Pricing incorrectly Don't let emotional ties influence pricing rather than market conditions. The first two to four is when you'll see the most action. If your home is not competitively priced, you could miss an opportunity to sell.
Failing to "showcase" the home Pet, cigarette odors and cracking paint don't make good first impressions. The fewer problems buyers see, the easier it is for them to picture themselves as the new owners.
Using the "hard sell" during showings Don't follow lookers around pointing out improvements and great features. People want to view the house on their own.
Not knowing your rights and obligations The contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through or cost you thousands in repairs and inspections. Know which repairs and closing costs are your responsibilities.
Limiting the marketing and exposure of the property The two most obvious marketing tools (open houses and classified ads) are only moderately effective. Homes aren't generally sold by using these mediums - less than 1 percent for open houses; 3 percent for ads. Use a broad spectrum marketing plan.
Choosing the wrong agent Choose a real estate professional who is familiar with your neighborhood and has excellent marketing skills. You should be contacted often with updates about your property. A good agent will tell you what you should hear, not what you want to hear.
Not asking for a marketing plan from your agent There are many ways to market your house, and your agent will know the most effective methods. Ask for a specific plan of attack before signing with any agent.
Not Using Available Resources Even if you’re new to the industry, you don’t have to recreate the wheel. Take advantage of all the resources that are around you—from your brokerage, your colleagues, and professional organizations. Find top performers in your market or other markets and ask them to mentor you. Read each issue of REALTOR® Magazine and use all the resources available at REALTOR® Magazine Online. Each issue of REALTOR® Magazine is packed with tips from successful practitioners or trainers on how you can become more successful.
Not Maximizing Your Productivity If you look at top-producing real estate professionals who are selling 600-plus units a year, you will notice that they have two things in common: assistants and systems. These practitioners are multiplying their efforts and increasing their output through people and technology. According to the 2003 NATIONAL ASSOCIATION OF REALTORS® Member Profile, real estate practitioners who used at least one personal assistant had a significantly higher sales volume than those who didn’t. You may erroneously think that you can’t afford a personal assistant. But think again. If you can significantly increase your income by increasing your efficiency and the number of transactions you can close in a year, you can’t afford not to get a personal assistant.
Not Purchasing Equipment as a Business Entity Many real estate professionals purchase their laptops, digital cameras, or PDAs as consumers. This is a big mistake. If the technology breaks or you need help with the device, you will be sent to consumer purgatory, also known customer support. When you call customer support as a consumer, expect to waste at least an hour of your day. This purgatory is completely avoidable and unnecessary. The next time you purchase equipment, buy it as a business entity. You can do this by stating that you are a business when you purchase the equipment in-store, choosing the business ordering option online, or using the business-ordering phone number through companies like Dell. When you purchase equipment as a business, your customer support will be much better and less time-intensive. When you need help, you can call a support line that is reserved for business accounts. That means that you only spend about five minutes on the phone with ONE person, and the needed part or parts are sent overnight. In some cases, you can even get a technician dispatched to your home or office to personally fix the problem.
Not Targeting Your Marketing to Your Prospects’ Concerns If you don’t already own a copy, you need to run out and immediately get the 2003 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers. This survey gives you insights into what really matters to the typical buyer and seller. The typical mantra used in the real estate industry is, “I am honest, hardworking, and have sold millions of dollars in real estate.” According to the 2003 survey, the average home buyer or seller doesn’t care about your accomplishments. What they do care about is finding the right house, negotiating, and obtaining help with the paperwork. Your marketing should target their concerns. Obtain a copy by calling the NAR at 800/874-6500 or order it online.
No Income Buffer, Passive Income, or Nest Egg What often kills new real estate practitioners is the concept of lag time. When you sell a house, you typically don’t get paid when the contract is accepted. The average contract is written for 45 days. In a perfect world, you would get your commission check 45 days from the date it was accepted. In the real world, you don’t always get paid on time. What could go wrong? Maybe someone forgets to order the title, water certification, village inspection, pay-off letter, survey, termite inspection, or income verification. If you are in a hot market, the title company could be backed up for two weeks or longer. The closing date could be pushed back days or even weeks. A successful real estate practitioner needs a line of credit and a financial cushion of three to six months of personal expenses to survive. You also need passive income—or income coming in from investment property so that you don’t have to be desperate to close a deal. When that check finally arrives, don’t forget to put some money aside for your nest egg.
