Most people sell an apartment or house once in a lifetime. They have no experience and often do business with loosing money.
Mistakes, committed by apartment or family houses owners when they try to sold, are repeated over and over again. A follow-up report will outline what's important when selling a real estate to be careful not to lose money and also to compare how everything will unfold with the help of an experienced broker and without it.
1. I SELL THE PROPERTY BY MYSELF
Most people sell real estate once in their life. If you belong to them, remember how most of the activities you did for the first time (for example, the first car ride, the first repair of an appliance). You tried the best you knew, but the result was pitiful. If you try to sell your own property yourself, it can happen similarly.
By yourself: You publish an ad. Enter your phone number and call several dozen real estate agents on the first day to convince you that they are the best ones to sell your property. After 3 days it will bother you and change your advertising. You will delete your number so you can rest assured. What will happen? Mostly nothing at all, because many more buyers are watching paid Internet search engines. So in other words, you will lose a lot of time completely, and in addition you will be disgusted. And that's just the beginning.
With the broker: Choose carefully who you are to sell your property (see Article 10 Steps to recognize a Professional Real Estate Broker). The moment you entrust the sale of your property to the experienced broker you have chosen, you save time, money, and especially your nerves. Not only will your property appear on the most searched paid servers, but no other broker will call you, no one will ever push, persuade and bother you. And I would point out that callers sometimes choose completely abnormal time for the call, including weekends and holidays. And this will be spared.
2. INCORRECT TIME OF SALE
Selling a real estate is a complicated matter where the correct timing affects significantly the sales price.
By yourself: You decide to sell your property (for whatever reason) and you make this decision. If you are selling for the first time, it is quite possible that you do not realize how important things are, such as the conditions of sale of real estate with lien, the season of sale or the mortgage market. All of these aspects have a significant impact on sales revenue. Because of this ignorance you can lose quite a lot of money.
With the broker: The first thing the broker will look for is a sheet of ownership, and if he discovers a lien, he will ask you for the terms of sale, as in most cases the sale by the bank is penalized up to hundreds of thousands of Czech crowns. Sale without penalty is possible only at the time of interest rate fixation anniversary. If you are in a hurry to sell a property and the fixation anniversary is unrealistic for you, the broker should be able to advise you on how to minimize your potential loss. The return on the sale of real estate is also dependent on the season you sell. The broker should advise when is the best time to place your property on the market. Example: It does not make much sense to offer a holiday property for sale after the end of the season (September, October); you will get a higher price at the beginning of the year (March, April) when demand and price are the highest. An experienced broker monitors the situation on the mortgage market and should advise you when it is worth selling and when it is worth buying.
3. BADLY SELECTED ADVERTISING
Many people think that when selling a property, it is enough to put an ad on the internet and the bidders will sign up for themselves. Unfortunately, this is a big mistake.
By yourself: You capture real estate and you usually place it on a free advertising portal. Place the photo randomly with some brief description. A lot of owners, unfortunately, do not realize the darkness of their photographs, personal belongings and mess, or pets.
With the broker: An experienced broker prepares your property for home staging. It then selects a maximum of 10 photos that will capture the essence of the property. Not for nothing is said tha the photographs sell. The presentation will be professional with a valuable description, a clear price and will be placed on the best paid real estate portals.
4. TOO LOW OR HIGH PRICE
Of all the mistakes you can make, this is the most serious. In both cases, you will lose money. If you sell your house or flat too cheaply, you will be unnecessarily prepared for money. But you can even lose money if you say a disproportionately high amount. Each of us wants to get the maximum price for your property, but if you set it too high, you will discourage it. And you will not get them back either by lowering the price later. Interested buyers will buy another property in the meantime.
By yourself: the first thing you will do is to look at other properties that are currently available and compare the price. Based on this you will determine the price of your property and unfortunately wrong. If you set the price too high, you will discourage it immediately.
With the broker: setting the right price requires information and experience. An experienced broker knows that in private ads prices are upset by up to 12%, and he also knows that ultimately the sellers will get a lot less money than they actually advertise. An experienced broker should be able to do first of all a good market valuation of a real estate where the comparison needs a lot more parameters than just compare the current market offer. After making this assessment, he should propose a slight increase in the sales price. This allows you to negotiate and reduce the price if the candidate is willing to pay immediately and in cash.
5. INSUFFICIENT PREPARATION FOR SALE
Buyers often assess the value of the property according to the first impression. The neglected property therefore prompts them to ask for a discount. The house that the owner carries on confirms the asking price. If buyers are interested in buying a choice of two or three properties that meet their basic requirements, they will also begin to compare the details. And just looking after the details, we can influence whether to buy your house and how much it will pay for it.
By yourself: most of my owners do not pay too much attention to prepair a property for a tour. The reason may be the fact that they just do not have the time.
With the broker: An experienced broker should advise you on how to get your real estate to leave an excellent first impression. And just fine adjustments. If the property is empty, the changes and modifications you can make are not expensive. Most of these "tricks" are simple and inexpensive (decorating rooms, complete cleaning, disassembly, ventilation, lighting). The goal is to make your apartment or house look spacious, clean, neat and attractive. Five or ten thousand crowns and several hours of work that you invest in improving your real estate may, in my experience, increase its sales price by 70 to 100 thousand crowns. If the property is not empty and you live there, there is nothing easier than to clean, vent rooms, and make a flat before inspecting it. The smell of pets and clutter is the worst for the clients.
6. PERSONAL RELATIONSHIP TO PROPERTY
By yourself: your personal relationship with real estate can be very damaging to you. It will be known on tours, and those interested will feel like intruders.
With the broker: An experienced broker understands that selling your property to you is not easy for you. Most owners have a very close relationship with the property, and unfortunately it will be known on tours. As I've already said, those interested feel like intruders who have broken your privacy and they simply do not feel good about it. An experienced broker should be able to explain to you that it will also be easier for you if you do not take part in the tour and at least partly contribute to your better mental wellbeing.
7. INEXPERIENCE IN NEGOTIATION
By yourself: Once you will start selling the house, the buyers will start to talk to you and have a lot of questions during the day, during your working hours, in the evenings and at the weekend. It is therefore good to prepare for a multi-week marathon telephoning. Besides phones, there is a waiting for you to talk with people interested. Those interested will start touring, but ten of them who agree on the date and time will only come seven people to my experience. One is a speculator who offers you a ridiculously low price. To three people your offer will not fit. Two will be interested, but they have to ask the bank whether to borrow money. And after this tell you that they will not get mortgage. And only one will be a solvent candidate. Terrifying, right?
With the broker: With the broker, you are spared phone calls, because this is his job. He is on the phone all day and answers questions or arranges tours. In addition, an experienced broker in a few minutes will know who has on the other hand whether a speculator, a real estate tourist or a person who is really interested. There is a so-called selection where the broker will bring you to a really serious buyers. Not 10 people, but maybe only two. The goal is not to bring as many people as possible, the goal is to bring serious candidates and save your time.
By yourself: You have found a serious candidate and start negotiating. Every candidate will naturally test if the price is "real and final". So some of them will start to criticize your house, dirty your work and attack your knowledge, others will try psychological tricks to force you to discount and others to squeeze just before signing the treaty or just simply cease to exist. They will not respond to your phone calls or emails. This is unfortunately nowadays common practice.
With the broker: the broker finds a serious candidate and begins negotiations. They are also trying to test whether the price is final or they want a discount. An experienced broker knows what he can afford and how to argue to defend your interests. At the moment of the agreement, the reservation agreement is signed and the person is booking the property on the basis of a reservation deposit or a commission. The majority of clients do not understand the term of the deal, most people think that the broker wants only a lot of money for the tour, which is not true. There is plenty of time for the commission, and the broker is responsible for quality and safe trade. The main reason is, however, to show a serious interest to the client, who is sufficiently motivated to close the deal. Here, it is not possible for a client to wake up one day and say that he does not want to buy real estate at all. He has already lodged a deposit and has certain rights and obligations under the contract. How confident are you when you are sell this by yourself? It may happen that you will cancel all tours because you have a serious candidate. But maybe he will pull you to the nose, he has not put down any deposit, so he can easily withdraw from the signing of the contract and you have lost time, money, and have appealed to other customers. Does that make sense to you?
8. BAD PURCHASE CONTRACT
The fastest way to come up when selling a property for money is to sign a poorly prepared purchase contract.
By yourself: You will make a purchase contract to your lawyer. They are mostly known or lawyers offering "cheap" services. Unfortunately, too often I have seen that a lawyer usually only has minimal knowledge of real estate law. If a poor purchase contract is prepared, it can cost you a lot of money. It does not really cost a lawyer to save.
With a broker: An experienced broker has contract with a quality lawyer who specializes in real estate law. These lawyers are pretty expensive but qualified, and that is important. Experienced lawyer also knows that the law protects buyers from hidden property defects. If there is a drain or a damaged electricity supply, these defects in the sales contract should be mentioned. If he / she will not be there and the buyer subsequently proves that the hidden defects that the seller has hidden from him / her, he / she may ask for a part of the purchase price after several months or years. On rare occasions, he can even withdraw from the entire contract and ask for his money back.
9. INADEQUATE PAYMENT SECURITY
By yourself: the risk of selling a property is always a money transfer. If you agree that the property right will pass to the buyer before he issues the money, you risk not having a house or money. If you are thinking about selling through a real estate agency, the biggest mistake you can make here is to deposit the purchase price in the custody of the real estate agency. While money is saved at a real estate office, your money is usually not separate from other office property. In the event that the estate office ends in bankruptcy and bankruptcy, you will become only one of the creditors.
With the broker: An experienced broker would never offer you a deposit at a real estate agency. He would recommend either a notary or a lawyer's custody. Bank accounts, letters of credit, and liens are also popular. In the case of notarial or lawyer custody, clients' money is always deposited in a special account, and both the notary and the attorney are legally insured against the law in the event that they cause damage to the client by performing their profession (liability insurance).
10. IGNORANCE OF LEGAL OBLIGATIONS
By yourself: You sign the purchase agreement yourself, the funds are transferred and the deal seems to be closed. But what, for example, the husband / wife's consent? Even if the partner is not listed on the Letter of Ownership, you acquired the property during the marriage, so you need your consent to the sale. In addition, as of January 2018, the pre-emptive right again, did you know? Your purchase agreement may therefore be void. And that's just the top of the iceberg.
With the broker: The first thing that will be of interest to an experienced broker is whether you are married and whether the property was purchased during your marriage. The law unfortunately allows, in addition to those listed on the Letter of Ownership in the Land Registry, to have other people affected by the sale. In order for sales to proceed smoothly, it is necessary to have appropriate permissions and documentation from these persons as well. Therefore, if you are selling property acquired during marriage to the joint property of spouses, it is necessary that both spouses express their consent to the sale. In addition, if you sell a share of the property you have negotiated with your other co-owners, you are obliged to offer it to the other co-owners first. Otherwise, co-owners may also sell your stake even after it has been lodged in the court for relative invalidity and claim damages.