Home > Blogs > Herb Johnson > Herb Johnson's (nkyrealty) Blog

Mistakes To Avoid When Selling Your Home.

By Herb Johnson

Commercial Real Estate Agent with Access Capital

March 19, 2012 09:01 PM

The US real estate market peaked in 2006. Since 2007 prices have declined, yet many sellers are still in denial about the market value of their homes. Some sellers still struggle to accept the reality of today's real estate market, whether they bought at the peak or bought decades ago. Other homeowners will admitt that home prices have dropped over the last five years but emotionally can't accept that their home has lost any value. It can be hard for homeowners to distance themselves emotionally from their home when it comes to pricing it to sell. Yet this is exactly what sellers need to do so that they can make rational decisions about a list price that will actually result in the sale of their home.

The list price of a home should reflect similar listings that have sold in the same area that could be considered comparable. If a seller is emotionally wrapped up in their home, as many are, this exercise can be very frustrating to say the least. Many believe homes that have sold aren't as good as theirs yet in reality most are.

Now put yourself in the shoe's of todays home buyers. They know the reality of the market and their looking to make sure they're getting a good deal. A home in todays market needs to be listed at a price that will entice buyers because it represents a good value. Most buyers know that prices have declined and are trying to purchase a home before the market recovers. Sellers need to be wary of Realtors who tell you that your home will sell for a higher price just to get the listing yet then intoduce the truth over time to get you to reduce the price to market value. It is human nature to try for a higher price than the comparable sales indicate yet ignoring them will only lead to frustration and your home becoming stale on the market. Truth is if you really want to sell, you won't be happy if your home is on the market for months with little or no activity. Under that type of senerio, statistically speaking, you will end up selling your home for less much later.

Another mistake I run into frequently are sellers who want to list their home based on what they want or need to net from the sale. Understand this does nothing to motivate a buyers to pay more than the home is worth. Buyers pay market value and simply won't overpay in today's market.

The best approach to selling your home is to find out what buyers are looking for in your area and see how your home matches up to their expectations. Today's buyers are looking for a home that is well-located, in good condition and is priced right for current market conditions. If the home needs work done to compare with the competition, do it before selling or discount the price accordingly.

For results a seller needs to be realistic about the current market value of their home and what preparation it needs in order to sell successfully. A professional Realtor can help evaluate the current market value and suggest cost effective improvements to help you maximize your selling price while getting your home sold.

Re-Blog

Featured

Comments(43)

Comment

Show All Comments

Sort:

Jim Miner

Miner Noh & Associates - Phoenix, AZ

Loan Modfication & Short Sale Specialist

Or the seller who purchased the home for $600K, it now has a market value of $250K and seller states but the buyer is getting such a great deal, SURE.

Mar 21, 2012 01:38 AM

Ric Mills

Keller Williams Southern Az - Tucson, AZ

Integrity, Honesty, and Vast Real Estate Knowledge

Graet Post. Unfortunately the selling of a home is usually very emotional. No one wants to take a loss and will listen to pie in the sky presentations. I talk to a lot of potential sellers that "won't " sell for less! They are stuck in 2006-2007 and I try to show them today's numbers. If you don't want to sell, why go through the grief. They say the Realtor XXX will list at that and I say so will a lot of Realtors but it won't sell. The they will want price reductions and you will probably end up selling for even less than if you start at the right price. if it is lower than market then ther will probably be multiple offers and that will drive up the price. List it right, sell it quickly, or keep paying to keep it off the market, the choice is yours.

Mar 21, 2012 02:25 AM

Elisa Uribe Realtor #01427070

Golden Gate Sotheby's International - Berkeley, CA

Opening the Doors to California Homes -East Bay

Wise advise. I hope potential buyers and sellers see your post so they can learn from it.

Mar 21, 2012 02:27 AM

Gene perez

Greater Mortgage Solutions & Valley Hills Realty - Santa Maria, CA

although I still get sellers that think the market will come back to the highs in a year or two .. and still in denial .

Mar 21, 2012 03:05 AM

Herb Johnson

Access Capital - Florence, KY

@Jim:

600k in 2006, 250k today. Wonder if your seller that it was a great deal in 2009 at 350k? Only time will tell if todays prices turn out to be "great deals". One thing for sure though, todays interest rates are hard to beat and if you're moving up or a first time buyer times have never been better.

@Ric:

And here I thought I was the only one who had to deal with sellers like that every week! Thanks for the kind words about the blog, know you're not alone and keep telling the truth because it's so much easier to remember!

@Elisa:

Thank you!

All the best,

Herb

Mar 21, 2012 03:29 AM

Herb Johnson

Access Capital - Florence, KY

@Gene:

They are not only in denial they're delusional my friend.

All the best,

Herb

Mar 21, 2012 03:32 AM

Bob Miller

Keller Williams Cornerstone Realty - Ocala, FL

The Ocala Dream Team

Hi Her, excellent post. If we could just get those messges through to sellers, this job would be easy.

Mar 21, 2012 03:55 AM

Herb Johnson

Access Capital - Florence, KY

@Bob:

You're right, sometimes I feel like Custers messenger!

All the best,

Herb

Mar 21, 2012 06:19 AM

Herb Johnson

Access Capital - Florence, KY

@Amanda:

We are in agreement and thank you for the kind words!

All the best,

Herb

Mar 21, 2012 06:21 AM

Amanda S. Davidson

Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA

Alexandria Virginia Homes For Sale

Herb- Great post! Some sellers are harder than others to convince but, I tend to ask them if they were buyers would they pay more for their house than what the comps show. Bottom line is buyers don't overpay for homes. Nice work!

Mar 21, 2012 06:23 AM

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Great article Herb,

I would like to send this to every seller I encounter, and their agent. a lot of houses sitting on the market that will never sell, and its sad that people dont realize how much they are losing in holding costs while being stubborn about an unrealistic price.

Mar 21, 2012 07:22 AM

Dominique Britton

GoHomeToAtlanta.com Realty LLC - 678.250.5022 - Buford, GA

Experience the Difference in Real Estate Services

So true Herb. Great post.

Mar 21, 2012 08:18 AM

Kimo Jarrett

Cyber Properties - Huntington Beach, CA

Pro Lifestyle Solutions

Great advice, unfortunately many sellers and RE agents don't heed any of them, so what to do?

Mar 21, 2012 08:52 AM

Herb Johnson

Access Capital - Florence, KY

@Bob:

Think there are sellers that are in denile all over this country. Unfortunately a lot of desperate Realtors are too in that they do anything necessary to get the listing then disappear when time passes becaused it is priced poorly and doesn't sell, which then creates even more problems for all concerned.

@Dominique and Kimo:

Thank you for the kind and encouraging words. To answer your question, do your best to educate, tell the truth, invest in those clients that are in touch with reality and pray for those that aren't, just don't spend all all your time there.

All the best,

Herb

Mar 21, 2012 08:56 AM

Dorte Engel

RE/MAX Leading Edge - Bowie, MD

ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Herb,

The same applies to buyers from time to time as well. Some think that the market still has a lot of downside, but I feel, it has already stabilized.

Mar 21, 2012 11:13 AM

Kay Van Kampen

RE/MAX Broker, RE/MAX - Springfield, MO

Realtor®, Springfield Mo Real Estate

Herb, I'm working a short sale. As the seller repairs minor problems with the home, he comes back and raises the price on me. I've argued with him, but he will not listen.........I have no foreclosure date, but I do not have a buyer either. Sellers need to know their homes will not sell over market value right now. Great post.

Mar 21, 2012 12:32 PM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

Nice post Herb. As my dad used to say, "If you Wish in one hand and ---- in the other which one will get filled first?" No home sells high because we wish it would.

Mar 21, 2012 02:44 PM

Herb Johnson

Access Capital - Florence, KY

@Dorte:

You are right. Some buyers seem to think a 30% downturn means they should get a property at a 50% reduction. It's true while some sellers can't accept the downturn, as many buyers are looking to make lowball offers that do nothing but waste the time of all involved.

@Kay:

Unless it's a close personal friend I started avoiding short sales and referring them away over a year ago. With a closing rate of less than 30% and sellers who think just like the one you mentioned, I can't afford to do the job properly and still stay in business. There are people that focus only on short sales and I'm more than happy to let them deal with those!

@Gene:

You're dad said that too? So did mine and I believe they were right! Thanks for the kind words and encouragement.

All the best,

Herb

Mar 21, 2012 10:20 PM

Sylvie Stuart

Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ

Home Buying, Home Selling and Investment - Flagsta

Listing your home at prices over market cause heart-ache and wasted time. Those homes, even if they are great, sit on the market. Buyers are more informed and more educated on the current market than ever before, and know which homes are priced right and which ones are over-priced.

Mar 21, 2012 10:31 PM

Herb Johnson

Access Capital - Florence, KY

@Sylvie:

You are right on all accounts in my opinion! Have a great day.

All the best,

Herb

Mar 21, 2012 10:35 PM