Common Mistakes to avoid when Selling your home
Have you been thinking of selling your home in Ottawa? Don't let avoidable mistakes cut into your profits. Since the average person doesn't sell homes for a living, a professional real estate agent is a vital piece in the selling puzzle. At the end of the day, your home is your investment, so don't let these common mistakes diminish your equity!
Watch the Market!
Timing is everything. If the current housing market is "hot" you stand a better chance of selling your home in Ottawa at the price you want. However, chances are you will be buying in the same market which means you will have to respond quickly to offers and compete aggressively to find your next house. On the other hand, if the current housing market is weak you stand to lose a significant percentage of what you have paid into your home. To get a decent price you may have to spend money to make improvements to your property or offer incentives to compete with other homes on the market. Take advantage of the cyclical nature of the real estate market and if you can, stay put until the market improves.
Don't Overprice!
Even 5% over market value can discourage buyers. Your selling price is determined by the current market and not by an appraisal or what you hope to gain from the deal. If your house is not priced competitively for the current market, people looking in your price range will reject your house in favor of other, larger homes for the same price. In addition, the people who should be looking at your house will not view it because it will be outside their budget. Special Note: If circumstances dictate that you must ask more than your Realtor and the market says is the optimum price for your home, re-evaluate your decision to sell at this time. If possible you should stay put until the market improves or your property appreciates.
Don't "test" the Market!
If you insist on pricing your home higher than the existing market trend with the idea that you can always lower the price you may be sabotaging your own sale. Just asking $2,000 or $3,000 more than market value can mean the difference between selling quickly at a good price and delaying the sale. Keep in mind that leaving your house on the market for a prolonged period can result in additional expenses like carrying costs and upkeep. Ask your Realtor how much bargaining room you should leave in your price.
Don't become a "stale listing"!
The longer your home is on the market the less likely you are to get a full price offer. If a month goes by with no serious offers, do something! Review your price, offer incentives or make some improvements and repairs. Once you've made changes, hold an Open House to announce what you've done to improve the property.
Don't hire Uncle Joe to sell your home!
Hiring a relative is one of the most common and serious errors committed by home sellers. Making this mistake could lead to a much slower sale at a significantly lower price. Selling your home is one of the most important financial transactions you will underake. Having a professional Realtor in your corner can make all the difference in getting the price you want, fast.
Don't get locked into a contract with your Realtor
Chances are you will be perfectly happy with the efforts of your Realtor on your behalf, however circumstances can change. Protect yourself by getting a "guarantee of performance" clause with a right to cancel your contract with your Realtor if you are not satisfied. You must be able to work together as a team to get the best price for your home in the shortest amount of time.
Don't Lie!
Tell the truth! It's natural to be optimistic about your home but it doesn't pay to deliberately misrepresent it. While most sellers wouldn't commit an outrageous misrepresentation, there is a tendency to distort square footage, the quality of decks and porches, and the state of unfinished basements. Remember that a home's total square footage should only account for heated living spaces. When you misrepresent your home, you set people up for disappointment and once that happens, it's extremely difficult to recapture their interest.
Don't Scare Off Buyers!
Maximize your "curb appeal"! You have to get buyers in the door because you can't sell to someone who isn't there?! A well-kept yard free of clutter will get them out of the car and on your doorstep. Conversely an unkept yard will put off a prospective buyer before they even get through your door. Improve the view of yoru house from the street by sprucing up shrubs, shutters, windows, the front door and even the mailbox. Place potted plants on the front step, hang a wreath on the door and install brass outdoor lighting fixtures. Do whatever it takes to enhance your home's "buy me" look. And never under estimate the appeal of fresh flowers and a mowed lawn.
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