Home Sellers: Don’t Make These Common Home Selling Mistakes
No matter your reason for selling your house, you want to make smart decisions along the way. The right moves can maximize your returns, minimize out-of-pocket expenses and ensure a smoother closing process. Here are some of the most common home selling mistakes you will want to avoid:
Doing it All on Your Own
It can be tempting to sell your house “For Sale By Owner (FSBO)” You may not want to hire a Realtor® and pay their fees, or you just don’t want to go through the hassles of a traditional sale. This is fine if you know what you are doing in terms of marketing, negotiations and contracts. If you have questions and aren’t as comfortable with doing it all yourself, then you may want to consider hiring a real estate agent. A good agent can help you get a higher selling price and their fees often pay for themselves when all is said and done. If you are looking for a much faster sale off the open market, then you may want to consider a direct cash sale to a real estate investor.
Not Having a Plan
Before you sell your house, it helps to have a plan in place. What are you looking to achieve with your home sale? Where will you be moving next? What will you do with any profit you gain from the sale? What if you are only going to break even at best? Sit down and think about all these questions and more. Figure out your plans and objectives before putting your house on the market. Good planning can go a long way toward a smoother and more successful real estate transaction.
Pricing Too High
Perhaps the most common mistake home sellers make is pricing their property way too high. You want to get the absolute most out of the sale, but it’s important to factor in the location, size, floor plan, condition and other factors that will affect the property’s value. Listing at a high price will limit the amount of potential buyers who will look at the house, and this can lead to no offers at all because they think you are expecting too much.
Pricing Too Low
The opposite home selling mistake can also happen. You don’t want to list your property for too low of a price either. This may not attract the right type of buyers and you will get more lowball offers. In general, it’s wise to set a realistic and acceptable price range for your home. Know what it is worth and calculate both the low end you are willing to sell at and the high end if everything goes perfectly with a bidding war. Your listing price should be somewhere in the middle. If offers come in lower, but within your acceptable price range, you will be in good shape. If they go higher, then you’ll be even happier!
Not Making Repairs
To truly get the most value out of your house, it should be in nice shape. Invest the time and money to make repairs and upgrades that will increase the resale value of the property and attract more potential buyers. Not everyone is looking for a “fixer-upper” and, again, a poorly conditioned house may not bring the types of buyers you want.
Getting Too Personal
You see your house as your home. However, it is just property when it is time to sell and move on. You have to remove as much of your emotional attachment as possible. Don’t let emotions cloud important financial decisions during the sale. When it comes to home staging, you will also want to “depersonalize” the house. Think neutral colors and less personal decor (photos, collections, knick-knacks, etc.). Pack that stuff up before listing the property. This way, potential buyers can imagine themselves living in the house. If it feels too much like yours, it’s harder for them to envision it as theirs.
Underestimating the Process
Not all home sellers are ready for the home selling process. Even the fastest sales can take a couple months to complete. You have repairs, marketing, staging, showing, negotiations and then the final closing process which may take 30-45 days on its own. It is not a process you should rush if you are planning to sell in a traditional manner—whether through a real estate agent or as a FSBO. If you are in a rush to sell for any reason (job relocation, financial distress, divorce, unwanted inheritance, pre-foreclosure, tax default, etc.), then you may want to consider other home selling alternatives. A cash home sale to a real estate investor can be completed much quicker and easier. Your selling price won’t be as high, but you will avoid out-of-pocket expenses (repairs, real estate agent commissions, etc.) and you can get out from under the property sooner. Sometimes, this may be your best solution.
If you are looking to sell your house, contact PropertyLark today. We are happy to make you a fast and fair cash offer, or we can help you sell it through a real estate agent. We are your complete home selling solution, so we’ll help you figure out the best way to sell your house and avoid these common home selling mistakes.