5 areas homeowners lose the most money selling

Selling

5 areas homeowners lose the most money when selling their home. Number 4 has to be the toughest! 

(9-minute read)

By Emilio DiSpirito, Realtor
www.MyDreamHomeNow.com
401-359-2338
emiliodiv@gmail.com
 

After a long day of listing consultations, real estate agent Joe Fazio was planning to head to dinner when his phone rang. On the line, was a very enthusiastic seller! "Joe, you come highly recommended and I'd like for you to list my home for sale as soon as possible, when can we meet?"

Joe, eager to earn this gentleman's business, took down all of his contact information, set a time and date and spent several hours to prepare an in-depth market analysis and strategic marketing plan on the home. 

After the meeting, Joe thought it was odd a few days went by without a call, so he picked up the phone and the prospective seller said, "Joe, I'm going with the agent who gave me the highest price at the lowest commission." 

After being completely awestruck at this remark, it was apparent that the homeowner did not want to discuss any reason but was emotionally tied to what was to be empty promises. The homeowner would be listing his property 10% over market price. Joe knew what was to come.

120 days later, in a market where homes were selling in 45 days, Joe had noticed that this property was taken off the market as an "expired listing". Joe immediately called the seller who had then said: "We relisted with the #1 brokerage in the country, and we are all set". 

The home was relisted 4% over market value this time and 60 days went by, it was withdrawn and listed again the same day -3% under where Joe suggested it be priced and sold -7% less than what it should have sold for. 

These, unfortunately, are just a couple examples of how homeowners lose money. Joe and I decided to share a list of the many ways homeowners lose money when selling real estate and figured you may find this list helpful. 

Schedule your FREE Seller Consultation with one of our Proven Top Local Rhode Island Realtors Here https://calendly.com/emiliodiv/

Here is our list of the top 5 reasons why homeowners lose money when selling real estate:

1. The prospective seller went with the agent who gave them the "best price".

Listing your home above fair market value is a proven way to decrease your chances of getting the highest sales price by limiting the number of actual buyers who see your property.

PRO TIP: Get tons of online and foot traffic on your home and an accurate and FREE Fair Market Value Report of your home and learn why it's best to list it here www.MyDreamHomeNow.com/sell

2. The homeowner went with the Realtor with the lowest fee. 

The old adage "you get what you pay for" applies here. Compare services, experience, agent statistics and client reviews, side by side when interviewing multiple agents and understand which areas the "discount brokerage" is skimping on and how it will affect your bottom line. 

3. The property owner went with the "#1 brokerage in the country".

You are not hiring the brokerage. You are hiring a subcontractor called an agent who operates on his or her own business. 

PRO TIP: Ask the agent specifically where they rank in your town, county or state and what their overall sale price to list price ratio is compared to that of the median transaction in your market. Assess that information side by side with the other agents you are interviewing. There is proof in numbers and they do not lie. 
 Simply schedule a phone call with a top Realtor NOW by Clicking Here  https://calendly.com/emiliodiv/phone-or-video-call/

4. The homeowner decides to go for sale by owner aka FSBO.

According to NAR, The median FSBO sold at $190,000 in 2017 vs. a Realtor-assisted listing at $250,000. If you could invest $15,000 to make an additional $45,000 would you?
68% of FSBO homes were sold to someone they knew. When dealing with friends and family, do you charge them full price? What will your circle think? 
What if they have a Realtor? There goes 2.5% to 3% right there.
Repair requests? Attorney fees? Marketing Fees? 

5. The seller wants to sell their property "as-is", wants the highest sales price and is unwilling or unable to do the bare minimum work to get the property ready for the overall market. 

Roughly 7 out of 10 buyers are using FHA, VA, USDA financing. These are low to no money down mortgage programs which have certain health and safety requirements in order for a buyer to qualify. 
When your home is not marketable to 70% of the market, you are already cutting your odds down. 
Condition plays a large part in overall appraised value. Conventional and Government-insured mortgage programs alike will send out an appraiser who will put a fair market price on your home in which you will receive a lower price for a property in poor condition with deferred maintenance. 

 PRO TIP: Get a pre-list home inspection done on the property to fully disclose all defects and price the home accordingly. When in the position to make needed repairs, make the repairs in order to have a home that can be sold to all buyers. 

 

Schedule your FREE Seller Consultation with one of our Proven Top Local Rhode Island Realtors Here https://calendly.com/emiliodiv/

 

Leave your comments below!!