If you are looking to sell your house, there are several traps to avoid in order to remain “financially savvy” about your real estate situation. On that note, Realty Times recently published an article on the Top 5 things that “seller’s haven’t learned and keep paying for.” Below is a summary of these pointers:
1) Time Marches Forward, Not Backward
Sellers fall into this trap when they expect the price of their house to return to the pre-recession/real estate boom price. Here, an understanding that time moves forward, not backward, is key. There is no real estate boom on the horizon anytime soon. You need to look at what comparable houses are actually selling for in today’s market when setting your expectations.
An important consideration here is that as time moves on, your house becomes older and more outdated. This will ultimately result in a “renovation discount” on your house’s value as they buyer will want to modernize the property.
Renovated houses that are brandy new and shiny throughout sell quickly, while outdated houses sit on the market.
2) Your Wants Don’t Override a Buyer’s Demands
Selling a home can be a stressful and emotional transaction, and sellers can oftentimes personally react to perceived insults when buyers offer a certain price or ask for certain repairs to be done.
It is important to understand that as a seller you are ultimately engaging in a business transaction involving the sale of real estate, resulting in a legal contract. You should therefore think rationally about he process, not emotionally.
As a seller you must “detach” emotionally from your house and think of it as an investment that must be managed for the highest return.
3) Stubbornness is Not a Winning Strategy
This often ties into #1 above. Refusing to consider actual real estate statistics such as current sales, current listings, expired listings, and professional advice will contribute greatly to your failure in selling your home.
Ultimately your house is worth what the market dictates – in this case, what a buyer will actually pay for it.
This also goes for being stubborn about how you show your home, such as any repairs that need to be made or personal items that need to be removed.
Think of it this way – you are NOT selling your home; rather, you are selling the buyer on buying THEIR home.
4) Paying for Something Valuable That You Don’t Use is a Waste
Real estate professionals – Realtors, Brokers, Appraisers, etc – are entrenched in the real estate business on a day-to-day basis. Their services and expertise are critical to your success, and they don’t come cheap. They also guide you through all of the legal elements of selling real estate.
This is but a subset of the value available in exchange for a real estate commission. If you don’t listen to such advice or don’t ask questions about things you understand, you are shooting yourself in the foot. It is best to use all of the professional services that are including in the fees you are paying.
5) Ignoring the Obvious
Purchase price is often considered the “Big Thing”, but is actually one of several elements in a buyer’s offer that represent value to the seller.
Other examples of considerations include how quickly the particular buyer can close and how many repairs or additional items such as appliances the buyer requests. Contingencies are a VERY big deal. For example, is the offer contingent on the buyer obtaining financing or is it a cash offer? Is the offer contingent on the buyer selling their house first? (watch out for that one).
Any one of these considerations could lead to a lower price offer being superior to another higher price offer. It is important to compare offers in their entirety for this very reason.
We hope that the above pointers will save you much time, stress, and even money as you pursue the sale of your real estate.
By the way, if going through the hassles of selling your house the traditional way isn’t for you, we may be able to help you with a quick sale. We don’t ask for picky repairs, and we can close on the date of your choice. Call us at 205-390-1050 or submit your house information at www.WeBuyBham.com.