Selling your home is typically a stressful venture. Unfortunately, some people create even more difficulties by making one of these four amateur blunders. If you are thinking of selling your home, make sure you’re adequately prepared and don’t make one of these mistakes.
Selling a home may involve such a long to-do list; it can seem hard to get things done right. With some proper planning, however, you can avoid making the following home seller mistakes.
Home Seller Mistakes 101
Table of Contents
Not keeping your house clean
First impressions speak volumes. There’s nothing more off-putting to a potential buyer than walking into a filthy residence, but a thorough cleaning job can be a cost-effective way to make your home attractive to potential buyers. To make cleaning easier, first eliminate any clutter. Clutter includes the build-up of items within closets and cabinets, old appliances, clothing, and furniture. You may even consider donating the things you find to charity.
After removing any clutter from your home, create a checklist for what needs be done, in each room; this includes, but is not limited to washing windows, mopping floors, and dusting surfaces. You may want to hire a professional service to eliminate some of the efforts on your behalf.
Skipping on staging
According to House Method, staging your home is an opportunity to create a lasting impression on buyers. In-home staging, you’re transforming your home into a place that’s attractive and memorable to buyers. Different from decorating, in the sense that decorating may involve sprucing up your home; with memorabilia and “stuff” that creates a personalized and sentimental place for you.
Staging is about creating an inviting and clean slate for the buyer to envision a place where they can see themselves and their stuff. Useful home staging emphasizes the stylistic elements of home while creating a lived-in feel, and can be achieved, with a few interior design refreshments.
Forgetting to claim tax deductions
Selling a home is usually accompanied by a windfall of cash, and as with every large sum of money, some inevitably goes to Uncle Sam. Fortunately; you can take advantage of certain tax deductions to maximize the profit you make on your sale. While all of these may not apply to you, the earlier you’re aware of these, the better (some are time-sensitive).
For example; you may deduct the cost of renovations or repairs, but only up to 90 days out from completion. If you’re debating on whether to buy or rent your next home, keep in mind that there are also many tax benefits to homeownership.
Not hiring a real estate agent
Going it without an agent is a rookie mistake most people won’t make twice. While it sounds good in theory to save on the commission, the time and energy you will waste are rarely worth it. Also, many times an agent can save or recoup the money you’re spending on their networking capabilities and negotiation techniques.
In an attempt to save on commission costs, home sellers may pursue a for sale by owner (FSBO) approach. While there is the potential of FSBO in parts of the country; less likely in New York City. There are countless advantages to hiring a real estate agent. They can help you price your home, give your home visibility to other real estate agents, in online listings, negotiate with prospective buyers, and navigate all the bureaucracy and jargon of home buying and selling. The key is to do your due diligence and interview real estate agents before selecting one, to find one you trust will put your interests first.
The right agent knows how to help stage your home to make the most out of your space. He or she has access to professional photographers to best highlight your home and attract interest. Finally, an agent will help you to sort through the mounds of paperwork synonymous with the home-selling process.
Emotional Attachment
It’s not unusual to have an emotional attachment to your home. It is the place where you’ve made memories and something you put hard work into creating. The problem is a future buyer isn’t paying for your memories. They are purchasing a property. When selling your home, it’s essential to estrange yourself from the emotional attachment you have with your home. From the staging to the price, you need to remove your emotions to sell your home effectively.
Overvaluing Property
Overvaluing property can happen for some reason. You may have bought your house when the market was at its peak and want to recoup that money. Plus, you want to get back money from the hundred thousand dollar kitchen you added before the market crashed. When you price your property, you can’t price it at what you want for the property because this is what usually leads to overvaluing. You need to price it at what the market will bear. This is where having a real estate agent is especially important to prevent you from overvaluing your property.
Don’t leave your home sitting on the market for months; avoiding these four mistakes can make all the difference when it comes to selling your home.
No Negotiation Techniques
Unless you’re incredibly lucky and get your asking price with no contingencies, chances are good you’ll have to enter into negotiations. People mistakenly believe they need to be tough and intimidating to get the upper hand in negotiations. Instead of being a bully, be smart about your negotiations. Learn about the buyer and what’s motivating that person and use that information to your advantage. A good negotiator also knows the price isn’t the only aspect of the discussion. Closing costs, length of escrow, or even paying for moving costs are all negotiation points that don’t necessarily involve the final selling price.
A good negotiator also doesn’t sweat the small stuff. This misstep usually happens when people let their emotions and their egos control the negotiation instead of their brains. Suddenly, without realizing it, a person is arguing over a few hundred dollars to win when it’s hundreds of thousands or millions of dollars at stake. If the sale is essential, a good negotiator won’t worry about the small stuff.
Lacking flexibility
When selling a home your living in, you likely don’t want the pressure of having strangers parade through on a moment’s notice. You may offer up showings with brief notice, set strict visiting hours, or only keep the property viewable for a matter of days. Consider the buyer’s perspective. Buyers who aren’t local may be in town for just a weekend, which means limited time to visit potential properties. Buyers’ work schedules and family commitments may also make evening showings their only option.
Real estate agents have their restrictions; they often plan home touring routes for their clients in advance and seek to create a schedule that is as hassle-free as possible. Such involves visiting properties that are easily accessible and available at any time. Every missed showing is a missed opportunity, so if you genuinely must be steadfast on showing hours; work with a real estate agent to create a schedule that involves some compromise but can accommodate many of your needs.
No matter the market if you want your property to be competitive and sell for the highest price possible; avoid these home seller mistakes.
