July 29, 2022
8 Mistakes to Avoid When Selling Your Home
Many make the mistake of assuming that selling a house is an easier process than buying a house.
While being on this end of the transaction does have its advantages, homeowners should be aware that it's easy to make costly errors.
When you're ready to begin the process of listing and selling your home, let's talk.
Here's what not to do when selling your home.
The old saying “home is where your heart is” is true. Your home is the catalyst for many fond memories simply because you spend most of your time there.
Many intimate and special moments will be forever tied to the place you call home.
It is important to detach from the home you’re selling to maximize the potential of the sale.
Frankly, maintaining a sentimental attachment to the home while trying to sell could be detrimental to you reaching your goal.
By default, your emotions will drive your actions during the sale. Always remember that when selling, your home is no longer your home; it is a product.
Overpricing Your Home
Overpricing stems from a sentimental attachment to the home.
Either the seller views the house’s position in the marketplace incorrectly or overvalued the contributions to the home’s improvement.
Real estate is a free market system, meaning anything in the market is only worth what a buyer is willing to pay for it.
Of course, you do want to sell for the highest amount possible but overpricing your home is not the way.
There are several routes to take to ensure the house sells for your ideal price and it begins with proper price positioning.
Lets have a conversation about how to strategically price your home so we can maximize the potential of the sale.
Selling When Upside Down on Your Mortgage
Unless your circumstances require releasing your financial responsibility of the home, it is highly recommended to not sell if you owe more than the house is worth.
Let’s discuss your options to avoid selling underwater. When selling your home, you should try to at least break even.
One of my founding principles as an agent is to “always negotiate from a position of power and not a position of weakness”.
Many buyers (including savvy investors) prey on homeowners going through financial distress.
Avoiding this scenario at all costs is ideal but there are still options that are available if you happen to be in this situation.
Cheaping Out on Listing Photography
I get it, the smartphones of today allow capabilities to shoot a movie but camera phones indeed have limitations compared to a device dedicated to just one function.
When your house is listed and syndicated on multiple third party real estate websites, it is important for photos of your home to give a great first impression.
In addition to having a high quality camera, certain angles to highlight the home’s best features need to be considered.
Some rooms need to be captured in its entirety, some areas of the photo need to be focused and let's not forget the daunting task of getting the correct lighting.
The importance of high-quality photography and videography cannot be ignored.
High quality real estate listing photography pricing is relatively cheap and it makes the greatest impact.
The first impression of the listing from buyers shopping online will be one of the main factors that influence their decision to schedule a showing.
Don’t cut corners when it comes to marketing your home.
Staging vs Not Staging
Your home should be market ready before beginning photography.
Your home must be presentable and have the adequate furniture to show off the space and potential to prospective buyers.
Not every home’s marketing budget includes staging simply because of price but some homes need furniture and décor to give prospective buyers an idea of what it would look like if they were to live there.
A perfectly staged home gives the buyer that “cozy” feel and it compels the buyer to make an offer.
Vacant homes show emptiness and disparity.
If the house is vacant but you are considering staging, you will only have to stage the kitchen, living room, the most likely used bathroom and the master.
The home should also be thoroughly cleaned, decluttered and depersonalized. Dusty corners, cluttered closets, and family photos can all turn away prospective buyers.
Not Disclosing Material Facts
What is a Material Fact? A material fact is any detail affecting the home’s value that would impact the buyer’s decision to write an offer.
A real estate purchase is a very sensitive legal transaction which requires honesty and transparency to avoid litigation.
Sellers must disclose all previously known defects with the home.
This includes any damages, repairs, renovations and any other known encumbrances to the property throughout the duration of ownership.
It's better to be upfront about the issues and risk losing the buyer rather than inviting legal troubles.
Mismanaging Multiple Offers
Once you’ve marketed and presented the home correctly enough to receive multiple offers, you must know how to handle each offer ethically and responsibly.
Regard each offer as a potential selection and investigate the feasibility of each.
It is possible to convince each buyer to offer more without giving misleading statements but it starts by giving each buyer a certain level of respect and courtesy.
You must consider the time it takes for each buyer to schedule and tour your home and the time it takes for the buyer’s agent to write the offer.
Sometimes, it can take a buyer’s agent an hour to research the market, discover any known encumbrances to the house or lot and write the offer.
Please be respectful of each buyer’s time and express gratitude for their interest.
Choosing the wrong agent can cause you to not effectively maximize the potential of a multiple offer situation.
Not Using a Real Estate Agent
According to the National Association of Realtors, 90% of sellers were assisted by a real estate agent when selling their home.
Homes that were successfully sold without a real estate agent sold at 81% of what it could have sold for if an agent marketed and negotiated the sale of the property.
Studies have shown that homes have sold over list price even after 35% reported list price reductions.
The most common service provided by a real estate agent when selling your home is maximized exposure from marketing.
In theory, it seems you can save a buck trying to sell your home alone but would you risk leaving money on the table.
I can change my car tires on my own but does it mean that I should?
Do I have the proper tools and resources to change my tires without disrupting my daily responsibilities?
Residential real estate transactions can be very complex and navigating through unforeseen drawbacks require skill developed by daily practice.
Attempting to handle the marketing and selling of your home on your own could actually cost you thousands more than necessary.
Real estate transactions can be tricky and frustrating. The simplest mistakes can be easily made when selling your home and costs you more than anticipated.
Fortunately, these pitfalls can easily be avoided with a little careful planning and assistance from a full time real estate agent
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Speak to an actual person.
If you have any questions regarding real estate transactions, drop us a line.