Home Selling Mistakes To Avoid!
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Half the battle of selling a home is avoiding mistakes that could impact your finances, and most importantly..Your peace of mind.
Today, I’m going to share the top 5 mistakes all home owners should avoid when selling a house. So lets’ dive in:
1. Underestimating the costs of selling
Yes, Sellers have closing costs too.
In Florida, Standard sellers closing costs include title settlement fees & real estate marketing fees. These fees are based on your actual selling price. And are paid from the proceeds of your sale. These fees are your “hard” costs.
I encourage you to watch this video where I talk in detail about sellers closing costs.
But let’s talk about preparation for costs while selling.
For example, if you move into your new home before selling your old one, you may have to rent a temporary place or pay for both mortgages as well as other carrying costs, such as utilities, HOA dues, taxes, and storage.
Hopefully your Realtor has done a good job in advising you have to properly prepare your home for sell. But even if your home seems perfect, a buyers home inspector may find issues not readily seen, that could effect your bottom line if they ask you to address them.
To avoid these unseen problems, you may want to invest in a prelisting home inspection by a licensed home inspector and address any issues before putting your home on the market. *see Prepping your Home for sale
2. Setting an unrealistic List price
The price you want and what the market will pay can be two very different things.
For a seller, it’s the sweet spot between asking too much or too little. If you can’t hit the sweet spot, you risk leaving money on the table Or worse.. having your home sit on the market for a longer period of time, which will result in negative consequences.
Short of have an expensive appraisal prepared by a licensed appraiser, the only way you can be assured your home is priced appropriately is to measure the value with comparable sales. Meaning homes that have sold that are similar in size and features.
You’re probably thinking: I can get that info on line. Which is true....
But here’s the key to accurately pricing your property using those comps:
Because every home is unique, a seasoned Realtor will know which features most impact the value of YOUR home and how much to adjust for those things that makes your home different.
3. Only considering the highest offer
I see sellers gravitating to this mistake often these days! Especially since we are in a sellers market and with multi offer situations.
The highest offer, while super exciting, isn’t always the best offer!
There are 2 parts to a purchase offer: Price and Terms. Terms include contingencies.
Contingencies are conditions that must be satisfied for the sale to close. You may have contingencies that protect the buyer’s interests like a financing, appraisal or an inspection contingency.
For example, you may receive a really high offer that is contingent on the buyer selling their existing house.
You’d have to consider how the added timing and uncertainty compares to a slightly lower offer without that contingency.
On the flip side, you may have a buyer who is willing to be more flexible on repairs versus another who is offering a higher price but asking for repair credits. A trusted, seasoned Realtor will be able to help you make the best decision that suits your goals.
4. Over Improving Your Home
Before spending money on renovations or improvements, please consult your Realtor. You certainly don’t want to spend a load of money on major cosmetic items that will not yield you a good return.
So before you remodel your hall bath with solid gold fixtures, ask your Realtor for a list of items that will net you the highest return, based on your home and it’s location.
5. 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 on a rare occasion.
If your house isn’t easy to show, it won’t be easy to sell either.
Of course the pandemic has dictated how homes are shown as well.
Make sure your Realtor has clear showing instructions posted on your listing in the MLS, and don’t be afraid to insist that buyers agents make an appointments in advance. Some Sellers are requiring additional forms to be filled out prior to a showing, and others have safety measures that buyers must respect. In a sellers market this is definitely a convenience you can afford! Just make sure you are prepared to accommodate a high volume of interest..
The Bottom Line:
At the end of the day, you want the home selling process to be as smooth and painless as possible. You’ve heard me say this before...”Knowledge is Power”. Now that you’re aware of some common mistakes to avoid when selling your home, Please take the time to do a bit of pre-planning with a season professional. You’ll be so glad you did!