Finding a buyer for your home is emotionally challenging and time-consuming. That will be true if you’ve never done this before. Other homeowners even consider it an invasion of their privacy because strangers will be poking around the property, opening cabinets and closets, or entering the house. Many will criticize the place or offer less money than your property’s overall value.
Your lack of experience and the transaction’s complex nature makes it more challenging to do things perfectly. Many tend to make mistakes. But you can avoid many of these mistakes by educating yourself. Below is a guide to help you sell your property while getting the highest possible price within a reasonable timeframe. It’ll also lower the chances of losing your mind.
Underestimating the Overall Costs of Selling
Today, the cost of selling your home is higher than the usual five to six percent. That’s because you’ll also have to include the repairs, closing costs, and other concessions to the buyer. That makes the total close reach up to ten percent of the asking price. For example, you already moved into your new home before selling the old one.
You might have to pay for both mortgages or rent a temporary place. Or for storage, taxes, HOA dues, utilities, and other carrying costs. You can use tools to estimate net sales — the amount you’ll be getting after deducting the selling costs. Understanding this before listing your property will help you choose the best selling techniques. It’ll also make it easier to determine how much you’ll be paying for your new property.
Only Thinking of Accepting the Highest Offer
Many find it exciting to accept the highest offer, but that’s not always the wisest option, considering your needs. Before, listed real estate properties will require contingencies — the conditions you’ll have to comply with to close the sale. You might have an existing contingency that protects the buyer’s interests, like an inspection or financing contingency. Be more attentive to these contingencies.
That’s because they can affect the sale’s overall complexity, certainty, and timeline. For example, you might receive a high offer contingent on the buyer selling their property. It’s best to consider how the added uncertainty and timeline differ from a lower offer without that contingency.
You might also encounter a buyer who wants to have more flexibility on the repairs and someone offering a higher price but asking for repair credits.
Not Preparing or Staging the House for Sale
One of the biggest challenges of selling your property is staging and preparing it for potential buyers. In fact, your home will have more appeal if it’s well-decorated, less cluttered, and cleaner. Most claim that clutter will only make your home look smaller, making it more challenging for potential buyers to envision themselves in your house.
In fact, staged homes sell 20% more and 88% faster than unstaged properties.
It’ll also be best to improve your home’s curb appeal. Your home’s exterior is the first thing potential buyers will see and sets the stage for the interiors. If your home appears disorganized, potential buyers might have doubts about its overall condition when they’re considering an offer from you.
Only Organizing or Hosting Limited Showings
Once you’ve listed your property, you’ll have to work with your agent for showings. It can mean vacating the house for several hours or a private showing or vacating your house on the weekend for an open house. You should accommodate as many buyers as possible, even at the worst timing.
If your property isn’t easy to show, it’ll also be more challenging to sell it. Interruptions and added weekend planning might be inconvenient, but your goal is to get a good return on your investment that will support your new home.
Not Checking Your Future Financial Situation
Most sellers ignore their financial situations before selling their homes, resulting in painful surprises. Before deciding to sell your property, it’ll be helpful to evaluate your debt, income, and upcoming expenses during your move. It’ll also be best to consult a mortgage advisor or bank to ask about the mortgage on your current home.
Don’t forget to check the target sale price and the total cost of selling your home to get a clearer image of how much you’ll earn from the sale. If you’re selling your old home to get a new one, you might want to browse the internet for free tools to calculate your monthly payments and identify how much you can afford.
Your monthly expenses will also determine how much you can afford. That can include your credit card debt, tuition payments, student loans, car payments, or more. You might also want to check your savings account to prepare for emergencies and unexpected repairs that can arise. Lastly, it’ll also be helpful to think about how the purchase will fit with your other long-term financial goals like retirement savings.
Finding a buyer for your home is a life-changing decision, but it shouldn’t involve hassle, frustration, or aggression. Don’t make these common mistakes if you want to sell your home quicker and easier than expected.