7 Costly Mistakes Home Sellers Make
No matter what’s going on in the housing market, selling a home can be a challenge. Some sellers have an emotional attachment to a treasured family residence. Others want to skip ahead to the fun of decorating and settling in a new place. Almost all sellers want to make the most money possible. Whatever your circumstances, the road to a successful sale can be full of obstacles, from issues with showings and negotiations to home inspection surprises. But many of these complications are avoidable when you have a skilled and knowledgeable real estate agent by your side. Here are seven common mistakes that many home sellers make. These can cause anxiety and cost you both time and money. At Sea & Ski, we can help you avoid these missteps and set you up for a successful and low stress selling experience instead.
MISTAKE # 1: Setting an Unrealistic Price
Many sellers think that pricing their home high and waiting for the “right buyer” to come along will get them the best sale price. The truth is, overpriced homes often sit on the market with little activity, which can be the kiss of death in real estate and result in an inevitable price drop.
1. On the other hand, if you price your home at (or sometimes slightly below) market value, your home can be among the nicest that buyers have seen within their budget. This can increase your chances of receiving multiple offers.
2. To help you set a realistic price from the start, we will do a comparative market analysis, or CMA. This key piece of research will help us determine an ideal listing price, based on the amount that similar properties have recently sold for in your area. It’s also where the importance of working with a Sea & Ski agent, who knows the local market inside and out, comes in. Without this information, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). We can help you find that sweet spot that will draw in buyers and maximize your sale price.
MISTAKE #2: Trying to Time the Market
You’ve probably heard the old saying: “Buy low and sell high.” When it comes to real estate, that’s easier said than do
Delaying your home sale until prices are at their peak may sound like a great idea. But sellers should keep these factors in mind:
- Predicting the market with certainty is nearly impossible.
- If you wait to buy your next home, its price could increase, as well. This may erode any additional proceeds from your sale.
- If mortgage rates are rising, your pool of potential buyers could shrink, and you will have to pay more to finance your next purchase.
Instead of trying to time the market, choose your ideal sales timeline, instead. This may be based on factors like your personal financial situation, shifting family dynamics, or the seasonal patterns in your particular area. We can help you figure out the best time to sell given your individual circumstances.
Many sellers hope that buyers won’t notice their leaky faucet or broken shutters during a home showing. But minor issues like these can leave buyers worrying about more serious and costly problems lurking out of sight. If you do receive an offer, there’s a good chance that the buyer will hire a professional home inspector, who will flag any defects in their report. Neglecting to address a major issue could lead buyers to ask for costly repairs, money back, or worse yet, walk away from the purchase altogether. To avoid that risk, it’s important to make necessary renovations before your home hits the market. We can help you decide which repairs and updates are worth your time and investment. In some cases, we may recommend a professional pre-listing inspection. The extra time and attention spent up front can help you avoid potential surprises down the road and identify any major structural, system, or cosmetic faults that could impact a future sale.
MISTAKE #4: Neglecting to Stage Your Home
Staging is the act of preparing your home for potential buyers. The goal is to “set the stage” for buyers to help them see themselves living in your home. Some sellers opt to skip this step, but that mistake can cost them time and money in the long run. A 2021 survey by the Real Estate Staging Association found that, on average, staged homes sold nine days faster and for $40,000 over list price.
Indoors, staging could include everything from redecorating, painting, or rearranging your furniture pieces to removing personal items, decluttering, and deep cleaning. Outdoors, you might focus on power washing, planting flowers, or hanging a wreath on the front door.
You may not need to do all of these tasks, but almost every home can benefit from some form of staging. Before your home hits the market, we can refer you to a professional stager or offer our insights and suggestions if you prefer the do-it-yourself route.
When reviewing offers, most sellers focus on one thing: the offer price. And while dollar value is certainly important, a high-priced offer is worthless if the deal never reaches the closing table. That’s why it’s important to consider other factors in addition to the offer price, such as:
- Financing and buyer qualifications
- Deposit size
- Contract conditions
- Closing date
Depending on your circumstances, some of these factors may or may not be important to you. For example, if you’re still shopping for your next home, you might place a high premium on an offer that allows for a flexible closing date. Buyers and their agents are focused on crafting a deal that works well for them. We can help you assess your needs and goals to select an offer that works best for you.
MISTAKE #6: Acting on Emotion Instead of Reason
It’s only natural to grow emotionally attached to your home. That’s why so many sellers end up feeling hurt or offended at some point during the selling process. Low offers can feel like insults. Repair requests can feel like judgments. And whatever you do, don’t listen in on showings through your security monitoring system. Chances are, some buyers won’t like your decor choices, either! Remember, they’re trying to see your home as their next home.
Another huge mistake is to ruin a great selling opportunity because you refuse to counter a low offer or negotiate minor repairs. Instead, try to keep a cool head and be willing to adjust reasonably to make the sale. We can help you weigh your decisions and provide rational advice with your best interests in mind.
There’s a good reason 90% of homeowners choose to sell with the help of a real estate agent. Homes listed by an agent sold for 22% more than the average for-sale-by-owner home, according to a recent US-based study. Selling a home on your own may seem like an easy way to save money. But in reality, there is a steep learning curve. And a listing agent can:
- Skip past time-consuming problems
- Use market knowledge to get the best price
- Access contacts and networks to speed up the selling process
If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission. Sea & Ski can navigate the ins and outs of the housing market for you and make your selling process as stress-free as possible. You may even end up with an offer for your home that’s better than you expected.
BYPASS THE PITFALLS WITH A KNOWLEDGEABLE GUIDE
Your home selling journey doesn’t have to be hard. When you hire Sea & Ski to list your home, we’ll develop a customized sales plan to help you get top dollar for your home without any undue risk, stress, or aggravation. If you’re thinking of buying or selling a home, reach out today to schedule a free consultation and home value assessment.
- Realtor.ca –
- Royal Bank of Canada –
- Canadian Association of Home & Property Inspectors –
- Real Estate Staging Association –
- National Association of Realtors –