The idea of buying or selling home though sounds lucrative and not-so-tough task but, in reality it is not quite so. You need to be very prudent, systematic and calculative while selling your home so you do not sell it at loss. Let’s talk about some of the mistakes that are normally made by the home owners and get some valuable lessons out of it.
As per real-estate site, Zillow, in 2011 almost 1/3 of the houses sold in loss. You may argue that this has largely to do with the still bottoming market but, in reality there were number of reasons behind it. Selling home at a profit is definitely achievable if you avoid these mistakes:
- Do not get emotionally involved with the house if you have decided to sell it.
- Avoid acting unrealistic by deciding not to sell your house even if you have to.
- Do not underestimate your own capabilities of conducting a sale. You may save the money on the commission of agents.
- Many opinions from all your relatives may confuse you. Stick to your decision and your immediate family’s opinion.
- Opt for a professional real estate agent if you are not sure of the process.
- Do not make any pre-conceived assumptions about hiring an agent.
- Hire an agent with a good track record and experience.
- Do not hire the agent without researching on the working methods, commissions charged and other clauses (if any).
- Make sure that the agent knows about the pricing and competitive selling methods.
- It is important to have a sales strategy clearly chalked out beforehand.
- Avoid setting an unrealistic price that no one would consider a good deal.
- Do not expect to get the exact price you demanded on the house. Set the price after considering the negotiation deductions.
- During winter season most people are busy with celebrations and want to stay back home so it is not an ideal time for sale.
- When putting up ads for your home on the internet make sure that you add photos that are clear, bright and appealing.
- Cut short the ads or photos that make you house look dim and uninviting.
- Have the basic homeowners insurance done in order to avoid any pre sale accidents on the premises.
- Be truthful about the significant problems of the house or neighborhood.
- Provide possible fixes and solutions of the problems instead of just avoiding them.
- Keep your house neat and clean before every single visit by potential buyers.
- Always be prepared for visits from potential buyers even during weekends.
- Fix the existing minor issues like broken door knobs, rust metal paints on the gates, tarnished wall colors etc.
- Get rid of any bad odors inside or outside the house premises.
- Avoid signing a contract with an unqualified buyer who fails to prove his buying capacity.
- Do not have any pre determined thoughts or restrictions about the buyer. Market it to anyone interested.
- Use every kind of strategies that may seem to work.
- Maintain your house well so you do not have to waste time on repairs.
- Try to leave the house in the same condition as it is now with you.
- Do not fixate on the outdated prices. Research for the value of your house in the present time.
- Compare the deals on similar homes before deciding on the house value.
- Do not set a poor price on your property. It may get reflected as a bad property that needs to be done away with.
- Consider your surroundings before determining the price. A house with a good surrounding can be kept high priced.
- Ask your agents to give an idea of the selling price of the neighbourhood houses.
- Try to know the exact need of the customer before marketing your house features.
- Do not hire the agent who asks for high prices but does not show any productivity. Instead of limiting your home’s listing to just local websites and agents consider posting on social media networks or local chat groups.
- Do not rule out relatives or friends as potential buyers. You may get a connection from them.
- If you are hiring an agent make sure the agent is well equipped with top online home sites and also knows the promotion process via social network as well.
- Try your luck with ads at online home shopping sites too. Many buyers use such sites to look for homes.
- Use updated technology to take clear photos of your home.
- Remember to post your ads to make it user friendly for the mobile apps users as well.
- Do not follow the buyers around when showing your home. This can make them nervous or uncomfortable.
- Avoid asking your agent to be present on all of your home tours as the agents may prefer to have some private time with the buyer.
- Try to give the best impression of your house. Be it laws or the place you keep your dustbin or unwanted furniture make sure to keep it clean.
- Pre pack or get rid of your personal stuffs in order to minimize the personal effects.
- Get recommendations and quotes from multiple agents on the price of your home.
- Do not mislead your potential customers on what does not exist. You may find yourself in difficult situation later.
- Keep the promises you made to the buyer while selling your house.
- Do not add shiny photos of homes on your home ad which does not in any way resemble your home.
- It would be a good idea to ask for the remedies if the agent cannot live up to the end of the bargain.
- Have the marketing process clearly chalked out before selling as agents and sellers make a lot of mistakes while marketing the house.
- Do not agree on a deal if you are not satisfied with the negotiation process or the price.
- Avoid jumping into the selling mode one fine day. Be prepared mentally and take the necessary steps to make it presentable.
There are a lot of mistakes that home owners and agents make while marketing a house as a result of which they find the process difficult. However if you can plan it out well you can comfortably sell off your home at a good enough bargain.
Thanks for publishing my article..
Christopher @ This that and the MBA says
Great list and very important to not become emotionally attached to home….as this may hinder you selling the house for a decent price…
The College Investor says
Great list! One of the problems I encountered when I have to move from one place to another is the attachment I have for the place. It is often not easy to part with something that had been part of so many important moments of our lives, especially if it is your first home. Being attached to a house will make it difficult for you to sell it even when you really need the money.
Interesting read! Home sellers will find this article very useful and get the right value for their homes.
Brett @ wstreetstocks says
Great article! New home buyers will find this article to be very useful as well as those who are trying to sell their home.
Anne Bourne @ StagingWorks says
Avik – I agree with starting the list with “not getting emotional when you have made the choice to sell your house”. Emotions feature heavily into both the sell side and buy side of the transaction. I suggest that you consider adding a #52, which is to have your property professionally staged, to showcase home to its full potential. This often creates an emotional connection with potential buyers, and results in a more favorable outcome for the seller.
Sissy Lappin says
Regarding #22 – as a long time real estate agent myself, I can’t emphasize how important this is! If there’s an odor about a house, it will turn buyers off. One of the most obvious is pet odors. If you are a pet owner, you probably don’t even smell your pet, but believe me, people looking at your home can.
If you have pets, you should try to arrange to have them outside the house during showings. Also make sure litter boxes and the carpets are cleaned regularly. Scented candles can help too. And this is really important – clean up poop in the yard! If a prospective buyer steps in poop that’s an offer that won’t be coming!
That said you should try to sell your home on your own before using an agent. The 6% commission is just too high a price to pay. There are so many ways to sell on your own, that you don’t have to be so dependent on agents and the MLS.