Mistakes to Avoid When Selling Your Home

There are a lot of articles on home buying errors, but home selling mistakes can be just as (if not more) costly. No matter the market, property, or time of year, selling your home isn’t an easy process. So if you’re getting ready to sell your home, here are some of the biggest mistakes to avoid and seller tips to ensure a smooth process.

Selling without a realtor

If you think selling your house without a real estate agent is worth not paying commission, you’re not thinking long term. Unless you have a real estate license, you’ll be missing out an agent’s market knowledge and experience that can help make the selling process a success. They will be able to do comparative market analysis and price the home you’re selling accordingly.

The good agents will know which renovations can boost your asking price, or what will need to be fixed prior to listing. They’ll also have contacts with other professionals, like photographers/videographers, repairmen, painters, etc. In all, the experience a real estate agent brings to the table is invaluable and will help you avoid making other errors.

Pricing your home too high

One of the most common reasons that prevents a house from selling quickly is overpricing.

There is no shame in wanting to sell your home for top dollar, but it’s important to be realistic about the property’s value and its impression on potential buyers. Determining the right price will let you sell in a reasonable amount of time at an amount you’re comfortable with. Homes that are priced strategically tend to get more offers, creating room for competitive bidding between buyers. This can lead to a home selling over list price.

Homes that are listed over value take longer to sell, leading to low or no offers. If you aim too high with the price at the start, chances are, eventually you’ll have to lower the number. At that point, you’ll miss out on the peak interest and activity period that a new listing experiences. Once your listing goes stale, you may end up selling it for even less than if it had been reasonably priced from the get-go. There’s also a high risk and major implications if the appraisal value ends up below an accepted offer that was based on inflated value.

Not preparing your home for sale

As you’re getting ready to sell a house, your realtor should be able to help you identify things that should be fixed before listing. Plus, they can recommend small renovations that will get you the most bang for your buck. Realtors have a strong understanding of what local buyers in your price range are looking for. Here’s a quick list of ideas to help you best prepare your home when selling:

• High quality listing pictures
• Attention to curb appeal (exterior repairs, landscaping, etc...)
• Paint and touch-ups
• Cleaning

Pre-listing home inspections are not required but can be helpful for proactively identifying repairs that may be required by the buyer or mortgage company to successfully complete the transaction. Having the report and reviewing it will help you make informed choices on what needs to be fixed before you list.

Ignoring clutter around the house before listing

In many cases, the clutter around your house is the very touch that makes it feel like your home. That’s exactly why it’s important to depersonalize and declutter as much as possible when you set out to stage your home for the listing photos. Though the refrigerator notes and bathroom toiletries may have sentimental value to you, it’s just clutter to every potential buyer.

Decluttering is an important part of staging a home for success. Putting in the effort to make your home look its best is always time and money well spent. Get rid of the items and knickknacks you no longer need, remove oversized furnishings, clear out closets, and remove items showcasing too much personal detail (like family photos).

Forgetting seller closing costs

A huge mistake sellers can make is forgetting to factor the closing costs into the profits you’ll make on the sale of the house. These can be as high as 8% to 10% of the sale price. Your overall closing costs are made up of a different items, including, but not limited to:

• Commissions
• Transfer tax
• Title insurance
• Escrow fees
• Prorated property taxes
• HOA fees
• Advertising costs
• Attorney’s fees

Getting emotional

A tried-and-true secret to selling a home is keeping a cool head and staying calm under pressure. Yet it can be the most challenging aspect of the sell. Selling a home is a complex process that involves handling many people: buyers, agents, lenders, title companies, inspectors, appraisers, and more. Not to mention the emotional stress that comes with saying goodbye to your home. With so many gears turning, sometimes things won’t pan out exactly how you hoped.

It's vital to keep your cool. Work with your real estate agent to ensure the transaction moves along through to close as smoothly as possible. And don’t let the speed bumps get to you as they crop up along the way.

If you avoid these mistakes, you can decrease your stress and help ensure a smoother selling experience. Good luck and happy selling!