1) Pricing Incorrectly
Every seller wants to realize as much money as possible when (s)he sells her/his home. But a listing price that is too high often gets the seller less than a list price that is at market value. If your house is not priced competitively, people looking in your price range will reject your home in favor of other, larger homes for the same price. At the same time, the people who should be looking at your home will not see it because it is priced over their heads! Overpricing usually increases time on the market, which makes a property go stale. Ultimately, most overpriced properties sell below their market value.
To avoid this, choose a Realtor who will prepare an extensive Market Evaluation.
2) Failing to “showcase” the home
Buyers look for homes, not houses, and they buy the home in which they would like to live. This is why staging your home for marketing is so important. You need an objective Realtor’s eye, starting right at the front door to recommend the necessary changes needed to get top dollar!
3) Using the “hard sell” during showings
Buying a house is an emotional decision. People like to “try on” a house and see if it is comfortable for them. It’s difficult to do that if you follow the buyer around pointing out every improvement that was made. It may even have the opposite effect, by making a buyer feel he is intruding on your private space. Sellers should resist the temptation to talk to a buyer. If you feel the showing agent is doing an inadequate job, I can add tasteful signs to point out hidden amenities that are missed.
4) Mistaking lookers for buyers
For Sale by Owners always get more activity than homes listed with an agent. Realtors will only bring qualified buyers, and these will be fewer than if you open your front door to every one who walks down the street. A qualified buyer is one who is ready, willing, and able to buy your home today. Most people who go looking at For Sale By Owners are just starting to think about moving. They may be good buyers, but they’re just six to nine months away from being ready (or willing, or able). They don’t want to bother an agent yet, so they call the “By Owner” ads to get a feel for what’s available. They may have a home to sell first, or may need to save more, or may have credit that needs fixing. When everything is in place, they go out looking with a Realtor. A good agent will ask a buyer how much he can really spend for a house, what he has to put down, how good his credit is, how much he can pay each month, what he will realize (realistically) when he sells his present home and about a dozen other questions. All these questions must be asked before the buyer crosses your threshold, otherwise, you may have a parade of Sunday afternoon shoppers with a dream of owning a home someday.
5) Not knowing your rights and obligations
Selling real estate is involved and complex. The offer to purchase is a legally binding document. A poorly written offer can cause the sale to fall through, or could cost you thousands in inspections and repairs. Additionally, the buyer must be properly educated with reasonable expectations set regarding his responsibility once defects are uncovered. Other issues such as the lead paint law, radon gas, asbestos, etc., all need to be thoroughly understood.
6) Limiting the marketing and exposure of the property
The two most obvious marketing tools (open houses and classified ads) are only moderately effective. Surprisingly, less than 10% of homes are sold at an open house. Agents use them primarily to attract future clients, not to sell the house.
Advertising studies show that less than 3% of people purchase their home because they called on an ad. And if a machine answers, most callers just hang up without leaving a message. A Realtor can employ a broad spectrum of marketing activities, emphasizing the ones he believes will work best for you and your particular property. There are dozens of more effective ways to find buyers than just open houses and advertising.
7) Choosing the wrong Realtor, or choosing him/her for the wrong reasons
The quality of the home selling experience is dependent upon one’s skill at selecting the person best qualified. As a former practicing lawyer turned real estate agent with 20+ years of experience in every type of negotiation imaginable, I’m anxious to put my additional negotiating knowledge to work for you. To learn more about me click here, email me at don@DonSellsHomesEverywhere.com or call anytime at 339-927-2759.
Four Keys to Getting the Best Deal
Negotiation is a complex matter and all transactions are unique. Both sides – buyer and seller – want to feel the outcome favors them. Experience shows there are four basic keys which help determine who wins at the negotiating table.
1) What Does The Market Say?
At various times we’re in a “buyer’s” market, a “seller’s” market, or a market where housing supply and demand are roughly equal. If possible, you want to be in the market at a time when it favors your position as a buyer or seller.
Because all properties are unique, it is possible to have more leverage than the marketplace would seem to allow. For instance, if you find a property where the seller has overpriced his home and the Days On Market are stacking up, you may be able to get a better deal. Or, if you’re a buyer who can close quickly, that might be an important negotiating chip when dealing with an owner who just got a new job 500 miles away.
2) What Are the Details?
A lot of attention in real estate is paid to transaction prices. This surely makes sense, but the key to a good deal may be more complex.
Consider two identical properties that each sell on the same day in the same town for $390,000. Are the deals the same? Maybe not. For instance, one owner may have agreed to paint the exterior, replace the roof, purchase a new dishwasher, and pay the first $3,000 of the buyer’s closing costs. The second owner made no concessions.
In this example, the first house actually sold at a discount – the $390,000 purchase price less the value of the roof repairs, closing credit, and other items. If you’re a buyer, this is the deal you want. If you’re a seller, you would prefer to give up nothing.
3) What About Financing?
A real estate transaction involves a trade: a house for money. We know the house is there, but what about financing? There are a couple of factors that impact the money issue:
Has the buyer been prequalified or preapproved by a lender? (See article below) If the seller accepts an offer from a buyer with unverified financial strength, it’s possible that the transaction could fail because the buyer can’t get a loan.
It used to be that downpayments were a major financing hurdle – but not anymore. For those with good credit, loans with 5 percent down or less are now widely available. But the buyer with a larger downpayment is less of a risk due to the diminished chance that a low bank appraisal will matter to the lender.
4) Who Has Expertise?
Imagine you’re caught in a fight. The other guy has black belts in 12 martial arts – and you don’t. Who’s going to win?
A buyer/seller can hire their friend who started two years ago, or the former practicing lawyer turned real estate agent with 20+ years of experience in every type of negotiation imaginable. Who has the advantage at the bargaining table? As a former practicing attorney, I’m anxious to put my additional negotiating knowledge to work for you. To learn more about me click here, email me at don@DonSellsHomesEverywhere.com or call anytime at 339-927-2759.