Are you considering selling your DeLand area home? Even though it is a seller’s market at the moment, some mistakes can make it more difficult to sell your home. Here are eight mistakes many homeowners make when selling their homes.
Mistake #1 – Underestimating Selling Costs
Yes, in a hot market, you can expect to make some profit on your home. But do not forget that there are costs associated with selling your home to think about that typically include:
- Real estate agent commissions for both the listing and buyer agent, which total to about 6% of your home’s selling price.
- Your share of your home’s closing costs that usually run between 1 to 3% of the sale’s price.
- The cost to prepare your home for sale, such as making repairs, painting, or staging costs.
- Preparing to purchase your new home.
Last but not least, you will have to factor in your moving expenses whether you are moving across town or across the country. If you aren’t moving into your new home right away after selling your home, you will need to factor in storage fees and temporary housing costs.
Mistake #2 – Not Having a Clear Picture of Your Financial Situation
Home prices are at an all-time high. But if you are underwater on your mortgage, meaning you owe more on your home than you can sell it for, you won’t make enough to pay off your mortgage. If you have other financial issues, like a poor credit score, high credit card debt, or delinquencies, it may be difficult for you to obtain a mortgage for a new home.
You should have a clear picture of your financial situation before listing your home for sale. It may not be a good time to sell your home if you lack the equity to pay off your mortgage. Sometimes it is better to wait until your financial situation improves.
Mistake #3 – Setting the Price Too High or Too Low
In a hungry market with little housing inventory, it can be tempting to ask for a much higher price for your home. The problem with this is that you can price yourself out of the market if your home does not fit in with the home values in your neighborhood. You may also find that even if you do have a sales contract, once your home is appraised, it may not appraise for the sales price. Some buyers may agree to pay the difference out-of-pocket, but not all will. You may have to lower your price, or the buyer may choose to walk away from the deal.
Setting the price for your home at too low a price can backfire on you, too. You could potentially get more for your house and set off a bidding war, but buyers may not be interested in your home because they may think something is wrong with it.
A real estate agent is always your best bet for determining the asking price for your home. They will run a comparative market analysis of what homes similar to yours in the area are selling for to help you decide on an asking price.
Mistake #4 – Only Considering Highest Bids, Not Contingencies
Getting a substantial offer above the asking price for your home is exciting, but it might not be the best offer. A mistake that many sellers make when reviewing offers is to focus on the highest offer. However, what is more important is to focus on the contingencies that accompany an offer.
For example, you might receive a high offer, but the offer is contingent on the buyer selling their existing home. If the buyer cannot sell their home and backs out of the contract, you have now lost that time waiting and have to relist your home. In some cases, it may be better to accept a lower offer from a buyer who is pre-approved for a mortgage and doesn’t require a contingency that they sell their home before closing on your home.
Mistake #5 – Not Having Your Home Prepared for Sale
Before listing your home, you should have your home ready to be shown to prospective buyers. This means:
- Clearing away the clutter
- Giving your home a deep cleaning
- Putting away personal items
- Painting rooms in neutral colors, if needed
- Adding a few decorative touches
While the appearance of the interior of your home is important, don’t make the mistake of forgetting about its curb appeal. If your landscape is a mess or the exterior of your home needs sprucing up, buyers may question the condition of your home and pass it by.
Mistake #6 – Ignoring Needed Maintenance and Repairs
Very few buyers are willing to pay a premium price for your home if it needs major repairs. While it may be possible to hide some problems while your home is being shown, they won’t remain hidden for long. An old, leaky roof, poorly maintained HVAC system, or peeling pool plaster can be deal killers once a home inspection is done.
It is better to focus on problems that are likely to show up on your home inspection and get them repaired before listing your home. If you don’t, you may lose your buyer or have to resort to lowering your sales price. Consider having your own home inspection done to give you an idea of potential problems that could cause your sale to fall through. Your real estate agent can also suggest what repairs or improvements could help increase your home’s value.
Mistake #7 – Letting Your Emotions Get in the Way
It is only natural to develop an emotional attachment to your home after living in it for a long time. But it is important to not let your emotions get in the way of selling your home. While you might not like the idea of strangers walking through your home, allow your real estate agent to handle this for you and stay away while this is happening. This will remove you from hearing comments from potential buyers about what they do not like about your home or would change about it.
Do not take it personally if a buyer makes a low offer on your home. Selling your home is a business transaction. And just like you want to pay the lowest price possible for your next home, every deal needs a starting point for negotiation. You can make a counteroffer through your agent, and if the buyer really wants to buy your home, they will typically improve their offer. You, as the seller, are in control. You can always choose to refuse an offer. But remember, you should give some leeway and be willing to negotiate with buyers.
Mistake #8 – Not Hiring a Real Estate Agent
One of the biggest mistakes that many home sellers make is trying to sell their homes on their own. Often this is done to try to save money on commissions; however, it can actually be more expensive and more time-consuming. Hiring a real estate agent gives you an advocate who is looking out for your best interests when selling your home. It also protects you from making mistakes that could prevent you from selling your home in a timely manner.
If you are ready to sell your DeLand area home, we are ready to help. Contact our sales team at Palmetto Realty to get started.