Avoid These Common Mistakes When Selling Your Austin House Fast
Real estate transactions are lengthy and convoluted. Overly complicated in my opinion.
This is a cynical view but not an uncommon one. An off market transaction (our specialty) although typically much quicker can be plagued by the same issues. We take the mystery out of the process by offering straightforward advice and transparency.
There are a few common mistakes I see consistently when talking to home owners who want to sell their house fast in Austin.
Providing misleading information. This is the most common mistake I see sellers make and it’s a significant one. I understand why sellers keep their information guarded but it’s ALWAYS counter productive.
If you’re behind on payments or facing foreclosure and you tell a prospective buyer that you’re looking to downsize they’ll know it’s false. They won’t need 10 years of experience or superhuman intuition, the information is public. We’re experts, we’ll figure it out.
In our due diligence process we check to see if the property is in foreclosure and we can even find mortgage amounts. What we find is not as important as the precedent that’s set when misinformation is provided. This is the definition of getting off on the wrong foot and there’s a high cost for a bad reputation.
Incorrect pricing. This mistake is usually due to a lack of information in location, physical condition or market conditions. Real estate pricing is based on comparable sales. This is how it’s always been and will remain for the foreseeable future.
Pricing can change just by walking across the street. When we meet with sellers they often reference homes that were sold nearby and what they sold for based on hearsay. We have access to information that allows us to view all transactions listed on the MLS.
We don’t value list price as a metric because you can list a house for any amount. The only value that matters is the amount someone is willing to pay for it, the SOLD price. We only look at comparable sales, meaning completed transactions.
We’re dedicated professionals who’ve spent thousands of hours valuing properties and we have access to information that most people don’t. Most home buyers that have access to this information will be straightforward and transparent and if their valuation is different than your own then there’s probably a good reason.
The sales data we use is very specific: size (within 250 sqft), year built, beds/baths, lot size, layout and etc. All these factors go into our analysis; nothing is anecdotal, it’s all backed by market data.
Incorrect repair estimate. We’ve been in hundreds of houses and managed dozens of renovations. We know the cost of hiring a reputable contractor based on experience. Sellers often provide their own repair estimates based on material costs but their values don’t factor in labor, profit and overhead. I’ve been in properties where a seller will tell me it needs $10,000 in repairs when it actually needs $30,000+.
We’re not hiring your brother in law to do the work, we hire professionals.
Another influential component of pricing is how fast you need to sell your house. If you’re facing foreclosure and need the house sold in 7 days then you shouldn’t expect to get market value. When dealing with home buyers you’re basically trading price for time. All of our past clients have one thing in common: they understood they would sell us their property at a discount because we could buy their property fast with cash in as-is condition.
Choosing the wrong home buyer. The real estate industry has a very low barrier to entry. To become an agent you need to take some classes, pass a test, join a broker and you’re ready to start representing buyers and sellers.
Becoming an investor is even easier. Most have only learned about real estate online or have gone through a weekend seminar. Neither of these provide actual experience but they provide enough information to get started as an “investor”. The ease of entry into the industry leads to high turnover and issues due to inexperience.
Investors are generally one of 3 types:
Newbie, charlatan or professional. This first two are not really “investors” and they have no idea what they’re doing. The only difference is the charlatan has a surface level of knowledge and perhaps a connection to a professional with hopes to lean on them for advice. But they don’t have knowledge to perform a complex real estate transaction without significant guidance.
Simply put, you can recognize the newbie almost immediately but you may not recognize the charlatan until they make a mistake in the transaction. And they will.
Both the newbie and the charlatan will tell you what you want to hear. Not because they’re trying to deceive but instead because they don’t know what they’re doing. The newbie and the charlatan act this way because they are generally desperate. Either to get the experience of their first deal or because they’re broke.
A professional will tell you what the house is worth whether you agree with them or not. They’ll be able to tell you why it’s worth that amount, with data. They won’t give you wide price swings in their negotiation either.
They’ll be able to tell you when they can close and the title company they use. They will be able to assist in the transaction and answer any questions necessary. They will be consistent and “professional”. Selling your house to an investor is simple but picking the investor is harder.
Avoid these mistakes and you’ll have a fast, smooth transaction.
We’ve been buying houses since 2015 and strive to offer superior customer service. We communicate in a straight forward manner and offer fair prices.
You can learn more about our process here.