Whether you're upgrading or downsizing, selling your home is a big move. With a decision this big, it's essential to be aware of what mistakes to avoid when selling your home that could potentially derail your sale. Beware of these nine common mistakes made when selling a home so you can prepare to sell your home without any unnecessary headaches during the process, or at the closing table.
Underestimating Costs of Selling
Closing costs, agent commissions, repairs, staging fees, moving costs, concessions to the buyer; these are all things that could impact the bottom line of your sale. Sellers should be prepared to spend roughly 10% of the sale price between agent fees and other closing costs.
"For Sale By Owner" (FSBO)
Though it may seem like selling your home without a real estate agent is cost-effective, truth be told, it could cost you more in the end. Getting too involved in the sale of your home can take away from potential buyers' ability to imagine it as their own. Plus, real estate agents have the tools and knowledge to price and market your home to the right buyers. Without them, you can expect to field all calls, host all showings, manage offer negotiations, and address the hard to answer mortgage questions that aren't common knowledge to the non-real estate savvy seller. Aside from this, data shows that agent-listed homes sold for $65,000 more than a typical FSBO home.
One of the biggest home selling mistakes is under/overpricing. Real estate agents perform a comparative market analysis (CMA) to determine what comparable homes in your area are selling for (just another reason to work with an agent) and give you a realistic number for which you should expect your home to sell. Rather than underpricing and losing thousands, or overpricing and scaring away potential buyers, a CMA will give you that sweet spot listing price you can negotiate with the right buyer.
Sweeping Major Repairs Under The Rug
We can all agree a fresh coat of paint can go a long way, but smart buyers will never buy a home without an inspection. Inspectors are home investigators; they search every nook-and-cranny looking for signs of significant problems. While that crisp new ceiling paint looks nice, a good home inspector will find that leaky roof that could cost you the sale. Consider addressing the more glaring issues that will most likely come up during negotiations.
Leaving The Clutter
It's common for sellers to live in the home they're trying to sell, but an entryway littered with stinky shoes and jackets doesn't exactly scream "dream home" to potential buyers. Show off your home's beauty and charm by decluttering.
While an empty house seems better than a cluttered house, seller agents have reported that staging a home has a dramatic impact on how fast it sells. In fact, realtor.com reported staged homes sell 88% more quickly and 20% higher than unstaged homes. Consider renting furniture and decor from a staging company to help buyers envision your home's potential for the next family to call home sweet home.
Bad Lighting & Poor Listing Photos
Potential buyers don't want to buy a home that resembles a scene from a horror movie. Lighten up the look of your home with light, neutral colors like whites, grays or beiges. Take the time to list quality photos that accentuate the beauty and charm your home has to offer.
While a high offer may seem like the best offer, beware of financing, inspection, or repair contingencies. These can have a profound impact on the timeline, guarantee, and complexity of the sale. Your agent can help negotiate between you and the buyer to decide what offer best suits your desired outcome.
Taking Low Offers Personally
Selling your home can be a very emotional time, but it's important to remember it's still a business transaction. Don't get offended when a potential buyer lowballs you - they are simply just trying to get the best deal they can; it never hurts to ask, right? This is where you can negotiate for a fair price, and you can always choose to say "no." Take every offer in stride and decide what feels right to you.
Selling a home is an exciting, emotional, and significant financial decision in your life. Knowing what home selling mistakes to avoid can help save you a lot of headache and heartache in the process and at the closing table. When you're ready to sell your home and buy a new one, Wyndham Capital Mortgage has the tools and expertise to help you through the process and into a new mortgage quickly, easily, and 100% digitally.
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