Selling your home is often a long and stressful process, which is why it’s easy to overlook certain details and make mistakes. These mistakes can end up costing homeowners time and money. But the good news is that they’re avoidable with careful planning and preparation.
We’ve compiled a list of 7 common mistakes homeowners make when selling their home so that you can avoid them. Read on to find out more.
1. Lack Of Research
You’ll need to do your homework before jumping into selling your home. Lack of knowledge of your local area, property type and the current market demand could be a huge hindrance to a successful sale.
For starters, try to answer the following key questions to ensure you’re covering enough of ground:
- What is the demand for your property type and area?
- What is the buyer demographic in your area?
- What’s your competition?
- What valuable selling points does your property or area offer?
Start your search online- looking through reputable websites and at market reports on your suburb. When you are ready, reach out to a professional and experienced agent to gain insights specific to your local area.
2. Overpricing/Underpricing Your Property
Overpricing your home could turn away potential buyers while underpricing it could mean a lower profit. Setting an unrealistic price is the most common mistake homeowners make when selling their home.
You should be setting a legal and realistic price for your home right from the beginning. Setting something too high initially with the intention to lower it later on may not work either since buyers may already be put off. Get a property valuation or appraisal done by a professional to ensure you list your home at a realistic price and start off your selling process on the right foot.
3. Overlooking Hidden Costs
Selling your home comes at a cost, most of which can easily be overlooked in the beginning. These hidden expenses can quickly add up so it’s important that you factor this into your sales plan.
Here are some common expenses that you should consider:
|Staging expenses||$2,000 and $8,000|
|Marketing and advertising costs||$6,500 – $8,000|
|Moving expenses||$300 and $10,000 (depends on distance and number of items)|
|Legal fees||$800 – $2,000|
|Capital gains tax||Depends on how much gains are made from your property sale. Reach out to your tax accountant for this.|
|Council rates||Depends the councils annual budget and rateable properties in the area. Reach out to your conveyancer for this.|
|Bank fees||$100 and $1,500|
4. Letting Emotional Attachment Get In The Way
Selling a home you’ve lived in or owned for many years would likely mean that you have some personal attachment to it. Because of this, many sellers make the mistake of taking negotiations too personally and end up losing out on closing a deal that satisfies all parties.
Throughout the selling process, you will likely receive feedback from buyers that you may not like or agree with. Some owners have taken offence at this, causing their sale to fall through. Remember that not everyone will see your home the way you do.
At the end of the day, this is a business transaction. Keeping emotions in check would be in your best interest.
5. Using Unprofessional Pictures
Unfortunately, settling for average images is a common mistake most property owners make. We’ve seen everything from blurry phone camera shots to others where the reflection of the owner was caught on camera. These will turn away potential buyers. Keep in mind that more than 90% of homebuyers begin their search online.
Instead, recognise that you are marketing an asset valued in the hundreds of thousands to millions. A professional photographer will cost you between $150-$200 per hour which is a small investment for a big impact. At the end of the day, presenting your property in its best light, will help you make strong impressions and secure better prices for your house.
6. Choosing The Wrong Agent/ Not Using One At All
Choosing the right agent is imperative in ensuring that you get the best out of your sale. This means you’ll need someone who is experienced and has knowledge of the local area you’re selling in.
To choose the right agent, you’ll need to ask plenty of questions to ensure that they know their stuff. Here are a few questions to get started:
- Discuss case studies of other property sales – how did the sale happen and how did they achieve the desired outcome?
- What approach do they think will work best for you? And why?
- Do they have extensive experience with your property type and location?
- What sales method do they recommend for you? And why?
From their responses, you will be able to gauge if they are the right fit for you and your property. If you don’t feel confident, keep asking around till you find the right one.
Now, not using an agent at all could also be detrimental to your sales process. Carrying the weight of preparing your home pre-sales, finding interested buyers, negotiating and finalising the paperwork are huge tasks. This could lead to unnecessary stress, wasted time and money which could otherwise be avoided by hiring a good agent.
7. Not Reading The Contract
When it comes to handling legal matters, remember to read the fine print. It’s easy to want to rush into signing your contract after a long sales process but overlooking key details of your contract can be the worst mistake to make.
Once you’ve signed the agreement, you are required to comply with all of its terms and conditions. Unknowingly, you could have signed your property away including additional repairs or furnishings. To avoid this, double check everything and go through it with a solicitor before signing anything.
Bottom Line – Preparation Is Key
If there’s only one thing you take away from this article, remember that mistakes can be avoided when you’re properly prepared. It’s better to take your time understanding what is required from you when you’re about to sell your home before jumping into things too quickly.
Stay on top of your process and make sure that you are fully committed to ensuring a successful sale. And where possible, enlist the help of an experienced agent.
CT Real Estate’s dedicated team is experienced with the Melbourne CBD and surrounding suburbs. Contact one of our friendly agents today to get the help you require.