Mistake #1 – Incorrect Pricing
It’s a natural tendency to want to get the most money for our home.. The most common mistake that causes sellers to get less than they hope for, however, is setting the list price too high. Listings reach the greatest proportion of potential buyers within the first few days of reaching the market. If a property is dismissed as being overpriced early on, it can result in later price reductions that are lower than what would have been required the first time. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.
Mistake #2 — Re-finance Appraisals are not the Market Value
Re-finance appraisals can be misleading for homeowners, they assume that the appraisal is the amount that they should expect to receive for their property. However, lenders often estimate the value of your property higher than it actually is in order to encourage re-financing. The market value of your home could actually be (and often is) lower. Your best bet is to ask your Realtor® for the most recent information regarding property sales in your community, a Comparative Market Analysis. 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, it is still a widespread error. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make all necessary repairs. Clean. Make sure everything functions and looks presentable, and remove as many possessions as you can prior to showing. In other words, de-clutter. A poorly kept home, or one with too much clutter, will make it dramatically more difficult for buyers to become emotionally interested in your property.
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. If at all possible, you should leave them with their Realtor® to look by themselves. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. Pointing out any unnoticed amenities and being receptive to questions is advisable, but this is not the time for negotiation and salesmanship.
Mistake #5 – Trying to Sell to Lookers
A prospective buyer who shows interest because of a For Sale sign or an open house ad may not really be interested in your property. Often, buyers who are not accompanied by a Realtor® are 6-9 months away from buying, and 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.
Let your Realtor® distinguish realistic potential buyers from mere lookers. Realtors® will usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. This will help you avoid wasting valuable time marketing to the wrong people.
Mistake #6 — Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details of 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 any 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 be costly.
Mistake #7 – Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best Realtor® 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. Also, you should 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. Be sure to have control over your situation before signing a real estate listing agreement.
Mistake #8 – Limited Marketing
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 solely to attract future prospects, not to sell that particular house. Does your Realtor® have a website? There are very few successful real estate professionals who don’t, and for good reason.
Your Realtor® must employ a wide variety of marketing techniques and should be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and showings are scheduled, during business hours, so make sure that your Realtor® is working on selling your home during these hours and not working another non-real estate job.
Mistake #9 – Choosing the Wrong Realtor®
Selling your home is often the most important financial transaction in your lifetime. As a result, it is extremely important that you select a Realtor® who is a good match for you. An experienced real estate agent often cost the same as a brand new agent, but the chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles.
Take your time when selecting a real estate agent. Interview several; ask them key questions. If you want your selling experience to be the best it can be, it is crucial that you select the best agent for you.
Your Advocate in the Greater Nashville Real Estate Market
We help our clients understand the ever changing real estate market with the goal in mind of making informed, forward thinking choices. Whether you’re ready to buy in the Greater Nashville area or you’re thinking of selling, The Linda Seaton Team is your real estate advocate! Give us a call to discuss your real estate needs or even easier – just drop us a note right here.