The 4 Common Mistakes Home Sellers Make
Low-interest rates and a strong economy make the perfect opportunity to reap substantial profits in the real estate market. Whether you are upgrading, downsizing, or relocating, obtaining the maximum amount possible from the home sale is the goal. So, while preparing your home for listing, avoid some common mistakes sellers make before your home hits the market.
Pricing for maximum profit (treating your home like a piggy bank)
One of the biggest mistakes sellers make is determining the listing price of their home by the amount of money they want/need to receive from the sale instead of what it is worth. Remember, a home is only worth as much as someone is willing to pay for it. The market sets the price, not the seller.
The most accurate way to value a home is to work with a realtor and run a comparative analysis that looks at similar homes on the market, homes pending closing, and homes that recently sold.
Thinking you can lower the price later
Another mistaken belief that hurts those selling a home is the thought/strategy that they can list their home at a high amount to “test” the market and lower the price later. This rarely ever works, even though some hope to get lucky and find a buyer willing to pay the higher price tag.
When a listing initially hits the market, it garners a lot of interest right away. This is an opportunity that sellers cannot miss. For buyers and purchasing agents to take the sale of the home seriously, pricing correctly the first time is necessary. If the home is overpriced, there will be no viewings and no offers. By the time the seller reduces the price, the exposure that occurs in the first couple of weeks will be long gone, and all you will have to show for it is having missed a great opportunity.
Not taking care of the little things
Little things go a long way when listing a home. For many, major home improvements are not in the budget and are likely not recommended. If the return on the investment is low, major repairs/renovations are a risky investment. Cleaning up the property, touching up the paint, and taking care of the landscaping all take little time, effort, and money.
Refreshing outdated fixtures and replacing lightbulbs with high wattage bulbs are a couple of minor expenses that can increase the appeal of a home, especially the light bulbs (the more light the better).
Going FSBO to save money
While it is true that real estate agents work on commission, and they have a business to run, the reputable ones will always put the best interests of their clients first. Generally, the price paid for a real estate agent is worth it, and they almost always produce a higher sale price than those going the for sale by owner (FSBO) route.
Real estate agents have vast networks, extensive experience in marketing homes, and are always available for showings (something that is key and not the case for busy homeowners). Even though it is a commission business, real estate agents don’t make a dime if the home doesn’t sell. For their sake, and yours, they will do their best to sell the home for the highest amount possible.
Selling the largest asset of your life may seem like a tremendous undertaking. With a little preparation and knowing what to look out for, success is all but guaranteed.