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The Top 10 Mistakes Made by Maine
Home-Sellers

A boatload of free advice
from an industry-insider   
by Lou Demers
Broker, Maine Coast Properties

 

 

4. Be “Show Ready”

 Is your home in “show ready” condition? If it is, then you’ve done a very deep cleaning (we’re talking windows, floors, bathtubs, basements and garages) and de-cluttered as mentioned previously.  The essence of preparing your home for sale is creating the impression of light and space—if you’ve got a dark room, paint it a light, neutral tone and get rid of those light-killing drapes.  Similarly, be sure not to furnish small rooms with large pieces of furniture or too much furniture. If you have a space in your home that doesn’t have an obvious function, give it one--put a desk in that office nook or a twin bed in that spare bedroom—don’t leave it up to the buyer to figure out the purpose of empty space. While you’re at it, don’t forget the outside of your home—be sure that walkways and steps are swept clean or shoveled, keep the lawn neatly mowed, remove pet waste, trim back overgrown hedges and plant flowering plants to add color. Immediately prior to a showing, turn on the lights in all rooms, the heat or a/c (if needed) and draw open the blinds and pull back curtains to let in natural light.  Do not remain on your property during a showing—a buyer will want to take his or her time and speak freely. If you’re there, he or she will feel rushed and may not provide honest (and helpful) feedback. 
 
  1. Become the Buyer’s Eyes
 Your main goal here is to eliminate “big ticket” surprises that can kill a deal or result in a significant reduction in your sale price.  Really smart sellers are able to separate themselves from their stance as a “seller.”  Try to view your property as if you were a potential buyer for it, carefully looking beyond the obvious for potential problems that may equate to money that could potentially be subtracted from your asking price.  Consider hiring a professional home inspector to do a  home inspection before your place your property on the market.  Why not discover all the defects on your property—large and small—before a buyer does? This will enable you to either correct the problem prior to your home going on the market, or adjust your asking price accordingly to account for the money the buyer will need to correct the defect(s). If you make your inspection report available to the buyer, he/she may even forgo their own inspection if you’ve hired a well-known, reputable inspector…and fewer contingencies in your purchase and sale agreement means an increased likelihood that the transaction will close.  
 
  1. Price it Right
 I cannot stress enough the importance of pricing a property correctly.  Research has shown that a property priced correctly, at market value, will only reach 60% of potential buyers.  A property priced 10% above market value will reach just 30% of prospective buyers. Before you set a price for your property, you and your Realtor® will need to do some research.  What are similar properties selling for in your area? How, specifically, do they compare to your property? How long did it take for those properties to go under contract (days on market)?  Are values currently moving up, down, or remaining stable? If prices are generally moving downward, consider listing your property 5% below the most recent sold comparison (or other similar homes currently for sale), otherwise your price will be above the “curve,” and you’ll likely be forced to keep reducing your price to a point less than what you would have received if your home was priced correctly to begin with. Even though it’s hard to hear, keep in mind that the value of your property usually has nothing do with what you think it’s worth, what you’ve spent on improvements, what your friend says it’s worth or what you owe on it. Consult with an experienced Realtor® (or two) who’ll prepare a detailed comparative market analysis (CMA) for you.  Also, if you’ve had a recent appraisal done for refinancing purposes, that value may not be representative of market value.  Lenders are in the business of loaning money and appraisals for refinances almost always accommodate the homeowner’s loan request. One last crucial factor in correctly pricing your home: pay close attention to those other properties that are currently listed for sale (your competition) rather than just recently sold properties. Pricing your property just beneath your competition likely will result in you receiving an offer more quickly. Another rule of thumb: the first offer you receive will usually be your best offer.  In my ten years of selling real estate, I have only seen one or two exceptions to this rule.  
 
  1. Who is your Target-Buyer?
Your home is unique and so will be the buyer for it. Sometimes marketing your home to the world at large does more harm than good.  The way in which real estate is marketed to the public has changed drastically in the past decade.  Most buyers begin their search for a new home on-line.  Many of them read specialty publications that cater to specific lifestyles. If you own an oceanfront condominium, for example, listing it with a large real estate franchise may not be the way to go, especially in a sluggish market.  Alternatively, a real estate company that specializes in oceanfront properties is fundamentally designed to attract the type of buyers looking for a property like yours. As a Realtor®, I have found my affiliations with independently owned real estate companies to be more rewarding than large “chains,” mostly because smaller “boutique” companies creatively carve out a niche within the industry.  When interviewing Realtors (note: there is a major difference between an “agent” and a “Realtor”), be sure they get specific about how he or she will market your property and to whom.  Gone are the days when a property is simply entered into the multiple listing service (MLS) and an offer shows up a week or two later. Selling real estate in our current market takes hard work, money and ingenuity.  Actively marketing properties on-line, in print and through other mediums will make the difference between your property getting sold or not. Be sure your Realtor not only has a marketing plan for your property, but a budget to go along with it.   
 
  1. Check Your Realtor’s Work
 We Realtors excel at selling real estate, but we’re not perfect.  Unfortunately I notice mistakes on other Realtors’ MLS property listings more than I’d like.  Considering that our MLS is one of the most powerful tools we use to market your property, how your property is entered in the MLS is extremely important. If you have three-bedroom home and it’s mistakenly entered into the MLS as two bedrooms, the number of potential buyers who’ll view your property will be greatly reduced.  Similarly, if you own an oceanfront property with deepwater access and it’s entered into the MLS as tidal waterfront, the same effect will be had. I’ve seen everything in the MLS from wrong street numbers, incorrectly spelled street names and even photos intended for a different property!  Work in partnership with your Realtor®--ask to review the MLS listing after he or she has entered it.  That way, you can quickly correct any errors that may negatively impact the sale of your home.   
 
  1. Beware of the “Bargain”

You get what you pay for.  This adage rings especially true when it comes to listing your home.  There is no “standard” listing commission rate (such a thing is illegal), but discounted commissions usually equate to fewer services offered by the listing company.  When a listing company is charging a seller less, it probably will have less money to spend on marketing your home.  And, in our current buyer’s market, properly and extensively marketing a property is key to getting it sold. Keep in mind that the longer your unsold property sits on the market, the more likely you will receive less money for it at closing. Often the money you think you’ll save with a discount commission will cost you more when it comes time to sell because you’ll have to reduce your asking price in order to secure a buyer. Wouldn’t you rather sell your property faster and at a higher price? Thinking about selling your property on your own? Keep in mind that research by the National Association of Realtors (NAR) has consistently shown that homeowners who utilize a Realtor® to facilitate the sale of a home actually net a larger profit (even after paying a commission) than those who sell on their own. 
 

  1.   Choose a Realtor® who has time for YOU

You should list your home with the agent whose “for sale” signs are plastered all over your neighborhood, right?  Maybe not.  These “super-agents,” as I refer to them, may be very adept at advertising themselves, but that doesn’t necessarily mean they are equally good at selling real estate.  During the process of selecting a Realtor®, be sure to ask how many listings he or she is handling on a personal level (not including company listings).  If the answer is more than 20, then it’s unlikely that this agent will have the time or energy to both personally and properly market your property—let alone be readily available to speak with you at any given time.  As I mentioned earlier, current market conditions demand that listing agents go over and above the basics of marketing a property.  In addition to entering your property in the MLS, your Realtor® should design a custom color property brochure, advertise your home on multiple websites and in strategic publications, host open houses (yes, they do work!), coordinate with other real estate professionals to tour your home, and provide you with quick, informative feedback after each showing – and this is just for starters.  Also, keep in mind that many “super-agents” work as a team.  In this case, the listing agent often initially meets with the seller to sign the listing agreement, but after that other members of the team are assigned to your property…with the listing agent returning to the scene only when an offer is received.  For some homeowners the team approach is acceptable, but many prefer a more personal approach that may result in a higher quality of marketing and less room for errors. 
 

Lou Demers is a full-time real estate broker with Maine Coast Properties and a free-lance real estate writer.  Any opinions expressed are solely those of Lou Demers and not necessarily those of Maine Coast Properties. Maine Coast Properties makes no guarantees or warranties as to any stated information.  This article is affiliated with www.joslyndemers.com, a copyright-protected© website.  This article may be reproduced either in part or its entirety with the written consent of Lou Demers. 
 Lou can be reached via email at lou@mainecoastproperties.biz
Phone: 207-807-5999