5 biggest mistakes by Sellers that cost them money
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Here are 5 mistakes I have noticed that Sellers make in the process of selling their home that causes them to sell their house for less than they could have gotten:
Clean and Declutter. This one seems obvious but I see it all the time. Your house should be spotless when you put it on the market. Hire a cleaner for half a day. Often times when a house sits on the market for a few weeks, the sellers get tired of preparing the house and leave the house in less than perfect showing condition. I know its tough, but you should prepare for every showing like its a buyer that is going to offer on your home. The second part is to declutter and remove excess furniture. Especially if you have lived in your house for a while, you will tend to acquire excess furniture and “stuff”. If you are selling, you are moving and you should take the opportunity before you go on the market to get rid of any unwanted items and if possible remove furniture that makes the home feel tight. This may not be the way you are going to live in the home, but you want to create a feeling of spaciousnesss.
Price their house “way too high”. Everybody wants to price your house as high as you possibly can to get the most money for it. That is what you should do. But their is a fine line between a high price, that will push buyers to most a house is worth and a price that is “overpriced” and not draw an offer. If a house is priced too high, everyone knows it and the house will sit on the market and become shop worn. Do your homework, know your market and competition, and price your home high…but not too high.
They pick the wrong agent. I think there are many agents who will do a great job selling your home but there are some that won’t. An agent that is way out of their market won’t know the particulars of a local market when selling. The specifics around school districts that give a house value, how to deal with septic systems and well tests and how agents handle showings are just a few examples of local idiosyncracies that if an agent isn’t familiar with can lead to a lower price and a botched transaction. There can also be an agent that was the best in an area but now they have lost their motivation and work ethic and aren’t as professional in handling a transaction as they should be. They aren’t on top off all the details and timing of a transaction and dropping the ball can cost a seller time and money.
Not allowing sufficient access to Buyers. This one is more important than you might think. Many times I will try to book a showing for a buyer and the seller will not allow us access to the time requested. Sometimes the seller works from home and can’t be disturbed or maybe they have small children that cause the house not to be in show condition. Other times there are dogs that a Seller can’t get out of the house. Regardless, if a Seller makes it too difficult for a Buyer to get access to the home, the Buyer’s will move on. I know its tough to have your house on the market, but do your best to put up with the incovenience for a short time and allow as many Buyers through as possible, even on short notice if possible. You never know which Buyer is the one that will submit an offer
Not knowing your competition. In a hot market, it is very easy to sell a home. Just pick a price and put it on the market and it will sell. However, in a changing market, you need to know your competition and how well your home is priced. Lets say you price your house at $425,000 and it doesn’t sell in the first 3 weeks. You have had 6 showings. Should you reduce the price?
Well that depends. If we look at the market this fall, there has been a shortage of buyers. Do your homework and know how many Buyers are in your market and price point in a two week period. A good agent can figure this out. It could be 1. or it could be 5. Lets say it is 1, that means in the next two weeks, one house of the available inventory is going to sell. So that means in your price point ($400k-$450k or so) your house needs to be the best….not better than 3 out 5, the best house so that the one Buyer that comes around will choose your houses to write an offer. If you are the “best” house than hold your price and don’t reduce. You just need to wait for the Buyer. If you are not the best house, then there is a good chance that you do need to reduce your price until you reach the price point where you are the “best” house. In order to know this information you really need to know your competition.
