Listing Mistakes To Avoid

Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. Depending how long ago the appraisal was done, it may very well be outdated. Your best bet is to ask your Realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.  You could also order a “re-sale” appraisal once on the market. This would allow you special advertising of “Below Appraisal”. By listing at just under appraised value.

Not Knowing Your Rights & Responsibilities
It is extremely important that you are well informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount time and/or money.

Pricing the Home Based on What the Seller Wants to Net
Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the actual sales price is determined by reality of the market. The McNabs will guide you to make the best decisions when pricing your home.

Hiring an Agent Based on Non-Business Factors
Make sure you're hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure he has a mentor to keep your deal from going south.

Getting Emotionally Involved in the Sale of the Home
This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of many years.

Trying to Cover up Problems, Not repairing them or Not Disclosing Them
Arizona has a seller property disclosure form (SPDS) -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky roof, or dilapidated heating/air system that's discovered 30 days after settlement.

Not Getting “Your Ducks in a Row” Before Trying to Sell
This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties apply, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa. The McNabs will help you know what current market activities are.

THE BIGGEST MISTAKE SELLERS MAKE: Overpricing
Sellers are often tempted to ask a higher price than they know their home is worth. "Perhaps someone will pay it", highly unlikely. "Buyers will bargain us down anyway", not necessarily.

In fact, overpricing your home is one of the biggest mistakes you could make. If you know what your home is truly worth, you should set your price no more than 5% higher. That's plenty of wiggle room when it comes time to negotiate. In some markets, even that may be too high.

There are lots of reasons why overpricing won't work to your advantage:

An Overpriced Home “Doesn’t Attract Buyers”
By overpricing your home, you will be missing those buyers that are searching “within their price range” and may miss yours, even though you priced it high to assuming the buyer will “bargain you down”. Those who can afford the asking price learn they can get more for their money on a properly priced home. Those who can't afford the inflated price won't bargain. They just assume the home is out of their price range.

An Overpriced Home Loses the "New on Market" Advantage
A home sells best during the first 60-90 days after it goes on the market. A backlog of buyers is waiting in the wings to look at homes as they come up for sale. If your home is overpriced at the start, you'll lose these buyers-and you'll lose the early advantage.

An Overpriced Home “Sells the Competition”
If your home is the highest priced in the area, it may have to sit there unsold until all the similar (but more realistically priced) homes have sold. Since new ones keep coming on the market, this could continue indefinitely until you reduce your price.

An Overpriced Home “is Difficult to Finance”
Even if a buyer is willing to pay the high price, an appraisal at that price may be difficult to get and lenders may balk at a loan commitment. This can endanger the sale weeks after the home is "sold" (under contract and in escrow).

An Overpriced Home Gets "Stale on the Market"
Buyers may think there's something wrong with your home if it takes too long to sell. Eventually you might have to reduce the price below market value to overcome that impression. You'd lose twice, with a lower sales price and a longer sales time.