Below are 8 mistakes sellers make that can be prevented!
1. Assume Zillow’s ‘zestimate’ (estimate of value) is accurate. Zillow sometimes is incredibly accurate and sometimes is WAY off. The only way to get an accurate reading of your homes value is to have an appraisal completed by a LOCAL appraiser or have a local Realtor perform a Comparative Market Analysis or CMA. An appraisal can cost you $350-$500, a CMA in most cases will cost you nothing and if done correctly will contain the same data as an appraisal. Pricing your home right in this market is the #1 key to getting in sold. Trusting Zillow for your home’s value can ending up costing you lost of $ and valuable marketing time.
2. Attempting to sell FSBO without consulting a professional. FSBO (for sale by owner) has become quite popular in recent years for various reasons but the main reasons is access to some of the same marketing Realtors use to bring exposure and to save money. A good Realtor will clearly outline for you the pros and cons of listing FSBO. Where most sellers go wrong is not receiving this information prior to listing, there are a number of things you MUST be aware of prior to going the FSBO direction. I will dedicate an entire blog post in the future on this topic but felt it was important to mention.
3. Listing prematurely. Many sellers list their home prematurely. Next to price and location ‘look and feel’ are #1 in a buyer’s mind. If your home doesn’t look or feel right buyers will most likely move on to the next home. Staging your home or at least hiring a staging consultant for an in home review is in my opinion a MUST in this market. According to national statistics staged homes currently sell 60% faster and for 6-10% more than homes that are not staged.
4. Asking too much $ for your home. You have heard the popular phrase “location, location, location”, I would argue that in this market price trumps location! Currently there are 4,000 residential homes for sale in the Lehigh Valley and on average 250-400 sales per month so that represents about 12 months worth of inventory. That is a lot of homes for sale which means there is a lot of competition. In order to sell in this market you must have a compelling price! That news may be hard to swallow but remember if you are buying in this market your gain may offset the potential loss on your current home.
5. Not having a financial/mortgage plan in place. This is a big mistake I have seen sellers make over the years. Don’t put your home on the market until you know your next move and have planned financially for it including a full pre approval by a reputable and local mortgage lender. You would also benefit from checking in with that mortgage lender during your listing period and making sure none of the rules have changed. Don’t assume anything in this market, get a plan in place and make sure it can be executed!
6. Listing with someone who lacks the financial resources to market your home. This may be a surprise but many agents lack the resources to be able to market your home effectively. Regardless of the technology that exists money should be spent to get your home maximum exposure. A good agent will not only know the local market but will provide staging services and professional photography as a part of their marketing package.
7. Listing with someone who lacks the intellectual capital to market and sell your home. Some agents have no lack of financial capital but they don’t know a thing about the market, negotiating, or contract laws. Obviously you need someone with the smarts to give you great advice and manage difficult or complex transactions.
8. Listing with a relative. Not much to say on this one-could be wonderful-it could ruin your life!
Phil Osborne is a Realtor with Keller Williams Real Estate and serves buyers, sellers and investors in the Lehigh Valley, PA marketplace. He also is co-owner of Home Focus Media LLC a real estate marketing firm. He resides in Coopersburg, PA and is happily married with 3 children. You can follow Phil at twitter lvhomestv or on facebook Lehigh Valley Homes TV.
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