9 Most Common Mistakes Home Sellers Make

1. Basing your asking price on your needs or emotions and not on market value. Many vendors base their pricing on what is termed subjective value. To an appraiser, subjective value is based on emotions like how much sellers paid for their homes, how much they love their homes and overall pride of ownership.

Setting the asking price of a property should always be based on market value. Appraisers call this objective value. Objective value is what all appraisers base the true value of a property. When considering objective value, an agent looks at the condition of the property, its location, the selling prices of properties with similar features in the same area, the listing prices of other properties in the same area, and the overall condition of the economy and real estate market.

If your home is not priced competitively, the time it takes to sell will be longer as home buyers look at larger or better homes in the same price range. When your price is later lowered, buyers may be wary because they suspect other reasons why the house has remained unsold for so long.

2. Failing to present the home. A property that is not clean or well maintained often suggests hidden defects that increases the total cost of ownership for potential buyers. Sellers should make necessary repairs, spruce up the house inside and out and keep it clean and neat. If this isn’t done, sellers risk chasing away buyers brought in by Realtors. Buyers will leave themselves a large margin for the cost of repairs, reducing their offer price.

3. Over improving your home before you sell it. Most buyers will base their decision on purchasing a home on how they feel about the kitchen and bathrooms. If these areas of the home meet both their emotional and physical needs, it makes it easier to sell a home. It is a good idea to get a real estate professional to do a market assessment of what your home is worth before improvements. The next step would be to get a written estimate for improvement costs. Then have your real estate professional give you an update on the market value to determine how much more money your home will sell for after the improvements are made. This will let you know whether it makes sense to upgrade your home first and then put it on the market, or to just put it on the market for sale the way it is.

4. Vendors may unnecessarily spend thousands of dollars. Sellers often make the mistake of doing the wrong upgrades to their homes prior to selling, expecting to recoup the renovation costs. If you are thinking of selling, ask your Realtor which upgrades are cost effective. Typically the most important and sellable areas of any home are the kitchen and bathrooms.

5. Failure to effectively market the property. Good marketing distinguishes your home from hundreds of others on the market by selling its benefits, not just its features. Open houses and print advertising (the most obvious) are only moderately effective. Only 1% of homes are sold at open houses. And just 3 percent of people purchase their homes after seeing a print ad! Your realtor should be using other methods as well to attract prospects. Ask your sales professional to provide a list of things he or she will do to market your home.

6. Choosing the wrong Realtor or choosing one for the wrong reasons. Many homeowners list with the agent who tells them the highest price, or chose a popular real estate company in the area. Remember it isn’t the sign that sells a home. It is the real estate sales representative. Sellers should always choose the sales representative who provides the most experience, and the one the seller thinks has the best negotiating skills. More experience could mean a higher price at the negotiating table, and selling your home in less time with less hassles along the way.

7. Failing to take the first offer seriously. Many vendors believe that the first offer received will be the first of many to come. Some hope to hold out for a higher price, especially if the offer comes in soon after the home is listed. Often the first offer ends up being the best buyer, and many sellers have had to accept far less money than the initial offer much later on in the selling process. The first two weeks of the listing term are critical. It is during this time that the home will usually get most of its action. Do not let the speed of the offer determine your decision to accept it or not.

8. Using the hard sell approach during showings. Buying a home is an emotional decision and buyers are looking to see if a house is comfortable for them. Good Realtors let the buyers discover the home’s features on their own, pointing out only features they are sure are important to them. Overselling your home during showings makes buyers think they are paying for features that are not important to them. This tactic can lose the sale.

9. Not knowing your rights and obligations. The contract you sign to sell your property is a complex and legally binding document. An improperly written contract can allow the purchaser to void the sale or cost you thousands of unnecessary dollars. Have your Realtor fully explain the contract or have your lawyer review it before acceptance.