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| 7 Common Mistakes Sellers Make
1. Over Pricing Every seller wants to realize as much money as possible when he/she sells. But a listing price that is too high often results in a less than market sales price. If your home or condo is not priced competitively, people looking in your price range will reject your property in favor of other, larger ones for the same price. At the same time, the people who should be looking at your property will not see it because it is priced over their heads! Overpricing usually increases time on the market, and that adds to the carrying costs. Ultimately, many overpriced properties sell below market value. 2. Under Pricing Some sellers only want a quick sale and they have enough equity to be able to sell under market value. When a home is priced well below market value it can cause potential buyers to wonder what is wrong with the property believing that if it sounds "too good to be true" it really is. If you price your home on the low side of market value but above your actual rock bottom price, you leave yourself with room to negotiate. To help avoid these two mistakes, I can prepare a Market Analysis for your property. 3. Using The "Hard Sell" During Showings Buying a house is an emotional decision. People like to "try on" a house and see if it is comfortable for them. It's difficult for them to do that if you follow them around pointing out every improvement that you made. It may even have the opposite effect you want, by making them feel they are intruding on your private space. Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own. Try a tasteful sign to point out some hidden amenity that they might miss. 4. Mistaking Lookers For Buyers For Sale by Owners always get more activity than homes with an agent. No questions about it. Realtors will only bring qualified buyers, and these will be fewer than if you open your front door to everyone who walks down the street. A qualified buyer is one who is ready, willing, and able to buy your home. We find that most people who go looking at For sale By Owners are just starting to think about moving. They may be good buyers, but theyīre just 6-9 months away from being ready. They don't want to bother an agent yet, so they call the "By Owner" ads to get a feel for whatīs available. They may have a home to sell first, or may need to save some more, or may have credit that needs fixing. When everything is in place, thatīs when they go out looking with a Realtor. An agent will ask a buyer how much he can really spend for a house, how much he has to put down, how good his credit is, how much he can pay each month, how much he will realize (realistically) when he sells his present home and about a dozen other questions. But unless your Realtor finds all the facts first, you must ask all these questions before the buyer crosses your threshold, otherwise,you may have a parade of Sunday afternoon shoppers with a dream of owning a home someday. 5. Not Knowing Your Rights And Obligations Selling Real estate is extensive and complex; the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or could cost you thousands for repairs, inspections, and remedies for title defects. You must know whether the property can legally be sold "as is", and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if your property is in conflict with local restrictions, you must remedy them before you can sell your home. 6. Limiting The Marketing And Exposure Of The Property The two most obvious marketing tools (open houses and classified ads) are seldom effective, Surprisingly, less than 1% of homes are sold at an open house. Agents use them to attract future buyers/clients, not to sell the house! Advertising studies show that less than 3% of people purchased their home because they called on an ad. When you hire a Realtor who puts your home on the Emerald Coast Association of Realtors' Multiple Listing Service (MLS) you are puting over 3000 Realtors to work for you. Every Realtor with a client looking for homes in your price range will have access to your listing. 7. Choosing The Wrong Real Estate Agent Itīs likely that you don't hire a real estate agent very often. You may choose one based on ads or someone else's recomendation. You should call the Agents you are considering and find out if they answer their phone. If you cannot reach your Agent, neither can potential buyers. You need an Agent who will answer your calls and be available to show your property. |