Selling a home is one of the biggest financial decisions consumers make. Yet, statistics show sellers make up to THREE expensive missteps in every sale! That costs them thousands of dollars. Here’s our top 5 list of seller mistakes and how to fix them!
1. Not hiring a professional
The numbers speak for themselves. Home sellers who try to “do it themselves” to save money on real estate commission often end up on the losing end of the deal. In fact, the National Association of Realtors® Statistics shows that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket.
So how much more do homes with a real estate agent sell for? According to the National Association of Realtor®’s 2016 Profile of Home Buyers and Sellers, the average For Sale By Owner FSBO sales price was $185,000, while the average price for a home represented by an agent was $245,000.
When it’s a seller’s market, homeowners think it’s easy to sell a home. After all, they sell in days. Right? Some do. Some don’t.
There’s a lot that goes into selling a home in days – a properly priced home, good photos, good description, good marketing, and staging.
Homeowners who chose, For Sale By Owner (FSBO), don’t have all those tools at their discretion. Realtors® are pricing and marketing experts. Two things you need to sell a home.
Professional home stagers make rooms look bigger, brighter, and better. That’s why The Sally Moore Real Estate Team, offers free home staging for all clients.
Professionally staged homes sell faster too. Time is money. Buyers pay attention to how long your home sits on the market. The longer it takes to sell, the higher chance you’ll get a lower selling price.
You simply never get a second chance to make a first impression. Listen to your agent and follow their advice for decluttering, cleaning, staging and otherwise prepping your home for sale. And make sure they hire a professional photographer! With more than 90% of buyers starting their home searches online, you can’t afford to have crummy photos representing your home.
These are just some of the problems with selling your own home rather than hiring a professional.
2. Not pricing it right
Another major mistake—overpricing your home. It will cost you more money in the long run.
Sellers often want to “price it high” so they have room to negotiate. That’s counterintuitive. You may end up keeping buyers from presenting an offer at all and then chasing the market with price reductions to lure in buyers.
Plus, you can get more than asking price if you receive multiple offers. You’re more likely to get more than one offer on a competitively priced home.
Also, potential buyers take notice if you price your home too high and quickly drop it. It sets the tone for the negotiation. Plus, the longer a home sits on the market, the higher chance you’ll get less money for it.
In the end, an overpriced listing will sell for less than a listing priced right from the beginning.
It’s hard to put a dollar figure on a home after you put a lot of sweat equity into it. That’s how a real estate agent helps. They’ll take the emotion and finances out of the equation, and help you find a competitive listing price. Hire a STRONG agent who can provide you with a detailed Comparative Market Analysis, so you get your home priced right, and get the most for your money.
Remember the TV game show – “The Price Is Right”? Well, the price must be right in real estate too. Even in a real estate market where homes sell quickly!
3. Failing to disclose
When it comes to selling your home, our mantra is DISCLOSE, DISCLOSE, DISCLOSE! Being upfront about everything you know about your property— warts and all—is always the smartest route to go.
Buyers will conduct inspections, and they will discover any hidden issues with the home. Even a hint of dishonesty can spoil a sale on the spot.
4. Letting your ego get in the way
It’s tough not to get emotional when selling your home. People are naturally attached to their properties because it’s filled with memories. Lean on your agent to help you stay focused on the sale.
This is a business transaction, and there’s no room for personal posturing or emotions during negotiations. Let your agent keep the focus on making the sale a win-win deal, so you get to the closing table with the most money in your pocket.
Since the market is so competitive, some sellers think they don’t have to negotiate. It’s easy to think that way when you hear the real estate headlines. However, don’t fall into that trap.
5. Failing to negotiate
Negotiation is key in all real estate transactions, even in a seller’s market.
If you’re unwilling to negotiate, you may lose a sale. While some buyers struggle to find the home they want in a seller’s market, not every buyer is desperate to find a home. As the seller, you don’t know the buyer’s timeline or if they’re making their first or tenth offer.
Keep an open mind, and forget the headlines you hear. Stay present in your financial situation and real estate transaction.
When a sale falls through, other home buyers take notice and ask more questions making it harder to get a second contract on a home.
Be willing to negotiate throughout the process – from the purchase price to the inspection.
Inspections frustrate sellers, especially when the inspector finds pages of problems. Be willing to negotiate and make some repairs. Your real estate agent can guide you through repairs you should make, and others that you can avoid making.
While sellers have the upper hand right now, don’t let that power drive your decisions. Maintain a smart home sale strategy, and you’ll get the best purchase price for your home in the Kansas City area and beyond.
Seller mistakes cost you money
Steering clear of these 5 mistakes can help you avoid a lot of pain in the home selling process. Don’t leave money on the table. Enter the market with your best foot forward, and with the best representation, you can find.
Cutting corners will always cost you in the long run. Follow these simple rules of the road to get the most for your money while selling your home. The end result will be a faster sale with less stress and more profit for you to take with you as you invest in your future in your new home!