Selling your Luxury home in Scottsdale, (Paradise Valley and Phoenix) Arizona is a complicated and hot (no pun intended) process. It’s natural to feel overwhelmed by the magnitude of details involved, but the experience can be very manageable—and educational! —when broken down into its component parts and plotted out into steps. The following is a list of common pitfalls/mistakes encountered during the luxury home-selling process. Use these as a guide to help your journey remain a smooth one.
Did you know that only 60% of homes with $1,000,000+ price tag sells? That’s a D average, not sure where you went to school but where I went (shout out to Nogales high school) that’s a fail! And that percentage drops, by A LOT as the price increases, city location, etc! Juan Pesqueira
Mistake #1. Faulty Pricing:
It is essential you determine the asking price of your home based on its market value. Too many times home-sellers let emotions or needs influence their asking price, drawing from numbers based on the price paid for the house originally, or the amount of money they’ve invested in the home. This mistake may prove to be a costly one. If your home is priced significantly higher than what the market is bearing at the time, prospective buyers interested in your style of home will reject it for larger homes listed at the same price. And, those buyers who do see your house may have significantly higher expectations than what you have to offer. Ironically, over-pricing your home actually increases the chances that your home will sell for less than it is worth. Driving prospective buyers away will increase the amount of time your home stays on the market, which raises an additional red flag for buyers. They become wary of the reasons your home has not sold, thinking, “If no one else has bought it, there must be something wrong with it.” The bottom line: price it correctly, and they will come.
Be vigilant, too, of pricing your home too low: a lack of market value awareness could result in selling your home for much less than it’s worth.
Advice from Juan Pesqueira – Let me add a little more. Let’s keep in 100 here
- 9 out of 10 times the reason a house or real estate does not sell is because its overpriced or you timed the market wrong. Think about it, why did all the bank owned listings sell, even the most expensive ones? Because they were all priced right, the ones that did not sell only sold once the price was reduced, and time passed by (days on market). These bank owned prices range from $1M to $7M+. AND. All. SOLD!
- There are some homes/properties so unique it will demand the highest asking price. This home has the potential to break a record or command the highest list/sales price. You might own the largest or most expensive home in the neighborhood or city and no comps exist. This is when its OK to over price the market, its ok to demand the highest list price, but understand that it could take days or years to sell so be patient. Records are meant to be broken…
Mistake #2. Neglecting to showcase your home:
Take the time to ensure you’re offering the best possible first impression of your home to buyers. A few improvements done to your home before placing it on the market can increase the chances of selling quickly, and for more money. When buyers spot an area of your home in need of repair, they consider this perceived cost when deciding upon an offer price—if they haven’t already been scared away. And since buyers often aren’t sure about the cost involved for repairs, they will create a larger margin for error in their asking price. Sellers are always better off dealing with these repairs themselves. In addition to taking care of fix-ups, make sure the house is clean and welcoming, and the yard is well-groomed.
Mistake #3. Choosing the wrong Realtor:
Many sellers choose the realtor who tells them the highest asking price or lists/sells the most listings. This should never be the sole basis on which you choose a realtor—you must have confidence in the full spectrum of your realtor’s experience and abilities. Keep the following questions in mind: can this agent explain to you all aspects of the selling process? Does s/he have a good grasp of the market? Does s/he have access to a large pool of buyers and a marketing plan to attract them? An experienced realtor will usually cost the same as an inexperienced realtor and holding out for experience could mean more security that your ultimate home-selling goals will be attained.
Advice from Juan Pesqueira – Let me add a little more.
- Don’t shy away from agents with small boutique real estate companies. It’s easy to choose the Re/Max, Sotheby’s, the agency, etc. because they (as a company sell the most expensive properties) but these smaller boutiques bring a more intimate experience and not all the top agents prefer the larger companies.
- Don’t judge a book by its cover, maybe the best agent is not the one driving the luxury car or carries the most listings. Maybe he shows up in a Chevy Malibu or Honda civic. Some agents had to start at the bottom, not all of us/them are born into the business or had the money to market to the higher end buyers/sellers. Take it as a privilege or compliment to be their 1st luxury home client. You never know, they could be the next Walt Danley, Robert Joffe, Joan Levinson, etc.
- Ask yourself this when this when you interview your next agent, “how the hell did this guy get to be interviewed by me to list my home, how is he sitting in front of me? If this agent is new (not a friend or family) or some outsider that might not sell many high-end real estates, then he must be doing something right just to be interviewed by you. He somehow got your attention, give him/her a shot. What’s the worst that can happen? The property sells…
Mistake #4 Trying to “Hard Sell” During Showing:
Buying a home can be an emotional and stressful decision, and potential home-buyers don’t want to feel pressured when viewing a home. So, let your home speak for itself. Allow potential home-buyers to comfortably view the house and property. Don’t try haggling or pointing out every improvement you’ve made. Good realtors let buyers discover the house for themselves, only pointing out features they’re sure will be of interest and being receptive to any questions the buyers might have.
Mistaking #5. “looky loos” for “Buyers”:
Some people who look at your home may not be serious about buying. Many who view homes may just be getting a feel for the market, gathering ideas for “showcasing” their own home, or even just looking for decorating tips. Of the people who are looking to buy, those who do not come through a realtor can be 6 to 12 months away from buying. They may still be in the process of selling their own home or saving money for a new one.
An experienced realtor is trained to separate the “Lookers” from the “Buyers.” Realtors should usually establish a potential buyer’s savings, credit rating, and purchasing power. If your realtor hasn’t looked into a buyer’s financial background, you should take the time to investigate. This will save you valuable time in marketing toward the wrong people.
Mistake #6. Limiting the marketing and advertising of the property:
A good Realtor will ensure that your property is showcased and marketed in the best, most effective manner possible, employing a wide spectrum of marketing techniques. He or she should be committed to selling your property, making the effort to distinguish your home from the hundreds of other homes on the market. Most calls are received—and viewings scheduled—during business hours, so your realtor should be available to field these calls from prospective buyers. Lack of realtor availability, limited viewing times, not allowing a “For Sale” sign on your front lawn, can all affect the exposure your home gets to the pool of potential buyers, and will ultimately affect your bottom line.
Mistake #7. Being unaware of your rights and responsibilities:
It is essential that you are thoroughly aware of the details involved in your real estate contract. These contracts are often complex—but no matter how confusing and convoluted the language, the contract is legally binding. As you soon as you sign your name, you are responsible for all of its contents. Not knowing your responsibilities could cost you thousands in repairs and inspections. Have an experienced realtor explain the contract to you, or get your lawyer to review it, before you accept.
Work with Juan – Contact here…
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