After being in Real Estate for over 30 years, I can tell you that I’ve seen my share of mistakes that many sellers make.
I want to share them with you so you can avoid these common pitfalls when you sell.
Please feel free to contact me or my staff if you have any questions about selling your property. We’re always ready to share our knowledge.
Here are the top four mistakes sellers make:
1. Basing your asking price on emotion not market value
Many sellers base their price on emotion. How much a seller paid for their home, how much they love their home, pride of ownership are all examples of emotion.
The asking price of a home should always be based on Market Value. Market value looks at the condition of a property, its location, what properties with similar features in the same area are selling for, what other properties in the same area are listed for and the overall condition of the economy and the real estate market.
If your home is not priced competitively, homebuyers will prefer larger or better homes in the same price range, increasing your time to sell. When your price is later lowered, buyers may be wary because they suspect other reasons the house has remained unsold so long.
2. Failing to �Present� your home
A property that is not clean or well maintained often suggests hidden defects that increase the total cost of ownership. Sellers should Spruce up the house inside and out, keep it neat and clean, or risk chasing away buyers. Buyers will leave themselves a large margin for error for the cost of repairs, reducing their offer price.
3. Doing the wrong upgrades before selling
Sellers may spend thousands of dollars doing the wrong upgrades prior to selling, expecting to recoup the cost. MoneySense suggests that typically the most important and saleable areas of the home are the kitchen and bathrooms.
4. Failing to effectively market the property
Good marketing distinguishes your property from the others on the market, selling its benefits. Open houses and print advertising are only moderately effective. Only 1% of homes are sold at open house, and just 3% of people purchased a home after seeing a print ad. According to Toronto at Home, 54% of Canadian internet users use online real estate listings. Make sure that your Realtor uses multiple methods to market your home.
If you’re thinking of selling your home ask for our Home Presentation Brochure, with more details on how to best present your home for sale.
5. Choosing the wrong Realtor for the wrong reasons. Many homeowners list with the agent who tells them the highest price or a popular real estate company in the area. Sellers should choose the sales representative who provides the most experience. More experience could mean a higher price at the negotiating table, selling in less time and with fewer hassles along the way.
6. Failing to take the first offer seriously. Many sellers hold out for a higher price when receiving a first offer, especially if the offer comes in soon after the home is listed. However, the first offer often ends up being the best price, and many sellers have had to accept far less money than the initial offer much later on in the selling process. The first two weeks of the listing term is critical. It is this time that the home will usually get most of its action. Do not let how quickly the offer came in determine your decision to accept it or not.
7. Using �Hard Sell� during showings. Good Realtors let buyers discover a home�s features on their own, pointing out only features they are sure are important to them. Overselling your home during showings may make buyers think that they are paying for features that are not important to them, and can actually lose the sale.
8. 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 dollars. Have your Realtor fully explain the contract or have your lawyer review it before acceptance.