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 The Real Estate Market Has
Changed...
Buyers are far
more discriminating, and a large percentage of the homes listed for
sale don't sell the first time. It's more critical than ever to
learn what you need to know to avoid costly seller mistakes in order
to sell your home fast and for the most amount of
money.
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Remember not so long ago,
when you could make your fortune in real estate. It was
nothing then to buy a home, wait a short while and then sell
it at a tidy profit.
And then do it all over
again.
Well, as you probably
know, times have changed. As good as the market is right now,
home prices are still below what they were at their peak.
Buyers are far more discriminating, and a large percentage of
the homes listed for sale never sell. It’s more critical than
ever to learn what you need to know to avoid costly seller
mistakes in order to sell you home fast and for the most
amount of money. |
The 7 Deadly Mistakes
Most
Homesellers
Make
- Failing
to analyze why they are selling.
- Not
preparing their home for the buyer’s eye.
- Pricing
their homes incorrectly.
- Selling
too hard during showings.
- Signing
a long-term listing agreement without a written performance
guarantee.
- Making
it difficult for buyers to get information on their
home.
- Failing
to obtain a pre-approved mortgage for ones next
home.
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Selling your home is one of the most
important steps in your life. This 9 step system will give you the
tools you need to maximize your profits, maintain control, and
reduce the stress that comes with the home-selling
process.
1. Know why you're
selling, and keep it to yourself.
The reasons behind your decision to
sell affect everything from setting a price to deciding how much
time and money to invest in getting your home ready for sale. What's
more important to you: the money you walk away with, or the length
of time your property is on the market? Different goals will dictate
different strategies.
However, don't reveal your motivation
to anyone else or they may use it against you at the negotiating
table. When asked, simply say that your housing needs have
changed.
2. Do your homework
before setting a price.
Settling on an offering price shouldn't
be done lightly. Once you've set your price, you've told buyers the
absolute maximum they have to pay for your home, but pricing too
high is as dangerous as pricing too low. Remember that the average
buyer is looking at 15-20 homes at the same time they are
considering yours. This means that they have a basis of comparison,
and if your home doesn't compare favorably with others in the price
range you've set, you won't be take seriously by prospects or
agents. As a result, your home will sit on the market for a long
time and knowing this, new buyers on the market will think there
must be something wrong with your home.
3. Do your
homework.
(In fact, your agent should do this for
you). Find out what homes in your own similar neighborhoods have
sold for in the past 6-12 months, and research what current homes
are listed for. That's certainly how prospective buyers will assess
the worth of your home.
4. Find a good real
estate agent to represent your needs.
Nearly three-quarters of homeowners
claim that they wouldn't use the same Realtor who sold their last
home. Dissatisfaction boils down to poor communication which results
in not enough feed back, lower pricing and strained relations.
Another FREE report entitled "10
Questions to Ask Before You Hire an Agent" gives you the
straight, to-the-point questions you should be asking when you
interview agents who want to list your home. You can obtain a FREE
copy of this report from double clicking on the above
link.
5. Maximize your home's
sale potential.
Each year, corporate North America
spends billions on product and packaging design. Appearance is
critical, and it would be foolish to ignore this when selling your
home.
You may not be able to change
your home’s location or floor plan, but you can do a lot to improve
its appearance. The look and feel of your home generates a greater
emotional response than any other factor. Clean like you’ve never
cleaned before. Pick up, straighten, unclutter, scrub, scour and
dust. Fix everything, no matter how insignificant it may appear.
Present your home to get a wow” response from prospective
buyers.
Allow the buyers to imagine
themselves living in your home The decision to buy a home is based
on emotion, not logic. Prospective buyers want to try on your home
just like they would a new suit of clothes. If you follow them
around pointing out improvements or if your decor is so different
that it’s difficult for a buyer to strip it away in his or her mind,
you make it difficult for them to feel comfortable enough to imagine
themselves an owner.
6. Make it easy
for prospects to get information on your home.
You may be surprised to know
that some marketing tools that most agents use to sell homes (eg.
traditional open houses) are actually not very effective. In fact
only 1% of homes are sold at an open house.
Furthermore, the prospects
calling for information on your home probably value their time as
much as you do. The last thing they want to be subjected to is
either a game of telephone tag with an agent, or an unwanted sales
pitch. Make sure the ads your agent places for your home are
attached to a 24 hour prerecorded hotline with a specific ID# for
your home which gives buyers access to detailed information about
your property day or night 7 days a week without having to talk to
anyone. It’s been proven that 3 times as many buyers call for
information on your home under this system. And remember, the more
buyers you have competing for your home the better, because it sets
up an auction-like atmosphere that puts you in the driver’s seat.
7. Know your
buyer.
In the negotiation process, your objective is to
control the pace and set the duration. What is your buyer’s
motivation? Does s/he need to move quickly? Does s/he have enough
money to pay you your asking price? Knowing this information gives
you the upper hand in the negotiation because you know how far you
can push to get what you want.
8. Make sure the
contract is complete.
For your part as a seller, make
sure you disclose everything. Smart sellers proactively go above and
beyond the laws to disclose all known defects to their buyers in
writing. If the buyer knows about a problem, s/he can’t come back
with a lawsuit later on.
Make sure all terms, costs and
responsibilities are spelled out in the contract of sale, and resist
the temptation to diverge from the con-tract. For example, if the
buyer requests a move-in prior to closing, just say no. Now is not
the time to take any chances of the deal falling
through.
9. Don’t move out before you
sell.
Studies have shown that it is more difficult to
sell a home that is vacant because it looks forlorn, forgotten,
simply not appealing. It could even cost you thousands. If you move,
you’re also telling buyers that you have a new home and are probably
highly motivated to sell fast. This, of course, will give them the
advantage at the negotiating table.
For more
information about any of our innovative homeowners programs, give us
a call at (860) 583-8822.
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