Even in a seller’s market, some home owners make big mistakes when they decide to list their home. Here’s what NOT to do!
In our last article, we talked about the good possibility that the real estate crisis may finally be over. Good news for home sellers, right? We’ve also seen such a hot market that even most of our own listings barely made it into the Multiple Listing Service before a slew of offers came in. In some cases, homes were sold even before we had the chance to market them. Again, good news, right?
However, this doesn’t mean that agents and homeowners haven’t faced their challenges. Some homes actually do still sit on the market without any offers. There are several reasons for this, and we’ll address the top ones here.
Seller mistake number one: Pricing your home too high.
Yes, even in today’s market, we see sellers do this (or at least try). Homeowners unfamiliar with how the real estate market works tend to believe that, since prices are going up, that if they price their home at the top of the market, or even above, that they’ll end up receiving top dollar for their home. In fact, the opposite is true. Real estate is not unlike the stock market, with fair market value being the rule of the day. Prices will only sell for what the market will bear, and there are many factors that go into this. First and foremost, competition.
Just like any other commodity, real estate value is based on Fair Market Value, which takes into account such items as conformity to the neighborhood, economic factors that may impact the area positively and negatively, and the overall economy and ability for buyers to obtain loans. Homeowners who try to take advantage and price their property too high in anticipation of what MIGHT be a hot market will be disappointed as buyers purchase surrounding homes that are within fair market value guidelines. Which leads us to our next seller mistake.
Seller mistake number two: Not using comparable market data to price your home.
As we mentioned above, comparable value is how the real estate market works. What a home was worth yesterday, or tomorrow, may have no consequence on today’s market value. Your licensed real estate professional should be trained and equipped to be able to provide you with information and statistics that will allow you to make an informed decision on the price of your home, and sell your home quickly.
Seller mistake number three: Refusing to negotiate
Real estate negotiations aren’t always necessarily about price. In some cases, deals fall apart because the seller refuses to negotiate other terms, such as repairs or even close of escrow. While it is understandable that you may have certain needs to close the sale of your home, you might consider being slightly flexible, based on market conditions. Remember, this should be a win-win situation for both you and your buyer. Keeping that in mind can make for a much smoother transaction.
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