People make mistakes when listing their home for sale, and some are very costly that you need to avoid. If you make mistakes when you are listing your home selling process, you definitely might be leaving a lot of money on the table.
1. Not getting a real estate agent
Not hiring a real estate agent is one of the most common mistakes made when selling a home. There are many major red flags as to why trying to sell your home by yourself is a bad idea. You need a professional who is an expert to navigate negotiations, procedure, and laws. Homeowners who try to sell their home by themselves often end up taking longer to sell and sell for far less price than homeowners who work with an agent.
Hiring a good real estate agent also means being able to leverage their professional networks. Your real estate agent can quickly spread the news about the property they just listed. Wouldn’t you rather have someone dedicated to selling your home or looking for your next perfect home, as it is their full-time jobs? The home buying and selling process is a huge commitment in terms of time and workload.
Making the mistake of hiring a wrong realtor can be as bad as trying to sell your home yourself. It is advisable to know how to get a good realtor and one surefire way to help in the chances of not choosing a bad realtor is by understanding what it takes to properly interview with prospective agents.
A few questions to begin with are:
- Is this agent full-time or part-time?
- How many homes per year, on average, does this agent sell when representing home sellers?
- What marketing strategies does this agent you use to sell homes?
- Ask for their website or blog. Review their past experience or demonstrated expertise on their blog content.
With these few questions, you may be able to determine if they are a good real estate agent to hire.
2. Over- or underpricing the home
Everyone listing their property wants to get the most money for their property, so they set their price very high. On the other hand, some are in a hurry to sell their properties, and they make this possible by setting a very low price.
Listing your home shouldn’t be what you think it should be sold for or your desire to sell at a particular price. Instead, it should be compared to what homes in your area have sold for. If you don’t make a good comparison of your home and homes in your area, there are tendencies that you are setting your price too high or too low.
In order to avoid losing money, it is important for you to know your market and get familiar with comparisons of similar homes currently for sale in your area and recently sold homes for you to understand the exact price tag for your home.
Comparing your home to other homes in your area is the most important factor dictating what should be the price your home is worth. Other factors to consider when listing your home should include location, market, local demand, market strength, and the home’s condition.
Over-pricing your home turns-off buyers, and may result in a state of discouraging lower offers. The consequences of overpricing your home is that you are wasting critical marketing time which is the first 14-30 days the home is listed on the market. Having no offers early in the process is a terrible scenario because after the critical market time (14-30 days), your home becomes “old news”. When your home becomes “old news” to the market, buyers come to the conclusion that your home isn’t worth the price you are asking or there is something wrong with it.
An important key to a successful home selling is properly pricing your home. If you want to sell your home, you need to price it according to your local market.
3. Easy-fixes that can raise your property value
When it comes to selling your home, the little things can go a long way. If you want to sell your home for a great price, you need to do the necessary work to make your property look good. It does not necessarily need to be expensive changes, but perhaps even investing in staging.
Overall cleanliness and space are the biggest factors considered when selling your home. If it’s dirty, there is every possibility it is not going to sell even if it’s a great place. Fixing and keeping your kitchen and bath in a good condition will also increase your home’s value by as much as 7%.
4. Not Taking The First Offer Seriously
Sometimes your first offer comes quickly and sometimes it takes a lot of time and energy. When it happens quickly, some may have the perception that it is just the first one of many offers to come. The longer a home is on the market and remains unsold, the less buyers are willing to pay for it.
Waiting for the best offer may work against you and end up selling your home for less than that first offer. A good realtor will always tell you the best chance of getting a high price for a home is when it is new to the market. Therefore, you need to set a good price for your home from the very beginning so you don’t keep wasting time waiting for a second best offer.
5. Being Dishonest With Potential Buyers
One of the biggest mistakes made by home sellers when listing their property is not being honest with potential buyers. It is important that when selling a home, you should always know any potential defects in your home, and you should disclose it to your prospective buyers.
Doing business with this level of transparency will keep you out of trouble with potential lawsuits in the future. Homeowners should know what to disclose when selling their home.