Just like any good business operation you need a plan and to set some goals. And selling your house is no different. Because if you go into the whole selling process with your seller’s eyes wide open, you’ll be able to see very clearly where you’re going, and what it’s going to take to get you there.

Goal setting is important even when selling property

Time and time again home sellers fail to ask themselves; “What’s the number one thing I need to get from the sale of my property?”

You’ve probably got a few selling goals in mind even if you’ve never spoken about it out loud. For most of us the final sale price usually ranks right up there. As a property investor myself, I have 2 main goals. First for me is a good (albeit realistic) sale price. The second goal I set for myself is a speedy sale. After all, who wants to live in a show home for days, weeks, or even months on end?

Two of my favourite real estate experts, the US mother/daughter real estate team, Donna and Shannon Freeman, suggested this list of common home seller’s goals in their book ‘Seven Steps to Sold’ that I believe are completely relevant no matter where in the world you live;

1. Make the most money (I’m inclined to call this one ‘getting what you think it’s worth’)
2. Sell quickly
3. Time the sale (for a concurrent settlement)
4. A smooth real estate transaction
5. Finding the right buyer
6. Put the best product on the market 

In this first post in a series, we’ll look closer at goal #1.

Let’s start with a real life example of making price the #1 selling goal. There’s a home I know of just around the corner from my own, where the owners have based their selling strategy on making the most money. As someone who likes to keep a watchful eye on my local real estate market, I know that similar homes in the area are selling at a whopping $125,000 less than this property’s original asking price.

Is the final selling price all that matters?

Since that time, the home owners have been forced, not only to lower their price by $45,000, but they’ve also had to do what in the beginning, they didn’t want to do – put what they called the dreaded ‘for sale’ sign on the front lawn. A third marketing tactic has been added to the mix now too, the ‘open for inspection’.

It’s a classic mistake. Home owners who based their asking price on what they feel they deserve get, instead of what’s going on in the current market.

So what’s the real price paid for such a lofty, ‘must get top dollar’ ambition?

• Well, so far, 7 months have passed since the home was first listed on the market and along with that went the chance of a speedy sale. There still isn’t a lot of interest in the property, despite the big price adjustment. It this boils down to the fact that the last 7 months have been a complete waste of time for everyone concerned.
• The property has inherited a stigma. House hunters often ask how long a property has been on the market. When it’s been on for a long time, they naturally begin to wonder what’s wrong with it.
• The owners have had to carry all the holding costs associated with this home. Because the owners bought when the property market was more buoyant, the size of their mortgage is likely to reflect that. 
• They’ve had to put any future real estate plans on indefinite hold.
• These owners have been living in a ‘show home’ for seven, long months.
• But here’s another risk that these sellers haven’t considered. As Designed To Sell’s Donna Freeman says, you should be praying that the Beverly Hillbillies come down of the mountain ready to blindly offer you well above market value. That’s because, they’re about the only ones who will have enough cash on hand, to avoid having to take out a mortgage.

So what’s the problem with that you ask? Well, their lender is going to have their investment valued, and you can bet your house on the fact it will be lower than your contracted sale price. From there, it’s pretty much all downhill, and you’ll have to start the process all over again.

Moral of the story; think very hard about having price as your number one goal, you may end up paying a price you hadn’t budgeted for.