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Mistake #1 -- Placing the Wrong Price on Your Property
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to cross your property off their “wish list” before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell and end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been quoted as an artificially high price. It is common for lenders to estimate the value of your property to be higher than it actually is in order to encourage re-financing. The actual market value of your home could be significantly lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, the best way to “showcase” your home is to make your home look as inviting as possible. Make necessary repairs. Clean, and keep things clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and can easily turn away some buyers.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. As hard as it is, it is best to make yourself scarce - allow your real estate professional to handle the showing. They are experienced with all types of prospective buyers and can show your home to its best advantage, answer questions, and provide feedback to you so you may continually improve your chances of selling your home quickly.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Buyers who do not come through a realtor are often a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, it would be best to find a new realtor.
Mistake #6 – Not Being Knowledgeable of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money. Unless you are confident of your ability to understand the intricacies of these legally binding documents, it is best to find a real estate professional who can walk you through the process.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best real estate professional for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. You should also have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one without consulting you. The best way is to ask the right questions, and to have control over your situation before signing a real estate contract.
Mistake #8 - Limiting the Marketing and Advertising of the Property
There are two obvious marketing tools that nearly every seller uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house.
Your realtor should employ a wide variety of marketing techniques. It is best to determine what methods your real estate professional uses. Your realtor should be committed to selling your property - he or she should be available for every phone call from prospective buyers. He or she should be available to you in case you have questions. Many potential buyers will place calls during all hours of the day. Find out if your realtor is available during business hours and evening hours, or how they may be reached. Ask their policy on how quickly they return calls.
Mistake #9 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor that is best for you. Experienced real estate agents often have the same commissions as brand new agents. Chances are that the experienced agent will be able to sell your home for a higher price in less time and with fewer hassles.
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