There are inappropriate
steps sellers can take when it
comes time to put their house on
the market.
For instance, the seller
in Virginia, who thought the
half bath the builder had
located at the front of the
house would really be better
situated toward the back of the
main level (though all the other
similar models had the powder
room in the same place for the
previous 20 years). He got hung
up on this detail so much, that
he just had to move it -- and
did -- for thousands of dollars,
just so he could get it on the
market the "right way." His
hang-up may have settled some
deep-seated emotional need for
him, but it didn't draw any more
buyers, and it drained his
bottom line. You might say, that
was a costly mistake.
Real estate broker and
author Sid Davis has identified
in his book, "A Survival Guide
to Selling a Home," seven costly
mistakes that many sellers make
when it comes time to put their
home on the market. In my
business, I've seen each one of
these mistakes played out and it
just makes me shake my head as
to why sellers forge ahead with
unwise strategies, instead of
listening to the voice of an
experienced professional.
Mistake 1: Putting
the home on the market before
it's ready. Most times this
happens because the seller gets
impatient or is a procrastinator
and has pushed himself up
against a moving deadline
without getting the pre-sale
work done. So it comes on the
market with the horrible carpet
(that gets replaced during the
marketing of the home); or they
are painting it while it goes on
the market. Presentation is
everything -- so get the work
done before marketing the
property.
Mistake 2: Over
improving the home for the
neighborhood. This happens with
additions, bump outs, and
upgrades that make the home
stick out from among its
competitors so much that it's an
anomaly, instead of a nice
addition to the community.
Mistake 3: Pricing
the home based on what the
seller wants to net. This
pricing strategy always ends in
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failure. Sellers can control the
"asking" price, but they don't
control the "sales" price. The
market does. It doesn't matter
what the seller wants, the price
is determined by the
black-and-white, matter-of-fact
reality of the market.
Mistake 4: Hiring
an agent based on non-business
factors. It might be nice to
hand over your largest asset to
your nephew who just got his
license -- but make sure you
understand the consequences if
your deal starts going south.
Mistake 5: Getting
emotionally involved in the sale
of the home. This is one of the
biggest challenges home sellers
face when putting their house on
the market. Once you decide to
sell your house, it's no longer
a home, but a commodity. It
needs to be prepared as a
commodity, marketed as a
commodity, and priced as a
commodity. It doesn't matter
what you "want," only what the
market can bear on pricing.
People are going to come in to
kick the tires, so to speak, and
you can't get emotional about
how they may or may not
appreciate the nuances of your
home of seven years.
Mistake 6: Trying
to cover up problems, or not
disclosing them. Most states
have a property
disclosure/disclaimer form --
use it wisely. Just because you
disclaim doesn't mean you cannot
be sued later for the leaky
basement, or dilapidated
heating/air system that's
discovered 30 days after
settlement.
Mistake 7: Not
getting your ducks lined up
before trying to sell. This
would involve financing, reading
the fine print on your current
mortgage to ensure no
pre-payment penalties, not
listening to the particulars of
your local market, etc. If your
local market is dictating lower
home prices, then lower it
early, not later -- it will cost
you more. If the local market
dictates selling your home
first, then buying second, do it
in that order, or vice versa.
Avoiding these mistakes is
not that difficult. Your
REALTORŪ is there to help you
step over the pitfalls.
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