Biggest Mistakes In Selling

Here are some pointers I have made about selling your property. I believe if you follow this advice, selling your home will be a synch!

I have been working in the industry for over 5 years and have a great experience in the current market. I have not experienced a ‘boom’ and only know how to list and sell in our current climate.

To members who have any further questions please do not hesitate to ask or send me a personal message.

Best Regards

Brian

1) IF YOU DON’T TRUST THE AGENT, DON’T HIRE THE AGENT

The most important ingredient in any relationship, business or personal, is trust. Before you choose your agent, ask many questions, check references, test their negotiating skills and ask yourself a big question: Do I feel comfortable with this person handling the sale of my family home? If your answer is ‘no’ don’t use the agent.

2)CHOOSING AN AGENT BASED SOLELY ON HIGH QUOTED PRICE and a low commission rate can be a dreadful mistake. Agents who offer low commissions can be poor negotiators; they generally work on high turnover and have low levels of service, communication and a low chance of achieving the best possible price. You are hiring an agent to negotiate the best market price for your home.

Once you have signed up with an agent you may be horrified at the things some agents say and do when handling the sale of your home. Many agents openly encourage buyers to offer lower prices. Some even reveal confidential information about sellers, such as “These people are in trouble.” If you have a pressing personal reason for selling- illness. Divorce, financial commitments, the agent may tell buyers about your reason. This really weakens your position. Agents who practice this technique are those who require quick sales due to their low selling fee.

3)A LARGE SALES STAFF DOES NOT MEAN A LARGE SALE PRICE. IT ONLY TAKES ONE PERSON TO SELL A HOME.

Many sellers believe the bigger the agent or the larger amount of sales people; the more successful they will be. You will have a higher chance of selling your home for the best possible price if you use one or two agents from the particular office. This will ensure that your agent is fully aware of your properties features and other vital information. You will also receive a higher personal service. It can get very confusing when dealing with a large number of agents. Would you want an agent showing your property to a potential buyer who is not aware of all your homes features? “Sorry, I don’t know. I will speak to the listing agent and get back to you” Sound familiar?

4) Using an agent which is out of your area is a big mistake. Some sellers think they have a better chance of achieving a higher price if their home is advertised in a higher priced area.

When buyers start their search, they look in the area they want to buy in. If you’re advertised in the wrong window and wrong sections of the magazines and newspapers, you will not be seen by the right buyers. You wouldn’t go to the fruit section of a supermarket to buy sausages would you?

Your best price will be achieved from the buyer looking to buy in your area.

5) You may save 3% but potentially lose 10%

It is astounding with the amount of sellers who attempt to sell their home themselves. Its one of the biggest mistakes sellers make. If you pick the correct agent, you are also picking a skilled negotiator. The agent should be is trained and experienced in getting the highest amount out of a buyer. A good agent will also be an expert in marketing and will know exactly how to promote your property to your target market.

Using a quality advertising campaign designed by a skilled agent will attract 4 times the amount of prospective buyers than a vendor marketing the property themselves. Where do you think the highest buyer will come from? A bank of 5 buyers or 25 buyers?

Studies have shown that this is the most unsuccessful method of selling a home. Studies have also shown that the rare number of properties that do sell privately are done so at a below market value and in an extended time frame.

“If your car breaks down, do you try and fix it yourself or take it to a mechanic?”

The probability is that if you attempted to fix the car yourself, and didn’t know what you were doing, you would cause more damage. You try and save $450 but end up spending $1,000.

Selling a house is not easy. Buyers are not purchasing a fridge or toaster. In most cases it is the biggest asset they are going to own in their life and the biggest decision they are ever going to make. If anything wrong is said to the buyers, if they are offended or you spend too much time with the buyer who is not making the decision you lose the sale of your home. All it takes is one slip, and buyers walk.

Selling your home privately will only do damage to your eventual sale price and extend your time frame.

6)The greatest myth with auctions is that they are “the best way to sell”. This is not always the case.

An Auction should only be used for a very unique estate where you may have a number of buyers, or alternatively when the property can not be confidently priced or valued within 3%. If the property is a mortgagee or the owners are after a quick exchange, auction may also be useful.

7) A PRICE WHICH IS TOO HIGH CAN MAKE BUYERS IGNORE YOUR HOME.

A home will quickly become ‘stale’ if it is not sold in the first one or two months. And stale homes get lower prices because buyers wonder why others rejected it. Your home must never be seen as a reject. Never set your price on what the house is worth to you or what other houses are on the market for. A good agent will always bring evidence of pricing, such as recent sales. Beware of setting your price on ‘emotion’. You may have lots of good memories and lived there all your life, but to a buyer that means nothing.

8)THERE ARE TWO BIG DANGERS WITH OPEN INSPECTIONS.

First, they are a security risk and second, they can easily damage the value of your home.

Despite the warnings and the enormous evidence, many agents continue to allow hordes of strangers wander through family homes. Most people who visit open inspections are lookers, not buyers.

But the purpose of open homes is not to sell the home; it is used to create the impression of activity and “condition” sellers to lower their prices. Because they think people looking at their homes are genuine buyers, they feel compelled to reduce their price. Sure some people at open homes may be buyers, but it is nearly impossible for an agent to determine who is a looker and who is a buyer.

Another reason open homes are used is to find sellers and get more contacts. Most people who are in the area and thinking of selling will inspect an open home. This is one of the most common behind-the-scene tricks in real estate.

If seven people were to turn up to an open house, how could an agent speak to all of them and provide you with quality feedback? What if the real buyer walked in and out while the agent was speaking to an ‘information seeker’? A real buyer would not turn down a house because there is no open home. The agent you hire should take the time to show prospective buyers individually. Anything else is just lazy.

9) IT CAN BE A BIG MISTAKE TO REJECT EARLY BUYERS FOR YOUR HOME.
Many sellers have discovered, from bitter experience that the buyers they rejected when their home was first placed on the market were the buyers prepared to pay the highest price.

An efficient agent will have a ‘bank’ of buyers waiting. The agent will select the best buyers and bring them to your home. This can be your best chance to get the best price. If your home does not sell to any of the buyers in the ‘bank’, you will have to wait for new buyers to enter the market. The number of buyers for your home will get lower not higher, as time goes on. And your price will often get lower too.

Some sellers believe that if they receive an offer in a very early stage, they can achieve a higher price if they hold off a few weeks.

“What might seem a quick sale to a vendor is usually a slow purchase for the buyer”

How many times do you hear of sellers having their homes for sale for a long time and getting a higher price? Almost never. High prices come early. Low prices come late.

10) DULL HOMES GET DULL PRICES.

But a home which sparkles, and has the right feeling, always sells for a higher price.

Be careful what you spend on improvements to your home. What suits you may not suit every buyer. You rarely get back more than half the cost of your improvements when you sell. Do not spend large sums on home improvement immediately prior to selling your home. Pay attention to the little things which create a big impression.

11) NO SIGN, NO BUYERS.

A common mistake made is to have no sign on your home. Many buyers drive around the area they would like to purchase in, and than enquire on the for sale signs they see. Also it is great for every body to know that your home is on the market. In many cases, people know of friends or family wanting to move in your area.

Many agents use signs to get a stronger presence in the market. Make sure when the agent erects the sign that it clearly demonstrates that the property is for sale and a short description of the main features. Most signs have the company logo covering 75% of the sign, and up the top there is a tiny heading saying ‘for sale’. The sign has to promote your home, not the agent.

12)THE HIGHER AMOUNT OF AGENTS, LOWER THE SALE PRICE.

One of the most common and biggest mistakes made is to ‘open list’ your home with two or more agents.

By open listing your home you cause many problems. First you create a ‘race’ between the agents. They both have signs up and they both want to have the ‘sold by’ up first. This is great if you want your home sold fast for the lowest possible price. The agents will try every trick in the book to get it sold before the other. This would involve telling buyers personal information about your current situation, telling the buyers what you’re willing to take and putting extreme pressure on the seller to accept an offer.

When you open list with agents you will get no commitment from them. They see you as a liability; they don’t want to spend money advertising your home in the chance that the other agent may sell it first. They spent all that money and get no commission, its way to risky for them. You will probably get no feedback or attention. Agents don’t want to spend time on something which may not make them money.

Agents also tend to favor their buyers than the vendor for whom they are working for. Real Estate services surveys confirm that open listing have,
• Lower sale success rate
• Lower market priority
• Lowest market price

13) HIDE THE PRICE, AND BUYERS HIDE.

Many buyers assume that if a property has no price advertised than it is too expensive, and they don’t make the phone call. If there is a chance a buyer doesn’t enquire due to not advertising the price, it’s a risk, too big to take.

By following these 13 guidelines you are guaranteed to have an easy, hassle free and successful sale.

Brian M