3 Key Emotions Around Selling Property And How It Can Cost You!
It is important to realise that listing your property for sale will probably be one of the largest monetary transactions you will ever be part of. When selling your property you should take it seriously and choosing an agent should be done carefully, so do your research.
One of the biggest things to keep in mind is to not let your emotions overtake you while you are in the process of selling your home, as you might allow yourself to make an unnecessary hasty decision, which could cost you money. It is essential to separate your love/emotion for your home and start looking at it as Real Estate. This one tip could save a lot of heartache, stress and most of all THOUSANDS of good old aussie dollars.
Here are several guidelines to help you, the home seller, avoid making decisions based on your emotions:
1. Avoid pricing your home — based on where YOU find value
It is every seller’s dream to get top dollar for his or her property, and sure it is possible with Elders Real Estate, however finding a buyer who is willing to pay above market value for features that you value is not feasible if they don’t value those same things. Home sellers tend to put a high price on their home due to their emotional attachments which is completely understandable. Buyers on the other hand do not yet have this emotional connection to the home and will base their value of the home in comparison to others they have seen and what it offers them.
It is crucial to comprehend as early as possible that your home is placed on the market in COMPETITION and not ISOLATION. If your property is priced above market value it becomes a ping pong table as it will attract buyers due to its stunning features and then bounce them off to similar properties that are priced in line with market value. It can be a challenging situation to be in, and if you decide to hold out for the highest price, you will likely face one of two results – you could find it difficult to move on, or the potential buyers may think there is something wrong with your property. Then buyers may then end up offering at lower levels as time passes by.
Think about it, if you were a buyer and you had seen a home that has come on the market for a high price which has then had to lower that price every 2 weeks for 2 months, what would your opinion of that home be….? We see this all the time in selling real estate and it is more common than you think. I’m sure you can already think of several examples of properties like this that you have seen..
The longer the property sits on the market, the lower the offers tend to get. Typically, when a property is released to the market, it will receive the most exposure and interest in the first two weeks. Buyers who have been searching for a home will possibly view any new homes that appear on the market. If the price is right, you will get bucket loads of people to your open home, which is the perfect storm for a well-informed buyer creating an emotional attachment with your home. It is at this point the fear of loss kicks in, with all the buyers at your open home this quickly breeds competition which we then use in your favour in order to secure the best price for your home.
2. Sellers attending at the open house – This will make it difficult for buyers to be open and honest
There are many reasons why you would probably want to make an appearance at the open house. However, being there could make it difficult for the potential buyers to be honest about their opinions on your house which is what you want!
Whenever we start working on a new property going on the market, we explain to our sellers why it is not a good idea that you are present during an open house. It is a lot easier to obtain honest opinions from potential buyers when the owner is not around. It also creates a possibility that a buyer may approach you in order to negotiate you down on the price. Leave it up to your Elders real estate agent to do their job, and trust them when they give you advice, it is out of many years of experience.
3. Taking potential buyers’ comments personally – bear in mind that negative feedback is good feedback.
As the homeowner, you are likely to take it personally when buyers point out every possible flaw concerning your home. You may think that each view or comment is a complaint against how you have maintained your home over time, which is just natural. The truth is that each observation from the buyers, while it can be harsh at times, has nothing to do with you, as the home seller. Therefore, you need not take anything they say personally. There have been cases where sellers declined some offers, because they took things too personally after receiving negative comments about their home.
While it is sometimes easy to take things personally when selling something that you own, doing so should be avoided as far as possible. As soon as you decide to put your home on the market, it is essential to start detaching yourself from it on an emotional level. Real estate transactions are often aggressive and challenging given that sellers want the highest price, while the buyers want the lowest price possible.
For all the above mentioned reasons, home sellers should use experienced and reputable real estate agents to protect them from the entire process (this is how good agents earn their money). Real estate agents are able to filter relevant information, distinguish the genuine buyers form the tyre kickers and meet with the buyers only when they have received a serious offer. This helps take the stress and emotional drain that happens during this process (believe me this can become an emotional roller coaster all in one day, just ask any agent).
Emotional things to be aware of as a seller:
• Early bids can often spook you and make you think that you under-priced your property.
• The property is correctly priced when an early offer is close to the asking price, as long as the asking price is similar to the market price. It is counterproductive to wait for a better offer, as it can lead to a property languishing on the market.
• Negotiations will normally include buyers pointing out each flaw of your property. While it is certainly disheartening to hear the comments, it is a very a good sign. It typically means that the buyers are serious about the property.
It is essential that you accept that there will sometimes be criticism and recognises it as a valuable negotiating tool. At the same time, you should avoid taking it too personally and prevent yourself from walking away from a prospective sale due to any type of emotional reactions that you may have.
As real estate agents it is our job to mediate the entire selling process so that it is as smooth and comfortable for you as possible, however as an owner we understand that you are selling what may be your greatest asset and therefore there will be emotions and challenges you will have to face. That’s why we insist on working as a team with our vendors to achieve a common goal and share the load for the journey to come.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.