(9/15/2010) At last count, nationwide, new home sales were down more than
12 percent and resale home sales down even more -- 27 percent.
In part, it's the economy. The rate of unemployment nationwide remains at
just under 10 percent and some locales are still in double digits.
In the Gulf Coast area, blame the oil disaster for washing away more sales.
And, unless your state is one of the few with a home buying tax
credit, the end of the federal tax credit also took a bite out of home
sales.
Some of the home sale depression, however, comes from home sellers who still just don't
get it and make mistakes that tank the deal.
To find help for sellers we went to Silicon Valley where, even as home
sales dropped nearly 9 percent in August, home prices are up nearly 12
percent a year ago.
Some sellers, apparently, are making all the right moves.
We sought help from Julie
Larsen Wyss, a hard core Silicon Valley Intero Real Estate Services
broker associate in San Jose, CA.
Wyss, also a broker associate at North Star Mortgage
Associates and short
sale specialist offered these mistakes sellers ought not make if they
want to move their home off the list of homes that languish unsold.
• Pricing too high. A high listing price will cause some buyers
to lose interest sight-unseen. It may also lead other buyers to expect more
than what you have to offer. Overpriced homes tend to take an unusually long
time to sell, ultimately selling at a lower price.
"Every seller obviously wants to get the most money for his product.
Ironically, the best way to do this is NOT to list your home at an
excessively high price," Wyss advises.
• Mistaking refinance appraisals for the market value. Lenders
often estimate the value of homes at a higher level than it's actually worth
to encourage refinancing. Ask your real estate agent for the most recent
information regarding property sales (similar to yours) in your community.
"This will give you an up to date and factually accurate estimate of your
property value," she said.
• Forgetting to "showcase your home." When selling your home, make
it look as pleasant and move-in-ready as possible. Make necessary repairs.
Clean. De-clutter.
Says Wyss, "A poorly kept home in need of repairs will surely lower the
selling price and will even turn away some potential buyers. In spite of how
frequently this mistake is addressed and how simple it is to avoid, its
prevalence is still widespread."
• Using the "hard sell" while showing. "Don't try haggling or
forcefully selling. Allow prospective buyers to comfortably examine your
property," Wyss said.
Buying a house is always an emotional and difficult decision. Instead, be
friendly and hospitable. A good idea would be to point out any subtle
amenities and be receptive to questions.
• Trying to sell to "looky-loos." A prospective buyer who shows
up because they saw a for sale sign likely isn't interested in your
property. Buyers who don't come through a real estate agent, typically are
six to nine months away from buying. They just want to see what's available.
Chances are, they still have to seller their house, haven't been to a lender and may not
be able to afford a home yet.
"Your real estate agent can distinguish real potential buyers from lookers
because they will take the time to determine a prospective buyer's savings,
credit rating, and purchasing power. If your agent fails to do so, you
should investigate on your own, avoid wasting time investigating and
questioning on your own, and get a new real estate agent," Wyss said.
• Being ignorant of your rights and responsibilities. Know the
details of the sales contract. They are legally binding documents that can
be complex and confusing. Know your responsibilities before signing the
contract. Can the property be sold "as is"? How will deed restrictions and
local zoning laws affect your transaction? There's much more to know.
Wyss said, "Not knowing can end up costing you a considerable amount of
money."
• Signing a listing contract with no escape clause. Hopefully
you will choose the best real estate agent. However, stuff happens. Perhaps
you misjudged your agent. Perhaps the agent has other priorities. In any
case, you should have the right to fire your agent. You are the boss. He or
she is your employee. You should also have the right to select another
agent. Many real estate companies will simply replace one agent with another
one from the same company, without consulting you.
"Take control before signing a real estate listing contract," Wyss said.
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