A common theme when selling a home is assuming it will be easy. That hiring an agent is all it takes and the rest will work itself out. Half the battle of selling a home is anticipating problems before they arrive. Gina DeMillo Wagner states “Selling a home is a milestone, and it can be complex when you consider all of the steps involved: preparing and listing; making repairs; finding a buyer; navigating the closing process; and finally moving into your next place.”
Understanding all of this, making a mistake can impact you finically and more importantly, your peace-of-mind. Therefore, it is important to know everything you can when going into selling a home. Here are some of the most common mistakes to avoid when selling a home.
Underestimating the costs of selling is a pretty common mistake. According to Wagner “The total cost to sell a home can amount to much more than the 5-6% in agent commissions most people expect to pay. When you account for closing costs, repairs, and other concessions to the buyer, the costs of selling can be closer to 10% of the sale price.” An example of this is moving into a new home before the old one is sold. You may have to rent a temporary place or pay for both mortgages as well as other carrying costs, such as utilities, taxes, and storage.
Overpricing your home is another simple mistake made quite often. According to Business Insider “The biggest mistake people can make when trying to sell their home is overpricing it. The best thing you can do is price at fair market value or just below fair market value, but when you overprice a property you miss out on all of the buyers who see it during the first month on the market and then over time you reduce the price until it sells.” Many people have an idea what their home is worth based on other homes in the area and what they sold for. However, because no two homes are the same, the differences in the homes are what start making the value of the homes vary.
Another problem people often run into when trying to sell their home is Ignoring major repairs and making costly renovations. Repairs and renovations are something that sellers need to think carefully about and not make any quick decisions with. According to Katie Warren “A long list of maintenance issues can turn buyers off and potentially decrease the value of your home. More importantly, buyers expect the condition of your home to match the description.” Most buyers will require an inspection before closing, which means they will know of any repairs the home will need in advance. Renovating your home or making repairs can add up, and many people often put to much money into costly repairs and never see that money again. Warren states “Many sellers also consider making renovations or improvements to increase their home’s value. Renovations can be costly, and you won’t always recover the cost in the purchase price. Furthermore, some buyers prefer to make their own renovations to personalize the space. Be sure to carefully consider any renovations if your goal is to add to the home’s value.”
When considering the mistakes many sellers run into when trying to sell a home there is an alternative to hiring an agent and possibly losing money in the process. There are ways around making costly repairs and renovations, and instead just selling your home as is. There are private investors that are willing to buy properties and fix them up themselves. Usually they will buy the property for cash only but this takes the worry out bringing an agent in who will take a large commission. They will also do the renovating and repairs themselves. Receiving a lump sum of cash and having no more worries sounds to good to be true but if your thinking of selling your home try a private investor first and see how much easier life is.