8 Common Mistakes Denver Sellers Make When Listing “For Sale By Owner”
The appeal of selling your Denver house without having to pay an agent’s commission is pretty great. However, most Denver sellers don’t realize how complex the selling process is and they end up making some pretty serious mistakes when attempting to sell their own homes. While the lure of saving money on a commission is tempting, it’s important to remember that real estate agents sell homes for a living, so they understand the process inside and out. When Denver sellers decide to list “for sale by owner,” these are the eight most common mistakes that they make.
Listing at the Wrong Price
Unless you get seriously lucky or you devote plenty of time to studying pricing and the Denver market, there is a good chance that you will list at the wrong price. You can hire an appraiser to help you price correctly, but a real estate agent can also perform this service for you. There are two ways that you can price incorrectly: overpricing and underpricing.
Many for-sale-by-owners overprice because they are emotionally attached to their properties and because they want to see the most money they can for the upgrades and improvements that they have made over the years. However, unless you make the “right” improvements, you run the risk of overpricing for features or amenities that aren’t in demand.
On the other hand, some for-sale-by-owners shortchange themselves by underpricing their Denver homes because they do not understand the market.
Using Poor Quality Photos
The vast majority of Denver buyers today begin their home search online, and the very first thing they look at are the photos that accompany a listing. If you don’t immediately impress potential buyers, your home will be passed over. Buyers are drawn to photos, and high-quality photos drive more showings. Just because your phone has the ability to take photos and post them online quickly, doesn’t mean that you should use it. Hiring a professional photographer will provide the best photos, videos, floor plans, etc. which buyers expect to see.
Not Making Enough Time
Buyers want instant gratification and expect info when they want it. When people want to see a home, they expect someone will respond to their inquiries and will show them properties at their convenience. However, most for-sale-by-owner sellers make the mistake of showing their property only when it is convenient for their own schedule, not the buyers. If you are unable to communicate in a timely fashion and work around a buyer’s schedule, you need an agent to do the work for you.
Not Qualifying Buyers
People look at items they can’t afford all the time, and houses are no different. Real estate agents will weed out unrealistic buyers by getting their financials and determining whether or not they are creditworthy. Denver sellers not using an agent often do not qualify potential buyers. Most buyers are reluctant to share their financial information directly with sellers, but they will work in concert with agents and their lender to validate their qualifications.
Being Too Emotionally Involved
It’s incredibly difficult to separate emotion when selling your own home. All of the memories and milestones often make it too hard for sellers to think logically and to realize that selling their home is simply a business transaction. Denver sellers think of their property as their home, not just another house on the market. They have an emotional attachment to it, and when they try to sell it, the facts get lost in the emotion.
Not Knowing How to Show a Denver Home
You may be an expert on your home and know how to give a guest a tour, but showing a home is a completely different process. Some prospective buyers want to be given an information tour, but others may want to look around the home on their own and ask questions at the conclusion. Additionally, many buyers are not comfortable being candid with a homeowner about their concerns or issues with a home. This creates a communication problem, and the homeowner loses a valuable feedback loop on how to better show the home next time.
Marketing the Denver Home Poorly
If selling your own home was as easy as putting a sign in your yard, everybody would do it. Selling a home takes a good deal of marketing and many homeowners don’t use all the options available. Using websites, fliers, open houses and mailers are all ways that you can market your home.
Not Working With a Buyer’s Agent
Even if you aren’t using an agent to sell, there’s a good chance your buyer will be using an agent. Most buyers’ agents don’t like working with FSBO sellers because they think these sellers are difficult to work with and require extra time over working with a listing agent. Additionally, many FSBO sellers don’t offer a buyer’s agent commission and if they do, it’s incredibly low. If agents aren’t getting paid, they are less likely to encourage the sale.
Listing your own home may sound attractive, but in reality, it’s an incredibly complex and time-consuming process. Even if you manage to sell, you may not end up saving much money because you may price incorrectly and receive far less than your home is worth. While it’s possible to sell on your own, hiring a professional real estate agent makes the process simpler and more lucrative.