Here are eight Common Mistakes you can avoid as a condo seller:

1. Failure to effectively market the property. Good marketing distinguishes your condo from hundreds of others on the market, selling its benefits not just its features. Print advertising (the most obvious) and “open houses” are only moderately effective. Only 1% of homes/condos are sold at open houses, and just 3% of people purchase their homes after seeing a print ad! Your Realtor© should be using other methods as well to attract prospects. Ask your sales professional to provide a list of things they will do to market your condo.

2.  Basing your asking price on needs or emotion not market value. Many sellers base their pricing on what is termed as Subjective Value. To an appraiser, subjective value is based on emotions. For example, how much a seller paid for their condo, how much they love their condo, and overall pride of ownership is considered subjective value. Objective Value, is what appraisers use to establish the true value of a property.

Setting the asking price of a property should always be based on Market Value. Appraisers call this objective value. Objective value looks at: the condition of the property; the location; the selling price of properties with similar features in the same area; the listing price for other properties in the same area; and the overall condition of the economy and real estate market.

If your condo is not priced competitively, buyers will prefer larger or better condos in the same price range, increasing your time-to-sell. When your price is later lowered, buyers may be wary because they suspect other reasons the house has remained unsold so long.

3.  Failing to "present" the condo. A property that is not clean or well maintained often suggests hidden defects that increase the total cost of ownership. Sellers should make necessary repairs, and spruce up the unit, keep it clean and neat, or risk chasing away buyers brought in by realtors. Buyers will leave themselves a large margin for error for the cost of repairs, reducing their offer price.

4.  Over-improving your condo before you list it. Most buyers will base their decision on purchasing a condo based on how they feel about the kitchen and bathrooms. If these areas of the condo meet both their emotional and physical needs it is easier to sell. It is a good idea to get a real estate professional to do a market assessment of what your condo is worth BEFORE improvements. The next step would be to get a written estimate for improvement costs; then have your real estate professional give you an update on the market value to determine how much more money your condo will sell for AFTER improvements are made. This will let you know whether it makes sense to upgrade your condo first, and then put it on the market, or to just put it on the market for sale the way it is. RE/MAX has prepared statistics on the contribution that certain improvements make to the value. Please contact me for further information.

Sellers may spend thousands of dollars doing the wrong upgrades to their condo prior selling, expecting to recoup this cost. If you are thinking of selling, ask your realtor which upgrades are cost effective. Typically the most important and saleable areas of any condo are the kitchen and bathrooms.

5.  Choosing the wrong Realtor© or choosing for the wrong reasons. Many sellers list with the agent who suggests the highest listing price. Sellers should choose the sales representative who provides the experience and negotiating skills to do the best job. More experience could mean a higher price at the negotiating table, selling in less time, and with less hassles along the way.

6.  Failing to take the first offer seriously. Many sellers believe that the first offer received will be one of many to come; hoping to hold out for a higher price, especially if the offer comes in soon after the condo is listed. Often the first offer ends up being the best buyer, and many sellers have had to accept far less money than the initial offer much later on in the selling process. The first 2 weeks of the listing term is critical. It is this time that the condo will usually get MOST of its action. Do NOT let the sequence of the offer determine your decision to accept it or not.

7.  Using the "Hard Sell" during showings. Buying a condo is an emotional decision, and buyers are looking to see if a condo is comfortable for them. Don’t get involved in the sales process during as showing to potential buyers. Let the Realtors© lead the buyers to discover the condo's features on their own, pointing out only features they are sure are important to them. Overselling your condo during showings make buyers think they are paying for features that are not important to them and can lose the sale.

8.  Not knowing your rights and obligations. The contract you sign to sell your property is a complex and a legally binding document. An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have your Realtor© fully explain the contract or have your lawyer review it before acceptance.

If you are considering selling your Yorkville area condo please call or send an email. I would be happy to help. - PaulFerri

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