Pricing Incorrectly (too high or too low) - Make sure
you determine the market value of your home correctly. If your asking price is
significantly higher than what the market is currently bearing, many potential
buyers looking for your style of home will view similar but lower priced homes
first. Not only does this limit the pool of potential buyers but it also increases
the chances that your home will sell for less than its actual value. This is due
to the "discount" often associated with properties that have been on
the market for a longer than average time. Buyers are often overheard asking their
Agent... "What's wrong with that home? It's been for sale forever".
Alternatively, if your asking price is too low, you are literally giving away
your hard-earned equity just because you did not know what the market would bear.
Failing to "showcase" your home - A little
work can improve the first impression of your home a thousand-fold. First impressions
are lasting impressions and can dramatically affect a property's perceived value.
Mistaking a Bank's appraisal or a new Tax Assessment
as your home's actual market value - These processes are based on general guidelines
such as lot size and square footage, not the specific qualities and improvements
of your home. Using either of these as a baseline could cause you to over-price
or under-price your property. It requires detailed background knowledge of all
recent neighbourhood sales as well as homes currently for sale in order to estimate
value accurately. Ask your realtor for a detailed market evaluation.
Choosing the right Realtor for all of the right reasons
- It is critical that you have full confidence in your realtor's experience and
abilities. You want a realtor who can explain the whole selling process to you,
has a good feel for the market, has access to potential buyers and offers sound
advice on how to improve your chances of selling. Try to avoid choosing a realtor
on the basis of which one gives the highest estimate of your home's value. In
order to achieve the best sale price within a reasonable period of time you need
an accurate indication of what the true market value of your property is. Knowing
this allows you to properly price your home, thus maximizing your chances of selling
and allowing you to make your future plans with the sure knowledge that your goals
can be attained.
Failing to take current market conditions/trends into
account - Is it a Buyer's market, a Seller's market, a Balanced market? What do
future trends look like? Ask your realtor for a full analysis.
Not taking advantage of market fluctuations - The Big
Picture... Moving up in a market downturn? If your $150,000 home has dropped 10%
in value, so has your $300,000 dream home. Yes, you lose $15,000 on your current
home, but you save $30,000 on your next purchase! Always keep in mind the big
picture. Always buy and sell in the same market.
Using "hard sell" during showings - No one
likes being pressured. As well, buyers might wonder why you are so anxious to
sell. Let your home speak for itself.
Mistaking "Lookers" for "Buyers"
- Many people who look at homes for sale may just be getting a feel for the market,
seeing how others "showcase" their homes, or even just looking for decorating
ideas. Your realtor deals with these situations on a full-time basis and has the
experience needed to separate the "Lookers" from the actual "Buyers".
Relying too heavily on advice from the Buyer's realtor
- The interests of buyers and sellers are often opposing. In an agency relationship
it is very difficult for one realtor to look out for the interests of both the
buyer and the seller. You want to make sure you are familiar with Real Estate
relationships and the difference between being a client or a customer before accepting
advice from an agent or entering into any formal relationship with an agent.
Limiting the marketing and exposure of your property
- Part of what a good realtor does is to ensure that your property is showcased
and marketed in the best and most productive manner possible. Not allowing a "For
Sale" sign on the front yard, or limiting viewing times can dramatically
reduce the number of prospective purchasers seeing your home and have a serious
impact on your bottom line.
