1) Pricing Your Property Too High
Every seller wants to sell their home at the highest price. Ironically, many sellers often believe that listing their home at an excessively high price will bring in prospective buyers in droves. Actually, this mistake often has the opposite effect by driving away pre-qualified prospective buyers to other homes in your neighborhood that are more appropriately and competitively priced. With so much real estate data on the internet now readily available, savvy buyers can often guesstimate how much your home should sell for and thus will make offers on homes that sell at their expected price and market value. As a result, overpriced properties tend to take an unusually long time to sell and they end being sold with drastic price cuts and/or concessions. You will want to avoid low-ball agents who under-price your home for a quick commission or overly amenable realtors who say “yes” to your too high pricing request in order to get your listing while your home languishes on the market.
2) Mistaking a Recent Refinance Appraisal for Market Value
Often, sellers who have had a recent refinancing appraisal believe that their home is currently the same value as the appraisal’s estimate of the value of their property. Often, this is not the case, as lenders estimate the value of the property at a higher price in order to encourage refinancing. The market value of your home could actually be lower even with a difference of three months since the appraisal was completed and especially in a volatile real estate market. Your best bet is to ask your realtor for a comparative market analysis that shows the most recent information regarding property sales in your community and neighborhood. Even then the price has to be adjusted for the condition of your home and available amenities. This detailed analysis will give you a factually accurate estimate of your property value.
3) Forgetting to “Showcase Your Home” to Appeal to the Buyer
In spite of how this mistake seems like common sense and could be easily avoided, it is amazing to see how often sellers neglect this. When attempting to sell your home to buyers, try to keep in mind that even before you list your home and set out the yard sale sign, you should develop an objective view of your home as a product. The more appealing you make your house (the product) to the general public by cleaning it, repairing things that need to be fixed and making it presentable, the more likely you will get an offer you will be pleased with. A poorly, maintained home will lower the selling price of your property. In this day and age of instant coffee, instant internet access and everything else, most buyers don’t want to spend the time repairing anything. If it isn’t working properly, it usually ends up costing more at the negotiating table than at the hardware store. Today’s buyer usually just wants to move in and get on with their day-to-day business. If they have to spend time in repairing, they will subconsciously factor in more than the actual cost at the negotiating table.
In addition, as more and more realtors are using virtual tours and/or photos of the interior of your home on their internet websites, you need to declutter and store personal items so your home’s pictures truly showcase your house. Your objective is to allow your buyers to see themselves living in your house and not showcasing junior’s artwork on the refrigerator or dirty dishes in the sink.
4) Assuming All Buyers Are the Same and Selling to “Looky-Loos”
Although not all buyers are pre-qualified, those that are usually mean to do business. They have done their financial homework, know what they can afford and will usually ask their agents to show them homes within their price range. When their realtor requests to show them your home, they usually request the showing in order to evaluate whether your home fits their needs and would be more likely to make an offer if your house is the right match. Your realtor should usually find out a prospective buyer’s savings, credit rating and purchasing power in general.
Most other prospective buyers who show interest really are a good six to nine months away from buying. They are more interested in seeing what’s on the market and available in the neighborhood as opposed to making a serious offer.
5) Limiting the Marketing and Advertising of the Property to Solely Traditional Methods
Your realtor should employ a variety of marketing techniques from traditional yard sale signs, to MLS (multiple listing service) listings as well as internet websites. Agents who are innovative and offer as many new technology methods of attracting home buyers will measurably outperform those that use methods of the past. The often predicted technology “wave of the future” is here now, most professional realtors who realize the sweeping changes that are affecting the real estate industry are making it a priority to adapt to these progressive strategies that add value and service to their sellers!