Mistake 1. Overvalued housing.
The sales price of a home depends on many factors, including some that are simply beyond the seller’s control. These include location, nearby home prices, economic conditions, and more. Of course, there are factors that are within the control of the sellers, such as the condition of the house (inside and out), if improvements have been made in the last few years, etc. Ultimately, however, the price a property is “worth” is determined by what the buyer will pay. It is not what a buyer should pay (in the seller’s mind). But what a buyer will pay. This is something the homeowner needs to consider, or they may overvalue the home and turn potential buyers away.
Every seller obviously wants to get the most money for the house. Ironically, the best way to do this is not to list a house for a high price. The high list price will cause some potential buyers to lose interest before they even see the property. Also, it may lead other buyers to expect more of what you have to offer. As a result, overvalued properties tend to take an unusually long time to sell and end up selling for a lower price. The bottom line is that sellers who test the market lose. No matter what the seller wants, the price is determined by the reality of the black and white market. Realtors are here to help sellers understand which houses have sold in the recent past and which houses are likely to sell under current market conditions. The homeowner needs to get a market valuation from the real estate agent and understand what the fair price of the home is in today’s market. It’s one of several areas where the assistance of a qualified real estate agent will pay for itself compared to trying to sell for sale by owner.
Mistake 2. Assuming the “exterior appeal” of the house
When a homeowner prepares to sell a home, they must remember the importance of first impressions. The buyer’s first impression can make or break the sale. With this in mind, the homeowner should adopt a realistic “new look” and then ask what can be done to improve the home’s “curb appeal.” Repair the house from the street, lawn, bushes, blinds, windows, door, mailbox. Add potted flowers out front, a wreath on the door, brass fixtures, any “buy me” look of exterior lighting home improvement. That could make a big difference in the final sale price.
Mistake 3. Big mistake is not organizing the home. The owners love their stuff and think the home is comfortable and won’t change… but guess what? Potential buyers visiting the home will likely find it messy, dirty, and uninviting. Buyers want to see a home in “model perfect” condition and be able to envision themselves in the home. “Staging” is simply a term for preparing the home to make it look its best, inside and out. First impressions are important. Create a clean, bright and welcoming environment that a potential buyer can imagine living in. For example, remove all clutter inside and out, including the garage, and thoroughly clean and polish appliances, countertops, showers, sinks, cabinets, windows, sliding glass doors, etc. A fresh coat of paint will brighten up the overall look of the house. Make any necessary repairs to dripping faucets, crumbling or stained caulk, have carpets professionally cleaned, etc. Outside, the landscaping needs to be attentive to detail, trimmed bushes, neatly cut grass, etc. Owners must give buyers a reason to call the house home.
Mistake 4. “Over-upgrading” the house! The seller can enjoy a top-of-the-line kitchen if he really wants it, but he can’t get the money on resale.
It’s easy to get caught up in a home improvement project, especially if the owner believes it will add value to the home.
For example, if the owner lives in a neighborhood where every home has a modest kitchen, he or she won’t recoup the resale money by putting in granite countertops and Viking appliances.
In other words, keep up with the neighbors. Don’t try to make the house the most expensive on the block with significant upgrades. Instead, stick with improvements that put the house on par with other houses in the neighborhood. In this way, get the best out of the home, without going overboard.
Mistake 5: Getting emotionally involved in the sale of the house. This is one of the challenges home sellers face when putting their home on the market. Once the house is for sale, it is a commodity. The owner must be prepared to treat it like a commodity, sell it like a commodity, and trade it like a commodity. It doesn’t matter what you “want”, only what the market can bear in terms of prices. People will come and kick the tires, so to speak, and the homeowner can’t get excited about how he may or may not appreciate the nuances of the home.