Costly Home Selling Mistakes (and How to Avoid Them)
on Thursday, January 29th, 2015 at 10:14am.
So you've decided to sell your home. Whether you've loved your home for years or looking to move up, your house will always need some sprucing up before it hits the market. Get your home sold more quickly, and for more money by avoiding these common home selling mistakes.
Not doing a home inspection before putting your home up for sale
Avoid having to negotiate with the buyer on repairs by doing the major repairs on your own time and budget before listing your home. It is also beneficial to have the inspection report available for potential buyers.
Withholding information from buyers
Always disclose all the problems or issues you know about. For example, if a faucet leaks, or you know the basement or home floods in a heavy rain this must be disclosed to any potential buyers. If not, the buyers may back out and/or legal action can be taken against the seller.
Putting your home on the market before it is ready
Paint, make minor repairs, and professionally clean before listing the home. The first few weeks on the market are critical because this is when the most activity usually occurs.
Forget to maximize the curb appeal
First impressions are very important. Your home can look great on the inside, but if the outside of the home is lacking in appeal buyers may not even come in! Cut the grass, trim the bushes, paint the front door etc.
Over pricing your home
A REALTOR can give an accurate estimate of what the home should sell for by doing a market analysis. If the home is priced too high it will sit on the market, and multiple price drops may be needed to sell it.
Being unprepared for what comes after the sale
Sometimes closing the transaction takes a lot longer than anticipated, or happens faster than planned. Have a plan for all scenarios. Also be aware that loan payoffs and closing costs are based on the time factor.
Pet odor and kids clutter
Buyers want to visualize themselves and their families living in the space. Pet odor and clutter is a turn off. Keep the home smelling neutral and clean. Take the kids with you, and lock up or take the pets with you when the home is being viewed.
Renovations that don't yield a great return
Don't waste your time and money on renovations that do not add a lot of value to a home. According to Style at Home Magazine, the renovations yielding the top returns when it comes time to sell are kitchen upgrades (75% to 100% of costs recovered), bathroom upgrades (75% to 100% of costs recovered), interior painting (50% to 100% of costs recovered), and roof replacement (50% to 80% of costs recovered). Home office remodel, sun room addition, bathroom addition, backup power generation and master suite additions don't generally pay for themselves.