Most people will only own up to three homes in their lifetime, which means that the buying and selling process is generally unfamiliar each time you enter into it.
With something so fresh and new, it’s only natural to make mistakes. You may vow to avoid those mistakes the next time, but a considerable amount of time will likely pass before you’re put into this position again.
However, if you’re aware of the most common mistakes that home sellers make, you may be in a much better position to avoid them when the time comes to become a seller yourself. Familiarize yourself with the following information, and you may be surprised at how it may change the sales process for the better.
Not Choosing the Sales Method that Suits Your Timeline
When you learn how to buy a house, you generally gain insight into the different buying and selling methods, like through an agency, for sale by owner, and buying or selling directly through a professional buyer or investor.
You come to understand the pros and cons of each sales method and how they can be suitable for different people’s needs. However, when the time comes for you to sell your home and move on, you may not realize that it can be in your best interest to choose a sales method that suits your timeline.
You might need to sell your home quickly, which means selling through a real estate company may not be a suitable option. Many houses sit on the market for a month or longer, with various parties trying to negotiate the best possible terms.
Let your urgency decide how you sell, as trying to sell yourself or selling directly to a professional buyer who can offer cash in as little as a week may be ideal for anyone in a hurry to move.
Not Factoring Fees Into Your Calculations
When you learn how much you can sell your property for, it’s easy to assume that you receive 100% of that figure. However, that’s not always the case.
If you’re selling through a real estate agency, you may be expected to pay 2-6% of the sales price in fees, which can be thousands of dollars you possibly weren’t expecting to part ways with. There are also legal fees to consider, such as those associated with lawyers and conveyancers.
If you have a mortgage, it’s important to remember that a significant sum of your sales money will go towards that, with potential fees from your bank for paying off your mortgage early.
Your sales method can sometimes determine how many fees you have to pay. For example, a professional buyer often covers some of the closing costs.
Spending Too Much On Renovations
It makes sense to make your home as presentable as possible when you list it on the public market. The more desirable it looks, the more money you may receive.
However, there is always the risk that you may spend more on renovations than you will make once you sell it. If you’re determined to freshen up your home before listing it for sale, focus on small and cost-effective changes that have the most impact.
For example, DIY landscaping is generally inexpensive, yet it can transform the overall look of your property. Painting and new flooring can also make a dramatic difference in your home’s appearance without breaking the bank.
Steer away from those more expensive renovations like designer kitchens and bathrooms that can cost tens of thousands of dollars and aren’t guaranteed to result in a dramatically increased sales price.
Setting the Wrong Sale Price
Setting the wrong asking price can make or break your sale. Price it too high, and it can sit on the market long past when you were hoping to move out. Set it too low, and you’ll be inundated with offers to the point of becoming overwhelmed.
When you sell through a realtor, they generally have many tools at their disposal to make sure the asking price meets market demand as closely as possible. They also often consider their vendor’s requests.
Professional buyers tap into many of the same resources as realtors to come up with an appropriate figure. This price generally reflects the market and the effort they have to put into renovating the home so that they can on-sell it.
One of the most common environments for incorrect pricing to happen the most is when you try to sell your property yourself. By relying on experts with market knowledge and property insight tools, you may be able to avoid this problem altogether.
Only Considering Who Offers the Most Money
Sometimes, home buyers have more to offer than just money, and it can be worth looking at all offers being presented to you with a broader view. For example, one buyer may be offering less than another, but they’re willing to accept your property in its current condition with no maintenance, repairs, or cleaning required for settlement.
Another buyer might have the highest offer, but they want you to make roof repairs or fix a costly problem in the kitchen or bathroom. As tempting as more money can be, sometimes the cleanest offer or the quickest with the fewest clauses is the one that can suit your unique situation the best.
Not Making Plans for After the Sale
The sales process can sometimes be stressful, which means all your time is spent focusing on how to sell your home and not what comes after it has sold. Make sure you set time aside to focus on your post-sale plans.
Make sure you have a property to move to once the sale has been finalized, and arrange for friends, family, or a moving company to help you vacate. It also wouldn’t hurt to write a list of things you need to do, such as changing your utilities address, contacting schools and vets for children and pets, and setting up mail forwarding.
The more prepared you are, the smoother moving day can be once you’ve handed the keys over to the new owners.
Not every house sale goes off without a hitch, especially since there is so much to think about and do. However, there are certainly ways to make it as straightforward as possible. These mistakes above are incredibly common with home sellers worldwide, but they don’t have to be issues you encounter if you’re aware of them and know how to avoid them.