Selling Real Estate

10 Things to Avoid

1. Pricing too high or too low. No one wants to "give away" their property...but neither do they want agents to show it in order to sell something else, a situation common with over-priced properties. Ambitious pricing can lead to growing "stale" on the market as time passes and both agents and buyers begin to wonder what's wrong with the property. Likewise, pricing below market value will cost you unnecessary losses. Your agent studies the market and can help you determine a price that will get you the most possible money in a reasonable amount of time.

2. Listing with the Realtor who gives the highest price. Unfortunately, there are a few agents who will give sellers unrealistic prices in order to get the listing. The result is that the property doesn't sell, it develops a bad image in the market, and the agent finally asks for a reduction.

3. Listing with a Realtor who agrees to reduce his fee. There are agents who will readily agree to reduce their fee, and frequently the prospect of "more money" sways sellers to list with them.  However, this arrangement is often a reflection of weak negotiating skills: if the agent so readily gives away his own money, what will he do with yours in negotiating your price? A good, strong agent will make you more with his strong negotiating skills than an agent willing to cut his own fee will. This tactic, often used just to "get" a listing, serves the seller poorly, especially since other offices may choose not to show a property offering a reduced fee.

4. Believing that advertising sells houses. Extensive research has demonstrated that a very low percentage of sales result directly from advertising. The network that Realtors develop over their years of work is the major source of sales. A good office will track where their business originates and focus their efforts in that area.

5. Not merchandising their homes. Picture a Toyota, polished, vacuumed, shiny and clean. Picture a similar Toyota filled with candy wrappers, stale McDonald's bags, mud and dust.  Same car, same price. Which would you choose? What does the condition tell you about the owner's philosophy about maintenance? Or a dollar bill, crisp and new, versus another one crumpled, dirty and torn. Given a choice, which would you pick up? Now apply the same principle to presenting a property for sale. You live in a house differently than you show one for sale. A good agent will guide you in making the necessary changes to make the difference.

6. Not inspecting the septic system upon listing. Waiting until you find a buyer to begin your septic work can cause unexpected delays and expense. More than one "perfectly fine" septic has failed or required repair...and knowing about that before you negotiate a price with a buyer allows you to take any expenses into account. Often the work requires more time than allowed for closing, causing unnecessary stress and inconvenience for all parties involved. Better to have the septic work done up-front.

7. Not repairing obvious material defects. That roof that you can get replaced for $1,500 will cost you $3,000 in the buyer's mind...and may cost you more than you think if you are under time constraints to have the work done quickly to close. In addition, buyers will think, "If it needs a new roof, I wonder what else is wrong with the property?"

8. Making the property difficult to show. The easier the property is to show, the easier it is to sell. Being present at showings prevents the buyer from mentally "owning" the property. Requiring 24-hour notice discourages brokers with customers in hand to try to show. Requiring the listing broker to be present at all showings loses opportunity if the listing broker happens to have a conflict. Requiring verbal contact creates obstacles if you aren't available when the attempt to contact is made. The ideal situation is to allow the broker to use an electronic lockbox...or to release the key to cooperating brokers. All Realtors are licensed and members of the Board of Realtors; they are professional and qualified to show your property without the presence of the listing agent.

9. Extensively looking for real estate before actually being in a position to purchase. Putting the cart before the horse can lead to disappointment and, ultimately, to less money in your hip pocket at the closing table. If you look at property before yours has sold...and fall in love with something you're not in a position to buy until your property is under contract for sale, you may end up taking less just to get into the property you're enchanted with. Or....you may end up broken-hearted because someone qualified to buy came along.  It's sensible to look at a few properties to begin getting educated about the market...but to spend serious amounts of time looking before you are ready can lead to disappointment and financial loss.

10. Not carefully choosing a Realtor. If your child or spouse required open heart surgery, would you choose a surgeon who had done six operations last year, or would you choose one who did six hundred? Hire your Realtor based on experience, marketing programs, and his level of success. In addition, be sure that you are compatible...you may spend months working with your agent, so working with someone you like will make the experience smoother.