To make the most money you can from the transaction of selling a home, you should do the most you can to bring the best price possible for your efforts. The easiest way to do that is to avoid the 7 most common mistakes in selling that nearly all sellers make:
- Choosing an agent based on how high a price
After providing you
a comparative market analysis, examining your home, viewing your
competition in the neighborhood, and giving you an honest
opinion of what the home should get in todayís market, your
agent should have a pretty good idea how much and how quickly
your home will sell.
But you may have your own ideas. You want top dollar, even if there is no warranty. To get the listing, the agent may sense this and list what you want. Why? The agent knows that after the home doesnít sell, you may allow a price reduction. Then the home will sell. The problem is that you will likely end up with less than what you can get. Why? Buyers will check how long it has been on the market. If it has been too long, they think "bargain", so they will offer a significantly lower price than a good agent would have priced your home in the first place.
- Choosing agents who advertise only in the local market
Many agents still arenít ready for the Internet or other kind of national and international marketing campaign. If your agent doesnít have a marketing plan that includes national exposure, that agent is relying too much on local agents to sell your home. If you are lucky, youíll get a newspaper advertisement and an open house. Shouldnít you be getting more for your money then that?
- Overpricing the home
It is human nature to regard what belongs to us with the eyes of love. Arenít our children more beautiful? Our homes are no different, so that is why almost all sellers are tempted to overprice their homes. A high price will scare off buyers. Most buyers are pre-qualified. They know what range to look in. If your home is overpriced, they will compare it to other homes in the price range, and bypass it.
- Putting too much value on personal improvements
Most people customize a home when they move in. You like wallpaper, another likes grass cloth. Swimming pool you put in for $30,000 is terrific, but the next buyer may view it as a financial drain. Especially, it is over 10 years old, they can be repair and maintenance nightmares. A good way to avoid this trap is to treat yourself as a buyer, would I make this kind of improvements and find out what home improvements generally bring in resale value.
- Mistaking activity for interest
When people are interested, they make offers. If they arenít making offers, something is holding them back. Many agents routinely ask for feedback whenever your home is shown, but a lot of agents donít follow through with this courtesy. But feedback is crucial to understanding why you arenít getting offers on the home. The lack of response is usually due to three things: The home is in poor condition. It is outdated. It is overpriced.
- Failing to prepare the home for sale before it goes on the market
Preparing the home for sale can include everything from spring cleaning to repainting to clearing out clutter to making repairs, and so on. Itís hard
Many people leave their exteriors and interiors as is, but if you havenít updated in years and the home looks tired, your home will not compare as well as others who have taken the time and gone to the expense to update the home. Also keep in mind that you are competing not only with homes in the neighborhood but with new homes as well. Todayís buyer wants what the new homes have. If they canít get it, they will settle for a mature home with fresh paint and everything in working order.
- Failing to pay attention the advice of experts
Many sellers like to remain in control by telling the agent what to do and do not pay attention the advice of experienced real estate agent. A good agent usually is well trained and has experience in the marketplace. Part of that training includes evaluating your reasons for selling before you put the home on the market. The agent will price the home and set your terms for the marketplace. If this job is done correctly, the home should be priced fairly for a reasonably quick sale.
If sellers are willing to listen and take into
consideration what the agent is saying, they will know they are
getting sound advice.
John MK Lam