Seven misstatements sellers make
Originally appeared in Bay Area News Group publications on October 16, 2009
Selling your house can be stressful, especially in a buyer’s market such as we are experiencing today. Regardless of the type of market, and for as long as I have been in real estate, sellers say some things that do not serve them well.
#1 “My house is better than…”
I have met many sellers who thought their home was better than the one next door or across the street. This may, or may not, be the case.
Sellers commonly announce this to justify a price that is greater than the market will bear. It comes out as, “If that house sold for X amount, my house has to be worth at least that, if not more.”
Expert help with pricing is one of the reasons you hire a Realtor. Those of us in the business know how touchy it can be to tell a seller his property is worth less than he believes. As a seller, pricing too high often leads to fewer dollars in your pocket.
#2 “At that price, I would be giving it away.”
Similar to the statement above, sellers, understandably, fight to get the most they can for their home. Agents want this for the seller as well. Clearly, “giving it away” is a subjective concept and the figure the seller is picturing may make the property appear overpriced.
The question is about the seller’s motivation for selling. If it is strong enough, he will likely, at some point, accept the verdict of the market. If he is testing to see if he can get at least a certain amount, he may end up as a listing that does not sell.
#3 “The buyer can pay for his own reports.”
While true, finding out about expensive problems from the buyer once you are in escrow is not a good idea. Depending on many factors, spending $600 to $1400 for inspections before the property goes on the market is an investment on your part as a seller. This will allow you to fully understand what you are selling and avoid nasty surprises later.
In addition, pre-sale inspections will help you to more accurately price your home. As an example, if inspections before marketing determine that your property needs $60,000 in repairs, that must be included as part of your pricing rationale. Conversely, $800 in work is so small it can be used to your advantage as a marketing tool.
The buyer should be encouraged to get his own reports after he has read and digested yours. This will protect both parties and minimize the chance of the sale collapsing because of previously unknown problems related to condition.
#4 “I don’t need to tell the buyers about…”
As an East Bay and Northern California real estate expert witness, I see how failure to fully disclose is a leading cause of lawsuits against sellers. If you think it is, or could be, an issue, disclose it in writing to the buyer.
Competent agents personally review all the disclosure forms with sellers and guide them through the process. For instance, a roof leak into your kitchen ceiling that was repaired two years ago needs to be disclosed. Was there any internal damage caused by the leak? Will the leak reoccur? These are unknowns and the buyer must be informed.
The information required to be disclosed is called a “material fact,” something so important it might influence the buyer’s decision to buy and/or how much he would pay.
#5 “I don’t want a ‘For Sale’ sign in front or any open houses.”
Keeping it a secret is counterproductive for sellers, especially in a soft market. Some sellers say they don’t want their neighbors and nosy non-buyers poking around their house.
Unfortunately, selling your home is an intrusive process. The house needs full exposure to the market, including a sign in front, the 24/7 declaration that this property is available. Homes get sold without For Sale signs or open houses, but they tend to receive fewer offers, which generally translates into a lower selling price.
#6 “I am not going to disrupt my life by removing furniture and other stuff.”
Clutter can kill the appearance of even the nicest properties. It makes each room seem smaller and less appealing. Contrary to what some sellers believe, most buyers do not excel at envisioning what could be. They focus on what is in front of them.
People live a lot differently from day to day than what we see at a property properly prepared for sale. Huge, overstuffed furniture, bookcases, magazines, walls covered with family photos, etc., should be reduced or removed prior to putting the house up for sale. Less stuff gives the impression of greater space. When you are selling, that is what you want.
#7 “I just need an agent who will sell the house for me.”
Sellers often think of real estate licensees only as salespeople. Few sellers have in mind the most important functions of an agent. Anyone can make a sale; you need an individual with local knowledge and experience who will stand in your shoes and do what is right for you.
There is one thing sellers rarely say – “I am looking for an agent who will work in my best interests.” When they reflect on how the “salesperson” got the house sold, they may realize that their interests were not put first. At that point, it is too late.
Final Thoughts
Sellers make innumerable self-defeating statements other than those above. Many in the business will take a listing that is set up to fail, rather than turn it down because the seller is unrealistic or uncooperative. The key is to hire an agent who is highly professional and whom you can trust. Find someone who will tell you if you are in the process of harming yourself.