7 Denver Real Estate Listing Mistakes to Avoid in 2009
Those who don't learn from history are doomed to repeat it, the old proverb goes. So when you’re preparing to list your Denver home this spring, it's a good time to consider some of the more common things "not-to-do" as you plan for a successful home sale.
Here are my picks for 7 Denver Real Estate Listing Mistakes to Avoid in 2009:
1. Not understanding the length of the buying/selling process. It’s natural for sellers to assume theirs is the one house every buyer will love. Be optimistic – but realistic. Buyers might love your sunny kitchen but want a larger or smaller backyard. You just never know. So listen to your Realtor – if we find 12 closed transactions in the past 90 days and 21 currently listed on the market, we know that an average of 4 houses are selling per month. Given the sales trends, the chances that your home will sell in 30 days are about 18%. A wise seller will understand the time-on-the-market averages and plan to keep the house in optimum showing condition for a minimum of three months.
2. Exposing your hand. Never share your selling motivations with neighbors or passers-by. Every Realtor has a story that goes, “We were walking toward the house when the neighbor stopped us and told us they had to move to California as soon as possible. So we knew the sellers were highly motivated.” Whether your neighbor’s information is correct or not, the damage is done. The buyers will view the property with the perception that you are willing to take a lower price for the house, and it will translate to a lower initial offer.
3. Listing High. Overpriced homes typically go unsold. And it’s easy to understand why. When buyers in Denver get ready to view homes, they reduce the list of potential showings to those that are a good value. If your home is priced above the competition, they’ll pull it from the list. Lowering your price isn’t a wise idea, either. It indicates that you are highly motivated to get an offer; “lowballs” frequently follow repeated price adjustments.
Sellers typically interview two or three Denver Realtors and they often list with the Realtor that recommends the highest price. This practice is called “buying the listing”; the agent inflates the CMA and then asks for a price reduction after putting it on the market. If your favorite Realtor wants to price the home higher than other Realtors, make sure to include a listing clause that states the Realtor will not recommend lowering the price at any time in the Listing Period. This will protect you from the dangerous practice of overpricing your home.
4. Failing to correct defects. It’s far better to discover and correct your home’s defects before listing your property than after you’ve entered purchase negotiations. If the bathtub needs to be recaulked, you can perform the work for less than $10.00. But if the buyer has determined it’s a defect, they’ll ask for $200 to hire a handyman to complete the simple task. Before listing your property, hire a licensed home inspector. Ask the inspector to provide a follow-up inspection after you’ve remedied the defects, and display the inspector’s report in a binder on your dining table. Potential buyers will be impressed with your full and complete disclosure, as well as your proactive home maintenance habits.
5. Hiring the wrong agent. Sellers should interview several Realtors, small and large. Get references and success stories. Remember the SEED qualities in an agent: smart, experienced, empathic and dedicated will get the job done right. Choose the one that communicates effectively with you and knows your market thoroughly.
6. Not knowing what you're signing. The sales contract is a legally binding document. Review it carefully. The Colorado Real Estate Commission’s contracts are standardized, but each purchase offer is customized to the buyer’s advantage. Expect your Realtor to negotiate effectively and make sure you understand each clause before signing the document.
7. Failing to prepare and maintain the home. You’ve watched HGTV. So has your potential buyer. And they arrive at your doorstep expecting your home to be clean, free of clutter, bright and inviting. The Denver real estate market is stronger than many other cities this year. But it’s still a competitive market. Turn the market to your advantage by preparing your Denver home for sale. Give it a fresh coat of paint. Replace the outdated light fixtures and doorknobs. Sweep the porch and fill the planter with flowers. And give us a call, we’re always here to help.