Home Selling Mistakes to Avoid
Selling a home is not a simple process. That process is made even more difficult if costly and time consuming home selling mistakes are made along the way. Consult with a real estate professional like ERA Elite Ventures Realty Realtor® Carey Scott to help avoid these costly and time consuming mistakes.
Mistake 1: Listing the home before it is ready
Sellers should not put their home for sale before it is in a presentable condition to be shown to buyers. Once a buyer sees the home for sale the first time in an unpresentable condition, it's vary rare that they will return. Usually, a home is put on the market before it is ready for 2 reasons: The home seller has waited until the last moment and is pushed by a deadline or the seller is impatient and rushes the home to market.
Fix up the home properly before putting it up for sale. If the carpet needs replacing than replace it. If the interior or certain rooms need painting, than paint it. The majority of home buyers don't want to move into a home with hand prints of kids on the wall or kool-aid stains in the carpet. Look at your home and ask the question - "If I was a new home buyer would I buy this home in this condition?" Be honest with yourself!
Mistake 2: Over improving the home for the neighborhood
It's nice to have the home in the neighborhood with the biggest deck, nicest pool, added on rooms, and numerous upgrades - until it's time to sell your home. If your home stands out too much from the surrounding homes in the neighborhood, then your home will be an anomaly not just one of the nicer homes. If the price of your home for sale is significantly more than the value of the surrounding homes and the price is out of line with the homes for sale in the area, it will become more difficult to sell than the surrounding homes. For example, people who buy $300,000 homes want to be surrounded by other like $300,000 homes.
Mistake 3:Pricing the home based on what the owner wants to net
Just because you want to take a certain amount to the bank after closing doesn't necessarily mean it's in line with a correct home selling pricing strategy. This attempt by owners to "take a certain amount to the bank" rarely plays out to the owners wishes. Owners set the "asking price" but have no control of the actual "sales" price - the market controls that aspect. It really doesn't matter what the owner "wants" - the selling price is usually determine by the market. Besides, banks and lenders will only lend a buyer the amount that the home is appraised and an appraisal is determine by the market. So even if a buyer agrees to pay a price over market value for the benefit of the owner, the sale will not close at that price because the bank/lender will not lend more money than the home is worth in that market.
Mistake 4: Hiring an agent for the wrong reason
Hiring the wrong agent to sell your home for the wrong reason is a very common mistake. I always tell people this about a good agent - "A good agent is suppose to tell you what you NEED to hear and not necessarily what you WANT to hear". Sometimes owners hire agents who agree to sell their homes at a price that is too high or tell them their homes don't need repairs or promise "quick and easy sales". As with everything in life if it sounds too good to be true than it usually is too good to be true.
Mistake 5: Getting too emotionally involved
A challenge for most home owners is not to get too emotionally involved in selling their home. People love their homes - this is were their kids have grown, where they have nice and pleasant memories, and have put much love and care into. But once you decided to sell your home than that is out the door. Your home than is nothing more than another house on the market to be bought and sold like any other house. Buyers don't care about your memories or "sweat equity" that you have put into the house - it's just another house in a long list of houses for sale. So don't get too emotional when buyers come view your home yet decided to not to buy it. It's not personal - it's business.
Mistake 6: Not disclosing problems with the property and/or trying to hide problems
This is a HUGE NO NO that will lead to nothing but headaches and problems down the line. States like Alabama and Georgia have "Property Disclosure" statements which the seller acknowledges known problems that have to be filled out by sellers who have lived in their home. USE THEM WISELY! Properly disclosing problems with your home and property will hopefully keep you out of a lawsuit with the buyer. If you do not disclose problems, you are opening yourself up for lawsuits and a loss of money - potentially huge sums of money.
Mistake 7: Not properly doing your research and being prepared
This involves reading your current mortgage note to see if there are any prepayment penalties, knowing the current market conditions in the area, knowing the current financial climate for home buyers, etc.
Avoiding these mistakes and pitfalls are not very difficult. There are numerous online resources to help guide you through the preparation process of selling your home. Using a professional Realtor® is the best help that you can get.