5 Pitfalls to Avoid when Selling your Home
Most people out there agree that the idea of simply moving from home to another is time consuming and can be anything but hassle-free.
When you factor in having to sell your home prior to moving into a new one, there are a whole series of things that can really add to your stress if you don't plan accordingly.
It doesn't have to be this way.
Here are 5 things to know before working with your next listing agent if you are looking to sell in the next 12 months.
- Poor pricing strategy and lacking patience: When the price of a property is set too high, it can make potential buyers lose interest from the start. If this inflated price is then not quickly adjusted to match what buyers may want to pay, then buyers may think "what's wrong with this home?"
💡Pro-Tip: Be upfront with your agent on what price you would like as well as the lowest price you'd be willing to accept. (For example, I'd love to get $500k but would be okay with $475k.) Also, ask your agent how long they expect it to take for compelling offers to come in based on different pricing strategies (slightly above market value, market value or below market value.)
- Ineffective marketing: If the property isn't marketed well or advertised to reach the right audience, it can fail to attract enough buyers, leading to the listing expiring or getting a lower price than what the seller was aiming for.
💡Pro-Tip: Get a clear sense of how your agent's marketing plan for your home. Ask the "W'' questions: when, why, what, how many people, etc. If the marketing is dialed in, you will know if the home has been slightly overpriced if it is looking great and shown to tens of thousands of people online.
- Property condition: Issues like hidden flaws, lack of maintenance, or unresolved problems can discourage buyers from making offers, causing the listing to expire without a sale.
💡Pro-Tip: Plan 6-12 months in advance if possible. This extra time can help as there may be cheaper "fixes" than you realize that can go a long way. As "home condition" can also be something as simple as a fresh coat of paint, landscaping, decluttering or better organizing your things and space.
- Limited buyer interest: Even in a hot seller’s market like today’s, there may be fewer buyers looking for properties in a particular area or for a specific type of property for the price the seller is willing to accept.
💡Pro-Tip: It is important to understand the "unknowns vs. knowns" here. This is where communication with your agent and understanding the market is important. Good questions to ask include: "How many comparable homes as mine have been sold in the last 3 to 6 months? How long were they on the market for? What was the sale price? Is there a particularly unique feature about your home compared to these previous ones that could turn off buyers?"
- Seller inflexibility: If there are known issues with your home, it wouldn't be unreasonable for a buyer to ask about repairs or compensation when they submit their offer. All different factors have to be taken into consideration and certain requests may need to be negotiated to get a deal done.
💡Pro-Tip: Be honest with yourself about what your home is offering in terms of price, location and condition. On the flip side, what may it be lacking? If the home looks great and is located in a desirable area, that doesn't mean there is no limit to what someone would pay for it.
It was my great pleasure to list our home with Khoa & her team of her husband and brother. They were able to get us the best record price in our area, which is a great help towards our new home purchase.
Being a parent with 2 little ones at home, I greatly appreciate the help with renovation, staging and the closing process. It was so well done that we got 5 multiple offers with no condition and short closing time.
I strongly recommend Khoa and her team.
- Vi Ngo
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