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Seven
steps to sabotage the sale of
your home !
Seven
steps to sabotage the sale of
your home !
But there's a
right way and a wrong way to
sell your home and many sellers,
curiously, like to try the wrong
way first. In fact, some sellers
seem to do everything they can
to sabotage a sale.
If that's
your goal, here's seven great
ways to mess up the sale of a
perfectly good home:
1.
Overprice it.
"Sellers
get their home wrapped up in
their heart. Their emotions
cloud their judgment to the
point that they always think
their house is worth more than
the house next door." Overpricing
almost guarantees months on the
market before you realize the
listing has become "stale" and
you are forced to drop the
price. By that time prospective
buyers begin suspecting there's
something wrong with it,
something other buyers have seen
but that you're hiding. Hoping to find
an uninformed buyer is just
wishful thinking. Most buyers
look at two dozen or more homes
before they make an offer. If
they were ignorant when they
began shopping, they they got
educated looking at that many
homes. The right way:
Price your home at or near
appraised value and share that
appraisal with buyers. Let them
know you are not going to
negotiate. Chances are you will
get a full price offer because
you've addressed the buyer's No.
1 concern: "Am I overpaying for
this house?" Contrary to popular
belief, home buyers aren't
looking to "steal" your house.
And, you can't be forced to sell
for less than you want. Full
price offers for properly priced
homes are more common than you'd
think.
2. Fall in
love with your home. "An offer means
someone is interested in your
property," "That's far
more important than the amount
offered. The fact they're
interested is more than half the
battle. Now all you have to do
is negotiate price and terms."
To you it's a
home, but to prospective buyers
it's just a house. Most buyers
consider square footage a more
reliable indicator of value than
the fact that the master
bathroom has marble tiles
imported from Italy or that you
had a local artist paint a mural
on the living room wall. "Many
houses in this area have those
dark, old-fashioned basements
that make them hard to sell.
Often, sellers are so proud of
their homes that it's tough to
convince them to reduce their
price. They are just in love
with their home and they have a
tough time seeing it through the
buyer's eyes." The right way:
Tuck away your foolish pride and
negotiate. If you love your home
that much why are you moving?
Many
problems are rooted in denial.
"The seller can't look at his
home objectively. They have a
hard time seeing it as a buyer
would." The right way:
You truly don't get a second
chance to make a good first
impression. Most home buyers
literally decide within seconds
if they are interested in a
property. Have a professional
home inspection done before
putting the house on the market.
This allows you to address any
problem areas, play up the good
points, and look a buyer in the
eye when you're talking about
the condition of the home. Spending a few
hundred or even a few thousand
dollars getting a home in tiptop
condition not only makes it show
and sell better, but you are
likely to get much of the fix-up
costs back in a higher sales
price. "Sellers
need to view their house as a
buyer and ask themselves if they
would buy that same house again.
The reason they would not points
to the problem that needs to be
fixed, whether it's painting or
alleviating smells or fixing up
the yard." Taking the easy
way out -- deducting repair
funds from the seller at closing
-- only invites disaster. Buyers
always overestimate the costs
either because of a lack of
knowledge or a desire to use
them as a negotiating strategy.
And keep in mind that once it
gets this far, every repair --
even minor ones -- are going to
be done by licensed contractors
at their prices, not the actual
expense you would have faced if
you had fixed or painted it
yourself. A fresh coat of paint
indoors and out, cleaned
windows, a spotless bathroom and
kitchen, organized and
uncluttered closets, fresh
flowers, nice smells, and
freshened up landscaping will do
wonders.
4.
Overvalue your sweat equity
Many sellers
oversell the features of a home
and overestimate the value of
the work they have done on it.
They think they should price
their home $20,000 higher than a
comparable home because they
have put $20,000 worth of extras
into the home. But buyers are
brutal and it is rare that you
get a dollar-for-dollar return
on your investment. The right way:
Remember, those things were for
you. You enjoyed them. Be happy.
But don't expect the buyer to
pay for them. Those are your
extras, not the buyer's, and
they simply won't give you
credit for them.
5.
Disregard the buyers'
perspective
6. Hide
your neighborhood The right way:
Keep in mind the oldest adage in
the real estate game: Location,
location, location. Many sellers
fail to take into account the
neighborhood. A $100,000 home in
one neighborhood will sell for
$80,000 to $130,000 in other
neighborhoods. Most buyers
prefer a diamond surrounded by
other diamonds, not a diamond in
the rough. If you are selling a
diamond in the rough, be
prepared to accept less. Just as
you benefit from a good
neighborhood, so you will be
hurt by a marginal neighborhood.
7. Deal
with unqualified buyers
So many sellers
fall into this trap --
especially those not working
with an agent. Accepting a
contract from any prospective
buyer, then finding out a month
later they can't qualify for
financing is an easily avoidable
mistake. The right way:
Insist that prospective buyers
are pre-qualified before you
accept a contract and earnest
money from them. Mortgage
brokers will do this over the
phone for free, in less than 10
minutes. Next, insist that they
make formal mortgage loan
application within a few days of
contract acceptance. Even then,
continue to market your home,
accepting backup offers and
keeping names and numbers of
prospective buyers in case the
deal falls through.
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Hire
ReMax Maple Ridge To List Your Home for Sale
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