Don't get stuck with two homes or worst
NONE! Common mistakes to avoid when selling on your own.
a replacement home before selling the old one.
The temptation may be great to buy
a replacement home first. That way
youíll know where you are going, how much youíll be paying, and you wonít
have to worry about being left out in the cold with nowhere to go if your home
However, the financial risks of buying first are great.
Itís far better to sell your current home first and put a contingency
in the contract that will let you stay in your current home until you find your
new home. Or you may decide to move
to an interim rental and take your time looking for your new home.
the list price of your home on the price you would like to get rather than
on market value.
Market value determines the price of your home Ė not wishful thinking.
A buyer wonít pay more for your home just because you think you need
more money in order to purchase your next home.
Find out the market value of your current home by having a local real
estate agent Ė (like Karen Archambault for example) prepare a comparative
market analysis or by getting an appraisal from a local appraisal firm.
This will tell you the value of your home based on comparable sales
information. With this information
you can determine an accurate list price for the current market value.
After you know what your home is likely to sell for, ask your
agent to prepare a net proceeds estimate.
It will tell you approximately how much cash you will receive from the
sale. Then visit a mortgage officer
or loan agent to get pre-qualified for a mortgage.
This will let you know what price home you can afford to buy.
to disclose known defects.
Sellers know the condition of their home before they sell and need to disclose
any known defects with the property to the buyers before they make an offer.
These disclosures should be in writing before signing a Purchase and Sales
agreement. This is very important to
avoid future lawsuits against you.
a home on the market before it is spruced up.
Buyers remember what they see.
first impressions are lasting ones.
a property looks a mess when it hits the market, that is how buyers will
Most people lack the vision to
imagine what the home will look like when itís fixed up.
Itís usually better to delay marketing a home until itís spruced up
to reduce a listing price that is too high for the market.
Itís hard to be objective about the value of your home.
This is why itís important to get a professional opinion before setting
a list price. Over priced listings
often take a long time to sell. Then
they often sell for less than they would have if they were priced right to begin
with. Itís natural to want to get
the most money possible when you sell.
pricing is the way to achieve that result.
you find that your list price is too high for the market, reduce your price
sooner rather than later. The longer
it sits on the market unsold, the lower the ultimate selling price is likely to
to counter a low offer.
Sellers want to sell high; buyers like to buy low.
A low offer from well-qualified buyers is better than no offer at all.
A high offer form unqualified buyers only leads to disappointment.
The price buyerís offer is not the most important part of their offer
Ė if they are willing to negotiate.
on being present when the home is shown to prospective buyers.
One way to discourage buyers from buying your home is to be home during
showings. For buyers to decide to
buy a home, they first must discover, and discuss, all of its flaws.
Buyers are reluctant to say anything negative about a home in the
sellerís presence. Itís best
to leave your home when itís shown to prospective buyers.
testing for Title V before listing.
Sellers often do not test their septic system before putting the property on
the market. This causes problems
later if the system fails and the seller expected it to pass or if the system
fails and costs more than the seller expected.
Once you know what the expenses will be then you wonít have
unexpected expenses later on.
to do anything to get your home ready to sell.
The way most people live in their
homes is usually very different from the way a home should look when it goes on
the market. In order for someone to
want to buy a home they must be able to envision themselves living there.
Most sellers have to de-clutter and clear their homes Ė at the very
Often there is quite a bit more
that needs to be done before home is ready to sell.
In order to get the highest price possible when you sell a car, itís
wise to have it cleaned up first. The
same applies to selling houses. Buyers
pay a premium for homes that are in move-in condition.
on your own will save you money.
Homes that are sold Ďby
ownersí are usually sold for less than homes that are sold with professional
Real Estate agents. This is because
agents have more buyers that are pre-qualified than a Ďby ownerí ad can
produce. Also the buyers are
expecting the homes to be lower in price because they know you are not paying a
commission. They expect your home to
be cheaper because they can either use a real estate agent (at no cost to them)
Another reason is that the buyers are usually not pre-qualified with a bank and
at the end find out they qualify for less.