The last thing any home seller wants to do a sabotage their own sale, right? But surprisingly, many homeowners do so without even knowing it. Overpricing is often one of the biggest mistakes that a homeowner can do when selling their home but it is not the only mistake. Many sellers feel that these mistakes aren't even a mistake it all but when their home sits on the market far longer than intended, they may step back and take a look at the process to see if there's any place they can alter their method to gain more buyers and a potential offer on the table. Here are some of our top five selling mistakes that could seriously cost a sale. Most of these we've all seen on a monthly basis but if you know them ahead of time you can set up guard rails in the home selling process to avoid these serious mistakes that can really cost you.
#1. Trying to sell your home on your own.
Many homeowners try to sell their home on their own first. This is considered a FSBO or for sale by owner home. What they don't realize is that more than 90% of these types of sales actually fail. 9 out of 10 homes on the market that are for sale by owner usually do not sell. This is one of the biggest and costliest mistakes. Most homeowners think that they are saving money by not using a real estate agent to sell their home but in reality, there likely to overprice their home so much so that it sits on the market far longer than anticipated and when the homeowner drops the price to where it should be, the home is no longer desirable. In order to get the home sold, many homeowners have to underpriced their home just to get buyers through the door. Have the homeowner enlisted the help of a professional real estate agent ahead of time, the property could be sold and staged accurately the first time getting the right buyers to the door and more offers on the table.
#2. Hiring the wrong real estate agent.
Now that we just talked about the mistake of not hiring one at all, what happens if you hire the wrong one? Choosing the wrong agent could actually be home selling suicide. This is a large sale with many legalities, details and intricate workings of the process. This is not the time to use your cousins, brothers uncle who's trying to get the real estate business off the ground to sell your home. You don't need an amateur; you need someone that knows the market, your particular neighborhood, how to price homes, how to stage them and present them to potential buyers and then how to market that home to a wide range of buyers and buyers agents. Many great listing agents already have a book of homebuyers ready to go and may have a buyer ready for your home the minute it hits the market.
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#3. Overpricing your home.
You knew we were going to come to this mistake at some point in this article. This is truly one of the biggest reasons that homes don't sell. Most homeowners feel that their home is worth far more than actual value. Home sellers today do a lot more research than they used to. Using websites such as Zillow and their "Zestimate" can skew their perception of what their home is really worth. Maybe their neighbors home sold for more and now they believe that their home is worth the same if not more. Whatever the reason, overpricing your home can be death to the sale. This is where using the right agent is so vital. A good agent will utilize all tools available, conduct extensive research on the neighborhood, the past sales in the last three months to six months, compare similar properties in the area including those that are currently on the market and those that have recently sold or are under contract and then determine the best price range in which to start.
To be truly honest with you, if you search hard enough you will find an agent that will list your property at whatever price you want, however, that agent will get very frustrated when the home doesn't sell and so will you. It's best to find an aggressive agent that knows how to price it correctly from the beginning and get the right buyer in the door.
#4. Being unreasonable with showings.
When your home is on the market it is no longer your safe, peaceful home that you may be once enjoyed. It is now a product that is on the open market for buyers to view and tour. Of course, buyers can be reasonable to and not schedule showings at the drop of a hat or early morning or late night showings but your home should be ready for those showings that require a one hour notice. Your real estate agent should show you how to stage the home so that you can easily pick up, clean up and prepare your home for a quick showing. If it is extremely inconvenient for buyers to be your home, they simply will move on.
Read More: Why Your Location Could Make or Break a Sale
#5. Being unrealistic in negotiations.
Remember, the goal is to get your home sold. Too many sellers get caught up in greedy negotiations and while were not saying you need to give everything away, you do need to realize that these buyers are impartial to your home and they're trying to get the best deal as well. By keeping your emotions at bay, not being insulted by lowball offers and negotiating on repairs or on the inspection report in a timely manner with reasonable expectations will make the entire process much easier. This is where having a real estate agent to mediate all of these conversations and negotiations really comes in handy as well. You can discuss the negotiations with your real estate agent and ask their advice and input on how best to respond.
If you're trying to get your home sold these five mistakes will certainly delay that process. Understanding the market now, avoiding the mistakes and using a trusted real estate agent that is well seasoned in your area are all fabulous steps to take to getting your home sold as quickly as possible for the most possible profit. Contact Sedona RE/MAX today for more information or to get your home listed and sold!