THESE MISTAKES COULD BE COSTING YOU MONEY!
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  • Underestimating the costs of selling

  • Setting an unrealistic price

  • Only considering the highest offer

  • Ignoring major repairs and making costly renovations

  • Not preparing your home for sale

  • Limit showings

  • Not considering your broader financial situation

TOP 7 MISTAKES

Underestimating the costs of selling

The total cost to sell a home can amount to much more than the 5-6% in agent commissions most people expect to pay. When you account for closing costs, repairs, and other concessions to the buyer, your net proceeds can vary considerably. We will provide you with an accurate estimated closing cost statement. Knowing this information before listing can help you choose the best way to sell and give you a better idea of how much you’ll have to spend on your next house.

Setting an unrealistic price

The price you want and what the market will pay can be two different numbers. You might hear the term Fair Market Value, which refers to how a home is valued when both the buyer and seller are reasonably knowledgeable about the property and neither is under any pressure to buy or sell.

For the seller, it’s finding the sweet spot between asking too much or too little. If your property is not priced right, you risk leaving money on the table or having your home sit on the market for a longer period of time, which can have consequences. We use a robust valuation model, as well as our personal knowledge of competing inventory to guide you towards the most advantageous list price.

Only considering the highest

The highest offer, while exciting, isn’t always the best offer given your needs. It’s common in many traditional sales to have contingencies. These are conditions that must be satisfied for the sale to close. You may have contingencies that protect the buyer’s interests like a financing contingency or an inspection contingency. 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.

Ignoring major repairs and making costly renovations

A long list of maintenance issues can turn buyers off and potentially decrease the value of your home. More importantly, buyers expect the condition of your home to directly reflect the list price.

Consider prioritizing the most glaring issues, particularly those that are likely to turn up in the buyers home inspection. 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 your home’s value.

Not preparing your home for sale

One of the challenges of listing your home on the market is showing your home to prospective buyers. Generally speaking, the cleaner, less cluttered, and more well-decorated your home is, the more appeal it can have. Moving.com suggests that clutter can make your home appear smaller and make it more difficult for buyers to picture themselves living in your home. In fact, staged homes sell 88% faster and for 20% more than those that aren’t staged, according to Realtor.com. Don’t forget about curb appeal. As Moving.com puts it, “Your home’s exterior is like the cover of a book, setting the stage for what’s inside.” If a home is disorganized or appears in disrepair, buyers may be more skeptical about its condition when they’re considering an offer.

Limiting showings

Once you’ve put your home on the market, you will have to cooperate with buyers and agents who desire to show it. Your typical showing window is between 2 to 4 hours advanced notice. The goal is to accommodate as many buyers as possible, even when their timing is inconvenient. Sellers should expect scampering out at dinnertime, vacating for several hours or most of the day—for a weekend open house. If your house isn’t easy to show, it won’t be easy to sell either.

Not considering your broader financial situation

Many sellers don’t have a clear picture of their financial situation before selling. This can lead to painful surprises. Before you make the decision to sell, it may be helpful to assess your income, debt, and any upcoming expenses during your move. Consider contacting your bank or a mortgage advisor to understand exactly how much you owe on your current home. This, along with your target sale price, and the total cost of selling a home, will give you an educated idea of how much money you will walk away with after the sale. If you’re selling your current home in order to buy a new one, you’ll want to calculate how much you can afford. It is always advised that you consult with a lender prior to any home purchase. What you can afford often depends on your monthly expenses, such as car payments, student loans and credit card debt. We have several trusted financial partners who can assist you with this process. You may also want to consider how much cash you have in savings to cover any unexpected repairs or emergencies that could arise. Finally, it’s important to think about how a home purchase fits with your other long-term financial goals like saving for retirement.

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!

Your Dynamic Duo

Elaine Drake

760-716-2827

Amber Lindsey

760-846-4580

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