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Common
Selling Mistakes
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 lose interest
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 they 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 stated at
an untruthfully high price. Often, lenders estimate the value
of your property to be higher than it actually is in order to
encourage re-financing. The market value of your home could
actually be 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, do
not forget to make your home look as pleasant as possible.
Make necessary repairs. 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 will
even 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. Don't try haggling or
forcefully selling. Instead, be friendly and hospitable. A
good idea would be to point out any subtle amenities and be
receptive to questions.
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.
Often buyers who do not come through a realtor are 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, consider finding a new realtor.
Mistake #6 -- Being Ignorant 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 your 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 kind of questions could end up costing you a
considerable amount of money.
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 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. Your realtor should also 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
open houses are scheduled, during business hours, so make sure
that your realtor is working on selling your home during these
hours. Chances are that you have a job, too, so you may not be
able to get in touch will many potential buyers.
Mistake #9 - Choosing the Wrong RealtorŪ
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 cost as much as brand new
agents. 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 agents; ask them key questions. If you want to make
your selling experience the best it can be, it is crucial that
you select the best agent for you.
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