In today’s blog, I’m going to talk about the top 7 biggest mistakes that homeowners make when they’re trying to sell their home.
Some of the biggest mistakes homeowners can make when selling their home happen when they don’t work with an experienced agent. And we don’t want you to make those same mistakes.
Mistake #1
Selling The House On Your Own, OR With A Discount Brokerage In an attempt to keep costs low, many first-time sellers are inclined to try to sell the house on their own or work with a discount broker. The issue with discount brokers is they won’t make enough money to execute an effective marketing campaign to sell the house at the maximum price!
Now, if you try to sell on your own, you will save money on the selling agent’s fees. But You will make a lot less money on the sale of your home
And the numbers prove that this is not a good financial decision.
According to a study by the National Association of Realtors® (NAR) In 2020 homes sold by the owner, without an agent, sold for an average of $217,900.
On the flip side, homes sold by an agent sold for an average of $295,000! And even when you pay the full 7/3% fee to get it sold for a higher price, the average homeowner keeps $282,000! That’s 23% more money than the homeowner who tried selling it on their own!
Not to mention there are a lot of steps that go into selling a home And it’s unlikely that you have time to manage all of those steps on your own. Especially when you have a career and family to manage as well.
This is why 89% of all home sellers choose to work with an agent in the end… But 11% don’t And they end up losing money And doing a lot of work. So unless you like leaving money on the table and working another job… Don’t do it.
Mistake #2
Investing In The Wrong Renovations It’s worth noting that not every single renovation that can be done, should be done. To ensure you’re not investing in unnecessary home projects, talk to a realtor, like me, first.
Because we know what buyers value…we’re talking to them every day!
We can tell you things like which kitchen styles and finishes are in demand. What floors people want What colors make people smile And so much more.
And listen, I get it, it’s your house. So, on the one hand, you need to do you. BUT, there are a variety of options when it comes to increasing the value of your home And I’m sure you can find some that fit your style. There are also certain additions, changes, and renovations that can actually decrease the value of your home. But your agent will know all about that. This is a simple step that can save loads of time and money. So please reach out to me if you have any questions. I’m happy to help.
Mistake #3
Neglecting Repairs and Maintenance Neglecting repairs and maintenance on the property before it goes to market, is a common mistake among first-time sellers.
This is a huge oversight because it means buyers will see these damages as inconveniences.
Trust me. I know. I work with buyers. They are far more likely to perceive minor maintenance as large ones And overestimate how much it will cost to repair them.
This will result in the buyer taking your property off of their list Or they will offer you disproportionately less money for the home.
To avoid this mistake, make sure you take care of all of those little things. Things like: Small holes in the drywall Scuffs on the paint Uneven baseboards Broken light fixtures
These small damages are cheap to repair. But, if left unaddressed… These little damages could wind up costing you tens of thousands of dollars.
Mistake #4
Being Uninformed About Mortgage Penalties Before you get deep into the selling process, be sure to address your existing mortgage situation.
To do this, there are a few questions you need to ask your bank.
– How much is left on your current loan and are you able to pay it off early?
– Are there stipulations in your agreement around this?
– Are you in a good financial position for your next home purchase?
And be sure to ask that you qualify for your next mortgage on your new home!
This is one of the most important things any homeowner should keep in mind when they’re considering selling a home.
Mistake #5
Not Using Professionals Not using professional home stagers, photographers, and videographers to make your house look amazing!
These days most homebuyers turn to the internet first when looking to buy a house. According to NAR®, 81% of Older Millennials, 80% of Younger Millennials, and 78% of Generation X found their home on a mobile device in 2019.
This means the photos and videos you post of your home might be your only chance to make a good first impression.
So if you want people to be intrigued enough to come see your home in person You need to stage it properly for photos and videos.
But the work doesn’t end there. You then need to keep the home staged, clean, and photo-ready when the buyers come walking in.
Selling a home is more than just selling a building with walls and a roof It’s about selling an idea, a dream, and a lifestyle.
Make sure the rooms in your house are set up to reflect the kind of activities the room was designed for. This allows buyers to envision the kind of life they’ll be enjoying if they purchase your Property.
This also means making sure there is enough light in the home Buyers want to live in a home that is bright, open and inviting. To avoid showing buyers a dark and uninviting listing, try getting rid of any and all obstructions to natural light in front of your windows. Painting dark colored walls a bright neutral color that reflects light, and turning on the lights in all of the rooms will also help. You can even add additional lamps if needed.
I recommend using daylight balanced bulbs and using the same color temperature throughout the house. This will make the artificial light feel more like natural light. I can’t stress this enough.
Not buying a couple of lamps and light bulbs could easily mean you miss out on thousands of dollars when it comes time to close. It sounds small but this detail is super important.
Mistake #6
Being Home During A Showing. Staying at home during a showing is another one of the common mistakes first-time home sellers make. And I get it.
Letting strangers into your private home, especially while you’re not on-site certainly feels a little uncomfortable. Especially when it’s your first time.
However, NAR® cites homeowners being present during showings As the number one cause for houses staying on the market for extended periods.
Finding an agent you trust and connect with will help you feel more comfortable with leaving your house vacant for showings.
Mistake #7
Not Being Fully Transparent With Your Realtor Intentional or not, withholding important information from your realtor won’t serve you.
While you might avoid a tough conversation upfront, it can cause deals to go sideways down the road. Eventually, the truth will come out, and when that happens, future buyers will likely lower their price.
Remember, your realtor is on your side and wants your home to sell as much as you do!
The more we know, the better we can market your property and negotiate to get the best price and the best terms.
Now if you wanna know more tips about real estate feel free to contact me Danny Greene by sending an email at Danny@CalgarysAgent.com or call the number 403-605-6626!