How Home Sellers Go Wrong

As a home-seller you need to understand that there are certain things you must do to ensure a successful sale of your home. These are things that should be done before you list with an agent so you do not waste your time or your agent’s.

First, let go of the emotional attachment to your old home. After you move it will not be your home, but someone else’s. Sure you have a lot of memories, experiences and pride in your home, but these are things that do not add monetary value to the home. And once you move, you can take the memories and experiences with you.

Once you can let go of the emotional value and face the reality of what it could sell for, no matter what that may be, you can move forward. Once you reach this step you can start preparing to get your home sold.

Talk to a few local agents about what they think your home is worth. Ask them for a Comparative Market Analysis. This will give you the sales data on what homes have sold recently and how much they were sold for. Also, a detailed-oriented agent will pull the MLS information and see what kind of incentives the sellers were giving to the buyer to get their home sold. This may include a credit for closing costs, interest rate buy-downs, increased commissions for the agent, credit for repairs, etc. These are all common things in a buyers market.

Once you have interviewed several agents (I recommend three minimum but no more than five) and have chosen the right one (I will post a later blog on what questions you should ask your future agent), you need to consider the terms of the listing agreement. This includes accessibility, commissions, buyer incentives and length of time for the contract.

For accessibility, the more agents can show it, the better chance it has of selling. Installing a lockbox will allow agents to show it anytime, whereas showing it by appointment only can turn agents to other homes in your area that are easier to show.

Commissions right now (in Southern California) for both agents total 6% to 7%, sometimes more. This is because there are more homes than buyers, so listing agents need to work to get yours sold and buyers agents can choose from several homes on the market. A lot of buyers agent’s look at the commissions and determine which houses they will show and which ones they won’t as they have several to choose from.

As for buyer incentives, ask your agent if they think you should give them. They understand your marketplace better than anyone. Just be open to considering giving a credit for closing costs, repairs, carpet & paint allowances, etc.

For the length of the contract with your agent, I recommend giving them no less than 4 months (120 days) to try and get your home sold. If they fail to get it sold in that time you can always re-list your home with them if they followed through on everything they promised and have given you the level of service you expected. If not then interview some new agents and try again. It is not uncommon in this market to have a home sit for several months, sometimes a year, depending on your market.

Remember, you and your agent need to work as a team and be flexible in getting your home sold. Without teamwork, your home may just be the one that doesn’t sell.

Charles Tharp