Selling your home? Don't fall into the trap that
many homeowners fall into. And that is overvaluing their home. It's
an understandable mistake, but one that could prove costly if it
slows down the sale and/or makes other homes look like a good value
in comparison.
I've listed what I find are five of the most common mistakes sellers
make. I've listed them here, along with how to avoid them in order
to get the best price for your home in the shortest amount of time:
- Over-pricing
Based on an emotional assessment, it is easy to think your home
is worth more than the current market may support. After all, it
has been special to you and your family, and what about those
little additions, changes and improvements you've made over the
years? The question is, how important are those changes to a
potential buyer? How up-to-date are they? Considering your home
and other comparable homes on the market, how does your home
really stand up to the others? There are many things to
consider.
To determine a reasonable listing price, work with a real estate
professional familiar with your area. Ask for sales statistics
on homes in the neighborhood including listing prices and actual
sales prices, how long it took for the homes to sell, and
government valuation comparisons. Be sure to ask your real
estate professional for a market appraisal on your property.
Talk to friends or neighbors who've recently bought or sold a
home. Visit homes for sale in your area and compare what you see
in terms of sales appeal.
Remember that real estate markets can change quickly, and that
comparables from several months ago may not give you an exact
picture of the current market. Determine if there are more or
fewer new listings at present. Are prices up or down? If it's a
soft market, there's likely to be a larger gap between listing
and selling prices. If homes are selling quickly with multiple
offers, demand may be outstripping the current supply of
available properties for sale. All of these factors will play a
role in determining your listing price.
- Negligent
Housekeeping
Take a good, objective look at the condition of your home. Is
the paint fresh on walls and wood trim? Is the carpet clean? Are
windows sparkling? Are tiles chipped and in need of repair? Does
the front of the house have "curb appeal," meaning is
it inviting and attractive? Clean, well-kept homes with an
updated appearance always have an advantage, and a little
decorating appeal can go a long way. Be sure to gather up any
clutter and put it away. Potential buyers don't want to see your
"messes." They need to envision themselves living in
the home.
Consider that home developers spend hundreds of thousands of
dollars "marketing" model homes that are picture-
perfect with attractive wallpaper, carpet, furnishing and
accessories for a reason. They create a mood, an ambiance, an
overwhelming sales appeal that makes the potential buyer fall in
love. Would-be buyers, after all, are looking for a
"lifestyle" as well as shelter. Give it to them. You
don't have to buy new furniture to create charm, but you can put
toys and clutter away, freshen up paint and carpet, make the
most of window coverings, and add a few key accessories in order
to send out welcoming signals. You want to put out the message
that life will be good, better, best in your home!
- Failing
to Fix-It
In keeping with the sales appeal message above, consider that
new buyers are probably going to be happiest moving into a new
home that is in perfect or near-perfect condition. If they have
to fix the roof, a broken tile floor, the garage door, sagging
wallpaper or just about anything, this may give them pause about
buying. At the least, it may lower the value of the home in the
prospective buyer's mind. For best results, make sure any work
on the home and the landscaping is done ahead of time. A
model-perfect home is going to attract the highest price.
- Failing
to Identify Exclusions
This can be a cause of contention just at a critical point in
the sale. To avoid any problems, be sure to specify any special
sales considerations or exclusions from the chattel list.
Generally, anything permanently fixed to the house is a
"chattel" or asset that stays with the home after the
sale. If your grandmother's antique chandelier is hanging in the
dining room and you intend to take it with you, specify clearly
that it is not included in the sale price.
- Failure
to Understand Your Agent Agreement
Be sure to check on fees, commission percentages and timeframes.
Understand the type of agency agreements when you sign with a
real estate professional or company. Your real estate
professional should explain the differences between exclusive
and general agencies. Understand exactly what the sales
professional's fee percentage is and get it in writing. You may
want to get several written quotes on fees before you select a
real estate professional. And, be sure that you understand your
agreement in terms of the timeframe you are contracting for with
your representative. Discuss details such as when you want to
hold open houses. Your sales endeavor is likely to go the
smoothest when all parties have a clear understanding of what is
expected and nothing is left to question.
If you have questions about the escrow
process, confer with your real estate professionals who can help
provide you with more detail with this or any other home buying or
selling subject..
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