Selling your house can be both exciting and stressful, especially if it’s your first time. Regardless of why you decided to sell your home, there are a number of pitfalls you can easily fall into, making your home selling experience less than ideal. Luckily, we’ve put together a list of the most common home selling mistakes people make so you can sell your home knowing you have your bases covered.
Underestimating the cost of selling your house
While you should ultimately profit from the sale of your home, many home sellers forget about the costs associated with selling a house. For starters, you should expect to use five to six percent of the total sale price of your home to cover the commissions of both the seller and buyer agents. For example, if you sell your home for $300,000 you could wind up paying upwards of $18,000 in commission.
Furthermore, this hefty cost doesn't include possible concessions homebuyers might want you to make during the negotiation phase, such as making repairs suggested by a home inspector.
Not budgeting for your move
When you consider the moving process, you have two options: hiring a moving company or borrow your buddy’s truck and doing it yourself.
By hiring a moving company, rather than doing it yourself, you’re getting someone who will pack, move, and then unpack your belongings. This means that a full-service mover can be well worth the investment when you’re preoccupied with all of the other tasks associated with selling your home. Not to mention,when you hire movers your belongings are insured so you’re covered if anything breaks.
Selling a house you owe more on than what it’s worth
If you still have a remaining balance on your mortgage, you’ll most likely use a portion of the sale proceeds of your home to pay off the existing mortgage. Make sure you don’t owe more on your mortgage than what your house is actually worth or you won’t make enough money on the sale to pay off your mortgage. The best option is almost always to wait on selling your home so that it can build more equity. This way you can sell your home and buy a new one without having two mortgages at the same time.
Pricing your home incorrectly
If you price your home too high, your home may fall into seller’s limbo, sitting on the market for what feels like an eternity. On the other hand, if you price too low then you will likely sell your home quickly but you risk missing out on a significant amount of money.
The first step to understanding how much your home is worth is utilizing an online calculator. Afterward, meet with your real estate agent to discuss a good pricing strategy for your home. They will look at other comparable properties in your neighborhood that sold recently as well as bring keen insights into what the housing market is currently doing. Together, you’ll determine a good starting price as well as a pricing strategy that will incentivise buyers if your house begins to sit on the market for too long.
Skipping a pre-listing home inspection
Selling a house is stressful enough, even when everything goes right. But if a homebuyer hires an inspector who catches an issue like mold, pests, or a cracked foundation, then your stress levels will multiply as you risk losing a potential sale entirely.
Given the affordability of home inspections, there’s not much reason to avoid them. Getting a pre-listing home inspection will put your mind at ease as you’ll either know that your home is in sound condition or you’ll be able to tackle problems before homebuyers have the chance to bring them up during the negotiation phase. If an issue does arise, you can either fix it or you can let buyers know and then make a concession during the negotiation phase by reducing the price of your home accordingly.
Not refinishing hardwood floors or cleaning your carpet
If you’re reading this at home, look down. How do your floors look? Even if they don’t look terrible, there’s a pretty good chance they’re starting to show their age. Since potential buyers are going to be inspecting every aspect of your home, you should start thinking of refinishing your hardwood floors and cleaning your carpet.
The best time to have your carpet cleaned or hardwood floors refinished is right before you stage your home. Since you’ll already be moving most (or all) of your furniture to either a new home or a storage unit, this is a great time to get your floors done and make them a selling point to potential homebuyers.
Not staging your home for a quick sale
The main point of staging your home is to allow potential homebuyers the chance to picture themselves living in your space. They get to see a home with furniture and art that’s arranged in a way that highlights key features of your home, rather than an empty house that echoes every sound. Staging your home pays off too as 21 percent of agents told the National Association of Realtors that staging a home increased its’ sale price by as much as 10 percent, making it a worthwhile investment.
Forgoing professional real estate photos
With the advent of cameras on smartphones, everyone likes to think of themselves as a photographer these days. Even though that picture you took of your dinner last week looked like it could be featured in advertisements, you’re still probably not ready to take your own real estate photos. A real estate photographer will make sure that your home looks great when you list it because not only do they have the equipment, they understand the angles that best sell a home.
If you have a large home, a stunning view you want to show off, or a large amount of land, you may also want to consider having aerial photos taken of your home. The views that drones are able to capture are impressive and can help show off your home in a way that will make sure it stands out from other houses in your area that are on the market. Even better, drone technology makes this