Financial Planning, Retirement Issues


The seven deadly mistakes most homesellers make

seven deadly mistakes most homesellers makeThe seven deadly mistakes most home sellers make. Our daughter and son in-law are in the process of selling their home and we thought it would be interesting to look at what the right things are to do to sell  a home and what the wrong things are about selling a home. We came across this list of mistakes that many people make when they decide to sell and felt that it would be interesting to examine them in some detail. If you are planning to sell a home in the near future it may be worth a read. Avoiding these issues may help you sell your home more quickly and it may even help you sell for a higher price which is always interesting to many people.

Seven Deadly Mistakes Most Homesellers Make

Here are the seven deadly sins. We will discuss each in more detail.

  • Failing to analyze why they are selling.
  • Not preparing their home for the buyers eye.
  • Pricing their homes incorrectly.
  • Selling too hard during showings.
  • Signing a long-term listing agreement without the written performance guarantee.
  • Making it difficult for buyers to get information on their homes.
  • Failing to obtain a pre-approved mortgage for ones next home.

Failing to analyze why they are selling – knowing why you are selling will lead to making many right decisions vs. wrong decisions during the sale process. It will also help avoiding self sabotage of the sale process. For example someone who is transferred is a pretty clear cut reason for moving. While moving to find a larger home in a better location can be a little more fuzzy especially if one partner is not fully committed to the move.

Not preparing their home for the buyers eye– clutter and too much personalization distracts the potential buyer from visualizing what their furniture and knickknacks would look like in your home. If they begin visualizing there is definite interest which may lead to an offer. In addition most people do want a home that is move in ready and does not need a lot of renovations or maintenance before they move in or major repairs. Get your home ready before you put it up for sale.

Pricing their homes incorrectly – pricing a home is always tricky.  Too low means it will sell fast, but you may leave money on the table. Priced too high and it may not sell at all. Motivated sellers who have been transferred are some times urged by their real estate agents to sell quickly by lowering the price. Beware of agents who will guarantee the sale by buying it from you if it does not sell within a specified time frame. You can be sure that the price they will pay you is below market value.

Selling too hard during showings – potential buyers need time to explore you home and visualize what their furniture etc will look like in your home. They also will visualize what it would be like living in that home, the neighbor hood etc. Pushing too hard will distract them, however knowing when to push a little bit and knowing when to back off is something that many agents learn over time and people who are more observant or are in sales.

Signing a long-term listing agreement without the written performance guarantee – avoid this like the plague. Agents need to be motivated to perform just like everyone else and if there is a chance that they will lose the listing to another agent, they will work much harder to show your home and to sell it through advertising etc. Keep your listing arrangement to a maximum of three months and avoid automatic renewals.

Making it difficult for buyers to get information on their homes – this is a large purchase for most buyers, for some it is the largest purchase they will ever make. They will want to know all kinds of details and the motivated seller will have all of this information readily available. This could include all of the basics about the home as well as dates when the roof was replaced, the furnace, the hot water heater, the air conditioning,  the square footage, the taxes, the cost to heat and cool the place etc. make it easy for the buyer to get interested in your home.

Failing to obtain a pre-approved mortgage for ones next home – obtaining approval takes time and if you are in a hurry you may want to take this step of being pre-approved for a mortgage. Also if you are moving and planning to move into a larger home, you may get a nasty surprise if your mortgage approval gets bogged down because you cannot get approval for the size of mortgage you need due to credit issues etc.

We hope this list helps both buyers and sellers alike and let us know your comments and any additional suggestions that might make sense to be included in this list of seven mistakes that home sellers make.

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