Wednesday, August 12, 2009

Tips to make sure your home does NOT sell.

Warning: there is some extreme sarcasm in this post and might offend some but it is based on 25 years of real estate experience and tens of thousands of sales. Proceed at your own risk.


Many articles and web sites exist that give sellers tips on selling their home. With thousands of properties in SE-WI on the market for over a year now I thought it was appropriate to put forth a list of 5 major tips to make sure your home fails to sell.


GO AT IT ALONE. This one is a no-brainer and I wrote about being FSBO in the previous post. Despite the great odds some people still try this route wasting money and time. Interestingly though the vast majority of these FSBOs will gladly pay a broker a commission (a cobroke) if they bring the buyer which is more than our 1.5% commission. Amazing!


USE A FLAT FEE BROKER. This is another avenue of selling with very low odds of whereby sellers pay up to $550 UPFRONT. The post of 3/25/09 really explains why the reputation of “list them and forget them” exists in the industry. Most of these outfits are doing just MLS data entry, and they could care less whether the home sells. Thousands of sellers have fallen victim to paying the hundreds of dollars upfront, wasting months or years on the market and having to turn to another broker or Homeowners Concept to eventually sell.


CASUALLY CHOOSE YOUR AGENT/REAL ESTATE COMPANY. The third biggest mistake out there is thinking that all real estate companies (and all real estate agents) are alike. Huge mistake. The fact is, real estate is an industry that is easy to enter and many people do so every year. In fact, the National Association of REALTORS® once published a report showing that 9 out of 10 people who get into real estate are out of the business within two years. Of all the major real estate companies in Metro Milwaukee we are the only one with the least amount of turnover. By far!


Selling a home is typically a very important, and costly event for most people. It involves their most expensive asset, so it always blows my mind when sellers pick their friend who “also does real estate.” Think about it, in every profession you have the “best in the business,” and then you have everybody else. Why trust this most precious asset to somebody who cannot deliver the very best for you? How can anybody who does real estate part-time and for a just a few years compete with those of us who do it full time and are veterans in the business? Also lets not forget that those same friends and relatives who happen to be agents still sock you with a 6% commission.


PRICE YOUR HOME TOO HIGH. Up until the 2005 peak in sales, a common method for marketing a home was to put a high price on it and then “let people bring you offers.” This made great sense, as you know everybody wants a deal, so you might as well build in some wiggle room. Another reason that this method was not so bad is that real estate always appreciated! No matter what price you put on the home, eventually the market would catch up to it and you would be able to sell your home. But not now. Prices are dropping. If you are overpriced today, the market is not catching up, it is leaving you behind.


IGNORE BUYER FEEDBACK. f you listen really closely, the market will tell you everything you need to know. First of all, when a great agent lists your home (which all of he or she will tell you on how best to position and price the home to attract an offer. Also a great agent will also get good feedback from the buyers that view your home. How does the home show? How does it compare to other similarly priced homes? So the key to not selling your home is to either not ask the questions, or at least ignore the answers.


Selling a home is not rocket science, paying attention to the above tips and using a company such as Homeowners Concept where an expert Realtor costs much less can aid tremendously.

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