Selling a home can be time consuming and challenging. Take time to research the real estate market, talk with local real estate experts and avoid mistakes that can cost you literally thousands of dollars.
Here are just a few of the most common mistakes to look out for…
Pricing Your Home Out of the Market
The most common selling mistake is pricing too high. Pricing your home out of the market will keep buyers at bay and may even drive them to your competition. In addition, overpriced homes tend to sit on the market much longer, eventually resulting in price reductions, waning interest from potential buyers and agents, lower offers, greater financial losses.
Conversely, pricing too low can also be disadvantageous. Naturally you want the most money for your house. Getting help from an experienced REALTOR can be helpful in pricing your home properly for the current market.
Leaving Money on the Table
Not making necessary repairs or improvements that increase the value of your home always ends up costing you more. Buyers typically deduct 3-5 times the actual cost of the repair from the asking price. Bottom line…it’ll cost you by trying to sell “as is” or not making repairs BEFORE placing your home on the market. On the flip side, over-improving can also cost you money that you may not get back from the sale. Your REALTOR can help guide you on what repairs/improvements make the most sense and have the best return on your money.
Difference of Opinion
Re-finance appraisals and home purchase appraisals are very different. As is the assessed value listed with the county auditor. Many homeowners are misled into thinking that because their home appraised for more money when they re-financed that they should be able to get that amount when they sell. In addition, auditor values are usually off by 20-35%. To avoid potential appraisal issues and having to renegotiate the price or lose the deal, it’s best to use on current market conditions and comparative sales when pricing your home.
Playing Hostess and Making Conversation
Yes, you’re excited. You have buyers and agents viewing your home. That’s excellent. However, being home while your home is being shown is not a good idea. It’s always best to leave. Buyers will relax and take more time viewing your home if you’re not
there. In addition, when home during showings, most sellers freely answer questions from the buyer and agents without realizing they’re divulging too much information, and risk losing much of their negotiating power when they get that buyers offer. Let your REALTOR do the talking.
Denying Access
It’s difficult to sell a home that buyer’s and agents can’t see. Avoid showing restrictions during normal hours, as well as refusing or canceling showings. Make your home as easily accessible as possible, within reason. Otherwise, you’ll become known as a difficult seller and showing requests could be greatly reduced.
Getting Emotional
It’s easy to allow personal sentiments to take over, distorting reality and leaving you feeling like the home is worth much more than the market is willing to pay for it. Be sure to use reliable information and current market conditions to make a sound decision in setting a price. Keep things in perspective.
Not Responding to Offers
Just because you received one offer does not mean more offers will follow. A major mistake is not taking all offers seriously, regardless of what the offer is. Worse than not taking an offer seriously, is flat out not responding to it. Are you willing to risk losing an opportunity to get your home sold? Experience has shown that the first offer is usually the best. So, respond to ALL offers.
Keeping the Gloves On
The majority of offers will be negotiated a round or two before all parties agree to the terms. It’s important to be flexible during negotiations. Remember, both parties want the same thing, so take the boxing gloves off. A willingness by both parties to compromise is key to any successful transaction. As long as you are not in a disadvantageous position, offer flexibility to come out with a winning result.
Shying Away From Creative Financing
Price is not always the most important part of the deal. Income level, tax benefits, purchase terms can also be important factors when a buyer is considering your home. Market conditions, buyer/seller/balanced market, can also make a significant impact on whether it makes more sense to do a straight sale or carry financing or offer a lease option, land contract or rent-to-own type deal. By staying flexible and open to options, you’ll greatly increase your getting what you want.
Refusing to Play
Smart buyers will always negotiate. They very seldom offer full asking price. You need to be prepared to play the game. Price it to attract buyers, negotiate it to win.
Missing Opportunities
Take advantage of market fluctuations. For example, in a downturn or buyer’s market, buying is ideal. Think about it, if your $200,000 home has dropped in value 18%, so has the $350,000 home you’ve had your eye on buying. By making your move now instead of later, you might lose $36,000 on your current home sale, but you’ll save even more, $63,000, on your next home. Take advantage of the benefits of market fluctuations.