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HOW TO AVOID THE 10 MOST COMMON SELLER MISTAKES SELLERS
Category Market Advice
Property transactions are lengthy and convoluted processes peppered with potential pitfalls and, whilst minor errors mistakes are unlikely to cause more than annoyance, many can be costly and they can cause delays or even scupper the deal entirely.
And regardless of market conditions or reasons for the sale, divesting of what is probably your largest investment is a big decision and it's important to get it right.
Our homes are also our sanctuaries; it's where we raise our families, celebrate milestones and create memories and it's understandable that sellers have strong emotional attachments but in order to achieve the best possible returns with the least amount of stress, sentiment needs to be put aside as emotional decisions are seldom the wisest.
It's also worth bearing in mind that, these days, buyers are not only spoilt for choice, they are also more knowledgeable than ever before, so sellers should also do their homework and make sure they understand the process and what is expected of them before embarking on the transaction.
Research and making informed decisions will enable them to avoid the following common errors that sellers often make:
- Not hiring an agent
During tough economic times, every cent counts so it's completely understandable that, in order to maximise returns from their largest investment, sellers would consider foregoing an agent. However, the truth is that it's during an economic downturn that the services of a good agent are most important.
There is a lot more to selling a home than taking a few photos and listing it online and, statistically, properties without representation remain on the market for considerably longer which usually results in a sale for a lower price than would have been achieved in a quicker sale.
There are also a multitude of potential pitfalls to navigate and failure to circumnavigate them could turn out to not only be very costly, but also jeopardise the sale. - Hiring the wrong agent
That said, an inexperienced agent or one who doesn't have the reach and market knowledge of your area could do more harm than good, so it's essential to find an agent who not only has the necessary expertise but is also the right fit for you.
In doing so, not only are you likely to sell your home faster and at the best possible sale price, your agent will also guide you along the way and make the selling process much less stressful.
The best way to find the right agent is to determine which agencies are most active in your area and to then interview agents from those agencies. Ask questions about their sales records and experience, how they arrived at your home valuation and how they plan to market your property. - Not doing your homework
In order to price their home correctly and to be able to work closely with your agent for optimum results, sellers should familiarise themselves with the current market, especially in their area. Find out what homes have sold locally during in the past 12 months and look at what homes currently on the market are listed for so that you have a good ballpark idea of a realistic sale price.
And if you plan on doing upgrades before listing your property, make sure that what you plan to do is currently popular and will, in fact, add to the value of your home so that you don't overcapitalise or waste money. - Overpricing your home
Listing your home for the highest possible price may seem like the sensible thing to do as we expect buyers to negotiate it down, but unfortunately it doesn't work that way. An accurate evaluation is always the best evaluation.
It is critical to price your home correctly right from the beginning because when buyers have as much choice as they currently do, they look for good value for money and will usually opt for a similar home at a better price. The buyer for YOUR property will not engage in an offer if he falls hopelessly short of what looks like your expected price. If your home spends too long on the market, potential buyers will begin to wonder what is wrong with it. - Not preparing your home for sale
First impressions really do count. Declutter and de-personalise as much as you can and make sure you fix any visible issues that could detract from your home's value like dripping taps, chipped paint, broken window latches and many other small issues. A bit of advice from Odendaal, go through your property with a bit of a critical eye and see if you can illuminate smaller issues which creates obvious objections to be making an offer.
And don't neglect kerb appeal as this is where first impressions are first formed. Always tidy both the garden and the entrance to your property to maximise that all important first opinion of your home. - Leaving compliance certificates until the last minute
Property owners are required by law to ensure that the property is legally fit for sale and before transfer can take place, the transfer attorney must be in possession of the relevant compliance certificates.
These doesn't take long to acquire if all is in order but, if problems are discovered, they must be repaired before you can receive the relevant certificate. This not only adds to your mounting costs, it can also delay transfer or even scupper the deal if left to the last minute. - Underestimating the costs involved
These can mount up quickly and it's important to know what you're in for before you start the process. Over and above the cost of sprucing up your home to get it ready to sell, you must factor in costs such as compliance certificates and possibly repairs to achieve compliance, the conveyancers fee and municipal clearance. Talk to your agent about this. - Being inflexible about viewing times
Yes, it can be very challenging to keep your home pristine and have strangers traipsing through it at inconvenient times whilst already juggling a busy work and a full family schedule.
Bear in mind that buyers also have full schedules so the most convenient time to view will be after hours and if your home isn't available to view then they will look at - and possibly buy - other homes instead. - Antagonising potential buyers over minute details
If the buyer really likes your chandelier and it's not a beloved family heirloom, it's probably not worth losing the sale to keep. If there are any fixtures or features that do have sentimental value and that you absolutely don't want to leave behind, tell your agent before the property is listed. Might be a good idea to replace before the time to illuminate difficult negotiations.
If you feel like buyer requests are unreasonable, don't create more drama. Rather talk to your agent and settle on a reasonable alternative or compromise. - Moving out before the house is sold
Studies have shown that it is more difficult to sell a home that is vacant because it's much harder for buyers to imagine it as a family home when it's devoid of all that makes a house a home.
Buyers will also be inclined to think that since you already have a new home, you're probably highly motivated to sell fast which will give them the advantage at the negotiating table.
"Every buyer wants to sell as quickly as possible for the best possible price, but sometimes their actions can actually result in the opposite outcome," says Odendaal.
"So, before you take the plunge, do your homework, familiarise yourself with the process and seek advice from experts who are willing and able to offer guidance."
Author: Lew Geffen Sothebys International Realty