5 strategies sellers haven’t learned and keep paying for
By PJ Wade
You’d think our front-row seats for the Global Financial Collapse and our first-hand experience with the resulting financial meltdown (or, is it meltdowns?) would make us all very sharp financial smarties.
You’d think so, but reality will soon set you straight.
Most of us are still our own worst financial enemies. As economies slowly move into positive territory, memories of what got us – that's each of us and the world – into a financial mess in the first place are fading too rapidly to do us enough long-term good.
Check your own approach against this list of 5 Things Sellers Haven’t Learned & Keep Paying For to see how much progress you’ve made building financial savvy:
1. Time Marches On, Not Backward
Waiting for real estate prices to return to pre-recession levels before you put your home on the market means you don’t understand that time only goes forward. Forward from here, there are no real estate booms immediately on the horizon. Yes, we’ll see booms again, but wait for the next one, and you’ll end up financially behind all those that keep their money moving and multiplying in today's markets.
This “stagnation” loss is compounded by the fact that every passing year makes your house or condominium unit one year older. That's “older” in every way from dated decor and appliances to out-of-date plumbing and everything else. This means that, when real estate prices increase, your home will be discounted by the renovation factor – the perceived cost of bringing the house or condominium up to current standards. If your resale home does not look “nearly brand-new,” buyers see second-hand real estate which warrants a second-rate purchase price.
2. Your Wants Don’t Win Over Buyer's Demands
Sellers who sell their home start off with a problem. Selling a home is a stressful emotional ordeal that challenges rational thought and logical decision making. Reactions can become personal reactions to perceived insults if buyers don’t do what sellers want them to do – make an offer, make a higher offer….
Sellers who sell their house or condominium unit start off ahead of the game. And “game” it is. They understand that they are selling real estate, that this involves a business transaction which should result in a legally-binding contract. All of this requires sellers to think rationally in their own best interest, and to logically make the best decisions. Buyer reactions are not taken as personal slights, but analyzed with professional guidance to create the best possible selling strategy for achieving the highest purchase price and net return.
Listing sales and marketing strategies favor the seller to achieve the greatest possible return for the seller. These approaches usually require the seller to emotionally detach from the property before it is sold and, probably, before the seller moves out. Making the mental leap from living in the home you love to considering your home an investment, which must be managed for the greatest return, is a vital financial mind shift.
3. Stubbornness is not a Winning Strategy
Refusing to listen to professional advice or to consider real estate statistics on current sales, current listings, and expired listings, does not contribute to your success as a seller. Stubbornly, holding on to what you believe your home is worth, regardless of what reality dictates about your local real estate market, gets you no where fast. In fact, if your stubbornness keeps your property priced out of play for too long, your listing may sit on the market until a dramatic price reduction is the only strategy left.
Stubbornness about how your real estate looks or “shows” to buyers can undermine results, too. That beloved whatever needs to be removed, painted over, or replaced since you’re not selling your home, but working to encourage a buyer to purchase their home.
4. Paying for Something Valuable That You Don’t Use is More Than a Waste
Real estate professionals are trained to analyze real estate data so they can assist sellers in arriving at market value for their real estate, that is, what willing buyers will pay when not under pressure. From there, sellers are guided in selecting the most effective list price to reflect market value, buying patterns, and real estate market conditions. This skill is part of what real estate professionals are paid for. Their job is to take as much of the guess work out of selling as possible. They also want to spare you having to figure out all the legal and sales elements that go into generating an acceptable offer which is attractive to both parties so a contract results. This and more is the professional service paid included in real estate commission. If you don’t listen, don’t share relevant details, don’t explain what bothers you, don’t ask questions until you really understand, and don’t use the professional skills, knowledge, and expertise you’re paying for, why not? Too often, when sellers complain about real estate fees being too high, it's because those sellers are not using all the professional services offered to them in that fee.
5. Ignoring the Obvious
Purchase price can become THE BIG THING, but in fact this is one of more than a half dozen elements in an offer that represent value to the seller. For instance, the agreed-upon closing date can save money for the seller. Purchasers who don’t ask for a long list of appliances, lighting fixtures, and personal items can also save money for the seller, or make some if the purchaser buys them from the seller later. Purchasers who make an offer without conditions for arranging financing or selling their own home also present value to a seller. That firm offer represents “money in hand” which leaves the seller free to shop for their next home without conditions. (If you want to understand all the value elements in an offer, ask your real estate professional.)
Sellers can gain in the long run if they buy real estate in a location where market values are lower. The net gain from selling and buying is what should be considered, not just the profit from selling. Often the obvious gain in selling is to be free to take the next step in your life and to move to a new home ready to start a whole lot more treasured memories.
Recognize yourself in any of the five expensive unlearned lessons? What have your front-row seat and first-hand experiences taught you about real estate and your financial behavior?
Unless you take the time to analyze how your thinking and decision making have improved, or could, you may miss-out on valuable learning opportunities. Don’t you want to be in great financial shape to take advantage of the next real estate boom?
Now is the time. If you are thinking of selling your home!!!? We have buyers waiting for fresh inventory to come on the market.? Let me put my many years of experience to work for you. I am your local expert and will guide you through the complicated process of buying or selling a home.? Call me at 508-366-3766 for the best experience in real estate. Email me at EQuigley@ownnewengland.com or visit my website at www.EQRE.com.
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