It’s time: you’re about to sell your house and can picture yourself in new digs. Before the offers start coming in, take a minute to temper your expectations and prepare for the sale. Too often, sellers are overconfident and allow costly errors to crop up. Read on to discover the top 10 mistakes to avoid when selling your home.
1. Letting Your Emotions Take Over the Sale
Hearing negative comments from homebuyers may anger or disappoint you, but try not to take them personally. It’s hard to rationalize when people don’t love your home the way you do. Try to look at selling your house like you would selling a product as a business owner. You want to convince the buyer that your house can become a home to create memories with loved ones.
2. Not Negotiating With a Buyer
Expect a buyer will do their homework regarding your asking price. If your price is above fair market value, they may look elsewhere. If you’re too firm in your selling terms, you may deter potential buyers who can find concessions elsewhere. Consider first-time homebuyers who may want closing cost assistance—if you decide not to help out, that could be a dealbreaker. You can lose money paying for continued marketing, advertising, and utility costs during the selling period. Be courteous if you disagree about specific items of concern, and have valid reasons for backing up your claims.
3. Overpricing Your House
Another common mistake is when you slap a price tag on your house that is too high. Suppose your agent prepares a comparative market analysis (CMA), and you decide to list your house for a price above fair market value. The higher price tag could push buyers to other homes in the area. Overpricing is one of the top reasons to work with a professional. Agents can help you choose a listing price based on recent sales, housing market trends, and your home’s unique features.
4. Skipping Staging (or Leaving It Empty)
We get it: staging a home is a lot of work! It takes effort to spruce up an entire house; not staging or leaving the home empty aren’t great options.
If you’re short on time or don’t have the budget:
- Paint a wall or two
- Set the table
- Add plants and flowers
- Rearrange your furniture
Ask a friend to walk through your house and mention if anything looks out of place. There are easy ways to make an effort while being cost-conscious.
5. Selling by Yourself
This is a big one. It’s tempting to sell your own home and avoid paying an agent’s commission fees but going solo can cost you money. A 2020 survey by the National Association of Realtors (NAR) found that 89% of sellers worked with an agent. The same study revealed that For Sale By Owner (FSBO) homes sold for less than their counterparts (the median agent-sold home was $242,300 while the median FSBO-sold home was only $217,900).
6. Not Cleaning Before a Showing
A dirty laundry room and toothpaste stuck to the bathroom sink is never pleasant. You want your house to look comfortable before a showing if you still live in it, but not so comfortable that people can see your dirty laundry. Declutter, sanitize, and organize your personal items. Just before a showing, display fresh, white towels in your bathrooms to make a good impression.
7. Assuming Home Selling Costs Are Low
One thing to remember when selling a home is that the costs can be high. To find out how much you can make on your home’s sale, check out the Opendoor calculator.
- Commissions to your seller’s and buyer’s agents: an estimated 6% of the home sales price
- Taxes, including capital gains tax
- Moving expenses, including gas, rentals, and storage space
- Home repairs
- Any outstanding mortgage loans.
8. Hiding Major Problems
Savvy buyers will quickly figure out if your home has a major defect. If you decide not to report damage, it will become evident in the routine home inspection. No one wants to be caught off-guard, especially those interested in owning your home. Instill confidence in a buyer by being forthright about any significant problems or fixing them before putting your home on the market.
9. Not Making Repairs
Make an effort to repair systems like your plumbing or HVAC. Undertake repairs yourself or hire a professional, as it can be more cost-effective than leaving it to the new owner. Most potential buyers will see the repairs as burdensome and expect a discount on the listing price. It can also help you sell your house quickly when you market it as “move-in ready.”
10. Not Using Professional Photos in the Listing
Think like a homebuyer: how can you make your house irresistible? It’s about setting the expectation that your home has the features buyers want. Professional photographers, especially those trained in real estate photography, know how angles and lighting can enhance a house’s features. Your agent might also have experience, so ask them! The New York Times reported that out of all buyers by generation except for buyers aged 73-93, the most useful information found online was photos.
The Bottom Line
Make sure to carefully consider all the financial and physical aspects of selling your house. Understand that selling is a big commitment, but you will see the rewards when you take steps to ensure a smooth sale.
