As someone selling a home, there are many ways to lose money and add stress. I don’t want either of those for you!
So here are the 6 costly mistakes I’ve seen too many home sellers make. Hopefully, you’ll be able to avoid these and make the process of selling your home as easy and lucrative as possible.
Mistake 1: Pricing Your Home Too High
Even when the real estate market is screaming white-hot, there is still a threshold for how much a buyer is willing to pay for your home. Homebuyers are savvy and have access to so many tools that help them understand the value of properties. They literally have boots on the ground viewing all the homes comparable to yours. If yours is listed considerably higher than others with similar locations, amenities, and upgrades, why would they buy the most expensive one?
Unfortunately, by listing too high, you leave yourself vulnerable to quickly being the home that all the buyers ask, “What’s wrong with it? Why hasn’t it sold?”
I think we can agree that’s NOT what we want them saying about the house you’re selling.
The likely consequences of listing too high are:
- Taking longer to sell the home and becoming “stale.”
- Making less money than you would have by listing at a more reasonable price in the first place.
Buyers are apt to offer less (sometimes way less) than the asking price if your house has been on the market for a while. In a hot market, this could mean as short as two weeks.
Mistake 2: Not Getting the Property Show Ready
You don’t necessarily need to do a massive remodel and have the home staged, and you do need to clean and declutter the house. No, this isn’t most people’s idea of fun. Yes, it would be best if you did this to move anyway.
The goal of preparing your home for sale is to make sure the pictures and marketing are attractive, which brings the most home buyers to your house. And then, when they are in the home, you want them to feel as if it could be their home.
When buyers can envision themselves living in the home and think the price is fair, you will get the most offers and the highest price.
Most homebuyers don’t have the vision, and they can’t see beyond your clutter and won’t even schedule a showing if they don’t like the photos.
So pretty, please, do yourself a favor and spend a couple of weekends properly prepping your house for sale. Trust me, it’ll get you more money, AND you won’t have to rush to go through your belongings when it’s time for you to move.
Mistake 3: Hiring the Cheapest Realtor
Like almost everything else in this world, you get what you pay for!
I might be biased (or just experienced), but there is definitely a difference in quality between real estate agents.
Truthfully, how much you pay a real estate agent isn’t always the difference in quality. But I have noticed that real estate agents and companies that are so quick to give away their money generally care less about your money. You are hiring someone to negotiate on your behalf. You might want to hire someone whose value proposition includes being an excellent negotiator…which includes not being so quick to give away their own money.
I’ve also noticed that discount companies and real estate agents often have the worst marketing. Could it be that they have less to spend? We all know that lousy marketing equates to fewer showings, which means fewer offers and less money in your pocket.
My suggestion, interview multiple real estate agents to find someone who will market your home strategically and has a passion for getting you the best price. This will make you more money than hiring the cheapest option.
Mistake 4: Limiting Showings
I get it; it’s a hassle to have people walk through your home. Unfortunately, that’s all part of the process. I’ve noticed over the years that homes with unusual or restrictive showing instructions are often the same ones that take forever to sell.
It’s in your best interest to allow showings during all reasonable hours of the day (9 am-7 pm is pretty typical).
If you work from home, have children at home, or have pets that will need to be moved for showings, try to figure out logistics before your house goes on the market.
If many showings are predicted for the first weekend, it might be easiest to go on a short trip or stay with family for a few days. Or at least plan some longer day outings so that you don’t have to keep coming and going.
Mistake 5: Not Reducing Your Price Quick Enough
This kind of goes back to Mistake #1, but it is a separate issue. Sometimes even after being strategic about pricing a home for sale, they just don’t sell in as timely a fashion as expected.
Every market is different, and average days on the market can shift quickly. Still, your real estate agent should set the expectation upfront on what the strategy will be if no offers or low showings happen in the first couple of weekends.
The consequence of waiting too long to change your price is that the house becomes “stale,” meaning buyers will overlook the home simply because they can’t figure out why it is still on the market. Homebuyers that view the home may write an offer, but it will likely be under the asking price.
This brings me to the final mistake…
Mistake 6: Not Trusting Your Real Estate Agent’s Advice
This might be a bold statement, but I think you picked the wrong one if you don’t trust your real estate agent. So maybe the mistake is not interviewing a few realtors before choosing who to work with.
Regardless, you and your real estate agent have the same goal…sell the home with as little stress and as much profit as possible.
When they offer advice, it comes from a place of experience and the desire to do the best job possible for you.
Believe me when I say it’s not easy to suggest lowering the price, kicking your dog Jack out of the house for every showing, or asking you to put away your most prized giant elephant statue. But those tough conversations have to be done (with tact, hopefully!) to accomplish your goals.
You want an agent who is willing to have the tough conversations. And if they are bringing it up, it serves your best interest to listen to what they are saying.
That’s a Wrap!
Hopefully, you now have the knowledge not to make the costly mistakes I’ve seen many home sellers make. I’d love the opportunity to offer you suggestions on making your home sale a breeze! This includes creating a customized marketing strategy and doing an in-depth analysis to guide you toward an optimal list price. Give me a call, and we can get started.