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!
"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
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.
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.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.
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.
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.