Selling a home, especially for the first time, can be a complex process. Between preparing your property for showings, deciding on a listing price and dealing with negotiations, the logistics of selling can lead to a number of possible missteps. These mistakes are common and natural to make, but they can potentially lead to costly consequences. Knowing what to look out for can help you navigate these challenges and make smarter, more informed decisions about your sale. In this article, we’ll explore eight common mistakes to avoid when selling your home and what you can do to prevent them.
1. Not hiring a real estate agent (or hiring the wrong one)
It may be tempting to skip the commission and opt for selling your home on your own. However, this decision could end up costing you more in the long run. Real estate agents bring invaluable expertise to the table, and their experience in the industry can help you dodge potentially costly or legally damaging mistakes throughout the process. They know the ins and outs of home selling, including how to effectively price your home, list and market it, negotiate offers and navigate relevant laws and restrictions.
The agent you choose will be your partner in this journey, so it’s crucial to select someone you can trust. Your real estate agent should possess an in-depth knowledge of the area and market, a proven track record of sales, excellent communication skills and the ability to offer you the time and energy necessary to get your house sold. Remember, a good agent will not only offer sound advice but will also advocate on your behalf. For tips on how to find the right fit, take a look at our blog article Finding a Real Estate Agent You Love: An Overview.
2. Pricing your home unrealistically
When you sit down to determine your listing price, you’ll probably think of all the time, effort and money you put into making your home what it is today—the cabinets you painted, the bathroom you remodeled, the landscaping you planted. You might also be considering the amount of money you’d like to make off your house and how that might factor into purchasing your next home. However, the reality is that you also need to consider external factors in order to determine a realistic price for your home. Overpricing your property can deter buyers and lead to your house sitting on the market for longer than you’d like, making this one of the key mistakes to avoid when selling your home.
This is where your real estate agent comes in handy! They can provide you with a comparative market analysis (CMA) that uses comparables, or “comps,” to help determine and justify a reasonable price for your house based on the local market. Comps are recently sold properties in the area that share similar characteristics with your home. These characteristics may include age, condition, square footage, number of bedrooms and bathrooms, and other features. By setting a practical listing price that’s backed up by market data, you’ll be better equipped to attract serious buyers and achieve a quicker sale.
3. Forgetting to prep your house
Before you begin photographing your home and scheduling showings, it’s important to properly prepare! After all, first impressions aren’t just for dates and job interviews. When a potential buyer sees pictures of your home online or sets foot in the house for a tour, you don’t want them encountering a messy, cluttered space. Additionally, you don’t want them looking around and spotting your kids’ toys, family photos, holiday cards or a grocery list on the fridge. While all of those items carry significance for you, they might prevent house hunters from envisioning themselves in the space.
An effective way to dodge this mistake is to follow the three D’s of home staging: declutter, depersonalize and deep clean. Start by purging your home of anything you no longer want or need, donating or selling items when you can. Take down personal photos, knick-knacks, memorabilia and anything else that wouldn’t appeal to a wide range of buyers. Once you have a clear and neutral space to show, be sure to thoroughly clean each room from top to bottom, particularly focusing on high-use areas. Staging may be a final step to consider, although you don’t need to spend a fortune on professional services. Even just rearranging furniture and adding some fresh flowers can make a big difference in enhancing the overall aesthetic of the home.
4. Ignoring the outside of your home
You may be so preoccupied with readying the inside of your home that you forget all about the exterior. Don’t make this mistake! The outside of your home is the first thing potential buyers encounter as they walk up for a tour, so it’s crucial to enhance and emphasize your abode’s curb appeal. Pressure washing and adding a fresh coat of paint where needed can work wonders for your home’s appearance. It’s also a good idea to spruce up your landscaping, such as by mowing your lawn, pulling any unruly weeds and planting additional flowers or greenery.
If you have a covered front porch or back patio, be sure to clean and stage those spaces as you would clean and stage any room inside the house. Replace worn-out door mats, wash cushion covers, sweep up any excess debris and add some cheerful potted plants or flowers. If the area is sparsely furnished, consider buying, renting or borrowing key pieces, such as rocking chairs or a dining set, to add visual interest and give the area a greater sense of purpose. These outdoor areas can be excellent selling points, so use them to make a great first impression!
5. Not accommodating buyers
A significant misstep that can hinder the sale of your home is not being flexible with showing times. Don’t fall into the trap of assuming that potential buyers will work around your schedule. When you put your home on the market, getting house hunters through the door should be one of your top priorities, because it’s not often that a buyer will purchase a home sight unseen! This might mean being prepared to vacate your home (kids and pets in tow) at inconvenient times, such as for a dinnertime showing or a lengthy weekend open house. An uncooperative seller may be a turn-off for prospective buyers and they might lose interest altogether if they’re unable to schedule a tour.
Your agent can also help you streamline showings to better accommodate buyers. They may set up a lockbox or something similar outside the house in order to coordinate showings even when you’re not around.
6. Failing to disclose important information
This error could lead to serious legal consequences, so it’s definitely one of the more important mistakes to avoid when selling your home. Most states require sellers to provide a disclosure document that describes any known defects or issues that could negatively affect their property’s value. It helps establish trust between buyers and sellers by outlining what the buyer can expect from the property (while also protecting the seller from potential lawsuits related to the home’s condition). Although it may seem like a good idea to hide your home’s flaws in order to expedite a sale, it’s far better to lead with transparency to avoid any complications.
Disclosure requirements will vary depending on your location, so we suggest looking into your state’s specific rules. Common disclosure categories may include natural hazards, pests, major neighborhood nuisances (such as smells from a nearby manufacturing plant) or structural defects.
Note: the federal government requires all sellers to disclose the presence of lead-based paint on a property.
7. Not considering all offers if you have multiples
If you find yourself with multiple offers on the table, congrats! However, you may not want to immediately jump into accepting the highest offer without first considering the other options. It’s important to remember that there are other components to an offer beyond just the price. Contingencies, for example, may complicate the sale a bit further. These are conditions that must be met in order for a sale to be finalized. Inspections, financing and sale of a prior home are just a few of the common contingencies you might see buyers add to the contract. Depending on your needs, a lower priced offer with no contingencies may be more appealing than a higher offer with several contingencies.
You’ll also want to consider the timeline of the sale and what kind of closing period your buyer proposes. If you’re in a hurry to move, a buyer who insists on a 90-day close may not be the best option. The timeline may also be altered by things such as repair requests or appraisals. Be sure to take all of these factors into account as you thoroughly review each offer you receive. Your real estate agent can help you parse through them to find the best one for your needs and plans.
8. Allowing emotions to play too big of a part
This is one of the more common mistakes to avoid when selling your home. Of course, it’s natural to get emotional when selling your home, particularly if it’s your first. Between saving for a down payment, searching for the perfect match, applying for a mortgage and going through the closing process, you’ve likely put a lot of time, energy and money into getting the home. That’s not even to mention the decorating, remodeling or repairs, and endless memories your family has probably made there.
When you have a particular attachment to your house, you may run the risk of taking things too personally—for example, potential buyers criticizing your paint job while touring the home or bringing an offer to the table that’s a lot lower than what you believe your house is worth. To avoid this, it’s helpful to remember that the sale is a business deal. You are the salesperson and the buyer is your customer. Your goal in this transaction is to sell your home for a reasonable price in order to (hopefully) move on to a different house that’s better suited toward your current needs.
The bottom line
Selling your house doesn’t need to be a painful process. Understanding the mistakes to avoid when selling your home can help pave the way for a smooth, mutually beneficial transaction. With proper preparation, realistic pricing, a capable real estate agent by your side and the right mindset, you’ll be ready to navigate your sale with confidence.
On the hunt for your next abode? Contact one of our New Home Specialists! They’ll take your wish list and narrow down your options to save you valuable time and energy (especially when you’re in the midst of selling your current home!). Call 888.799.8322 or visit our website to get started.
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