How Emotions Come Into Play When Selling Your Home
Selling your home will most likely be one of the largest transactions you will be a part of, so it is essential to separate your love/emotion for your home and start looking at it as real estate.
Here are several guidelines to help you, the home seller, avoid making decisions based on your emotions:
1. AVOID PRICING YOUR OWN HOME, FOLLOW YOUR AGENT’S ADVICE
It is every seller’s dream to get top dollar for his or her property, and sure it is possible, however finding a buyer who is willing to pay above market value for features that you value is not feasible if they don’t value those same things.
Home sellers tend to put a high price on their home due to their emotional attachments which is completely understandable.
Buyers on the other hand do not yet have this emotional connection to the home and will base their value of the home in comparison to others they have seen and what it offers them.
It is crucial to comprehend as early as possible that your home is placed on the market in competition and not isolation.
If your property is priced above market value it becomes a ping pong table as it will attract buyers due to its stunning features and then bounce them off to similar properties that are priced more in line with market value.
It can be a challenging situation to be in, and if you decide to hold out for the highest price, you will likely face one of two results – you could find it difficult to move on, or the potential buyers may think there is something wrong with your property.
Then buyers may then end up offering at lower levels as time passes by.
Think about it, if you were a buyer and you had seen a home that has come on the market for a high price which has then had to lower that price every 2 weeks for 2 months, what would your opinion of that home be?
This situation is sadly more common than you may think.
The longer the property sits on the market, the lower the offers tend to get.
Typically, when a property is released to the market, it will receive the most exposure and interest in the first two weeks.
Buyers who have been searching for a home will possibly view any new homes that appear on the market. If the price is right, you will get bucket loads of people to your open home, which is the perfect storm for a well-informed buyer creating an emotional attachment with your home.
It is at this point the fear of loss kicks in, with all the buyers at your open home this quickly breeds competition which we then use in your favour in order to secure the best price for your home.
2. SELLERS ATTENDING AT THE OPEN HOUSE – THIS WILL MAKE IT DIFFICULT FOR BUYERS TO BE OPEN AND HONEST
There are many reasons why you would probably want to make an appearance at the open house.
However, being there could make it difficult for the potential buyers to be honest about their opinions on your house which is what you want!
It is a lot easier to obtain honest opinions from potential buyers when the owner is not around.
It also creates a possibility that a buyer may approach you in order to negotiate you down on the price.
Leave it up to your real estate agent to do their job, and trust them when they give you advice, it is out of many years of experience.
3. TAKING POTENTIAL BUYERS’ COMMENTS PERSONALLY
As the homeowner, you are likely to take it personally when buyers point out every possible flaw concerning your home.
You may think that each view or comment is a complaint against how you have maintained your home over time, which is only natural.
The truth is that each observation from the buyers, while it can be harsh at times, has nothing to do with you, as the home seller.
Therefore, you need not take anything they say personally.
There have been cases where sellers declined some offers, because they took things too personally after receiving negative comments about their home.
While it is sometimes easy to take things personally when selling something that you own, doing so should be avoided as far as possible.
As soon as you decide to put your home on the market, it is essential to start detaching yourself from it on an emotional level.
Real estate transactions are often aggressive and challenging given that sellers want the highest price, while the buyers want the lowest price possible.
For all the above mentioned reasons, home sellers should use experienced and reputable real estate agents to protect them from the entire process (this is how good agents earn their money).
Real estate agents are able to filter relevant information, distinguish the genuine buyers from the tyre kickers and meet with the buyers only when they have received a serious offer.
EMOTIONAL THINGS TO BE AWARE OF AS A SELLER:
Early bids can often spook you and make you think that you underpriced your property.
The property is correctly priced when an early offer is close to the asking price, as long as the asking price is similar to the market price.
It is counter productive to wait for a better offer, as it can lead to a property languishing on the market.
Negotiations will normally include buyers pointing out each flaw of your property.
While it is certainly disheartening to hear the comments, it is a very good sign.
It typically means that the buyers are serious about the property.
It is essential that you accept that there will sometimes be criticism and recognise it as a valuable negotiating tool.
At the same time, you should avoid taking it too personally and prevent yourself from walking away from a prospective sale due to any type of emotional reactions that you may have.