Selling a home can be a frustrating experience. Here are some of the most common mistakes home owners make when they try to sell their homes.
Mistake #1: Picking The Wrong Real Estate Agent
As a seller, you might find that you go through many realtors because they just can't seem to get the results that they initially promised.
Everyone wants more money. When it comes to buying or selling a home, money is always an issue.
Buyers want to give less and sellers won't take anything below their asking price. When you first sit down with a new realtor, people always seem to be filled with excitement because the price is always high in the beginning.
Some realtors try to convince you that they can get you the highest price for your home.
They may take on the challenge of selling your home at an inflated price because they want a higher commission.
Unfortunately you may make the biggest mistake possible when you establish the list price too high.
Mistake #2: Not Knowing The Value of Your Home
You should know what the true value of your home is and what the comps (or comparables) are for your community.
Comps are regarded as the single-best tool in determining a home's value.
Comps contrast criteria from recently sold properties in a neighborhood, such as sale price, age of house, size, and square footage.
Real estate agents use comps to prepare a Comparative Market Analysis (CMA) for their clients.
Before putting a home on the market or listing with a real estate agent, savvy home sellers obtain a comparative market analysis.
You should know the value of your home before you set a selling price.
Mistake #3: Not Getting Your Home Appraised
It really doesn't matter what you think the house is worth, it matters what financial advisors think your house is worth. For you to establish value you have to get it appraised by someone who can give you an official price. Then you also need to keep in mind that the appraiser's opinion means nothing too if it isn't the same as the buyer. You need to know that it is an art when it comes to pricing homes.
You have to think about so many thing and the value of their worth to the general public. In fact, no two appraisals are ever the same. It's hard to price your home. You have to give an educated guess by using the appraisal, knowing the bills that it needs to cover, and also the demand of the home and for the area.
Mistake #4: Giving In To Frustration
You have to worry about the market. You can't have your home on the market for too long. You become tired and frustrated and begin to lower the price drastically. For example; you may price your home for $100,000, it's worth about $70,000 but with added demand it could go for $80,000. Well because it is priced so high no one buys it. Then in six months you lower it to $90,000, still too high.
After a year or so you just want rid of it so you take the best offer and it's $60,000. You lost $20,000 because you played around. You lost your edge and the market. If you price too high you will lose a lot of money in the end. You also can't go too low because you have to think about all the bills you have to cover with the money. You may also want to make a profit from the house and you'll have to keep a lot of things in mind before you place a price on your home. You can price low to get rid of it quickly, but you'll lose out on some money, however, not as much as you might lose from pricing too high.