Top Ten Successful Real Estate Negotiation Strategy Elements for FSBOs

Photo by Matt Seymour on Unsplash

I have been working with FSBOs and selling their houses since 1984, and I must tell you that I don’t think I have ever sold ant ones house. I don’t think any for-sale-by-owner has sold their own house. What I do is help FSBOs get exposure for their house.

The house sells itself.

Sure I’ve been in the middle of a lot of transactions. And more recently, I have helped and instructed on a lot of transactions, so I have seen a lot of what does and doesn’t work.

Smart people, today’s people, don’t usually get sold anything. They will sometimes buy stuff that they like or need.

That’s why I shiver when I have a new customer that confides in me that they used to be in “sales” or maybe even a “real estate agent,” as if to prove to me they will have a very easy time of selling the house.

They sometimes think thet know just what to do to sell that house, but in reality, there is really nothing they can do to sell the house. The house will sell the house. If they will stay out of the way.

So today, we’re going to look at ten very simple yet successful steps to negotiate our own home sale. Please pay special attention to 3, 6, and 7, as they are almost counterintuitive at first blush, but they give high-octant results. On the questions and statements I give you, use them exactly, verbatim, even if you have to practice them in front of a mirror.

1. Pictures

Pictures are key. The reason and purpose of pix are to grab attention. The purpose of the primary or first pic is to capture the attention of a prospective buyer who is just at the point of skimming through listings to see if any interest them. It’s got to pop to stand out and cause them to want to see more photos. That’s its only purpose- to get them to the next level of pictures.

2. Captions

I strongly suggest you spend a little time and use the captions feature with your pictures. It gives you a chance to sell the sizzle with the steak, and explain unseen features, as in “we put all new cat 5 cable behind this wall,” or “out this window is a beautiful view of your garden spot.” The purpose of these pictures is to cause a prospective buyer to want to see your house in person.

This is what you, as a seller, needs to happen because, firstly, nothing ever happens without a conversation, and secondly, even if you can’t sell your house, it will sell itself when the right person comes through the front door and the magic happens. Like it did when you first saw it.

3. Tour/Conversation/Open House

Even though conversation is necessary for a sale, it’s not necessary right now. “You folk know what you’re looking for – just make yourself at home. I’ll be right here on the couch if you have any questions, just holler up!” Never give the tour but don’t leave the house, either. Be there if they do have a question. For the most important parts of the house, (the things you would probably point out if you were to give a tour,) you should use what I call a “tent sign.”

A tent sign is nothing more than a 3×5 index card on which you print the picture’s caption, or that which you would point out if you were giving the tour. Stick them on the wall or bend them long-wise until they make a small tent, and set them up om a piece of furniture at the right spot.

Even if you have a lot of them, your house will turn into an Easter egg hunt, and the tour will be much more effective than if you had been giving it yourself. Also it will take a lot of pressure off the prospects.

4. The Magic Happens

When the magic does happen, you can see it on their faces when they first strep into the foyer, the kitchen, media room, master bedroom or garage, depending on who the top priority buyer is. A big smile and a muted “this is nice” will clue if you happen to be within close proximity.

But again, you should be on your couch in the den or living room, so you probably wouldn’t hear it.

5. What do you think?

Dial down the pressure. This one question will give you a hint, without pressure, if they only reply “I like it,” go on to the next question. If they say it’s a little more than they can spend, there are other things we will discuss soon that can help tight budgets without discounting your house.

6. Need the old refrigerator?

Will you be needing the old refrigerator?

7. No text or email

Person to person only. Even voice mail is more personal than the technology and personally is what we need now.

8. Have you got your mortgage started?

Don’t pick at the answers. This will give you hints how far they are along the buying path. If they shut you down, you can reply, “I just wondered if you needed any names or numbers.” Don’t try to use an agent’s blank purchase agreement, because it’s way longer than you need and its copyrighted, too. visit a closing company and ask in return for using them, would they give you a blank purchase and sale agreement. I have one that I have permission to give my customers, but chances are you won’t have one until you get one.

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9. When do you want close?

If all the buying signals are pointing to yes, you will need this date to fill out your agreement.

10. How much are you puttin’ down and who’s your attorney

Since you already talked to one to get your blank agreement, tell the buyer of to use yours unless they have a favorite. Both of you sign and date the completed agreement. Give the buyer the original to take to their mortgage company, and you keep a copy for yourself, too.