Even in a hot seller’s market like we’re currently experiencing in the Bay Area, there are several mistakes that can cost sellers big money.
Here are the top five costly seller mistakes and ways to avoid them.
1. Trying to Sell Without Professional Representation
The single most costly mistake sellers make is trying the “For Sale By Owner” route in order to save on the real estate commission.
In 2020, the typical FSBO home sold for 35% less than professionally-represented homes. Going FSBO costs sellers far more than the typical 6% real estate agent commission. There are several reasons for this dramatic difference:
Agents have proven marketing plans in place, as well as extensive networks of qualified buyers, to help you reach as many potential buyers as possible.
Many buyers steer clear of FSBO listings, so FSBO buyers are more likely to be real estate investors looking to get a deal.
Agents are market experts who understand price strategy and know how to negotiate to get you the best price for your home.
Agents know the potential pitfalls of escrow and can help you avoid them for a smooth, profitable sale.
Selling on your own will save you some money on the commission. But it will cost you far more in terms of a lower sales price.
2. Pricing Incorrectly
Pricing your home correctly is critical. Sellers often think that they should price high to leave room for negotiation. After all, they can always drop the price later if necessary, right?
Actually, if your home is overpriced, it might not even be seen by many buyers who set price filters in their online home searches. And those who do see your overpriced listing might assume you’re not serious about selling.
Then, by the time you’re ready to drop the price, the excitement of your home as a new listing has worn off. Buyers have already dismissed your house. And those who will reconsider your listing think you might be willing to go lower if you’ve already had one price drop. Even worse, if your home sits on the market too long, buyers start to think there’s something wrong with the condition of the house, and your listing becomes untouchable.
3. Not Allowing Buyers to Feel at Home
The goal of your listing photos and showings should be to convince the buyers that they belong in this home. If your buyers can’t imagine living in the space, they won’t be willing to pay market price for your home. And it’s difficult for buyers to feel at home when they are reminded at every turn that this is, in fact, someone else’s home.
So when you list your home, try to make the space completely neutral so a broad range of buyers can feel comfortable in the house. This means taking down family photos and personal memorabilia. It also means toning down any paint colors or home decor that could potentially alienate a large percentage of buyers.
4. Using Amateur Listing Photos
With 97% of homebuyers searching for homes online, you can’t afford to have poor-quality listing photos. You need professional listing photos that will grab the attention of buyers scrolling through page after page of listings.
At Sequoia Real Estate, our agents all use professional real estate photographers to make sure your home stands out in online searches. And we provide this service at no cost to you. We’re confident that our investment in professional listing photos will be mutually beneficial when we sell your home for top dollar.
5. Failing to Disclose Material Facts
It is the seller’s legal responsibility to disclose material facts about the property to buyers. Attempting to hide or downplay potential issues with the property in order to boost the sales price is never worth the potential legal liability. When in doubt, disclose.
When you’re ready to sell your Bay Area home, contact Sequoia Real Estate for experienced real estate professionals who can help you avoid these costly seller mistakes.