10. Access – Not providing Easy Access for Showings, and being prepared for those last minute phone calls regarding showing.
9. Trying to make the “Hard Sale” while the home is being shown – You really shouldn’t be home. You might feel the urge to sell the place on all the reasons why you think the home is great, but you might not communicate those reason to the buyer in a way they find helpful. If you leave, you allow the buyer to give unbiased objective feedback and take the time to see how their lifestyle and belongings will fit.
8. Waiting until spring to list your home – Spring is the busiest real estate activity period, and the competition can be tough. Buyer’s purchase home 365 days a year and the strongest relocation market is September until May. A relocation buyer moves when his employer needs him moved based on their business budgets and that usually is 1st, 2nd and 4th quarters. The supply and demand changes during the fall and winter and your home will stand out during that time period because buyers still purchase during that time.
7. Treating Real Estate like a savings account or stock market – When the real estate market was hot and was appreciating really fast, people would take out equity to pay off cars and charge cards. They would also purchase up and plan on flipping in a few years. Playing the real estate market is not like play the stock market; when you invest you need to take the long term approach.
6. Falling to Market you home in Different Ways. – You need to explore what market tools are available. Just putting a “For Sale” sign doesn’t yield you top dollar for your home. Speak to your agent in regards what marketing they will do and more importantly request they back that up with market stats to prove their ideas work.
5. Not Thinking about Future Resale – When you are decorating and renovating your home, you need to consider what is going to appeal to a broad section of future buyers when it comes time to sell. Being in the real estate market is like chess; you want to look two or three steps ahead in the game.
4. Not being pro-active at the closing – The best practice is to have your paperwork in advance for review prior to close. The HUD- 1 (Housing and Urban Development) form list all the credits and charges, so it can be reviewed by all parties to verify the information is correct. This form also has to be approved by the buyer’s lender and you want this done in advance so the bank will wire the funds and have them available at the time of closing so you can walk out with a check and not close in escrow.
3. Doing major renovations/remodeling before selling – Minor upgrades usually will have a higher return on your money than tackling major renovations. (Examples; fresh paint, new carpet if needed, clean windows, and plant some flowers for nice curb appeal.) A major renovation like finishing the basement just before putting it on the market will not yield you full value of that renovation.
2. Picking the Wrong Agent – Treat meeting with agents like a job interview because that’s really how it supposed to work. Keep in mind that agent is going to be working for you. Make a list what you are looking for in an agent, and while you’re interviewing rate that agent based on your needs. Take a moment to review your rate sheet and request from your agent an exit strategy if the business relationship just doesn’t fit. A truly professional agent should know the market and be able to share that information with you so you are able to make decisions based on facts. My job it to take your home to the marketplace and test the market through detailed marketing efforts. Periodically I will deliver back to you the detailed results of those efforts, and you will decide if we need to change our strategy. Keep in mind the market reports are the message and I am the messenger.
1. Setting price too high for the market – This is where it is extremely important to understand the market regarding supply and demand. It is equally important to understand the rules of an appraiser. In our current market the buyer and seller don’t determine the value, it is the appraiser. The appraiser will send a report to the buyer’s bank and based on that report whether the lender will approve the funds for the buyer. A good agent will give you a range, what your home is worth and depending on feature and benefits it can be determine to you go up from the middle or go down. It’s important not to keep reducing the price of the home because you know you started too high to leave room for negotiations. Once you reduce, it may give the impression something is wrong with the house.