July 11, 2017
Home Sellers, Home Selling Tips, Uncategorized
Most inexperienced home sellers make the mistake of assuming that selling a home is a piece of cake – just fix it up, place an ad and boom – buyers start bidding for the home. In truth, selling a home requires a lot of work, and things can quickly get out of hand if care isn’t taken. A lot of factors have to be taken into consideration when selling a home, and failure to do this can lead to unintended and undesirable consequences.
Here are some common costly mistakes sellers make – avoid them!
Basing the price of a property on subjective terms
Some sellers calculate the price of their home by taking into account the actual cost of the property, money spent on repairs and the Realtor’s fee. However, a buyer isn’t really interested in the cost of repairs or the Realtor’s fees – all that really matters to them is the value of the property.
Another deadly mistake sellers make is starting out at an incredibly high price. It is best to get your price set accurately in order to avoid bagging countless failed deals.
Real estate experts recommend setting the price of your home based on current values, which must take into account the pricing of similar properties on the market. Don’t fall for the temptation of setting the pricing of your home too high just because you feel like doing so or because you think you’ll gamble a bit. Your home may end up sitting idly for months or even years without any buyers showing an interest.
A home that sits for a long time on the market will make buyers wonder what is wrong with it, and they may end up staying away from the property. Setting the price of your home too high does you no favor at all, and so should be avoided.
Spending excessively on upgrades
While there is nothing wrong with spending money upgrading a home, some sellers do this for the sole reason of setting the price of their home high, which can often backfire horribly.
The most important thing to keep in mind when upgrading a home is return on investment – if the upgrade isn’t necessary, forget about it. From a return on investment point of view, it is much better to upgrade the attic insulation of your home than to tear the kitchen down and rebuild it again. At the end of the day, you’ll probably discover that the money you spent rebuilding the kitchen is gone – and gone forever.
Supplying incorrect answers on Seller Disclosure
It is easy to get the Seller’s Disclosure all wrong, and the best way to avoid this mistake is by consulting an attorney.
A lot of paperwork goes into selling a home. To avoid erring on the wrong side of the law, carefully fill out and sign all legal documents, and also ensure that only the correct answers are provided.
Seller disclosure is basically a legal document which requires home sellers to provide all knowledge they have about the home. All they are expected to do is to mark “no”, “yes” or “do not know” check boxes.
Oftentimes, home sellers check all the “no” boxes just to cut corners and avoid the delays that come with a home inspection. In the long run, they end up paying dearly for this error.
While acknowledging that a home is in good condition when you know fully well it isn’t may look tempting, it always backfires in the long run. Even if you successfully close the deal, the buyer may sue you after sensing foul play, and this will definitely cost you dearly. The best way to avoid getting into a legal mess is to be honest when providing answers to the questions in a seller’s disclosure. If there is a defect in your home, just be honest and make it known.
Working without the guidance of a real estate agent
It is quite tempting to sell a home without the guidance of a Real Estate Agent – you get to keep all the proceeds to yourself. However, working without a Real Estate Agent sets you up for big trouble because you will be making sensitive decisions, and mistakes can be far reaching.
Don’t allow the commission the Real Estate Agent charges for a completed deal deter you from hiring one. Hiring an agent saves you a lot of headache and stress. Do bear in mind that the agent will only get a commission when your home gets sold; you are not simply paying a direct fee.
Additionally, working with an agent sends a strong signal to a prospective buyer that you are a serious seller. Most buyers prefer not to deal with sellers that work without an agent as most sellers lack real estate expertise. The chances of you over pricing or under pricing your home are also very high should you refuse to work with Real Estate Agent.
Failing to take the advice of a real estate agent
The job of a Real Estate Agent is to save you a lot of stress when selling your home and also to ensure your home is optimally priced. An experienced agent has an in-depth understanding of your neighborhood and will know the exact features buyers will be looking for. However, the best they can do is to provide you with a sound advice – it is all up to you to make the final decision. If you are having a difficult time following the advice of your agent, you might have to switch to another agent.
It takes a lot of diligence to sell a home. By adhering to the advice of an agent, pricing your home optimally and being sincere when filling out necessary legal documents, you increase the chances of your home selling fast and seamlessly.
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