BIGGEST MISTAKES TO LOOK OUT FOR WHEN SELLING YOUR HOME!
Category Advice
Overpricing is one of the biggest mistakes that you can make, here are a few more with some expert advice on what to do.
- Overpricing
Setting an asking price that is way above market price is one of the biggest mistakes that you can make. Homes for sale have to compete with other comparable properties on the market. And in a slower-paced, buyer's market such as that currently being experienced, in many areas price-conscious purchasers are able to pick and choose from a broad selection of homes.
If you are asking way over market price, the property will either sit on the market or will not sell, it will result in receiving offers way below asking price. You have to realise that it doesn't matter what you paid for your home, the current market will determine the current value.
Information
Is key to get as much information about the market and sales in the area as possible and your agent to present these to you so that you can be fully informed not only about the state of the market, but also the economy and how this affects asking prices. Your estate agent has to give you a comparative market analysis.
Hyper-local
In a challenging market, an estate agent is who is hyper-locally focused and know and understand the area intimately, with this knowledge they can guide you with market conditions, sales in the area and buyer profiles. If the estate agent comes to you, armed with detailed information about the area, they will inspire trust - that is also why hyper-local expertise is so important in today's market.
Take out the emotion
You generally have an emotional connection to your property and will therefore often think that it is worth much more than the market reality. Agents need to approach this with sensitivity and remind you that you need to approach the sale of your house like a business transaction. The agent needs to guide you to accept an asking price that will place your property in the right range on the online portals otherwise buyers will simply overlook it.
Build up trust
Estate agents always have to win your trust through the transaction. Once they have gained your trust they can guide you through the process and where your house is in the market. You have high expectations when you start, but once the agent got your trust/confidence they can also guide you through similar offers so that you can see what is available at a lower asking price.
- Renovations don't always add value
Another mistake that you make is to add the capital you've spent to the selling price of the property. No matter what has been spent on finishes and renovations, the home in its current state needs to be compared with what similar homes in a similar condition have recently been sold for.
Here, agents will need to ensure that they provide a full analysis of the neighbourhood and the price trends. All areas have price ceilings, and just because your house is massive with high value finishes does not mean that it will sell for a price well above the market ceiling.
- Property portals and listing prices are not pricing guidelines
You should not base your assessment of what your selling price should be on the listing price of other homes in the area - rather look at the actual prices homes sold for, the number of price reductions, the time on the market, the cost of running the property each month and the time value of money. As properties for sale have not yet sold, the asking prices may be too high, and some may have been sitting on the market for some time.
It will be counterproductive to list an overpriced property which will then not attract buyer interest. Having to reduce the price at a later stage may also result in buyers viewing the property with some degree of suspicion. Agents should also understand the reasons for selling, for example if financial, then pricing becomes even more important to work towards a quick sale.
- Empty homes vs staged homes
The problem with unfurnished homes is that people can't see a finished product. An empty property always looks smaller, darker and feels colder than a staged property. You are often reluctant to spend the upfront money to stage an empty property, but it certainly does assist with selling the property both faster and often at a higher price. Viewers are more likely to stay longer in a furnished property than an empty one, they are more likely to sit down, get comfortable and feel the property as opposed to just view. But if there is nowhere to feel comfortable and relaxed, they move onto the next with few positive memories of the vacant airy property. Staging an unfurnished property may involve a small upfront cost but would certainly recommend this to you as the cost pays off in the long run.
Selling an occupied home, it is advised for you to declutter. Buyers do not want to be tripping over baby bath toys whilst having the family dog jumping up and knocking them over. A home should be presented in the best possible way - estate agents understand if it cannot be 100% all of the time as you are living there, but you should at least pack away the unnecessary, clean up the dog mess and have the basics done before any viewing.
Author: Extracts Property Professionals Admin
