Selling your home can be a difficult and emotionally draining experience, particularly if one is still living in the house while it’s on the market! Inconvenient calls, showing at meal times and dealing with price adjustments and offers (and counter-offers...and counter-counter offers) can be trying. If you are not completely prepared, you could end up losing hundreds or even thousands of dollars.
The difference between a smooth transaction and a miserable experience is often a fine line that can come down to the subtle know-how of the Realtor you choose to handle the sale. By utilizing the knowledge, experience and skills of a qualified Realtor, you’ll have a much better chance of selling your home quickly, with the least amount of hassle and for the best price. This article is designed to help you avoid some of the most common mistakes that can cost sellers serious money.
Believing All Realtors and Brokers are Basically the Same - With all the myriad details and important decisions to be made concerning the marketing and sale of your home, should you really engage the services of an inexperienced agent? Your home sale is a difficult and time-consuming task. Maximize your profit by utilizing an experienced, professional Realtor and broker.
Provide Access for Showings - Accessibility is critical to getting your home sold. A lock box is usually the least restrictive and most desirable while “Appointment only” showings are the most restrictive and will almost surely mean that your property will not be shown as often as others. The more accessible your home, the better the odds are of finding a buyer who will to pay your asking price. You will probably never know if the buyer that couldn’t get a viewing was the one that got away. However, there are certain considerations to take into account such as time frame for the desired sale, your lifestyle and your relationship with your Realtor. By developing an open and honest relationship with your Realtor, he or she will arrange showings with your interests in mind.
Seasonal Selling and Timing the Market - Though property is always selling, in some markets home sales can be seasonal. Your Realtor should be able to offer advice and information on timing the market for the best results. Just like a day trader who must continually follow the trends of the stock market, your Realtor needs to follows the trends of the local housing market. They should know if the market cycle is poised to net you the most money.
Pricing it Right - One of the most important reasons to find an experienced Realtor is to make sure the property is priced where it needs to be in order to sell for the best possible price in the least amount of time. If a property is priced too high it will sit, stagnate and become “shop worn”. Buyers will begin to wonder what’s wrong with it and why it’s been on the market for so long. If it’s priced too low you could be leaving money on the table at closing. Your Realtor should do a fresh Comparative Market Analysis (CMA) every 30-45 days to help you realize the best possible sale price. Many good Realtors will build price adjustments into their listing agreements that will be automatically triggered if showing activity is not up to par.
Relying Only on “Traditional” Methods to Sell Your Home- The Realtor who embraces technology and uses new and innovative strategies for attracting potential buyers will usually outperform the Realtor who relies only on traditional methods. According to the National Association of Realtors about 80% of buyers are looking at properties on the internet before they ever make contact with a Realtor. Buyers are much better informed about market values and trends, schools, even crime statistics and demographics of neighborhoods than they were just a few years ago. Demand extensive on-line advertising exposure, innovative lead generation methods, lead accountability and showing follow-up and feedback. These services exist and your Realtor should offer them to help sell your home.
Not Considering Other or Non-conventional Financing Terms- Cash is not always the best deal. Tax benefits and income level can be important factors when considering sale terms. Sometimes offering seller financing or a lease option might be a better deal for you. If you don’t need the cash from a sale right away then speaking with a tax professional and your Realtor about offering alternative financing to qualified buyers might be something to consider and may be the path that will ultimately give you the highest yield.
Wasting Time With An Unqualified Prospect- Don’t negotiate with unqualified prospects. With the real estate market sluggish and even well-qualified buyers having a difficult time obtaining a mortgage it is crucial to check a buyer’s qualifications before valuable time is lost. Most buyers and their agents know that a strong pre-approval from a direct lender, or proof of funds if paying cash, needs to be documented and presented along with the offer. Your Realtor has a responsibility to make sure that any prospective buyer who presents an offer has the means to complete the transaction.
Don’t Test the Market- Never put your property up for sale unless you are ready to sell and ready to sell at market value. A good Realtor will find buyers. If you are indecisive, you will blow the sale and could be liable to pay the Realtor's commission even though you didn’t close. Putting the property up at a price significantly above market value and hoping for a buyer who will come and pay your price is a waste of your time and your Realtors time. Remember, if your buyer is financing the purchase then their lender will most likely have an appraisal of the property before making the loan and will probably deny financing if they don't feel their loan is adequately collateralized. The last thing these banks want to do is make another bad loan and have to foreclose on another house! If the buyer is paying cash…well, in our current market they’re probably going to want a discount!
Believing You Can’t make any Difference- Be part of selling your house! Be an active partner with your Realtor. Ask what you can do to help sell your house. Letting your neighbors, friends, family members and co-workers know that your home is for sale can often produce a potential buyer. It’s surprising how many homes are sold this way. This is why Realtors put a sign with a flyer box in your yard and send out “Just Listed” cards to your neighbors!
Refusing to Make Repairs and Cosmetic Improvements- The prospective buyer’s first impression is critical. Almost every Realtor has been with buyers who pulled up in front of a property and then declined to even go in based solely on the negative first impression! Many home sales have been lost to overgrown or weedy lawns, clutter, stains and unpleasant smells. Put yourself in the buyers place and try to see your home through their eyes. Clean your place from top to bottom. Consider hiring a professional to do this as often others see things that you overlook. It often can cost more to sell “as-is” than to make a few cosmetic repairs that can significantly increase the sale price of your home. Small repairs or improvements can often net several times the repair cost at the time of sale. Your Realtor will be able to help you decide which repairs to make that might significantly increase the value of your home. Seemingly small things can have a big impact!
My sincere hope is that this article will help educate you and enable you to avoid the pitfalls and problems that many sellers encounter. I hope you find the ideas presented here valuable.
If you or anyone you know is thinking of buying or selling real estate, not just in my area, but anywhere, please, contact me anytime. I’d love to hear from you so go ahead, pick up the phone and give me a call or send me an email. I’ll be glad to help and as always, no pressure, no obligation.
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