Avoid These 7 Home-Selling Mistakes

By Kristin Herman

So,  you  want  to  sell  a  home. It's an important decision to make, considering that you are probably moving into another home, and want  to  get  your  current  one off your hands. While home-selling is a milestone believe it or not  this part of your life can come with its own issues and stresses.

But don't panic! 

In this article, we'll cover the 7 most common mistakes made in home-selling. Let's jump right in!

1. Going Solo

Selling  your  home  without a real estate agent can cripple your efforts.  A  real  estate  agent  can give you advice on how to sell your   home,   and   for  how much.  According  to  the  National Association  of  Realtors,  the typical For Sale By Owner (FSBO) home sold for $217,900, versus the $295,000 that you would've gotten  with  an  agent.  If  you  decide  to  go  solo, chances are, you're missing out on some good money!

2. Not Looking At The Costs

"It is never okay to forget about the expenses that your house might have before the sale," says Jefferson Gregory, a business writer at UK Writings. In fact, there are a lot of costs to think about, if you plan on selling your home.

Such costs include:

  • Commissions to cover a listing agent and a buyer's agent 

  • Closing costs are expenses that are over and above the price of your property

  • Staging costs (i.e. home location, home size, the number of rooms, etc.)

  • Home inspection repairs that you should tell buyers UPFRONT

  • Seller concessions (i.e. discounts), where home buyers may negotiate either for a lower price, or if they ask you (the seller) to pitch in 

  • The cost of your next home

  • Moving expenses

3. Improperly Pricing The Home

Keep   in  mind  that  there  is  Fair Market Value (FMV),  which is how  a  home  is  valued  when  both  the buyer and seller know about the property, and they're not pressured to buy or sell. So, if   you are " the seller" incorrectly   prices  your  home,  then  your buyer  will  be  pressured.  You can even risk placing your home on    the    market   for   a   longer   period   than   you   might have anticipated.

Your  best  bet  is  to  hit  the sweet spot "Don't price too little, and don't price too much. And, if the buyer wants to counteroffer, then hear them out.

4. Selling While Still In Mortgage Debt

Owing  on  your  mortgage  is one thing; but if you're trying to sell your home, there might be a solution for that. You can use part of your sale proceeds to pay off the rest of your mortgage. 

Though,  having  an  underwater mortgage  is  different.  If  your  home  purchase  loan  has  a  higher  principal than the FMV of the home,  then  that  means  that  the  borrower can't refinance or sell the home, unless they decide to pay the mortgage in full. When you sell the home, your sale won't cover what you still owe in the mortgage. So, wait until you pay off all your mortgage to sell.

5. Not Mentioning Any Repairs

Buyers  don't  want  to  end  up  with a home that is riddled with  household  issues  (i.e. a  roof leak,  pest  infestations, etc.). So, be prepared to have a home inspection to ensure the buyers that your home is safe and fit to be in the home market.

6. Focusing On The Highest Offer

While the highest offer might be tempting to accept, not hearing other offers can be detrimental to your cause. Therefore, you need contingencies, which are conditions that must be met before the sale can close. 

And, this protects the buyer's interests (i.e. inspection, financing, etc.). For example, if a buyer is willing to overlook some of the repairs needed for the home and pay more, then listen to them.

7. Getting Your Home Market-Ready

Finally, it's imperative that you take pride in making your home market-ready. When selling your home, you should show it off to prospective buyers. That means:

  • Decluttering

  • Cleaning

  • Decorating

Moving.com suggests other market-ready tactics such as:

  • Rearranging furniture

  • Depersonalizing

  • Painting walls with neutral colors

  • Repairing imperfections

Conclusion

While there are many more home-selling mistakes to look out for, these 7 are the most important. Home-selling won't be easy at first, but with the right know-how, and avoiding the discussed 7 mistakes, you'll be prepared, and sell your home like a pro.

What to Read Next

The Listing Appointment Playbook

The Listing Appointment Playbook

When it comes to winning listing appointments, are you dancing in the end zone or fumbling the ball? A winning team starts with a great game plan, and so do successful agents.  Download The Listing Appointment Playbook for your all-in-one guide to score more seller clients and streamline your listing appointment process.
Download

Information Required

Thanks for your interest in our awesome content!
Just fill out your information below to access this page.

I am a(n)*