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| 11 PITFALLS
TO AVOID WHEN SELLING YOUR OWN HOME |
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- Pricing Incorrectly. Every seller wants
to realize as much money as possible when selling their home. But
a listing that is priced too high often nets the seller less than
the fair market value. Many times sellers base their pricing on how
much they paid for, or invested in their home. This can be an expensive
mistake. If your home is not priced competitively, buyers will reject
it in favour of better values. At the same time, the buyers who should
be looking at your house will not see it because it is priced above
their range. The result is increased market time, and even when the
price is eventually lowered, the buyers are wary because "nobody
wants to buy a house that nobody else wants." The end result
is lower offers.
- Failing to Showcase the Home. Buyers look
for homes, not houses, and they buy a home they could move right
in to! Owners who fail to make necessary repairs and keep it clean
and neat chase buyers away as rapidly as REALTORS® can bring them
in. Buyers are often poor judges of the cost of repairs, and usually
build in a large margin for error when offering on such a property.
Sellers are usually better off doing the work themselves ahead of
time. If you were selling a car, you would wash it, or maybe even
detail it to get the highest price. Houses are no different.
- Not Vacating Your Home 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's difficult to do that if you follow
them around pointing out every improvement that you have made. It
may even have the opposite effect by making them feel like they are
intruding on your private space. Buyers will feel more comfortable
asking questions without you at home.
- Mistaking Lookers for Buyers. For Sale
by Owners often get more activity than houses listed with an agent.
REALTORS® will only bring qualified buyers, and these will be fewer
than if you open your front door to everyone who walks down the street.
A qualified buyer is one who is ready, willing and able to buy your
home. Many potential buyers may have a house to sell first, or may
need to save some more, or may have credit that needs fixing. When
everything is in place, that's when they go out looking with a REALTOR®.
- Choosing the Wrong REALTOR®. It's likely that you don't
interview people very often, and yet in order to find the REALTOR®
who is right for you, you may need to interview several. The quality
of your home selling experience is dependent upon your skill at selecting
the person best qualified. It's peculiar that in the real estate
business, someone with many successfully closed transactions usually
costs the same as someone who is in-experienced. Bringing that experience
to bear on your transaction could mean a higher price at the negotiating
table, selling in less time, and with minimal hassles. We've prepared
a valuable checklist of 30 powerful and
insightful questions to ask a REALTOR® before you sign anything.
- Not Knowing Your Rights and Obligations. Real Estate law
is extensive and complex. The contract for sale is a legally binding
document. An improperly written contract can cause the sale to fall
through, or costs you thousands of dollars in repairs, inspections,
and remedies for items included or excluded in the offer. You must
be certain which repairs and closing costs you are responsible for.
- Signing a Listing Contract with No
Way Out.
Many times an agent will have good intentions about marketing your
house, but circumstances can change. Make certain your agent allows
you to cancel your listing contract if they do not perform as promised.
Also, get a guarantee of performance in writing when signing a listing
contract.
- Limiting the Exposure of a Property. The
two most obvious marketing tools - open houses and classified ads
- are only moderately effective. Surprisingly, less than 10% of homes
are sold at an open house. Agents use them to attract future prospects,
not to sell your house! Advertising studies show that less than 9%
of people purchased their home because they called on an ad. The
right REALTOR® will employ
a broad spectrum of marketing activities, emphasizing the ones (s)he
believes will work best for you and your particular home.
- Believing that a Bank Mortgage Appraisal or Provincial Tax
Assessment is the Market Value of your Home. An appraisal
is an opinion for a certain purpose. If a lender wants to lend
you the money, they are motivated to have the appraisal come in
high. Ask your REALTOR® to provide you with all the current market
data in your area, then decide on your list price together.
- Over-improving the home prior to selling. Sellers often
unwittingly spend thousands of dollars doing the wrong upgrades to
their home prior to attempting to sell in the mistaken belief that
they will recoup this cost. If you are upgrading your home for your
personal enjoyment - fine. But if you are thinking of selling, you
should be aware that only certain upgrades are cost effective. Always
consult with your REALTOR® before committing to upgrading your home.
- Failing to take the first offer seriously. Often sellers
believe that the first offer received will be one of many to come.
There is a tendency to not take it seriously, and to hold out for
a higher price. This is especially true if the offer comes in soon
after the home is placed on the market. Experienced REALTORS® know
that more often than not the first buyer ends up being the best buyer,
and many, many sellers have had to accept far less money than the
initial offer later in the selling process. The home is most saleable
early in the marketing period, and the amount buyers are willing
to pay diminishes with the length of time a property has been on
the market. Many sellers would give anything to have back that prospective
buyer who made the first, and only, offer.
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