9 Deadly Mistakes Home sellers Make
or Staying Out Of The Dog House
Mistake #1. Using a real estate agent instead of
a REALTOR®
When you're looking for help buying
or selling property, it's important to remember that the terms "real estate
agent" and REALTOR®" are not synonymous. Realtors can provide an extra
level of service and to be a Realtor you must be a member of the National
Association of Realtors (NAR). The equivalent organization in Canada is
the Canadian Real Estate Association (CREA). Both are non-profit trade
organizations that promote real estate information, education and professional
standards. The National Association of Realtors also has earned a strong
reputation for actively championing private property rights and working to make
home ownership affordable and accessible. The NAR and CREA members adhere
to a strict code of ethics founded on the principle of providing fair and honest
service to all consumers. Realtor business practices are monitored at
local board levels. Arbitration and disciplinary systems are in place to
address complaints from the public or board members. This local oversight
keeps Realtors directly accountable to the individual consumers they serve and
therefore the consumer is more likely to find better service and accountability
by using a Realtor.
Mistake #2.
Complacent marketing when selling a home
When selling your home there are no
guarantees that the ultimate buyer of your home will have simply walked through
the front door. In many cases you may have to bring your home to the
buyer. Effective marketing will help ensure that your property receives
maximum exposure to attract a ready, willing and able buyer in the shortest
period of time. Ask your Realtor to list for you all of the ways he/she
intends to market your home and on what time-line. Also, be sure to ask
about the home being advertised on the internet.
Mistake #3. Taking
for granted the "curb appeal" of your home
When you're preparing your house
for sale, remember the importance of first impressions. A buyer's first
impression can make or break whether they even want to go inside for a look.
It is estimated that more than half of all houses are sold before the buyers
even get out of their cars. With that in mind, be sure to stand outside of
your home and take a realistic "fresh look" and then ask yourself what can be
done to make the "curb appeal" improve. Also ask your Realtor's opinion as
to how to improve the curb appeal. It could make a huge difference in your
final sales price.
Mistake #4.
Forgetting about health and safety issues
Be upfront and disclose to your
Realtor any problems with the property. The problems are going to be
discovered anyway. A decade ago, health and safety issues were rarely a
part of the typical real estate transaction. Today, however, it's common
for inspections relating to health, safety, and even environmental concerns to
be a part of most sales contracts. Moreover, in many states, the seller
must disclose to the buyer any knowledge of existing property problems. In
many cases, these issues have been or can be factored into the home's listing
price.
Mistake #5.
Forgetting what you would want to see if you were the buyer of your home
Remember that although people can
be different in personality, they tend to be the same when it comes to
expectations at someone else's expense. In other words, a prospective
buyer would probably like to see a perfect home from top to bottom, inside and
out, when it comes to your home. Try to do as many of the following items
as possible to improve the likelihood of your home sale in an expedient way.
On the outside
-
Sweep front walkway
-
Remove newspapers, bikes and toys
-
Park extra cars away from the
property
-
Trim back the shrubs
-
Apply fresh, clean paint throughout
-
Clean windows and window coverings
throughout
-
Keep plumbing and all appliances in
working order
-
Maintain all sealant
-
Make sure roof and gutters are
clean and in good condition
-
Mow the lawn frequently and plant
flowers
-
Keep pet areas clean
On the inside
-
The kitchen and bathroom should
shine
-
quick once-over with the vacuum;
carpets should be clean
-
Place fresh flowers in the main
rooms
-
Put dishes away, unless setting a
formal display for decoration
-
Make all beds and put all clothes
away
-
Open the drapes and turn on lights
for a brighter feel
-
Straighten closets
-
Put toys away
-
Turn off television
-
Play soft music on the radio
-
Keep pets out of the way and pet
areas clean and odor-free
-
Secure jewelry, cash, prescription
medication and other valuables
-
Enhance the spaciousness of each
room
Mistake #6. Thinking
you need to be in the home to explain things to a prospective buyer
You will be better served if you
allow your Realtor to do their job without you there. Most potential
buyers usually feel more comfortable if they can speak freely to the real estate
professional without the owners being present. If people unaccompanied by
an agent request to see your property, you should refer them to your real estate
professional for an appointment.
Mistake #7. Not
knowing how to price your home to sell
Perhaps the most challenging aspect of
selling a home is listing it at the correct price. It's one of several
areas where the assistance of a skilled real estate agent can more than pay for
itself. Listing the home too high can be as bad as too low. If the
listing price is too high, you'll miss out on a percentage of buyers looking in
the price range where your home should be. This is the flaw in thinking
that you'll always have the opportunity to accept a lower offer. Chances
are the offers won't even come in, because the buyers who would be most
interested in your home have been scared off by the price and aren't even taking
the time to look. By the time the price is corrected, you've already lost
exposure to a large group of potential buyers. The listing price becomes
even trickier to set when prices are quickly rising or falling. It's
critical to be aware of where and how fast the market is moving - both when
setting the price and when negotiating an offer. Again, an experienced,
well-trained agent is always in touch with market trends - often even to a
greater extent than appraisers, who typically focus on what a property is worth
if sold as-is, right now.
Mistake #8. Not planning your
move early enough
Many sellers simply don't plan their move
early enough and then feel totally overwhelmed at the time of moving out of the
house. If you are able to move at any time of the year, don't wait until
summer, the peak moving season. Consider also that the first and last few
days of the month are extra busy. If you plan to sell your house, get it
on the market as soon as possible. Keep a record of all expenses related
to the move, some of which may be tax deductible. Fill out the personal
household inventory for each room. This is important for establishing the
amount of declared valuation for the shipment and as a permanent inventory for
insurance purposes. List, as nearly as possible, the year of purchase and
original cost of each item. Attach any invoices or records of purchase to
the completed inventory. Prepare a separate high value inventory if the
shipment will contain articles of "extraordinary" value. Also, unless you
have been given a binding moving estimate where a firm cost is established in
advance, the exact cost of a move cannot be determined until after the shipment
has been loaded on the van and weighed. The weight on which charges are
based is calculated by weighing the van before and after loading. The
total cost of the move will include transportation charges, any charges for
declared valuation, plus charges for any extra services performed at your
request. All of these charges are based on tariff rate schedules.
Mistake #9. Using a
"convenient" Realtor rather than using an experienced Realtor
When working with a real estate agent, it's
critical that you have full confidence in that agent's experience and education.
A skilled, knowledgeable agent should be able to explain to you exactly why your
home needs to be priced at a certain level - compared to recent listings and
sales of homes similar to yours. Experienced agents also know exactly what
the current pool of buyers are looking for in relation to particular styles and
price ranges of properties. A skilled agent can recommend changes that
will enhance the salability of your home, thus increasing the price - and/or
decreasing the length of time before a sale.
