Q: What are the biggest mistakes you see sellers making in the market right now? Joan O. California
A: With mortgage financing now a reality, and many home prices being reduced dramatically, we are seeing a strong return of buyers to the market. There is still a plenty of bad press, economic uncertainty, and frankly, buyers are now getting their “revenge” from what many saw as irrational price increases in the previous several years. Therefore, the biggest mistake seller’s can make is to not listen to the market. Many sellers form an emotional attachment to their property and are not willing to price appropriately. They make comments to justify outlandish pricing such as; “my cousin Vinnie said…” “It was appraised at…” “I paid this…”; but guess what, the only “real” price for a property is the price that a qualified buyer is willing to pay! One reason that so many properties are overpriced is that many sellers do not scout the competition. It is critical to not only know the exact market conditions in the area and have a firm grasp on pricing and sales trends; but they must also see firsthand the other properties. Open houses are a perfect opportunity to do this. There is a new dedicated website for open homes in our area, it is: www.openhouse.com.mx.
Another big mistake is not prepping the property for showing. Buyers have a lot of choices these days and can be very picky. So sellers need to make sure that their property shines. Indoors and outdoors should be immaculate, and all clutter should be removed. Many sellers believe that they need to be present during showings. Wow, what a big mistake this is! Nothing gives a buyer a more uneasy feeling than a clingy seller following them around and not allowing the agent to do their job. The next big deal killer is for the seller to take negotiations personally. Buyers are routinely being tough on sellers and asking for larger price reductions, help on closing costs or perhaps even seller’s financing. It is important for sellers to take this with a grain of salt (or tequila as the case may be!) and understand that this is just part of the business transaction. It is not about the seller, it is about the buyer being careful and trying to get the best deal possible. Therefore, sellers should not sneer at offers. Sure, many buyers are making “lowball” offers right now. But that does not mean they do not want to buy the property! It means that they DO have interest and they DO want to buy the property! So negotiate Mr. Seller! Do not procrastinate and do not obstinate. Finally the sellers need to check up on their agent. Gone are the days when an agent could just throw a sign up in front of a property and expect multiple offers in a matter of days. Market conditions are much tougher now and making a sale requires sound marketing, dedication, knowledge, and superb communication and negotiation skills. Sellers should make sure their agent is a member of AMPI in good standing, get references from previous clients and interview their agent in depth before selecting the best person for the job. And once that is done, they should listen to their agent and trust their knowledge and expertise. OK, time is up for now, but don’t worry Mr. Buyer, we will have some advice for you next week!
Do you have a question about Real Estate in Puerto Vallarta? Just ask!
Active in local and national Real Estate boards; published author and acknowledged expert on Puerto Vallarta Real Estate, Michael Green moved here in 1997 to take advantage of the unsurpassed lifestyle PV offers. Mike can be reached at: pvgetaways@hotmail.com
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