4 Mistakes to Avoid When Selling Your Home
Fundamentally, you list your house at the right price, highlight all the good points to potential buyers, get an offer, accept the offer, MOVE! Easy, right? However, this is not your typical seller’s journey. The pitfalls can compound, as well as the headaches. To help your blood pressure and your pocketbook, we have compiled our top 4 mistakes to avoid when selling your home this year.
1. Setting and Unrealistic Price
The price you want and what the market will pay can be two very different things. You might hear the term Fair Market Value, which refers to how a home is valued when both the buyer and seller are reasonably knowledgeable about the property and neither is under any pressure to buy or sell. You may have a general idea of how much your home could be worth based on homes with similar sizes and features that have sold near you. These comparable sales, also referred to as “comps”, are what many real estate agents use to suggest a listing price. The challenge is that no two comps are the same so you’d need to account for each difference between home features to be accurate. This is often called making adjustments, and it’s incredibly hard to do manually.
That is why we offer free CMA (comparative market analysis). A CMA shows the buyer/seller the properties that have sold in the ‘subject property location’ in the last 6 months. This will give the seller or buyer a very good idea of how much they can expect to sell their house for or for the buyer how much they can offer on the house.
2. Choosing the Wrong Representation
One of the biggest home selling mistakes you can make is choosing the wrong real estate agent, OR not considering a real estate agent at all. Choosing a real estate agent should be something that is well thought out and thoroughly researched. Market knowledge, their marketing plan for your home, whether they require you to sign a contract with them (and for how long), their negotiation style, how often they plan to communicate with you, if they have any current listings that might compete with yours, should all be taken into your decision.
3. Only Considering the Highest Offer
Time, concessions, contingencies, financing, inspection, appraisal, cash offers, the variables are endless. The highest offer doesn’t always mean it is the best offer. In markets like Phoenix, you may encounter eager buyers that will waive their contingencies to sweeten a less than full price offer. While on the flip side, a full price deal may use a contingency to exit a contract or lower an offer. Consider the inherent cost to these variables and make sure your agent weighs them across offers to find your the best offer for you.
4. Not Preparing Your Home for Sale
Another mistake you might be making while selling your home is lack of preparation. No one likes laundry, so a laundry list of maintenance issues on your home can be a TURN OFF for potential buyers. It can even cause a your home to decrease in value. Lenders require and inspection, and most cash buyers will as well, so consider the most glaring issues that may appear on an inspection and make them a priority to repair. Common issues that appear on inspections include items that are broken, in poor condition, safety risks, functionality issues, or structural repairs. If you are selling your home, make a checklist of these types of items as you inspect the home. Start with the major systems, like HVAC, roofing and foundations. Then the rest of your exterior; doors, garage, landscaping, irrigation, pool, windows, exterior facade. Move to your interior; appliances, sings, bathroom, walls, flooring, cabinets, countertops, cabinets, etc. Utilities and miscellaneous should finish up your list.
Selling your home is a major life milestone. It can be complex and sometimes emotional. Avoid unnecessary irritation by researching and anticipating problems ahead of time. Prepare your home, find the right representation and consider all of the variables and costs to make sure you have proper expectations set for yourself.
If you have questions or would like to consult with one of our licensed Realtors®, please fill out the form below, and we will in touch with you immediately!