Mistakes that cost you money when selling your home…
Being aware of these mistakes will help ensure you receive top dollar for your home when the time comes to sell your home!
1. Basing asking price on needs or emotion rather than market value.
Don’t base your price on what you paid for or invested in your home. Price it competitively. Otherwise, buyers will reject it in favour of other larger homes that are priced right. Other prospective buyers won’t even see it because it’s priced over their heads. Which means your home won’t sell quickly, and even when your price is lowered, buyers will be wary because "nobody wants to buy a house that nobody else wants". The result is low offers and an unwillingness to negotiate.
2. Failing to "Showcase" your home.
A property that isn’t clean or well maintained is a red flag for the buyer. It means that there could be hidden defects that will result in increased cost of ownership. Sellers who fail to make necessary repairs, don't spruce up their home inside and out, and fail to keep it clean and neat, chase buyers away. 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 home prior to selling.
Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their home prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home 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 Realtor BEFORE committing to upgrading your home.
4. Choosing the wrong Realtor or choosing for the wrong reasons.
You need to choose an agent with the best marketing plan to sell your home. Not the one who tells you the highest price.
5. Using the "Hard Sell" during showings.
Buying a home is an emotional decision. Buyers like to "try on" a house and see if it is comfortable for them. It’s difficult for them to do if you follow them around pointing out every improvement you’ve made. Good Realtors let the buyers discover the home 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 home in favour of a less expensive home without the features.
6. Failing to take the first offer seriously.
Sometimes the first offer is the best and 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 home is placed on the market. The home 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 your Realtor 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 home 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 houses and print advertising) are only moderately effective. Just 1% of homes are sold at open houses, and advertising studies show that only 3% of people purchased their home because they called on a print ad! Agents use these tools to attract future prospects, not to sell the house. The right Realtor will employ a wide variety of marketing activities, emphasizing the ones believed to work best for your home.