I've seen sellers try to play the role of the real estate broker themselves within the mistaken belief that they'll save a fee. Trying to market their property by themselves is the number 1 mistake San Diego home sellers make. The old stating, "penny wise and pound foolish" is applicable to this case. Assume you're a company owner, would you represent yourself at an I.R.S. tax review? If your vehicle had a problem with the exhaust system, would you grab your welder and attempt to fix it by yourself? If you had a significant toothache would you simply take aspirin with the hope that it would clear up by itself? Most people would probably answer no to the above questions. Of course, there are some who may answer in the affirmative on a number of these questions. Incredibly, when asked about going it alone as a F.S.B.O.seller, it seems there's a much higher percentage of individuals who believe that they'll confidently fulfill all of the functions of an educated and professional property broker.

 

The 2nd biggest mistake which I've seen homeowners make, either when selling on their own or with an agent, is determining the selling price on their home by establishing a selling price similar to other homes within their neighborhood. If you are utilizing the services of a professional property broker they will most likely have investigated not only the present comparable properties available on the market, but also the actual recently sold properties in the region. From this analysis, the broker will give you a detailed comparable marketplace analysis.

 

Just looking at a selling price for area properties isn't sufficient to determine the correct selling price for your home. The asking price of the home is simply that. Many times what the asking price was at the onset of the marketing effort is considerably different than the asking price just before the sale. In addition, there are a number of properties listed which never sell.

 

The most crucial aspect of correctly pricing your home is carrying out a comprehensive analysis of recent, similar home sales. A broker will look at not only the actual recorded sales value, but possible seller concessions, length of time the home was on the market, improvements undertaken and specific area factors that can influence the price. After all, your Mission Valley view may actually be worth thousands more than the house nearby, that in your own opinion was nicer in the outside and that you might have priced higher, without taking into account all that a broker looks at.

 

The third greatest mistake sellers make is attempting to "test" the marketplace. They will push their agent to list the home at a higher asking price for a few weeks or months to "see what happens". I hear you having a laugh, so I assume this has happened to you! In the current challenging market, improperly pricing one's home not only costs weeks of time but also lots of money.

 

Let's say a Carlsbad home seller this year talked his broker into overpricing his home in an attempt to "test the market" for a few months. For this particular example, the home was listed in July 2010. Because it was overpriced From July to September, 2010, not only did it not sell, but probably received few showings and most likely no offers. Now, considering our hypothetical example, At the end of September 2010, the agent and seller decide to reduce the property's price to the originally suggested price. The most effective advertising usually runs from March through the end of July, as most people want to be in a brand new home before the commencement of the college year. Here in San Diego, during this period in 2010, the housing market was weak and only getting weaker.

 

Throughout the three months during the 'test', other homes closed escrow at considerably lower prices compared to the original comparable marketplace analysis had shown. Just reverting to the original suggested selling price may not have resulted in getting the home sold, considering that the best seasonal advertising time had already passed, and homes in many San Diego communities were still dropping value.

 

If these types of factors really did develop, a good agent would insist upon revising their market analysis and would probably reducing the asking price and/or terms from that which was originally suggested. With this hypothetical case, the seller would find himself with a home that takes substantially longer to market and nets the vendor much less compared to what they originally might have received.

 

Sellers usually want to offer the optimum sales price within the shortest amount if time. To do this, they ought to head our advice and try to prevent the mistakes describe above. The most effective action is to select an experienced, aggressive property broker in San Diego, CA. to work in their best interests. The days when properly valuated homes would sell inside a week with multiple offers is becoming a fond memory. In 2011, you may be better served to select a properly seasoned real estate professional.