If you have a property that you really need to sell, you know that today’s market doesn’t make it easy. Home sales plummeted in 2008 and didn’t recover too well in 2009.
Foreclosures, bank-owned properties and empty builder homes are creating fierce competition for sellers. You need an edge to move your house(s) fast while still making the maximum profit.
Selling a house fast doesn’t have to mean selling it dirt cheap if you know the right tools to capture the competitive edge. The “S.O.L.D.” system can help you sell your house in the shortest period of time for the maximum price.
How?
By practicing the following concepts, based on the acronym S.O.L.D.:
Staging
The “S” stands for “Staging.” Staging is not a new concept, but it is one that has taken on much more importance in the present market conditions. Staging is basically getting your house fixed up, cleaned up, and dressed up so that you can show it in the best possible light to all potential buyers.
It is all about presentation. It is “showmanship.”
For example, if you have an empty house, it is less likely to sell than one that is furnished. You don’t have to completely furnish the house, but hand towels, candles, flowers, and small, well-placed items of furniture go a long way in giving a “homey” feel to your buyer.
If someone is still living in the house, you need to get rid of clutter as much as you can. If you have been living in the home, consider storing half of your clothes, furniture and “junk.”
Network with your contacts to find someone who can help you professionally “stage” the property if this is your weak spot.
Offer attractive terms
The “O” stands for “Offer Attractive Terms.” This is essentially offering terms that buyers cannot refuse. Not only should you offer your buyers a house that is staged properly, but you should be flexible on the terms of purchase as well.
That doesn’t mean you will take less than the fair market value, but it does mean that you may be able to bend in the way that the price is ultimately paid off.
There are several “owner financing” techniques and strategies that can allow you to structure the sale of a house in a way that is both advantageous and beneficial to you, as well as allowing your buyer to obtain the house in a way that will work well. It can be a win/win transaction for both you and the buyer.
For example, you can offer to carry back a portion of the purchase price so the buyer does not have to put down a down payment. Have the buyer sign a note for the difference between his loan and the purchase price and secure it with a second mortgage on the property.
Learn your competition
The “L” stands for “Learn Your Market and Your Competition.” You must do the work it takes to get the education you need to price the house properly from the get-go. You must determine what other homes similar to yours are selling for so that you can price your house as close to the true market value as possible.
To get a feel for the area, make open houses in your area a priority to attend. Then you can see firsthand what other homes have to offer, and you will know what you have to do that will give you the edge over your competition. If you want the maximum sale price in your pocket, you have to do your homework and due diligence.
Online websites such as Zillow.com can help you with values, so long as you do your own due diligence. In other words, don’t rely on Zillow’s valuation model. Instead, use it to gather information about houses that have sold in your neighborhood and drive around to determine how these properties compare to yours in value.
Develop a killer marketing plan
Finally, the “D” in the S.O.L.D. system stands for “Develop a Killer Marketing and Sales Plan.” This is where the planning and decision making takes place.
You have learned how to stage your house for a quick sale, you have decided on the different financing techniques, and you have gathered information and data as part of your “due diligence” so that you will be in a position to make wise and profitable decisions concerning the fix up, staging, financing, and sale of your home.
The more your can learn about your market, the more you will have the competitive edge on your competition. Now it’s time to put the final step in place — letting others know your property is there.
A killer marketing plan includes a lot more than just listing it for sale on the multiple listing service. Posting fliers in the neighborhood, using internet marketing (such as Craigslist.org and backpage.com), and hosting open houses are crucial to your success in getting people through the front doors and ultimately getting it sold.
Marketing takes creativity and thinking out of the box. Are there small businesses near the property that will allow you to leave your sale fliers? Can you get great word-of-mouth going through friends and family?
Make a marketing plan and out it on a 90-day timeline. If your property has not sold in three months, look at your marketing plan and expand it.
Properties that sell are the ones whose owners and investors did the extra legwork. Hustle and you will get it S.O.L.D.!
William Bronchick is the CEO of Legalwiz Publications and a nationally known attorney, author, entrepreneur and speaker. He has trained people all over the country to become financially successful, speaking to audiences of as many as 16,000 at “Get Motivated” events. His best-selling book, Flipping Properties, was named one of the 10 best real estate books of the year by the Chicago Tribune.
Tags: foreclosures, marketing plan, owner financing, REAL ESTATE, staging