THE REAL ESTATE MARKET HAS CHANGED
Remember not so long ago, when you could make your fortune in real estate? It was nothing then to buy a home, wait a short while, and then sell it at a tidy profit. And then do it all over again.
Well, as you probably know, times have changed. As good as the market is right now, home prices are still below what they were at their peak. Buyers are far more discriminated against, and a large percentage of the homes listed for sale never sell. It is more critical now than ever before to learn what you need to know to avoid costly seller mistakes in order to sell your home fast and for the most amount of money.
7 Deadly Mistakes Most Home Sellers Make
Failing to analyze why they are selling.
Not preparing their home for the buyer’s eye.
Pricing their homes incorrectly.
Staying home a try too hard to sell their home during showings.
Signing a long-term listing agreement without establishing a marketing plan with their broker.
Making it difficult for buyers to get information on their homes.
failing to obtain a pre-approved mortgage for one’s next home.
Selling your home is of the most important financial decisions in your life. This simple system will give you the tools you need to maximize your profits, maintain control and reduce the stress that comes with the home-selling process:
Know why you’re selling, and keep it to yourself.
The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. What’s more important to you: the money you walk away with, the length of time your property is on the market, or both? Different goals will dictate different strategies.
However, don’t reveal your motivation to anyone else or they may use it against you at the negotiating table. When asked, simply say that your housing needs have changed.
Do your homework before setting a price.
Settling on a listing price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low. Remember that the average buyer is looking at 15 – 20 homes at the same time they are considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorably with others in the price range you’ve set, you won’t be taken seriously by prospects or agents. As a result, your home will sit on the market for a long time, and, knowing this, most new prospects that come into the market will think there is something wrong with your home.
(In fact, your agent should do this for you). Find out what homes in your own and similar neighborhoods have sold for in the past 6-12 months, and research what current homes are listed for. This is certainly how prospective buyers will assess the worth of your home.
Find a good real estate broker to represent your needs.
Nearly three-quarters of homeowners claim that they wouldn’t use the same realtor who sold their last home. Dissatisfaction boils down to poor communication which results in not enough feedback, lower pricing, and strained relations.
Maximize your home’s sales potential.
Each year, Corporate America spends billions on product and packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home.
You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generate a greater emotional response than any other factor. Before showings clean like you’ve never cleaned before. Pick up, straighten, unclutter, scrub, scour, and dust. Fix everything, no matter how insignificant it may appear. Present your home to get a “WOW” response from prospective buyers.
Allow the buyers to imagine themselves living in your home. The decision to buy a home is based on emotion, not logic. Prospective buyers want to try on your home just like they would new clothes. If you follow them around pointing out improvements or if your décor is so different that it’s difficult for a buyer to strip it away in his or her mind, you make it difficult for them to feel comfortable enough to imagine themselves as an owner.
Make it easy for prospects to get information on your home.
You may be surprised to know that some marketing tools that most agents use to sell homes (eg. traditional open houses) are actually not very effective. In fact, only 1% of homes are sold at an open house.
Furthermore, the prospects calling for information on your home value their time as much as you do. The last thing they want is to be subjected to a game of phone tag with an agent or an unwanted sales pitch. Make sure the ads your agent places for your home are linked to a website that provides adequate information about your home 24 hours a day and 7 days a week without having to talk to anyone. It has been proven that more buyers will search online for information than call a broker for information. The more buyers you have competing for your home the better because it sets up an auction-like atmosphere that puts you in the driver’s seat.
Know your buyer
In the negotiation process, your objective is to control the pace and set the duration. What is your buyer’s motivation? Does s/he need to move quickly? Do they have enough money to pay you your asking price? Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.
Knowing your buyer demographic is very important in establishing a proper marketing plan as well. What type of buyer is best suited to purchase a home like yours? Recently married, college graduate, empty-nester, etc.
Make sure the contract is complete.
For your part as a seller, make sure you disclose everything. Smart sellers proactively go above and beyond legal requirements to disclose all known defects to their buyers in writing. If the buyer knows about a problem, s/he can’t come back with a lawsuit later on.
Make sure all terms, costs, and responsibilities are spelled out in the contract and resist the temptation to diverge from the contract. For example, if the buyer requests a move-in prior to closing, just say no. Now is not the time to take any chances of the deal falling through.
Don’t move out before you sell.
Studies have shown that it is more difficult to sell a home that is vacant because it looks forlorn, forgotten, and simply not appealing. It could cost you thousands. If you move, you’re also telling buyers that you have a new home and are probably highly motivated to sell fast. This, of course, will give them the advantage at the negotiating table.