Common Pitfalls to Avoid When Selling a Home

 

The Boehmer Team assists home sellers across the St. Charles County and St. Louis metro area to make the most of their home sale. We like to educate our clients on pitfalls to avoid during the home selling process. Here’s a list we’ve put together of common home selling pitfalls we’ve seen an advised our sellers to avoid.

 

Selling It Yourself

There is tons of data showing that the typical “For Sale By Owner” (FSBO) route is not the best path. Think you’re saving yourself from paying a commission to an agent? True, but you’re likely missing the chance to make a lot more money. Unless you’re an expert at home marketing, know how to set the best price for the market, enjoy detailed contracts and paperwork, have lots of time to show your home and field calls, and are an expert negotiator, then you might have a chance of successfully selling your home yourself. Likely, all of these things don’t apply to you. Hire an a qualified agent and make more money. Currently less than 10% of all sellers sell their home FSBO while 90% use an agent.*

 

Hiring Family or Friends

While it might seem fun to work with a friend or family member to sell you’re home, there’s a few reasons why it isn’t the best idea. Your friend or family member may be lazier complacent and underperform with you because there is less pressure to impress and get future business and/or good reviews. Imagine if things go bad, will you be able to fully express your frustrations and concerns? What would it do to your relationship? Unfortunately, we’ve heard plenty of stories involving ruined relationships due to bad real estate transactions.

Not Interviewing or Researching Your Realtor

Even if a Realtor has years of experience, they may not be the best fit for you. Interview several agents to see if you like their communication style, their local expertise, particular specializations and their home marketing plan. Research the agents to learn about their business history and see customer reviews. Then choose the real estate agent or team that is the best fit for your needs.

 

Waiting for the Right Time to Sell

The right time to sell a home could be anytime. A good Realtor will advise you on what needs to be done to sell your home when you want to sell it. This could include making changes to present your home in it’s best light, or selling your home without changes at a price competitive to similar homes in the market.  A qualified and full time Realtor will be versed in the supply and demand that most affects the sales of homes like yours.

Pricing a Home Too High

We understand the thought to “test the market” with a high price. However, the usual result is the home being on the market for longer than necessary. Do you want to sell the home quickly at a good price or keep paying mortgage payments for months while you slowly lower the price to fair market value?

While there are many home value estimators online, ask a trusted Realtor to provide you with a comparative market analysis for the most accurate valuation of your home including any updates made to it for the best-suggested sale price.

Learn more about the dangers of overpricing here.

Refusing to Make Changes

When selling you want to present your home as best as possible. This includes making any necessary repairs, cleaning, decluttering, and neutralizing the décor to make the home most appealing to the maximum number of buyers. Homebuyers often point to repairs as a reason to offer less money on a home. Also, buyers can be turned off by highly specialized home décor that they will have to change. Be prepared to update your home in ways that will most appeal to buyers.

 

Skimping on Repairs or Hiding Issues

Beware leaving repairs unattended. Even small defects can turn buyers off. If they go through your home and find dirt, loose doorknobs, or leaky faucets, they’ll wonder if you’ve been neglecting bigger issues in the home as well.  In addition, most buyers get a home inspection after you accept their offer. If a major problem with your house comes up during the inspection, it could delay your closing date or even terminate the deal altogether.

Not Using Professional Photos

Most homebuyers will most likely see your home online. Therefor, you want to have the best photos of your home available for online viewers. The photos will indicate to buyers whether they want to tour a home in person or move on to the next home listing.

 

Limiting showings

Once you’ve put your home on the market, there will be requests to tour the home. Try to cooperate when your agent wants to show it. This may mean scampering out at dinnertime for a private showing, vacating for several hours or even most of the day for a weekend open house. The goal is to accommodate as many buyers as possible, even if their timing isn’t necessarily convenient for you.

 

Not Leaving for Home Showings

While you may be curious as to who is interested in your home, sticking around for showings does nothing but make everyone feel awkward. Leave any questions to the agent and allow the buyer room to tour the home without you being present. breathing down their neck. You don’t want to stand in the way of the buyer’s ability to see your house as their dream home.

Not Expecting The Costs of Home Selling

Be prepared for the costs associated with selling a home. A good Realtor knows how to best arrange your home sale with these costs in mind.

• Agent commissions.
  
• Closing costs: usually 1–3% of the home price including sales tax, title transfer fee, and title company closing procedures.
• Professional home staging. If needed, the costs vary depending on where you live, the size of your home, how many rooms you want to stage, whether or not you’ll be renting decor, and different pay structures including an initial consultation and monthly fee. On average, home staging costs around $525–2,000.
• Funds for repairs brought up by the home inspection. Depending on the seriousness of the issues that come up, repairing your house could cost hundreds or thousands. While that doesn’t mean you have to pay to fix it, buyers will expect a discount.
• Moving expenses like hiring movers or rental storage fees can add up too. Be sure to research these costs.

 

Taking a Low Offer Personally

An offer on your home is part of a business transaction and not a reflection of your home, décor or housekeeping abilities. Keep in mind that if the buyers are making an offer, it is because they really like your home. A low offer can be a starting point for negotiating a good counteroffer. A truly interested buyer will likely improve their original offer in negotiations.

 

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If you are considering selling your St. Louis or St. Charles County area home, interview The Boehmer Team. We’re an open book of real estate knowledge that we’re ready to share with our clients. Working with a team is a plus, allowing us to offer superior service, expertise in each area of a transaction, and ensures a qualified agent will always be available for your questions or needs. Learn more about us and our award-winning services at www.TheBoehmerTeam.com. 

 

*Data from Realtor.com

 

Tasks Realtors Perform for Sellers

Listing a home for sale and getting the transaction through to closing is an involved process with numerous steps. Much of this work is performed behind the scenes and thus goes unnoticed by home sellers. This sometimes leads to the myth that Realtors “just put a sign in the yard.” But there really is so much more that we do. There is a reason that real estate agents sell homes for more money than for sale by owner listings. To better explain all that we do for every real estate listing we’ve put together a list of ways Realtors help home sellers.

80 Tasks Realtors Perform for Home Sellers

1. Research all comparable listings and recent home sales in the neighborhood
2. Analyze the current market conditions and future projections
3. Explain past market performance
4. Assess your home’s marketing position by analyzing all homes for sale in the neighborhood
5. Provide a full Comparative Market Analysis regarding your property
6. Counsel home sellers on the process of listing a home for sale
7. Discuss timing of the sale and the pricing of the home in order to meet client expectations
8. Explain your legal obligations as a seller in the area of disclosure
9. Thoroughly review the entire listing contract and all accompanying documentation regarding the signing of the listing agreement
10. Help you review and fill out the mandatory Lead Based Paint 11. Disclosure required from all sellers
12. Provide the appropriate Seller’s Property Disclosure Statement (SPDS) form for the disclosure of all known conditions required of every seller
13. Review completed disclosure forms to insure compliance with required disclosure obligations of all sellers
14. Counsel on the necessity and advantages of a home warranty program
15. Counsel and assist home sellers to stage the interior and exterior of the home to look best for showings
16. Photograph the interior and exterior of the home

17. Add the listing to the multiple listing service (MLS) for IDX distribution to national and local real estate websites18. Arrange for the placement of the For Sale Sign
19. Create and print flyers to market the home on site
20. Create marketing materials to be distributed via email and social media
21. Point out areas that are likely to be targeted by buyers on any requests for repairs
22. Provide counseling and guidance in regard to showing so that the home gets its best appearance
23. Locate and provide area and street maps to potential buyers
24. Schedule open houses to attract buyers
25. Market open houses with announcements, postings and signage
26. Make certain that all advertising is in compliance with the Code of Ethics and Fair Housing requirements
27. Take safeguard precautions to minimize risk of any loss or vandalism that may occur during an open house
28. Create custom sign-in sheet for buyers who visit the open house
29. Follow up with all buyers that attend the open house
30. Answer phone calls and inquiries regarding your property
31. Arrange and schedule showings of your home at the request of buyers and/or their agents
32. Be available on evenings and weekends when buyers are most likely to want to see your home

33. Answer and address questions posed by buyers regarding the property and its condition
34. Counsel on periodic price changes that may be demanded due to changes in market conditions
35. Receive and review all offers and terms from potential buyers
36. Review the buyer’s LSR and analyze the provisions of their loan to assure that they can get financing
37. Present and discuss all offers that are received
38. Counsel and advise in multiple offer situations
39. Outline the pros and cons of offers received from potential buyers
40. Negotiate offers and counteroffers with the buyers and/or the buyers’ agent
41. Monitor and coordinate the escrow process
42. Properly handle the earnest money deposit
43. Counsel on the rules surrounding the handling of the earnest money deposit
44. Review title company charges and fees
45. Schedule and arrange any inspections requested by the buyer such as appraisal, termite, radon, etc.
46. Make certain that the buyer gets any necessary Home Owners 47. Association information
48. Review the Buyer Inspection Notice and Seller Response (BINSR) request from the buyer as well as any buyer’s requests for repairs

49. Counsel you on responses to the buyer’s requests for repairs
50. Provide professional references for any repairs needed in order to complete the sale
51. Review the preliminary title report for the status of liens, encumbrances and taxes
52. Ensure that all requirements on the preliminary title report received from the escrow company are being met and handled prior to closing
53. Monitor the deadlines and time frames that are contained in the purchase contract
54. Negotiate any necessary changes in the timelines on the purchase contract
55. Counsel on the pros and cons of addendums regarding changes in the timelines
56. Advise on the appraisal process and your role in the appraisal process as a seller
57. Provide regular updates and status reports regarding the progress of the transaction
Assist you in relocation or buying another property
58. Collect utility information and advise on the handling of utilities at the time of transfer
59. Discuss and advise on the exchange of occupancy
60. Update and monitor status of MLS listing to “Sale Pending”
Advise and monitor removal of loan contingency
61. Contact and discuss loan status with buyers loan representative and confirm the processing of the buyers loan
62. Check on the status of delivery of buyer’s loan documents to the title company
63. Confirm the completion of all repairs
64. Coordinate the collection of the repair invoices and receipts
65. Deliver all receipts and invoices to the title company as required
66. Review the HUD-1 Settlement statement and correct all inaccuracies
67. Coordinate and schedule the closing of the transaction
68. Negotiate and arrange any final extensions of the closing date that may be necessary

69. Counsel and advise you on the closing process
70. Schedule all final walk through inspections that are demanded by the buyer
71. Attend and address issues raised in the final walk through inspections
72. Final check with the escrow officer to make certain that all required documentation is in place
73. Review the closing documents
74. Attend and accompany you to the closing to address any issues that you might have
75. Advise and counsel you on the final transfer of funds
76. Assist in the providing of wiring instructions on the day of closing to the title company
77. Assist in the transmission and delivery of any final documentation that may be required by title
78. Review and explain the role of title insurance in your transaction
79. Assist in the correction of any errors or mistakes in the final closing documents
80. Arrange for the exchange of keys and possession

This list shows why full-time Realtors like The Boehmer Team keep so busy. Realtors handle negotiations, deadlines, paperwork, communications and marketing as well as managing a cast of characters involved in every transaction. Our team structure enables us to streamline and double check all parts in the process. We strive to provide client experiences so great that our clients will refer us to their friends and family. Is moving on your mind? Contact The Boehmer Team for expert real estate assistance.