without doing the “work” of using the products that promise those results. Similarly, we provide you with a complete set of tools for saving money on real estate commissions, but in order to get the results you want, you’ll need to open the tool box and put the whole set to work for you!