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How to avoid the eight most critical mistakes when selling your home

Critical Mistake No.1: Pricing the home incorrectly

Correct Price
Achieving the right price is Critical

Every seller wants to realize as much money as possible when they sells their home. But a listing price that is too high often gets the seller LESS than a price that is at market value. If your house is not priced competitively, people looking in your price range will reject your house in favor of other larger homes for the same price. At the same time, people who should be looking at your house will not see it because it is priced over their heads! Overpricing usually increases time on the market and that adds to the carrying costs! Ultimately, many overpriced properties sell below market value.

To help avoid this we have an informative video to help you select the right price. You'll learn the following:

  • The difference between COST and PRICE
  • What market VALUE really is
  • How the principles of PROGRESSION and REGRESSION apply to your home
  • How much BARGAINING ROOM to leave in your price
  • The difference between COST and PRICE
  • What market VALUE really is
  • How the principles of PROGRESSION and REGRESSION apply to your home
  • How much BARGAINING ROOM to leave in your price

Once you learn these principles you'll know how to sell your house for the best price. Not only that, you'll also know how to avoid paying too much for any house you buy for the rest of your life! Just call our office and we'll send this valuable video to you.

Critical Mistake No.2: Failing to "showcase" your home

Buyers look for homes, not houses, and they buy the home in which they would like to live. Owners who fail to make necessary repairs, who don't spruce up the house inside and out, touch up, the paint andlandscaping, and keep it clean and neat, chase buyers away as rapidly as REALTORS can bring them. If you were selling a car, you would wash it, or maybe even detail it to get the highest possible price. Houses are no different.

Critical Mistake No.3: Using a hard sell approach during showings

Buying a home is an emotional decision. People like to "try on" a house and see if it is comfortable for them. It is difficult for them to do that if you follow them around pointing out every improvement that you have made. It may even have the opposite effect by making them feel like they are intruding on your private space. You must try to resist the temptation to talk the entire time the buyer is there. Let them discover things on their own. Try a tasteful sign to point out some hidden amenity that they might miss.

Critical Mistake No.4: Mistaking lookers for buyers

Lookers

For Sale By Owners always get more activity than houses listed with an agent. There is no question about it. This is because REALTORS will only bring qualified buyers, and these will be fewer than if you open your front door to everyone who walks in. A qualified buyer is one who is ready, willing, and able to buy your house. We find that most people who go looking at For Sale By Owner homes are just starting to think about moving.

They may be good buyers, but they're six to nine months away from being ready. They don't want to bother an agent yet because they know they aren't ready, so they call the "By Owner" ads to get a feel for what's available. They may have a house to sell first; they may need to save some more money; or they may have credit that needs fixing. When everything is in place they generally go looking for homes with a REALTOR.

The Rob Grey Real Estate Team will find out how much a buyer can really spend for a house, how much he or she has to put down, how good his or her credit is, how much he or she can pay each month, how much he or she will realize (realistically) when he/she sells his/her present home, and about a dozen other things to qualify the buyer.

But unless your REALTOR finds out all the facts first, you must ask all these questions before the buyer crosses your threshold. Otherwise, you may have a parade of Sunday afternoon shoppers with a dream of home ownership but little other qualifications.

Critical Mistake No.5: Not knowing your rights and obligations

Sale Contract

Real estate law is extensive and complex; the contract for sale and purchase is a legally binding document.An improperly written contract can cause the sale to fall throught, or cost you thousands of dollars for repairs, inspections and remedies for title defects. You must be certain which repairs and closing costs you are responsible for. You must know whether the property can legally be sold "as is", and how title restrictions and local zoning will affect the transaction. If there are defects in your title, or if your property is in conflict with local restrictions, you (or your REALTOR) must remedy them, or you might have to pay plenty.

Critical Mistake No.6: Thinking an ad in the paper and a sign in the yard is enough marketing

Real Estate Ads

The two most obvious marketing tools (open houses and classified ads) are only moderately effective ways of selling your house. Surprisingly, less than one percent of homes are sold at an open house. Agents use them to attract future prospects, not to sell the house! Advertising studies show that less than three percent of people purchased their home because they called on an ad. And if your answering machine answers, most callers just hang up without leaving a message.

The Rob Grey Real Estate Team will employ a broad spectrum of marketing activities, emphasizing the ones we believe will work the best for you. There are dozens of more effective ways to find buyers than just open houses and a sign on the front lawn.

Did you know that most calls come in during business hours when sellers are away at work, and most home showings are between 9 a.m. and 5 p.m., Monday through Friday? We market homes 24-hours each day, seven days each week, 365 days each year! Ask about our innovative marketing plan.

Critical Mistake No.7: Believing a refinance appraisal is the market value of the home

An appraisal is an OPINION of value for a certain purpose. If the lender wants to lend you the money they are motivated to have the appraisal come in high. The appraiser may ignore foreclosure or distress sales in compiling their comparatives in order to justify the high value. But a real buyer in the real world will not ignore these properties. They are your competitors when you try to sell. I can't tell you how many ridiculous refinance appraisals I've seen.

Don't make the mistake of thinking that the value you were told six months ago when you refinanced your home is what a real buyer would pay today. Ask your REALTOR for ALL the properties that have sold in your area, then decide. There are lots of opinions but only one set of FACTS. Insist on the facts!

Critical Mistake No.8: Choosing the wrong REALTOR, or choosing one for the wrong reasons

It's very likely that you don't interview people very often. And yet in order to find the REALTOR who is right for you, you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the person best qualified.

It's interesting that in the real estate business someone with many successfully closed transactions almost always costs the same as an agent who is inexperienced. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table, selling in less time, and selling with a minimum amount of hassles.

The world is populated with REALTORS who are wrong for you. For example, the housewife who sells an occasional house for extra spending money, or perhaps your cousin George, who really needs your business to get going. The sale of your home could well be the most important financial transaction you have ever been involved with. The person you select can make it a satisfying and profitable activity, or a terrible experience. It's your home and your money.

The choice of your REALTOR is up to you. Make that selection carefully. We've prepared a valuable checklist, "Interviewing An Agent to Sell Your Home." Armed with these questions, you can feel confident that you won't make a mistake.

©2017 Rob Grey Realty Corp. Rob Grey - Personal Real Estate Corporation RE/MAX of Nanaimo - Each office independently owned and operated