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8 Big
Time
Mistakes
That cost you money when
selling your home.
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#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 favour 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
favour 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
Reprinted with permission from the Selling a Home website.
