You might think that selling a home is a simple process. You clean it from top to bottom, inside and out, show it to a handful of people, someone puts in an offer and then they buy it. If only it were that simple.
Selling your home is far more complicated than you’d think, and many things need to get taken into consideration, so your transaction runs smoothly. Things such as legal requirements, and even realistic conditions, can cause an inexperienced seller to make mistakes. Avoid these common mistakes as best as you can.
Indecisive Listing Prices
When you’re in the beginning phases of listing prices and what you should sell your home for, there are things you are probably thinking about. The amount of your home should be what you paid for the property, plus improvement costs, and real estate agent fees; that isn’t realistic.
The listing price of a home is the most critical consideration of the entire transaction. If you price your home too high, you’re risking having your property remain on the market too long. The longer it stays on the market, the less desirable it becomes. It also poses the risk of having other home sellers in the area use your overpriced listing to make their home look like a bargain. Additionally, avoid being indecisive with the price. It could put potential buyers off.
Ordering Pricy Upgrades
Putting your home on the market is a decision that typically results in improvements made to the house. While some of the upgrades can increase your chances of getting a better sale price, others are illogical and can cause you to lose money.
Both home and real estate experts suggest targeting only the improvements that your home needs, and the ones that are likely to return your investment. For example, redoing the insulation in your attic and basement could pull in more than what you paid for the improvement. However, when you dish out thousands of dollars to pay for a kitchen renovation that isn’t needed, you’re not going to get the amount you paid out of it.
Misrepresentation on Seller Disclosure
Real estate transactions are complicated and include essential legal documentation that assists and finalizes the sale. It’s vital that the documentation gets provided with the utmost honesty and respect.
There have been instances where sellers have failed to provide honest answers during the inspection questioning merely because they don’t want to delay the process. It’s crucial that you remember that doing this could risk your entire sale, and cost you a lot of money in the long-run.
Often, buyers can seek remedies from the seller even after the deal has closed. If you answer the questions incorrectly and the real answers get revealed, you could also be opening yourself up to potential legal action.
For Sale by Owner
The majority of homeowners sell their homes with the assistance of a real estate agent, but there are some who don’t. Putting your home up as a “for sale by owner” property could end up costing you more money, even though you aren’t paying for realtor’s commission.
Typically, when you hire a realtor, you’re getting their contacts, expertise, marketing, and comprehensive network range. You’re also getting your property marketed to their clients who have hired them as a way to find a house. If you sell your property yourself, you’re paying out of pocket for the marketing and other odds and ends that you’d need to reach all of the people a realtor would be able to reach.
Ignoring Expert Advice
Homeowners hire realtors to assist with selling their home and make the transaction as stress-free as possible. If you hire a real estate agent, you should be seriously considering the advice that they give you; ignoring it could be detrimental to the sale and cause you to get less return on your home.
If you find that you’re not able to take the advice seriously, or that you don’t agree with any of it at all, you should look into getting another realtor. They are there to help you during the process, and if you don’t consider what they’re saying, you could be putting the sale of your house in jeopardy.
Selling a home is a complicated and challenging process. It requires attention to detail, honesty, and hard work. When you set a decent and reasonable market price, minimize any unnecessary upgrades, tell the truth on legal documentation or listen to your realtor; the transaction becomes easier.
What other things can you think of that would derail the sale of a home?