There are a number of ways to attempt selling your home but how do you know what works best?
Buying or selling your home is a very large and important transaction. Be discerning when taking advice from people. If you’re taking advice from someone, make sure they’re a competent source. I hear people repeat things so far fetched I have to ask, “who told you that?” In most cases the source is just an acquaintance with little or no real estate knowledge or experience.
Be smart – here are 5 of the biggest mistakes people make when buying or selling real estate that lose them money.
Using a ‘real estate help company’
Besides posting a home for sale on their website, these ‘real estate help companies’ offer little more value than a yard sign. In addition to offering low value they charge fees up-front. If your house doesn’t sell, your money’s spent. ‘Real estate help companies’ like Property Guys, ComFree, and PurpleBricks advertise as a comparable option to a professional Realtor® but the services and value they offer is meagre in comparison. They don’t provide a fraction of what a professional marketing Realtor® using the MLS® system offers. Assuming a ‘real estate help site’ is comparable to the full Realtor® services is like assuming a tug boat is as quick as a jet plane.
A very high percentage of homes listed on ‘real estate help sites’ are later sold by a Realtor®. However, by then you’ve already flushed thousands of dollard down the drain.
A good Realtor® only charges commission if your home sells…
Most people who fall for this “pay upfront” additional service have no idea what they’re actually getting – or not getting. Marketing using the MLS® system is the most effective way to promote your property to the highest number of qualified buyers, but it only helps if it’s used correctly. The benefit of the MLS® system is it’s connection to the network of professional Realtors® assisting qualified buyers and it’s obvious when a property is merely listed on the MLS® with no professional selling representation. Also, these ‘mere listings’ are often listed with little or no commission. And you can’t blame a salesperson if they avoid selling items offer no imcome and requiring additional work.
Using an acquaintance Realtor® to sell your home
Most people, when hiring a Realtor®, call their friend or ask a friend to refer a Realtor®. Then, with few questions asked, they hire whoever… Does every Realtor® offer the same service, strategy and experience? NO! It’s important to find the Realtor® with the most in-depth sales & marketing strategy. Interview a few to see how they compare – you’ll understand pretty quick who has the best plan and you’ll notice some have no plan. The MLS is the best way to get your home in front of the most potential buyers, and there are additional techniques an experienced marketing Realtor® uses to improve your sale price. Hire just anyone and you risk earning less.
2. (b) Using a Realtor® that doesn’t have a tight grasp on the local market
If a Realtor® doesn’t have in-depth market insight you’ll make less informed decision. Mose Realtors will take the listing of your house whether it’s a good time for you to sell or not. 90% of Realtors are desperate for listings and would never compromise losing your listing by informing you of negative variables that might cause you to reconsider listing.
For example: when sales numbers are down and inventory is very high it might not be the ideal time to sell your home. The more listings there are on the market will have a negative impact on the average sale price in your market and for your home. A Realtor desperate for a listing might not share this information if it means possibly losing your listing.
Listing with the Realtor® promising the highest price
This is a common strategy that homeowners fall for and a ‘red flag” to be aware. Of course, you want to get the best price for your house but listing higher than what your home can sell for will most of the time lead to a stunted sale price. It’s important to get a few price evaluations and use the information from each one to make an informed price decision.
Did you know? Even if you received an offer on your home priced over “market value” the deal will probably fall? The bank will insist on an appraisal, and if the numbers don’t “meet up” the bank won’t lend any higher than the appraised value.
The chart above demonstrates how listing too high is a mistake.
Selling your home privately
It is possible to sell your home on your own and it’s the best way to guarantee the lowest sale price. The most ironic part of the advice you get from someone who’s sold their home privately is they’re OBLIVIOUS to the profit they missed. Add the time, effort and money it takes to market and show your home yourself and you’ve probably invested what you thought you’d saved. Add this number to the amount of money you missed in profit and you’ve probably made the biggest financial mistake of your life. The bright side to this is, you won’t even notice; it’s hard to quantify the effort and the money you’ve invested, and you won’t even see the money you lost on the sale.
Not preparing properly for potential buyers
Selling your home can be very frustrating having to prepare for so many inconvenient viewing appointments. However, the more people you allow to view your home and the longer they stay the better. An owner should never be around for viewings. Viewers will leave quickly if the owner of the home is present. Keep your home as clean as possible all the time during the listing period. A Realtor® may need to show your home on short notice – saying “no” to a potential buyer is a big mistake.
Make your home smell nice. Whether it’s baking (hard to do short notice) or using nice scents, you have to make the atmosphere inviting. If a house has strange smells, smoke, cooking, etc… buyers will leave quickly.
Above are the 5 biggest mistakes home sellers make that lose them money. Most mistakes come from a lack of market knowledge and bad advice from less than qualified “advisors.” When planning to buy or sell it’s very important you know as much as possible regarding your local market. Use every advantage!