Learning form others mistakes
It’s important to learn from others mistakes. Mistakes are going to happen and there is an entire undergraduate degree study available learning from someone else’s hardship if you are willing to just take a look at what others who have gone before you have done….oh yeah…its also tuition free! Let’s take a look at 5 mistakes that sellers often make when selling their home.
1-Not having home inspections done prior to a listing.
This is IMPORTANT! If you have read my previous post, you know this is a HUGE point for me. One of my first and most popular blog post is dealing with this specifically. Buyers are likely going to want to have their own inspections completed during their due diligence period. Finding something major wrong with the house that we weren’t expecting is like having a bomb go off in the middle of our deal. That explosion could bring us to a very abrupt halt. A home inspection done before listing, gives you some extra assurances that nothing is waiting in the shadows to scare your buyers.
Side note: I believe so much in the pre-listing inspection that I reduce the amount of my commission in order to get it done. It’s THAT important.
2-Not anticipating the cost of selling your home
The additional cost of selling your home can add up quickly and take a bite out of the check you are anticipating. Agent commissions, buyer closing cost assistance, repairs, and the dreaded state and county taxes are often forgotten when sellers do the math. Once we start talking about selling your home, I will provide you with an Estimated Seller Net Sheet that will break down those numbers so you can see what your amount may really look like on the other side of the closing. I covered this concept back in December so the link above will take you straight there!
If you aren’t careful in that math, you could be setting yourself up for mistake #3.
3-Selling “Upside Down”
Selling upside down is when you owe more than you can bring from the sell of a property. You need to know your equity and how much the home is worth vs what it may bring to you at closing. If you owe more than we can sell it for you have negative equity. The amount we can bring to you at closing must also consider the additional cost from the previous paragraph.
Our market has been on an absolute rocket the last year or so and prices have steadily climbed. All things that go up, must come down, and while I don’t think we are looking at 2008 level catastrophe, I do think we are looking at a price correction in the future. No one can predict when that happens but when it does cool, negative equity is a situation that recent buyers are going to have to work through in order to sell their homes.
4-Missing the price
Pricing is the most difficult part of the process for me. Trying to get to the right price is a great science and math equation combined with intuition, gut instinct and a little guessing……Its not an exact measurement, and there’s MANY variables. Sellers always want to get top dollar and rightfully so. This is a big piece of their financial puzzle. We never want to leave money on the table, but pricing the home too high, is a sure way to make sure it takes longer to sell.
Studies show, that the longer a home sits on the market, the harder it is to sell. Pricing has lots to do with how long it takes. As a seller (and as an agent) we have to trust the CMA and the process that got us to the numbers.
5-Choosing the right agent
This one is not as straight forward as you may think. Everyone has a friend who is an agent, or who knows an agent. Sphere of influence is the name of the game in lead generation. What you want to consider when you are looking for an agent, is to be sure to pick someone who can get the job done. Marketing is a key component to making your home stand out to potential buyers and an agent who can’t negotiate on your behalf is worse than trying to sell it yourself. Choose an agent with a track record of success and that you can trust is working as hard as they can to sell your home!
I think the big take away here is, don’t just go with who you know. A good friend and former professor told me once “Who you know gets you in the door, but what you know keeps you there!” That’s great advice! You may need to pick someone you know, but that person should have the skills to do the job. There are MANY agents out there, and just because you can pass the real estate test, doesn’t mean you can pass the finish line of a deal. A great agent is worth every dollar they are paid because they can get you to closing with the least amount of stress, in the fastest time possible, and with the largest possible amount for your home.
I’m standing by when you are ready to get moving!
You also need to pick an agent that meshes with your style and personality. You will be spending lots of time talking and dealing with the agent over the course of the listing. Who you choose is a big decision. I’d love to work with you, but if my style is in direct opposition to yours, you are going to realize it wasn’t a great fit and resent making the decision. CHOOSE WISELY!
I’d love to have the chance to interview with you when you are ready to sell your home. I realize that everyone has choices, and I hope you will give me the opportunity to tell you what I can do for you. Every time I talk with someone its a no obligation conversation. I just want to show off the skills that I have that I think would bring value to you!
We are getting to Super Bowl Sunday (what I think should be a national holiday) so next entry is going to deal with how to build your Super Bowl caliber team of real estate professionals.
Welcome Home!
Chris Whitehurst