Selling a home marks a key financial decision, demanding meticulous planning and thoughtful consideration. The repercussions of missteps in this process can echo far beyond the closing date.
When it comes to the complex world of real estate transactions, avoiding common surprises is key. Join us as we dive into the details of selling a home, uncovering the mistakes to avoid for a smooth and successful sale.
1. Overpricing Your Home:
It’s important to price your home strategically depending on your selling goals. Pricing your home at market value or even slightly below it, can attract more potential buyers than if you were to price it above market value.
Zillow explains the consequences of overpricing and provides tips on how to set a realistic and competitive price.
- It deters qualified buyers in your price range.
- It can make your home sit on the market longer. And the longer your home’s on the market, the less buyers feel like they need to put in an offer quickly.
- If you end up having to do a price reduction, buyers will feel like they have extra negotiating power.
- If your listing goes stale, you might end up selling for less than you would have if you had priced it appropriately from the start.
2. Neglecting Home Repairs and Staging:
If a home has a lot of maintenance issues, it can turn away potential buyers and even lower the value of the home. This is why it is a good idea to prioritize fixing the most obvious problems before going to market, especially the ones that are likely to come up during a home inspection (because most buyers want that inspection done before closing).
When we do home assessments, we keep an eye out for things that are broken, in bad shape, or could affect the safety, structure, or functionality of the home. These are some of the most common things we find that need repairs. If you’re getting your home ready to sell, use our home maintenance and repair checklist as you go through each room.
Some sellers may think about doing renovations or improvements to boost their home’s value before selling. But here’s the thing: renovations can be expensive, and you might not always get back what you put into them in the final purchase price. Plus, some buyers like to make their own renovations to personalize the space.
So, if you’re thinking about doing any renovations, make sure you carefully consider if it’s really going to add value to your home. Additionally, we have curated a comprehensive list of home improvements with the highest ROI. This resource will assist you in identifying the projects that are most likely to enhance the value of your home.
3. Ignoring Curb Appeal:
As mentioned by homebuyer.com, revitalizing your driveway and curb appeal not only improves the aesthetic charm of your property but also contributes to a welcoming and polished entrance that sets a positive tone for potential buyers.
By prioritizing the upkeep of this often-overlooked area, you can create a more aesthetically pleasing first impression of your home both online and in person. Follow these 5 ideas to enhance the curb appeal of your home, and put your home exterior in the best shape for showings.
If you need professional help with your projects, we’ve partnered with top contractors for home renovations in Cleveland, Ohio. Explore all the upgrades you can do with our Verified Vendors List.
4. Lack of Marketing:
With more than 20 years of experience, we have gained valuable insights into the role of marketing listings. In today’s digital age, online platforms and social media play a crucial role in reaching potential buyers.
However, traditional marketing methods should not be overlooked. A comprehensive marketing strategy that combines both online and traditional approaches can greatly increase the visibility and appeal of a home, ultimately leading to a successful sale.
5. Inadequate Disclosure:
Investopedia explains the legal and ethical importance of disclosing all relevant information about the property.
Do you want to ensure a smooth home-selling process? We recommend having a home inspection done before going to market. This way you can get ahead of any objections that may arise from the buyer once they order a home inspection.
If an issue does arise from the home inspection report, here are three different ways to handle it:
1. Fix the problem beforehand.
2. Price the property below market value to account for it.
3. List the property at a normal price and offer the buyer a credit to fix the specific problem(s).
Remember, if you don’t address issues upfront, you may limit potential buyers who prefer move-in ready homes. This is another reason why it’s a good idea to have your home inspected before listing.
6. Forgetting closing costs:
One of the biggest mistakes when selling a home is forgetting to consider closing costs in the profits you’ll make. Closing costs for sellers can be as high as 8 to 10% of the sale price.
Your overall closing costs include a few different items:
- Commissions: It’s typical for sellers to pay a total of 6 percent of the sale price — 3 percent goes to the seller’s agent, and 3 percent goes to the buyer’s agent.
- Transfer tax: Also called a title fee, this is the tax levied by your state. The rate can vary dramatically state by state, and also depending on the sale price of the home.
- Title insurance: It’s also customary for sellers to pay for a title insurance policy for the buyer, which protects them from any liens or disputes over your home’s ownership. The cost can be between $1,000 and $4,000.
- Escrow fees: An escrow service holds the funds throughout the transaction and pays them out appropriately at closing. These fees are usually split between buyer and seller and can cost between $500 and $2,000.
- Prorated property taxes: You’ll be responsible for your home’s property taxes up to the closing date, which often results in a prorated charge at closing.
Among others.
7. Ignoring Professional Advice:
U.S. News emphasizes the value of seeking advice from real estate professionals, while others might be thinking of selling their home on their own to avoid commission fees. It may seem like a tempting idea, but you could be missing out on the valuable expertise, connections, and support of a real estate agent.
Real Estate Agents and Realtors possess market knowledge and assistance that can make all the difference in a successful – and stress-free – home sale.
Let’s talk about numbers for a moment. Did you know that for-sale-by-owner properties tend to sell for a lower price overall? According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, FSBO homes had a median sale price of $225,000. On the other hand, properties sold with the help of an agent had a median sale price of $345,000.
If you’re aiming to sell your home for its full market value, seeking professional insight is more likely to get you there. So, why not leverage the expertise of a real estate agent and maximize your potential profit?
It’s time to make a smart move and partner with The Young Team who knows the ins and outs of the real estate game.
To Sum Up:
1. Pricing your home correctly is crucial for attracting potential buyers and achieving your desired sale price. Overpricing can lead to longer time on the market and lower offers.
2. Staging your home to maximize visual appeal is essential. Neglecting staging advice can result in missed opportunities to showcase the property’s best features.
3. Hiring an experienced real estate agent is important for navigating the complex selling process and getting the best price for your home in a timely manner.
4. Pre-inspecting your home before listing it can save you from potential headaches and negotiations later on, as it provides you with the necessary information to make informed decisions throughout the sale process.
