Selling property is a long-drawn process. It involves taking into consideration several factors, including the state of the real estate market, and other conditions that may affect the industry at large. In order to successfully sell property, it is important for the sellers to follow certain guidelines. This includes ensuring that the property which is for sale is better than the other properties that have been listed for sale on the market. Making the necessary repairs will make a property attractive and marketable, thus attracting more potential customers.
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What are the common mistakes committed before selling a house?
The most common mistake that a seller usually commits is by taking the burden of selling the property on himself. This involves running around in order to figure out the correct procedure regarding the sale of the property, appraisals regarding the property, listing of the property on the market, etc., all by oneself.
The following are common mistakes committed by sellers –
Choosing the wrong agent –
It is important to hire a real estate agent who works towards furthering the interests of the seller. The seller should be able to market the property correctly and should be able to identify the potential buyers. Hiring the wring real estate agent will result in the property not being sold, and will add to further stress upon the seller.
Lack of awareness of the market –
While selling a property, it is important to understand whether a buyer’s market exists or a seller’s market exists. Also, there may be an occasion where the seller may either underquote or overquote the price of the property which may lead to the loss of potential buyers. It is important to know the worth of the property before marketing the property.
Being inflexible –
It is seen that most sellers are not ready to negotiate with the potential buyer. They are not open to suggestions of the real estate agent or the seller. This will lead to the seller driving away interested buyers. Not being open to suggestions and negotiations may result in the property going unsold.
Commitment towards the sale of the house –
It is observed that most sellers enter the real estate property half-heartedly, with no real interest in selling the property. Not being committed to the sale of the property would lead to the seller not fixing the necessary repairs in the property, poor communication with interested buyers and the real estate agent. It will also lead to poor negotiations with the buyer which may lead to the property not being sold.
What to know before selling a house?
Sellers should be able to dissociate themselves from the property –
Once the house goes up on the real estate market, it is important for sellers to be able to dissociate themselves from the property. It is necessary to think of the sale only in terms of a business transaction, and not involve feelings in the transaction.
Arranging the necessary documents –
It is important that a seller be prepared for any inquiries that may arise from the potential buyers with regard to the property. It is also important that sellers are able to present the necessary documentation if it is requested by the buyer.
The seller should go through all the paperwork with respect to the property and prepare the necessary documents, such as a deed, rental agreements, bills, etc. They also have to ensure that there are no outstanding fees that have to be paid on the property.
Repair and replacing items –
It is important that the property be presentable when buyers come to see the property. Items that are required to be repaired/replaced should be done at the earliest so that the property is presentable to the buyer.
Increasing the market audience –
It is important for sellers to note that the more people that are made aware of the property, the higher are the chances of receiving the asking price by the seller. For this purpose, a seller can list the property on real estate portals and issue advertisements in proper classifieds. This will enable the seller to approach as many prospective buyers as possible since the real estate market is a buyers’ market.
What to do after you sell your house?
The selling of real estate property is a stressful event. After ensuring the sale of the property, the seller should ensure that the following are done.
Keeping copies of the closing and settlement papers –
After the sale of a property is done, it is important to keep the documents pertaining to the sale with the seller. This ensures that there is a valid proof of the occurrence of the sale of the property and is also useful for tax purposes.
Change in address notice –
After the sale of the house, it is important to send a notice to people informing them about a change in address. It includes informing the billing companies (credit cards, loans, etc.), investment accounts, place of employment, friends and family to name a few.
What should you not do while selling your house?
The selling of a house has a lot of challenges that are involved with it. Making repairs and renovations, finding buyers, getting a valuation for the property, etc., all are tedious challenges that have to be undertaken. It is important to anticipate the problems that may arise while selling a house.
These are a few common mistakes that the person selling a real estate property should avoid –
Underestimating the cost of selling –
It is necessary that sellers know the correct asking price for their property. An undervalued property may end up proving to be a loss for the seller, and he may have to pay a certain percentage of the price as a commission towards the real estate agent. To avoid the selling of the property at an undervalued price, it is important that a valuation of the property is done in order to set the correct price of the property. This will enable the seller to not undervalue his property and set a correct asking price for the sale of the property.
Setting an unrealistic price –
At most times, the price that is set by the seller, and the average price at which similar properties are sold may be different. There may be a difference between the price that the seller wants and the price that a potential buyer is likely to pay for the property. Setting an unrealistic price for the sale of a property may deter potential buyers from buying the house. In order to set a fair price for the property, it is important to conduct a valuation of the property. The valuation report would help the seller in setting a fair price on the property, which would attract customers.
Ignoring the need of making major repairs and renovations –
A long list of maintenance problems associated with the property can turn away potential buyers and thus lead to a decrease in the value of the property. Buyers always expect the condition of the property to match the description of the property which has been given. Any item that is broken, or may affect the safety, structure, or functionality of the property may decrease the value of the property. These renovations should be done at the earliest to order to maintain a high value of the property.
Not preparing a house for the sale –
It is observed that staging plays an important role in the sale of a property. A staged property helps potential buyers to observe and relate to the property. It allows the buyers to visualize themselves living in the property. It prevents the clutter of items thereby making the property seem small, and allows the buyers to observe the uniqueness of the property.
The selling of a real estate property should be a smooth process that does not cause stress to either the buyer or the seller. For a seller, it is important to think about the potential questions that a buyer may raise and be prepared for them. It is also necessary to have the required documentation if requested by the potential buyer. Being aware of the trends that are followed in the real estate industry will help sellers to avoid committing common mistakes that are made while selling the property.