When you are preparing to put your property on the market, there are a myriad of things to think about, to prepare for and to organize. Here's a short list of some of the pitfalls to watch out for!

Deadly Mistake No. 1 - Pricing Incorrectly
Every seller wants to realize as much money as possible when they list their home for sale. This is particularly true when "improvements" have been made to the property. Often a seller would just like to "try listing it high and see what happens." In an exceptionally strong sellers' market this might work, but more often than not, a listing price that is too high will result in the seller ultimately accepting an offer that is lower than a true market value price. If your house is not priced competitively, people looking in your price range will reject your house in favor of the other larger homes for the same price. At the same time, the people who should be looking at your house will not see it because it is priced over their heads! Over-pricing usually increases time on the market thereby adding to the carrying cost. Ultimately many overpriced properties sell below market value. Pricing is CRITICAL!

Deadly Mistake No. 2 - Failure to Appropriately "Showcase" the Home
Buyers look for homes, not houses. They buy the house that says "HOME" to them! Owners who fail to make necessary repairs, do not spruce up the house inside and out, touch up the paint and landscaping, and keep it clean and neat chase buyers away as rapidly as Realtors can bring them. If you were selling a car, you'd wash it, or maybe even detail it to get the highest price&houses are no different. Preparing your home for a strong introduction to the market, and going the extra mile by staging your home for the prospective buyers not only makes those prospective buyers feel "at home," but often encourages them to make their "best offer" in terms of selling price and terms.

Deadly Mistake No. 3 - Using the "Hard Sell" During Showings
Buying a house is an emotional decision. People like to "try on" a house and see if it is comfortable for them. It's difficult for them to do that if you follow them around pointing out every improvement that you've made. It may even have the opposite effect by making them feel they are intruding on your private space. Resist the temptation to talk when a prospective buyer is touring your listing. Let their agent help them discover things on their own or try a tasteful sign posted on a door or wall to point out some hidden amenity that they might miss. When Your Home is being shown, make it comfortable for the prospective buyers.

Deadly Mistake No. 4 - Mistaking a "Looker" for Buyer
Being anxious to sell your home can often be revealed to a prospective buyer through body language and it can set the wrong tone for a prospective buyer. They may think you're hiding something or, at the very least, that you'll be willing to accept a low offer. When your house is being shown, it is recommended that you either walk outside or make yourself as "invisible" as possible.

This is particularly problematic in the case of a "For Sale By Owners (FSBO)" seller. FSBO properties always get more activity than houses listed with an agent, no question about it. Unfortunately, many prospective FSBO buyers are not really buyers at all. Professional real estate agents bring only qualified buyers to look at homes, i.e., individuals who are ready, willing, and able to buy the house. The agent will have asked the prospective buyer how much he can really spend for a house, how much he has to put down, how good his credit is, how much he can pay each month, how much he will realize realistically when he sells his present home, and about a dozen other such questions. Often, the prospective buyer accompanied by a professional Realtor will come with a mortgage pre-approval letter in hand! This often separates the "lookers" from the "buyers" and minimizes the likelihood that you could have a parade of Sunday afternoon shoppers with a dream of owning a home some day. Are you wondering, "Do I Need an Agent?"

Deadly Mistake No. 5 - Not Knowing Your Rights and Obligations
Real estate law is extensive, complex and continually changing. Contracts for purchase and sale are legally binding documents! An improperly written contract can cause the sale to fall through, or cost you thousands in repairs, inspections, and remedies for items included or excluded in the offer. You must be certain which repairs and closing costs you are your responsibility. You must know whether the property can legally be sold "as is" and how deed restrictions and local zoning will affect the transaction. If there are defects in your title or if your property is in conflict with local restrictions, you or your Realtor must remedy them, possibly at significant expense to you. Are you wondering, "Do I Need an Agent?"

Deadly Mistake No. 6 - Signing a Listing Contract with No Way Out
The listing contract is a binding obligation. Let your agent show you the relevant paragraphs in the contract and explain your options for a release should that become necessary. Always protect yourself by getting a guarantee of the right to cancel. Check out our tips for choosing an agent to represent you.

Deadly Mistake No. 7 - Limiting the Marketing and Exposure of the Property
Entry into a multiple listing service, a For Sale sign and a lockbox are the primary sources of buyer exposure for your house. Most calls and showings occur between the hours of 9:00 AM and 5:00 PM, Monday through Friday. Can your home be viewed during those hours? The two most obvious marketing tools, open houses and classified ads, are only moderately effective. Surprisingly less then 1% of homes are sold at an open house, events that agents use to attract future prospects not to sell your house! Advertising studies show that less then 3% of people purchased their home because they called on an ad. The right Realtor will employ a broad spectrum of marketing activities, emphasizing the ones he believes will work best for you and your particular property. Accessibility remains at the top of the list.

Deadly Mistake No. 8 - Believing that a Bank Mortgage Appraisal is the Market Value of Your Home
An appraisal is an opinion of value for a certain purpose. When a lender wants to lend you money, he is motivated to have the appraisal come in high. The appraiser may ignore foreclosures or distress sales in order to justify the higher value. A real buyer in the real world will not ignore these competing properties when you try to sell. Don't make the mistake of thinking that the value you were given when you refinanced six months ago is what a real buyer would pay. A Comparative Market Analysis prepared by your professional Realtor will provide you the most accurate forecast of your home's market value.

Deadly Mistake No. 9 - Choosing the Wrong Realtor And/Or Choosing Him for the Wrong Reasons
It's likely that you don't interview people very often. And yet, in order to find the Realtor who is right for you, you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the best-qualified person for the job. It's interesting that in the real estate business someone with many successfully closed transactions usually costs the same as someone who is inexperienced. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table, a faster sale and a smoother transaction. The world is populated with Realtors who are wrong for you. For example, the part-timer who sells an occasional house because he or she needs a little pocket change, the insurance salesman who believes he can handle two careers, or perhaps your cousin, George, who really needs your business. The sale of your home could well be the most important financial transaction with which you have ever been involved. The person you select can make it a satisfying and profitable activity or a terrible experience. It's your home and your money. The choice of your Realtor is up to you. Make that selection carefully.

Deadly Mistake No. 10 - Choosing a Realtor Based on the Listing Price, or Back to Deadly Mistake No. 1
Listing price can make or break your home selling experience. An experienced Realtor may consider listing your property "high" during a hot sellers' market. Even in that situation, however, that savvy agent will want to protect your interest by building into the agreement a date for a price reduction, typically after two weeks, if no offers have been generated. The overpriced listing that languishes on the market will not only delay your moving plans, but will likely net you a lower selling price than appropriate pricing would have secured.



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