Selling Your Home This Year? Avoid These 6 Mistakes For A Smooth Sale

1. Underestimating the costs of selling a home

It's essential to be prepared for various expenses related to selling your home, as it's not only potential buyers who incur additional costs in a real estate transaction. As a seller, you should anticipate expenditures such as closing costs, agent commissions, staging expenses, potential home inspection repairs, seller concessions, and even moving costs for your next residence. These cumulative costs can add up quickly, so proactive financial preparation is crucial to avoid feeling overwhelmed during the selling process.

2. Deciding to FSBO

Choosing not to hire a real estate agent and opting for a For Sale by Owner (FSBO) approach to avoid paying commissions is a significant home-selling mistake. The National Association of Realtors' 2023 Profile of Home Buyers and Sellers indicates that only eight percent of recent home sales were FSBO, marking an all-time low. The data also reveals that FSBO homes sold at a median of $200,000, compared to the median of agent-assisted homes, which was $280,000—a substantial $80,000 difference.

A competent real estate agent plays a crucial role in the selling process. They can assist you in setting a fair and competitive price for your property, guide you through the home inspection, facilitate showings (especially during the pandemic with its associated restrictions and protocols), negotiate on your behalf, manage all necessary paperwork, and more. Additionally, any challenges that arise during the transaction can be professionally handled by your agent. Their knowledge and marketing expertise are instrumental in achieving a successful and less stressful home sale.

3. Pricing incorrectly

Incorrectly pricing a home is a common and potentially costly mistake in real estate transactions. While every seller aims to maximize their return on investment, pricing a home too high can deter serious buyers and lead to an extended time on the market.

The most effective method for determining the right price for your property is to engage the services of a real estate agent. A real estate agent can conduct a comparable market analysis, showcasing the selling prices of homes similar to yours in the neighborhood. Relying solely on online home valuation tools may not provide an accurate representation of your home's value. An overpriced home can discourage potential buyers and may result in receiving lower-than-expected offers. Conversely, a well-priced home attracts knowledgeable buyers and may lead to multiple competitive offers, ultimately driving up the property's true market value.

4. Forgetting to declutter

Presenting a clutter-free home is crucial to showcasing its beauty and attracting potential buyers. A cluttered home can make it challenging for buyers to envision their belongings in the space and may deter them from exploring further. Therefore, it's essential to declutter your home before listing it for sale.

Once you've made the decision to sell, initiate the decluttering process by sorting through your belongings and eliminating items you no longer need. Address misplaced toys, stains, and odors, as these can create negative impressions. Clearing out closets and drawers allows buyers to appreciate the available storage space in your home. Engage the entire family in the decluttering process, viewing it as a proactive step toward the eventual packing required for the move.

5. Neglecting necessary repairs

Addressing minor repairs before listing your home can enhance its appeal to potential buyers and increase the likelihood of a swift sale. Even though there may be associated costs, these investments can demonstrate that the property is well-maintained and cared for. This is particularly important if you're not selling the house "as-is" or positioning it as a fixer-upper.

Consider undertaking minor cosmetic upgrades such as painting walls and the front door, replacing light bulbs, fixing damaged windows, and addressing loose locks and door handles. These relatively simple repairs can significantly contribute to the overall presentation of your home on the market. If you identify major issues like foundation cracks, electrical wiring problems, plumbing issues, mold growth, or roof concerns, consult with professionals to explore repair options. Whether you choose to handle these repairs yourself or offer appropriate discounts to the buyer can be discussed with your realtor based on your preferences and market conditions.

6. Letting your emotions get the best of you.

Selling a home can be an emotional process, especially if you've spent many years living in and creating memories within its walls. However, when you decide to sell, it's essential to approach the transaction with a business mindset. Each home sale is unique, influenced by various factors, so maintaining an open mind and collaborating closely with your realtor is crucial to navigate and evaluate purchase offers effectively. Recognizing the business aspect of the sale allows you to make informed decisions and work towards a successful transaction.