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Mistake #1 – Incorrect Pricing
Every seller naturally wants to get the
most money for his or her product. The
most common mistake that causes sellers to
get less than they hope for, however, is
listing too high. Listings reach the
greatest proportion of potential buyers
shortly after they reach the market. If a
property is dismissed as being overpriced
early on, it can result in later price
reductions. Overpriced properties tend to
take an unusually long time to sell, and
they end up being sold at a lower price
than they likely would have had they been
priced properly in the first place.
Mistake #2 -- Mistaking Re-finance
Appraisals for Market Value
Re-finance appraisals can be very
encouraging for homeowners, leading them
to assume that the appraisal is the amount
that they should expect to receive for
their property. Lenders often estimate the
value of your property higher than it
actually is, however, in order to
encourage re-financing. The market value
of your home could actually be (and often
is) lower. 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 #3 -- Failing to "Showcase"
In spite of how frequently this mistake is
addressed and how simple it is to avoid,
its prevalence is still widespread. When
attempting to sell your home to
prospective buyers, do not forget to make
your home look as pleasant as possible.
Make necessary repairs. Clean. Make sure
everything functions and looks
presentable, and remove as many
possessions as you can prior to showing. A
poorly kept home, or one with too much
clutter, will make it dramatically more
difficult for buyers to become emotionally
interested in your property.
Mistake #4 - Trying to "Hard Sell" While
Showing
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.
Pointing out any unnoticed amenities and
being receptive to questions is advisable,
but this is not the time for negotiation
and salesmanship.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest
because of a For Sale sign or an open
house ad may not really be interested in
your property. Often, buyers who are not
accompanied by a Realtor® are 6-9 months
away from buying, and 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 able to
distinguish realistic potential buyers
from mere lookers. Realtors®
should usually find out a prospective
buyer's savings, credit rating, and
purchasing power in general. If your
Realtor® fails to find out this pertinent
information, you should do some
investigating and questioning on your own.
This will help you avoid wasting valuable
time marketing to 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 of 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 any contract. Can the
property be sold "as is"? 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 - Limited Marketing
There are two obvious marketing tools that
nearly every seller uses: 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. In fact, Realtors®
often use open houses solely to attract
future prospects, not to sell that
particular house. Does your Realtor®
have a website? There are very few
successful real estate professionals who
don’t, and for good reason.
Your Realtor® should employ a wide variety
of marketing techniques and should be
committed to selling your property; he or
she should be available for every phone
call from a prospective buyer. Most calls
are received, and open houses are
scheduled, during business hours, so make
sure that your Realtor® is working on
selling your home during these hours (many
Realtors®
work part-time). |
