While many people consider the current real estate market shift as a shock, the reality is that the rate at which home sales prices were rising was inevitably unsustainable. That, coupled with the challenge of selling a home, the home-selling process can be overwhelming. Some homeowners will face a difficult situation when having to say goodbye to their family home and its memories. Others can’t wait to skip ahead and settle into their next home. The goal for almost all sellers is to get the most money possible when they sell their homes.
Whatever your circumstances, the road to the closing table can be riddled with obstacles from issues with showings and negotiations to inspection surprises. Some sellers aren’t sure how much money and time to invest in preparing their home to put on the market and can take too much time in guessing what is right. I have had some owners take on significant remodeling projects before meeting with me to discuss selling their homes only to realize they spent too much time and money they won’t get back. Many of these complications are avoidable when you have an experienced, highly skilled, and knowledgeable real estate agent by your side.
Let me share the 7 most common mistakes that many home sellers are making right now. These can cause stress, anxiety, and time, and negatively impact your financial proceeds. Fortunately, I can help you avoid these missteps and set you up for a successful and low-stress selling experience.
MISTAKE #1: Setting an Unrealistic Price
Many sellers believe that pricing their homes high and waiting for the “right buyers” to come along will net them the most money. First, they don’t realize that most home buyers want to avoid complicated negotiations and will prefer to “pause” in submitting offers on an overpriced home and are willing to wait for the price to drop while they look at other options. This causes overpriced homes to sit on the market with little activity, which can be the kiss of death in real estate and result in an inevitable price drop.
Alternatively, if you price your home at (or sometimes slightly below) market value, it can be among the nicest that buyers see within their budgets. With rising interest rates, buyers have become more intensely budget-focused. This can increase your likelihood of receiving multiple offers.
To help you set a realistic price from the start, we will prepare a comparative market analysis or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that similar properties have recently sold for in your area. We also will share other competitor data that can also impact selling your homes, such as new home options and builder incentives.
Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). We can help you find that sweet spot that will draw in buyers without undercutting your profits.
MISTAKE #2: Trying to Time the Market
You’ve probably heard the old saying, “Buy low and sell high.” But when it comes to real estate, that’s easier said than done. I always remind a prospective client that you can’t be in a buyer’s and seller’s market at the same time in the same area. The goal should be an overall win in selling and buying.
Delaying your home sale until prices have hit their peak may sound like a great idea. But sellers should consider these factors:
- Predicting the market with certainty is nearly impossible.
- If you wait to buy your next home, its price could increase as well. This may erode any additional proceeds from your sale.
- If mortgage rates are rising, your pool of potential buyers does shrink and you would have to pay more to finance your next purchase.
Instead of trying to time the market, choose your ideal sales timeline. This may be based on factors like your personal financial situation, shifting family dynamics, or the seasonal patterns in your neighborhood. My goal is to help you determine the best time to sell given your individual circumstances.
MISTAKE #3: Failing to Address Needed Repairs
Many sellers hope that buyers won’t notice their leaky faucets or broken shutters during home showings. But minor issues like these can leave buyers worrying about more serious and costly problems lurking out of sight.
Once you have reached an agreement with a buyer and have an executed contract, it’s highly likely that the buyer will hire a professional home inspector, who will flag any defects in their report. Buyers feeling as if they are already paying a high price in today’s market will lead them to ask for costly repairs, closing cost credits, or worse yet, walk away from the purchase altogether.
To avoid these types of disruptions, it’s important to make necessary renovations before your home hits the market. We can help you decide which repairs and updates are worth your time and investment. In some cases, we may recommend a professional pre-listing inspection.
This extra time and attention can help you avoid potential surprises down the road and identify any major structural, system, or cosmetic faults that could impact a future sale.
MISTAKE #4: Neglecting to Stage Your Home
Staging is the act of preparing your home for potential buyers. The goal is to “set the stage” to help buyers envision themselves living in your home. Some sellers opt to skip this step, but that mistake can cost them time and money in the long run. A 2021 survey by the Real Estate Staging Association found that, on average, staged homes sold nine days faster and for $40,000 over the list price.
Indoors, staging could include everything from redecorating, painting, or rearranging your furniture pieces to removing personal items, decluttering, and deep cleaning. Outdoors, you might focus on power washing, planting flowers, or hanging a wreath on the front door.
You may not need to do all these tasks, but almost every home can benefit from some form of staging. Before your home hits the market, I will hire a professional home stager for a complimentary consultation or offer insights and suggestions if you prefer the do-it-yourself route.
MISTAKE #5: Evaluating Offers on Price Alone
Selling a home also involves risk. When reviewing offers, most sellers focus on one thing: the offer price. While dollar value is certainly important, a high-priced offer is worthless if the deal never reaches the closing table. That’s why it’s important to consider other factors in addition to the offer price, such as:
- Financing and buyer qualifications
- Deposit size
- Contract contingencies
- Closing date
- Leaseback options
Depending on your circumstances, some of these factors may or may not be important to you. For example, if you’re still shopping for your next home, you might place a high premium on an offer that allows for a flexible closing date or leaseback option.
Buyers and their agents are focused on crafting deals that work well for them. We can help you assess your needs and goals to select an offer that works best for you.
MISTAKE #6: Acting on Emotion Instead of Reason
It can be difficult to think of your home as a house as most sellers are emotionally attached to their home. During the selling process, many sellers end up feeling hurt or offended at some point. Buyers don’t realize that low offers can feel like insults to the home seller. Repair requests can feel like judgments. And whatever you don’t listen in on showings through your security monitoring system. Chances are, some buyers won’t like your decor choices, either!
However, it’s a huge mistake to ruin a great selling opportunity because you refuse to counter a low offer or negotiate minor repairs. Instead, try to keep a cool head and be willing to adjust reasonably to make the sale. Lean on me to help you weigh your decisions and provide rational advice with your best interests in mind.
MISTAKE #7: Not Hiring an Agent
There’s a good reason 90% of homeowners choose to sell with the help of a real estate agent. Homes listed by agents sold for 22% more than the average for-sale-by-owner home, according to a recent study by the National Association of Realtors®.
Selling a home on your own may seem like an easy way to save money. But in reality, there is a steep learning curve. And a listing agent can:
- Skip past time-consuming problems
- Use market knowledge to get the best price
- Access contacts and networks to speed up the selling process
If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.
We can navigate the ins and outs of the housing market for you and make your selling process as stress-free as possible. You are likely to end up with an offer for your home that’s better than you expected.
BYPASS THE PITFALLS WITH A KNOWLEDGEABLE GUIDE
Your home selling journey doesn’t have to be difficult. When you hire me as your listing agent, I will develop a customized sales plan to help you get top dollar for your home without any undue risk, stress, or aggravation. If you’re thinking of buying or selling a home, reach out today to schedule a free consultation and home value assessment.