Home sales can be complicated and they require a lot of commitment on the part of the seller. And why not? The steps to selling a house can be difficult to follow and that’s why you hire a real estate agent. They have the responsibility of providing counsel, guiding you, representing your interests, and cautioning you about the common mistakes to avoid when selling your home.
Your house is most likely one of the most expensive things you would ever sell and has the potential to bring in a good amount of profit if done right. Making mistakes while selling your house can cost you mammoth sums of money. Still, there are many mistakes buyers make during the process of selling their homes and we’re here to provide you with a few answers, so that at the end, you’ll be able to put the question of what is the biggest mistake sellers make when selling a home into better perspective.
Here are 6 common costly mistakes to avoid when selling your home:
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Getting the pricing wrong
This is the most common reason a home fails to sell. It is a mistake that a lot of people make when they put their house up for sale. And this comes as no surprise because pricing a house is a very tricky endeavor.
If you price the house lower than its value, you end up leaving the deal with less money than others selling a similar house. If you overprice (which is more common), you are likely going to put off potential buyers and also run the risk of having the house on the market for too long before you would have to cut down the price which buyers may also not take as a good sign.
Your real estate agent should provide you with a competitive market analysis that will show you how much similar houses have sold for and advise you on a realistic price range for your house. This could help you sell your house faster and get a fair amount of money in your pocket.
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Ignoring or hiding major repairs
This is a clear cut answer to the question “is it bad to sell a house as is?”
A home inspection is an important step for most buyers looking to purchase a property. This process is vital, as it helps to uncover any hidden flaws in the house that they are about to purchase. Many sellers forget that most buyers would do this so they try to hide the flaws that the house has, rather than repair them. These could be leaking pipes, damaged roofs, cracks in walls and water damage, damaged floors, etc.
Ignoring these repairs will only affect your sale because a buyer will either require you to make these repairs after they have been revealed by the home inspector or start negotiating a lower price. This could draw out the deal or lead to a cancellation by the buyer. To avoid this problem, you should be proactive and hire your own home inspector before putting the house up for sale to find out what the glaring problems are and fix them.
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Not clearing the clutter and preparing the home for showings
Showing your home is an important step when selling your home. This is when the potential buyer comes to see, with their own eyes, what they’re about to buy. So it actually goes without saying that the better your house appears, the higher your chances of getting the house sold.
Refusing to declutter the house and trying to maximize the little space available ranks high on the list of mistakes to avoid when selling your home, as it makes it difficult for buyers to take interest in your house.
Clearing or neatly putting away your personal properties that are not relevant to a home showing creates a lot of room in the house. Good lighting also helps show the full size of the room. You can also replace worn-out furniture by hiring furniture from showing companies. In general, the trick is to try to make your potential buyers imagine themselves living in the house.
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Selling with an underwater mortgage
If you bought a house using a mortgage and after some time the house loses value, it means that you now owe more money than your house is worth. This is referred to as being underwater on your mortgage or being upside down.
Selling such a house would mean that you wouldn’t make enough from the proceeds to pay off your mortgage. You can handle an underwater mortgage by riding it out and getting an extra source of income and stripping your expenses to the basics so you can focus the money towards paying off the mortgage. It is not an ideal situation to be in but selling should not be considered unless you need to avoid foreclosure, else you may just be falling victim to one of the mistakes to avoid when selling your home.
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Underestimating home selling costs
As a seller, you will be making a big mistake if you think that you will not need to prepare for any expenses since you are the one that has something up for sale. There are several costs you will be required to take care of and you need to account for them so you don’t get taken by surprise. Your real estate agent should know how to build your home sale around these fees so you can still make reasonable profits after the sale. Examples of closing costs you should prepare for are:
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Agent commissions:
The seller is responsible for paying both his/her agent and that of the seller. These commissions could take up to 6% of your final selling price.
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Moving costs:
If you’re hiring professional movers, you could pay up to a few thousand dollars and if you are not moving to a new house immediately, you will have to pay for a storage facility to stash your belongings.
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Closing costs:
These fees must be paid when a property is being transferred from seller to buyer and they include many fees such as sales taxes, loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, and deed recording fees, amongst others. A seller can negotiate to share the payment for these with the buyer.
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Repairs after home inspection:
If the home inspection reveals anything undesirable, there would be a need for repair. You don’t have to do it though, but that would mean that the buyer (if he/she is still interested) might negotiate a lower fee.
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Staging costs:
The costs of staging your home can vary depending on location, size of your home, the number of rooms you wish to include, and also if you’re renting furniture or decorations from a staging company.
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Not getting a good realtor
This may be last but it’s definitely not the least of the 6 common costly mistakes to avoid when selling your home. You need a good realtor when selling your home like a car needs fuel to move. Getting a good realtor makes the whole process way better, easier, and more profitable.
At the end of the day, all you want as a seller is for the home sale to go through without any glitches. So it is important for you to avoid these common mistakes now that you have been informed about them to best be able to get maximum value from the selling process.
Conclusion
Since getting a good realtor when selling your home is half the deal, calling Tammy now at (480)-848-7173 is half the deal.
With over 20 years of sales experience in the Metro Phoenix area, Tammy is smart, knowledgable, experienced, and attentive. She has a wide real estate network, and she will put all these advantages to work on your behalf. All you have to do is give her a call.