9 Mistakes

The most expensive mistakes you can make when selling

When you are getting ready to put your property on the market, there are a myriad of things to think about, to prepare for and organize. Here's a short list of some of the pitfalls to watch out for!

Expensive Mistake #1 - Pricing Incorrectly

Every seller wants to realize as much money as possible when selling their farm. But a listing price that is too high often gets the seller less than a price that is market value. If your farm is not priced competitively, people looking in your price range will reject your property in favor of other, larger properties for the same price.

At the same time, the people who should be looking at your property will not see it because it is priced over their heads! Overpricing usually increases time on the market, and that adds to the carrying costs, inconvenience and frustration.

We realize this may be difficult to understand or believe, but it has been proven time and time again. For a number of different reasons, properties that have been overpriced often sell for less than market value.

Here are some questions you should discuss with your agent:

What really is market value and how do you determine market value?
How do we set the asking price?
What are the pros and cons of trying it for awhile at a higher price?
How do purchasers decide which farm to look at?
How do purchasers decide how much to offer when they have found a property they like?
Once we have accepted an offer do we need to worry about the purchaser's bank's appraisal?

Once you learn these principles, you'll know how to sell your farm for the best price.

Expensive Mistake #2 - Failing to "Show Case" the Farm

Buyers look for farms (a place to live and earn a living), not houses (wood and concrete) - they buy the farm in which they would like to live. Owners who fail to make necessary repairs, who don't spruce up the buildings inside and out, touch up the paint and landscaping, and keep it clean and neat, will chase buyers as away rapidly as Realtors can bring them.

If you were selling a car, you would wash it out, or maybe even detail it to get the highest price. Farms are no different. You must "show case" your property for potential buyers.

Expensive Mistake #3 - Using the "Hard Sell" During Showing

Buying a farm is an emotional decision. It has been said "people decide to buy a farm in the first 5 minutes and spend the rest of the time justifying their purchase to themselves". People like to "try on" a farm and see if it is comfortable for them. It's difficult for them to do that if you follow them around pointing out every improvement that you made. It may even have the opposite effect you want, by making them feel they are intruding on your private space.

Resist the temptation to talk the entire time a buyer is there...let them discover things on their own.

Make a list available to them of any hidden amenity's that they might miss, and when possible, get out of "their" house while agents are showing it, and let the buyers "move in" mentally.

Expensive Mistake #4 - Mistaking Lookers for Buyers

For Sale by Owners always get more activity than farms listed with an agent. No question about it. Realtors will only bring qualified buyers, and these will be fewer than if you open your front door to everyone who drives down the road. A qualified buyer is one who is ready, willing and able to buy your property.

An agent will ask a buyer how much he can really spend for a farm, how much he has to put down, how good his credit is, how much he can pay each month, etc..., before taking him out to look at farms

Expensive Mistake #5 - Not Knowing Your Rights and Obligations

Real Estate law is extensive and complex; the contract of sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections, and remedies for items included or excluded in the offer. You must be certain which repairs and closing costs you are responsible for.

You should also know the status of your mortgage - how much you owe the lender?...is the mortgage portable?...is there a prepayment penalty?...etc. By confirming every aspect of your mortgage, you will avoid any unpleasant or costly surprises.

Expensive Mistake #6 - Signing a Listing Contract With No Way Out

Many times an agent will have good intentions about marketing your farm, but circumstances can change. In cases where the agent couldn't or wouldn't perform, you should have the right to choose a different agent to represent you. In some companies the Branch Manager will assign your listing to someone else in the office, someone you didn't personally select, or simply refuse to release you from the terms of the listing contract. Always protect yourself by getting a guarantee of performance with the right to cancel. Be aware that listings are the property of the company, not the Realtor. Any type of performance or cancellation agreement or guarantee must have the signature of both the Realtor and the Branch Manager to be valid.

Expensive Mistake #7 - Limiting the Marketing and Exposure of Your Property

Get specific. When agreeing on the marketing that is to be done on your property, don't be satisfied with blanket descriptions and vague promises. Any statement concerning effective or non-effective marketing should be backed by statistics. Any promises made, should be made in writing.

Be specific, ask for examples of European advertising and evidence to back up claims made by the Realtor.

Expensive Mistake #8 - Believing That an Appraisal is the "Market Value" of Your Farm

An appraisal is an opinion of value for a certain purpose. For instance if you have a good relationship with your lender and they consider you a "low risk" they are motivated to have the appraisal come in high because they want to lend you money based on it. A Realtor may be motivated to give you a high appraisal hoping it is what you want to hear and work on reducing the price after you're locked in to a contract. Tax assessments are made by blanket areas, not specific properties and are regularly inaccurate.

The only way to accurately determine the "market value" of your farm is to compare it to similar "recently sold" farms in your area. If after reviewing the data you are still uncomfortable pricing your farm, you may want to consider hiring a local independent appraiser to give you an unbiased opinion of market value.

Expensive Mistake #9 - Choosing the Wrong Realtor, or Choosing Them for the Wrong Reasons

It is likely that you don't interview people very often. And yet in order to find the Realtor who is right for you, you may interview several. The quality of your farm selling experience is dependent upon your skill at selecting the person best qualified. The right Realtor will mean more money to you, take less time to get sold and keep hassles to a minimum. Choose your Realtor carefully based on the services they provide.

The sale of your farm could well be the most important financial transaction you have ever been involved with. The person you select can make it a satisfying and profitable activity, or a terrible, costly experience. It's your farm and your money, make informed decisions based on fact.

We hope that our free report proves to be helpful to you.

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