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:      FREE CMHC Buyer’s Guide / It’s Not Rocket Science!

ARCHIVES:     www.privatelist.com/newsletter.htm

FREE BUYER’S GUIDE

A great resource for both buyers and sellers is an easy-to-read workbook from CMHC, entitled "Homebuying Step By Step".

46 pages of text and graphics are accompanied by another 24 of checklists and worksheets, plus an index and glossary; the homebuying "steps" covered include

• determing your housing needs;
• understanding the housing market;
• determining your mortgage eligibility;
• building your team of helpers;
• arranging financing;
• high-ratio mortgage insurance;
• preparing the offer; and
• closing and moving.

The FREE publication is available in PDF format on the CMHC web-site, or in paperback form by calling 1-800-668-2642.

As a private seller, don't be shy about ordering a dozen or so copies to pass on to prospective buyers: CMHC pays the postage!

IT’S NOT ROCKET SCIENCE!

A few issues back we referred to an advertising campaign, by the Canadian Real Estate Association, designed to persuade homeowners that residential transactions are simply too complex to contemplate without the help of an agent.

Our testimonials page provides plenty of evidence that ordinary homeowners (or their lawyers) are quite capable of dealing with the "mind-boggling" transaction details that realtors sometimes trot out as reasons why you'll never be able to sell on your own.

Some of the issues they raise, however, can provide a useful framework for reviewing your by-owner campaign.

• Can you determine a realistic asking price?

  Within a few years, it may well be commonplace for homeowners to do their own appraisals online. Resources like the Calgary Herald’s " What’s Your House Worth?" feature, though rudimentary and not yet widely available, demonstrate the feasibility of placing sales data on the internet for all to use.

  For the present, sources of information on recent sales include realtors themselves (many will offer you a free Comparitive Market Analysis), recent MLS sales catalogs (available for viewing at shopping-mall realtor booths or local real estate offices), professional appraisals (costing $200-300, these objective written estimates can be a powerful negotiating tool), and your own eyes and ears (know what’s happening in your neighbourhood - check recent sales prices directly with owners or agents).

  (For more on market value and how to determine it, see Timely Tip No. 7.)
   

• Are you prepared to show the property at any time?

  Actually, as a private seller, you have more control over showings than when a realtor installs a lock-box on your door. Rather than having to have the place spotless every day when you leave for work, you can schedule showings to some degree.

  And if you’re systematic about it, keeping the house in showing condition should not be that onerous (see Timely Tip No. 1).
   

• How can you possibly match MLS exposure?

  The suggestion that only the MLS can present your property to hundreds of hungry realtors who are actively searching the market every day glosses over the fact that the only reason the realtors are looking is because buyers found them through their classified ads.

  You MUST run classifieds too! True, your expenses will be up-front and out-of-pocket. But eliminating the most expensive element in the "classifieds --> realtor --> home displays --> showings --> negotiations --> sale" formula make those outlays a very good investment.

  As well, your full-color Internet display allows your ads to be quite short, stating only your price, style, number of bedrooms, general location (NOT address), one or two special features and "see us at www.privatelist.com". And you also benefit, potentially, from the efforts of other PrivateList clients, whose ads, lawn-signs and highlight sheets bring buyers to the same web-site where YOUR property is on display!

  Finally, FREE online classifieds, word of mouth, search engines and link exchanges also help attract a steady stream of visitors to PrivateList.
   

• How do you know your "buyer" is even qualified to buy?

  You probably can't be as direct as a realtor in probing your prospects’ financial circumstances, but you can certainly refer them to our mortgage page, where they’ll find all they need to determine their own eligibility.
   

• Do you have the experience to survive the cut and thrust of face-to-face negotiations?

  The fact is, either you deal directly with your buyers or you endure the "cut and thrust of face-to-face negotiations" with your realtor - whose end-game priorities may differ from yours. In either case, be prepared!

  Successful bargaining hinges on two issues:
   

  • having a definite bottom line to stand on: What is the minimum dollar figure you'll accept? What are the ramifications if you don’t sell? Which items are negotiable (terms, possession date, inclusions, repairs) and which are not?
     
  • having a sense of your buyer’s priorities, limits and options: Why are they buying now? What do they like most about your house? What other properties might they be considering? What’s the state of your local market - and the objective market value of your property?

  Be as clear as possible on these points, speak plainly and maintain a "problem-solving" attitude, and your buyers may well respond in kind.
   

• Do you know how to handle all the details of closing?

  Actually, that’s what lawyers are for! You'll have to arrange for a moving company, of course, and notify friends, post office and various utilities of your change of address, but any questions relating to title, mortgage, etc. will be dealt with by your friendly solicitor.

  (For a summary of the closing process, see our Mar 1/01 issue.)

FRIENDLY REMINDERS . . .

Are the thousands of dollars you'll save by selling privately worth, say, an hour each week-end, spent reviewing your progress to date and mapping out your continuing campaign?

It's important to maintain an active marketing focus until your property is sold. Therefore, each e-mail version of this newsletter links to a series of reminders, tips and tools that lead to a sale!

To access these resources, press here.

©2001 PrivateList