How to Avoid the Top 5 Home Seller Mistakes
When you are selling your home, it can be easy to be in a vacuum. You have a certain idea of what the market should pay for your home and what may or may not be an issue. After all, you are king of your castle, right? Your home has x, y and z . The location can’t be beat. It’s just around the corner from (insert fabulous restaurant, park, coffee shop, school, etc. here).
However, when buyers and agents are coming through your home, it can be where distorted perception meets reality. Here are the top mistakes sellers make and how to avoid them.
1. Overpricing Your Home
If your home is overpriced, two things won’t happen: showings or offers. The price is what sets the tone for showings. It is the nonverbal message that either invites or discourages activity. If it is too high, buyers that can afford it may be interested in something else, as they can go higher in price range, and the audience for whom it was intended price-wise are usually shut out. To avoid frustration over offers much lower than your set price, have an open discussion with your real estate agent to set the right price for your home.
2. Making Showings Difficult
Restricted showing times, no lockbox or having to be present for all showings can impact the ability of showing traffic through your home. If there are umpteen instructions or restrictions, agents and their buyers will simply move on to those properties with less rules. Work with your real estate agent to find a way to make showings convenient for both you as the seller as well as potential buyers.
3. Not Countering an Offer
While everyone would love to get the most for their home, a seller also needs to keep a realistic balance. It is too easy to get hung up on the starting number in an offer when the focus should be on what the end result is. The opening offer is simply that –a starting point. It gets a conversation going and results in hopefully a happy medium that is amenable to the buyer and seller. Not countering an offer is like having a one way conversation. It won’t work. How can you move to sold if you can’t have a dialogue of back and forth? It doesn’t mean that the buyers aren’t serious, they are simply being conservative in their first offer to get a feel for how the negotiation is going to go. It doesn’t mean that is the most they are willing to pay unless the offer was positioned that way. Failure to counter sends a discouraging signal to the buyer that can create an uncomfortable situation, perceived or real. Buyers want to do business with sellers who are eager to do business with them. You don’t have to give away the store to do so, but certainly responding with a number in good faith is a step in the right direction.
4. Property Condition Denial
Would you as a buyer pay top dollar for a home with original systems approaching the end of their life? In today’s real estate climate, buyers, lenders, appraisers and inspectors are more scrutinous than ever. It is not only the buyer, but the lender, appraiser and the buyer’s insurance company that could be making the call on a home’s condition. Before you sell, be realistic about the condition of your home. Unless the home is deeply discounted below market value, which realistically means it would be far too low pricewise that you would agree to accept, the buyer will care about it and if they don’t, their home inspector certainly will!
5. Selective Memory
Sellers often fear that if they disclose too much or provide too many details, that it could affect their ability to sell for top dollar; however, failure to disclose could open you up to liability after the sale. Leaving questions blank, or not being clear on the age of certain things only creates more red flags and concern for a potential buyer. If you answer the questions honestly and fully disclose any known issues or repairs that were made (with receipts to document and provide a history) it will eliminate buyer fear and doubt.