The Seven Most Common Mistakes Sellers Make

And How You Can Avoid Them

As real estate professionals, we work with many buyers and sellers every year. We often hear horror stories from people who made a seemingly small mistake in their past real estate transactions that ended up costing them a lot of aggravation and money. We don't want anyone to make these mistakes, so as Realtors® we work hard for our clients to ensure that their real estate transactions go smoothly. For those who are not our clients yet, we prepared this special report that outlines the seven most common and most expensive mistakes. We hope you will find it useful.

1.              The Wrong Price

A surefire way to get less than fair market value for your home is to over price it in the beginning. If your home is more expensive than similar homes in the neighborhood, fewer buyers will choose to look at it. Why would they waste their time? The buyers who do decide to look at your home, will likely use it for comparison, to justify their decision to purchase a different home. The longer your home remains unsold, the less interest it will generate among buyers. Eventually, when it's been on the market longer than other similar homes, buyers will start to think that there is something wrong with it. Then, you will be faced with the real possibility of being forced to sell it for less than its real value. Make sure that your home is priced correctly from the beginning. This will save you time, aggravation and money.

2.         Mistaking Lookers For Buyers

Mistaking lookers for buyers is an error commonly made by homeowners who try to sell their home themselves without a Realtor's® help. For-Sale-by-Owners (FSBO's) actually do get more activity than homes listed by Realtors®. This is mostly because a FSBO is often ready to show his home to anyone who expresses interest in it. Many times, the unsuspecting seller will entertain offers from "buyers" who are not even qualified to purchase the home. An

experienced Realtor® will only show your home to qualified buyers, those who are willing, able and ready to make the purchase. A qualified buyer is actively looking to purchase a home, has the down payment money available, and has already been pre-approved for the loan by their lender.

3.         Failing to Prepare The Home For Sale

Who will be your toughest competition when you put your home on the market? Very likely, new construction. New homes are clean, bright, uncluttered… and new. Your potential buyers have probably visited at least one new homes site, and their expectations are now higher. Make sure your home is also clean, neat, uncluttered, and bright. If there are any cosmetic blemishes, repair them before listing. A new coat of paint does wonders for many homes. A clean, well-groomed yard is a must. Don’t forget about the garage. Anything that you can

reasonably do to make your home look as new as possible is worth doing. A new-looking home will attract more buyers and will sell faster for top dollar.

Knowing how to properly stage your home for sale is of utmost importance if you want to get the highest price. Noticing all the important details about your own home can sometimes be difficult. It helps to have a neutral third party take a look and suggest any needed aesthetic changes. That is why we offer a free staging consultation on how to prepare your home for buyers. We also provide a “Show and Sell” checklist to our clients.

4.         Not Taking The First Offer Seriously

Sometimes it takes a little time to get that first offer, but sometimes it happens quickly. When it happens quickly, some sellers don't take it seriously. They think that it is just the first of many offers to come. Perhaps another buyer will come soon after and offer more? Perhaps there will be many offers to choose from? While that may occasionally be the case, more often than not, that first offer turns out to be the best one.

Any experienced real estate broker will tell you that

the best chance of getting a high price for a home is when the home is new on the market. As time goes by, the initial interest of buyers wears off, and the home attracts less and less activity. Inevitably, the longer a home remains unsold, the less buyers are willing to pay for it.   Many sellers who declined an early offer, hoping that a better one would follow soon, ended up selling their home for less than that first offer.

5.         Not Knowing Your Rights And Obligations

It should go without saying that selling a home is a complex process. The sales contract itself contains many clauses that can create a problem if terms and deadlines are not met. When will the property inspection occur, how are repairs negotiated, when will the appraisal and survey be completed, when is the final loan approval due, etc.?  There are also many required disclosures. If your home was built prior to 1978 you must inform the buyer in writing that it may contain lead-based paint, and you must provide the buyer with the EPA safety booklet about lead. What about radon gas? Is there any prior damage to the home? Are there any defects that you might or might not be aware of?

An experienced Realtor® will act as your guide through the maze of laws and regulations, and will be indispensable in this part of the sales process. As your Realtor®, we will manage the entire process from listing to closing and make you aware of all potential issues that may arise during the process.

6.         Limiting The Home's Exposure

What are the two best ways to market your home? If you answered newspaper ads and open houses, you guessed wrong. Newspaper ads are ineffective at attracting qualified buyers, and open houses invite more lookers than buyers. Any seasoned Realtor® will tell you that there is actually no one best way to attract qualified buyers. Instead, an experienced agent will cast a wide net utilizing several marketing strategies, including the Multiple Listing Service (MLS),

internet marketing, social media, broker tours, electronic flyers, agent networking, etc. We will give your listing wide exposure through many different advertising channels.

7.         Choosing The Wrong Realtor®

When it comes to selling your home, probably the most expensive thing you own, what kind of an broker do you want? You should look for someone who knows how to attract qualified buyers, knows how to negotiate to get you the best price, and can guide you through the complexities of contracts and paperwork. You should work with a broker who is committed to the real estate business full time, has a proven track record of strong sales production, and

who can provide you with references/testimonials from past clients. Since you are the one paying the commission, make sure that the Realtor® you choose is the right one for you.