Selling your home in 2018? Save thousands by avoiding these 6 costly mistakes homeowners commonly make when selling their home.
#1: Going It Alone - For Sale By Owner
Selling your own home between your normal nine to five job is just plain crazy talk. Most For-Sale-By-Owners (FSBO’s) start by trying to save a few bucks on commissions, or maybe had a bad experience with an agent in the past. Selling real estate can’t be that hard, right? According to Arizona Regional Multiple Listing Services (MLS), in 2017, FSBO’s sold for 15% less on average than their MLS counterparts! But at least they didn’t have to pay a 6% commission right? Over 90% of FSBO’s end up selling with an agent. Skip the headaches and call in a professional.
#2: Home Is Priced Too High To Start
Start high to see if you can get it. Besides, you can always drop the price if you need to right? If you start low, you’re only going to get low ball. Not so fast. Pricing your home correctly is THE MOST CRITICAL step in the home selling process. Stats show if you start to high, you’ll run up days on market and actually sell for less. Lean on a Real Estate professional who knows your neighborhood. Your agent will be able to provide a detailed comparative market analysis and comprehensive pricing strategy. Listen to the experts on this one.
#3: Dreaded “Deferred Maintenance”
The preverbal honey-do list finally can’t be put off any longer! Instead of making ALL the repairs, you decide to offer your eventual buyer a credit, or just drop the price a bit. But put your buyer's hat on for just a moment. How much would you discount your price for time, labor, and materials needed to make the home livable to your standards? A new can of paint from Home Depot cost $50 or so, yet buyers will knock off a thousand per room! If you can’t knock out the honey-do list on your own, hire a handyman. You will be glad you did!
#4: Hiring a Part-Time Agent
Should you hire your niece who studied so hard to pass her real estate exam last month, or some stranger? Don’t compromise when it comes to choosing the right agent. This is one of the largest transactions of your life. Interview at least 2 to 3 agents that are familiar with your neighborhood. A full-time real estate professional knows how to handle a multiple-offer scenario and will negotiate tirelessly on your behalf to get you top dollar. Real estate transactions have lots of moving pieces. Don't chance it with a part time agent. This single step takes a couple hours of your time and can save you thousands!
#5: Refusing To Declutter
That DLP TV was top of the line in 1998 when you bought it, but it doesn’t belong anywhere near a living room these days! Everyone has their own style, and yours probably isn’t theirs. Let buyers envision making your house their home. Don’t just cram all your stuff in the garage. Rent a storage unit for a couple of months to help declutter. Slimming down might feel good!
#6: Check Your Ego At The Door
Whether you're in the process of negotiating the initial purchase contract or the buyer repair requests, check your ego at the door. Don't let something as little as a $500 home warranty or a $650 water heater derail the sale of your $350,000 home. Selling your home is a business transaction, which leaves little room for emotion. If your buyer is going to miss the close of escrow date by a few days, be flexible. Don't get greedy and demand a $1,500 credit and blow the whole deal. Yes, that has happened in real life.
Need help navigating these steps? We're here to help! Feel free to reach out if you have any questions about selling your home.