The listing price is a strategy, but many sellers think of it as an expectation. Perhaps the toughest mistake? Thinking they can make more as a FSBO.
CHICAGO – With soaring home prices and high demand, homeowners find it a great time to sell. But some sellers – particularly first-timers – may be so caught up in the “hot housing market” headlines that it clouds their expectations.
Real estate professionals shared with realtor.com some of the mistakes of rookie home sellers in the current market:
- Unrealistic price expectations: It’s a seller’s market, but that doesn’t mean a sky-is-the-limit pricing strategy will work. “First-time sellers often erroneously believe that the list price means the desired purchase price,” says Lindsay Reishman, founding partner at The Reishman Group in Washington, D.C. “In fact, the list price simply indicates an approximate appropriate price, and its purpose is to drive interest in the property.”
- Accepting the highest offer: Some buyers make giant bids to beat out the competition, but those offers can fall apart. Real estate pros say some sellers become so focused on the highest number that they overlook a bid’s reliability. Home offers can fall apart for a number of reasons, including financing, appraisals or inspections.
“In this market, it’s not uncommon for a buyer to submit an offer for a home sight unseen,” says Deborah Ann Spence, a broker at Fierce Real Estate Corp. in Bala Cynwyd, Pa. “Then, if the buyer doesn’t like what he eventually does see, the offer can be withdrawn and the property is likely to lose traction.”
- Trying to FSBO: “For sale by owner” may tempt homeowners who believe a seller’s market offers them an opportunity to DIY their home sale. However, the FSBO route could limit the home’s exposure to larger pools of buyers since FSBOs can’t be listed on the multiple listing service. And even if the home gets buyers’ attention, a real estate agent is critical to navigate the process, help with paperwork and sort through multiple offers.
Source: “8 Things First-Time Home Sellers Often Get Wrong in Today’s Crazy Market,” realtor.com® (March 9, 2022)
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