The 7 Most Deadly Mistakes
When Selling Your House
DEADLY MISTAKE NO. 1 - PRICING INCORRECTLY
Every seller wants to realize as much money as possible when he/she
sells a property. But listing at a price that is too high often gets the
seller a price that is actually less than market value. If your house is
not priced competitively, people looking in your price range will reject
your house 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 then adds to the
carrying costs. Ultimately, many overpriced properties sell below market
value.
To help avoid this, you should ask your Realtor the following four key
questions:
What is the difference between cost and price?
What is market value?
How much bargaining room should we leave in our price?
How do the principles of progression and regression apply to ....our
home?
Once you learn these principles, you should feel comfortable pricing
your home. Not only that, you will know how to avoid paying too much for
any house you buy for the rest of your life.
DEADLY MISTAKE NO. 2 - FAILING TO SHOW CASE THE
HOME
Buyers look for homes, not houses, and they buy the home in which they
would like to live. Owners who fail to make necessary repairs, who don’t
spruce up the house inside and out, touch up the paint and landscaping,
and keep it clean and neat chase buyers away as rapidly as Realtors can
bring them. If you were selling a car, you would wash it, or maybe even
detail it to get the highest price. Houses are no different. Potential
buyers will notice when you take pride in your home.
DEADLY MISTAKE NO. 3 - USING THE “HARD SELL”
DURING SHOWINGS
Buying a home is an emotional decision. People like to “try on” a house
and see if it is comfortable for them. It is difficult for them to do
that if you follow them around pointing out every improvement that you
have made. It may even have the opposite effect you want, by making them
feel they are intruding on your private space. Resist the temptation to
talk the entire time a buyer is there. Let them discover things on their
own. Better yet, try a tasteful sign to point out some hidden amenity
they might miss.
DEADLY MISTAKE NO. 4 - NOT KNOWING YOUR RIGHTS
AND OBLIGATIONS
Real estate law is extensive and complex; the contracts of sale and
purchase are legally binding documents. An improperly written contract
can cause the sale to fall through, or cost you thousands of dollars for
repairs, inspections and remedies of items included or excluded in the
offer. You must be certain which repairs and closing costs you are
responsible for. You must also know whether the property can legally be
sold “as is” and how deed restrictions and local zoning will affect this
transaction. If there are defects in your title, or if your property is
in conflict with local restrictions, you or your Realtor must remedy
them or you may incur a penalty.
DEADLY MISTAKE NO. 5 - SIGNING A LISTING
CONTRACT WITH NO WAY OUT
Many times an agent will have good intentions about marketing your
house, but extenuating circumstances could come into play. Suppose there
were a death in the agent’s family, or some other type of family
emergency. In cases like this, where an agent could not or would not
perform, you should have the right to fire your agent. In some
companies, the broker will assign your listing to someone else in the
office, someone who you did not personally select. Always protect
yourself by getting a guarantee of performance with the right to cancel.
It is likely that you do not interview people very often. But in order
to find the Realtor who is right for you, it is best to interview
several. The quality of your home selling experience is dependent upon
your skill at selecting the person best qualified to serve your specific
and personalized needs.
DEADLY MISTAKE NO. 6 - CHOOSING THE WRONG
REALTOR, OR CHOOSING HIM/HER FOR THE WRONG REASONS.
It’s interesting that in the real estate business, someone with many
successfully closed transactions usually costs the same as someone who
is inexperienced. Bringing that experience to bear on your transaction
could mean a higher selling price at the negotiating table, selling in
less time, and minimizing the amount of hassles.
The sale of your home could be the most important financial transaction
you have ever been involved in. The person you select can make it a
satisfying and profitable activity, or a terrible experience. It’s your
home and your money. The choice of your Realtor is up to you. Make the
selection carefully.
DEADLY MISTAKE NO. 7 - 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 1% of homes are
sold at an open house. Advertising studies show that less than 3% of
buyers purchased their home because they called on an ad.
The right Realtor will 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.
By the way, your Realtor or a trained member of his/her staff should be
there every time the phone rings. Most callers will probably just hang
up without leaving a message if the answering machine picks up. Did you
know that most calls come in during business hours when you are at work,
and many showings are between 9:00 and 5:00 Monday through Friday?
