8 Big Time
Mistakes
That cost you money when
selling
your home.
#1
Basing
asking price on needs or emotion rather than market value. Many times
sellers base their pricing on how much they paid for or invested in
their home. This can be an expensive mistake. If your home is not priced
competitively, buyers will reject it in favor of other larger homes for the
same price. At the same time, the buyers who should be looking at your
house will not see it because it is priced over their heads. The
result is increased market time, and even when the price is eventually
lowered, the buyers are wary because "nobody wants to buy a house
that nobody else wants". The result is low offers and an
unwillingness to negotiate. Every seller wants to realize as much
money as possible from the sale, but a listing priced too high often
eventually sells for less than market value.
#2
Failing
to "Showcase" the home. A property that is not clean or well
maintained is a red flag for the buyer. It is an indication that there may be
hidden defects that will result in increased cost of ownership. Sellers who fail
to make necessary repairs, who don't spruce up the
house inside and out, and fail to keep it clean and neat, chase away buyers as
fast as Realtors can bring them. Buyers are poor judges of the cost of repairs,
and always build in a large margin for error when offering on such a property.
Sellers are always better off doing the work themselves ahead of time.
#3
Over-improving
the home prior to selling. Sellers often unwittingly spend thousands of
dollars doing the wrong upgrades to their home prior to attempting to sell in
the mistaken belief that they will recoup this cost. If you are upgrading your
home for your personal enjoyment - fine. But if you are thinking of selling, you
should be aware that only certain upgrades are cost effective. Always consult
with your Realtor BEFORE committing to upgrading your home.
#4
Choosing
the wrong Realtor or choosing for the wrong reasons. Many homeowners
list with the agent who tells them the highest price.
You need to choose an experienced agent with the best
marketing plan to sell your home. In the real estate
business, an agent with many successfully closed transactions usually costs the
same as someone who is inexperienced. That experience could mean a higher price
at the negotiating table, selling in less time, and with a minimum amount of
hassles.
#5
Using
the "Hard Sell" during showings. Buying a home is an
emotional decision. Buyers like to "try on" a house and see if it is
comfortable for them. It is difficult for them to do if you follow them around
pointing out every improvement that you made. Good Realtors let the buyers
discover the home on their own, pointing out only features they are sure are
important to them. Many sales are lost by overselling. If buyers think they are
paying for features that are not particularly important to them personally, they
will reject the home in favor of a less expensive home without the features.
#6
Failing
to take the first offer seriously. Often sellers believe that the first
offer received will be one of many to come. There is a tendency to not take it
seriously, and to hold out for a higher price. This is especially true if the
offer comes in soon after the home is placed on the market. Experienced Realtors
know that more often than not the first buyer ends up being the best buyer, and
many, many sellers have had to accept far less money than the initial offer
later in the selling process. The home is most saleable early in the marketing
period, and the amount buyers are willing to pay diminishes with the length of
time a property has been on the market. Many sellers would give anything to find
that prospective buyer who made the first, and ONLY, offer.
#7
Not
knowing your rights and obligations. The contract you sign to sell your
property is a complex and legally binding document. An improperly written
contract can allow the purchaser to void the sale, or cost you thousands of
unnecessary dollars. Have an experienced Realtor who knows the "ins and
outs" fully explain the contract you are about to sign to you, or have your
lawyer review it before acceptance.
#8
Failure
to effectively market the property. Good marketing opens the door that
exposes the property to the marketplace. It means distinguishing your home from
hundreds of others on the market. It also means selling the benefits, as well as
the features. The two most obvious marketing tools (open houses and print
advertising) are only moderately effective. Just 1% of homes are sold at open
houses, and advertising studies show that only 3% of
people purchased their home because they called on a print ad! Agents use these
tools to attract future prospects, not to sell the house. The right Realtor will
employ a wide variety of marketing activities, emphasizing the ones believed to
work best for your home.
Being aware of these Big
Time mistakes will help ensure you receive top dollar for your home when
the time comes to sell your home!
