The consequences of a mistake can impact your finances and most importantly, your peace-of-mind.
These are some of the most common mistakes you should avoid when selling a home:
1. Underestimating the costs of selling
The total cost to sell a home can amount to much more than the 5-6% in agent commissions most people expect to pay.
2. Setting an unrealistic price
The price you want and what the market will pay can be two very different things. You might hear the term Fair Market Value, which refers to how a home is valued when both the buyer and seller are reasonably knowledgeable about the property and neither is under any pressure to buy or sell.
3. Only considering the highest offer
The highest offer, while exciting, isn’t always the best offer given your needs. It’s common in many traditional sales to have contingencies. These are conditions that must be satisfied for the sale to close. You may have contingencies that protect the buyer’s interests like a financing contingency or an inspection contingency.
4. Ignoring major repairs and making costly renovations
A long list of maintenance issues can turn buyers off and potentially decrease the value of your home. More importantly, buyers expect the condition of your home to match the description.
5. Not preparing your home for sale
One of the challenges of listing your home on the market is showing your home to prospective buyers. Generally speaking, the cleaner, less cluttered, and well-decorated your home is, the more appeal it can have.
6. Choosing the wrong agent or the wrong way to sell
If you choose to work with a real estate agent, make sure you select an agent who has your best interests at heart.
7. Limiting showings
Once you’ve put your home on the market, you’ll have to try to cooperate when your agent wants to show it. That could mean scampering out at dinnertime for a private showing, or vacating for several hours—or most of the day—for a weekend open house. The goal is to accommodate as many buyers as possible, even if their timing is inconvenient.
8. Not considering your broader financial situation
Many sellers don’t have a clear picture of their financial situation before selling. This can lead to painful surprises. Before you make the decision to sell, it may be helpful to assess your income, debt, and any upcoming expenses during your move.
Takeaways
At the end of the day, you want the home selling process to be as smooth and painless as possible. Thinking about all the things that can go wrong might be overwhelming, but remember that knowledge is power. Now that you’re aware of some common mistakes to avoid when selling your home, you can be more confident when something doesn’t go as planned.
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