Rejecting a Reasonable Offer at the Early Stages of Listing
Some buyers reject offers near their asking price just because they are optimistic that there will be higher/better offers coming up. They feel that we have just begun to market and hence more offers will be coming.
The truth is that, ready buyers are those that have been in the market for some time and have done their rounds of viewings and comparison. The new buyers who come on the market, even if they like the unit, may not make an offer immediately because they “haven’t seen enough”.
Overpricing the Property
Sellers base their asking price on how much they THINK their property is worth, or how much renovation they have ‘invested’ into their homes. Renovation is subjective and the potential buyer may not share the same sense of aesthetics as the seller.
The truth is that, how much a property can fetch depends on its valuation, as well as market conditions of supply and demand. Pricing it correctly will get you the highest amount of interest and a bigger pool of potential buyers.
“When you overprice a property you miss out on all of the buyers who see it during the first month on the market and then over time you reduce the price until it sells.”
It is better to price at the market level or even slightly under to yield the most profit in the end. Do consult with Property Science before you make your pricing decisions.
Helping your Agent to ‘Sell’ the House
Some enthusiastic sellers think that they are the best person to present the property since they know their unit and neighborhood best. Some follow the buyers around and chirp in whenever possible. This can have a negative effect on buyers.
In fact, the best thing they can do is to leave the house and let their agent do the presentation. Why is this so? Have you ever walked into a shop and have the salesperson shadow your every move, commenting on every item that you touch or look at? Did you feel comfortable with someone hovering around or did you feel like leaving the shop immediately?
The longer you allow the buyers to linger in the property, to enjoy and connect with the space, the higher the chances of an offer. If you do not want to leave your property, it is advisable to stay out of the way.
Failing to Spruce Up or Declutter the House
Many sellers feel that since they are already leaving for a new home soon, money spent on minor repairs to improve the condition is money down the drain. They also do not want to clear up the clutter because it is a hassle. They expect buyers to ‘see past’ the clutter and an old paint job.
The truth is, FIRST IMPRESSIONS COUNT! Viewing a house is an emotional and visual experience. Buyers will make offers when they feel comfortable in the space. Poor maintenance makes buyers wonder if there are other potential problems. Anything that prevents a buyer from falling in love with your home will affect the outcome of the offer.
Often, a coat of paint makes a remarkable difference. Even patching up a crack or cleaning up a room will make a difference between a low offer or a reasonable one.
“Too much furniture makes a room feel small, giving buyers a hard time envisioning the potential of the space.”
Not Using an Agent
It is not surprising to find DIY sellers struggling for many months to get a good price for their property only to jumble things up in the paperwork or financing process. Selling their own homes is an emotional process and these feelings can color their views of the final price. For this reason, we at Property Science get requests from fellow brokers to sell their homes too.
Good brokers worth their salt are not only in tune with the market dips, increase and other changes; they are well-versed in the art of negotiation and the commission paid may be well worth the extra profit in the sale price.
In recent times, most buyers show up at viewings with their agents. If there is a deal, the seller will still have to pay the buyer’s agent. In the event that the buyer has no agent, they would expect a generous discount since the seller has no need to pay commission to the agent. If this is the case, the seller may as well appoint an agent to represent his interests.
Using the Wrong Agent
Not choosing the right real estate agent to work with can be one of the biggest makes a home seller can make. Real estate encompasses a wide variety of property types and agents have their areas of specialty.
Do not hire a broker just because you know them as a friend or because they are cheap.
A good agent should be experienced, have a healthy advertising budget, a solid track record and a robust marketing campaign. In the information age, it is also important for the agent to be respected and well-liked (and easy to deal with) in the eyes of their industry.