Deadly Mistake #1: Pricing Incorrectly
Every seller wants to realize as much money as possible when he sells his home – but an asking price that is too high often costs the seller more than a price that is too low. If it is priced too high, Realtors may not waste time showing that house, and interested buyers may hesitate to make an offer, feeling it would be too low to be considered. Overpricing usually increases time-on-market, and that adds to the carrying costs. As the property becomes shopworn and stale on the market, buyers lose interest in it. Ultimately, many or most overpriced properties sell below market value.
Instead of asking a high price and planning to come down later, let your realtor help you decide on the right price – the price your home will sell for in today’s market.
Deadly Mistake #2: Failing to “showcase” the home
Buyers look for homes, not houses, and they buy the home in which they would like to live. Owners who fail to make necessary repairs, who don’t spruce up the house inside and out, touch up the paint and landscaping, and keep it spotlessly clean and neat chase buyers away as rapidly as Realtors can bring new ones to them.
Deadly Mistake #3: Failing to get professional help
People who always see physicians for medical care and lawyers for legal problems sometimes try to sell their most important possession – their home – by themselves. Because they don’t understand everything a realtor does (and therefore everything they will have to do by themselves), they sometimes bite off a very big mouthful of problems.
Deadly Mistake #4: Not pre-qualifying buyers
If you regularly open your front door for everyone who walks down your street, let them have free run of your home, and show them all your valuable possessions, you may not care how conscientiously your Realtor pre-qualifies the house shoppers she brings into your home.
It’s tough to ask a stranger how much money he can really spend for a house, how much money he earns, how much he has to put down, how good his credit in, how much he will realize when he sells his present home – and about a dozen other questions like that. But unless your Realtor finds all the facts first, you must ask all those questions before the shopper crosses your threshold. Otherwise, you may have to entertain a parade of Sunday afternoon shoppers who have a dream of owning a home some day.
Pre-qualification is a relative thing, of course. A Realtor who is an expert in mortgages and the mortgage market can often find ways for the people who like your home to buy it, while another Realtor may just decide that this buyer can’t afford your house, and not show it.
Deadly Mistake #5: Not knowing your rights AND obligations
Real estate law is extensive and complex, the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections, and remedies for title defects. You must be certain which repairs must be made and paid for by you. You must know whether the property can legally be sold “as is.” and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if your property is in conflict with local restrictions, or if your property is in conflict with local restrictions, you or your Realtor must remedy them, or you might have to pay big time.
Deadly Mistake #6: Becoming emotionally involved in the negotiations
Negotiation takes skill, training, and experience. Sometimes a seller is more adept than the buyer, but often the buyer has most of the leverage on his side, since he has a list of house he would accept at the right price, while the seller has only that one long-sought offer on the table. But emotions kill more deals than does bargaining ability. Sellers who are “too close” to the deal often take less for fear of losing the best offer they have had yet. If your Realtor doesn’t do her job for you in the negotiations, you lose. And if you do the bargaining yourself, prepare to deal with buyer’s remorse (or seller’s remorse), because it often comes.
Deadly Mistake #7: Limiting the marketing and exposure of the property
The two most common marketing tools (for-sale signs and classified ads) are, surprisingly, only moderately effective devices. The sign is mostly seen by people on their way to or from their homes (in your neighborhood); classified ads reach only the people who read that page of that paper that day. And if either the seller or the Realtor isn’t by the phone when it rings, that minimal promotional activity wears even thinner.
The right Realtor will employ a broad spectrum of marketing activities, emphasizing the ones she believes will work best for you. She or a trained member of her staff will be there every time the phone rings. By the way, most calls come during the business hours when sellers are away at work, and most home showings are between 9:00 and 5:00 Monday through Friday.
Deadly Mistake #8: Lacking the skill to “close” a potential buyer
In a competitive environment like the real estate market, a seller absolutely must know the territory. A top light Realtor will know the market right now, including up-to-the-minute prices and market trends. Sellers often have a good grasp of the value and market acceptability of their own homes, but sophisticated buyers who have seen a dozen houses this week often know the broad market better and therefore they often can negotiate a better price for themselves. When a buyer is almost ready to buy, and almost ready to pay a fair price, it’s nice to have a top grade Realtor standing beside you.
Deadly Mistake #9: Choosing the wrong Realtor, or choosing him/her for the wrong reasons
The world is well populated with Realtors who are wrong for you. Start with the housewives who sell an occasional house because they need a little pocket change, and the insurance salesman who believe they can handle two careers. Add you cousin George, who says he really needs the business.
You can spot and avoid those who lack experience if you will just ask a few questions, but it is not enough to just avoid the part-timer: you can have the best Realtor in town if you take the time to look. It is crucially important that you choose a Realtor who has learned the craft well. You want a variety of attributes in your Realtor, ranging from strong negotiation skills for use in the final minutes, to competence in all facets of selling your property. Your realtor must have the drive to work hard for you, as well as the financial strength to back your property with great advertising and marketing. Make sure she has a staff of at least two or three trained employees who can relieve her of the details and give her time to actively promote your house.
You can learn a remarkable amount about your Realtor by just asking every question that comes to your mind, but you will discover even more if you ask her to show you her record of success. Ask her how she ranks in sales among all the other Realtors in your community. Ask her how many houses she sells each year. Ask how long it takes her to sell one, then compare that to the average Realtor accomplishments. Ask her for the names of the last ten home sellers who listed their homes with her (don’t accept a list of her good friends), and call every one of them.
The sale of your home could well be the most important financial transaction of your life. The person you select can make it a satisfying and profitable activity, or a terrible experience. It’s your home, and your money. The choice of your Realtor is up to you. Make that selection carefully.
