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Six Ways to Shoot Yourself in the Wallet

By
Real Estate Broker/Owner with Ed Bailey Realty, Oakhurst CA BRE 01479711

Six Ways to Shoot Yourself in the Wallet when Selling a Home!

by edbailey@sti.net | June 23, 2022

1. FSBO, Try selling it without the assistance of a Real Estate agent.
2. Price it above current market value.
3. Negotiate a lower commission rate.
4. Make it difficult for agents to show.
5. Use an “out of the area” agent.                                                                                                           . 6. too much  stuff.


Each of these can lead to a lower selling price, longer on the market, and a smaller net return when selling your home.

1. FSBO – Most home buyers use a free service of a real estate agent.  When agents get the call from a potential buyer, they do not search FSBO listings.   They search MLS listing in the area that buyer is interested in seeing.  That is why that research shows that the median purchase price for homes sold by owner is lower than the median purchase price of those sold through a broker, by more than twice what the customary real estate commission would have been.

2. Price – Overprice it and it will not sell, but grow stale on the market and buyers will start to wonder, “What is wrong with it that has kept it on the market so long?” Agents are likely to pass it up and spend their time showing properties that are priced more in line with market value.  Even if you get an over market value offer, the appraisal could be a real problem. If you want to sell it, price it to sell.

3. Negotiate lower commission – A lower commission rate equates to lower incentive for thousands of potential selling agents to show it and to sell it for you.  Ask your listing agent to list it at one percent above the going rate for your area, with the extra one percent going to the selling agency.  That’s a higher incentive!  

4. Difficult to show – Agents prefer to show properties that are easy to show; property listings that do not say things like “by appointment only,” “24 hours notice,” “call listing agent for key, “listing agent must be present at showings, ”or other such restrictions.  Make your showings as easy to show as possible.  The properties most likely to be shown are the ones noted, “Vacant – Go Show.”

5. Out of the area agents – can be bad news because they are not likely to know the local market as well as an agent who lives and works in the area.

6. Too much stuff – in the home can make it appear cluttered and make the rooms appear smaller than they really are.

 

John Pusa
Glendale, CA

Hello Ed Bailey, MS, GRI, SRES these are very good list of ways home sellers to avoid.

Jun 23, 2022 08:57 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I love this for the title alone that you put on this thing. I’ll come back to it later to

Jun 23, 2022 11:59 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Jun 25, 2022 03:39 AM