Buyers always have an objection before they make a buying decision. Most of the time, the objection is just a delay for having to make a decision. You must always ask the buyer "to buy". Then you will get the buyer to usually give an objection. The best way to overcome an objection is by knowing in advance what roadblocks a buyer may have and planning your responses in advance so you can present it during your home demonstration before it becomes an objection.
Most objections you receive will be, "we'll think about it", or "we never make up our mind without sleeping on it" and "well talk about it and call you back" I suppose the worst part about selling a home "by owner" is the same as I'm used to hearing all the time even as a Realtor. This is a techniques that Buyer use all the time and don't even realize. They don't like your home enough to buy it, they know that full well when they're in the home, but they don't want to insult you. Instead, they act as though its the most perfect home they've ever seen. "when can you be out by", "are you leaving the refrigerator", "where is the property line".... Nothing is more disappointing to an owner than when these people never call back. Yet this is something you have to be prepared for. If I had a dollar for every buyer who said they loved a home and didn't buy it I would have retired years ago.
During the past four years as I volunteer teach a Selling Skills Seminar to real estate agents, I have found the best technique is to ask questions. Have your questions prepared and be ready to ask more. If you would like some examples, contact me. Also you may want to purchase a book on direct selling. They are available at book and office supply stores.
As they say "where the rubber meets the road" is in the negotiating process. You must try to remain unemotional and not be attached to personal values. It's always best to try and work out an agreement at the first presentation of an offer, because for you to call the buyer back later, weakens your bargaining power. Buyers sense you may be desperate.
One of the biggest issues with respect to "For Sale By Owner" properties is actually, in my opinion, one of the funniest ones. I had spoken to this gentleman who had called on one of my listings who told me he was "going to sell his home by owner so he could save the commission money." OK, I thought, that sounds typical. The next week I saw an ad in the paper for his home. The ad read as follows:
Shrewsbury - Deal direct with owner and save the commission,
beautiful 3 BR ranch on quiet side street priced for immediate sale etc.....
Now what I can't figure out it, who exactly is saving the commission etc, the buyer or the seller? They can't both save the same money. One of the things you need to watch out for is that Buyers react very different to a For Sale By Owner Home than to a regular listing. In a typical neighborhood where the listings have all sold at, let's say $200,000, a homeowner puts their own home on the market. Now, understand that for a Buyer to work with a Realtor doesn't cost them anything. As a result, most of the hot buyers aren't wasting time looking through the newspaper for a homeowner selling By Owner. Typically the ones who are out doing it By Owner thing think that THEY are going to be the ones who save the commission money. If they go into the house in the abovementioned neighborhood, and look at the By Owner listing for $200,000 they KNOW you're not paying a $12,000 commission, and so THEY want that Money. As a result, they often offer no more than $188,000 because they don't want Your net figure to be Higher, they want theirs to be lower. This is something which is extremely important to watch out for, especially when that differential profit margin is narrow enough to begin with. Don't be afraid to stand your ground. The home is worth what it's worth and if you're doing the work you deserve the rewards.
Equally important is knowing how to negotiate. Often times, price can be overcome with other techniques such as creative financing options, closing cost rebate programs, etc... Feel free to contact me if you need any more information or if you get into a sticky negotiation situation I may be able to help with.