Common Vendor Mistakes

1. OVER CAPITALISING

It's not uncommon for some sellers to spend thousands of dollars, needlessly, in an effort to upgrade, prior to sale.

They do this, in the belief that it will add heaps to the value of the property, resulting in them recouping their outlay tenfold is misguided. By all means apply a little TLC, if need be, but there is no need to go overboard.

To upgrade for your own personal comfort and enjoyment is fine, but, from a resale value perspective it pays to understand that only certain types of upgrades and revamps are cost effective.
Consult your chosen real estate agent PRIOR to carrying out an upgrade if you are thinking of selling.

2. SIGNING UP WITH AN AGENT WHO IS PREPARED TO BUY YOUR LISTING

The stronger your selling motivation the greater the chance that an agent is going to "buy" your listing. The best rule of thumb is to list with an experienced agent, one with an established track record and a good marketing plan to sell your home.

3. BEING UNREALISTIC WITH YOUR ASKING PRICE

Don't base the asking price on other than current market value. Very often vendors base their asking price on how much they paid for their home, or how much they have spent on it since. This can be an expensive mistake and not relevant.

If you don't price your property competitively, your home -

* will not stack up against its opposition in that price range,

* you will miss buyers in the range it should have been in, and worse

* your marketing will have no momentum and agents will be unable to create any urgency about your home. All buyers want to know "how long has this home been on the market?"

The result is increased marketing time, and when eventually the price is lowered, buyers are wary because they suspect that there must be something wrong with your house as it has hasn't sold for so long.

To over-price your home is to take a risk - you are trading the hope of a quick above-market price with the increased risk of a lower than otherwise price. Every seller is entitled to gain as much money as possible from the sale of their home, but a listing priced too high is more likely to sell for less than otherwise, because of time on the market.

4. A FAILURE TO "SHOWCASE" THE HOME

A property that is not clean, well maintained or presents poorly is nothing short of the "Town Crier" shouting to your buyers "be careful." It is like sending out a warning signal to buyers that there could well be hidden defects in the property; ones that could mean big bucks to rectify.

Vendors who fail to carry out necessary repairs, and who fail to maintain the general upkeep of the home both inside and out, quite often chase away buyers as fast as the real estate agent brings them in.

5. FAILURE TO TAKE THE FIRST OFFER SERIOUSLY

Your home is at its most saleable point early in the marketing period; the amount buyers are apt to offer diminishes with the length of time a property has been on the market.

6. AVOID USING THE "OVER SELL" APPROACH

Buying a home is an emotional decision. Potential purchasers like to walk about freely and relatively unhindered. This allows them to get their own feel for a place; they like to gauge the property to see if it is just right for them when viewing.

You, the seller, following them around the house, pointing out and emphasising every little home improvement you have made does nothing more than create nuisance value.

A good real estate agent tends to let the house sell itself. It's best if the vendor stays right out of the picture; and the agent lets the potential buyer roam free to discover the good points of the house, with the agent highlighting any special features the house may have.

Many sales are lost by adopting the 'Oversell' method. You saw fit to enlist the services of your chosen real estate 'expert', leave the selling of your home to them! 

Article Source: http://EzineArticles.com/?expert=Neil_Handley

About the writer -----------------------------------------------------------------------------
Neil Handley graduated as a Bachelor of Economics and Accountant. After some 20 years as a stock broker Neil turned to property development. He then acquired a controlling interest in a property development company listed on the stock exchange and became CEO. He has been involved in developing residential subdivisions, industrial subdivisions,shopping centres, office buildings and medium density residential dwellings in Sydney's north shore, Northern Districts, Parramatta and Liverpool areas and on the Gold Coast, Queensland. One office building was sold to the AMP for $25ml. Neil's company advises on building wealth via property.
Go to  http://www.specialstrategies.com  .


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