Purchasing a house is the biggest financial transaction that you will make. While many buyers make mistakes in their first-time transactions, the sellers are not devoid of errors.
The real estate sector is an ever-evolving playing field. One needs to remain at the top if they want to make investments that benefit them. In the same light, this article explores the 5 most common mistakes sellers make in a buyer’s market and how they can avoid them to get the real value out of the property they are selling.
Fist buyer is the best buyer
Numerous times, sellers do not take their first offer seriously. They keep holding out in hopes of a better offer, but multiple sources show that more than 70% of the time, it is always the first buyer that ends up buying the property as confirmed by Azhar Hameed of Latif Property.
The first offer may be far lower than what you had expected but that’s what negotiations are for. You talk and convince the party of the value of the property and so on till you both reach a mutually agreeable sum of money.
Offering credit
This is an important and often the most overlooked point. Do you have a leaky faucet or an unhinged door? Is there a need for a slight paint job? Does the cooling and heating system act up at times? If the answer to either one of the questions is yes, then you better invest the time and money to resolve these issues before you step foot on the market with this piece of property.
As a seller, you need to understand that the buyers are busy as well. They do not want to deal with maintenance work in a brand new property they have rented or purchased. If you do not resolve such issues before going on the market, this will result in the buyers pointing out these flaws and bargaining over them and further reducing the offer.
A lot of sellers offer credit against such flaws which is not the right thing to do as it lowers the selling and/or renting price. Instead of offering credits or a price cut, take out a day or two and get such issues resolved. This will result in your property selling faster and at a higher price as confirmed by M Sultan of Sultan Enterprises.
Highly personalised changes
Often, sellers make the mistake of over personalising the place they are selling. As a result, the probability of something not being useful to the other person increases significantly. If you end up making very specific and highly personalised changes, there is a high possibility that it might not work out for the buyer.
You might want to have a mini home theatre while the buyer may want the kitchen or bathroom to have new flooring. More than personal interests, it is about prioritising things that would help expedite the selling process and add value to the property itself so that it can be sold at a higher price.
Therefore the highly recommended and fool proof plan here is to think like a buyer and put yourself in someone else’s shoes for a while. This will help streamline a lot of things when it comes to selling a property.
Overpricing
While it is understandable that one would want the most out of the property they are selling, it does not mean that you end up going overboard when it comes to pricing your property.
When you overprice your house, you are not fooling anyone. Any informed buyer would be able to spot the inflated cost right away. If the asking price is too high, there is a high probability that your house would remain on the market longer which is generally frowned upon as it reflects that the said property has something wrong with it.
To avoid this, make sure the asking price is just right so that you have room to negotiate. This way you will end up attracting more buyers.
Accessibility
With the real estate market rapidly evolving, most of the people are searching online. As a result, this means that within hours of posting an ad online, you would start getting requests. Most of the people would want to physically see the property that is on sale. Making your property hard to access will play a major role in reducing the price and the image associated with it.
A serious seller must make the property easy to show for potential buyers.
Markets change. So do the sellers and buyers. A smart buyer or seller is one that adapts to the changing trends. Keep in mind these mistakes and there is a high probability that you will not end up making a non-profitable deal.
These were some of the most common mistakes that people end up making in a buyer’s market. Have you also sold in a buyer’s market? If yes, share your tips in the comments below or head over to the Zameen Forum and start a more detailed conversation.
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