Home Seller Mistakes

Mistake #1 – Wrong Property Pricing

Perhaps the most challenging aspect of selling a home is listing it at the correct price. Every seller wants to get the highest possible amount of money for the property. The best way to do this is NOT to have your property listed at an excessively high price! listing the home too high can be as bad as too low. If the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be.

This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look. It may also cause buyers to lose interest before even seeing your property. By the time the price is corrected, you’ve already lost exposure many potential buyers who have most likely bought another home that was priced right. As a result, overpriced properties tend to take an unusually long time to sell, and eventually are sold at a lower price.

Mistake #2 – Failure to Make Your Property Stand Out

When you let potential buyers in the door in an attempt to sell your property, make sure the property’s exterior and interior look attractive! Cosmetic appeal is essential, so make any necessary repairs, clean, and make sure everything functions and looks presentable. You need to “package” it attractively to create demands by appealing to the potential buyers’ senses. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers. Whereas fast, inexpensive changes can help make your property stand out among similarly priced homes in your neighborhood. Remember…your neighbors maybe trying to sell their home too.

Mistake #3 – Mistaking Re-Finance Appraisals as the Market Value

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high or low price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing, or lower to protect the interests of the financial institution. Appraisers work on behalf of the lender, not you, even if you’re the one footing the bill. Your best bet is to ask your Realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #4 – Poor Showing Techniques

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

Mistake #5 – Trying to Sell to Lookers

A prospective buyer who shows interest because of a “for sale” sign he saw may not really be interested in your property. Often buyers who do not come through a Realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate. Your Realtor should be in contact with each and every showing agent or prospective buyer that has toured your home and find out what the intentions were of the original visit, what he or she thought of the home, the price, the location and condition, and to see if there is any potential of a coming offer-to-purchase. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new Realtor.

Mistake #6 – Being Ignorant of Your Rights & Responsibilities

It is extremely important that you are well informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold “as is”? Did you know that it is now state law that you disclose any and all know defects within your home/property? Where do you find a complete/thorough Sellers Disclosure? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money.

Mistake #7 – Signing a Contract with No Escape

Hopefully you will have taken the time to choose the best Realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your Realtor, or perhaps the Realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.

Mistake #8 – Relying on Traditional Methods and Limited Marketing of the Property

The traditional days of putting a sign in the yard and placing your property on the multiple listing service to get your property sold are long gone. Today, agents need to design specific marketing plans that will maximize the odds of you home being seen by that one special buyer. Usually, sellers use two the marketing tools of open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. Your Realtor should employ a wide variety of marketing techniques and be committed to selling your property. Chances are that you have a job, so you may not be able to get in touch will many potential buyers.

Mistake #9 – Choosing the Wrong Realtor

Selling your home could be the most important financial transaction in your lifetime. The vast majority of all homes are sold by real estate agents, but not all agents are the same. As a result, it is extremely important that you select the Realtor that is best for you. The agent’s experience, knowledge and marketing plan will have an enormous impact on your success. Experienced real estate agents often charge as much as brand new agents. Chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles.

Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you. Choosing the right agent will make all the difference in the world.

Mistake #10 – Unqualified Prospects

A buyer who can’t purchase your home is really not a buyer at all. It sounds simple, but thousands of hours are wasted everyday by showing properties and negotiating with precisely this type of “buyer.” Buyers should be pre-approved for a loan before you or your agent begin to work with them.