It is totally logical that a private owner who wants to sell his home does not have sufficient technical knowledge. Nor does he have the necessary resources to face the sale of it. That is why today you will know three main mistakes made by private sellers.
For this reason, it is common for these people to make important mistakes that significantly influence all the processes of selling a property. Each property has a sale period, which depends not only on its housing segment but on its situation and physical condition.
It must be understood, then, that each process of selling and marketing a home requires a specific strategy that mistakes made by private sellers.
The intention to sell
The first thoughts of a private seller, most of the time, are about the price of the house and how to deal with the decreasing offers.
They are rational thoughts, which are far from reality and due to lack of experience and general ignorance. There is a tendency to improvise and make hasty decisions without basis or information.
Therefore, in this article, we are going to detail three of the typical mistakes made by private sellers.
Mistake 1: High price for low offers
It is very typical for a private seller to think about setting a price higher than what should be adjusted. With the intention of avoiding that the low offer could reduce their possible profits.
It is totally understandable that buyers want to buy below the asking price. Even if it seems like a good starting price; they need to have the feeling of buying cheap. Therefore, it is very typical for buyers to bid lower regardless of whether the sale price is tight or not.
Facing this type of situation is not easy for a private seller, since when there is a serious offer, in principle; there is a formal purchase commitment. And therefore, a possibility of closing the sale of the home. With which, on numerous occasions, it is necessary to make the decision to accept, reject or counter-offer.
Faced with these situations and in most cases, the private seller, to avoid these problems. Thinks that by increasing the sale price it will be easier for him to accept the first offer and close the operation as soon as possible.
The error when taking this option is the following
The serious mistake of this option is that by increasing the sale price of the house above the adjusted price. It loses an important market share and greatly reduces the chances of finding the ideal buyer.
Market share is lost, because when the price increases, the house falls into the price ranges of upper segment real Estate. And this implies not only other types of buyers but also a loss of opportunity compared to other houses of its competition that Yes. They will be sold before because they have an adjusted price, also increasing the time to market and all that that entails.
The possibilities of finding the ideal buyer are also reduced since this type of buyer looks for a price adjusted to the house. Because their motivations for buying are not the price mainly. But the situation and physical condition, so they end up looking at other households.
Mistake 2: Involuntary bargains
This is one of the typical mistakes of private sellers. And it is common for those private sellers who are in a hurry to sell, who make the decision to set a low sale price to close the operation quickly. And thus avoid lengthening in time and having to constantly worry about the sale process and face all the daily vicissitudes, dedication, complications, etc.
Sometimes jewelry is found on the market that its owners no longer want to own for whatever reason. And they offer their properties at greatly reduced prices with the intention of selling quickly.
There are not many cases in which we can find these situations, but there are, fortunately for the “vulture” buyers.
Before going into detail in this special situation, I would like to make a similarity with the sale of vehicles. I hope they are not all like the ones I have come across, but without a doubt. The concept that best defines the “vulture” buyer comes from the hand of these a-professional profiles.
The sale of used vehicles seeks the maximum profit for them. And how do they do it? It is very simple, they buy very cheap and then sell at the highest possible price, without adding value to the personal property.
To buy cheap, they turn to their sources of unsuspecting bidders, online portals. There are many individuals who offer their esteemed vehicles for needing to recover an amount of money urgently.
The vulture shopper strategy: watch out for it
Here the “vulture” buyers sharpen their claws because they know they are going to eat a good slice.
Dressed in “lamb” they present themselves as private buyers, who are looking for a vehicle similar to the seller’s. And just the one sold fits their specifications, but the price is very fair, and they are forced to bid below.
To which the unwary owner in an attempt to enforce his vehicle replies that the price is already very low. And that if he does not want it at that price, someone else will come.
Once the strategy of the “vulture” buyer was hatched, he made some of his collaborators call inquiring who were interested in the vehicle. And during the visit they offered similar or lower prices, leading the unsuspecting seller to see the first buyer’s bearish offer as the best option.
So when receiving the call from his first bidder, and asking if he has already made a decision. The seller takes a breath, and before answering. The buyer interrupts him with another offer a little better than the previous one. And here the seller falls surrendered and grateful for the great effort that your new buyer has shown.
In this short but impressive history, a very common technique is reflected among vehicle sales and is increasingly widespread in real estate markets. These are situations that happen very quickly and take advantage of the need and the rush of the seller.
The need to sell fast and its consequences
What makes them act like this? Well, the main trigger, the reduced price. Low market prices, lead to think about the rush of the seller or, in other words, the NEED to sell quickly.
This provokes the mass call of opportunistic buyers who seek the round deal at the expense of unsuspecting sellers.
The biggest possible mistake in this situation does not just have to deal with opportunistic buyers. But the loss of profitability of a poorly sold property.
A real estate professional would not allow something like this. Every time the owner wishes to carry out the operation in this way. We, as real estate professionals, understand that it is a serious mistake that should be avoided no matter how in a hurry.
There are a number of viable options, as well as financial tools that could mitigate the effects of premature needs.
Mistake 3: The emotional factor
Another of the three typical mistakes made by private sellers is the sale of a home at an emotional price. The valuation of these properties is usually estimative and totally subjective.
It is normal for a seller to have strengthened emotional ties to a property for the thousands of reasons that tie a family to home.
See children grow up, see them go, see situations of maximum happiness with your loved ones. See celebrations, farewells, love, sometimes great discussions, etc.
The houses encompass infinite ties of affection that when the time comes to make the decision to leave behind a series of memories. It is necessary to stop seeing the past to have to look to the future.
Time to price your home
The reasons for having to sell a home can be very numerous. But it is a delicate situation when it comes time to put a price on these homes.
As we always say from sirmaya.com, a home for sale is a property on offer in a market full of competition.
This means that it transforms from a wonderful place where it has enjoyed countless emotional situations. To becoming a cold object subject to critical, although sometimes objective, judgments. And that is the objective reality.
It is only possible from the hand of a professional who is usually dedicated to the sale of homes. Knowing how to give colour and warmth to that object to offer new stories of love and happiness to a new family, that with enthusiasm and hopes will soon inhabit.
So, for a private seller who has to deal not only with a hyper-competitive real estate market, he also has to struggle with his emotional ties.
Usually the way to deal with this situation is by putting a high price on the property, thinking that whoever wants to pay it will take a jewel.
The high prices mistake
This is a serious mistake, because, by having a high price, not only will you not find an ideal buyer. But no one will call you to visit the home, beyond the curious or as we call in professional jargon, “real estate tourists”.
That they are people who highly value how beautiful the home is, the good taste. And make their imaginations fly by thinking how happy they would be living there, but who neither have the ability to buy nor will it be the only home they visit.
Be careful with these “real estate tourists”, they steal a lot of time and human resources without caring about the collateral damage they cause. Only those who deal with them daily know that these words are totally accurate.
So, in summary, regarding this error number three, so typical, the main damage is the loss of time, as well as the loss of financial and human resources. In addition, they sap morale and motivation and also result in the loss of opportunity for ideal buyers who focus on affordable homes.
The objective when valuing a property
You already know the typical mistakes of private sellers and now, in short, you will know that the objective. When evaluating a property for sale is to find the adjusted price of that property, based on the current economic situation. Detaching not only from affective ties but also from counterproductive pricing strategies for the interests of any seller is important.
