7 Mistakes to AVOID when Selling your Home!

Mistake 1. And the biggest mistake, is overpricing your home. While it is tempting to test the market, the results have proven again and again that the homes priced right sell fast at the best possible price. Overpriced homes take much longer to sell and often sell at much lower price. While it OK to price a little higher in a market where the prices are going up (as the market will eventually catch up), it is a huge mistake to price higher in the market that is going down.

Mistake 2. Choosing an agent who suggests higher list price just to get the listing. Sellers make this mistake often (and I did too when I was a seller and not an agent then in 1988). We interviewed 3 agents - one told us to list for $159,900, the other $164,900 and 3rd at $199,900. Ofcourse I loved the agent who gave us $199,900 and we listed with him. One year later, we sold our home for $153,500. Only if I had listened to the agent who showed me the comps and suggested the price based on those. I could have sold my home much faster at a much higher price.

Mistake 3. Not having the option to fire your agent if he/she doesn't perform as he/she says or if they don't guide you as needed to sell your home. Infact, we suggest that this be a MUST. Don't hire anyone who won't offer this guarantee. And we suggest that you go a little further - you should have the unconditional right to terminate the listing if your needs change.

Mistake 4. Not preparing the home for sale. Your home must look clean and smell good otherwise many buyers will be turned off. Not only do you risk loosing the sale, you also invite much lower price.

Mistake 5. Not disclosing any known defects in the home. This can not only terminate the sale after inspections, it can also cause lawsuits after the sale.

Mistake 6. Hiring an inexperienced agent. There is lot a good experienced agent brings to the table. It is not just about finding a buyer, it is handling the whole deal including negotiations, inspections, etc.

Mistake 7. Hiring an agent who offers the lowest commission. We have all heard, we get what we pay for. Don't miss out on a good agent to save a little on the commission. This little saving can actually hurt your bottom line when it is all said and done.

This advise has been brought to you by the professionals at On Track Realty in Edison, NJ. http://www.ontrackrealty.com/. For any questions, please feel to call us at 732.494.2211.

Dangers of Overpricing Your Home!

Overpricing Can Be Costly!

While it is tempting as a seller to ask for the highest price possible (been there, done that), we suggest that you be very careful in pricing your home. The fact is, the homes priced right usually sell for the best possible price. While pricing high may be OK in an appreciating market, it can be the worst decision you can make in a declining market. Here are few reasons why you must not price your home wrong:

You will lose the excitement/momentum that a new listing generates: Real estate agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects: Buyers won’t be able to “make an offer” because they probably won’t see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above their price range.
Overpricing helps sell other, more competitively priced homes first: Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.
Your home may become stale on the market: Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.
You lose a strong negotiating position when your house is on the market a long time, both financially and mentally: Prospects will not “rush” to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do.
If you do get an offer, the contract may fall through because of appraisal problems: The lender must justify the price to the market. So even if the buyer pays the price, the lender may not approve the mortgage because of the appraisal.

As you can see, there are many reasons why you should price the home right. Don't choose an agent who is trying to buy your listing - by giving you an unrealistic listing price. This one mistake can cost you thousands. Always price your home logically, not emotionally.

Call the professionals at On Track Realty at 732.494.2211 to discuss your real estate needs. We promise to give you an honest evaluation, even if it means losing your business. We would rather turn down you business upfront by being honest instead of taking your listing and letting you down later. http://www.ontrackrealty.com/