Periodic tips and reminders to help focus your by-owner marketing and win your commission-free sale - from Canada’s by-owner web-site, www.privatelist.com.

THIS ISSUE:      Telephone Tips / Deposits

ARCHIVES:     www.privatelist.com/newsletter.htm

TELEPHONE TIPS

Mrs. buyer calls your number and waits . . . and waits . . . as the phone rings three, four, five times. She’s just starting to think of the other house ads on her list when all of a sudden her left and right ear-drums are welded together by the screech of your FAX-machine. Ouch! Of the six houses on her list, you’re now number ten!

Why take the risk? As a private homeseller you’re in a competition: to get top dollar for your home you must make it as easy as possible for buyers to see your property first! Since the telephone is one of your earliest points of contact with purchasers, make sure it helps rather than hinders your progress towards a sale:

• if you don't have one already, get an answering machine (or subscribe to your phone company's call answer service for about $6/month) so buyers can leave their number;
   
• subscribe to call-forwarding, a $5/month phone company service that lets you redirect incoming calls to another number where you can be temporarily reached;
   
• avoid telephone tag: if a buyer leaves a number but isn't in when you call back, leave a couple of numbers and times at which you can be reached;
   
• call return costs about 35¢ per use: enter *69 on your phone’s keypad to retrieve the number of your last caller should they neglect to leave it;
   
• call-waiting costs about $5/month and informs you of an incoming call when you’re already on the phone: make sure family members know to get you immediately if that second call is from a buyer;
   
• select ring, also about $5/month, is a phone company service that applies another phone number to your existing line - its distinctive ring will tell you a buyer is calling (since you’ll use that number only in your by-owner ads);
   
• if you record a special message for buyers, just touch on your home’s highlights - leave prospects a reason to call back!
   
• if you advertise your cell-phone number, make sure it works: buyers do not want to hear “. . . unavailable at the moment - please try again later. . .”
   
• make sure that you include "see us at www.privatelist.com" along with your phone number when you advertise: buyers can enter the latter on our main listings page and go directly to the first page of your full-color display.

Your internet display will weed out non-prospects and give potential buyers the best possible incentive to call you. Timely Tips essay #11 will help you qualify them and line up a showing. And all the other PrivateList online resources (see below) will help them ACT if they like what they see of your house in person.

But it all counts for nothing if they can’t reach you! So do everything you can to HELP BUYERS MAKE CONTACT.

DEPOSITS

The deposit constitutes part of your purchaser’s down payment, and is presented with his/her offer. It represents the buyer's committment to follow through with the deal: if the contract falls through because a condition could not be satisfied, the deposit is returned to the purchaser but if for any other reason the purchaser backs out, it goes to you.

How much?

You should be wary, then, of a deposit so small that the purchaser risks little by walking away. Expect 3-5% of the purchase price, depending on the purchaser's circumstances and on how much marketing time you stand to lose if the deal collapses: a long-off closing date justifies a larger deposit, whereas one only a week or so away effectively leaves your home still on the market as far as follow-up offers are concerned.

If the purchaser is temporarily strapped for cash, you might suggest that a small deposit at signing be augmented by a second installment:

"The Purchaser agrees to increase the original deposit by the sum of ___________ ($ .00) on or before midnight ______________."
(Note that dollar amounts are expressed both longhand and in numbers anywhere they appear.)

But if the offer is satisfactory in other respects, be cautious about rejecting a deposit that's just a bit low. Remember that countering for any reason kills the original offer: now you’re making an offer, which the purchaser is free to reject.

To whom?

Never accept the deposit in cash, and don't expect the purchaser to make the bank draft or cheque (preferably certified) payable to you - normally, it will be made out to your lawyer's firm in trust. This ensures it will be available as part of the down payment on closing: your lawyer holds it as a neutral third party, to dispense as directed by the terms and deadlines specified in the purchase agreement.

Interest

The deposit may represent a substantial sum and be tied up for several months, for which reasons the interest it might earn becomes an issue:

"The Purchaser's deposit money shall be placed in an interest-bearing term deposit and the interest earned shall be paid or credited to the Purchaser on closing."

You should also specify who gets the interest if the deal falls apart.

One last caveat . . .

Catastrophe! The deal falls through and you must return the deposit to the purchaser. Be careful if the original deposit cheque was uncertified: make sure it's cleared the banks before you release the refund! (Better yet, refer prospects to http://www.privatelist.com/buyers.htm for information on mortgages, closing costs, and legal issues before they make their offer.)

FRIENDLY REMINDERS . . .

It's important to maintain an active marketing focus until your property is sold. Just an hour every week-end, spent reviewing progress to date and mapping out a response, can pay real dividends.

Therefore, each e-mail version of PrivateList PROACTIVE ends with a series of reminders, and links to tips and tools for your on-going campaign.

To access these resources, press here.

©2000 PrivateList