"The 10 Deadly But Common Home Selling Mistakes That Can Cost You Thousands and Ruin Your Plans"

Each year, in our area, many home sellers make the same mistakes over and over again. When you add up these mistakes, they total more than a million dollars each year!

It pains me to watch these same common mistakes made over and over again, so I finally decided to do something about it — and thus this Special Report outlining the ten most common (and most expensive) mistakes made by home sellers each year.

Mistake #1: Not knowing how to price your home to sell

Many sellers base their asking price on needs or emotion rather than market value. Many times, people make their pricing decisions based on how much they paid or invested into their home. This can be an expensive mistake.

Whether a house is priced too high or too low, it can cost you thousands of dollars. Obviously a house priced too low will net you less cash at closing. However, a house priced too high will take longer to sell. The homebuyer today is an educated consumer. On average a buyer will see 18 homes before purchasing. The house that sells today is the best one on the market in the price range. The sale of a house is a competitive enterprise. Ask your Realtor to show you what homes you are competing against.

Some people will say, "I can always lower my price later." Both Realtors and buyers are looking for new listings. Rarely do they notice a reduced price. The saddest sign anyone can put on a sign rider is "Price Reduced." That means the house was not priced right in the first place. The buyers will ask, "If the price was wrong, what else is wrong?"

Perhaps the most challenging aspect of selling a home is listing it at the correct price. It's one of several areas where the assistance of a skilled real estate agent can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you'll miss out on a percentage of buyers looking in the price range where your home should be. This is the flaw in thinking that you'll always have the opportunity to accept a lower offer. Chances are the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price and aren't even taking the time to look. By the time the price is corrected, you've already lost exposure to a large group of potential buyers. The listing price becomes even trickier to set when prices are quickly rising or falling. It's critical to be aware of where and how fast the market is moving - both when setting the price and when negotiating an offer. Again, an experienced, well-trained agent is always in touch with market trends - often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.

Mistake #2: Forgetting what you would want to see if you were the buyer of your home

Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else's expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out, when it comes to your home. Try to do as many of the following items as possible to improve the likelihood of an expedient home sale:

On the outside

1) Sweep front walkway.
2) Remove newspapers, bikes and toys.
3) Park extra cars away from the property.
4) Trim back the shrubs.
5) Apply fresh, clean paint throughout.
6) Clean windows and window coverings throughout.
7) Keep plumbing and all appliances in working order.
8) Maintain all sealant (window, tub, shower, sink, etc.)in good condition.
9) Make sure roof and gutters are clean and in good condition.
10) Mow the lawn frequently and plant flowers.
11) Keep pet areas clean.

On the inside

1) The kitchen and bathroom should shine.
2) Quick once-over with the vacuum; carpets should be clean.
3) Place fresh flowers in the main rooms.
4) Put dishes away, unless setting a formal display for decoration.
5) Make all beds and put all clothes away.
6) Open drapes and turn on lights for a brighter feel.
7) Straighten closets.
8) Put toys away.
9) Turn off television.
10) Play soft music on the radio/stereo.
11) Keep pets out of the way and pet areas clean and odor-free.
12) Secure jewelry, cash, prescription medication and other valuables.
13) Enhance the spaciousness of each room.

Mistake #3: "Hard Selling" During Showings

People buy homes on emotion, not logic. Buying a home is always an emotional decision. People like to get a feel for a house to see if it is comfortable for them. It's difficult for them to get comfortable in a home if you follow them around, telling them all of the things that you've done to the house and pointing out every improvement that you've made. It may even have the opposite effect that you want to accomplish by making the prospective buyer feel that they are intruding into your private space.

Resist the temptation to talk to the buyer the entire time that they are in your home. Let them discover the home on their own. I recommend tasteful signs to point out hidden features that they might miss. Another good idea is to have a photo album on the kitchen counter with photos of the home during other seasons.

You will be better served if you allow your Realtor to do their job without you there. Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present. If people unaccompanied by an agent request to see your property, you should refer them to your real estate professional for an appointment.

Mistake #4: Signing a long-term listing without a written, specific, performance guaranty

Many times, an agent has good intentions about marketing your house, but circumstances can change. Other real estate agents are taught by their brokers to take any listing for any price, in an effort to begin to "control the inventory." These agents seem genuine at first, but you never hear from them again.

Always protect yourself by making sure that you receive a written promise stating that you can cancel the listing, without charge, if specific written performance details are not adhered to by the broker.

Sellers who don't heed this advice sometimes wind up tying their home up for months on end, with absolutely no activity. Always protect yourself by getting a guaranty of specific performance with the right to cancel. I offer what I call an "Easy Exit" listing agreement, which gives you the right to cancel any time, for any reason whatsoever. That's how sure I am that you'll always be ecstatically happy with my services.

Mistake #5: Complacent marketing when selling a home

When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time. Ask your Realtor to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet. I also recomend that you use a 24-hour real estate hotline dedicated specifically to your house, so that buyers can obtain information on your house 24-hours a day.

The agent who is innovative and willing to offer new strategies for attracting homebuyers will always outperform the agents who rely on traditional methods. Demand around the clock advertising exposure, innovative lead generation methods and lead accountability. These services exist and your agent should offer them to help sell your home.

Mistake #6: Market Timing / Seasonal Selling

Just as a broker who continually follows the trends of a stock, your professional real estate agent continually follows trends of your home market. They will know if the market cycle is poised to net you the most money. Disregard believing property sales are seasonal, "sells better in spring than winter." Property is always selling. In fact, we found a higher percentage of homes listed in January 2006 sold than homes first listed in April 2006 (see "How Long Will it Take My Home to Sell?").

Mistake #7: Not understanding which repairs or improvements pay off

It often costs you more money to sell 'as is' than to make repairs that will increase the value of your home. Often even minor improvement will yield as much more than the repair cost at the time of sale. Your agent will be able to point out what repairs will significantly increase the value of your home. Seemingly small fix up jobs can have quite an impact.

However, there are other improvements that generally cost more to complete than they are worth in terms of return on investment. Each year, a study is done in major metropolitan areas, including Greater Milwaukee, to determine the return on investement for dozens of different improvements and repairs. Talk to us about whether or not it's worth making an improvement before you sell your home.

Mistake #8: Failing to take a hard, serious look at the condition of the house

Houses wear, paint gets dull and shabby, landscaping can become overgrown, and roofs deteriorate Often times as we live in a house we "live with" minor inconveniences that we intend to fix "Some day." It is not unusual to not notice conditions that are glaringly obvious to a buyer.

How old is your roof? An average lifespan is 25 years. How old is your furnace? An average lifespan is 15 years. How old is your hot water heater? An average lifespan is 10 years. Is there asbestos insulation covering your beat pipes in the basement? Do you have a septic system? Has it been pumped and fully inspected within the last two years? Is there any obvious water damage from old leaks? Have you had any improvements done to the house without permits and inspections? Are your hardwood floors scuffed and scratched? Are your carpets worn?

Any of these conditions that are noticed by the buyer may make him bypass your house and buy another. Or any found during the home inspection can cause the buyer to cancel the sale. It is best to have someone with fresh eyes take a hard critical look at your house. It may be a good idea to order your own home inspection to prepare in advance for what the buyer's inspector might say. We can refer to you a home inspector.

Be upfront and disclose to your Realtor any problems with the property. The problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it's common for inspections relating to health, safety, and even environmental concerns to be a part of most sales contracts. It is state law that the seller must disclose to the buyer any knowledge of existing property problems. In many cases, these issues have been or can be factored into the home's listing price.

Mistake #9: Not obtaining written Pre-Approval for a new home loan for your next home

Nothing is more heartbreaking than to sell your home and find your new dream home, only to find out that you can't obtain financing for the dream home.

A written pre-approval is a formal written promise by a home lender to make you a new home loan. It costs only $____ (I can often help you get them for no charge), which will be applied to your down payment when you get your new home. Do not confuse a verbal pre-qualification with a formal written pre-approval. Verbal pre-qualifications are just that – verbal. They are not binding on the home lender. Many home buyers have received verbal pre-qualifications, only to later be denied a home loan and have their dream shattered.

You can use the "Online Pre-Approval" page on this website to get a pre-approval, free credit report, and review of your loan options quickly and easily.

Mistake #10: Wasting time with an unqualified prospect

Many sellers accept and offer and base their plans on the closing date indicated in the offer only to find weeks or months later than the buyer has trouble qualifying for financing. It is important to screen a prospect's qualifications before valuable time is lost. With 7 years in mortgage lending experience, I know what to look for. Be sure to align yourself with the right professional and eliminate negotiating with unqualified prospects.

Summary

My hope with this report has been to educate you and help you avoid the pitfalls many home sellers go through. I hope you found the ideas valuable and if there is ever any way I can be of service to you or anyone you care about, please contact my office. Your initial consultation is always completely free of charge and you're under no obligation of any kind. We'll sit down for 20-30 minutes. No high pressure, just plain honest talk about what it's going to take you to achieve your personal goals. There are two ways you can reach me. Call toll-free at 800-677-9627 (ext. 0) or email me through this website.

I look forward to talking with you.

Sincerely,
 
President, ABR

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