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The
Top Ten Mistakes Home Sellers Make
Courtesy of Judy
Weichold, Broker Associate, CRS, GRI
It's wise to follow the
examples of others and learn by their mistakes so that your
move will be a sane and sound one. Here's a list of ten mistakes to
avoid -
1) Reason for
Selling Have you purchased another home? Are you relocating
to another area? Are you in a financial crunch? There are many
motivations for selling and let's face it, we'd all have 'For Sale'
signs in our yards if we could totally control our selling price. The
truth is, the difference in selling because you want to and because you
have to affects every part of your home sale: when you list your home,
how you price it, and how you choose to market it. If you and your
spouse or partner aren't of the same opinion, it could send mixed
messages to agents and any prospective buyers who walk through your
doors. If you're on the fence as far as selling or moving up, give me a
call. I can help you make a good decision - one that's in your
best interest. Keep in mind, before you sign a
listing agreement, you'll need to have a handle on your future housing
plans ie: buying, renting etc. You'll also need to know the tax
ramifications of your sale........
2) Putting a home on
the market before it's spruced up If you don't properly prepare
your home for the market, most buyers will not be able to visualize your
home after improvements and with their furnishings and color schemes.
What they see is what they get. If buyers can't visualize your home
fixed up, they won't be able to see themselves living there. Because of
their inability to emotionally transfer into your home, they won't make
an offer. Then, your home will sit on the market and become shop worn,
which ultimately leads to low ball offers from the small percentage of
buyers who have the ability to 'see beyond'. Unless you feel like
sitting on the market for a few months and giving away lots of money,
clear away the clutter, make necessary repairs, freshen up the
landscaping, repaint and replace outdated items.
I can help you 'stage' your house for higher profits. Keep in mind
that your friends and associates will also be able to view your home on
the web.....
3) Choosing the wrong agent Don't make the
mistake of believing 'all agents are alike'. And don't choose an agent
because he/she is a good friend, because he/she has sent you a Christmas card
every year since you moved in, or because you have used him/her in the
past. None of that holds water. You want to select the best agent, one
who: communicates well with you, listens to and understands your needs,
knows the local market conditions, is techno savvy and has a proven
track record. Most importantly, select an agent based on comments from
his/her past clients. Insist on getting references. A lot of new agents
are getting into the business these days. Often they're from technology
fields and lack the years of experience of the seasoned agents. On the
flip side, a lot of seasoned agents aren't adapting to the latest
technology. Choose the best of both worlds - an
experienced agent with years of local, full time experience who is up to
date with the latest high tech marketing and communication methods.
4) Overpricing Your Home Basing the list price of
your home on the price you'd like to get rather than on market value is
the surest way to have your home sit on the market. Market value
determines the price of your home - not wishful thinking. That's not to
say you shouldn't test the waters a bit, but sellers who price their
homes far above the recent sales may wait a long time before selling, if
they ever do. Before buyers make offers, they have taken time to educate
themselves on the market and recent sales. If they believe your home is
overpriced, they think that you are either not motivated or not educated
on the current market, and that negotiations will be very difficult.
That being the case, they will probably make an offer on another house.
Overpricing generally causes excessive market time. Excessive market
time is a seller's enemy and a buyer's friend! Pricing your home
correctly at the start is the best want to make sure you sell at the
strongest price obtainable!
Realistic pricing is
important in any market - in a seller's market, multiple offers will
drive the price up. In a buyer's market, realistic pricing means
your home will sell first.
5) Hanging Around During Showings If
you were a buyer, how would you feel if a seller followed you around the
home and looked over your shoulder as you peek at into his/her closet?
Most buyers are not comfortable viewing homes when the seller is
present. It is best not to be there when an
agent shows your home.
6) Limiting Access To Your Home If people can't get in to see
your home when they want, they will more than likely pass it by and move
on to the next house. If they don't see your home, they will never make
an offer. You should give your agent nearly free reign to create a
timetable of showings that will meet the needs of most buyers.
Flexibility is key. While that means you'll have to stay on top of the
housekeeping and keep your home 'showing ready', you will be giving your
home maximum exposure and that sells homes faster.
If they can't see it, you can't sell it!
7) Listing with a contingency to find a replacement home Listing
with a contingency to find a replacement home is like saying your home
might be for sale if you can find an acceptable property to
buy. What if you don't find that property? Including that caveat in a
listing might lessen your negotiating power and limit the field of
buyers - it depends on the market. What alternatives are there? Think
ahead about selling and moving in with family or to temporary housing
for a while. Consider listing your home with the provision that you may
need to rent back for a period of time after closing. Renting back can
be costly, however, especially if your buyers monthly costs are much
higher than yours. On the flip side, what about accepting an offer
contingent on a property selling? My answer? You
need the help of an experienced agent to help you make a good decision
regarding moving up or moving down in this market!
8) Smelly Pets and
Odors Strong odors from pets, smoke, cooking, etc. are a turn-off to
many buyers. If you're going to put your home on the market, and you
have kids, animals or are a smoker, make sure you have your home cleaned
from top to bottom. If you're a smoker, stop smoking in the house and
have the carpets and curtains professionally cleaned. On the day of a
showing, make sure your pets are crated or contained in an area such as
the garage, side yard, etc. If you can smell it,
you can't sell it.
9) Refusing to counter a low offer Sellers want to sell high;
buyers to buy low. A low offer from a pre-approved buyer is better than
no offer at all. The message you send back is in your counter-offer.
Even if you come back with a modest price change, you suggest to the
buyer that you're willing to entertain a serious offer, but that the
current offer won't cut it. By not responding at all, you risk annoying
the buyer. Most buyers will not write an offer on a home unless they
really like it and want to buy it. Often, a buyer considers their
initial offer as a 'start' point. Keep the momentum and their enthusiasm
going. Experience indicates that your first offer may become your best
offer. In a seller's market, multiple offers are common
- you need to know your options with counteroffers and multiple
counteroffers. In a buyer's market, creative counteroffers can
result in a win-win deal!
10) Failing to get
a 'termite' report (or other indicated reports) before listing a home
for sale. Sellers are often required to pay for eliminating
'Section 1' damage ie: termite infestation or fungus, before closing the
sale on their home. They may also be asked to correct other defects.
Sellers who know the condition of their home before they sell are in a
better position to negotiate a firm sale because they can disclose
existing reports on the property to buyer before they make an offer.
Inspections and disclosures can now be posted on our Paragon MLS system
for other agents to download. Ask me about the
pre-listing inspections I'd recommend for your home.
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