Don’t Let Sellers Misbehave

OVERPRICING THE LISTING

This is the most common error sellers make. I would rephrase that to “it’s the most common error agents make” because agents have the choice NOT to take an overpriced listing. This usually happens when the agent needs the sale and they will do anything to get the signature. Overpricing a listing is postponing the seller’s disappointment. They will not be happy when they see other listings being sold and theirs goes stale. Postponing their sale means they are postponing their future plans.

NOT PREPARING THE HOUSE

Thinking you can bring a house to market without doing some much-needed repairs, decluttering or staging would be a mistake. Sellers often hesitate to spend money on the house when they are about to sell. At this point, they just want to take as much money out of the house as they can without putting any money back in. If your sellers are not willing to follow your advice on how to prepare the house, it is not their fault, it’s yours. You couldn’t clearly communicate how investing a little now to prepare the house will net them much more when they sell. No seller wants to throw away money on an asset they are selling, so it is up to you to convince them of the best way in invest a nickel to get a dime back.

NOT DISCLOSING OR DENYING REPAIRS

No one wants to buy a lemon. That’s why car dealerships have developed “certified pre-owned” vehicles to give buyers the confidence to purchase a used vehicle. In my opinion, a home would be more attractive if it was “certified”. Most buyers can’t afford to close and do extensive repairs afterwards. It is fair to assume that buyers will do a home inspection to identify potential problems. If your sellers refuse to acknowledge that repairs are needed, it will only derail the sale. 99% of problems that exist in a house are known by the seller. If they do not disclose relevant issues on the seller disclosure forms, they are only asking for trouble. If buyers ask about specific things and the sellers give vague answers, it will only cause suspicion and the buyer will likely back out. Buyers don’t want to buy problems. When you tour the house before you list it, you can typically spot most issues that require a second look. Don’t allow the sellers to ignore these issues. You must clearly communicate that ignoring issues that will come up during inspections will only complicate closing.

MAKING IT DIFFICULT TO SHOW

If the seller insists on limiting the days or times that their property can be shown, or they refuse to put a lockbox on their property, or they refuse to keep it show ready for last-minute showings, then you haven’t counseled them properly. Every roadblock they put in the way of easy access is costing them money. If your seller wants to limit the days or times for showings, you must clearly communicate that they potentially risk losing a buyer to another property that was available. People will buy what they can see, when they want to see it. If they refuse to put a lockbox on the property and insist you be there for all showings, you must clearly communicate that buyers and their agents will feel intimidated with you in their space. They won’t feel comfortable having meaningful discussions while they are in the property, and it is those discussions that influence the sale. If they refuse to keep the house show ready (doing the dishes and making their beds every morning) then you must clearly communicate how by not doing so they will only attract lower offers.

HOVERING OVER SHOWINGS

You’d be surprised how many sellers stay in the house when it is being shown. Two things happen. Either the sellers pretend the buyers aren’t there and continue to go about their day (watching TV or cooking dinner), which makes the buyers feel like they are intruding. No buyer wants to feel like they’ve disrupted a seller’s life. Buyers needs to see themselves living in what could be their house, not someone else’s. That can’t happen if the seller is lurking in the shadows. Or, the seller hijacks the sale and wants to tour the buyers around the house. In both cases, it is counter-productive to the opportunity. Simply put, you must INSIST sellers vacate when the house is being shown. Don’t even give them the option to stay.

COMPLICATED NEGOTIATIONS

Ultimately, the best negotiations result in an accepted offer. However, sellers can often be unreasonable and get tangled up in the weeds. They may want to change every term when they counter an offer, trying to nickel and dime the buyers. It is at this critical moment that you must have a frank discussion with your sellers about the effect every change will have. Don’t just change the offer based on what the sellers request, question EVERY change. You must explain the consequences of their decisions. Is it worth fighting over a $500 fridge? Is it worth losing the deal over a closing date that isn’t perfect? If the negotiations become distracted by too many little disagreements, the buyers could easily walk away. Don’t lose sight of the end game – a SOLD SIGN.