If you’re deciding to sell your home, this new chapter of your life can be incredibly exciting. However, you want the process to be as smooth as possible and make the most money possible. Here we’ll take the guesswork out of selling your property and share the 5 most common mistakes many homeowners make!
1. Being Unaware of the Total Cost to Sell Your Home
When selling your home, there may be some hidden costs that you’re not aware of. Agent commissions, staging costs, closing costs, and potential repairs are all things that can quickly add up. When deciding to sell your home, it would be beneficial to get a Seller’s Net Sheet from your agent. This will give you an idea of how much money you will actually be making from the sale once all of these other costs are factored in. It may also benefit you to consider the opportunity cost of selling. Could you potentially make more waiting when the market is better? Will you miss out on any potential opportunities if you sell right now? These are all things to consider.
2. Not conducting a Pre-listing Home Inspection
Before selling your home, a pre-listing inspection is crucial. While you may think your home is in great condition, there are many issues that can be brought to light during an inspection that you didn’t even know existed. Things like mold, an unstable foundation, or pest concerns are all potential problems you may be completely unaware of. It’s better to find out beforehand. This way you can make the necessary repairs before going under contract with a Buyer. This helps you save money and avoid any re-negotiations that could arise have a negative home inspection report.
3. Repairing or Upgrading the Wrong Things
It may be necessary to make certain repairs or upgrades to increase the resale value of your home before you put it on the market. However, it’s important to know what buyers look for and what will increase property value. Not all upgrades were created equal. You want avoid spending unnecessary money in areas that really won’t add value to your home.
Things you should upgrade or repair for a high return on investment include:
- Kitchen upgrades such as countertops, appliances, and/or fixtures can add a lot of value to your home if done properly.
- Simple updates with neutral paint, blinds, or light fixtures are all great value choices.
- Garage doors are probably not something you immediately think of as adding value; however, it has a very high return on investment.
- Paint the exterior of home and focus on curb appeal. You get once chance to make a great first impression. Why not start with what buyers see first.
Things you should skip as they won’t add much value to your home:
- Updates that don’t fit with the neighborhood. If it’s not a luxury neighborhood, luxury upgrades won’t increase the value of your home.
- Making upgrades to everything also won’t increase the value of your home. It will just cost you a lot of money.
- While you may think adding a pool is a great upgrade to your home, not everyone wants the hassle of owning a pool, especially those with small children.
- Layout changes to your home are often expensive and completely subjective to the homeowner, so it’s best to leave additions or demolitions to the new buyers.
4. Trying to Sell While a Tenant Occupies the Rental
It’s understandable you don’t want to miss out on the rental income while you’re trying to sell a property, but there are many reasons why it’s better to not have a tenant occupying your property when you’re trying to sell it. Unless you’re lucky enough to have a tenant with impeccable taste that’s also immaculate, it’s very difficult to properly stage a home while someone’s living there. If there is too much clutter, the potential buyers will find it difficult to get to envision their belonging in the space. It can also be incredibly difficult coordinating convenient showing times with both the buyers and the tenant. Because of California law tenants must receive 24 hours’ notice to enter or show the property.
5. Pricing Your Home too High
Of course you want to get as much as you can for your property, but a big mistake asking too much for your property. Potential home buyers will be comparing your home to others in the neighborhood and if the price isn’t comparable your property won’t get the property showings it demands. It will only help your neighbors sell theirs first. Buyers love new listings. As a result, the first couple of weeks your home is on the market is the most crucial time to get the proper exposure. If your home is priced too high from the start, buyers are going to simply pass on it. A house on the market for an extended period of time will end up costing you money in the long run.
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