Common Pitfalls in Real Estate

We easily blame the moribund state of the real estate market for our difficulty in selling our real estate property. This may be true in many instances. However, there are certain variables that most of us fail to consider when we are putting our property on the selling block. Before we finally attribute to the down market our inability to bring in prospective buyers for our real estate property, it is crucial for us to do some house cleaning and assess the things that we have done and have not done in regard to the sale of our property. The depressed condition in the market is not the only reason why we fail to get a good deal. In most instances, buyers make mistakes and errors in judgments which ultimately result to breakdown in the negotiations with prospective buyers.

Mistake #1. Pricing your Property out of the Market

Price is king in as far as real estate selling is concerned. This is especially so during times when the market is going through extreme lows and highs. Being a seller, you will naturally want to get the most out of the sale. Unfortunately, you may end up outside of the buyer’s radar range if you price your property excessively high. Worse, prospective buyers may develop unrealistically higher expectations from the property you are offering for sale.

Mistake #2. Inability to Keep an Open Mind

Buyers tend to react and resist low offers from hard-nosed buyers. Most of the real estate sellers who fail to make significant headway in their offer to sell are those who are not able to handle prospective buyers who engage in hardball negotiations. In most instances, negotiations break down and no deal is reached. In these times when buyers dictate the tempo in the market, you must anticipate every possible scenario in your negotiation with prospective buyers.

Mistake #3. Failure to Link with the Right Buyers

One of the major reasons why most deals don’t push through is the failure of buyers to raise the agreed amount for the real estate property. Your prospective buyer may actually have a poor credit rating or does not have sufficient liquidity to meet the down payment. In which case, you end up with a botched deal and together with it all the lost opportunity of finding a better and more qualified buyer.

Mistake #4. Failure to Make an Effective Real Estate Showcase

This is probably one of the most unforgivable mistakes that a buyer can commit. Before you even make any move, you must have to make sure that your real estate property definitely meets the basic requirements of a valued property for sale. Look at your home from the standpoint of a buyer and assess all the things that may turn you off from buying the property. Most basic things that must be attended to are the basic repair, repainting and cleaning of the house and its surroundings. An unkempt and rundown property will never attract serious buyers.

Mistake #5. Hiring Unreliable Brokers

Your real estate agent is supposed to be your strong and reliable link to the most qualified potential buyers of your property. Unfortunately, buyers fail to see the importance of due diligence when it comes to their real estate agents. You must only hire the services of brokers who have the initiative, capability, experience and network to create the opportunity that can give you the best deal with the most qualified buyers at the shortest possible time frame.

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