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As A Home Seller Have You Made Any Mistakes?
Can mistakes in selling a home be costly? You bet they can. Have you made, or heard of anyone make, any of these 9 common mistakes?
1. EFFECTIVE MARKETING. Since you are competing with other hoesellers out there, good marketing distinguishes your home from hundreds of others on the market. You should ensure that you sell your home's benefits, not just its features. Open houses and print advertising (the most obvious) are only moderately effective. Did you know that only 1% of homes are sold at open houses, and just 3% of people purchased their homes after seeing a print ad! There are many other methods that we use to attract buyers. We can provide you with a list of things we do to successfully market your home.
2. EMOTION VS MARKET VALUE. Basing your asking price on needs or emotion, and not market value is not the way to sell a home. The former is known as basing one's price on what is termed as Subjective Value. To an appraiser, subjective value is based on emotions. For example, how much a seller paid for their home, how much they love their home, and overall pride of ownership is considered subjective value. Objective Value, is what ALL appraisers base the true value of a property.
Setting the asking price of a property should always be based on Market Value. Appraisers call this objective value. Objective value looks at the condition of the property; it’s location; what properties with similar features in the same area have sold for; what other similar properties in the same area are listed for; the overall condition of the economy and real estate market; as well as the mood of the buyers.
By not pricing your property competitively, homebuyers will prefer to seek out larger or better homes in the same price range, thus increasing your time to sell --- i.e. days on the market (DOM). When your price is later lowered, but buyers notice that the DOM is high, they may be wary of your home because they may suspect other reasons the house has remained unsold so long.
3. PRESENTING YOUR HOME. A property that is not clean or well maintained often suggests other hidden defects that could increase the cost of future maintenance. Sellers should make necessary repairs, and spruce up the house inside and out, keep it clean and neat, long before the first showing. Don't risk chasing away those first potential buyers brought in by realtors. Very often it's one of those first few visitors who is the successful purchaser. If the appearance of the home is questionable, buyers will leave themselves a large margin for error for the cost of repairs, by reducing their offer price. As the seller, don't give potential buyers an excuse to lower their price.
4. OVER-IMPROVING THE HOME. Most buyers will base their decision on purchasing a home based on how they feel about the kitchen and bathrooms. If these areas of the home meet both their emotional and physical needs it makes it easier to sell a home. It is a good idea to get a real estate professional to do a market assessment of what your home is worth BEFORE improvements. The next step would be to get a written estimate for improvement costs; then have your real estate professional give you an update on the market value to determine how much more money your home will sell for AFTER improvements are made. This will let you know whether it makes sense to upgrade your home first, or to simply put it on the market the way it is.
Sellers may spend thousands of dollars doing the wrong upgrades to their home prior selling, expecting to recoup this cost. If you are thinking of selling, ask your real estate professional which upgrades are cost effective. Typically the most important and saleable areas of any home are the kitchen and bathrooms.
5. YOUR CHOICE OF REALTOR©. Don't choose your agent for the wrong reasons. Many homeowners make the mistake of listing with the agent who tells them the highest price, or one who is with a popular Real Estate company in the area. Remember it is NOT the sign that sells a home it is the real estate sales agent. Sellers should always choose the sales agent who provides the most experience and the one the seller thinks has the best negotiating skills. More experience could mean a higher price at the negotiating table, selling in less time, and with less hassles along the way.
6. FAILING TO TAKE THE FIRST OFFER SERIOUSLY. Many sellers believe that the first offer received will be one of many yet to come. This often ends up as a false hope. They tend to hold out for a higher price, especially if the offer comes in soon after the home is listed. Often the first offer ends up being the best one, and many sellers have had to accept less money than the initial offer much later on in the selling process, which adds more stress to all parties involved. The first 2 weeks of the listing term is critical. It is during this period that the home will usually get MOST of its action. Do NOT let the speed at which the first offer came in determine your decision to accept it or not.
7. THE "HARD SELL" DURING SHOWINGS. Buying a home is an emotional decision, and buyers are looking to see if a house is comfortable for them. Good Realtors© let the buyers discover the home's features on their own, pointing out only features they are sure are important to them, or ones that were surely missed. Overselling your home during showings make buyers think they are paying for features that are not important to them and it can lose the sale.
8. LEAVE THE SELLING TO YOUR AGENT. As the seller do not get involved in the selling process. Leave that to your agent. Try to avoid at all times to engage in conversation with potential buyers or their representatives. In fact, if at all possible it is wise to leave the home during any showing. Many a potential deal has failed as a result of a seemingly innocent comment from a seller.
9. KNOW YOUR RIGHTS & 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 your Realtor© fully explain the contract or have your lawyer review it before acceptance.
