Home selling is a tedious job, which is quite complicated. It is important that you do your research properly before making your property available for sale. You will also need to take professional help in order to streamline the process. A good seller agent can guide you at every step and help you avoid making mistakes. Some of the most common mistakes that sellers make are:
Mistake#1: Overpricing your home
This is one of the most common mistakes that the seller makes. It’s okay to be emotionally attached to your property but when you are planning to sell it, you need to be practical. There are few agents who might advice you to overprice your home and then bring it down during negotiations. This doesn’t work. Usually buyers avoid high priced property and if you will lower the price with the passage of time, they might think that there’s something wrong with the property. Try to come up with a genuine selling price after doing your research and drawing comparables from different properties in the neighborhood.
A high priced property takes longer to sell and the longer your property sits on the market, the lesser chances it have to sell. Apart from that, it will also increase your overall costs because the longer it takes to sell, the more taxes and maintenance costs it will incur.
Mistake#2: Trusting your lender’s estimate about your property
A lender usually overprices the property because they want you to get refinancing. When you will go out and compare the property’s price with other properties in the neighborhood, you will figure out that the lender might have overpriced it. It is important that you sit with your real estate agent to come up with a moderate price after looking at active and sold listings in the neighborhood.
Mistake#3: Overselling your home
There are many sellers who try to oversell their property. They behave like a typical clingy salesman who wants to sell his product. It doesn’t work. You might scare the potential buyers. It is advisable for the seller to stay away from their homes during the visit. If you are planning on sticking to the prospective buyer when they are visiting your home, it’s not a good idea. A buyer needs to feel emotionally attached to the property and for that, they need some space.
Mistake#4: Keeping your home messy
There are sellers who don’t want to spend a penny on their homes before selling it. You need to make sure that your home looks presentable. You need to make sure that it’s tidy. If its need new paint, it is better to paint it. Do not spend too much on selecting different colors. Try to paint your home in a low-tone color, so it looks brighter. Move the furniture. Try to create some space, so the buyer can imagine filling that space and living in the house.
Kitchens and bathrooms are one of the most important USPs of any property. You need to make sure that they are clean or the buyers might freak out.
Mistake#5: Selling your home to Lookers
There’s a huge difference between a looker and a serious buyer. Lookers are the people who can’t afford to buy the home but they keep looking for future reference. It is your agent’s job to filter them. You don’t have to waste your marketing efforts on them. They will find a potential buyer by looking at their credit history and purchasing power. If your home have a “For Sale” sign, it doesn’t mean that anyone can pay you a visit. If you do get prospective buyers at your door, it is important to lay down a firm boundary. Tell them to book an appointment with your agent
Mistake#6: Working with less motivated agent
Finding a good real estate agent is one of the most important steps in the home selling process. It is important that you do your research before signing a contract with an agent. If someone in your friends or family had a good experience with a realtor, it doesn’t mean that you will have the similar experience too. You need to meet them and discuss your requirements. Try to figure out:
- how motivated they are
- what kind of experience they have
- what kind of homes and neighborhoods they deal in
- which brand they are associated with
- do they have time for you?
Mistake#7: Signing a Rigid Contract
A real estate contract needs to be sign between the seller agent and the seller. It’s a contract which states that a certain real estate agent will represent you during the sale and he/she will guide you during the entire home selling procedure. Remember, that they aren’t doing this for free. It’s a commission based job and they would be making good money in the end. That’s why; the contract needs to be in your favor.
Don’t sign a contract which seems too rigid for you. Make sure that you have the right to fire your agent if you aren’t satisfied with his/her services. It is important that you have control over the situation. It has to be in your best interests because your house is at stake here. If the agent insists on creating a rigid contract, it is a good idea to think about other options.
Mistake#8: Signing a Purchase Agreement without understanding the terms and conditions
A Purchase Agreement is a real estate contract signed between the seller and a buyer in the presence of an attorney and respective agents. Before signing a contract, it is important that you read it thoroughly and understand all the terms and conditions. If there is some difficulty in understanding, ask your real estate agent. You can also take some legal advice. You need to endure that there aren’t any terms that you would not like to adhere. For example, a lot of sellers don’t want to pay for the repairs or some of them want to divide it with the buyer. Everything needs to be clearly mentioned in the contract. Verbal contracts or promises have no value in the eyes of law.
Being a seller, you are bound to make some of these home selling mistakes but it is important to understand the entire process diligently. It will work in your favor. Do not completely rely on other person, do your own research too. It will give you confidence.
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Listing information last updated on July 28th, 2017 at 11:47am CDT.