Costly Mistake Sellers should Avoid

Today I’ll spell out seven of the most common home seller mistakes and how you can ensure your sale doesn’t cost you unnecessary time and money:

1. Overpricing or underpricing your home. If you overprice your home by just 5% in a hot market, chances are it’ll sit unsold on the market for several months, and when your home sits, your pool of prospective buyers shrinks. The results aren’t any better if you price too low; your home might sell quicker, but you’ll end up leaving thousands of dollars on the table. It’s really important to price correctly right from the get-go.
2. Not properly preparing your home. According to Realtor.com, a well-staged and prepared home will sell 88% faster and for up to 10% more than its cluttered counterparts as well as those that need renovating.
   “By the time your transaction is complete, you’ll have anywhere from 12 to 20 people to thank for helping you get there.”
3. Limiting your showings. You must be ready to leave your property at a moment’s notice for a showing or even for a few hours while an open house is held. After all, a home that’s hard to show is a home that’s hard to sell. I’ve seen many sellers make the mistake of being inflexible. It’s not always fun, but you’d do well to work around buyers’ schedules.
4. Underestimating your closing costs. Aside from commission fees, expect to pay anywhere from 1% to 5% of your home’s purchase price for renovations, repairs, and closing costs. A good Realtor will go over every cost with you.
5. Reviewing offers with a closed mind. If you receive multiple offers on your home, don’t automatically jump at the highest one. Not all offers are created equal. Beyond the price, consider certain terms of the offer such as the earnest money deposit and down payment amounts, as well as any contingencies. Each offer should be evaluated with an open mind.
6. Not understanding the home-selling process. By the time your transaction is complete, you’ll have anywhere from 12 to 20 people to thank for helping you get there: Realtors, inspectors, lenders, appraisers, escrow officers, notaries, and more. Developing an understanding beforehand of just how involved the selling process is will allow you to better anticipate potential surprises and prepare for the change of ownership once escrow closes.
7. Choosing the wrong Realtor. The right Realtor will run a market analysis on your home so that you price it correctly, do a walk-through with you to identify ways in which you can add value, and go over your net sheet with you so you’re not in the dark about costs you’re responsible for. The wrong Realtor won’t do those things.

Bonus tip: When your house is priced correctly and prepared for the market, there’s a good chance that you’ll have between five and 20 showings the first weekend it’s listed. Instead of worrying about keeping the house spotless, pack your bags and take the family on a short vacation when you list, and let your Realtor take care of getting your home shown to as many people as possible.

If you have other questions about buying a home, selling a home, or anything else, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.