Do you have plans of selling your home in the near future? Whether your goal is to downsize, move to a new location, or capitalize on a thriving housing market, it’s essential to steer clear of any home selling mistakes that might lead to financial loss, time wastage, and unnecessary stress. You don’t have to unnecessarily complicate the process or settle for a price lower than your home’s true value. Here are some home selling mistakes you should avoid.
While real estate agents typically command a substantial commission it’s generally not advisable to attempt selling your home independently, especially if you lack prior experience.
It might seem tempting, particularly if you’ve come across numerous “for sale by owner” signs either in people’s yards or online.
A competent agent typically holds your best interests as a priority. They will assist you in establishing an equitable and competitive selling price for your home, thereby increasing the likelihood of a swift sale.
Furthermore, your agent will possess greater expertise in negotiating home sales, enabling you to secure a higher sale price than you might achieve on your own. Should any complications arise throughout the process, a seasoned professional will be available to manage them on your behalf. Lastly, agents are well-versed in the intricacies and potential pitfalls inherent in real estate transactions, ensuring a seamless progression. As a result, there will be no unwarranted delays or unexpected legal ramifications in the transaction.
Underestimating the costs of selling
One of the home selling mistakes that owners make is when they underestimate the costs of selling. The overall expenses associated with selling a home can exceed the commonly anticipated 5-6% in agent commissions. When factoring in closing costs, necessary repairs, and potential concessions to the buyer, the total costs involved in selling could approach approximately 10% of the sale price.
For instance, if you transition to your new residence prior to selling your previous one, you might need to cover expenses such as renting a temporary accommodation or managing both mortgage payments, along with additional carrying costs like utility bills, HOA dues, taxes, and storage expenses. Discover more about the option of trading in your home to mitigate these financial burdens.
Utilizing our home sale calculator allows you to estimate your net proceeds—essentially, the amount you’ll retain after accounting for selling-related expenses. This knowledge, obtained before you list your property, can assist you in determining the optimal selling approach and provide you with a clearer understanding of the funds available for your next home purchase.
Setting an unrealistic asking price
The desire for maximum value often drives sellers to consider an ambitious initial asking price. Giving in to this temptation may yield less desirable outcomes. Going for a steep price might deter prospective buyers who could otherwise be strong contenders. Furthermore, in a scenario of limited buyer interest, an excessively high-priced property may linger on the market, potentially resulting in added expenses or necessitating a later price adjustment.
Skipping Major Repairs
While tasks like removing carpets and painting walls are relatively straightforward, addressing significant issues is equally important. Repairing foundation cracks or replacing the roof might involve substantial expenses, and you might hesitate to undertake them, especially when the entire cost might not be fully recuperated through the sale.
However, it’s wiser to address these concerns preemptively rather than having the buyer request a credit during the closing to account for the repair costs later on. This approach grants you more control over the choice of professionals handling the job and the overall repair expenditure.
Moreover, replacing key features before listing your property offers an advantageous selling point. Replacing the roof prior to listing could ultimately prove more cost-effective than the deduction a buyer might make from their offer. The expense of the new roof is likely to be offset by the increased sale price.
Skimping on Staging
Although the notion of staging a home might not initially appear significant, underestimating this step can lead to a huge mistake in the process of selling a home. Why? Because the act of staging your home has the potential to accelerate its sale and command a higher price. A noteworthy 48% of seller’s agents attest that staging contributes to a reduced duration the property spends on the market, and an additional 44% of agents affirm that staging can generate offers with a range of 1 to 5% more than anticipated.
Hence, it’s advisable to avoid presenting potential buyers with an empty, cluttered, or inadequately illuminated house. Instead, maintain your existing furniture arrangements (or reorganize them thoughtfully), declutter the space, and ensure optimal light in every room. If you lack furnishings for display, consider renting some from a staging company to offer buyers a glimpse of the potential ambiance if they were to make it their own.
Moreover, consider applying a fresh coat of paint to rooms that might require a touch-up. While your family may have favored a pink bedroom, a potential buyer might not share the same inclination for pastels. Investing in a professional paint job or embarking on a do-it-yourself painting venture represents a minor expenditure that could translate into several thousand additional dollars in the eventual sale price.
Clearly, there are multiple pitfalls to be aware of when it comes to selling your home—some of which can have significant financial repercussions. However, armed with knowledge about the most significant blunders, you’re now equipped to take the opposite path and steer clear of them.