In 2020, the number of sales of existing homes rose to a fourteen-year high.
This might make you consider selling your own home during this seller's market.
However, home sellers should be aware that there are a number of common mistakes that can mean you don't profit nearly as much as you would hope to.
Let's take a look at ten common mistakes people make when selling their homes.
1. Home Sellers Pricing Their Homes Too High
It's important to price your home right when you put it on the market. If the price you set is unrealistic, you're setting yourself up for disappointment.
Real estate agents will run a comparative market analysis to help determine a fair listing price for your home. Unless your selling during a housing market bubble, you shouldn't expect your house to sell when you list it too high.
This is one of the top mistakes home sellers make. Actually, when you price a house on the lower side, you might initiate a bidding war and get more than you initially expected.
2. Not Preparing Your Home Before Listing
Some sellers underestimate the importance of getting their home's cleaned up before selling. When buyers view homes their interested in, they are trying to imagine themselves in it. You cannot expect the people attending open houses or showings to "see through" the mess and chaos of your home.
It's important to clear the clutter out of your home. Put extra furniture and belongings into storage somewhere. Don't cram clutter into closets, as home buyers will check out every nook and cranny.
On top of decluttering, you'll need to deep clean your home. It can be worth hiring a house cleaning service for this purpose.
You'll also want to make sure the outside of your home is cleaned up. There shouldn't be clutter in the yard and the lawn and landscaping should be tidy. Some sellers will invest in boosting the curb appeal of their home to make a good first impression.
Are you trying to avoid all the time and expense of preparing your home for sale on the market? Selling your home for cash is a convenient option. You can learn more here.
3. Selling FSBO Without a Real Estate Agent
Real estate agent fees can be steep, and this can incentivize people to sell their home 'for sale by owner.'
One thing a lot of people don't realize when they go the DIY selling route is that selling a house is a lot of work. You're basically taking on a second job.
Home selling isn't just posting a craigslist ad and putting up a yard sign. You'll have to pay to list your home on the MLS, hire a professional photographer, pay to clean and make repairs, set up and conduct showings, and negotiate with buyers.
Even though there are fees when you sell with a real estate agent, people typically make more money when they hire an agent because of the agent's expertise in selling on the market.
4. Selling at the Wrong Time
The housing market ebbs and flows. Sometimes it's a seller's market and sometimes it's a buyer's market. It can be hard to precisely time your home sale, and sometimes life conditions don't make it possible to wait for the perfect opportunity.
Find out when the market is hottest in your location. Sometimes it can actually make sense to sell at non-peak times if you want to have less competition and attract buyers who are in need of buying right away.
5. Not Investing in Good Photos
What is the first thing you look at when you're browsing real estate listings online? More likely than not, it's the photos.
It's easy for sellers to not understand how important good real estate photos are. They know their house in and out and understand what's appealing about it. People searching for homes online, though, have never seen your house, and are comparing it to likely dozens of other homes for sale in your area.
If you just take a couple of blurry smartphone photos of your home, you're not doing yourself any favors. It's important to have high-quality photos that highlight the best features of your home and attract the right buyers.
Did you know that having professional real estate photographs can make your home sell 32% faster? The visual representation of your home is one of the most important factors in why prospective buyers will make the call to set up a showing.
6. Taking Offers and Negotiations Personally
Selling a home can be an emotional process and incredibly stressful. You've likely put a lot of time, money, and energy into making your house a home, and it can be difficult to say goodbye.
That being said, it's important to keep your emotions in check when selling your home. This is a business transaction, and letting your emotions get the best of you can mean you're not making the best financial decisions.
Some sellers might be incredibly nit-picky over the smallest of details. This can drive buyers away and make them not want to deal with you or your home at all.
7. Hiding Major Issues
If your property has major issues, the last thing you want to do is hide that from potential buyers. If you lead buyers astray in terms of the home's condition, these problems will come to light during the inspection.
When your house needs big repairs, you have three choices. You can either do the repairs before listing the home, you can list the property and offer credit to the buyer in order to fix the issue, or you can price the home lower than its market value to make up for the repairs buyers will need to make.
If you opt to not do the repairs before listing the home, you're choosing to have fewer people interested in your home. Many buyers just want a house that's move-in ready. Only a small segment of buyers are looking for something they'll need to fix up themselves.
8. Not Being Accommodating to Buyers
There's no way around it: showing your house can be inconvenient. For this reason, a common mistake that people make when selling their homes is that they are unaccommodating to showings. Unfortunately, when you do this, you're only hurting your own prospects of selling your home.
It's important to have your home tidy and clean before each and every showing. This takes time and energy that a lot of people don't want to put in.
Showing your house has to take priority when you want to sell it efficiently. That means canceling plans to prepare your house if a last-minute showing is scheduled. It's not fun and it's inconvenient, but that's the way it works.
9. Underestimating the Cost of Selling Your Home
A lot of people don't factor in the expense of selling their home. On the face of it, you're the one selling your home, so it shouldn't cost you anything, right?
Wrong.
When you sell your home, you need to budget for closing costs, staging costs, agent commissions, home repairs, home improvements, seller concessions, the next house you purchase or rent, and moving expenses.
If you're trying to avoid all the additional costs of selling a home, you might consider selling your house for cash to an investor. You can learn more about Katy & Frank Home Buyers here.
10. Selling When You're Underwater
When you have negative equity on your home, which is also referred to as being underwater or upside-down, it means that you owe more on your home than what it's worth.
When you sell a house, a portion of the proceeds goes towards paying off the remainder of your mortgage if you have one. If the amount of money you're receiving for the home doesn't cover your payoff amount for the mortgage, that means that you'll have to come up with the extra cash to cover the rest of the debt.
The only reasons to sell a house when you have negative equity in it are to avoid foreclosure or bankruptcy. Usually, though, your best option is going to be to continue living in your home and work diligently to pay down your mortgage. Once you have more equity in the home and can at least break even but hopefully profit, then you can sell it.
Are You Trying to Sell Your House in Omaha Fast?
Traditional sales are time-consuming, costly, and really stressful. Home sellers that are looking for a more convenient and efficient option might consider selling your home for cash to an investor.
When you sell your house to us at Katy & Frank Home Buyers, you can sell your home in as-is condition. That means you don't have to go through the time and expense of making repairs or dolling up your house for the open market. When we buy your house, we work on your schedule and can close in as little as seven days.
If you need to sell your house in Omaha fast, you can get a "no-obligation" offer for free today.
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