5 Mistakes to Avoid When Selling Your Home

Selling a property is one of the biggest financial sales most people will experience in their lives. A house is a big asset for many people, so it’s important to avoid common mistakes when selling your home.

For many people, especially first-time sellers, it can be tough to sell their home objectively when they’re emotionally attached to it. When we established our homebuying company, most sellers found it overwhelming to part ways with their homes.

In this article, we’ll explain the common mistakes to avoid when selling your home (applicable to homeowners, landlords, and property investors).

1. Selling a House On Your Own (Without a Real Estate Agent)

“You work on commission? Big mistake. BIG BIG BIG mistake.” This dialogue from Pretty Woman always makes me chuckle because I relate it to buying and selling properties.

Planning to sell your house on your own, especially when it’s your first time, can cause trouble. And if you’re trying to sell the house on Craigslist rather than trusted sites (Zillow or Opendoor), it’s even worse.

While hiring an agent can raise your expenses and closing costs, you get what you pay for. A good property company can set your house at a fair and competitive price. They know the market value of your property and ensure you position yourself in a good place on the market from the get-go.

One of our friends, who was a first-time seller, had a difficult time since he chose to bypass hiring a professional. When he came to me for advice, I suggested, “There’s always a first time for everything. Property transactions are not a DIY thing. There’s always something that might go wrong, and you need professional backing.”

2. Not Keeping Emotions Aside

Understandably, many people have trouble handling their emotions during the selling process. We can understand that your home is more than four walls and a roof to you. It’s normal to have emotions attached to your home, especially when it’s your first home. However, this can make it more difficult to sell a property fast.

I strongly advise you to “Think of yourself as a salesperson rather than an owner.”

Look at everything you do, from completing renovations to rejecting offers, from a financial perspective. This can help you distance yourself from the emotional aspects of selling the property.

3. Setting an Unrealistic Asking Price

Setting an unreasonable price for your house is another mistake to avoid when selling your home. It can cost you time and make buyers think there’s an issue with your property, should you have to drop the price later. Houses priced incorrectly will stay on the market for longer, which is another bad sign for potential buyers. It can put many people off from even booking a showing!

In fact, 75% of real estate agents say setting an unrealistic price is the top mistake homeowners make. The National Association of Realtors suggests that when properties are priced right, the average time a property stays on the market is around two weeks.

Setting up your home price on the low side brings in more offers, which automatically bids the price up to the actual market value.

4. Expecting the Asking Price

Negotiation from the buyer is natural. As a homeowner, you have to play along. Most homeowners list their houses at a reasonable price, but choose to leave room for negotiations. Buyers need to feel like they are getting a home at a good market value.

Ending up with more or less than your asking price depends on whether you’re in a buyer’s market or a seller’s market. It also depends on how well your home is managed. But, generally, you should expect an offer to be made that’s just below the asking price.

5. Hiding Major Issues

Do you regularly inspect your house? Another mistake to avoid when selling your home is to repair major issues or be upfront about them.

Trying to hide issues is never successful, as the problems will arise later during the homebuyer’s inspection. It can also lead to you losing the property you’re buying, as your house will need to go back on the market.

If your house has major issues, you have a few options:

• Fix the problem before listing your property.
• Price the house below the market value.
• Offer the buyer a credit to fix the problem.

Summary

Avoiding the above mistakes when selling your home can make your work (and life!) easier. Prevention is always better than treatment. This enables you to avoid problems and sell your house faster.