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 There are inappropriate steps sellers can take when it comes time to
put their house on the market.
For instance, the seller in Virginia, who thought the half bath
the builder had located at the front of the house would really be
better situated toward the back of the main level (though all the
other similar models had the powder room in the same place for the
previous 20 years). He got hung up on this detail so much, that he
just had to move it -- and did -- for thousands of dollars, just so
he could get it on the market the "right way." His hang-up
may have settled some deep-seated emotional need for him, but it
didn't draw any more buyers, and it drained his bottom line. You
might say, that was a costly mistake.
Real estate broker and author Sid Davis has identified in his
book, "A Survival Guide to Selling a Home," seven costly
mistakes that many sellers make when it comes time to put their home
on the market. In my business, I've seen each one of these mistakes
played out and it just makes me shake my head as to why sellers
forge ahead with unwise strategies, instead of listening to the
voice of an experienced professional.
Mistake 1: Putting the home on the market before it's
ready. Most times this happens because the seller gets impatient or
is a procrastinator and has pushed himself up against a moving
deadline without getting the pre-sale work done. So it comes on the
market with the horrible carpet (that gets replaced during the
marketing of the home); or they are painting it while it goes on the
market. Presentation is everything -- so get the work done before
marketing the property.
Mistake 2: Over improving the home for the neighborhood.
This happens with additions, bump outs, and upgrades that make the
home stick out from among its competitors so much that it's an
anomaly, instead of a nice addition to the community.
Mistake 3: Pricing the home based on what the seller wants
to net. This pricing strategy always ends in failure. Sellers can
control the "asking" price, but they don't control the
"sales" price. The market does. It doesn't matter what the
seller wants, the price is determined by the black-and-white,
matter-of-fact reality of the market.
Mistake 4: Hiring an agent based on non-business factors.
It might be nice to hand over your largest asset to your nephew who
just got his license -- but make sure you understand the
consequences if your deal starts going south.
Mistake 5: Getting emotionally involved in the sale of the
home. This is one of the biggest challenges home sellers face when
putting their house on the market. Once you decide to sell your
house, it's no longer a home, but a commodity. It needs to be
prepared as a commodity, marketed as a commodity, and priced as a
commodity. It doesn't matter what you "want," only what
the market can bear on pricing. People are going to come in to kick
the tires, so to speak, and you can't get emotional about how they
may or may not appreciate the nuances of your home of seven years.
Mistake 6: Trying to cover up problems, or not disclosing
them. Most states have a property disclosure/disclaimer form -- use
it wisely. Just because you disclaim doesn't mean you cannot be sued
later for the leaky basement, or dilapidated heating/air system
that's discovered 30 days after settlement.
Mistake 7: Not getting your ducks lined up before trying
to sell. This would involve financing, reading the fine print on
your current mortgage to ensure no pre-payment penalties, not
listening to the particulars of your local market, etc. If your
local market is dictating lower home prices, then lower it early,
not later -- it will cost you more. If the local market dictates
selling your home first, then buying second, do it in that order, or
vice versa.
Avoiding these mistakes is not that difficult. Your REALTORŪ is
there to help you step over the pitfalls.
Written
by M. Anthony Carr
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