Selling your Delanco New Jersey house through an agent? Make sure you read this blog post that reveals 4 mistakes you should avoid when listing with an agent in New Jersey…
If you’re looking to sell your Riverside, New Jersey house, or if you’re an agent who is selling houses in Delanco, New Jersey then here are 4 mistakes you should avoid when listing with an agent in New Jersey…
First, Don’t Assume That You Can Sell Right Away
The market varies and can even shift from one day to the next, depending on a number of factors. So make sure you set realistic timelines about how long it will take to sell. Gone are the days of only recently when some houses were sold in 2 or 3 days on market, or less! We’ve always said the real estate market is hyper-local. What that means is you may live in Smallville, USA and houses are flying of the shelves, but in Mediumville, next door, houses just aren’t moving. This phenomenon can occur even more locally, like neighborhood to neighborhood and even street to street.
If you are a seller, assume it will take months for the sales process to be completed – from fixing up the house to showing buyers to negotiating to setting a closing date to moving out. If you are an agent, be careful not to over-promise a timeline to your sellers – set their expectations.
Second, Don’t Assume That The Asking Price Will Be The Selling Price
The asking price is the starting point in the sales process – it establishes what a seller wants to sell for. Again, up until recently, most sellers could expect to get asking price, and in many cases more than asking price. But this is not occurring as often as it was only a year ago. In fact, although the media claim house prices are plummeting, one really has to look at the data. If your house would have sold at 2% above asking last year, and this year fetches 2% below asking price, is that really a plummeting of housing prices? Everything is relative, and everything is hyper-local. So again, it depends on where you are.
Some parts of the country are seeing bigger declines of 10% or more. But many more areas are simply returning to a normal market. What this means is houses will stay on the market a little longer on average, and the seller is no longer in control. Buyers may have more control, but at the same time, there is still a dearth of inventory, and relatively high interest rates which diminishes a buyers purchasing power.
If you are a seller, realize that the actual selling price might be different than the asking price. If you’re an agent, make sure you explain this to your sellers. As an agent, it is in your best interest to be straight with your clients and don’t sugarcoat the environment.
Third, Don’t Assume All The Money Goes Right Into Your Pocket
Some people make the mistake of assuming that the selling price (minus anything they owe on their mortgage) is pure profit. But this is not true.
If you are a seller, make sure you know that there will be agent commissions, closing costs, and other fees you’ll have to pay. If you’re a real estate agent, make sure you explain to your customers. We use a round number of 10%. This includes agent commissions, settlement fees, house inspection repair items, etc. So if you want to know how much you will net from the sale, you can estimate about 10% less than the actual sales price. Your realtor should be able to provide you with a seller net sheet as well. If he or she doesn’t, maybe you need a new realtor. But definitely ask for one.
Fourth, Don’t Assume That The First Offer Will Go Through
Buyers often make offers and then discover that they can’t get financing for some reason.
If you are a seller, be prepared to have one or two buyers fall through before a buyer can be found. If you’re a real estate agent, prepare your sellers ahead of time by explaining this so they can be ready in case it happens. Again agents – be straight with your customers, be upfront and honest. Although it is scary, your customers will appreciate it more.
Summary
Whether you’re a property owner looking to sell, or you’re a real estate agent who is representing sellers, these are 4 common mistakes that can happen during the sales process – so make sure you’re aware of them.