10 Costly Mistakes Sellers Make

1. Pricing Incorrectly

Pricing your home right is the key to selling your home. Every homeowner wants to get the most money for his product. The best way to achieve this is to not overprice your home. What happens if you overprice your home? Right buyers will not see it and buyers who see it will not want it. It’s really simple. Also, overpriced homes tend to stay on a market longer and end up selling for under the market value price. So, do not “test the market for a few weeks and see what happens”. Listen to your REALTOR® who knows the current market and the area.

2. Failing to Showcase the Home

It is a very common mistake among sellers. Poorly kept and messy homes will lower your selling price and even turn away some buyers. You get only one chance to make an impression on your buyer and any showing is a potential offer. Repair your home, declutter your home, clean your home. Don’t take the chances. Remove all personal items like family pictures etc. You want any buyer to imagine himself living in this home. Once you put a house on the market “it’s not” your home anymore.

3. “Hard selling” Your Home During Showings

Rule # 1 – do not be present at showings. Take your kids and animals with you and go for a walk, visit your neighbour or go for a coffee. You should allow prospective buyers to comfortably examine your property. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is home. If you have no choice and you stay home do not follow the buyers and try to sell them your home. People do not like it. They have a professional agent working with them who will point out all advantages of your home and if he misses something he will ask you or your REALTOR®. Instead, stay quietly in a room and move to other place when buyers get to that room.

4. Trying to Sell on Your Own

I do have a very nice article on reasons why not to try to sell your home on your own, especially in today’s market.

5. Limiting the Marketing and Exposure of Your House

Your REALTOR® should employ a wide variety of marketing techniques. With 88% of homebuyers starting the home search on Internet the online exposure of your house is very important. Surprisingly, only 1% of homes are sold at an open house and less than 3% buyers buy a house from the ad. So where do buyers come from? Other agents and Internet. That’s why you want to hire a REALTOR® who employs wide variety of Internet marketing tools like Multiple Listing Service, a personal website, blogs etc.

A Professional Real Estate agent should also be committed to selling your property. He/she should be available for every phone call from a prospective buyer. Most calls are received and open houses are scheduled during business hours, so make sure that your REALTOR® is working on selling your home during these hours. Chances are that you have a job too, so you may not be able to get in touch with many potential buyers.

6. A Re-Finance Appraisal or an Assessment Notice Is Not a Market Value of Your House

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The same is with your tax assessment – it’s for tax purposes only. The market value of your home could actually be lower. Your best bet is to ask your REALTOR® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

7. Not Knowing Your Rights and Obligations

Real estate law is quite extensive and complicated. The Contract of Purchase and Sale is a legally binding contract. So knowing what you’re signing is very important. Your REALTOR® should walk you through and explain you all terms of the contract before you sign it. An improperly written contract can cost you the sale falling through or thousands of dollars. You must be certain which repairs, closing costs and other terms you’re responsible for. You must know if there are any notations on your title or if your property is in conflict with local restrictions. You or your REALTOR® must remedy them or you might have to pay later.

8. Failure 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 property is placed on the market. Experienced Real Estate Agents 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 property 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 find that prospective buyer who made the first and only offer.

9. Over Improving the Home Prior to Sale

Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their property prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your property for your personal enjoyment - fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. See Top 9 Renovation Paybacks.

10. Choosing the Wrong REALTOR® or For the Wrong Reasons

When you decide to sell your home with a real estate agent you have to hire one. It's likely that you don't interview people very often but you have to interview your REALTOR®. The quality of your home selling experience is dependent upon your skill at selecting the person best qualified. You should choose a knowledgeable real estate professional with right marketing program for your house and today’s market. Remember, Internet is huge today so online exposure is vital for the successful sale of your home. And of course you both should be a good fit as both communication and cooperation are very important factors for a successful closing.