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10
Tips for Sellers
The selling and buying
of a house can be a stressful and confusing process. Not only is it very
expensive to 'learn from your mistakes,' but few people move often enough
to gain the needed experience.
Although there is no substitute
for doing your homework (start by asking your family and friends who have
recently moved for their experiences) the following list of common
pitfalls may be helpful.
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Pricing
Incorrectly (too high or too low):
Make sure you determine the market
value of your home correctly: If your asking price is
significantly higher than what the market is currently bearing, many
potential buyers looking for your style of home will view similar but
lower priced homes first. Not only does this limit the pool of
potential buyers; it also increases the chances that your home will
sell for less than its actual value. This is due to the
"discount" often associated with properties that have been
on the market for a longer than average time. Buyers are often
overheard asking their agent, "What's wrong with that home? It's
been for sale forever." Alternatively, if your asking price is
too low, you are literally giving away your hard-earned equity just
because you did not know what the market would bear.
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Failing
to showcase your home:
A little work can improve the first
impression of your home a thousand fold. First impressions are
lasting and can dramatically affect a property's perceived value.
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Mistaking a bank's
appraisal or a new tax assessment for your home's actual market value:
These processes are based on general guidelines such as lot size and
square footage, not the specific qualities and improvements of your
home. Using either of these as a baseline could cause you to
over-price or under-price your property. An accurate estimation of
your home requires detailed background knowledge of all recent
neighborhood sales as well as homes currently for sale. Ask your
Realtor for a detailed market evaluation.
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Choosing the wrong Realtor
or choosing a Realtor for the wrong reasons:
It is critical that you have full confidence in your Realtor's
experience and abilities. You want a Realtor who can explain the whole
selling process to you, has a good feel for the market, has access to
potential buyers, and offers sound advice on how to improve your
chances of selling. Try to avoid choosing a Realtor on the basis of
which one gives the highest estimate of your home's value. In order to
achieve the best sale price within a reasonable period of time you
need an accurate indication of what the true market value of your
property is. Knowing this allows you to properly price your home, thus
maximizing your chances of selling and allowing you to make your
future plans with the sure knowledge that your goals can be attained.
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Failing to take current
market conditions/trends into account:
Is it a buyer's market, a seller's market, a balanced market? What do
future trends look like? Ask your Realtor for a full analysis.
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Not taking advantage of
market fluctuations: The big picture...
Moving up in a market downturn? If your $150,000 home has dropped 10%
in value, so has your $300,000 dream home. Yes, you lose $15,000 on
your current home, but you save $30,000 on your next purchase! Always
keep in mind the big picture.
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Using "hard sell"
during showings:
No one likes to feel pressured. Buyers might wonder why you are so
anxious to sell. Let your home speak for itself.
-
Mistaking lookers for
buyers:
Many people who look at homes for sale may just be getting a feel for
the market, seeing how others showcase their homes, or even just
looking for decorating ideas. Your Realtor deals with these situations
on a full-time basis and has the experience needed to separate the
"lookers" from the actual "buyers."
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Relying
too heavily on advice from the buyer's Realtor:
The interests of buyers and sellers are often opposing. In an agency
relationship it is very difficult for one Realtor to look out for
the interests of both the buyer and the seller. You want to make sure
you are familiar with real estate relationships and the difference
between being a client or a customer before accepting advice from an
agent or entering into any formal relationship with an agent.
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Limiting
the marketing and exposure of your property:
Part of what a good Realtor does is to ensure that your property is
showcased and marketed in the best and most productive manner
possible. Not allowing a "For Sale" sign on the front yard
or limiting viewing times can dramatically reduce the number of
prospective purchasers seeing your home, and can have a serious impact
on your bottom line.
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