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THE 9 MOST DEADLY MISTAKES YOU CAN MAKE WHEN SELLING YOUR HOME:
Deadly Mistake No. 1: Pricing Incorrectly
Every seller wants to get as much money as possible when selling a home. It sounds contradictory, but sometimes marketing your home at a lower price will actually net you MORE MONEY! It’s true, a listing priced too high often gets the seller less money.
If your home is not priced competitively, people looking in your price range will reject it in favor of other, larger homes for the same price. At the same time, the people who should be looking at your home will not see it because it is overpriced.! Overpricing usually increases time on the market, and adds to the carrying costs. Time on the market creates a negative perception among buyers. One of the two most popular questions that buyers ask is “How long has it been for sale?” Ultimately, many overpriced properties sell below market value.
The best way to help avoid this is to use a “pricing strategy”. Too many homeowners and agents just “try” a price on to see how it works and then make a change if it seems like a good idea. A specific pricing strategy can be used to obtain the highest price for your home, not just a try it and change it pricing strategy, but a detailed, consumer driven plan that will help get you the most money.
Last, but not least, you need all the information possible to help select the right price. You should learn:
*The difference between cost and price
*What market value really is
*How the principles of progression and regression apply to your home
*How much bargaining room to leave in your process
*How the principle of substitution affects your home’s value
*Plus many more insider secrets!
Any agent should be able to explain these terms and methods applied in pricing. Once you learn these principles, you’ll know how to sell your home for the best price. Not only that, you’ll know how to avoid paying too much for any home you buy in the future!
Deadly Mistake no. 2: Failing to “show case” the home
Buyers look for a home in which they would like to live, not a house. Owners who fail to make necessary repairs, such as sprucing up the house, touching up the paint and keeping it clean can chase away buyers. As a matter of fact, there are so many things that you can do to gain top dollar for your home, and many don’t cost you anything except “sweat equity”
If you were selling a car, you would wash it, or maybe even detail it to get the highest price. Houses are no different. Ask for our report explaining the steps you should take to get the highest price for your home. We’d be happy to send it to you.
Deadly Mistake No. 3: Using the “Hard Sell” during showings
Buying a home is an emotional decision. People like to “try on” a house and see if it is comfortable for them. It’s difficult for them to do that if you follow them around pointing out every improvement that you’ve made. It may even have the opposite affect you want.
Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own. Try a tasteful sign to point our some hidden amenity that they might miss.
Deadly Mistake No. 4: Mistaking lookers for buyers
For Sale by Owners nearly always get more activity than homes listed with an agent. No question about it, Realtors will typically bring only qualified buyers. A qualified buyer is one who is ready, willing and able to buy your home. We find that most people who look at For Sale By Owners are just starting to think about moving. They may be good buyers, but they are six to nine months away from being ready. They don’t want to bother an agent yet, so they call the “by Owner” ads to get a feel for what’s available. They may have a house to sell first, may need to save some more money, or may have credit that needs fixing. When everything is in place, that’s when they go looking with an agent.
An agent will ask buyers how much they can really spend for a home, discuss down payment, evaluate credit, and decide a realistic monthly payment. Also, it’s necessary to find out how much will be realized (realistically!) when their present home closes. Numerous other questions will be asked and answered as well. Unless your Realtor finds out all the facts first, you must ask all these questions before the buyer crosses your threshold. Otherwise, you may have a parade of Sunday afternoon shoppers with a dream of owning a home some day.
Deadly mistake No. 5: Not knowing your rights and obligations
Real Estate law is extensive and complex: the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections, and remedies for title defects. You must know whether the property can legally be sold “as is” or whether you have to complete “seller disclosure” forms, and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if the title or the property is in conflict with local restrictions, you or your Realtor must remedy them. Also, after 1998, real estate contracts allow the buyer an option period to inspect and approve of any inspection reports and repair bids. Know your alternatives here.
Deadly Mistake No 6: Signing a listing contract with no way out
Many times an agent will have good intentions about marketing your home, but circumstances can change. Personal situations change, or an agent may even decide to quit the business. In cases where the agent couldn’t or wouldn’t perform, you should have the right to fire your agent. In some companies the broker will assign your listing to someone else in the office, someone you didn’t personally select. Always protect yourself by getting a guarantee of performance which gives you the right to cancel anytime for any reason.
Deadly Mistake No. 7: Limiting the marketing and exposure of the property
The two most obvious marketing tools (open houses and classified ads) are only moderately effective. Surprisingly, less that 1% of homes are sold at an open house. Agents use them to attract future prospects, not sell the house!
Advertising studies show that less than 3% of people purchased their home because they called on an ad. And if a machine answers, most callers just hang up without leaving a message.
The right Realtor will employ a broad spectrum of marketing activities, emphasizing the ones he or she believes will work best for you. There are dozens of more effective ways to find buyers that just open houses and advertising. Did you know that most calls come in during business hours when sellers are away at work, and most home showings are between 9:00 and 5:00 Monday through Friday? We market homes 24 hours ad day, 7 days per week, 365 days a year! Ask about our 24 hour a day Marketing System.
Deadly Mistake No. 8: Believing that an appraisal is the market value of your home
An appraisal or tax assessment is an opinion of value for a certain purpose. If the lender wants to lend you money, they are motivated to have the appraisal come in high. The appraiser may ignore foreclosure or distress sales in order to justify the high value. But a real buyer in the real world will not ignore these properties. They are your competitors when you try to sell.
I can’t tell you how many ridiculous appraisals and tax assessments I’ve seen. Don’t make the mistake of thinking that the value you were told 6 month ago when you re-financed your home is the price a real buyer would pay. Ask your Realtor for all the solds in your area, then decide. There are lots of opinions, but only one set of facts. Insist on FACTS!
Deadly Mistake No. 9: Choosing the wrong Realtor, or choosing them for the wrong reasons
It’s very likely that you don’t interview people very often, and yet in order to find the right Realtor, you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the person best qualified.
It’s interesting that in the real estate business, someone with many successfully closed transactions almost always costs the same as an agent who is inexperienced. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table, selling in less time, and with the minimum amount of hassles.
The world is populated with Realtors who are wrong for you. Example: the part-timer who sells an occasional house because he needs a little pocket change, or the insurance agent who believes he can handle two careers. Or your cousin George, who really needs your business. Also, don’t simply choose the agent who gives you the highest price!!
The sale of your home could well be the most important financial transaction you have ever been involved with. The person you select can make it a satisfying and profitable activity, or a terrible experience. It’s your home, and your money. The choice of your Realtor is up to you. Don’t simply choose the agent who gives you the highest price!!