If you are selling your home for the first time, you may feel overwhelmed at the thought of going through the entire process. There is so much paperwork, scheduling and planning to do in order to sell your home and move into your new home. Here are five home selling mistakes you should avoid.
- Underestimating How Much Selling Will Cost You
When you account for the closing costs, repairs, concessions to the buyer, and the commission paid to your real estate agent, you can expect to pay 10% of the sales price in order to close the home. Another example is if you choose to move into your new home before your old home sells, you will be paying two mortgages and other costs such as utilities and insurance doubly.
- Not Using a Real Estate Agent
Real estate agents know the market, they can negotiate on your behalf and they can help market your home effectively so it receives the proper amount of exposure in order to sell quickly. They are familiar with all of the current paperwork and forms needed to sell your home and they can vet potential buyers to ensure you don’t end up selling your home to a faulty buyer.
- Setting an Unrealistic Sales Price
The price you may want for the home and what buyers are willing to pay for the home may be vastly different. This is where having a seasoned real estate agent comes in handy because they can help you determine a fair price for your home utilizing comparable neighborhood sales and market data. If you price your home too high, you will deter buyers and your home will sit on the market, making it even harder to sell.
- Making Costly Renovations & Ignoring Important Repairs
If your home has a long list of maintenance problems, this will turn buyers off and decrease the value of your home. Buyers expect the condition of your home to match its description. Prioritize and fix the most detrimental issues, especially those that will be exposed in a home inspection.
Another thing sellers sometimes do is put a lot of money into a costly renovation of their home only to find out that they are not receiving the return on this investment reflected in the sales price of the home. Making your home look more presentable and adding in a few new touches is fine, but consider the cost and the return if you do high-end upgrades and renovations.
- Limiting Home Showings
One of the easiest mistakes to avoid is not limiting showings. When your home is on the market and you want to sell quickly, you need to cooperate when buyers want to tour your home. By limiting showings, you give the impression you are not eager to sell and could turn off potential buyers and even lose out on the buyer who wants to purchase your home.