Mistakes Property Sellers Make
Monitoring For Sale Prices - Not the actual Sold Prices
The price you aim to achieve needs to be based on facts. Often people will see similar properties advertised for a figure and assume that this is the same region of price that they should be targeting. In fact the psychology of our nature as a real estate owner focuses on the highest of asking prices for similar property - basically it makes us feel better to believe our property is worth more than it actually is.
Worse happens sometimes when people develop a negative attitude to their property and start focussing on the bottom of introduction ranges. This is not a serious concern, if you are not really interested in selling. But once you find yourself more serious about selling, with a genuine reason and definiteness of purpose. You have to prepare adequately by focussing on the actual "sold" price results.
The markets use of asking prices, introduction prices and ranges are too broad and sometimes too deceptive to be used as a guide to the value of your real estate. Focus on the sold figures, record your own list of results, include brief property descriptions and if possible take a drive past the sold house.
Lack of Attention to Presentation
The "bargain" properties are normally the ones that have an appearance of neglect and the owner's loss of interest. You don't need to renovate the property from the ground up but if you want to avoid the bargain hunters put some effort into the presentation of the property.
If for some reason you are restricted from putting some work in yourself. Pay someone else for the maintenance of lawns, arrange for a professional cleaner. If it's a rental property consider providing some rental reduction to get the tenants cooperation. If that's not possible schedule the sale at the end of the lease.
Crowding the Inspections
Whether you are selling the property yourself or have employed an agent. Don't hang around potential buyers during an inspection. Does anyone enjoy shopping when the sales people hover around your every move? The best sales agents know that potential buyers require some space to themselves, to effectively take in the feel of the house in a relaxed manner.
If you have a security concern you should remove it. Simply remove or lock up your items of value. This should be one of the first things you do once listing the property for sale.
If you do happen to meet a buyer obviously be polite remember though the less talk the better. You should be focussing on making the potential buyer feel at home, if you have no where to go during the inspection try to position yourself at opposite ends to the buyers and don't take up space in what would be perceived as the best part of the house - let the buyers enjoy that.
If you are selling it yourself or are just one of those types that have to explain every little detail and benefit of the house to every person that makes an appointment. You should consider printing a handout additional to any brochures that may have been produced. It will be a far more effective and appropriate method of communication than trying to explain all this at the critical time when potential buyers should be free to get a relaxed feel for the property. If they are interested in the house, they can read the handout at their leisure and ask you further questions.
Over Improving the Apartment prior to Selling
While not as bad as doing nothing at all, over improving is importantly still a mistake which can be just (if not more so) as costly. Putting the finest quality fittings throughout, knocking down walls and personalising the house are not necessarily good areas of investment prior to a sale. You wont benefit from the personalisation as you will be shifting and it is highly likely that the new buyer will want to personalise the house themselves, so the risk for reward is great.
You need to know your spending limits that avoid your work becoming a financial loss. This is normally determined by the price range of the most appealing and best property that is of similar location and importantly construction style.
If your house sits in the middle range and the best homes are selling for 10% more don't expect that you can spend 20% of your houses current value and get it back. The chances are that the market for your property under normal continuing circumstances will not support an increase in value greater than the 10% more that the best homes are already getting.
Choosing an Agent for the Wrong Reasons
This is better illustrated by stating the weight of the decision was made for the wrong reason. It is important that you choose an agent that you believe will work to get you the highest price. But you must choose an agent whose highest price is actually realistic and not just something that makes you feel good.
If you let the emotions stirred by an agents price opinion affect your judgement, you will play into a dangerous trap. You need to remove the price issue from the critical decisions affecting which agent you think is the best suited for you and the sale of your house.
For this reason it is important that when interviewing an agent, you make a mental record (preferably take a written note) of the positive and negative responses the agent provided you BEFORE you get the price opinion.
Decide and make a note of whether you would employ this agent or not. Before you hear their price opinion.
Not taking an Early Offer Seroiusly
If you get an offer early in the campaign it is understandably harder to make the decision of acceptance, many areas of doubt are exposed. Is the house too cheap? Has it been shown to enough buyers? They are valid concerns and what you must remember is that it is up to you to be prepared for that fortunate situation of an offer that comes early. This means having clearly identified before going on the market, your goals for wanting to sell and the realistic price range. Also remember that to a buyer the house is more attractive if it has been on the market only a short time as opposed to one that has been around for a while.
If a buyer searching the market for a property like yours some time prior to you placing it for sale makes an offer, it should be viewed as no less legitimate or reasonable than any offer you may or may not receive in the near future.
This mistake can be avoided by having a clearly defined reason for selling and a sound knowledge of the realistic price range.
Warning: Unfortunately sellers who have been pressured into selling to soon or motivated by their agents exaggerated opinion of price have a tougher time avoiding this sometimes very costly mistake.
Not Knowing your Rights or Obligations
Both the contract to place your property for sale with an agent and the contact of sale you hopefully sign with a buyer are complicated and legally binding documents it is important you familiarise yourself with the state laws and seek professional legal advice.
An experienced real estate agent should be able to explain the ins and outs of the contracts but do not leave any ambiguity to chance. Make sure you know exactly what expenses you are up for whether the house sells or not. Make sure you understand any special conditions the buyer may have placed in the contract and again seek professional legal advice.
There are some great government reference sites on the web - You should search further on Google for your relevant real estate authority.
Pets
As much as you may understandably love your pets, they are not necessarily going to be appreciated by all potential buyers and many will actually find them if in the house as being a turn off. While some buyers may be fond of pets it is for the sake of selling your home and ensuring it appeals to the broadest market that some effort will be required on your part to ensure they do not have a negative impact on those buyers who are not fond of pets.
Some people may not be as fortunate as you and have either an allergy or phobia to pets. It is a mistake to think that pets will not affect your property's position as an attractive purchase and it is important to make all potential buyers feel as comfortable as possible when inspecting your property, if you are aiming for the best price.
Take the dog for a walk during inspections, keep bird cages clean as possible, use aromatic scent dispensers, keep their litter area clean and if your pets home is in the house you may have to consider a make shift home in the garage or shed. Possibly a trusted friend or relative can sit them for periods of the campaign. It may be an inconvenience during the sale, to have to go through this effort but it is certainly worth it, particularly when you consider the negative implications that pets do have on many potential buyers.
