7 Mistakes to Avoid When Selling Your Home

Selling your home is a complicated process. It’s natural to feel overwhelmed by the magnitude of the details involved, but the experience can be very manageable when broken down into its component parts and dealt with step by step. The following is a list of common pitfalls encountered during the home-selling process. Use these as a guide to help your journey remain a smooth one. 

1. Faulty Pricing:

It is essential you determine the asking price of your home based on its market value; which of course is the value in the market at that particular point in time. Markets change, values rise and fall according to; the economy, supply and demand factors, and influences beyond anyone’s control. We cannot let emotions or needs influence the asking price, because those are particular to the Seller(s) situation and not to the Buyer(s). What was originally price paid for the house, or the amount of money subsequently invested in the home will not necessarily determine market value.  If your home is priced significantly higher than what the market is bearing at the time, prospective Buyers interested in your style of home may reject it for larger homes or newer homes or better located homes listed at similar prices. Also, those Buyers who do see your house may have significantly higher expectations based on your price point.  Ironically, over-pricing your home actually increases the chances that your home will sell for less than it is worth.  Driving prospective Buyers away will increase the amount of time your home stays on the market, which raises an additional red flag for Buyers.  They become wary of the reasons your home has not sold; perhaps wondering if there is something wrong with it. The bottom line: price it correctly, and they will come.

Be vigilant also of pricing your home too low: a lack of market value awareness could result in selling your home for much less than it’s worth; and that’s a good reason to hire me.

2. Neglecting to showcase your home:

Take the time to ensure you’re offering the best possible first impression of your home to Buyers. A few improvements done to your home before placing it on the market can increase the chances of selling quickly, and for more money. When Buyers spot an area of your home in need of repair, they will have one of several reactions that will impact your chances to sell and the price you receive. Some will just not be interested because they do not have the time to renovate, or the connections to local renovators, or maybe just do not have any interest in getting caught up in a renovation project. For those who will consider the house, they will  consider the perceived cost of upgrading when deciding upon an offer price; and this price will often be further adjusted to reflect their personal time and involvement beyond the actual renovation expenses. And since Buyers often aren’t sure about the cost involved for repairs, they will create a larger margin for error in their asking price.  Sellers are always better off dealing with these repairs themselves. 

In addition to taking care of fix-ups, make sure the house is clean and welcoming, and the yard is well-groomed. Clean up clutter and “depersonalize” it so the Buyer is looking at the house and is not distracted by your personal items (no matter how interesting!)

3. Not Choosing the Right Realtor:

Many Sellers choose the Realtor who tells them the highest asking price. This should never be the basis on which you choose a Realtor—you must have confidence in the full spectrum of your Realtor’s experience and abilities; and of course the price must be right to begin with. There is a list of questions to keep in mind.  Can this agent explain to you all aspects of the selling process?  Does he/she have a solid reputation and background of experience? Does he/she have a good grasp of the market?  Does he/she have access to a large pool of Buyers and a marketing plan to attract them? Does the public perception of the Realtor’s company encourage confidence and response? An experienced Realtor will usually cost the same as an inexperienced Realtor, and holding out for experience could mean more security that your ultimate home selling goals will be attained.

4. Trying to “Hard Sell” During Showing:

Buying a home can be an emotional and stressful decision, and potential home Buyers don’t want to feel pressured when viewing a home.  So, let your home speak for itself.  Allow potential home Buyers to comfortably view the house and property.  If you are present don’t try haggling or try to point out every improvement you’ve made.  Good Realtors let Buyers discover the house for themselves, only pointing out features they’re sure will be of interest, and being receptive to any questions the Buyers might have. They know their Buyers and their Buyer’s needs and interests; and can sell the features of your home which will be most appealing to the Buyer.

5. Make sure the Buyers are pre-qualified and not wasting your time.

Some people who look at your home may not be serious about buying.  Many who view homes may just be getting a feel for the market, gathering ideas for “showcasing” their own home, or even just looking for decorating tips. Worst of all they may be “casing” it for a break in or looking to sell you something. Of the people who are looking to buy, those who do not come through a Realtor can be 6 to 12 months away from buying.  They may still be in the process of selling their own home, or saving money for a new one. They may be thieves or con artists.

An experienced Realtor is trained to separate the “Lookers” from the “Buyers.”  Realtors establish a potential Buyer’s savings, credit rating, and purchasing power.  They require and request the signed documentation and proofs required under the new FINTRAC federal government legislation to screen out money launders and terrorists. This protects you in the process.

6. Limiting the marketing and advertising of the property:

A good Realtor will ensure that your property is showcased and marketed in the best, most effective manner possible, employing a wide spectrum of marketing techniques.  He or she should be committed to selling your property, making the effort to distinguish your home from the hundreds of other homes on the market.  Most calls are received—and viewings scheduled—during business hours, so your Realtor should be available to field these calls from prospective Buyers.  Lack of Realtor availability, limited viewing times, not allowing a “For Sale” sign on your front lawn, can all affect the exposure your home gets to the pool of potential Buyers, and will ultimately affect your bottom line.

7. Being unaware of your rights and responsibilities:

It is essential that you are thoroughly aware of the details involved in your real estate contract. In the course of the sale of your home there is a long list of documents you will likely encounter, including but not limited to;

• The Working with a Realtor brochure explaining responsibilities, duties, agency relationships, and privacy and disclosure matters.
• A Listing Contract to list your property
• Data Input Information pages to identify all the aspects of the property
• A Property Condition Disclosure Statement
• A FINTRAC document as required under Federal legislation
• A Dual Agency Consent form (in the event of dual agency)
• A Contract of Purchase and Sale Agreement
• One or more of dozens of related or subordinate documents and/or addendums, attachments, schedules, plans, bylaws, approvals, and so forth
• Many individual documents directly related to Strata (if applicable)

 These contracts are often complex—but no matter how confusing and convoluted the language, the contract is legally binding.  As you soon as you sign your name, you are responsible for all of its contents.  Not knowing your responsibilities could cost you thousands in repairs and inspections.  Have an experienced Realtor explain the contract to you, or get your lawyer to review it.