Selling your building is one of the most important transactions of your life.
To conclude a sale quickly, at the best price, and reduce the stress associated to the sale of your property, we suggest avoiding the eight following mistakes:
Choosing a broker for the wrong reasons
It is imperative to trust the real estate broker representing you. You have to have faith in his abilities and experience. You need a broker who can easily explain to you the entire listing process, a broker who knows the market really well, has a pool of potential buyers and can give you sound advice to increase your chances of selling. Do not choose the broker who provided the highest evaluation. Choose a broker who provided you with a fair evaluation and who can supply the best performing tools.
The asking price is too high or too low
Setting the asking price should not be taken lightly. Asking too much is as harmful as not asking enough. You have to know that the average buyer will analyse 15 to 20 properties before making a decision. If your property does not compare favourably to other ones in the same price range, potential buyers will not take you seriously. The results: your property will stay on the market longer and buyers will have the false impression that something is wrong with your building.
Choose a real estate broker that offers the highest price
One of the oldest tricks in this business is to hold the promise of a “very good, almost too good” selling price. The contract is signed and then, the price is reduced. Inform yourself on the latest sales of houses similar to yours in the neighbourhood and find out the asking prices of your competitors. It’s not you or the broker that will buy the house but a potential buyer. The selling price will be determined only by the market.
Inadequate preparation of your building for the visits
The owner seller controls the quality of the product and the listing real estate broker controls de quality of the marketing efforts. Each year, North-American companies spend billions of dollars in product presentations and package designs. The look is vital. You can’t relocate your property and it would be very difficult to change the layout. However, you can improve the look:
- Clean the common areas, the staircases, the laundry, etc.
- Pick-up, rearrange, place and repair.
Correcting little imperfections might seem insignificant, but it can produce a very favourable first impression on the potential buyers. The decision to buy a property is more emotion than logic.
Miscommunicating the information about your building to potential buyers
One of the most important reasons to entrust the sale of your property to a real estate broker is to take advantage of his expertise in advertising and specialized marketing tools. Make sure your real estate broker is available and advertises in the largest internet network.
Applying undue pressure on the buyers as they visit the property
Nobody likes being pressured, particularly when buying a building. Buyers could wonder why you are such in rush to sell. If you follow the buyers in their steps while providing all kinds of details that seem important to you, such as a new water heater or a large garage, you will make the buyer uncomfortable. Let the buyer discover the building on his/her own.
Hide some defects in the property
As the owner seller, make sure you reveal everything. The informed seller will take the lead and inform the buyer of any known defects that could impact the value of the property. Then, the buyer can fill in his offer to purchase with confidence and adjust his budget accordingly. This will facilitate the process of the inspection of the property.
Not knowing our financial limits to buy the next property
80% of people sell their property with the objective of buying another one that better fits their needs. Will you have an important penalty to pay to your financial institution for an early refund of your mortgage?
When you put your building on the market, establish clearly your objectives with your real estate broker and start the research process. Deal with your financial obligations with a mortgage broker and reserve your interest rate for the upcoming months.