First Time Home Sellers: 8 Things They Are Getting Wrong When Selling Their Albuquerque Home
(Transcript Snippet): “Tego:
Somebody thinking to sell their home. What there was, I, I guess it was something to put together by realtor.com. They put some data together and eight things that
Tracy:
First time sellers,
Tego:
First time sellers, mistakes they make. And let’s, let’s dive into that.
Tracy:
So I would say that a lot of what they’re saying in these eight bullet points is not just first time sellers. It’s like how many people have sold a house before, but haven’t been in this type of market when selling a house. Right? So the first one that they say is overpricing the property. Sure. And, and it’s so true. We have people going well, you know, it’s a great market. I wanna get this much for my house over pricing. It still makes your house overpriced. It can still sit on the market and need a price reduction. And this market, if you’re on the market for a few weeks, we had one earlier this week where one of our brokers was writing an offer and it was 22 days on market. And we were like, wow, 22
Tego:
Days, what’s wrong with that house? Why is it on the market for 20? I mean, yeah. In today’s market, that’s a long time, you know, unless it’s a higher end home, but yeah.
Tracy:
Well, even then higher end homes are selling quickly now as well. Yeah. So overpricing, doesn’t typically net you the most, what we have seen is if you price for or the market based on the current statistics and how things are selling for top dollar you will probably get as much as you’re asking for or more, but if you overprice it, you’ll probably end up lower than if you marketed it at market price.
Tego:
Well, you think about the auction effect, right? And if you, if you overprice something and there’s no bitter, then you have to start reducing, reducing, and you may end up reducing. And now you’ve lost that initial, you know, surge, excitement and surge of, of the the bid. So what was the second thing
Tracy:
Skimping on showing? So we know that the harder you make it to show your home, the less showings you get, right. Or if we limit the times or, or how many people can be at the home at once or whatever putting those restrictions on is gonna O obviously limit your offers. So we wanna make sure that we make the house available to, to get you the most staging. Slipups is number three. So a lot of times people think the market is so great. I don’t need stage my home. Well, you’re still gonna be leaving money on the table if you do that because people are still very emotional and how the house feels smells, looks to them, makes a big difference. Even with limited homes on the market. Number four is seeing only dollar signs. So the big path is channelizing, but money, isn’t everything. There’s a lot of other details in offer or the whole transaction that need to be taken into consideration. If you’re packing up your whole house and you’re planning to leave. And three days before closing the buyer cancels on you, that’s a big expense. You’ve already, you know, you’ve got a mover you’ve already packed up your house. It doesn’t look like showing condition anymore. So we wanna make sure to look at any offer that you receive on your home in totality, not just the price.
Tego:
And, and let me just say that, you know, in this market where the sellers are very much, you know, it’s definitely a seller’s market sellers definitely have, you know, a little more control on, on how they can dictate what they want for their home. And, and I think that the, for me, what I heard was, it’s not just price. It could be some other terms. It could be being able to stay in the home after closing. It could be a closing date in the future that, that works better for you. What, whatever it is. I think sellers need to think about that. Maybe they can dictate some of the things other than just getting the most money for it.
Tracy:
So number five, ping on an I impla implausible offer implausible.
Tego:
I really like that one. Yeah.
Tracy:
Implausible is kind of hard to say, but pouncing on. So, you know, you get an offer. It’s funny because we had a house listed in the 300,000 range and we got an offer that was, you know, significantly high. But it didn’t wa appraisal. It didn’t, it didn’t give the security to the seller that that offer price was ever gonna close at that price. So, you know, unless they’re waving an appraisal, but even then they can still back out if they just don’t feel good about what they jumped on, because we know there’s a lot of buyer remorse. I can go buy a pair of shoes and have buyer remorse. So, you know, running out and beating everybody to be the one to be able to buy that house. There is a lot of remorse that comes up. And so we have to be really careful that we picked the right
Tego:
For sure. Client,
Tracy:
For sure there yep. For sale by owner they say for sale by owner blenders it’s interesting because in this market, we don’t have a lot of, for sale by owners. No, very few. And that part of that Tego is what you started with. It is complicated selling your house. And in this market, if you put a sign out for sale by owner and you get 10 offers, you know, are you really able to crunch through them and decide who’s got the best lender? What terms are really normal in this market? And what’s going to be a, a real offer that can get to closing. Right. Right. And to make sure that we cast the net wide when we list it for you and not for sale by owner, we’re casting a net very wide to make sure that we get every possible buyer’s eyes on that property so that we do net the seller the most.
Tracy:
And a lot of times sellers feel like they’re saving that 3% or whatever, a listing agent charges. Cause they’re all different. But it it’s, it’s like, well, they usually end up paying 3% to a buyer’s agent because most buyers want that representation. Right. And somebody’s gonna have to facilitate the transaction. And oftentimes they give up that 3% in the price right away, because they feel like they’re saving it and they can negotiate more. So it’s not necessary. Number seven, spacing out on the new place, if you’re all set to sell where’s your next move. So making sure that we know where you’re moving to is
Tego:
Basically what that is. Well, and, and I think people are very acutely aware of that. And I think that’s one of the reasons we don’t have as many homes coming on the market as we potentially could, you know, it’s like, yes, they’d like to sell, but the inventory so low, they can’t find anything to buy.
Tracy:
Yep. And we have lots of solutions to help with that. Yes. so just call us and we’d be happy to talk about how to, how to navigate that number eight. The last one that was in this article, assuming this hot market will last and, you know, we, we don’t have that crystal ball. We do know that all the indications are that it’s going to stay a seller’s market for a while. We don’t see that changing, but things do change quickly. Sometimes we don’t know until it’s hindsight.
Tego:
I don’t know. I spend a lot of time trying to look into that crystal ball and I can tell you right now, based on what I’m seeing with active inventory, 2020 to a certain extent to me is already in the books from that we are gonna have price appreciation for 2020 based on what I’m seeing right now, again, it’s that whole, you know, sands the black Swan event or something that happens. But right now, you know, the, the demand is still strong even with, and yeah. And kind of changing subject here. But, but even with the increase in interest rates that we’ve seen just recently demand still seems strong. It looks like prices are gonna continue to increase. It’s just a matter of how much and how fast they’re gonna increase.
Tracy:
So Tega, when you say the black, a black Swan event, I can’t help but think about COVID right.
Tego:
I know. I mean, that was it. Home
Tracy:
Prices still went up yeah. 15 that year.
Tego:
Well, you know, what’s really interesting about this too, is, is people say, well, recession, recession, recession’s coming. Yeah, of course recession’s coming. Recession’s always coming. It’s just a matter of when. And, and the thing that’s interesting is if you actually look at recessions and what happened with home prices and those recessions for the most part home prices actually can to go up during recessions, except, you know, you, you look at the, the, the 2008 nine, you know, that, that recession, but that was caused by housing versus recession, slowing housing.
Tracy:
Right.