We recently responded in an on-line forum regarding the top mistakes made by home sellers. Here is the list that we suggested. We thought you might be interested as well.
- Overpricing the home. A well-counseled seller will interview several real estate professionals who are familiar with their neighborhood. Sometimes a seller may already have a relationship with a local Realtor with whom they wish to work. In this instance, you may ask your Realtor to enlist the help of other real estate professionals who are happy to help recommend a list price range as a courtesy to you and the agent you have chosen.
- Listing with the agent who says they can get the highest price. Agents do not control the market. They do manage the presentation and marketing of a home which can certainly influence the outcome. The seller always sets the list price, so when interviewing agents, focus on their recommendations for presenting and marketing your home. Be sure to separate “marketing” from “publicity”. Some agents use their listings as platforms for self-promotion, rather than considering what is needed to effectively promote your home to the right audience.
- Listing with an agent who may be too busy to give the home the priority it needs and the seller deserves.
- Listing with an agent who discounts their commission, if that is the only reason to choose the agent. The best qualified agent with the most polished marketing plan and the greatest attention to the details of your sale will more than make up any discount offered.
- Listing with an agent who is not familiar with the local market area. Strong local market knowledge is essential to pricing the home and representing the seller. In some markets, like the one where we work in Silicon Valley, many sales occur “quietly”, i.e., they are not exposed to the Multiple Listing Service. Well-informed local agents are better positioned to know about these properties and to access the agents and prospective buyers for selected, unique opportunities.
- Not exposing the home to the broadest segment of buyers. Normally this is accomplished through the Multiple Listing Service. In certain price ranges or for personal privacy, sellers may not want this type of exposure, but a well-counseled seller should insist on some element of exposure. In our local area which covers Palo Alto, Menlo Park and surrounding communities this is done through networking among the agents in person, telephone and electronically.
- Sellers should not show their homes until the home is in showing condition. A cluttered environment and relaxed housekeeping and home maintenance are not powerful visuals! Few of us live in our homes in the way they need to look for a positive showing appointment. It is the rare buyer who can overlook these details!
- Improperly or incompletely disclosing underlying conditions and defects. Complete and proper disclosure is not only required, but essential for avoiding or minimizing future problems with a dissatisfied buyer.
- Sellers should understand that in most markets the buyers are in charge. (Sorry to be the bearers of bad news!). When inventory is abundant, buyers can be selective and if they cannot negotiate successfully with one seller, they will move on to the next opportunity. When a market has low inventory, buyers will compete with each other for homes. Sellers will benefit from high prices and aggressive terms. When a home does not sell right away, it is important that sellers understand this, and that they react quickly by reducing their list price. The rhythm of the luxury home market and for unique homes is different. A talented Realtor will know the difference and can guide you appropriately.
- Not asking the agent for references. Some agents may “look good” until you talk with some of the people who have worked with them. There are on-line sources such as Yelp.com which are helpful. When choosing an agent, use your company wiki, or ask your circle of friends and colleagues for a recommendation.
As we approach the end of 2012 underlying market conditions are very favorable for home sellers in our market area. We continue to need more homes to sell in order to satisfy buyer demand.
It would be our pleasure to connect with you concerning your real estate plans. Please do not hesitate to contact us.