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- Ineffective marketing of your property.
Marketing a home, especially in a buyer’s market, can require lots of hard work and
dedication. Open houses and print ads just won’t cut it anymore for this type of market.
What else is your REALTOR© doing to market your home? Do they offer TV, Internet,
radio, billboard, bus shelter or other advertising mediums? Remember, your home
needs to stand out against hundreds of other properties for sale. Also consider this, only
1% of homes are sold at open houses, and 3% of buyers purchased a home after
viewing a print ad. Ask your sales representative to inform you on their marketing
strategies for your home.
- Not basing your listing price on fair market value.
Everyone has a certain attachment to their home and pride of ownership. Don’t let these
emotions cloud your vision when setting an asking price for your home. How much you
paid for your home and your love of its features, are not solid principles on which to
determine your listing price.
Setting the asking price of a property should always be based on market value.
Appraisers will base the value of your home on the condition of the property, location,
what properties with similar features in the same area have sold for, what other
properties in the same area are listed for, and the overall condition of the economy and
real estate market.
If your home is not priced competitively, homebuyers will prefer larger or better homes in
the same price range, increasing your days on the market. In a buyers’ market, homes
typically stay on the market for 30-90 days. In a sellers’ market, homes usually sell in less than 30 days if priced right. If you price high and later lower your price, buyers may be concerned that there may be other reasons the house has remained unsold for so long.
- Failing to “showcase” your home.
A property that is dirty and not well kept, often suggests hidden defects that will increase
the total cost of ownership. If you’re selling your home, make all necessary repairs
before you list. Keep your home neat and tidy, ready to be shown at any given time.
Buyers can be turned off very easily by an under maintained home, and will leave a
large margin for repair costs if they decide to make an offer.
- Making too many improvements before you sell your home.
The 2 most profitable renovations are kitchen and bathroom updates. They are rooms
that need to satisfy buyers’ wants and needs. Before starting any renovation project
when selling, consult with your REALTOR® first. They can evaluate the before and after
market values of your home, to see if the renovations are a worthwhile investment.
Many sellers spend thousands of dollars upgrading the wrong features in their home
before selling, expecting to make a profit. Consult with a professional to ensure you are
renovating at minimal cost and making the most from your investment.
- Choosing the wrong REALTOR© or for the wrong reasons.
Many sellers will list their property with the most popular real estate company, the agent
who offers them the lowest commission or the agent that suggests the highest listing
price. The real estate agent, in the end, is how your home gets sold. Choose the one
that is the best salesperson, with the most experience and has the best negotiating
skills. More experience could mean a higher price at the negotiating table, selling in less
time, and with less hassle along the way.
- Not taking the first offer seriously.
Many home sellers believe the first offer received will be one of many. Too many sellers
hold out for a higher price, and end up accepting a much lower offer later on. If an offer
arrives soon after the home is listed, this is usually due to the large amount of promotion
of your home during the first 2 weeks of listing. Consider an early offer, because it just
may be the best one you’ll get.
- Using a “Hard Sell” approach during showings and open houses.
Exceptional REALTORS© let buyers discover a home’s features on their own. Buyers
can usually tell fairly quickly if they connect with the home or not. An agent, who
oversells features of your home during showings, makes buyers think they are paying
for ones they may not want.
- Not knowing your rights and obligations.
The contract you sign to sell your property is a complex and a legally binding document.
An improperly written contract can allow the purchaser to void the sale, or cost you
thousands of unnecessary dollars. Have your REALTOR© fully explain the contract and
any offers, before you agree to sign.