10 Deadly Sins of Selling
1. BUYING A REPLACEMENT HOME BEFORE SELLING THE OLD ONE. The temptation may be great to buy a replacement home first. That way you’ll know where you are going and how much you’ll be paying. And you won’t have to worry about being left out in the cold with nowhere to go if you home sells quickly.
However, the financial risks of buying first are great. It’s far better to sell you current home first and endure the inconvenience of moving to an interim rental – which rarely happens – than to end up owning and paying for two homes when you only want one.
2. BASING THE LIST PRICE OF YOUR HOME ON THE PRICE YOU WOULD LIKE TO GET RATHER THAN ON MARKET VALUE. Market value determines the price of your home – not wishful thinking. A buyer won’t pay more for your home just because you think you need more money.
Find out the market value of your current home by having your REALTOR® prepare a comparative market analysis or by getting an appraisal from a licensed appraiser. This will tell you the value of your home based on comparable sales information.
After you know what your home is likely to sell for, ask you agent to prepare a seller’s net sheet. It will tell you approximately how much cash you will receive form the sale. Then visit a lender, your REALTOR® can suggest lenders so you can get pre-qualified for a mortgage. They will let you know how much home you can afford.
3. BASING THE LIST PRICE OF YOUR HOME ON THE VALUE OF THE UPGRADES YOU HAVE ADDED TO THE HOME. Just because you have spent a lot of money on upgrades doesn’t mean a buyer wants or even likes them or that he is willing to pay extra to get them. A buyer won’t pay more for an upgrade that you liked, he will prefer the ones that he likes.
Some amenities do add value to your home. Pools bring between $10,000 to $25,000 (although they cost more than that). Landscaping, fresh neutral color paint, updating baths and kitchens, repairing maintenance items and scrubbing the place spotless will pay for themselves in most cases.
4. PUTTING THE HOME ON THE MARKET BEFORE IT IS SPRUCED UP. Buyers and real estate agents remember what they see. Their first impressions are lasting ones. If a property looks like a mess when it hits the market, that is how buyers and agents will remember it.
Most people lack the vision to imagine what the home will look like when it’s fixed up. It’s usually better todelay marketing a home until it’s spruced up and buyer
get more excited about homes that are in mint condition.
5. REFUSING TO REDUCE A LIST PRICE THAT IS TOO HIGH FOR THE MARKET. It is hard to be objective when valuing your own home. Over priced listings take a long time to sell and often sell for less than they would have if they were priced right to begin with.
Often buyer will say “there must be something wrong with that house, it sure has been on the market for a long time” or “they have been on the market so long they must be getting anxious, we can probably get a deal on that house”. If you are priced too high it is better to reduce sooner rather than later.
6. REFUSING TO COUNTER A LOW OFFER. Sellers want to sell high; buyers want to buy low. A low offer from a well qualified buyer is better than no offer at all. A high offer from an unqualified buyer only leads to disappointment. Also, the way an offer is structured can affect your bottom line. Many times the price is not the most important part of the offer – counter offer and negotiate for a better price or terms.
7. INSISTING ON BEING PRESENT WHEN THE HOME IS SHOWN TO PROSPECTIVE BUYERS. One sure way to discourage buyers from buying is to be home during showings. For buyers to buy they must discuss it’s positive and it’s negative points. Buyers are reluctant to have these discussions with you present. It is best to leave when it’s being shown.
8. LISTING OR SELLING WITH A CONTINGENCY TO FIND A REPLACEMENT HOME. This is like saying the home might be for sale. Serious buyers make offers on homes that are definitely for sale. Buyer don’t want to wait in vain for sellers to find an acceptable replacement.
9. SETTING UP A COMPLICATED SHOWING PROCEDURE THAT DISCOURAGES SHOWINGS. A home that can’t be shown can’t be sold. The easier it is to show a home, the more often it will be shown, and the quicker if will be sold. There is a direct correlation, the more showings the less time it takes to sell.
10. REFUSING TO DO ANYTHING TO GET YOUR HOME READY TO SELL. The way most people live in their home is usually different from the way a home should look when it goes on the market, especially when you are competing with new homes that are professionally decorated and not lived in. In order for buyers to want a home they must be able to envision themselves living there. Most sellers have to de-personalize, de-clutter and clean their homes at the very least.