- Buying Another Home First.
Buying a new home before you sell the old one is a real gamble. Buying first can be risky because once you sign a contract with a seller, you are locked into the new home no matter what you end up selling your home for. If your home sells for less than you expect, do you have the cash you’ll need to close the sale on the new house? And what if your current home doesn’t sell before you close escrow on your new home? If your down payment is coming from the sale of your present home, you might have to borrow in order to close escrow on the new home. Then you may have problems qualifying for the loan on your new home.
- Overpricing Your Home.
The value of your home is not determined by what you want to get for it, how much you paid for it, or how much money you put into it. It is also not determined by your agent or the appraiser. The value of your home is determined only by what a buyer will pay for it in today’s market by comparing your home to others that are for sale.
Overpricing your home reduces the chances of a fast sale, keeps other agents from showing the home, and helps the competition. Buyers are like all shoppers. They want the best available product at the best price. When Buyers compare your property to others on the market, they won’t knowingly pay too much. Your real estate agent can prepare a competitive market analysis (CMA) for you to help price your home realistically. And, if your home doesn’t sell after a certain period of time, consider reducing the price. There are only 2 reasons a house doesn’t sell - price and condition.
- Failing to Prepare Your Home for Sale.
Presentation is everything. Giving your house “curb appeal” requires an investment of time and money. Painting the front door, planting some flowers in the yard, getting rid of clutter, washing windows, fixing leaky faucets, painting the inside and making sure the whole house is sparkling clean are things that don’t cost much but make you money. Keep in mind that buyers often can’t imagine what the property will look like when it’s cleaned up so it’s up to you to put your home in show condition. You’ll be able to sell it for more.
- Neglecting to Obtain Necessary Reports Upfront.
Obtaining some of the required inspections before you have a contract is an excellent idea. By working with your agent, you can have a home warranty, preliminary title report, home inspection, and a termite inspection done on your property before marketing your home. When prospective buyers view your home, they can see exactly what work needs to be done. This helps you get the best price for your home since everything is known and negotiated upfront.
- Making it Difficult to Show Your Home.
The more flexible you are in allowing agents and buyers in, the more your home will be shown and the faster it will sell. Provide ready access to your home and try to avoid being home for showings. Buyers often feel uncomfortable with the seller present and will tend to hurry through your home because they feel they are disturbing you. They will also be hesitant to ask questions which they need to ask when making a decision about whether a house is right for them or not.
- Failing to Consider Offering Special Terms.
Offering special incentives can make your home more attractive to buyers. Paying for an interest rate buy down, or paying for some of the buyer’s closing costs all help buyers financially. You may even want to consider paying a higher-than-normal commission to the agent who sells your home. Any of these things can increase interest in your home and may cost less in the long run than a price reduction.
- Not Requiring the Buyer to be Prequalified.
One of the most common reasons real estate transactions fall apart is finding out the buyer can’t qualify for a mortgage loan. When you get an offer on your property, the only way to control the situation is to state in the contract that the buyer be prequalified by a lender that your agent knows and trusts. This is your best insurance that your transaction can close.
- Making the Sale of Your Home Contingent on Finding Another House.
Sellers don’t like contingent offers and neither do buyers. One sure way to keep buyers away is to insist that the sale is contingent on you finding a new home. Instead, include a clause in the contract that allows you to live in the property until you purchase your next house. You rent the property back from the buyers and pay them a prorated cost. This way, you eliminate your risk and your buyers know the deal is firm. - Refusing to Consider all Offers.
Buyers want the best house at the lowest price and sellers want to get as much as they can. Remember that everything is negotiable. Even a low offer is worth countering if the buyers are qualified.
- Not Getting Preapproved for Your Next Home.
If you want to ensure a fast, easy closing on your new house, talk to your lender as soon as you list your current home and get pre-approved. You can do this whether you have found a house or not. Not does preapproval give you greater negotiating power when you make an offer on a home, you’ll also reduce time and anxiety from the process.
These are my top ten seller mistakes. Our team has released the results of an recent survey and published their 17 top seller mistakes. To receive your complimentary copy of this report simply fill in the form below.
