7 COSTLY HOME SELLER MISTAKES
Southern California has been experiencing a seller's market, but the tides are beginning to change. Inventory is starting to build up and home prices are still increasing but at a slower rate.
If now is the right time for you to sell, then it's time to prepare and really start paying attention to the local market trends. Mistakes that used to be overlooked could now cost you major money when it comes to your home sale. Here are 7 common mistakes you'll want to avoid if you're ready to jump into today's market.
1) Pricing your home improperly
The most common mistake home sellers make is improperly pricing their home: overpricing and underpricing. The damage of underpricing is taking an unnecessary loss on your home. With overpricing, it becomes more complex.
An overpriced home will be neglected by buyers and their agents. A seller who lists their house over the local market value will have to drop the asking price eventually. By then, the interest on the property will have fizzled out and the freshness and appeal are lost. You may also have to settle for a listing price that is significantly less.
Another major downside is that by overpricing your home, comparable homes that have appropriate listing prices will look like a bargain. You just gave competing home sellers a free boost.
How can I avoid this mistake? Get a home valuation and review it with a professional who knows your neighborhood market well. Take your time, take their advice, and price accordingly.
2) Rejecting the 1st offer. Rejecting ANY offer.
You might assume that if you received a decent offer on your home immediately after you put it on the market, then it means buyers with higher offers are on their way. So, you reject the offer. However, this kind of assumption will work against you because you may not receive a more competitive offer than the first one. There is always the chance that someone will sweep in and offer you asking price or higher, but you won't know until an offer is submitted to you.
How can I avoid this mistake? It’s good practice to respond to every offer--even the ones that are way below your desired listing price. If you haven’t received an offer yet and someone low balls you, it’s worth it to see if you can negotiate the price up before rejecting it. Entering negotiations will also pressure other buyers to bid before it’s too late. If you reject the first bid to wait for a better offer, you might end up settling for a significantly lower offer.
3) Getting offended by something a potential buyer says or does
If you’re getting offended by a low ball offer or criticism a buyer may have of your house, you are letting your emotional connection to the house get in the way of selling it. Keep in mind that the buyer isn’t attacking you personally. They're simply feeling out the market and trying to get the best deal possible, just like you.
How can I avoid this mistake? Yes, this is your home, but if you are trying to sell it you have to stop thinking of it as home. From now on, it is property. Once you’re thinking like a seller instead of a homeowner, potential buyer criticism or low ball offers are just part of the process. Any opinion, whether it’s positive or negative, is a good sign because it means they are looking proactively at your home. Use constructive criticism to improve showing your property.
4) Hovering around your home during showings
As people walk through your property and try to figure out if they want to make a bid, the last thing they want to do is guard their tongue in front of the current owner. No one wants to feel crowded, least of all homebuyers scoping out a possible purchase.
Hovering can alienate a buyer that could have been submitted a bid for your home. You don’t want potential buyers continuously thinking about you while they inspect their future home. Potentials buyers should be able to communicate with each other openly and honestly.
How can I avoid this mistake? When your agent holds an open house, get out for the day. Sticking around will just make you antsy. When it comes times for potential buyers to stop by and check out your property, take a back seat.
5) Forgetting to depersonalize your home
Have you ever tried to remember the lyrics to a song while a different song was playing? It’s practically impossible. Everything gets jumbled. Think of viewing a home in the same way. If all of your personal touches, knick-knacks, and photos are in the way, the buyer won’t be able to imagine their life in each room and on each wall. This goes for every part of the house, even the bedrooms.
How can I avoid this mistake? Give buyers and their agents visual silence to work with. Temporarily put away the bits of your personal life in your home so that potential buyers can picture their life in their future home instead.
6) Ignoring the importance of appearance
Pictures of every house of your room will be posted online and people are going to be driving by and walking in. If your house is cluttered, your bushes overgrown, and your driveway coated in oil stains, you’re reducing the chances of selling your home at top price.
Flaws that may seem superficial to you, can be viewed differently by potential buyers. If your carpet is stained and your faucet is leaky, buyers will start questioning the rest of your house. They will be driven away for fear of getting a lemon. And if they still want to buy the house, they are going to submit a bid that is lower than your asking price.
How can I avoid this mistake? Take care of the trimmings. Properly staging your home will dramatically improve your selling price. Give your home a heavy duty cleaning and primping. Get rid of excess furniture and keep your pets out of the house while you are opening it for walk-throughs. Make it smell nice, make it look pretty!
7) Making your home difficult to view
Home sellers have to maintain the appearance of being accessible. You can miss out on opportunities with potential buyers and their agents if they have to call you multiple times or if they can’t view your home at times that work for them.
Keep in mind that homebuyers have various work schedules and if your house is not accessible at times when they are available, they may skip out from viewing your house and visit other houses that are more readily accessible.
How can I avoid this mistake? Get a lock box and be willing to show your home in the evening and on the weekends to accommodate buyers. If you really want your house to sell, you, or at least your home, will have to be available as much as possible.
Checking to make sure you haven’t made any of these mistakes will ensure that your home sells at a competitive price. If you neglect to properly prepare your home, then be prepared to make concessions to your buyer--most likely cutting drastically into your profit.
We at First Team can help you put together a winning home sale strategy based on your neighborhood. Our area experts specialize in getting the highest amount of exposure for your home to capture the highest possible sales price.
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