How to Avoid the Four Biggest Home Seller Mistakes
How to Avoid The Four Biggest Home Seller Mistakes
This report reveals the four most common mistakes that will cause your home to expire without a sale. And then leave you wondering what went wrong…
SOME HOUSES DON'T SELL—AVOID THE FOUR BIGGEST MISTAKES THAT WILL COST YOU THOUSANDS.
Like most homeowners, you hope your house will sell quickly. Some houses do. In fact, when done correctly, the majority of houses are sold during the initial listing period agreed to by the seller and Realtor, usually selling in less than three months. But—when done incorrectly—many properties don't sell. In some tough markets, as many as two-thirds of the listings expire unsold.
What should you do now?
If you really want to sell, don't set yourself up for poor results. A sale is within reach. But if handled incorrectly, you will be looking at re-listing your property several months from now because your property will have gone stale. If this happens, you will almost certainly sell for much less than if you do it right the first time.
Are You Committed To Selling?
First, take a step back and review your decision to sell. Do you really want to move? Are you willing to sell for what the market will give you? Although you may feel you want to sell, it is in your best interest to find out what your home will go for in today's market.
Examine the four points in this report, and if approached correctly, you will sell? Any property the does not sell usually reflects a problem in one or more of four major areas: communication, price, condition or marketing.
Why no sale? What did prospects say about price and condition? What feedback did other Realtors offer?
Teamwork between seller and Realtor is a key aspect in knowing how to alter a marketing plan for success. The lack of attention to a listing can be a factor, but it's rarely the whole story. Every seller can boost a property's exposure.
Communication between the seller and Realtor is extremely important to a sale. We are partners. If you didn't feel in the loop when your house was for sale, then your agent wasn't doing their job effectively.
This is the most common culprit for the lack of a sale.
An incorrectly priced house attracts the wrong buyers or worse—none at all. Marketing conditions have likely changed since you initially listed your house. Properties will have sold, additional houses may be listed now, interest rates can move up or down, and seasonal changes will cause market differences. It is recommended to perform an up-to-date, competitive market analysis.
We will review all recently sold and currently for sale properties that are comparable. In addition to comparable values and any renovations you may have completed, I also look at tax assessments of your property and comparable properties, as well as the sale history. The reason you pocket more money with a well-priced home is because of the added enthusiasm that occurs when the right buyer discovers your home. Enthusiastic people pay more!
Many people overprice their property thinking that they can always come down—they will—and usually more than if they had priced their home right in the first place. Did you know that a property priced more than 10% higher than market value only has a one in ten chance of seeing an offer during the original listing period? Conversely, a property that is within 3% of market value has almost a 90% chance of seeing an offer during that same period.
With our analysis, you'll know how your house compares to others offered for sale today. Is your price right? Are your terms and financial incentives competitive? Our goal at this stage is to provide you with the information necessary to make an informed decision. Do you want to sell at what the market is willing to pay? Are you prepared to do what it will take to get your home ready for sale? Activity without offers often indicates overpricing.
Remember, any house, no matter what condition, will sell for the right price. What price is “right” depends on market conditions, competition, and the property's condition. Let me give you a hypothetical example. If you were to put your house up for sale at 50% of its market value. What do you think would happen? I would suggest that you would create a stampede to your door. The nice thing about real estate is that you can create a lot of buyer interest by simply pricing your property correctly - in that sweet spot of recognized value. This will create huge buyer interest and will cause the necessary emotions that will get the buyer to pay you top dollar.
Is your house someone else's dream home? When buyers enter, do they think, “I love this house!”
A house in move-in condition invites a sale. Have you fixed all the little squeaks and drips, cleaned and painted, de-cluttered, brightened up and concentrated on outside curb appeal? Or are you hesitant to take care of major items? For instance, did you offer an allowance for new carpet instead of installing it?
While prospective buyers are trying to imagine what new carpet will look and feel like, they likely are discounting the price still further for the worn carpet underfoot. A house in like-new condition sells faster and gets the best price because it outshines the competition.
We would be happy to tour your house and help you see it as prospective buyers do. We will help you to understand where you should be spending your time and money, as well as things you can let go.
Some Realtors might try to convince you that marketing does not work. It begs the question: if marketing did not work, why would all the large corporations like Coke and Ford still advertise even though they dominate their respective fields?
The key is knowing how to advertise effectively, and that does not mean putting some tiny little ad in the corner of the local paper that cannot be seen. It does not mean holding an open house or sending a flyer to another Realtor. Effective marketing is running great direct response display style ads that stop people in their tracks. Ads must be aimed at the interest of your target audience... your buyer. The role of a marketing program often includes: listing in an area-wide MLS computer network; an advertising program that generates buyers for similar properties in your price range; and other unique activities designed to catch attention. Such as internet marketing with proven response systems in place and 24-hour information lines to get info to the prospective buyer on demand.
Great marketing includes having a system in place that tracks results, enabling you to see what works so that you can repeat it. It is testing and testing again. It is a work in progress that keeps growing and developing as times change with the new opportunities that present themselves. One of the most important aspects of an all-out advertising campaign is not only gaining the direct benefit of having interested buyers call on your property.
Just as important, you get the added benefit of the buyer that wants your home feeling a sense of urgency because they believe that other buyers will want your home as bad as they do. They fear losing out on their new home when they see that your house is being advertised everywhere. They can not help but believe that someone else will buy “their new home” if they don't act fast. Buyers always have a hard time believing that they are the only ones interested in the home they have just discovered. This is human nature, and it is one of the primary secrets of achieving top dollar when selling.
Buyers Are Out There Now
Finally, don't show your house until marketing terms, price, and conditions are set. Buyers are out there right now looking for certain properties. Put your house in buyer-ready condition before listing it, and it won't go unsold.
If you're ready to re-list an expired listing or simply want to talk about what to do next, I'll welcome your call.
How To Know If The Price Is Right
Setting the right price makes a house competitive, reduces selling time and improves the chances of getting a full-price offer. To find the right price, I'll perform a competitive market analysis, which means check out the competition. We'll analyze the final sales price and terms for comparable homes in your neighbourhood for the past six months to a year, depending on local activity. Then we'll look carefully at the competition and see how the value of your house compares with the others similar to yours on the market. Finally, we'll note the prices on any houses whose listings have expired. These prices were probably too high.
Your price should be close to what houses like yours have actually sold for recently, rather than to the current listing prices of comparable properties. Although your house will likely sell for its real market value, by listing it closer to selling prices—not asking prices—it will sell faster and more often for more money.