We’re thrilled to be back with another real estate post today, and thought we’d tackle this little topic: Ten mistakes sellers make when listing their home: part 2! {Pssst… Don’t miss part 1 here where we cover more pitfalls to avoid.}
If you’ve been keeping up with our series, we’ve covered the state of the housing market, and should I stay or should I go. And now we’re talking about ten mistakes sellers make when listing their home, just in case you’re interested in making that next move. We want to help you navigate the process by looking at ten mistakes to avoid when listing your home.
This post turned out to be a doozie, so here’s part 2!
6. Ten Mistakes Sellers Make when Listing Their Home: Showings
When you list your home for sale, you’re agreeing to make it available to prospective buyers. I’m shocked when I hear realtor friends talk about how their clients are being difficult when people ask to see their home. That’s the name of the game. The best way to think about this is at the moment that sign goes in the yard, you are at the mercy of the future owners, whomever they may be. It’ll be inconvenient, hard, and downright annoying sometimes {trust us, we get it – kids and pets can make it even that much more difficult to keep it clean and get out quickly} but showings are the name of the game.
Homeowners that aren’t flexible are the least likely to sell their home. Be flexible, at least as much as possible. It’ll be hard, but this showing might also be the one that sells your home!
7. Ten Mistakes Sellers Make when Listing Their Home: Contracts and Fine Print
As we mentioned previously, there’s a process. Part of that process is the contract for sale. While most of that contract is a standard state-approved form, there are a host of ways to sneak things in for the advantage of the other party, which is completely legal and binding.
Again, if you want to brush up on real estate law and real estate sales tactics, more power to you. But this is the largest purchase or sale you will make. Is it worth it?
Let me give you one example that’s legal, and can actually put you in a bind. Let’s say someone offers on your house and it’s the best kind: a full-price cash offer. There are no inspections or any other types of contingencies other than a financing one and they’re cash, so there is no financing. They even waive an appraisal contingency. Perfect! What a lovely offer.
You find your new house, make an offer and begin the process of relocating. You pack, you hire movers, the whole 9 yards.
However, {insert cringe} several days before you are set to close on the home you’re selling, the buyer’s realtor calls you and says they’re canceling the contract due to the financing contingency and request their earnest money back. Record screech. You’re confused. They aren’t financing, it’s a cash offer, and they can’t cancel on you. And better yet shouldn’t they have to prove there is a financing issue?
Here’s the deal: if they were taking a loan, then yes. The loan officer, at the risk of his own license, would have to prove that the buyer cannot meet the obligations to obtain a loan for the purchase of the home. However, in a cash offer with a financing contingency, the buyer can simply say, oh sorry I need to reallocate these funds somewhere else. End of story.
They don’t have to prove anything. Maybe they just found a better house. And now you’re left high and dry. Wasted time and wasted money and it’s completely legal. Contracts and fine print matter so you don’t get screwed.
8. Ten Mistakes Sellers Make when Listing Their Home: Dealing with a Buyers’ Agent, Negotiations
First, let’s establish this: the buyer’s agent doesn’t work for you and does not work to preserve your interest in a transaction. It’s their goal to get the best legal deal on the property for their client. As demonstrated above, they know the rules of the game. This is not their first negotiation and they’ll make the sale as advantageous for their client as possible.
Secondly, are you ready to deal with all the calls and requests that will come from the buyer or the buyer’s agent? It can be a lot. Trust us.
9. Ten Mistakes Sellers Make when Listing Their Home: Contract to Close
Again, back to that process thing. We obviously can’t cover it all here, but mistakes in the contract can cost you money. And lots of it.
Are you ready to do all the necessary follow-ups to make sure the deal is moving along as it should, in the order that it should, and that nothing is hanging it up?
If additions or amendments need to be made to the contract, do you know what can and can’t be done or even how to do it and the order to do it?
10. Ten Mistakes Sellers Make when Listing Their Home: Picking a Realtor
Maybe this one should have been first, but I felt the value of a realtor should be established before I tackled this one. Here’s my best suggestion for picking a realtor: pick them just like you would pick a friend.
Pick one that you know will have your best interest in mind, and will fight for you. Pick one that isn’t afraid, to tell the truth. {This one is hard to come by.}
Pick one that you trust. Trust is the most important thing and I am shocked by the number of people who don’t place that as a high value.
Just last week, I {Jamin} was showing a particular home for the second time and I told the couple to let me watch their kids so they could take their time. The kids (3 and 2) and I had a blast in the yard for a good hour and a half when a neighbor came out and mistakenly took me as the father looking at buying the house. When I explained I was the Realtor, he was shocked and said, “man, they must really trust you”.
Trust is number one in picking your agent. Don’t get bamboozled by the awards they assign themselves. Know they’re honest, and they care about you, your family, and your needs… and will help you achieve them.
___________
We truly hope you’ve enjoyed our little post today and that it helps if you plan to list your home on the market any time soon. {Don’t miss part 1 here + the entire series, here!}
Be sure to check out more of our real estate posts here. Contact us here to work with us + here to talk all things renovations! Have an inspired day!
Leave a Reply