Are you selling a home? Seems pretty simple right? You clean up, have homebuyers over to check it out and someone buys it. If only it were that simple! Actually, the process is more complicated, with legal and other considerations you may not know about. Sometimes, sellers make mistakes that cost them big, even after the sale. Avoid these sellers mistakes.
Setting the Price on the Wrong Terms
Some homeowners think the most objective term to use is the amount they paid for the property plus cost of improvements. That amount is not objective or fair from a buyer’s perspective and has very little to do with actual market value. Don’t test the market by pricing high; start out at the right price.
The listing price should be based on the present market value, which is typically estimated by a comparison of recent home sales and similar listings. If you overprice your home based on emotion or to test the market, you run the risk of having the home sit on the market for months.
Pricing a home at the right price is common sense. The longer a home is on the market, the more buyers start to wonder what is wrong with it.
Expensive Upgrades Before Selling
There is a difference between getting a home ready for the market and making a ton of upgrades to increase the sale price. Getting the house ready is practical while making expensive improvements rarely plays out well.
No matter how much money you put into your home, make improvements that increase your return on investment. For example, updating insulation might get you more in value than you initially paid. On the other hand, if you gut and renovate the master bathroom, you will pay thousands more than you will receive in increased home value.
Wrong Answers on Seller Disclosure
During the selling process, there is a lot of paperwork. Consider all of it legal documentation and make sure it’s filled out correctly.
On the seller disclosure, homeowners are asked about certain aspects of the home. Usually, they are directed to check “yes,” “no” or “do not know.”
Some sellers think they can avoid delays with the inspection process by marking “no”. This can backfire and cost a lot of money.
If a seller falsely states the good condition of something, and they are actually answering incorrectly, not only could it kill the deal, but even after the sale, the buyer may have grounds to seek remedies against the seller after closing. Avoid all of this by being honest about any information requested on the seller’s disclosure.
Selling Without a Real Estate Agent
There are some who sell their homes without the services a real estate consultant. By doing so, they take on a lot more responsibility.
It is true…real estate agents charge a commission. However, with this fee comes expertise and support. (Also consider the agent earns nothing at all if the home doesn’t sell – so they are assuming “risk” too.)
Selling your home without a real estate agent also makes other agents and buyers hesitant about a sale, because they know they are not working with a professional. Furthermore, it’s also common for a For Sale by Owner to either be significantly overpriced or underpriced. Either way, homebuyers aren’t chomping at the bit for a FSBO.
Ignoring Real Estate Advice
As a seller, you are paying an expert real estate agent to be on-hand to help with selling and to avoid stress. We are here to make your life easier and to generate more money at closing. Be an active participant in the discussion about how best to sell your home, but remember to take all advice seriously.
By hiring a local agent, you have access to local knowledge meaning they know all about the local market, right down to your street!
Selling a home calls for attention to detail. Homeowners who set fair prices, minimize huge upgrades, follow their agents’ advice and maintain honesty in the selling process are more likely to sell their homes without hassle.