10 Mistakes Sellers Make
Ten Common Mistakes That Seller's Make
Mistake #1: Hard selling during property showing
Emotions dictate a person’s impulse to buy. It has to appeal first to them before they give it any attention and decide to buy it. It is the same with real estate. If the buyer feels good about the property and can picture themselves living in it, making it their home, then they are likely to buy it. Sellers have the tendency to over sell the property too much, which led to buyers feeling pressured to buy. They usually end up not doing so as they are not comfortable with the presentation. Be sensitive to their feelings and learn when to stop your sales pitch. Not everyone likes to have someone show every nook and cranny of the house. They would rather discover each detail on their own. If it is your house that the agent is showing, welcome the buyers and their agent and let the agent does the presentation. It may be sometimes be challenging for the agent to show the property properly if the owner is lurking somewhere in the background.
Mistake #2: "Lookers" are mistaken For Buyers
When you decide to take on the challenge of marketing your property by yourself, you will be talking to a lot of people, fielding enquiries about your property, even if they are not serious about buying one. You will have more activity in your house as compared to listing it with your real estate broker. Unfortunately, entertaining each person that comes to your door to inquire about the property can be tiring, and emotionally draining for you and your family. Always screen them first with a few questions before considering spending your time with them.
A serious buyer is really looking in the market to purchase a property for his needs, be it a residential or commercial. Most of the time, they will use a real estate agent to look for possible houses on sale. They usually do not have the time to browse properties on sale that are not listed. Properties that are considered For Sale By Owners are frequently visited by curious neighbors and people who are financially incapable of buying a property. Some may be qualified buyers but need first to save for a down payment and fix their credit rating, and some are canvassing prices of houses in the area to be able to know how much they plan to sell their own property.
Ask your buyer first about their credit standing and finances before showing them your house. It will save you lots of time and effort.
Mistake #3: Pricing Your Home Incorrectly
Every sellers want to sell their property at high prices. However, placing a very high price on your property will lead you to sell it a lot less than its market value. Most buyers compare houses based first on location, then price range, then appearance and condition. Placing your house in the upper priced bracket may let your property get rejected since the price range of properties comparable to yours is much cheaper. The properties that have prices that are similar to yours are usually found in higher class neighborhoods or with a bigger lot space, which will also lead to a rejection of your property because it is considered inferior in size. Additionally, having a high price could mean staying in the market for a long time, this tends to give the impression that there might be something wrong with the property as no one wants to buy it. In the end, you will settle for a very low price since that may be the only offer for your property.
Mistake #4: Failing To Prepare Your Home For the Buyer's Eye
When viewing houses, buyers try to visualize living there with the family, and not as a structural piece. Their emotions dictate their decisions and they usually end up with houses that catch their eye and interest, not the one fully decorated by top designers. This is what I call the “Ah-ha” effect. Almost all of my successful buyers cry out “Ah-ha” when they get their first look of the house that they end up buying.
Property owners must make the necessary repairs to a house before trying to sell them. A fresh coat of paint won’t hurt the budget that much but will do wonders in terms showcasing the house and thus increasing its value and price. Those who present their houses in an as-is, where-is style end up getting lower offers for their property as well as staying in the market for a long time.
Call us for tips on how to fix your house and make it irresistible to the buyer, making you sell it fast and with a high price.
Mistake #5: Signing A Long-Term Listing Without A Written, Specific, Performance Guarantee
It is always a good idea to have your property listed with a real estate agent. Unfortunately, there are some agents that take advantage of the owners and make several promises on how they will market your property, when in fact, there are no marketing activity at all. Some even charge a fee to get their property listed. Protect yourself from these agents. Always request for a written guarantee that you can always cancel the listing made, free of charge, if you are not satisfied with their listing activity and performance. Not heeding this advice will tie up your property for months, even years, without any feedback, from your agent. I, personally offer a performance guarantee to my clients, which gives them the right to cancel my services anytime, for any reason, within a 30-day notice. This is to make sure that my clients are happy and satisfied with my services.
Mistake #6: No Qualified Bank Appraisal and No Commitment From a Home Lender For Financing
Have your property appraised first by a qualified appraiser or the bank before deciding on the price of your property. There are a lot of people who sell their property without having an appraisal done only to find out later on after the sale that it was worth much more. Your home will still have to go through an official appraisal to compute the value of the loan for the buyer. The earlier you know about your property’s market value, the better for you to sell it, giving you more for your money. Also, a qualified bank appraisal acts as a marketing tool since buyers are usually wary about prices and tend to bid low. If you have a bank appraisal for your property, you are able to demand more.
Mistake #7: Making it Hard For Qualified Buyers To Obtain Information
Realtors are successful in selling their properties because of two very effective marketing tools: effort and persistence. It is not the open houses that they conduct that give them the sale. It is also not the classified ads that they run which makes them a success. Open houses and classified ads are actually the least effective of all the marketing tools available. It is just a way to introduce to the public the property for sale. People who call classified ads are those browsing the newspaper and when they get to call but get the answering machine, they won’t bother to call back again. In fact, studies have shown that sales from classified ads amount to less than 3% of the population, while they have a 1% chance of selling their property through open houses.
It is recommended that you have a 24-hour real estate hotline dedicated specifically to your house so that buyers can get information on your house anytime. You can also distribute flyers throughout the neighborhood and surrounding areas to increase your exposure and entice people to buy your property.
Mistake #8: An Incomplete Written Purchase Agreement
In selling your home, always include every detail about it in the purchase agreement, even if it is already agreed on by both parties. There are a lot of instances that sellers are happy about the property they have sold only to find out that the buyer did not have the financial capability. Also, there are sellers who do not complete the needed documents for the property such as assessments, surveys, tax prorations, title insurance contingencies, pest inspections, home inspections and a lot more. After they have agreed on the price, the buyer may back out if these papers are not yet ready, and you end up shouldering the expense for these papers, which should have been the expense of the buyer. But since you weren’t able to do it and include it in the purchase agreement, you cannot demand it from the buyer. I have several sample purchase agreements in my office that you can use to draft yours. Call me and I would be happy to provide you with them free of charge.
Mistake #9: Not Obtaining Written Pre-Approval For a Home Loan for your New Home
You are happy about selling your home and finding a new one at once but you forget to get a pre-approved for a housing loan. This is a big problem for you. Even if you are able to find the perfect home for your, if you have no pre-approval for your financing, then consider it gone.
A pre-approval is a formal commitment by the lender to grant you a home loan. This has to be in writing to be binding and final. It usually costs a hundred dollars although I can get you one for free. A verbal pre-qualification is not binding for the lender. It is very devastating to find out at the end of all these transactions that you cannot have the property because you have no financing.
I can refer to you several names of highly competent, well-respected and reliable lenders, who will provide you a formal, written pre-approval at no charge. Just give us a call regarding this matter.
Mistake #10: No Pre-inspections of Your Home Before Putting it On the Market
It is vital to know any problems that may be seen in your property before the Buyer’s inspector finds out about it. Use a pre-inspection of your property so you can find out which areas need to be fixed and if ever remodeled prior to listing it in the market so as to command a better price for it. A lot of home agreements fail because of the many problems that surface during inspection and buyer’s requesting for repairs done to it before purchasing. Do not let this happen to you. Call me for a list of home inspectors.
We hope that these tips are of great help for you. If you feel that you have a lot of new questions on your property because of reading this then do not hesitate to call us. We value your patronage and it would be a privilege for us to serve you. There is no obligation on your part. Call today for a free consultation on how to market your property.
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