Misconception # 1 - Pricing Incorrectly:
Every seller wants to realize as much money as possible when
he or she sells their home.
But a listing that is too high often gets the seller less
than a price that is at market value. If your home is not
priced competitively, buyers looking in your price range
will reject your home in favor of other, larger homes for
the same price. At the same time, the buyers who should be
looking at your home will not even be aware it is on the
market, because it is priced out of their range. Overpricing,
in most cases, will increase the time on the market and that
adds to the carrying costs. Ultimately, many overpriced properties
sell below market value as many turn into impatient sales.
Misconception # 2 - Believing A Refinance Appraisal is the
Market Value of your home:
An appraisal is an opinion of value for a certain purpose.
If a lender wants to lend you money, they are motivated to
have the appraisal come in as high as possible. In a refinance,
the lender represents the seller(the owner of the property).
Lenders use specific appraisal companies or have their own "in-house" appraisers.
A buyer who wants a loan to buy your home is a total stranger
to the lender plus the lender represents the buyer, and the
lender will be much more cautious about loaning money because
of the higher risks involved. Buyers are as educated as Sellers
and will weigh their offer price on a property based solely
on competitive sales in the area.
Misconception # 3 - Failing to "Showcase" your
home:
Buyers look for homes, not houses, and 85% of buyers buy
homes based on emotion. Owners who fail to make necessary
repairs, touch up the paint, manicure the lawn, and keep
the home neat and clean chase buyers away as fast as they
come to preview your home. Automobiles are a good example…..since
they are the second highest investment you’ll ever
make. If you’re selling your car, you would wash it,
and possibly even detail it to get the highest price possible……homes
are no different.
Misconception # 4 - Using the "Hard Sell" during
Showings:
Remember, buying a home is an emotional decision. Buyers
like to "try on" a home and see if it is comfortable
for them. When a home is currently occupied, buyers already
feel like they are intruding on someone’s privacy.
Following them around and pointing out every improvement
does not help. If fact, this will only worsen matters. Resist
the temptation to talk the entire time a buyer is there…..let
them discover things on their own. Try a tasteful sign posted
on a door or wall to point out some hidden amenity they might
otherwise miss. A list on the kitchen counter of all your
upgrades, is an excellent selling tool.
Misconception # 5 - Mistaking "Lookers" for "Buyers":
For Sale By Owners always get more activity than homes listed
with an agent. Realtors single out the "buyers" from
the "lookers" by pre-qualifying them first. A
qualified buyer is one who is ready, willing and able to
purchase a home. Many potential buyers may have a home
to sell first, may need to save more money or possibly
have some credit problems. Statistics show these type of
buyers are the "lookers" and frequent "For
Sale By Owners" more than the true "buyers".
Working with a realtor will eliminate those Sunday afternoon
shoppers with a dream of owning a home some day.
Misconception # 6 - Limiting the Marketing and Exposure of
the Property:
Did you know Open Houses and Classified Ads are the two most
ineffective ways of selling your home ? Less than 1 % of
homes are SOLD through an Open House and less than 3% of
homes are SOLD through classified ads. Open Houses are good
to attract future prospects for realtors, not to sell your
home. Most classified ad calls are made during the day(while
the seller is away), and when an answering machine answers,
the prospective client usually hangs up. The right realtor
will always be available to answer calls and employ a broad
spectrum of marketing activities, emphasizing the ones they
believe will work best for you and your particular property.
There are dozens of more effective ways to locate buyers
than just open houses and classified ads.
Misconception # 7 - Not knowing your Legal Rights AND Obligations:
Real estate law is extensive and complex. The contract for
sale and purchase is a legally binding document. An improperly
written contract can cause the sale to fall through, or
cost you thousands of dollars for repairs, inspections,
and remedies for items included or excluded in the offer.
It is extremely important to know the responsibilities
of the buyer and the responsibilities of the seller. If
there is a clout on the title or the property is in conflict
with deed restrictions and/or local zoning, know how to
deal with these situations or it might cost you thousands
of dollars.
Misconception # 8 - Signing a listing contract with no way
out:
We always have good intentions when we hire a realtor to
represent us in the sale of a home. Unfortunately, things
happen sometimes out of our control, to change our circumstances.
Some examples might be, the realtor quits the business or
they don’t do what they say they are going to do, or
your job transfer didn’t go through. If these types
of things happen you need to protect yourself. You should
have the right to fire the realtor for services not rendered,
or be able to cancel the listing because your new job didn’t
go through. Always protect yourself by getting a guarantee
of performance with the right to cancel a legal binding listing
agreement.
Misconception # 9 - Choosing the Wrong Realtor, or Choosing
Them For the Wrong Reasons:
It’s likely you don’t interview people very often.
And yet to find the realtor who is right for you, you may
interview several. The quality of your home selling experience
is dependent upon your skill at selecting the person best
qualified. It’s interesting that in the real estate
business, an agent who is successful with a proven track
record usually costs the same as someone who is inexperienced.
You’re not saving money by hiring an agent who charges
you less commission. An experienced realtor could actually
save you thousands of dollars at the negotiating table by
getting you a higher price, selling your home in less time,
and with the minimum amount of hassles.
The world is populated with Realtors who are wrong for you.
For example, the part-timer who sells an occasional home
because they need a little pocket change, or the person who
has a job but thinks they can handle two careers, or perhaps
your Uncle Harry, who really needs your business, or even
your "best" friend who has their license. The sale
or purchase of a home is the most important financial transaction
you will ever make. The person you select can make it a satisfying
and profitable experience, or a terrible one. It’s
your home and your money. The choice of your Realtor is up
to you. Make the selection carefully.
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