Tuesday, January 10, 2012

5 Real Estate Deal Killers - and What Sellers Can Do To Prevent It


OK, so you’ve decided to sell. Your property is not in distress, and you still have equity you want to protect. It’s a major decision, probably one of the biggest ones you’ll ever make and you want to do it right. The difference between a sale or no sale often rests on a only few key factors. Become familiar with these deal killers and you jumpstart your efforts as you towards your goal of closing the sale.
  1. OVERPRICING is the single biggest problem a seller must overcome. You might think your condo is worth the big money it used to be, back before the real estate market sank. Unfortunately, times have changed. With all the information available on the Internet, buyers are profoundly aware of today’s market prices. You need to get serious. TIPS: Visit the competition by going to Open Houses in similar buildings; check out listings for similar properties online and in the newspapers; and contact multiple real estate agents and get their opinion on your price.
  2. CLUTTER, DIRT, AND ODOR can take thousands off the price, and at worst case make buyers run away. This is a big purchase in a bad market so it’s up to you to make sure your condo shows favorably: clean, sweet smelling and clutter free. TIPS: Clear out all the unwanted stuff, donate or pack away your old collections, make sure table and counter tops are bare. Banish old pet beds, air out stale odors and use neutral air freshener (nothing too flowery).        
  3. HIGHLY PERSONALIZED TASTE can kill a sale. Sellers can run into problems when the decor is too unique to allow the buyer to imagine himself or herself living in the home. Unusual wall colors, floor and window treatments can be a turn-off. (it always makes me laugh when watch HGTV and I see Buyers walking through a home for sale and their biggest complaint is the color, but that is what people see...so don't fight it, fix it). To get top dollar in your neighborhood it’s important to “neutralize” your condo to conform with popular tastes. TIP: Check with local real estate agents and prepare a checklist of work that needs to be done inside and outside the property. The real estate agent can help you prioritize the list before you make a big investment in pre-sale remodeling. Also consider hiring a professional home stager. Do whatever will bring you the best return for the changes you make. 
  4. MISLEADING DEAL INFORMATION is a sure-fire deal killer. Photos that are highly edited or property described as an “approved” short sale when a bank approved a previous offer and will require new offers to go through an approval process again, are common examples of misrepresentations. TIP: It is important for Sellers and Agents to be upfront and honest. Enough said! 
  5. OVERBEARING SELLERS can easily and often inadvertently queer a deal. TIP: Back away and let the real estate agent do his job. 
These 5 Deal Killers above are in the seller's control. There is however another issue that kills many deals that is not in the seller's control - many appraisals are coming in less than contract price due to the large number of distressed property sales. This is a big problem with financed purchases. So pricing the property correctly is even more important.

Ray Princiotta is a licensed Florida real estate broker with Accelerated Realty, Inc.
If you have any questions, contact me at 305.494.4101 or ray@rayonrealestate.com

2 comments:

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