7 Mistakes Sellers Normally Make

Mistake No. 1: Basing your price on how much you paid


Even in lackluster markets, homeowners can't help but hope they'll make a big profit when they sell—and that's why many nudge their price ever higher, regardless of real-world demand.  But the harsh reality is this: Buyers could care less how much you paid. All they care about is getting the best deal possible in today's market—and if you aren't willing to accept that and swallow a potential loss, they'll take their money elsewhere. Another thing buyers care not a whit about: how much you owe on the mortgage. So, sadly, that shouldn't factor into your asking price, either. It's a cruel world. We can only deal with it.


Mistake No. 2: Expecting to get reimbursed for renovations


So you overhauled the kitchen or put a swimming pool out back, and it cost you a bundle. It's logical to think that you can pass that entire expense along to buyers who'll be enjoying the fruits of your labors. Right? Well, not exactly. Remodeling projects offer an average 62% return on investment, according to Remodeling magazine, which is why it’s a good idea to skip major cosmetic remodels right before a sale. This is particularly true if you've got expensive or special tastes that buyers might not share. Please check our renovation tips.


Mistake No. 3: Leaving too much room to negotiate down


The days of extreme lowball offers have gone the way of fax machines, Atkins diet plans, and jeggings. So pricing your property too high—thinking you'll leave prospects with plenty of room to negotiate—may quickly scare away legitimate offers. Plus, buyers who search for homes online (translation: pretty much all of them) often screen by price, so they may not even see an overpriced property.


Instead, aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.


Mistake No. 4: Not shopping your competition

While you might assume your home is more or less the same as others on your block, small differences can add up to big discrepancies in price. That extra half-bath in the home next door or that fireplace in your living room should all be taken into account. Home sellers need to understand the positives and negatives of their house and price accordingly .So spend some time perusing local listings and attending open houses to figure out how your home stacks up. We always take our clients to visit competition’s listing.


Mistake No. 5: Basing your home on a neighbor's asking price


Just because your neighbor is asking for a certain price on his property doesn't mean he's going to get it. And it may not be due to delusion, either. Those properties may sit on the market for a long time.


A far better benchmark if you want to sell your home is to look at the prices on recently closed sales.  a comparative market analysis will give you a better picture of where home values are going in your neighborhood.


Mistake No. 6: Getting emotionally involved


All sellers think their home is worth more than it is. All of them. Pricing your home should never involve emotion to start with. Often sellers will say “I raised a beautiful family in the  house” “well that home doesn’t have an extra shed or big tree”, or” I don’t like neutral color on walls ””I don’t like the taste of the house just sold down the street,” or” I love carpet better than hardwood floors in family room”, “I like a shower better  than a tub”, “I don’t mind the noise from the highway”.  


Your home, great as it is, is only a product for sale when it is on the market. Buyers look at the whole market when buying. They consider all factors like renovations, age, size, location, etc. They will NOT pay a premium for the items you like, some items in their eyes even defects.


Mistake No. 7: Sale prices are based on what owners need. 


When an owner says, "I must sell for $1,000,000 because I need $400,000 in cash to buy my next home," But buyers only cares whether $1,000,000 is a reasonable price for the property. If similar homes in the same community are selling for $950,000, the seller will not be successful.

 

 

 

www.haltonhousevalue.ca

www.teamhandinhand.ca

416-888-5108

info@teamhandinhand.ca

RE/MAX ABOUTOWNE

1235 North Service Rd. W. Suite 100, Oakville, On, L6M 2W2

Beds (Min)
Any
1
2
3
4
5
Baths (Min)
Any
1
2
3
4
5
Priced between $ & $