#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 for your home when the time comes to sell your home!
Reprinted with permission from the Selling a Home website.
