Sooner or later, most homeowners will be in a position to sell their home. This report summarizes the top five mistakes that home sellers make, simply because the experience is new to them.

Mistake #1. Taking the “Test the Market” Approach

Plain and simple, 2009 is no longer 2006 or 2007. The pool of ready, able and qualified buyers actively buying has dwindled.  For sellers this means a number of things but most importantly it means that if the house isn’t priced to sell, the owners are in for a long and bumpy ride. If a house is not priced appropriately for the current market, its simply a listing – a house that will sit on the market for months destined for numerous price reductions.

The current market is full of “Listings.” There are the large number of houses that are For Sale but are not priced To Sell. Most often the owners are playing the game of “Test the Market.” Ironically, an overpriced listing will usually end up selling for less than it could have sold for initially had it been priced at market value in the first place.

On the flip side, those who are committed to the process of doing whatever it takes to sell a home are more aptly “Sellers.” Sellers listen to the advice and recommendations that they are given. Sellers are willing to take an active role in helping to sell their house. Sellers are willing to make the sacrifice to make sure the house is staged & presented in its best light. Sellers are willing to step outside for a 20 minute walk when someone calls to see the house on short notice.

Experience shows that there is always a market for houses that are well taken care of, in good areas, and that have sellers who are committed to do what it takes.

Mistake #2: Pricing based on Active Listings instead of Recent Sales

Truth of the matter is, what the house around the corner or three doors down is currently listed for has little or no bearing on what your house is worth – period.
Mistake number 2 that sellers make is paying more attention to what other active listings are priced at rather than what the last 4-5 comparable houses actually SOLD for. Until a house sells, it’s nothing more than a listing and most listings are overpriced.

Are other listings in the neighborhood competition? Maybe, maybe not. It depends on if they are priced competitively. It depends on where they are located, upgrades, amenities, seller’s motivation level etc…. It is your Realtor’s duty to help you determine which houses are your direct competition and which houses are not.

Prior to listing a house for sale, I make an effort to tour the closest active competition and make comparative notes. I welcome the home owner to join me in this process. It is important to be educated about the other homes for sale in your area. (If your Realtor is not doing this, he/she is doing you a disservice as a seller).

A buyer who enters your neighborhood to view your house is most likely going to look at others of similar size and price. If they like the neighborhood, they will probably choose between 2-3 and yours better be on that list.

It is equally, if not more important to research and study the most recent sales in the neighborhood, paying special attention to list price to sales price ratio, days on market, levels of inventory, as well as upgrades and location of houses that are selling.

There are numerous other variables that factor into an accurate market analysis that I will no go into here. Pay more attention to Sold data and you will be a happy Home Seller – not just a Listing.

Mistake #3. Not Appreciating the Buyer’s Point of View

Unreasonable though it may be, a prospective buyer would like to see a perfect home from top to bottom and inside and out. Buyers take mental deductions as soon as they see something about the home that they will have to either repair or replace altogether. Just because it works for you, doesn’t mean that it works for everyone else.

To maximize the potential of a fast and profitable home sale, make sure to attend to the following items:

On the outside
1. Sweep the front walkway and enhance the front entry.
2. Remove bikes, toys, trash receptacles and lawn equipment.
3. Park extra cars away from the property.
4. Trim back the shrubs and low hanging tree limbs.
5. Apply fresh, clean paint on your home, wooden fence, and outbuildings.
6. Clean windows and window coverings.
7. Maintain sprinkler systems.
8. Maintain sealants around windows and doors.
9. Make sure roof and gutters are clean and in good condition.
10. Mow & Edge the lawn frequently and plant flowers.
11. Keep pet areas clean.

On the inside
1. The kitchen and bathroom should look and smell clean.
2. Vacuum rugs and carpets (and have them professionally cleaned, if necessary).
3. Put away dishes, unless setting a formal display for decoration.
4. Make all beds and put away clothing.
5. Open drapes and turn on lights for a brighter feel.
6. Straighten closets.
7. Put away toys.
8. Keep pets secured & out of the way and pet areas clean and odor-free.
9. Secure jewelry, cash, prescription medication and other valuables.

Mistake #4. Failing to Maximize the Appeal & Accessibility of the home.

If my experience as a Realtor has taught me anything, it’s that I have to be flexible.

A buyer client may send me a list of ten homes the day before that he/she would like to see on a given Saturday only to call back early Saturday morning to add two more and delete numbers 4 and 10 – after I’ve already made arrangements with the home sellers mind you. I have to make adjustments on the fly because this may be the only time in the next week that we can get in to see these houses.

And guess what sellers? You need to be flexible too. This means the willingness to be out of the house with 30-45 minutes notice. This means that if a buyer happens to be in the neighborhood looking at another house, picks up a flyer from your sign and wants to see the house right then and there – step outside for 15 minutes or go take a walk.

Bottom line is when you put your house on the market for sale; you lose the right to be inflexible. That is if you want to sell quickly. All it takes is one buyer to fall in love with the house and if you knowingly or unknowingly deter that buyer from seeing the house, you may have lost a potential sale.

The same holds true for only showing the house “by appointment with owner” and failing to secure pets for showings. If you make it difficult for buyers and agents to see your house – welcome to days on the market.

Make things easier on buyers and you will make things easier on yourself. After all is said and done, its much easier to live in your house while it’s for sale for 45 days than 4-5 months.

Here is a Free Report on how to prepare your house quickly for last minute buyer showings.

Mistake #5. Getting emotional about the house & the sales process

Perhaps the most costly mistake that sellers make is becoming too emotionally invested in the home sale process. Once the sign goes in the front yard, all decisions regarding the house should be made on an impersonal investment level and not an emotional level.

“I paid $_____ for that upgrade, don’t they know what its worth.” The buyer may or may not know what it cost you to install (fill in the blank) but it may not be something that is valuable to them. Upgrades and additions to your home are sometimes taste specific and you cannot count on getting a dollar for dollar return on every home improvement you make.

“The house hasn’t been listed long enough to accept an offer.” And, “We obviously listed the house too low if we got an offer already.” These are two of my favorites. The point of listing the home for sale is to sell the home. If I were selling my home, Id rather sell it for full price on day 5 than day 35. When a seller receives an offer early on in the sales process, it means that the home was priced right and in demand. Trust me when I say that coming to an amicable agreement for sale early on in the process benefits everyone involved.

“We aren’t even going to even respond to that offer.” Lowball offers are one of the most sensitive issues with sellers. The fact of the matter that is that in real estate, like every profession, there are professionals and there are amateurs. Amateur agents are either not skilled enough or confident enough to advise their buyer clients on how to present appropriate offers. Couple that with the current misconception amongst buyers that prices are falling and you have a recipe for the occasional low ball offer.

The most important thing to remember in any offer situation is that it’s a negotiation. Sometimes a buyer will submit a low offer to try and gauge seller motivation. You should respond to all offers one way or another. If your Realtor has done his/her job in educating you about the market activity in your neighborhood then you should have a very good idea about the value of your home. Therefore, you negotiate from a position of confidence that a qualified buyer will come along in the near future. However, if lowball offers become the norm and not the exception, it might be time to reassess your asking price.

Download this free report in pdf:  Top 5 Mistakes Sellers Make and How to Avoid Them