Selling your home is one of the major life milestones, and the process may be complex. Half of the battle of selling your home is all about anticipating the problems before they show up. The other half includes considering the steps involved, such as preparing the property, listing it, making essential amends, finding the right buyer, navigating the closing process, and moving into the next place.
When you sell your house, there are many things to look after. You may face challenges that may overwhelm you, and may end up committing mistakes. During the process, any mistake may impact your finances and peace of mind. But if you know these mistakes and avoid them, the selling process may become easy and hassle-free.
Here are the mistakes to avoid when you sell your home.
Underestimating the Costs Associated with Selling
Do not underestimate the cost of selling your home. The total cost of the selling process may amount to much more than 5-6 percent in agent commissions most people expect to pay. When accounting for repairs, closing costs, and other concessions to the buyer, the cost of selling gets close to 10 percent of the total sale price.
Therefore, it is suggested to use a home sale calculator to estimate your net proceeds. Knowing such information before listing the price will help you find the best way to sell. It may also become easier to decide whether to rent the property or sell it.
Setting an Impractical Price
The price you want to sell your home for and the market’s pay are not the same. While selling your home, always consider the fair market value. Fair market value refers to how a home is valued when both the seller and buyer are knowledgeable about the property, and neither is under the pressure of buying or selling.
It is always the sweet spot between asking too little or too much for your home as a seller. If you cannot hit the sweet spot, you risk leaving your money on the table or letting your home sit on the market for a long time. Always have a general idea about the value of your home and set a realistic price.
Considering the Only Highest Offer
If the offer is the highest, it doesn’t mean that it is the best offer given your needs. It is the mistake many home sellers commit while selling their properties. It is very common in traditional sales to have contingencies. For the sale to close, the conditions must be satisfied. You may have contingencies that protect the buyer’s interest, like inspection contingency, financing contingency, and so on.
Be aware of these types of contingencies. They may impact various factors such as the timeline of the sale, complexity of the sale, and its certainty.
Overlooking Major Repairs
How do you expect someone to buy your property if it is not well-maintained in the first place? Many sellers avoid making essential repairs in the home before putting it on sale. With a long list of maintenance issues, it will only turn off the buyers and decrease the value of your home.
Always prioritize the glaring issues, especially which are likely to turn up during home inspection.
Choosing a Wrong Agent
Working with the wrong real estate agent to sell your property is the worst mistake you would ever commit. Always choose an agent who has your best interest at heart. Some agents may charge you a flat fee, while others may charge a percentage of the sales price.
As a seller, the door of negotiation with the agent always remains open.
In the end, you want your home selling process to be smooth and hassle-free. Thinking about all the things that may go wrong may be overwhelming. But if you know these mistakes, you will not commit them in the first place.