Buying or selling a home is an emotional transaction. As a Realtor, I have had times in my career where seeing the joy a new home can bring to a family has brought a tear to my eye. OK, so I am a softy at heart – but don’t tell anyone
I have also noted though that at times the greatest hindrance to the sale of a home can be a seller who is seized by emotion. It is so important for sellers to keep in mind that a real estate transaction is most likely the single largest financial transaction they will ever undertake. It should be viewed and handled primarily as a business transaction, with cold, hard decisions being made on a financial and investment basis.
Home sellers who allow emotions and sentimental attachments to overtake them during the sales process run the risk of making hasty, sometimes poor decisions.
Here are some tips to help any home seller avoid making emotional mistakes that could cost money.
1. Overpricing
We all have the best home in the best neighbourhood! It’s human nature to think we have the best, why not, we’ve worked hard to achieve it, right? Remember though, getting top dollar maybe the dream of every home seller. But getting a buyer to pay a premium for features that are valuable only to you? Well, that’s closer to fantasy.
Overpricing often occurs because of emotional reasons. Many sellers make the mistake of thinking that their home is special and that a special buyer will pay more because they also fell in love with the property.
The truth is prices have nothing to do with the seller’s emotional affinity for the property, and its important sellers understand that as early as possible.
Sellers who bought at the top of the market likely won’t see that same price from today’s buyers.
It’s a different market. If a seller bought their home during the market’s peak, they may have to face the unappealing prospect of losing money on the sale in today’s market. This is a difficult position for a seller to be in, but it’s one that reflects today’s reality.
2. Attending a showing
There are a lot of legitimate reasons why a seller might want to be present for the home’s showing. But having a seller there tends to sour the experience for most buyers.
Sellers are sensitive when buyers nit-pick flaws. Sellers think that every little thing is a complaint against how they may have maintained a property. The reality is that observations from buyers – though sometimes harsh – have nothing to do with the person selling the home.
Sellers should use their Realtor to insulate them from the process, filter relevant information and only meet the buyers when there’s a serious offer on the table.
Having a seller present for an open house or the first (or even second) showing tends to stifle potential buyers from expressing opinions. After hearing negative feedback, some sellers reject offers for emotional reasons. Sellers should use their agents to insulate them from the process, filter relevant information and only meet the buyers when there’s a serious offer on the table.
3. Rejecting early offers
Sellers take note: The longer a property sits on the market, the worse the offers are likely to get. Once a property is marketed, it will receive the most attention during the first two weeks. The home is new to the market, and any buyers that have been in the market for a home will see it come up. If it is priced right, an educated buyer will see the home as a good fit and will put a serious foot forward.
Sometimes early bids run the risk of spooking sellers who worry they underpriced their properties. You can tell the property was priced correctly when an early offer is near the asking price, as long as the asking price is in line with the market.
Waiting for a better offer is counterproductive and can result in a property languishing especially in the current market.
4. Home sellers, don’t take offers personally
When you’re selling your home, it’s easy to take everything personally. But doing so is a big mistake. Sellers need to become emotionally detached very quickly from their homes. By its very nature, a real estate transaction is aggressive and confrontational since the seller wants the highest price and the buyer wants the lowest.
That negotiation almost always means a buyer will point out every flaw with the property. But while hearing that information may sting a little, it’s really a good sign, because it means the buyer is serious.
A seller needs to be ready to hear criticism of their lovely home and be able to deal with it as a negotiating tool and not take it as a personal affront and walk away from a potential sale for emotional reasons.
The local real estate market is making a shift. For a full insight into what’s happing across Prince Edward Island, to get a marketing valuation on your own property or just to discuss the real estate market in general, don’t hesitate to give me a call on 902 394 7071. Better still, you can make immediate contact by pressing the blue CONTACT button at the bottom of this page.
Photos: Canva
This article is not intended to solicit buyers or sellers currently in contract with other members of thePEIREA. Using this article in full or part without permission is a violation of copyright laws. Copyright © 2019Melanie Press Real Estate.
