1. Prices too ambitious- An owner’s home is unique and special to him or her. They chose this home above all others, made it their own, lovingly maintained and tirelessly updated. It is natural that, above all others, they overvalue the property as a competitive product in the real estate market. A quick tour of Zillow.com For Sale by Owner listings highlights this issue where the vast majority of owners value their listings significantly above the Zillow Zestimate. While Zestimate isn’t the last word in market analysis, it tends to be pretty close. Additionally, the data used for a Zestimate reflects homes sold by realtors, as they sell the majority of homes in the US. These sales are typically 10% to 18% higher than homes sold by the broker. owner.
2. Lack of update- Oftentimes, a home’s décor is perfect for the current owner, even if the last time it was done was years ago. Unfortunately, buyers typically expect updated decor, appliances, mechanics, and exterior. Otherwise, they devalue the house by the amount they estimate it would cost to bring the house to its current appearance and efficiency. This amount tends to be more than what the upgrade would actually cost, so it makes sense to do the work before you market the home. If this is not possible, the cost must be factored into the asking price. For the price we’re asking, they should take it as-is. thought does not fly, they will not.
3. Lack of marketing- A lawn sign and Craigslist listing just aren’t enough in today’s highly competitive marketplace. Marketing is successful if a buyer would have to live under a rock not to be aware of the price. Presentation is equally important. A home must look wonderfully attractive to compete with the professionally photographed and presented listings typical of today’s real estate agent listings. A great way to do this is with a flat rate MLS listing. Learn more linked at the end of this article.
4. The imaginary buyer- The saleability of a house can be determined by the size of the pool of buyers present for a particular house in a given location for a given price range: how many buyers are looking for a house like this. Sellers often envision a buyer who would be interested in their listing at the price they want. This ghost shopper probably doesn’t exist or, if it did, would probably buy something at a more competitive price.
5. Inflexibility Every situation is different. What appears to be the best course for sale is often frustrated or unsuccessful. When this happens, the failure to reevaluate and redirect often ends in a dead end in the process. The real estate environment changes slowly and often not in the desired direction.
6. Creative Financing- Owners often receive “creative” offers from prospective buyers who have an unfortunate tendency to fail or cause serious financial harm to the seller. These prospects have often been turned away by owners represented by real estate agents who know better than not to engage in shady dealings with unsubstantiated buyers.
7. Do not qualify- Landlords often accept contracts from unreliable buyers. The result is usually failure, going back to square one, or litigation. A buyer must be qualified before even seeing the house.
8. Availability- Owners must be available 24/7 by phone or email to answer questions about the home and schedule a showing at the convenience of qualified buyers. If they have to wait, they will usually see something else.
9. Negotiations- Lack of negotiation skills costs sellers millions of dollars each year in the US Landlords attract buyers who are ready, willing and able to discuss them. These same prospects would have little luck with low-level Realtor-represented sellers who are highly trained and experienced in negotiations and can spot a dealer a mile away.
10. Not consulting a Pro- Even if there is a compelling reason not to use a real estate agent to handle the sale professionally, not having one available will prevent devastating situations that can often destroy an otherwise viable sale. The next best person to consult is a real estate attorney; no transaction should be done without either; too much is at stake in the outcome.
