Selling your home could be a complex and tiring process. From the moment you decide to put your home on sale to the final moment of handing over of keys, the process could stretch over months and it could sometimes be overwhelming. In order to have a smooth selling process, you could avoid the following mistakes made by home owners:
Pricing is an important factor in all buying and selling decision. It will determine if your house is going to be sold or not. Looking at the pricing aspect, real estate market is similar to other markets. There is always a general market price that a particular house that will fetch in a particular area. Common mistake is for owner to ask for the selling price of their home way above the market price.
Ask yourself this question: Would you buy a house for $300,000 if the current market price of other similar houses are around $250,000? Most probably not! Unless the renovation of the house or the view of the house is so fantastic and you find it worth to put in the extra $50,000. Else you would buy other houses in the same area that cost $50,000 less. Right? Therefore in selling your house, it is particularly important to be realistic about the value of your home. If you overprice your house, buyers will be put off by the price and your house may not be sold.
2. Inadequate planning of the sales process
Another common mistake made by home seller is insufficient planning. Even before the sales process starts it will be important to plan for the following:
The profits you can generate from the sales
The cost and financing for your new house
The legal and contractual aspect of the selling/ buying
Timing for moving in the new house and moving out of your sold property
Very often home sellers are frustrated when things do not go their way. With planning, it should minimize the unexpected. It will also be very helpful to engage the help of an experience real estate agent and use his expertise to help you in the planning of your home sale.
3. Poor Home Conditions
Have you ever walk into a house where the wall paint are worn off, the kitchen floor is oily, pipes are leaking and the house is in a mess? What is your impression of the house? Probably if any buyer were to walk into such a house, he would not have a good impression of the house, or his perceived value of the house will be much lower than if it were to be in a better condition. As buyers are going to pay attention to your home conditions, you should take steps to present your house in a positive light. The key thing is that you don’t have to invest thousands of dollars into renovating your house, but to present your house in a clean, neat and pleasant place. You could for example do some de-clutter the home’s interior, rid the home of unpleasant smells, do some repairing and apply fresh coats of paint to all walls and doors etc. You want your house to feel warm and welcoming. Remember, buyers need to feel good about your home before considering to put an offer for your house.
4. Poor Communication with your housing agent
In property sales, it is important to understand that the seller and the agent are working together as a team, to sell the house at the best possible price. The partnership between the agent and the owner is a key factor to a smooth and enjoyable sales process. Home sellers should as far as possible give accurate and full information about the house. This will help the agent in analyzing the strength and weakness of your house and present it in a positive light to a potential buyer. Sellers should take a proactive approach in the selling process by regularly getting updates from the agent. If there should be any slight misunderstanding, it should be resolved with the agent as soon as possible. Home owners have to place trust into their agent. Therefore next time when you choose an agent, get a responsible person and one that you can work well with.
5. Assumptions about what your sellers like
All buyers make decision on what they like/need and not what we think they like/need. As every person’s background and culture differs from another, they will have their own opinion of what they like when they are looking for in a house. As you may think that a house near the road is convenient, the buyers may think that it will be noisy. Therefore during the buyers viewing let your agent show the house for you.
6. Missing out on a genuine offer
It will take practice to identify a genuine buyer from one that is not. Home sellers often missed out on a genuine offer and not selling their home. Imagine this scenario; you receive 2 offers for your house. The first offer for your house is $210,000 (but the offer is not genuine, buyer just paying lip service). The second offer is $208,000 (genuine offer). You may turn down the second offer due to the lower price and finally find that the first buyer did not want to buy from you. Then you lost out a genuine offer. For that reason, it will be important to assess your buyers (an experienced house agent will be of great assistance) to determine if the buyers are genuine. A possible way to test is to ask the buyer for a deposit to buy your house and when they would like to move in. If the buyer is not putting down any deposits or do not know when you would like to have the house, he may not be very genuinely interested in your house.
7. Buyer’s Credit Background
Even though a buyer may be able to meet the price that you wanted, it is important to qualify your buyers to determine if they could finance the purchase. You will find it be terribly frustrating that after going all the hassle of viewing and negotiating on the selling price to find that your buyers could not buy your house. You could ask the buyer about how he will be financing the purchase of your house. If a loan is required, you could ask the buyer if he have checked with lenders if he could get the loan. Alternatively you could advise him to fill in a loan application and submit it to the lender as soon as possible. You could also approach from the buyers agent if any credit assessment is done.
8. Engaging many agents at any one time
You may have the impression that engaging many agents could help you increase the chance of the sale of your house. However by engaging many agents, there can be many downsides:
The competition between the agents may lead to the undercutting of your selling price
Differnet Agents may bring the same buyer to view your house a second time, leading to confusion.
Buyers may think that you are desperate in selling (so you engage multiple agents to sell it off fast). Since they think you are desperate, they may not give you a good price.