I have a confession… I used to be a Realtor.
Why! Glad I got it off my chest.
Now, I invest in real estate, train new investors, have a tech company… blah, blah, blah. But I used to be a pretty good listing agent.
However, you are here to learn about home selling mistakes. Man, do people make a lot of those! Let’s dive in
Don’t Make These Home Seller Mistakes
Mistake #1: the price is too high
Some of the sweetest people on earth who would give their last dollar to help a homeless person have major ego problems when it comes to the value of their home. It’s always the same, old story: “But my house is special!”
give me a break.
While every home has nuances in its value, homeowners have a hard time remaining emotionally neutral on the issue. In fact, I’ve seen homes sit on the market for years (in hot markets no less!) simply because the sellers had a very high opinion of their property’s value.
Buyers are only willing to pay what they feel a home is worth. End of story. If you want to save yourself the headache and hassle of being listed for months with no offers, please listen to your agent. In this situation they are usually your best friend.
Your realtor isn’t the bad guy (or gal). If they say your house is worth X, it’s pretty close to X. Market is market. If you want to blame someone, please don’t blame your Realtor. Blame the market. It doesn’t lie.
There are a myriad of pricing strategies. The right fit depends on what type of market you’re in, price point, etc. Here are some ideas.
needle in a haystack
If you priced your house at Tippy Top, you are looking for a needle in a haystack. There Strength Be a buyer out there. And you better hope they’re cash, because when your lender wants to appraise the property, there could be some tears or canceled transactions when everyone realizes it’s not worth your consideration.
market price
This is a fair value, which the appraiser will probably certify. That’s fine, but there’s a better strategy in a seller’s market.
below market
If you price below market value, buyers will feel like you’re offering them a bargain. If this is true for one buyer, is it not true for many? In this scenario it is possible to get multiple offers, which drives up the price Above market value. make “cents”?
Mistake #2: Hiring the Wrong Agent
Not all agents are created equal. There are some great buyer’s agents but lousy listing agents. Some may be great listing agents but are stingy and will not spend marketing dollars (or time) to set up your home correctly. Make sure you get a Realtor with a combination of a good track record and marketing chops to match.
Connected: How To Sell A ‘Salable’ Home
Mistake #3: fsbo (pronounced FIZBO) or for sale by owner
When I sell properties on my own, I see a lot of mistakes people make. Usually, they are higher priced. And they are clearly under-marketing. There might be a picture or two (the bad ones at that) and a phone number. Buyers want more people than this!
Sellers who try to sell this way put themselves at risk in other ways as well. Not knowing what disclosures are required or how the process works puts transactions at risk.
Mistake #4: not giving access
This is especially true for investment properties with tenants. If a buyer wants to view the property, he needs to get access within a reasonable time (usually 24 to 48 hours). Tenants may have problems in this regard.
Tenants do not have any role in the sale process nor do they have much stake. So, why would they want to cooperate with the demonstrations? Be sure, if you are the landlord, your lease holds the tenants responsibility when it comes to the sale and performance of the property.
Access can be a problem even in traditional resale situations. I’ve got sellers that only want to allow showings between 10am and 2am on Saturdays. How is this going to help anyone? Buyers usually get discouraged and move on to homes they can view within a reasonable time frame.
Mistake #5: stink
I’m not a scientist. But Do you know that memory is most closely associated with smell? The first thing people pick up on unconsciously (or consciously, if it’s bad enough) is smell. Sometimes it’s more obvious.
If you’re listing your property, make sure you’ve cleaned the place thoroughly and smelling nice—No Unpleasant ones.
Connected: Want to sell your home faster—for more money? do it
Mistake #6: Paying low commission
If listing your home in the MLS, make sure you ask your agent what a typical buyer’s agent commission is. Agents can see in the MLS what commission they are being paid. How eager are they to show you their home if yours is below average? And on the other hand, how eager will they be to sell your home if you’re offering a higher commission (or bonus)?
Mistake #7: not giving concessions
Most buyers are going to have a home inspection (which they should). And unless your property is foreclosed (no one’s is), you will have to accept some items, whether by offering a credit or fixing some issues.
Some sellers take it personally when buyers ask to fix things. It’s a disgrace that they would even ask! Instead, know that no home is perfect and there are a few things you need to keep in mind. It’s not worth risking the deal!
Mistake #8: staged disaster
Some homes are ummmm… challenging to sell. Hoarded house, disheveled tenants, nine kids in three bedrooms. To put your home in the best possible light it is important to stage it. Pack away all distractions. It’s going on anyway, isn’t it? People would rather see a pile of boxes than your stuffed animal collection.
Mistake #9: Pro Photos
And finally, make sure professional photographs are being taken of your property. Most consumers’ first look at your property will be online, so make sure it’s a good first impression. Staging, lighting, professional equipment, and editing go a long way to ensure that your property is seen in the best light possible.
Can you think of something to add that might help sell the house?
I’d love to hear your feedback in the comments!
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
