PrivateList PROACTIVE

PrivateList PROACTIVE - Jun 16/00

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: Tax Reminder / Regrouping

ARCHIVES: www.privatelist.com/newsletter.htm

TAX REMINDER

As mentioned in the previous issue of PROACTIVE, we will be charging the sales tax on our services as of July first.

If you, or someone you know, have been thinking of displaying your property online through PrivateList, you can avoid the tax by enrolling with us prior to the end of this month.

REGROUPING

Private sellers sometimes end up listing with realtors through sheer frustration at a lack of early response to their ads - or, just as bad, at a multitude of showings but no subsequent offers.

Considering the amount of money involved in realtor fees these days (see PrivateList PROACTIVE issue #2), and the large number of successful private sellers (see our testimonials page, that’s a real shame. The antidote? Realistic expectations and a proactive attitude.

Selling privately is not rocket science! There are really only two major elements involved: PRICE and EXPOSURE. So don’t throw in the towel if your first or second round of marketing has been less than satisfactory - just ask yourself the following questions (and ACT on the answers!):

with respect to EXPOSURE:

Have you given yourself enough time? In a normal market, it can take 2-3 months for a realistically-priced home to find a buyer; if your property is exceptional in terms of type, location, price-range, etc., you’re fishing in a smaller pool of potential buyers — and may require more time and/or more extensive advertising to get the job done.

Have you done enough to get the word out: highlight sheets, lawn signs, classified ads (free and paid, online and off), internet display, TV, word of mouth, . . . ? Don't skimp on marketing - your budget should reflect the fact that you’ll save thousands by selling privately!

regarding PRICE:

does your asking-price truly reflect . . .

market conditions? Are houses selling all around you - or just sitting there like yours? Private sellers have the advantage in a tough market, provided they SHARE that saved commission with buyers by way of a lower asking-price;
location? Assume that you’re in competition with six other homes: is your asking price low enough to outweigh any handicap you may have in terms of neighborhood (busy street, gas station next door, etc.)?
condition? Definitely make sure that small repairs are carried out, and consider a fresh coat of paint. But let a lower asking price compensate buyers for more major deficiencies - then they can make repairs their way and in their time.
terms? You don’t necessarily have to cut your asking price to undercut the competition: including appliances and drapes or offering cash back towards closing or moving expenses may tip the balance your way with cash-poor prospects. Terms might also include talking to your banker about an interest rate buy-down if your mortgage is assumeable, or even carrying a second mortgage yourself. (See our mortgages section for other ideas.)
the competition? “Negotiating down” from a high asking-price might work if yours were the only house on the market. But if buyers have other homes to choose from, your fat negotiating cushion may simply help sell someone else’s property! So use your saved realtor’s fee to undercut the competition from day one, and don’t hesitate to trim your asking price to within $1000-1500 of your absolute bottom line if you’ve been on the market for a while with no action (ie., written offers).
your reason for selling? In setting your bottom-line, see the larger situation. For example, anything you lose by selling a bit low in a tough market may be more than recouped on the purchase of your next home. Or are you investing the sales proceeds? Then how much investment income might you lose by holding out several months for a slightly higher selling-price?

Good realtors are sometimes tough on their clients! But their cold-blooded appraisal of a competitive market, and their insistence on changing something if necessary, is what leads to sales!

Cultivate that objectivity, focus and willingness to act, and you'll join the thousands of Canadians who, every year, save a lot of money by selling without a realtor!

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.