The Most Costly Mistakes Home Sellers Make

Mistake #1: “Hard Selling” During Showings

People buy homes on emotion, not logic. Buying a home is always an emotional decision. People like to get the feel for a place to see if it is comfortable for them. It’s difficult for them to get comfortable in a home if you follow them around, telling them all of the things that you’ve done to the house and pointing out every improvement that you’ve made. It may even have the opposite effect that you want to accomplish by making the prospective buyer feel that they are intruding into your private space.

Resist the temptation to talk to the buyer the entire time that they are in your home. Let them discover the home on their own. We recommend tasteful signs to point out hidden features that they might miss.

Mistake #2: Pricing Your Home Incorrectly

As a seller, you want to sell your home for the most money possible. Putting too high of a price on your home will often get you less money than you could have realized by putting fair market value price on your home.

Keep this statistic in mind: On the average, buyers are comparing your home to fifteen to twenty other homes. If your house is not priced competitively, people looking at your home may reject your home in favor of superior homes priced very comparably.

Overpricing your home usually increases the time on the market, and many buyers are aware of how long homes have been for sale. The longer your home is for sale, the more buyers are inclined to feel that there’s something “wrong” with it, and the lower the offers will be. To help avoid this, we’ve prepared a 30-page guide called “How to sell your home for top dollar, as quickly as possible, and with the least amount of stress!” This invaluable book covers the following areas (and much more):

The Ten action steps you need to sell your home on time for top dollar.

Setting the right price and avoiding the fatal mistakes that cause your home not to sell.

Proven Madison Avenue advertising techniques that silently persuade buyers to call you instead of the competition.

Staging your home and hosting an open house so buyers like it… and want to buy it now.

A step-by-step action plan to make sure your home sells - on time - for the highest possible price.

Once you learn these principles, you’ll know how to sell your home for the very best price, with the fewest problems, in the shortest possible time. Not only that, you’ll know how to avoid paying to much money for any house that you buy for the rest of your life. Many of my clients have reported that it has saved them thousands of dollars. Some of my clients have told me that if has saved them more than $10,000. A copy is available at no cost to any of our clients.

Mistake #3: Failing To Prepare Your Home For The Buyer’s Eye

Buyers look for homes, not houses. Buying a home is an emotional decision and they end up buying the home that makes them most comfortable. It’s what I call the “Ah-ha” effect. I’ve watched dozens of times as buyers walked in through the front door and grasped “Ah-ha,” and immediately fall in love with the house.

Owners who fail to make necessary repairs, who don’t spruce up the house inside and out, who don’t do all the little things that make a house show like a million bucks, will suffer from lower offers and longer market time.

Think about it this way: if you were selling a car, wouldn’t you wash it and maybe even give it an extra good cleaning inside and out to get the highest possible price? That’s because a buyer looking at your used car is purchasing on emotion, just like someone looking at your home.

Mistake #4: Signing A Long Term Listing Without A Written, Specific, Performance Guarantee

Many times, an agent has good intentions about marketing your home or condo, but may not have the expertise, or time to do so. Or maybe they are simply too busy, and forget.

Other real estate agents are taught by their brokers to take any listing for any price, in an effort to begin to “control the inventory.” These agents seem genuine at first, but you never hear from them again, after you sign a long-term contract, until the very end when you ask you to “drop the price, and renew the listing.

Perhaps you called your cousin “George” (who really needs the business) to help you with the sale and although he has great intentions, he can’t deliver.

Sellers who don’t heed this advice sometimes wind up tying their home up for months on end, with absolutely no activity. Always protect yourself by getting a guarantee of specific performance with the right to cancel.

I offer what I call an “ Easy Exit” listing agreement, which gives you the right to cancel any time, for any reason whatsoever. We believe that you should have complete control when it comes to the sale of your home, and we give you exactly that.

Mistake #5: Failing To Get An Appraisal Prior To Listing Your Home

How would you feel if your home sold for $206,000, only to find out form the bank appraiser after the buyer made an offer, that it was worth $216,000? In today’s real estate market, this happens more often than you think. Your home will have to be appraised by a licensed appraiser sooner or later. Sooner can result in several extra thousands of dollars in your pocket.

Bonus: A qualified bank appraisal is a tremendous marketing tool for your home, because buyers are afraid of paying too much for a house. That’s why they often make low offers.

Think about it. Much of the real estate advice that you’ve received in your life has been, “make a low offer.” Without an appraisal, you’re just guessing as to the value of your home and when you get an offer, you’ll be guessing as to whether or not the offer is fair or not fair. Just going on a hunch has cost many sellers thousands of dollars, by their emotional reaction to a low offer.

A certified bank appraisal gives you a point of reference, a “benchmark” of value on which to base your decisions. More importantly, a professional appraisal helps you sell your home for full price, because the buyer can see that the price was realistically established by an uninterested but qualified, competent third party.

Mistake #6: Making It Hard For Qualified Buyers To Obtain Information

The two marketing tools that consumers think Realtors use to sell homes (open houses and classified ads) are actually not very effective at all. Surprisingly, less than one percent of all homes are sold at an open house. As a matter of fact, real estate agents use open houses to attract potential prospects, and very seldom actually sell the home itself.

Furthermore, dozens of advertising studies show that less than three percent of people purchase their home as result of calling on a classified ad. The few people who do call on classified ads and don’t obtain the information on the first call never bother to return the call.

We recommend using a 24-hour voicemail message and a listing on our website dedicated specifically to your home, so that buyers can obtain information on your house 24-hours a day. When marketing your home, don’t just think that a classified ad will find the right buyer. It takes effort and persistence, but effort and persistence usually do pay off in the long run.

Mistake #7: Not Using The Right Written Purchaser Agreement

Many sellers think their home is sold, only to find out weeks or even months later that they buyer was not able to obtain a home loan. Other sellers find out too late that dozens of items such as surveys, title insurance contingencies, assessments, tax pro-rations, home inspections, and a host of other details can come back to haunt them if not properly addressed right at the very beginning. It’s not uncommon to see a buyer willing to terminate a transaction only to have a seller cave in and absorb the expense of an item that realistically should have been a buyer’s expense to begin with, had it been written into the purchase agreement.

We have several forms of purchase agreements that are specifically designed to protect sellers, and these are available to all our clients, at no extra cost.

Mistake #8: Not Obtaining Written Pre-Approval For A New Home Loan For Your Next Home

Nothing is more heartbreaking than to sell your home and find your new dream home, only to find out that you can’t obtain financing for the dream home.

A written pre-approval is a formal written promise by a home lender to make you a new home loan. It doesn't cost a dime, and usually gives you a "locked in" interest rate for up to 120 days. Do not confuse a verbal pre-qualification with a formal written pre-approval. Verbal pre-qualifications are just that - verbal. They are not binding on the home lender. Many home buyers have received verbal pre-qualifications, only to later be denied a home loan and have their dream shattered.

We'd can refer you to several highly competent, well respected home lenders, who can provide you with a formal, written pre-approval at no charge, as a result of our recommendation. Please fell free to give me a call for their names.

The above recommendations come from years of experience in the real estate industry during buyers’ markets, sellers’ markets, high interest rates and low interest rates. In any economy, however, the listed recommendations apply in all situations. Follow these guidelines and you will substantially reduce the often stressful and sometimes expensive mistakes made by hundred of the home sellers in our area each year.

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The Most Costly Mistakes Home Sellers Make Mistake #1: “Hard Selling” During Showings People buy homes on emotion, not logic. Buying a home is always an emotional decision. People like to get the feel for a place to see if it is comfortable for them. It’s difficult for them to get comfortable in a home if you follow them around, telling them all of the things that you’ve done to the house and pointing out every improvement that you’ve made. It may even have the opposite effect that you want to accomplish by making the prospective buyer feel that they are intruding into your private space. Resist the temptation to talk to the buyer the entire time that they are in your home. Let them discover the home on their own. We recommend tasteful signs to point out hidden features that they might miss. Mistake #2: Pricing Your Home Incorrectly As a seller, you want to sell your home for the most money possible. Putting too high of a price on your home will often get you less money than you could have realized by putting fair market value price on your home. Keep this statistic in mind: On the average, buyers are comparing your home to fifteen to twenty other homes. If your house is not priced competitively, people looking at your home may reject your home in favor of superior homes priced very comparably. Overpricing your home usually increases the time on the market, and many buyers are aware of how long homes have been for sale. The longer your home is for sale, the more buyers are inclined to feel that there’s something “wrong” with it, and the lower the offers will be. To help avoid this, we’ve prepared a 30-page guide called “How to sell your home for top dollar, as quickly as possible, and with the least amount of stress!” This invaluable book covers the following areas (and much more): The Ten action steps you need to sell your home on time for top dollar. Setting the right price and avoiding the fatal mistakes that cause your home not to sell. Proven Madison Avenue advertising techniques that silently persuade buyers to call you instead of the competition. Staging your home and hosting an open house so buyers like it… and want to buy it now. A step-by-step action plan to make sure your home sells - on time - for the highest possible price. Once you learn these principles, you’ll know how to sell your home for the very best price, with the fewest problems, in the shortest possible time. Not only that, you’ll know how to avoid paying to much money for any house that you buy for the rest of your life. Many of my clients have reported that it has saved them thousands of dollars. Some of my clients have told me that if has saved them more than $10,000. A copy is available at no cost to any of our clients. Mistake #3: Failing To Prepare Your Home For The Buyer’s Eye Buyers look for homes, not houses. Buying a home is an emotional decision and they end up buying the home that makes them most comfortable. It’s what I call the “Ah-ha” effect. I’ve watched dozens of times as buyers walked in through the front door and grasped “Ah-ha,” and immediately fall in love with the house. Owners who fail to make necessary repairs, who don’t spruce up the house inside and out, who don’t do all the little things that make a house show like a million bucks, will suffer from lower offers and longer market time. Think about it this way: if you were selling a car, wouldn’t you wash it and maybe even give it an extra good cleaning inside and out to get the highest possible price? That’s because a buyer looking at your used car is purchasing on emotion, just like someone looking at your home. Mistake #4: Signing A Long Term Listing Without A Written, Specific, Performance Guarantee Many times, an agent has good intentions about marketing your home or condo, but may not have the expertise, or time to do so. Or maybe they are simply too busy, and forget. Other real estate agents are taught by their brokers to take any listing for any price, in an effort to begin to “control the inventory.” These agents seem genuine at first, but you never hear from them again, after you sign a long-term contract, until the very end when you ask you to “drop the price, and renew the listing. Perhaps you called your cousin “George” (who really needs the business) to help you with the sale and although he has great intentions, he can’t deliver. Sellers who don’t heed this advice sometimes wind up tying their home up for months on end, with absolutely no activity. Always protect yourself by getting a guarantee of specific performance with the right to cancel. I offer what I call an “ Easy Exit” listing agreement, which gives you the right to cancel any time, for any reason whatsoever. We believe that you should have complete control when it comes to the sale of your home, and we give you exactly that. Mistake #5: Failing To Get An Appraisal Prior To Listing Your Home How would you feel if your home sold for $206,000, only to find out form the bank appraiser after the buyer made an offer, that it was worth $216,000? In today’s real estate market, this happens more often than you think. Your home will have to be appraised by a licensed appraiser sooner or later. Sooner can result in several extra thousands of dollars in your pocket. Bonus: A qualified bank appraisal is a tremendous marketing tool for your home, because buyers are afraid of paying too much for a house. That’s why they often make low offers. Think about it. Much of the real estate advice that you’ve received in your life has been, “make a low offer.” Without an appraisal, you’re just guessing as to the value of your home and when you get an offer, you’ll be guessing as to whether or not the offer is fair or not fair. Just going on a hunch has cost many sellers thousands of dollars, by their emotional reaction to a low offer. A certified bank appraisal gives you a point of reference, a “benchmark” of value on which to base your decisions. More importantly, a professional appraisal helps you sell your home for full price, because the buyer can see that the price was realistically established by an uninterested but qualified, competent third party. Mistake #6: Making It Hard For Qualified Buyers To Obtain Information The two marketing tools that consumers think Realtors use to sell homes (open houses and classified ads) are actually not very effective at all. Surprisingly, less than one percent of all homes are sold at an open house. As a matter of fact, real estate agents use open houses to attract potential prospects, and very seldom actually sell the home itself. Furthermore, dozens of advertising studies show that less than three percent of people purchase their home as result of calling on a classified ad. The few people who do call on classified ads and don’t obtain the information on the first call never bother to return the call. We recommend using a 24-hour voicemail message and a listing on our website dedicated specifically to your home, so that buyers can obtain information on your house 24-hours a day. When marketing your home, don’t just think that a classified ad will find the right buyer. It takes effort and persistence, but effort and persistence usually do pay off in the long run. Mistake #7: Not Using The Right Written Purchaser Agreement Many sellers think their home is sold, only to find out weeks or even months later that they buyer was not able to obtain a home loan. Other sellers find out too late that dozens of items such as surveys, title insurance contingencies, assessments, tax pro-rations, home inspections, and a host of other details can come back to haunt them if not properly addressed right at the very beginning. It’s not uncommon to see a buyer willing to terminate a transaction only to have a seller cave in and absorb the expense of an item that realistically should have been a buyer’s expense to begin with, had it been written into the purchase agreement. We have several forms of purchase agreements that are specifically designed to protect sellers, and these are available to all our clients, at no extra cost. Mistake #8: Not Obtaining Written Pre-Approval For A New Home Loan For Your Next Home Nothing is more heartbreaking than to sell your home and find your new dream home, only to find out that you can’t obtain financing for the dream home. A written pre-approval is a formal written promise by a home lender to make you a new home loan. It doesn't cost a dime, and usually gives you a "locked in" interest rate for up to 120 days. Do not confuse a verbal pre-qualification with a formal written pre-approval. Verbal pre-qualifications are just that - verbal. They are not binding on the home lender. Many home buyers have received verbal pre-qualifications, only to later be denied a home loan and have their dream shattered. We'd can refer you to several highly competent, well respected home lenders, who can provide you with a formal, written pre-approval at no charge, as a result of our recommendation. Please fell free to give me a call for their names. The above recommendations come from years of experience in the real estate industry during buyers’ markets, sellers’ markets, high interest rates and low interest rates. In any economy, however, the listed recommendations apply in all situations. Follow these guidelines and you will substantially reduce the often stressful and sometimes expensive mistakes made by hundred of the home sellers in our area each year. Return to News Article & Press Releases
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