8 Biggest Mistakes Home Sellers Make
Selling your home is important business because your home is probably your most important asset. How amazing it is that often homeowners treat their home sale casually and proceed to place it on the market without planning the process through carefully! Don’t take a chance of missing the greatest return on your property. Avoid the following common mistakes:
1. Pricing the property too high is the number one mistake. Three things are not factors in determining your home’s value– what you paid for it, what it would cost to build it today, and what you need to get to buy your next home. Careful analysis of sales data of similar homes in similar condition is the best way to determine your home’s value. If the property is priced too high in the beginning, buyers may not even look at it, and probably will have moved on to other properties by the time the price is reduced.
2. Over-improving the property is also a big mistake. Your home needs to be well prepared for the market with fresh paint inside and out, but putting in expensive improvements that make your home pricier than neighboring properties is not a good idea. A seller rarely gets a 100% return on home improvements and being on the top of the market in your neighborhood will make it harder to get your price.
3. Being emotionally attached to the home makes it difficult for a seller to be objective about its condition and appeal. Try to put on a buyer’s eye and take a serious look at your home. Stand in the street and look at the paint, roof, landscaping, grass, etc. Be sure your front door says welcome! Curb appeal is the best invitation to your home. Much of what is needed should be classified as maintenance. Painting, replacing an old roof and fixing broken appliances are so important, but they are not home improvements. They will make your home sell more quickly, but they do not add to its value.
4. Underestimating the competition is deadly. Are a lot of new homes being built in your area? Go to the sales office to see what they are offering. Look at the colors, the carpet choices, etc. If you can, mock them. Also, keep in mind the list prices for the new properties when you are pricing yours. Since your home is older, even with improvements, it probably should be a little under the price for a similar new home with equal finished square footage.
5. Talking too much can cost you money! Anything that you reveal to a buyer or a buyer’s agent can be used as ammunition against you. When you talk, what you say is being analyzed to determine your motivation, urgency and flexibility. Why you are selling is your own business, but saying that would be offensive. You need to keep your distance from potential buyers and their agents.
6. Not understanding the real estate contract terms, stipulations, time lines and legalize is a serious problem. The contact is a legal document, and your response can commit you to items that are not favorable to you.
7. Not responding to an offer–even a low offer–is a mistake to avoid. Don’t be offended! Many low offers are negotiated to binding contracts. Buyers can ask for anything. The seller does not have to give everything, but giving something is important to creating a win-win deal.
8. Failing to hire a knowledgeable real estate professional to handle your real estate sale is a huge blunder. Real estate agents are in the business of buying and selling real estate. Much of what real estate agents do is learned through repeating the process. Hiring an experienced real estate agent is usually not more expensive, but it could make an important difference in your bottom line. Full service real estate professionals advise sellers in preparing and pricing their homes, follow a carefully structured marketing process, and guide sellers through the entire process. According to NAR reports, sellers who use a real estate agent to sell their home, average 18% more than by owner home sellers. The goal is to make your home selling experience short and sweet and to enjoy the warmth of your smile when you collect your closing check!
From: The Atlanta Real Estate Blog
