SELLING your home may come with added costs, confusion, and headaches.
And while housing markets do fluctuate, there are ways to ensure you’ll get close to your asking price.
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On the flip side, there are tons of mistakes sellers can and typically do make.
Small things like not properly showing the home can greatly affect the sale.
This includes sellers refusing to leave during the showing, or watching in the background as buyers tour the home.
However, this as well as many others can be avoided.
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In the latest installment of our new series, Let's Get Real, The U.S. Sun spoke with Rachel Stults, managing editor at Realtor.com, to skip the mistakes.
1. OVERPRICE
Many sellers are attached to their homes which is a common reason folks tack on tons of money to the sale price.
Not only is this bad for buyers, but it’s also terrible for sellers as the longer the home sits on the market, the more value it loses.
Plus, if the home has been taken off the market after sitting for too long when you decide to put it back on the market, it will likely be at a lower price.
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This is why overpricing your home and refusing to compromise with potential buyers is a simple mistake but important to avoid.
While it’s wise to consider the pros and cons of each offer, saying no to too many can be a a bad idea.
Instead, it’s smart to price your home correctly the first time to make sure you have a large pool of buyers.
At times, this may lead to multiple offers that could end up in a bidding war.
If this happens, buyers will either pay the full asking price or present an offer over the asking price.
2. SELLING COSTS
"There are other costs that crop up before and after you sign on the dotted line," Rachel told The U.S. Sun.
Selling costs can be anything from distributing, marketing, real estate commission, or anything else associated with selling.
Another major cost, usually the most expensive, is closing costs.
These typically include real estate commissions, taxes, and fees and are taken from the sale proceeds of the home at closing.
"You’ll need to be prepared for closing costs, which can run from two percent to five percent of the home’s value," Rachel said.
She also mentioned the expenses you may have after closing the deal like any Homeowners Association (HOA) or condo fees you might have to pay monthly.
HOA is an organization in planned communities or condominium buildings that makes and enforces rules for the properties and residents.
Just note that real estate agents can be a great resource when it comes to bringing these extra costs down as they may be able to negotiate a bit better.
3. REAL ESTATE AGENTS
Not hiring a real estate agent is arguably the most important mistake sellers make.
While this can be a costly expense, it’s usually worth it as the process can be long and complicated.
"We’re in the age of DIY everything, but it’s unwise to take this tack when it comes to house hunting and real estate," Rachel told The U.S. Sun.
A good agent is trained in the market and should be able to determine the right price to list your home.
In addition to the market, agents have more knowledge of the overall process.
This includes things like disclosures, showing and staging the home, marketing strategies, and access to multiple listing service (MLS).
MLS is a database that collects the listings in a given area for other real estate professionals or online platforms like Realtor.com.
Plus, real estate has its own language as it's filled with acronyms and other jargon that most agents speak fluently.
She also noted that agents will take care of any tiresome and confusing forms, reports, disclosures, and other technical documents.
Just make sure you do your research before committing to a specific agent as not all are worth the price.
"Sure, you can technically do this alone but when we’re talking about the biggest financial decision of your life, why would you," Rachel said.
4. REPAIRS AND RENOVATION
Making repairs or updates can be a cost many buyers try to avoid which is why it may be worth making any fixes before going to market.
While some projects may be more costly than others, prioritizing the ones that will add the highest value to your listing price is a good place to start.
If you're having trouble figuring out which projects are a good investment, Realtor.com has aRemodel calculatorto check which improvements have the biggest increase in value.
Additionally, it's best not to hide or skimp on the projects you choose to fix.
Tiny fixes that you may deem trivial like leaks, will most likely be caught in an inspection so it's best not to hide any needed repairs.
5. EMOTIONS
Selling your home may be an emotional process as you've likely experienced life in your house.
You may have watched your kids take their first steps, had holidays, celebrated accomplishments with family and friends.
Additionally, many upgrades or updates you've done to the home may mean a lot to you as you've created your home to your liking.
However, it's important to remember that just because your home worked for you, does not mean it will be appreciated by the buyer.
This means that during showings or the negotiation process, if the buyer wants changes, it is not personal.
In the same way that you've experienced life and created a place that worked for you, the buyer wants to do the same.
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