10 Common Mistakes to Avoid When Selling Your Home
Selling your home is a big deal in your life, no matter what stage of life you are in. It can be an overwhelming process, and as you prepare to sell your home, you might feel like you are doomed to make a few mistakes along the way. You aren’t! It is possible to accomplish this and knock the sale out of the park. A lot of people make mistakes when selling their houses, and it is important to be aware of the big ones if you want to avoid them.
In this article, we will discuss 10 common mistakes to avoid when selling your home.
1. Not Taking Into Account Home-Selling Expenses
Even if you are the one selling your home and someone else is buying it, several costs are involved beyond the closing cost of the home. Assuming there is equity built up in the home, most costs will be covered by the money made from the sale. However, there are other common costs associated with the home-selling process, including the following:
- Commissions for Agents: It is common for the seller’s agents to be paid a commission of 3% of the home’s purchase price to close on the home.
- Closing Costs: Sellers will pay between 1-3% of the home price in closing costs, including taxes, transfer of the title fee, attorney fees, and a fee for whomever organizes the final transaction on closing day.
- Costs of Staging: The total cost of staging will vary based on factors such as where you live, the square footage of your home, how many rooms you wish to stage, whether you are renting decor, and the fee the staging company charges.
- Home Inspections: A home inspection is always something that should be done before listing the house, and it might not fix any problems that pop up, you will want to know about them ahead of time so you can be fully transparent with buyers to avoid unfortunate surprises down the road.
When all of these expenses are added up, the total can be overwhelming if you are not prepared for it all. However, a great real estate agent will know how to arrange your home sale with all the best costs in mind.
2. Deciding to Sell Without an Agent
Selling your home yourself can pose a big headache, and you might accidentally skip some important steps, including struggles with complicated paperwork, as well as missing the chance to make a lot more money. Save yourself the hassle of having to handle everything yourself, and hire an agent. You don’t want to hire just any agent; you will want to work with a great one.
3. An Inexperienced Agent is Hired
Helping out a family member or a great friend by letting them sell your home can seem like a great thing to do, but it is a mistake to put your biggest asset in the hands of an amateur. Only a seasoned pro with several years of full-time experience who is an expert in your market should be your first go-to.
4. The Home is Priced Wrong
When it comes to pricing a home, the process can be tricky. If you price too high, you can run the risk of turning away prospective buyers. If you price too low, you can miss thousands of dollars of profit. Don’t always trust the internet or your feelings, ask an agent for a comparative market analysis that will show you how much homes like your own in the area are selling for. Setting the best price from the beginning can make all the difference in how fast the home is sold, and how much money will end up in your pocket.
5. Major Repairs are Hidden
When it comes to big repairs that have been made on the home, there is no reason to be dishonest when listing your home. Not only is it a zero-integrity move, but prospective buyers are likely going to find out regardless. If you think that they won’t, your prospective buyer will likely get a home inspection done that will point out the issues spotted. Be honest upfront and save yourself the headache and time.
6. Relocating to a Home that You Can’t Afford
When moving, you are going to need to ensure that your new home is one that you can easily and comfortably afford. You should ideally be able to make a downpayment of 20% minimum. Your monthly payment should be no more than 25% of your pay, this can include homeowners insurance, taxes, and HOA fees. If you cannot financially afford a new home, stay at your current address and work hard to build equity before selling it.
7. Skimping Out on Staging
Staging a home doesn’t sound like such a big deal, but skimping out on this step can be a big home-selling mistake. Staging your home can make it sell faster and for more money. Don’t show a home that is empty, cluttered, or poorly lit to prospective buyers. Keep your furniture in place, clear all the clutter up, and ensure that every room is well-lit. If you don’t have furniture to show, rent some from staging companies to give buyers a general idea of what it would be like if it became their home.
8. Using Bad Photos on Your Listing
Buyers start by looking at homes online, and if your listing photos look like they were taken with a flip phone, you will lose buyer interest before pulling up to the curb. That is why it is important to work closely with an experienced professional who knows how to make your home shine from the inside out.
9. A Low Offer is Taken Personally
A buyer’s offer is not a true reflection of their opinion of your home or your housekeeping abilities. The sale of your home should be viewed as a business transaction. If they start with a low offer, don’t take it personally. Instead, you can channel your energy toward negotiations. Work closely with your agent and make a counteroffer. If they are truly interested, the prospective buyer might want to improve their offer.
10. Limiting Showings
Getting your home prepared for a last-minute showing can be a big pain, especially if you have to get more than one person ready to find a place to go when the home is being shown. If you limit showings to weekends or specific times, you might be missing out on potential buyers. This is why it is important to be flexible, even if you get an inconvenient showing request. When you do show your house, let your agent handle it and get it out of the way. Sticking around for showings won’t do anything but make people feel awkward.
Conclusion
There are plenty of great home-selling mistakes that you can fall into, and some can be unfortunately costly. Now that you know all about the biggest mistakes out there, you can take the proper precautions to avoid them, making for a recipe for success. Trust the real estate professionals at Property Sourced to guide you in finding and settling down in the home of your dreams in the many suburban neighborhoods that make up Manteca, CA, today.