Mistakes to Avoid When Selling Your Home
Selling your home can be very time-consuming and emotionally challenging, especially if you’ve never done it before. At times it may feel like an invasion of privacy because strangers will come into your home, open your closets and cabinets, and poke around. They will criticize a place that has probably become more than just four walls and a roof to you, and, to top it all off, they will offer you less money than you think your home is worth.
With a complex and emotional transaction on your hands, it’s easy for home sellers to make lots of mistakes. However, with a little know-how you can avoid many of these pitfalls. Here are some pointers on how to sell your house while getting the highest possible price within a reasonable time frame without losing your mind!!
Don't Sell on Your Own - Hire an Agent
Of course, as a Real Estate Agent, I am going to recommend this, however I know it can be tempting to try to save some money and sell your home on your own. So what exactly are you paying for when you hire an Agent?
A good Agent will also have professional photographers which is key to making a good first impression on potential Buyers. They will also have a marketing plan in place and material for your home.
Setting an Unrealistic Price
Setting the right asking price is key. Remember the comparative market analysis your agent did when you bought your home to determine a fair offering price? Buyers will do this for your home too, so as a Seller you should be one step ahead of them.
Overpriced homes generally don’t sell and is the number one mistake that sellers make. Don’t worry too much about setting a price that’s on the low side, because in theory this will generate multiple offers and bid the price up to the home’s actual market value. In fact, underpricing your home can be a strategy to generate extra interest in your listing, and you can always refuse an offer that’s too low.
Expecting the Asking Price
Any smart Buyer will negotiate, and if you want to complete the sale, you may have to play ball. Most people want to list their homes at a price that will attract Buyers while still leaving some breathing room for negotiations—the opposite of the underpricing strategy described above. This may work, allowing the Buyer to feel like they are getting good value while allowing you to get the amount of money you need from the sale.
Of course, whether you end up with more or less than your asking price will likely depend not just on your pricing strategy but also on whether you’re in a Buyer’s market or a Seller’s market and how well you have staged and modernized your home.
Hiding Major Problems
Think you can get away with hiding major problems with your property? Any problem will be uncovered during the Buyer’s inspection. You have three options to deal with any issues. Either fix the problem ahead of time, price the property below market value to account for it, or list the property at a normal price and offer the buyer a credit to fix the problem. If you don’t fix the problem in advance, you may eliminate a fair number of Buyers who want a turnkey home.
Not Preparing for the Sale
Sellers who do not clean and stage their homes throw money down the drain. Don’t worry if you can’t afford to hire a professional. There are many things you can do on your own. Failing to do these things can reduce your sales price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a broken doorknob or dripping faucet, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either.
Not Accommodating Buyers
If someone wants to view your house, you need to accommodate them, even if it inconveniences you. And yes, you have to clean and tidy the house before every single visit. A Buyer won’t know or care if your house was clean last week. It’s a lot of work, but stay focused on the prize.
Not Listening to your Agents Advice
When it comes to negotiating a fair price, setting a price, knowing when to accept an offer, which photos to display and how to market your home, a good Agent will have experience with this and be able to advise you accordingly. Of course these are all things that you, as a Seller, should play a role in, however not listening to your Agents advice can cost you a sale. You are paying them for a service, let them help you!
It’s easy to get emotional about selling your home, especially your first one. You spent a great deal of time and effort to find the right one, saved up for your down payment and furniture, and created many memories. People generally have trouble keeping their emotions in check when it comes time to say goodbye.
Also, try to remember how you felt when you were shopping for that home. Most Buyers will also be in an emotional state. If you can remember that you are selling a piece of property as well as an image and a lifestyle, you’ll be more likely to put in the extra effort of staging and doing some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price; they’ll also help you create emotional distance because your home will look less familiar.