COMMON SELLING MISTAKES
Overpricing Your Property
It’s important to refer to comparative market reports when pricing your property. Examples of such reports include the Comparative Market Analysis (CMA), and Uniform Residential Appraisal Report (URAR).
When your home is overpriced, you help your competition. A technique sometimes used by real estate agents is to first show an overpriced home, then show a similar market priced home. This technique helps the market priced home easier to sell, since it is the better buy.
An overpriced home is often avoided altogether. By showing overpriced homes, an agent can jeopardize their relationship with the buyer. The buyer may think it a waste of time, or wonder if the agent has their best interests at heart.
An overpriced home can remain on the market, become "shop-worn" and even harder to sell. The longer a home remains on the market, the harder it is to generate interest in it, and the eventual selling price can be less than market value.
By listing your home at market value, you can generate the greatest amount of interest and competition for it, resulting in the best possible selling price.
Failing to Prepare Your Home
It's essential that your home be clean, well-maintained and in turn-key condition just prior to marketing it for sale. The fewer repairs the buyer has to make, the more they'll likely pay for your home.
Assuming you've maintained major components of your home (roof, foundation, plumbing, electrical, heating, cooling, kitchen, baths, etc.), preparing your home for sale includes correcting normal deferred maintenance. Do not undertake major capital improvements unless necessary. You'll likely not recover their cost when you sell.
A thorough inspection of the exterior and exterior of the property is necessary to determine what maintenance is needed. Anything not in good condition should be repainted, repaired, replaced or otherwise corrected. Be willing to pay for professional inspections and repairs.
Two-stage exterior inspection
Walk around the exterior twice. The first time around, note the condition of the roof, gutters, downspouts, roof vents, TV antenna, chimney, etc. Depending on roof construction, look for roofing material (shingles, shakes, tiles, bitumen, felt, mineral aggregate, etc.) in need of replacement or repair. Access a flat pitched roof with a ladder or through an interior access opening. Do not walk on a built-up roof.
The second time around note the condition of the exterior paint, siding, windows, window openings, walkways, driveway, entry stairs and railings, landscaping, fences, vents, plumbing fixtures, etc.
Interior Inspection
Begin an interior inspection from the top floor and work your way down to the basement. On any given floor (including a single-level property), inspect contiguous areas systematically. Do not skip from one part of the home to another. Operate every door, window, electrical switch and outlet, plumbing fixture, etc. Note any ceiling stains (potential roof or plumbing leaks).
Professionally clean the interior. Replace floor coverings which display excessive wear. Paint where necessary. Consider hiring a gardener to keep the grounds in good condition while you're selling.
Remodeling Prior to Selling
Remodeling your home prior to selling may not be economical. For example, spending $50,000 on a bedroom addition may not increase the value of your home by $50,000.
Capital improvements which may be economical are those which result in your home conforming to the neighborhood. For example, if you own a home with one bathroom and the neighborhood consists of homes with two bathrooms, then adding a second bathroom might be economical. Adding a third bathroom would not be. Consult your Realtor before improving your home.
Not Marketing Your Property Well
If your property gets only limited exposure, you may not get the best price for it. A good marketing plan provides maximum exposure. Such a plan will differentiate your property from the others on the market.
Two familiar marketing methods, open houses and print advertising, are surprisingly ineffective. Only 1 percent of homes are sold at open houses, and advertising studies show that only 3 percent of people purchased their home because they called on a print ad! Select a Realtor who will employ a wide variety of marketing activities, particularly those best suited to selling your home.
Failing to Take the First Offer Seriously
Some sellers believe that the first offer received will be one of many to come. As a result, there is a tendency not to take it seriously enough and to hold out for a higher price. This is especially true if the offer arrives soon after the home is placed on the market. A good offer is composed of more than just price. The terms of the offer, and the ability of the buyer to meet those terms are critical. Give sufficient weight to reasonable terms and a strong buyer.
Real estate is more likely to command a higher price early in the marketing process. The longer a property is on the market, the less likely it will sell at market value. "Who wants a property that no one else wants?" Take the first offer seriously; often it is the best. Many sellers would give anything to find that prospective buyer who made the first, and only offer.
Trying to Sell Your Home
Buying a home is an emotional decision. It's important to help prospective buyers feel as comfortable as possible in your home. If your Realtor asks you to be absent from your home while it's being shown--be absent!
Out of respect for you, buyers viewing your home in your presence usually won't state their genuine concerns. Addressing a buyer's concerns is part of a Realtor's job. If the Realtor doesn't know their concerns, she can't address them and sell your home!
Some sellers want to guide the potential buyer through their home in order to point out particular upgrades and valuable amenities. Discuss these with your Realtor so that she may relay this information.
Not Understanding Your Contractual Obligations
Carefully read and understand your 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 money. Make sure that it's clear who pays for the various fees incurred in the transaction. Review the dates on the contract and understand any penalties potentially caused by missing them. Also, its important to know under what circumstances the contract may be terminated.
Ask your Realtor about other tips!