Even in a true sellers market like the one we have been seeing recently,
there are mistakes sellers often make which can destroy their chances of
making a successful home sale. The top ten ways home sellers torpedo the
sale of their homes are:
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Setting too high an asking price. Selling a home can be difficult, and
just because you are in a seller's market does not mean you can name
your own price. It is important for home sellers to obtain objective
pricing criteria. While it is tempting to see just how much you can get
for your home, a home that is seriously overpriced is likely to sit on
the market for quite awhile. Getting a realistic assessment of the value
of your home will mean looking at what other properties in your area
have sold for. If you price your home too high, then lower the price
later on, many people will think there is something wrong with the home.
-
Failing to understand the importance of curb appeal. In many cases, the
appeal of the exterior of the home is even more important than the
charms contained on the inside. That is because if the home does not
provide a charm and beauty from the outside, potential buyers may never
see the inside of the home. It is important to remember that most people
shopping for a home will drive around the neighborhoods they are
considering. It is important that your home is presented in the best
possible light to these "drive bys". It is important to light your home
attractively as well, since some of these "drive bys" may take place at
twilight or even after dark.
-
Going overboard on home improvements. While making needed home repairs
is an essential first step to a successful sale, doing too many home
improvements can backfire on the seller. With the exception of kitchen
and bath remodeling, few home improvements are able to pay for
themselves through increased value. In addition, a home that is in too
new a condition may feel unwelcoming and cold to potential buyers. While
it is important to not go overboard on home improvements, however, it is
a good idea to remove clutter from the exterior and exterior of the
home, give the house a fresh coat of paint and eliminate any stains or
unpleasant odors.
-
Not understanding the offer made by a potential buyer. It is important
for the seller to review the offers carefully, and to fully understand
the purchase contract. It is important to insure that the buyer has put
up a good sized deposit, whether or not the buyer has requested credits
to cover the cost of the loan, as well as whether or not the offer to
buy is contingent on the sale of the buyer's existing home.
-
Failing to get a home inspection. This is a big mistake many home
sellers make. It is important to thoroughly assess the condition of your
home in order to price it effectively, and to avoid unpleasant surprises
down the road. Many sellers assume that since the buyer will get their
own home inspection they do not need one. However, it can be very costly
for a sale to fall through due to an item uncovered on the buyer's home
inspection. Taking care of any problems ahead of time is the smartest
way to go.
-
Not providing complete information to potential buyers. Withholding
information is one of the most serious mistakes made by home sellers. It
can be tempting to try to hide, or to fail to mention, any potential
problems, but it is likely that those problems will be uncovered
eventually as the sales process moves forward. It is important to
provide potential buyers with a full disclosure on both the benefits and
the problems of the property.
-
Falling into the trap of subjective thinking. It can be quite difficult
to be objective about your own home. After all, you probably have grown
quite attached to the property, and it can be difficult to see it
through a buyer's eyes. Many sellers are offended when the taste and
style of potential buyers does no match their own, but it is important
to see the sale as a business transaction, and not to let your emotions
take over. It is also important to give buyers their space as they move
around the home during a tour. Buyers will need time to discuss their
feelings about the home privately.
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Not communicating with the real estate agent. Proper communication is a
vital part of the sales process, and sellers who take a proactive
approach to selling their home are often the most successful. Sellers
should be sure to ask their agents for regular updates about the home,
and to not simply assume that the agent has taken care of every aspect
of the marketing of the home.
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Failing to investigate the potential buyer. After an offer is on the
table, it is vital to get the loan approval and prequalification letter
for the buyers. It is important that these letters not only state that
the buyer's credit has been checked carefully, but also that the buyer's
credit is acceptable by the mortgage lender. It is also important to
have the buyer fill out a loan application and submit it to the lender
within a couple of days after the offer has been accepted.
-
Failing to proofread the closing documents. It is important to carefully
review the closing statement, paying careful attention to the loan
balance, any needed repairs and other expenses and the results of the
home inspection. Reading the closing statement carefully is vital to
avoiding any unpleasant surprises.
