Common Selling Mistakes
Mistake #1 - Incorrect Pricing
Every seller naturally wants to get the most money for his or her product.
The most common mistake that causes sellers to get less than they hope for,
however, is listing too high. Listings reach the greatest proportion of
potential buyers shortly after they reach the market. If a property is dismissed
as being overpriced early on, it can result in later price reductions. Overpriced
properties tend to take an unusually long time to sell, and they end up
being sold at a lower price than they likely would have had they been priced
properly in the first place.
Mistake #2 -- Mistaking Re-finance Appraisals for Market Value
Re-finance appraisals can be very encouraging for homeowners, leading them
to assume that the appraisal is the amount that they should expect to receive
for their property. Lenders often estimate the value of your property higher
than it actually is, however, in order to encourage re-financing. The market
value of your home could actually be (and often is) lower. Your best bet
is to ask your Realtor® for the most recent information regarding property
sales in your community. This will give you an up-to-date and factually
accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is
to avoid, its prevalence is still widespread. When attempting to sell your
home to prospective buyers, do not forget to make your home look as pleasant
as possible. Make necessary repairs. Clean. Make sure everything functions
and looks presentable, and remove as many possessions as you can prior to
showing. A poorly kept home, or one with too much clutter, will make it
dramatically more difficult for buyers to become emotionally interested
in your property.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result,
you should try to allow prospective buyers to comfortably examine your property.
Don't try haggling or forcefully selling. Instead, be friendly and hospitable.
Pointing out any unnoticed amenities and being receptive to questions is
advisable, but this is not the time for negotiation and salesmanship.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a For Sale sign or an
open house ad may not really be interested in your property. Often, buyers
who are not accompanied by a Realtor® are 6-9 months away from buying,
and are more interested in seeing what is out there than in actually making
a purchase. They may still have to sell their house, or may not be able
to afford a house yet. They may still even be unsure as to whether or not
they want to relocate.
Your Realtor® should be able to distinguish realistic potential buyers
from mere lookers. Realtors® should usually find out a prospective buyer's
savings, credit rating, and purchasing power in general. If your Realtor®
fails to find out this pertinent information, you should do some investigating
and questioning on your own. This will help you avoid wasting valuable time
marketing to the wrong people. If you have to do this work yourself, consider
finding a new Realtor®.
Mistake #6 -- Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details of your
real estate 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 thousands for repairs and inspections. Know
what you are responsible for before signing any contract. Can the property
be sold "as is"? How will deed restrictions and local zoning laws
affect your transaction? Not knowing the answers to these kinds of questions
could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best Realtor® for
you. But sometimes, as we all know, circumstances change. Perhaps you misjudged
your Realtor®, or perhaps the Realtor® has other priorities on his
or her mind. In any case, you should have the right to fire your agent.
Also, you should have the right to select another agent of your choosing.
Many real estate companies will simply replace an agent with another one,
without consulting you. Be sure to have control over your situation before
signing a real estate contract.
Mistake #8 - Limited Marketing
There are two obvious marketing tools that nearly every seller uses: open
houses and classified ads. Unfortunately, these two tools are rather ineffective.
Less than 1% of homes are sold at open houses, and less than 3% are sold
because of classified ads. In fact, Realtors® often use open houses
solely to attract future prospects, not to sell that particular house. Does
your Realtor® have a website? There are very few successful real estate
professionals who don't, and for good reason.
Your Realtor® should employ a wide variety of marketing techniques and should be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your Realtor® is working on selling your home during these hours (many Realtors® work part-time).
Mistake #9 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your
lifetime. As a result, it is extremely important that you select a Realtor®
who is a good match for you. Experienced real estate agents often cost the
same as brand new agents. Chances are that the experienced agent will be
able to bring you a higher price in less time and with fewer hassles.
Take your time when selecting a real estate agent. Interview several; ask
them key questions. If you want to make your selling experience the best
it can be, it is crucial that you select the best agent for you.
