Top-7 Mistakes a Seller Can Make
There can be any number of reasons to want to sell a home, whether it's a change in family size, job relocation, or just a desire to own a nicer home. Whatever the reason, there are certain things that need to go right, or else the home will sit on the market.
Here are the top-7 mistakes a seller can make when trying to sell a home:
1. Jumping the gun by putting a home on the market prematurely is one sure way to cost yourself time and money. Maybe you are impatient, or maybe you've procrastinated and now you're facing a deadline of some sort. Regardless, don't neglect the pre-sale work that needs to be done before putting the home on the market. Things like cleaning or replacing old carpet, painting, cleaning and making needed repairs must all get done, or else the presentation will suffer.
2. Going overboard with improvements can happen when the upgrades are not typical for the area. Things like granite, stainless steel appliances and Brazilian hardwoods are nice. But if such improvements are anomalous to the area then you are not likely to recoup your investment. What's more, your home still stand out like a sore thumb.
3. Pricing a home based on need is always a poor strategy. Maybe you need to net a certain amount. Or maybe you just feel that your home is worth €X' for some emotional reason. It is important to keep in mind that regardless of what ASKING price you set, in the end, it is the market that determines the final SALES price. It might sound harsh, but the market doesn't care about what you want.
4. Hiring an agent for emotional reasons instead of business reasons is a mistake that could wind up costing you. Maybe you just want to help your niece, who just got her real estate license, or maybe a slacker friend assures you he can sell your home in no time. While there is nothing wrong in principle with hiring a friend or family member, your decision to do so should always be based on business factors, such as a proven track record and expert knowledge.
5. Emotional attachments are hard to avoid. For you, the home you're trying to sell is not just a commodity; it is a symbol of personal experience, fond memories, etc. But for potential buyers the opposite is true. To them, your home is just another house that either does or doesn't meet certain criteria on their checklist. All the love and TLC in the world won't affect won't matter unless it translates into an objectively marketable commodity.
6. Don't try to cover up problems. It may be tempting to not disclose some issue, just because a buyer didn't ask. But if it is a significant problem, then you can bet the buyer will eventually find out. And when that happens, you could find yourself facing a lawsuit. Things like a cracked foundation, mold, faulty electrical, leaking roof and leaky basement are just a few examples of problems that can come back to haunt you.
7. Doing all the presale work is essential to ensuring a smooth process. If your home is financed, take a look at your paperwork or call your lender to find out whether you have a pre-payment penalty. Pre-payment penalties can run as much 5-6 percent of your outstanding balance. Get familiar with your local market. Seek an impartial opinion of your home's value based on comparable sales. If your asking price is out of line with what comparable homes have sold for then it is best to lower your price sooner rather than later.
Avoid these mistakes and you will find the process of selling your home is much easier. In the end, it is about getting a fair market value and spending the least amount of time to do so.
Here are the top-7 mistakes a seller can make when trying to sell a home:
1. Jumping the gun by putting a home on the market prematurely is one sure way to cost yourself time and money. Maybe you are impatient, or maybe you've procrastinated and now you're facing a deadline of some sort. Regardless, don't neglect the pre-sale work that needs to be done before putting the home on the market. Things like cleaning or replacing old carpet, painting, cleaning and making needed repairs must all get done, or else the presentation will suffer.
2. Going overboard with improvements can happen when the upgrades are not typical for the area. Things like granite, stainless steel appliances and Brazilian hardwoods are nice. But if such improvements are anomalous to the area then you are not likely to recoup your investment. What's more, your home still stand out like a sore thumb.
3. Pricing a home based on need is always a poor strategy. Maybe you need to net a certain amount. Or maybe you just feel that your home is worth €X' for some emotional reason. It is important to keep in mind that regardless of what ASKING price you set, in the end, it is the market that determines the final SALES price. It might sound harsh, but the market doesn't care about what you want.
4. Hiring an agent for emotional reasons instead of business reasons is a mistake that could wind up costing you. Maybe you just want to help your niece, who just got her real estate license, or maybe a slacker friend assures you he can sell your home in no time. While there is nothing wrong in principle with hiring a friend or family member, your decision to do so should always be based on business factors, such as a proven track record and expert knowledge.
5. Emotional attachments are hard to avoid. For you, the home you're trying to sell is not just a commodity; it is a symbol of personal experience, fond memories, etc. But for potential buyers the opposite is true. To them, your home is just another house that either does or doesn't meet certain criteria on their checklist. All the love and TLC in the world won't affect won't matter unless it translates into an objectively marketable commodity.
6. Don't try to cover up problems. It may be tempting to not disclose some issue, just because a buyer didn't ask. But if it is a significant problem, then you can bet the buyer will eventually find out. And when that happens, you could find yourself facing a lawsuit. Things like a cracked foundation, mold, faulty electrical, leaking roof and leaky basement are just a few examples of problems that can come back to haunt you.
7. Doing all the presale work is essential to ensuring a smooth process. If your home is financed, take a look at your paperwork or call your lender to find out whether you have a pre-payment penalty. Pre-payment penalties can run as much 5-6 percent of your outstanding balance. Get familiar with your local market. Seek an impartial opinion of your home's value based on comparable sales. If your asking price is out of line with what comparable homes have sold for then it is best to lower your price sooner rather than later.
Avoid these mistakes and you will find the process of selling your home is much easier. In the end, it is about getting a fair market value and spending the least amount of time to do so.
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