Common Home Seller Mistakes

It can be overwhelming to sell your home. You’re not a real estate guru who understands the process of selling. You may think that you will make mistakes when you are preparing to sell your home.

You can do it and make it look easy. Many people make mistakes when selling their home, so you should be aware of them if you wish to avoid making the same ones.

Let’s look at 10 of the biggest mistakes that home sellers make. This way, you will be fully prepared.

Mistake 1: Not expecting home-selling costs

There are costs associated with selling your home. If you own some equity in your house (the current value of your home minus the amount you owe for your mortgage, or the portion of your home you actually own), then the majority of these costs can be covered from the proceeds of the sale.

You should be familiar with the most common costs associated with selling a home, so that you are not caught off guard. This list will help you.

• Typically, the seller pays the commissions of both the listing agent and buyer’s representative. Agent commissions will likely cost you around 6%. If your house sells for $200,000. Then around $12,000 will be paid to the agents that helped you close the deal.
• Closing costs are usually paid by the seller. These closing costs can include taxes, title transfer fees, attorney’s fees, and the fee charged to the person who organizes the closing on the day of closing.
• Home staging costs about $400 if your agent handles it, and $600 if you hire a service. 
• Home inspection: Before you list the property, get a pre-listing home inspection. It’s not necessary to fix all problems, but it is important to be aware of them in advance so that you can communicate with potential buyers and avoid unpleasant surprises. You’ll also need to budget to cover any home repairs or updates.
• Seller concessions are when the seller offers a buyer an incentive, such as donating your washer and dryer to the buyer or paying for some (or even all) of their closing costs. 
• Moving expenses: The cost of moving depends on many factors. For example, whether you hire a company or enlist the help of friends. Moving companies average around $1700, so you’ll want to be cautious and do your research. Read our article on tips to make moving easier.

If you are not prepared, adding up all of these costs can be overwhelming. But don’t worry! Good real estate agents know how to arrange the sale of your home with these costs in consideration.

Mistake 2: Selling without an agent

This is a huge mistake.

You could end up missing important steps to selling a house, wasting time with paperwork and losing out on the opportunity to earn more money.

This is almost a $100k difference. This is more than enough to cover the cost of a seller’s agent fee, which amounts to only $12,150 for a $405k sale.

You can save yourself the trouble of doing everything by yourself and hire a listing agent. After all, you will have to pay a 3% commission regardless. You don’t want to just hire any agent, you want to work with someone who is really good. This brings us to the next mistake.

Mistake 3: Hiring an inexperienced agent

It may seem nice to help a family member or friend by having them sell your home, but you’re making a big mistake if you do. It’s best to hire a professional with years of experience in the local market, not your third cousin once removed who has just gotten his license.

Mistake 4: Not pricing your home correctly

It can be difficult to price your home correctly. You could lose thousands of dollars if you price your home too low. If you price it too high, you may turn off serious buyers and risk wasting months or weeks before you get an offer. You may even have to reduce the listing price to get any offers at all.

Ask your agent to provide you with a comparative market analysis that will show you what homes similar to yours have sold for in your area. The right price can make a big difference in the speed at which you will sell your home, and the amount of money that ends up in your wallet when the deal is closed.

Mistake 5: Hiding major repairs

There is no need to hide anything when listing your home. It’s not only a move of low character and zero integrity, but the buyers will also find out. You may think that they will not notice the roof leak or bug infestation, but you are wrong. After you accept the buyer’s offer, they will probably get a home-inspection and will find out about any hidden problems.

Save everyone’s time and energy by being honest up front.

Mistake 6: Moving into a home you can’t afford

You need to ensure that your new home will be affordable, even if you are upgrading. What would that look like exactly? You should be able to make a 20% down payment. Second, the monthly payment on a fixed-rate 15-year mortgage (including taxes, homeowners’ insurance, and HOA dues), should not exceed 25% of your gross income.

Mistake 7: Cutting corners on staging

It may seem like staging a house is not a big deal. But skimping here can be a costly mistake when it comes to selling a home. Why? 

Don’t let potential buyers see an unoccupied, poorly lit or cluttered house. Keep your furniture (and arrange them nicely), remove the clutter and ensure that every room is well-lit. Rent furniture from a staging service if you don’t own any to display. This will give the buyers a better idea of how it would look if they bought it.

Give rooms a new coat of paint if they need it. Your daughter may have wanted a pastel-colored bedroom, but buyers might not like it. You can make a modest investment by paying for some painting or doing it yourself. This could result in thousands of dollars more on sale.

Mistake 8: Using bad listing photos

Buyers tend to start their search for a home online. If your listing photos are taken with a flip phone by grandma, you will lose the interest of buyers before they even arrive at the curb. It’s crucial to hire a professional photographer who can make your home look great on camera. You would be surprised at how much difference the right lighting and wide-angle lenses can make.

Mistake 9: Taking a low offer personally

Remember that a buyer’s bid is not an indication of how they view your home, or of your ability to maintain it. Hey, they must like your house, or else they wouldn’t have made an offer. Selling your home is a strictly business transaction.

Don’t get upset if they make a low-ball offer. Use that energy to negotiate the deal. Make a counter-offer with your agent. The buyer may improve the offer if they are truly interested.

Mistake 10: Limiting the number of showings

We know that getting your house ready for a quick showing is not easy (especially if your kids are around). If you restrict showings to the weekends or certain times of the week, then you may miss out on some potential buyers.

It’s important to be flexible even when you receive a request for a show that is inconvenient, like during your child’s usual nap time. Remember that this won’t last forever.

When you show your home, leave it to your agent and let them handle everything. Staying behind for showings is not only uncomfortable, but it can make the whole process awkward.

The bottom line

You can see that there are a number of home selling mistakes you could make. Some can be very costly. Now that you are aware of the most common mistakes, you can avoid them. This is a sure-fire recipe for success!