Whether you’re selling your first home or your 20th, it’s crucial for you to know the common (and not so common) mistakes that sellers make that often cost them money. Below is list of seller mistakes while your home is for sale.
1. Not leaving your home for showings
We understand the fear. It’s your home and you’re nervous to let strangers wander through without your supervision. Remember that a licensed and insured Realtor will escort any buyer viewing your property. It’s important to reduce the nervousness about this since there is a vital reason you should not be there. Buyers need space to themselves so they can picture themselves living there. If you stay, they will always feel like guests in someone else’s home. They will hesitate to open closet and cupboard doors, and they will probably leave more quickly than they would have if the house had been empty. All of this reduces the chance of a sale.
2. Not disclosing latent defects to the buyer
A latent defect is a problem with the home that is not easily found by a buyer or inspector. Examples could be a cracked foundation wall that’s been covered with fresh drywall, persistent water issues in the basement or attic, hidden electrical or plumbing hazards, etc. If you know about these things, disclose them. It’s best to disclose these at the earliest opportunity but be sure to do so no later than the offer negotiations.
If you don’t disclose, the buyer can come back years later and sue.
3. Not allowing a “For Sale” sign
We wrote an article on why it’s best to allow a For Sale sign, Be sure to check it out!
4. Not hiding or removing personal or expensive items from sight
In our experience, it’s very rare to have items go missing while a home is for sale. Unfortunately, though, it could happen. To avoid disappointment or financial loss, it’s best to move sentimental treasures, sensitive papers, and expensive items to a safe place during showings.
5. Not adjusting to the market and other properties that list while yours is for sale
This can be tricky. Buyers are comparison shoppers, they look at all the properties on the market and gravitate toward the home that offers the most value. In our current market, listing at a low price and holding off offers attracts the most buyers and can pull attention away from other properties listed at market value or above. As a seller, it’s wise to monitor all the new listings that come to market while yours is for sale. Failure to stay tuned in can result in new listings pulling attention away from your home. If this happens, you can make adjustments to regain attention.
6. Warranting, or even insinuating, that an auxiliary apartment is “legal” or rentable when it’s not
Without a doubt, basement apartments have gained massive popularity in Hamilton in recent years. These apartments are popular with investors and buyers looking to cover the increased cost of owning a home. Sadly, this is where we see many inexperienced agents put their seller clients at risk. If your agent lists anything in the MLS description that suggests that a buyer can “rent out for extra income,” they are misrepresenting the property and the buyers could come back later to sue. For more info on this, check out our article on legal and non-legal second suites.
7 . Expecting buyers to make an offer if your home is overpriced.
In this market, there are few things that will stand in the way of a home selling quickly. Inventory is low and buyers are out in full force. There is one thing that will guarantee many days on the market, though, and that is being overpriced. Buyers in this market have become accustomed to shopping below their budget because they expect to offer above asking. When you price a home too high, buyers assume you will want more than you are asking (and more than they can afford). As a result, they look at properties that are priced more attractively. With direction from an experienced Realtor, sellers achieve a higher sale price by listing slightly lower.
8. Accepting a “bully offer”
This could be the biggest, most costly seller mistake while your home is for sale on the list! A “bully offer” is an offer received from a buyer before the scheduled date to look at offers. It usually has a short irrevocability period and is intended to pressure the seller into accepting quickly. Bully offers exist because some buyers don’t want to wait till the offer date. They know there will be competition. We’ve had 3 recent cases where accepting a bully offer would have meant losing out on BIG money.
- Example 1. We listed a home in central Hamilton for $399,900 and held off offers for a week to allow showings. a few days before looking at offers, we received a bully offer of $420,000. We declined that offer and sold the property for $497,000 on offer night.
- Example 2. We listed a small 1 bedroom bungalow with no basement for $325,000. One day prior to offer night we received a bully offer of $385,000 which we declined. The next day we received 43 offers and the property sold for $495,000.
- Example 3. This example is where a client chose to accept a bully offer. We listed the home for $599,000 and the offer came in at $635,000. Less than two weeks later, a similar unit sold for $700,000.
9. Taking feedback from buyers personally
It’s easy to get offended when someone says something negative about a home you’ve loved for years. Most often, it’s best to take unflattering comments with a grain of salt. but there are cases where listening to feedback can help you. If you notice that there is an issue that comes up repeatedly, it can give you an opportunity to address it and get more offers.
Be aware that comments sometimes arise from frustrations about the market itself. We’ve had buyers who were critical make the highest among multiple offers!
10. Thinking you can “fool” buyers.
It’s never been easier for buyers to educate themselves about the market. In the past, buyers relied heavily on Realtors to share information about sold prices and other important information. Fast forward to 2021 and we have all that information available online. This means it’s more important than ever to be honest and transparent throughout the process.
Other Articles In This Series To Help Sellers:
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