Common Selling Mistakes Of FSBOs! (for sale by owners)

Mistake #1 -- Pricing Property Many sellers hear what a neighbor house sold for and instantly think "well, if they got that much for that house, we could get more because our house is better!" Of course, every homeowner thinks their property is superior because they like it better - that is why they bought it in the first place. These sellers do not take into consideration that they cannot compare that neighbor's house, because there are too many differences, such as it is a two-story with a huge lot, and the seller's home is a bungalow on a smaller lot. They also were not aware that the two-story was completely renovated with new roof, new furnace, new floors, etc. No comparison. An accurate, comparitive evaluation for pricing compares similar properties, similar house styles, similar lot sizes, similar features. This is the 'Direct Comparison Approach' in the principle of substitution, where a prudent buyer would pay no more for a property than the price of acquiring another similar, existing property. Mistake #2 -- Believing Re-finance Appraisals indicate Market Value Many sellers get a re-finance appraisal done by their lender when the market is hot, and instantly think "oh, our property is worth more than we thought!" Of course, they don't realize that lenders are in the business to lend money and appraisal value is NOT market value. Four months later, the market value of your home could actually be lower. You need recent up-to-date information regarding property sales in your area of similar properties to get a true evaluation of your property value. Mistake #3 -- Presentation of Property Many sellers do not realize the importance of presentation. To be effective, your home needs to look like a 'show home', not just a home that is neat and tidy. Make necessary repairs. Clean. Unclutter. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will lower the value of your property and will even turn away some buyers. Mistake #4 - "Selling" Too Hard Buying a house is an emotional and difficult decision. The prospective buyers need to feel comfortable examining your property. Sellers need to be friendly, hospitable and quiet, only pointing out features and answering questions factually. Mistake #5 - Not understanding 'Open House' or 'Classifieds' Many sellers do not realize the ineffectiveness of 'Open House' or advertising in the 'Classified' section of the newspaper. Less than 1% of homes are sold at open houses and less than 3% are sold because of the classifieds. Mistake #6 -- Verbal Negotiations Many sellers talk to the people about their price on the home while they are standing at the door with someone that came through the 'Open House' or called on their ad. They believe they are negotiating about the sale of their home. Wrong. The right thing to do is ask for a written offer and advise that any negotiations can be done at that time. Mistake #7 -- Not understanding Seller's Obligations, Rights & Responsibilities Many sellers are not well-informed of details in the real estate purchase contract. These contracts are legally binding documents, and can be complex and confusing. Not fully understanding every detail and being aware of every term could cost the seller a lot of money that had they known, would be included in what they would net in the end. Mistake #8 - Signing a Contract Many sellers believe that once they have signed the real estate purchase contract that their property is 'sold' and they stop trying to sell thinking they can proceed based on their sale. Unfortunately, they do not understand the conditions that are written into the contract. Hopefully, these sellers do not bind themselves into another contract without adequate conditions to protect themselves. Mistake #9 - Limiting Viewing of the Property Many sellers believe that they can sell their home during the hours that they are available. Unfortunately, buyers want to view properties for sale on their own time schedule and may not be shopping during the evenings and on weekends. Mistake #10 - Not Understanding the Value of a Realtor® Many sellers believe that hiring a Realtor® means less money in their pocket as they have to pay an exorbitant amount of commissions. Not true. In actual fact, even with paying the commission, sellers can net more. Why? Many reasons - exposure, qualified buyers, 3rd party negotiations, relocation, access, financing knowledge, etc. Selling your home could be the most important financial transaction in your lifetime. Pay attention to every detail, because the only one that is effected by the outcome is YOU! If you don't want to make these common selling mistakes, be sure to call one of our HomeLife Real Estate Professionals TODAY!

 

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from Dana, Hanna, Joanna & Barb!
Real Estate Specialists
HomeLife Real Estate Professionals Ltd.

#200, 12907 - 97 Street

Edmonton, AB  T5E 4C2

Phone: (780) 457-5100
e-mail:

Dana Wloka, Broker
Hanna Drozdowski, Agent
Joanna Wloka, Agent
Barbara Grodaes, Agent