Succeeding In Real Estate And The Top 5 Mistakes Home Sellers Make
1. Setting the Wrong Price.
Every seller wants to get the most money for their property. However, the best way to do this is not to list your house at an excessive price, either too high or too low. When figuring out the correct price, don't rely on national statistics, Nassau County assessments or internet site estimates instead focus on Wantagh's true statistics. Wantagh properties have seen an increase in Days on Market and a decline in the Number of Transactions and the Sales Prices over the past several years. The latest market statistics can be viewed on this report.
Figuring out how to set the price is tricky - so price according to your neighborhood. A proper Comparative Market Evaluation takes into account the following: recent closed sales, recent under contracts, days on market and current inventory/competition. Gone are the days when you can expect to sell your home for as much as your neighbor did just six months ago.
When you overprice properties they tend to take an unusually long time to sell and end up selling for a lower price.
2. Waiting for the Market to Rebound.
No one knows when home prices will rebound, however it is not going to happen this year! Waiting for the rebound could will cost you thousands of dollars. If your home is worth $400,000 now, but Nassau County prices are expected to sink another 5-7% by the end of the year, that's $20,000 to $28,000 you lost in equity by waiting.
Also, listing later in the traditionally busy spring season will limit your pool of potential buyers - and your eventual sale price. That's because many house hunters will be after the home buyer tax credit, and the credit requires a written binding contract to be in effect on April 30, 2010; the purchaser will have until July 1, 2010, to close. Bottom line - time is of the essence.
3. Failing to Properly Qualify the Buyer.
Make sure that your buyer has been recently pre-approved for a mortgage large enough to buy your property. Transactions often fall apart due to financing issues. Even if you get an offer $15,000 over your asking price, if your buyer can't get a mortgage you will be back at square one and now your house is worth less than when you started.
Mortgage qualifications are constantly changing. The banks are making it more difficult to obtain a mortgage so sellers need to select their buyers carefully with the help of professional. Remember not all Pre-Quals are born equal - make sure they are from a fly-by-night mortgage bank/broker.
4. Not Using a Real Estate Attorney.
Would you go to a podiatrist if you had a heart problem? Both are doctors, both are highly trained professionals - however their specialties are completely different. An attorney specializing in real estate is aware of the latest trends and market changes. They will not make mountains out of molehills or miss any important nuances of the real estate transaction. Ask for recommendations from people you know as well as a Realtor.
5. Trying to Sell on Your Own.
In a Down Market your home, a depreciating asset can be on the market for an extended period of time and possibly not sell without an experienced real estate agent who knows the ins and outs of the entire real estate sales process.
In 2009, according to NAR, the median selling price in For Sale By Owner transaction was $43,000.00 less than an agent assisted transaction. On average a Realtor can get you more money than if you had sold it on your own (without all the headaches that come with selling on your own).
Finding the right agent may be a daunting task if you do not ask the right questions. You need to know: their Plan of Action, their work schedule (how many hours per day will they spend looking for a buyer for you), their knowledge of the Wantagh Real Estate market, their references, their track record, their list-price to sell-price ratio.
Pick The Right Price!
Pick The Right Buyers!
Pick The Right Attorney!
Pick The Right Agent!
Need Help? Get It - The Wrong Decisions Will Cost You!