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That cost you money when selling a property
#1 Basing asking price on needs or emotion rather than market value
Many times sellers base their pricing on how much they paid for or
invested in their property. This can be an expensive mistake. If your
property is not priced competitively, buyers will reject it in favour of
other better properties for the same price. At the same time, the buyers
who should be looking at your property will not see it because it is
priced over their heads. The result is increased market time, and even
when the price is eventually lowered, the buyers are wary because
"nobody wants to buy a property that nobody else wants". The result is
low offers and an unwillingness to negotiate. Every seller wants to
realize as much money as possible from the sale, but a listing priced
too high often eventually sells for less than market value.
#2 Failing to "Present" the property
A property that is not clean or well maintained is a red flag for the
buyer. It is an indication that there may be hidden defects that will
result in increased cost of ownership. Sellers who fail to make
necessary repairs, who don't spruce up the property inside and out, and
fail to keep it clean and neat, chase away buyers as fast as Real Estate
Agents can bring them. Buyers are poor judges of the cost of repairs,
and always build in a large margin for error when offering on such a
property. Sellers are always better off doing the work themselves ahead
of time.
#3 Over-improving the property prior to selling
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. Always consult with your Real Estate Agent BEFORE committing
to upgrading your property.
#4 Choosing the wrong Agent or choosing for the wrong reasons
Many property owners list with the agent who tells them the highest
price. You need to choose an experienced agent with the best marketing
plan to sell your property. In the real estate business, an agent with
many successfully closed transactions usually costs the same as someone
who is inexperienced. That experience could mean a higher price at the
negotiating table, selling in less time, and with a minimum amount of
hassles.
#5 Using the "Hard Sell" during showings
Buying a property is an emotional decision. Buyers like to "try on" a
property and see if it is comfortable for them. It is difficult for them
to do if you follow them around pointing out every improvement that you
made. Good Real Estate Agents let the buyers discover the property on
their own, pointing out only features they are sure are important to
them. Many sales are lost by overselling. If buyers think they are
paying for features that are not particularly important to them
personally, they will reject the property in favour of a less expensive
property without the features.
#6 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 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.
#7 Not knowing your rights and obligations
The contract you sign to sell your property is a complex and legally
binding document. An improperly written contract can allow the purchaser
to void the sale, or cost you thousands of unnecessary dollars. Have an
experienced Real Estate Agent who knows the "ins and outs" fully explain
the contract you are about to sign to you, or have your lawyer review it
before acceptance.
#8 Failure to effectively market the property
Good marketing opens the door that exposes the property to the
marketplace. It means distinguishing your property from hundreds of
others on the market. It also means selling the benefits, as well as the
features. The two most obvious marketing tools (open properties and
print advertising) are only moderately effective. Just 1% of properties
are sold at open properties, and advertising studies show that only 3%
of people purchased their property because they called on a print ad!
Agents use these tools to attract future prospects, not to sell the
property. The right Real Estate Agent will employ a wide variety of
marketing activities, emphasizing the ones believed to work best for
your property.
Being aware of these Big Time mistakes will help ensure you receive top
dollar for your property when the time comes to sell your property!
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