Home SELLER Mistakes
(Top 10)
Mistake #1: Not Expecting Home-Selling Costs: Don’t let these home-selling costs catch you by surprise:
Agent commissions: As the seller you pay the agent commission for both your agent and the agent representing the buyer. The total commission is typically 5% to 6% of the final sales price.
Closing costs: A seller’s share of the closing costs can really add-up. These costs could include sales tax, a title transfer fee, attorney fees and a fee for whoever organizes the final transaction on closing day—like a title company or a lawyer. Ask your agent to estimate the closing costs so you will be prepared.
Staging costs: The cost to stage a home varies widely based on factors like where you live, the size of your home, how many rooms you want to stage, whether or not you’ll be renting decor, and different pay structures including an initial consultation and monthly fee. On average, home staging costs around $525 to $2,000.
Home repairs: It might be wise to pay a few hundred bucks for a home inspection before you even list your house. Depending on the seriousness of the issues that come up, repairing your house could cost thousands or even hundreds of thousands of dollars!
Mistake #2: Selling When You’re Upside-Down on Your Mortgage. If you still owe a mortgage on your home, use a portion of your sale proceeds to pay off the remaining balance of your loan. But what if your property went down in value? What if you owe more than what it’s worth? This is referred to as being upside-down, underwater or having negative equity on your home. If you sell it, you still won't make enough money to pay off your mortgage. Breaking even on your home sale is at least better, but it's still not great.
If you're in either situation, don't sell unless you need to avoid bankruptcy or foreclosure. There are other ways to handle an underwater mortgage. But usually, the best option is to stay in your home and work hard to build more equity before you sell.
Mistake #3: Selling It by Yourself: Not using a real estate agent, or going the “For Sale by Owner” (FSBO) route, is a massive home-selling mistake. Do you save yourself from paying a commission to an agent? Sure. But you could miss the chance to make a whole lot more money.
Mistake #4: Pricing It Wrong: Pricing a home can be tricky. If you price it too low, you could miss out on thousands of dollars in profit. Price it too high and you could turn away serious buyers or run the risk of wasting weeks or months before you have to reduce the price to get an offer. Don’t trust the internet. Ask a real estate agent for a comparative market analysis that will show you how much homes like yours are selling for in your area.
Mistake #5: Hiding Major Repairs: Think your buyer won’t notice that roof leak? How about the bug problem? Guess again. If your buyers are smart, they’ll likely get a home inspection after you accept their offer. And if a major problem with your house comes up during the inspection, it could delay your closing date or even terminate the deal altogether. Consider paying for a home inspection before you list your home to make sure it’s in great shape for your buyer.
Mistake #6: Skimping on Staging: Staging a home may not sound like a big deal, but skimping on this step is a huge home-selling mistake. Most sellers’ agents report that staging a home has a dramatic impact on selling it faster.
Mistake #7: Not Clearing the Clutter: It’s hard to show off the beauty of your home if it’s full of clutter. Piles of paperwork, scattered toys and general clutter make your home look undesirable to buyers. And don’t forget pets. If you want to attract buyers, you’ve got to pretend no pets live there. Eliminate odors, clean up stains, and touch-up the paint. You’re marketing a house. It’s time to treat your home like it’s the buyer’s home.
Mistake #8 : Forgetting About Lighting: Bright rooms make your home look bigger, so throw back the curtains and shine a light on every part of the house. Start by filling lamps and overhead fixtures with bright bulbs.
Mistake #9: Using Listing Photos That Look Bad: More than half of all buyers who purchased a home last year found theirs online. So if your online photos look like you took them with a camera phone in five minutes, you’ll lose buyer interest fast. Work with an experienced pro who knows how to make your home shine on camera. You’d be amazed at the difference the correct lighting and a wide-angle lens can make.
Mistake #10: Not Letting Your Agent Conduct Showings: Open house showings are an invaluable tool for letting potential buyers “feel” the house rather than just looking at photos. Often the buyer has to see the property two or three times before realizing that it is the home they really want.