Mistakes To Avoid When Selling
Setting the right price is an important step in selling a house. This price will allow you to sell your house quickly and for a comfortable profit.
Pricing Your Home Too High Is A Risk
One common mistake when listing your home for sale is to give in to the temptation of listing at a high price. Here are the reasons:
It discourages qualified buyers within your price range.
This can cause your home to sit on the market for a long. The longer your home is on the market, the more likely buyers will feel less pressure to make an offer.
Buyers will feel more powerful if you have to reduce the price.
You might sell your listing for less if it goes stale.
How To Determine The Right Listing Price:
Sellers have a few options to determine the correct listing price.
Request A CMA From An Agent
A CMA (comparative market analysis) is a valuation of your home that a local agent does. Their analysis is based on similar homes that have been sold recently, and they will often offer this service for no charge to you.
Collect Comps on Your Own
You can conduct your own comp research without an agent by using the following criteria.
Same neighborhood
Similar dimensions (within 300 square feet)
Similar home type -- house, condo, or townhouse
You might also consider similar upgrades or conditions (if your comp has hardwoods but your home has vinyl flooring, you will need to make some adjustments).
Hire An Appraiser
A professional appraiser can charge $500-$700 to give an appraisal of your home. This is especially important if you are selling in a highly competitive market. An appraisal report can provide you with peace of mind and can help you negotiate with buyers.
Do Not Worry About Underpricing
Sellers worry about overpricing. Agents use underpricing in hot markets because a lower asking cost can attract more buyers and create bidding wars. Because of the high demand, you could sell for more than the market price.
The Wrong Time To Sell
Timing of your sale is crucial to the final price. The best time to sell is usually the first half of May. This window saw homes sell six days earlier than the average and at $1,600 less than the average point in the year. The weather can have an impact on the selling window in your city. Keep that in mind as you research the best times for selling in your area.
You should also keep in mind the timing of the sale. This has less to do with the month of the calendar year and more to do with the length of time you have owned the house. You must have lived in your home for at least two years to avoid capital gains tax on the sale or transfer of your primary residence.
Do Not Skimp On Repairs
Even the smallest defects can turn buyers off. In addition, they'll be suspicious if there are other problems in your home, such as loose knobs, leaky faucets, or wall dings.
Painting the interior is the most popular project (36 percent of the sellers), landscaping the backyard (29 percent), replacing or repairing flooring (26%), and improving the bathroom (also 26%).
Choice 1: Corrective Pre-Inspection
Sellers may choose to have a pre-inspection done. You can set a higher selling price by hiring an inspector before you list. This will ensure that potential problems are not discovered before buyers do. Your home will be more appealing to buyers who are looking for a ready-to-move-in home.
Sometimes, completing repairs before you list can save more money than waiting for the buyer to find the problem and negotiating closing credits. For example, you might need to replace your entire HVAC system, while a buyer may only require a few parts. You will also be able to control the contractor you choose, as well as the price and materials used.
Average Costs For The Most Expensive Home Repairs
Although many home repairs can be done for cosmetic reasons and are relatively inexpensive, sellers sometimes don't know what big-ticket issues they need to address before listing. Unfortunately, these are the most common expenses for big, expensive repairs.
Plumbing: $7,000
New roof $6,200
New driveway: $4,000
Exterior paint: $3,000.
Windows and doors: Prices range from $600 to $900 per window and $100 to remove old windows
New furnace: $2,300
Electrical: $2,000
Flooring and carpet: $2,000
Deck: $2,000
Choice 2: Offer A Credit For Repairs
A repair credit is a way to allow the buyers to finish the repairs themselves after closing.
Choice 3: Lower The Listing Prices
You can reduce the price of your listing if you have discovered any issues before you list. However, some buyers might still attempt to negotiate a lower price. Therefore, make sure you make it clear in the listing description that your listing price reflects a known problem.
Don't Let Emotions Stop You From Selling Your Home.
It is important to keep your emotional connection with your home separate from the details of the sale to sell it successfully. Although it can be difficult to negotiate with buyers if you love your home, it is important to act professionally.
Emotional Error: Taken Personally In Negotiations
Keep your cool during negotiations and the selling process. You should be realistic about the possibility of some issues being discovered during the home inspection. There is no perfect home, especially older ones. Do not let the buyer's request to make minor repairs derail your deal.
It doesn't matter how much you put into your home. However, it doesn't necessarily mean that a buyer will desire it. If the buyer requests a professional to redo an interior painting job that you did yourself, this should not be taken as an insult to your painting skills.
Emotional Error: Not Being Able To Accommodate Showings
Even though they are inconvenient, multiple showings and occasional open houses are part of the home-selling process. Few buyers will buy a home without seeing it. Therefore, listing agents should coordinate showings and provide a lockbox so buyers' agents can tour the property (at times that you agree to).
When buyers visit the house, make sure you vacate it. Buyers may not like the idea of having the seller there. Buyers should be able to imagine themselves living in the home. It's difficult to do that with someone looking over your shoulder.
Failure To Prepare And Stage
It is worth the time and effort you put into making your home stand out before it goes up for sale. Buyers want a bright, clean and uncluttered home. Recent buyers surveyed by 48 percent said staging a home was very important in their decision to buy a home. These home-selling tips will help you clean, prepare and stage your house.
Make Sure To Clean Thoroughly
Vacuum, sweep, and mop.
Polish and wipe down countertops and appliances.
Clean bathrooms.
Eliminate odors.
Launder and fold laundry.
It is important to organize your closets. Buyers love having storage space.
This process should be repeated for every other showing.
Depersonalize, Declutter, And Stage
As we have said, buyers need to be able to visualize themselves living in the house. It can be difficult to imagine yourself living in a home with all your possessions. These are some staging and decluttering tips.
You can either rent a storage unit or keep your personal belongings at a friend's house.
Take a room at a time and get rid of things. A room that has fewer items feels larger and more spacious.
Donate! Donate!
Keep in mind that buyers may not necessarily like your style. You should keep decor minimal and arrange furniture in neutral, functional ways. Hire a professional stager if your furniture has a particular style. This will help you appeal to more buyers.
You can stage rooms to appeal to a wide audience. Your guest room, for example, is more appealing as a guest bedroom than a home gym.
Paint the interior. Every room looks better when it has a fresh coat of paint. This is especially important for rooms that have bold and unique wall colors. These walls won't be appealing to the majority of buyers.
Not Hiring A Professional Photographer
Although many real estate agents will pay for professional listing photos, professional photographs are essential. In addition, 79% of buyers search online for homes, so listing photos will make a first impression.
Professional photographers usually only cost a few hundred dollars. The result will be crisp, clean photos with lots of natural lighting that highlight your home's finest features.
Avoiding Curb Appeal
The exterior of your home is what potential buyers first see when they visit you for viewing. You shouldn't spend too much time preparing the interior of your house that you neglect the exterior. The following are some common landscaping tasks:
Mowing the lawn
If necessary, paint the exterior
Clearing paths
Seasonal maintenance includes trimming branches and raking leaves.
Flower planting
Not Paying Closing Costs
You can make the most costly home-selling mistake by not accounting for closing costs in the profit you make from the sale. Sellers may have closing costs that can exceed 8-10 percent of the selling price. However, there are a few items that make up your closing costs.
Commissions:
Sellers typically pay 6 percent of the total sale price. Three percent goes towards the seller's agent and 3 percent to the buyer's.
Transfer Tax:
Also known as a title tax, this tax is levied in each state. Rates can vary greatly from one state to the next, depending on the price of the house.
Title Insurance For Buyers:
This policy protects the buyer from any liens and disputes regarding your home's ownership. It can cost anywhere from $1,000 to $4,000.
Escrow Fees:
An intermediary holds funds during a transaction and pays them at closing. These fees can range from $500 to $2,000.
Property Taxes Prorated:
You'll be responsible for paying your home's taxes up until the closing date. This can often result in a prorated fee at closing.
HOA Fees:
You'll also have to pay your HOA Dues, prorated.
Advertising Costs:
If you sell your home, you will need to pay advertising costs like flyers, online ads, and signage.
Attorney Fees:
You will have to pay the attorney's fee if you hire them. An attorney is required for any real estate transaction in 21 U.S. states (and Washington, D.C.). These are the states of Alabama, Connecticut, and Delaware, Florida. Georgia. Kansas. Kentucky. Maine. Maryland. Massachusetts. Mississippi. New Hampshire. New Jersey. New York. North Dakota. Pennsylvania. Rhode Island. South Carolina. Vermont. Virginia. West Virginia.
