The Top 10 Seller Mistakes

To get the most money out of the sale of your home, it pays to do everything right.  Shockingly, sellers make up to THREE costly mistakes each sale.  Here is a list of the ten most common (and avoidable) seller mistakes.  Learn to identify an eliminate all of these, and you can potentially save yourself a lot of money (and sanity) in the sale of your home.

1. Choosing the wrong agent.

Don't make selling a home more difficult by choosing the wrong agent. You want an agent who works for you, listens your needs and goals, and is committed to achieving them. It's important to choose an agent with a solid understanding of the market, a track record of negotiating the most optimal terms for their clients, and provides hands on step-by-step guidance throughout the home selling process. An agent with the right experience to anticipate potential issues before they occur and a track record of getting in front of them before they create any complications for their clients. Your agent will be in close contact with you throughout the process so it's important to choose someone who is both highly competent AND enjoyable to work with.

2. Mis-pricing your home.

The price you want for your home and what the market will pay can be two very different things.  The “fair market value” refers to how a home is valued when both the buyer and the seller are knowledgeable about the property and neither is under any pressure to buy or sell.  As the seller, you need to price your home right in the sweet spot;  not too high and not too low – you guessed it, just right.  Underprice your home and you risk leaving money on the table, overprice your home and it can sit on the market for a longer period of time and eventually net you less money.

You may have a general idea of how much your home could be worth based on comparable sales (or “comps”) - homes with similar sizes and features that have sold near you. However, no two comps are created equal so you need to take that analysis a step further.  It’s helpful to run the comps through a valuation model to compare individual features for a broad list of homes – that way you can validate your prospective home price based on extensive market data. You can contact me for a free home valuation at any time; there is no charge, and no commitment. This can give you a good point of reference for how much your home might be worth.

3. Ignoring major repairs and/or making costly renovations.

A long list of maintenance issues can turn buyers off and potentially decrease the value of your home (experience shows that for every $100 in repairs your home needs, a buyer will deduct $300-$500 from their offer).  A buyer’s home inspection will reveal items that are broken, in poor condition, or can affect the safety, structure, or functionality of the home.  Thoroughly inspect your home and consider prioritizing repairs on the most glaring issues.

Many sellers also consider making renovations or improvements to increase their home’s value.  Renovations can be costly, and you won’t always recover the cost in the purchase price.  Furthermore, some buyers prefer to make their own renovations to personalize the space. Be sure to carefully consider any renovations if your goal is to add to the home’s value.

4. Failing to adequately prepare the house to sell.

Clutter eats equity and kills deals.  One of the least expensive improvements you can make to your home is to declutter and create a sense of spaciousness throughout. It costs you noting to get rid of all that ‘stuff,’ yet reaps big rewards. Thoroughly clean and prepare your home before you put it on the market if you want top dollar in the shortest amount of time.

And don’t forget about curb appeal – a polished home exterior creates an inviting experience for showings and can win home shoppers over before they even step inside.  Buyers often refuse to go into a house that appears in disrepair and may be more skeptical about its overall condition when they’re considering an offer.  Do what you can to grab their interest from the curb if you want top dollar for your home.

8. Only considering the highest offer.

The highest offer, while exciting, isn’t always the best offer given your goals and the specifics of your situation. It’s common for many sales to have contingencies - conditions that must be satisfied for the sale to close. It’s important to be aware of these types of contingencies because they can impact the timeline of the sale, the certainty of the sale, and the complexity. For example, you may receive a really high offer that is contingent on the buyer selling their existing house. You’d have to consider how the added timing and uncertainty compares to a slightly lower offer without that contingency. Your agent can provide more insight into how to choose the best offer.

9. Not being realistic with home inspection negotiations.

The majority of home buyers are going to elect to have a home inspection – issues will be found, and the buyer will likely want the home inspection findings to be addressed.  There are some repairs - structural defects, building code violations, or safety issues - that will be required by lenders before they will fund a buyer's home purchase.  However, there are a lot of repairs that aren’t required and that leaves a whole gray area open to negotiation.  You’ll want to be reasonable—after all, you’ve already put a lot of time into the selling process, and it’s likely in your best interest to accommodate some repairs rather than allowing the buyer to walk away. Depending on the magnitude of the requested repair, it’s not likely to go away. Now that it’s been uncovered, you’d also need to disclose the issue to the next buyer.

9. Not knowing all your legal rights and obligations.

Real estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You should consult a knowledgeable professional who fully understands the real estate transaction. If you work with a good agent you will be educated along the way and can avoid costly mistakes in the process.

Final Thoughts . . .

At the end of the day, you want the home selling process to be as smooth and painless as possible. Thinking about all the things that can go wrong might be overwhelming, but remember that knowledge is power. Now that you’re aware of the most common (and costly) mistakes when selling a home – you can avoid them, and potentially save yourself a large chunk of change.