How to Avoid a Selling Mistake

Trying to sell a home in our current real estate climate can be a real headache for a seller. Many homes now stay on the block for months at a time, and numerous areas are just trying to fight their way through the backlog of foreclosed upon properties, which only drives prices lower. In the first 30 days of 2011, over one-third of all homes sold were sold at a loss. As the spring/summer buying season gets into gear, buyers are clearly still in command, and they are well aware of it. This is all the more reason, if you are planning to place your property on the block, to understand some common mistakes sellers make, and how you can avoid them.



Be Aware of the "Current" Market



This isn’t 2006, and you can’t sell your home as if it is. Since the peak of the real estate market in 2006, house values have dropped an average of 27%, with a decline of up to 60% being seen in certain markets. Even with that in mind, sellers are inclined to try to sell their home at the price they paid, rather than base their asking price on the current condition of the market. A home price that is set too high will sit, and sit, and sit some more. Eventually, that will lead to a drop in your asking price, and buyers see that as being an inroad for even further negotiation and price haggling. One particular real estate listing site says that 23% of their listed homes have had their price reduced in the last month.



What can you do?



Give yourself as much information as possible, on comparable sales, percentage of area price cuts, and have a full knowledge of how long area homes are normally on the block. This will arm you with enough information to be able to have a thorough conversation with your agent, and come up with a suitable asking price.



Don’t lurk Behind Buyers when showing your home



If at all possible, try to be out when your home is being shown. Buyers get nervous when the sellers are at home during a showing. No one likes to feel like they are being watched, least of all when trying to decide on a life-changing purchase. Buyers like to imagine the home is their own, and want to feel free to have open and honest discussions without having to whisper.



What can you do?



Well, this is fairly obvious. Find something else to do for a little while, and don’t insist on being present for each showing. Other agents who may be coming with buyers may want some privacy as well.



Nick Muller | king-and-assoc.com