Pricing Incorrectly
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Every seller wants to realize as much money as possible when he sells his home. But a listing price that is too high often gets the seller less than a price that is at market value. If your house is not priced competitively, people looking in your price range will reject your house in favor of other, larger homes for the same price. Overpricing usually increases time on the market, and that adds to the carrying costs. Ultimately, many overpriced properties sell below market value.
Believing that a Re-finance Appraisal is the Market Value of Your Home
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An appraisal is an opinion of value for a certain purpose. If the lender wants to lend you the money, they are motivated to have the appraisal com in high. Te appraiser may ignore foreclosure or distress sales in order to justify the high value. But a real buyer in the real world will not ignore these properties. They are your competitors when you try to sell.
Don’t make the mistake of thinking that the value you were told 6 months ago when you refinanced is what a real buyer would pay. Ask your real estate agent for a comparative market analysis (CMA) showing ALL the solds in your area, then decide based on up to the minute information.
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 clean and neat chase buyers away as rapidly as Realtors can bring them.
Using the “Hard Sell” During Showings
· Buying a house is an emotional decision. People like to “try on” a house and see if it is comfortable for them. It’s difficult for them to do that if you follow them around pointing out every improvement that you made. It may even have the opposite effect you want, by making them feel they are intruding on your private space.
If your home is being shown by a real estate agent, the sellers should be away from the house to provide the buyer with a comfort level that will give them an opportunity to appreciate your home.
Mistaking Lookers for Buyers
· For Sale By Owners always get more activity than houses listed with an agent. Usually real estate agents 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 house. We find that most people who go looking at For Sale By Owner are just starting to think about moving. They may be good buyers, but they’re just 6-9 months away from being ready. They don’t want to bother an agent yet, so they call the “By Owner” ads to get a feel for what’s available. They 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.
Not Knowing Your Rights & 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 and closing costs you are responsible for. 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, you must remedy them, or you might have to pay a great deal.
Limiting the Marketing and Exposure of the Property
· The two most obvious marketing tools (open houses and classified ads) are only moderately effective. Surprisingly, less than 1% of homes are sold at an open house. Some agents use teem to attract future prospects, not to sell the house!
The right Realtor will employ a broad spectrum of marketing activities, emphasizing the ones the agent believes will work best for you. There are dozens of more effective ways to find buyers than just open houses and advertising. By the way, and agent or a trained member of the agent’s staff will be there every time the phone rings. Did you know that most calls come in during business hours when sellers are away at work, and most home showings are between 9:00 and 5:00 Monday through Friday?
Choosing the Wrong Realtor, or Choosing for the Wrong Reasons
· It’s interesting that in the real estate business, someone with many successfully closed transactions could mean a higher price at the negotiating table, selling in less time, and with the minimum amount of hassles.
Remember that the world is populated with agents who are wrong for you. For example, the housewife who sells and occasional house because she needs a little pocket change, or the insurance salesman who believes he can handle two careers. Or perhaps your friend who is new to the business but really needs your business.
The sale of your home could well be the most important financial transaction you have ever been involved with. 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.
Choose Robert A. Hulme to be your Realtor. Robert has over 4 years of successful full time experience and representation of lots of clients and is ready to help you meet your real estate goals! Give Robert a call at (801) 885-2586 or robert@RobertHulme.com.