You’re about to sell your luxury home. Here’s what not to do:
Have Unrealistic Hopes
If you’re going to go through the effort and time of selling your property, make sure you’re really ready to sell it. A big part of this is having realistic expectations when it comes to pricing. Some sellers are on the fence and overshoot the mark to see if anyone will bite. Others simply overvalue their properties.
There’s a difference between being aggressive and being unrealistic. Understanding pricing strategy is one of the most important things to consider when selling. If you go too high, you may wind up wasting your own time — not to mention your broker’s! In fact, it may ultimately hurt the value of your home, since it will be on the market longer and buyers will see that the price has dropped when you eventually adjust to the market.
Underestimate the Market
Every seller feels that their property is unique — and for them it certainly is! But the market may be less likely to pay a premium for the things an owner finds special about a listing. New York City, in particular, is very transparent and there are too many options, especially in a buyer’s market. Sellers should understand how hard it is to procure a serious buyer in these conditions.
Distrust Your Broker
Your broker knows the market, especially in the luxury range. You may actually be a rocket scientist or brain surgeon. But being super smart doesn’t necessarily mean you have the up-to-date expertise on the residential market that your broker does. They work with a lot of properties, know the data and have the experience to guide you. There are extraordinary professionals in the market and they have every interest in seeing you get top dollar for your property. However, if you are uncomfortable with your broker or you’re not seeing the value-add, it’s okay to move on and hire another who better understands your position and needs.
Hire an Amateur
Don’t hire a broker who does not work every single day on real estate. Transacting a property is much more complex than you may think, particularly in the high-end market. Make sure you hire someone who has the knowledge to lead a smooth transaction and the experience in attracting buyers and buyers’ brokers to listings.
Not Know Your Rights as an Owner
If you have an investment property that you’re renting to a tenant, it is imperative to know what rights your lease gives you. Go through your lease with your lawyer even before putting the property on the market. The unfortunate reality for high-end properties is that tenant abuse is remarkably common, especially when it comes to showing properties. Ensure your property is ready to show and sell before you list it and that your tenant understands their contractual responsibilities.
Lose the Big Deal Over a Little Thing
Your broker should fight for every inch of your space for your deal. That said, don’t lose a deal over a small matter. I recently saw a seller lose a multimillion-dollar deal over $22,000. In a market like this, that is simply unreasonable.
We all want to sell for as much as possible, but there are also market realities to consider. Losing a deal for a small amount compared to the total may cost you much more later. Sellers who pass on first offers assuming they will get a better one often realize too late that the first offer was the best they were going to get.
All of this goes back to trusting your broker. Find one who understands your needs and your property. They will know what they’re talking about!