The 10 Deadly Sins Of Selling Your House
Deadly Sin #1. Buying a replacement home BEFORE selling your
old house. The temptation may be great to buy a
replacement home first. That way you'll know where you are
going and how much you'll be paying. And you won't have to
worry about being left out in the cold with nowhere to go if your
home sells quickly...HOWEVER, the financial risks of buying first
are great. It's far better to sell your current home first and
endure the inconvenience of moving to an interim rental - which
rarely happens - than it is to end up owning and paying for two
homes when you only want one. Sure, some sellers will take a
"contingent sale" but how long will they give you? Chances
are, that seller will want a "better" price for his home, since he's
selling it 'contingent' to you. You may be able to negotiate a
better deal with him if he knows that you are serious, have your
home in escrow, and can close when both of you
want.
Deadly Sin #2. Basing
your sales price on what you want to NET...rather than on market
value. Market value determines the price of your home -
NOT wishful thinking. A buyer won't pay more for your home
just because you think you need more money in order to purchase your
next home. Find out the market value of your current home by
having your agent prepare a CMA (comparative market analysis) or by
having an appraisal done by a local appraisal firm. This will
tell you the value of your home based on comparable sales
information. With this information, you can determine an
accurate list price for the current market. After you know
what your home is likely to sell for ask your agent to prepare a
sellers net sheet. It will tell you approximately how much
cash you will receive from the sale. Then, visit a mortgage
broker or loan agent to bet pre-APPROVED for a mortgage. They
will let you know what price range you can afford to buy a home
at.
Deadly Sin #3. Failing
to get a "termite" report (or other reports) before listing your
home. Sellers are often required to pay for eliminating
wood pests/termite infestation when they sell their home. They
may also be asked to correct other defects. Sellers who know
the condition of their home before they sell are in a better
position to negotiate a firm sale because they can disclose exiting
reports on the property to buyers before they make an offer.
Deadly Sin #4. Putting a home on the market before it is
spiffed up. Buyers and Realtors remember what they
see. Their first impressions are lasting ones. If a
property looks a mess when it hits the market, that is how agents
will remember it. Most people lake the vision to imagine what
the home will look like when it's fixed up. It's usually
better to delay marketing a home until it's spruced up for
sale. Most buyers utilize Realtors when buying, so Realtors
are more excited about showing and selling homes when they are in
mint condition.
Deadly Sin #5. Refusing to reduce a listing price that is too
high for the market. It's hard to be objective about the
value of your home. This is why it's important to get a
professional opinion of an experienced Realtor before setting the
price. Over-priced listings often take a long time to
sell. Thus they can sell for less than they would have if they
were priced right to begin with. It's natural to want to get
the most money possible when you sell. Competitive pricing is
the way to achieve that result. If you find that your list
price is too high for the market, reduce your price sooner rather
than later. The longer it sits on the market unsold,
the lower the ultimate selling price is likely to
be.
Deadly Sin #6. Refusing to counter a low
offer. Sellers want to sell high; buyers like to buy
low. A low offer from well-qualified buyers is better than no
offer at all. A high offer from unqualified buyers only leads
to disappointment. The price buyers offer is not the most
important part of their offer - if they are willing to
negotiate.
Deadly Sin #7. Insisting on being present when your home is shown to
prospective buyers. One way to discourage buyers from
buying your home is to be home during showings. For buyers to
decide to buy a home, they first must discover, and discuss, all of
its flaws. Buyers are reluctant to say anything negative about
a home in the sellers' presence. It's best to leave your home
when it's being shown to buyers.
Deadly Sin #8.
Listing with a contingency to find a replacement
home. This is like saying that your home might be for
sale. Serious buyers make offers on homes that are definitely
for sale. Otherwise, buyers could wait in vain for unrealistic
sellers to find an acceptable replacement home. Sellers often
want a contingency to find a replacement home so they don't have to
move twice. To avoid having to move to an interim rental, list
your home with a provision that you may need to "rent back" the home
after closing for 30 days. Or you could have a 60 day escrow,
thus giving you enough time to find a suitable replacement property
AND close escrow on the home you are in. At least your buyers
know that they have bought a home, even if they can't move in right
away.
Deadly Sin #9. Setting up a complicated showing procedure that
discourages showings A home that can't be shown, can't be
sold. The easier it is to show a home, the more often it WILL
be shown, and the quicker it will be sold. There is usually a
direct correlation: the more showings a home receives, the
less time it takes to sell. Lockboxes allow Realtors access to
show your home. Be flexible if an agent calls and wants to
show your home in an hour. Try to accommodate ALL showings -
the one you turn away MAY have been the exact buyer for your
home!
Deadly Sin #10. Refusing to do anything to get your house ready to
sell.
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