selling and buying of a house can be a stressful and confusing process. Not only
is it very expensive to 'learn from your mistakes' but very few people move often
enough to gain the needed experience.
Although there is no substitute for doing your homework (start by asking
your family and friends who have recently moved for their experiences) the following
list of common pitfalls may be helpful.
Pricing Incorrectly (too high or too low):
Make sure you determine the market
value of your home correctly: If your asking price is significantly higher
than what the market is currently bearing, many potential buyers looking for
your style of home will view similar but lower priced homes first. Not only does
this limit the pool of potential buyers but it also increases the chances that
your home will sell for less than its actual value. This is due to the "discount" often
associated with properties that have been on the market for a longer than average
time. Buyers are often overheard asking their Agent... "What's wrong with that
home? It's been for sale forever".
Alternatively, if your asking price is too low, you are literally giving away
your hard-earned equity just because you did not know what the market would bear.
Failing to "Showcase" your home:
A little work can improve the first
impression of your home a thousand-fold. First impressions are lasting impressions
and can dramatically affect a property's perceived value.
Mistaking a Bank's appraisal or a new Tax
Assessment as your home's actual market value:
These processes are based on general guidelines such as lot size and square footage,
not the specific qualities and improvements of your home. Using either of these
as a baseline could cause you to over-price or under-price your property. It
requires detailed background knowledge of all recent neighborhood sales as well
as homes currently for sale in order to estimate value accurately. Ask your REALTOR
for a detailed market evaluation.
Choosing the wrong REALTOR or choosing a
REALTOR for the wrong reasons:
It is critical that you have full confidence in your REALTOR's experience and
abilities. You want a REALTOR who can explain the whole selling process to you,
has a good feel for the market, has access to potential buyers and offers sound
advice on how to improve your chances of selling. Try to avoid choosing a REALTOR
on the basis of which one gives the highest estimate of your home's value. In
order to achieve the best sale price within a reasonable period of time you need
an accurate indication of what the true market value of your property is. Knowing
this allows you to properly price your home, thus maximizing your chances of
selling and allowing you to make your future plans with the sure knowledge that
your goals can be attained.
Failing to take current market conditions/trends
Is it a Buyer's market, a Seller's market, a Balanced market? What do future
trends look like? Ask your REALTOR for a full analysis.
Not taking advantage of market fluctuations:
The Big Picture...
Moving up in a market downturn? If your $150,000 home has dropped 10% in value,
so has your $300,000 dream home. Yes, you lose $15,000 on your current home,
but you save $30,000 on your next purchase! Always keep in mind the big picture.
Using "Hard Sell" during showings:
No one likes being pressured. As well, buyers might wonder why you are so anxious
to sell. Let your home speak for itself.
Mistaking "Lookers" for "Buyers":
Many people who look at homes for sale may just be getting a feel for the market,
seeing how others 'showcase' their homes, or even just looking for decorating
ideas. Your REALTOR deals with these situations on a full-time basis and has
the experience needed to separate the "Lookers" from the actual "Buyers".
Relying too heavily on advice from the Buyer's
The interests of buyers and sellers are often opposing. In an agency
relationship it is very difficult for one REALTOR to look out for the interests
of both the buyer and the seller. You want to make sure you are familiar with
Real Estate relationships and the difference between being a client or a customer
before accepting advice from an agent or entering into any formal relationship
with an agent.
Limiting the marketing and exposure of your
Part of what a good REALTOR does is to ensure that your property is showcased
and marketed in the best and most productive manner possible. Not allowing a "For
Sale" sign on the front yard, or limiting viewing times, can dramatically reduce
the number of prospective purchasers seeing your home and have a serious impact
on your bottom line.
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and Sellers we have put together this multi-media presentation for you to watch
and interact with. It gives you some great tips whether or not your are buying
or selling a home. Click
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