4 Rookie REALTOR ® Mistakes Sellers Should Watch Out For

Dated: 01/03/2018

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If you're planning to sell your home, you should know that the realtor you choose can have a great impact on how the process goes. Rookie realtors and others that are less experienced are prone to making mistakes that could cost you thousands.As a seller, it’s important to carefully consider a realtor’s background and track record before deciding on one that you want to work with.Below, we’ve listed out some of the most common mistakes that rookie realtors make so that you can be aware of the potential issues that could arise when working with a novice.

1 - Pricing Your House Too Low

Buyers often say, “Everything sells in four or five days in our neighborhood.”To a rookie realtor, that sounds like a great thing. However, to a more experienced realtor, situations like these offer all kinds of great potential. Our team knows that our job is to push the price barrier to your benefit - not settle for the first offer that comes along.Even in low inventory situations where each seller gets multiple offers, the goal shouldn’t be to sell your house in 10 minutes - it should be to maximize the net-proceeds you receive within your timeline.This means that a realtor needs to do more than rely on the CMA - the price per square foot calculation that gets pumped out of a computer program by their broker. A great real estate agent is committed to understanding their market. They stay up-to-the-day intimate with the pulse of the market and how it’s changing.

2 - Reducing Your Price Too Early (And For the Wrong Reasons)

Price reductions should be determined by supply and demand, not a predetermined calendar date. This means that your agent needs to stay deeply engaged in your regional market.The passage of time shouldn’t determine your home’s selling price. The price of your home should be based on supply and demand in your market.By waiting for just the right amount of time, your home might prove to be priced just right.

3 - Failing to Negotiate to the Full Benefit of the Seller

Great real estate agents know when to push and when to give in. Realtors without a lot of market knowhow tend to be more likely to back down early in the negotiation process. In cases like these, they fail to get their clients the best possible deal that they could.By setting up a contract that puts the seller in a strong position, great realtors set their clients up with a huge advantage compared to those that leave their contracts in the buyer’s advantage.

4 - Not Knowing and Understanding Contractual Obligations and Negotiable Terms

Real estate transactions are legally complex when you consider all the negotiable terms that can be involved. Rookies are eager for a closing, veterans are wisely positioning their clients to win both small and large victories.The worst thing is that could happen is having a buyer  back out before a closing. My primary goal when selling your home is to make sure that four things happen. I set things up so that, ideally, we:1 - Attract the Best Possible Offer2 - Ensure that the Offer Contract is s Beneficial to Us as Possible3 - Wisely Obtain Every Piece of Profit for the Seller (Maximizing Your Proceeds)4 - Contractually Protect Your InterestsHere’s the bottom line: I make sure the buyer shows up to closing with what they promised. The contracts I arrange encourage buyers to stay committed to what they said that they would do.Rookies don’t know how to position themselves to get the most for the sellers with the best possible buyer. They’re not sure how to hold people accountable to the terms of contracts.  One of the ways that I accomplish this is by arranging offers that involve non-refundable earnest money to be invested on the buyer’s part. This minimizes the potential for financial loss that many buyers suffer when a closing falls through.

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