Avoid Common Home Selling Mistakes
Almost everyone who has sold a home at least once, and some who have never sold a home, thinks they know a thing or two about the home selling process. However, many times, it is the simplest, most common mistakes that can trip up a seller, especially “by owner” sellers trying to reduce their selling expenses.
Mistake #1 – Pricing the Property Incorrectly
Every home seller obviously wants to get the most money for their property. Ironically, the best way to do this is NOT to list your property at an excessively high price! Buyers (and their agents) are not stupid! They will research neighborhood sale prices, and will also look at any similar properties in the neighborhood that are currently on the market. A high listing price, compared to current listings or recent sales, will cause some prospective home buyers to lose interest before even seeing your property. It may also lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price. We can show you many specific examples of the effects of overpricing in the Denver Colorado real estate market.
Mistake #2 — Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. After all, many mortgage brokers don’t have a salary, They only get paid if they actually originate a loan. The market value of your home could actually be lower than a refinance appraisal indicates. Your best bet is to ask your Realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 – Allowing a Real Estate Agent “Buy” Your Listing
In order to convince you to list your home with them instead of a competitor, some unscrupulous real estate agents will intentionally misrepresent the true value of your home, letting you think that it is worth more, or that they can sell it for more than another agent’s opinion of value. Don’t be fooled! These sleazy agents are just trying to “hook” you into signing with them, and they will subsequently require you to lower your asking price, time after time, until it finally gets to what it should have been in the first place: at the price the honest agent gave you! On high-end properties, we always recommend that you get a professional appraisal from a disinterested licensed appraiser, to help you validate your real estate agent’s market valuation.
Mistake #4 – Advertising in the Wrong Places
Recent National Association of Realtor surveys show that 70% to 80% of all home buyers start their home search on the internet. If your home is not advertised on lots of real estate sites, it will not get the critical exposure it needs, especially during the early days of the listing. For the same reason, it is critical that your listing include lots of online photos and at least a couple of “panorama” virtual tours. Other surveys show that Internet buyers will often disregard listings without a sufficient number of high quality online photos. Newspaper, magazine and other print ads are just not as effective as the internet these days! This is why our website, and our home marketing program, support our aggressive Internet marketing strategies.
Just call us to set up a confidential home seller counseling meeting at your home or our office.