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#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 weary
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 salable 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.
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