Selling your home is a complicated process, and it is one of the most expensive things you will ever sell, and mistakes have the potential to cost you a lot of money. These are some mistakes that stand to cost you money in your home sale.
Mispricing Your Home
Determining the right price for your home can be tricky. Overpricing it can lead to your home sitting on the market for too long, and eventually, you will be forced to price it down. If you underprice your home, it can sell faster, but you may be losing on out on thousands of dollars. Either way, not putting it in the right price range when you first put it on the market can lose you money.
It is best to consult your real estate agent about this. They know how to compare your home to others on the market and give you an appropriate price range.
Only Considering The Biggest Offer
The highest offer is exciting, but it may not always be to best offer to choose. In a home sale, the offer usually comes with contingencies, which are conditions that protect the buyer, like an appraisal contingency or a financing contingency, to ensure they can secure their loan.
Pay attention to these contingencies, they can greatly impact your sale. The person giving you the high offer may have a contingency that they sell their existing home first, so you would be stuck waiting for that to happen before you get to sell your home. If you are in no hurry to sell, you might be willing to wait, but if you need to sell sooner, you may want to look at the lower offers.
Selling When The Mortgage Is Upside-Down
If you still owe a balance on your mortgage, use part of the money from the sale to pay that off; it is usually easy enough. Unless your mortgage is upside-down, meaning, your property has gone down in value over the years.
You might not be able to fully pay off the mortgage in this instance, or you might just break even on your sale; neither of these are ideal situations. If you find yourself in this situation, unless you absolutely have to sell, you may want to wait until you have built up new equity in your property and will make money from a sale.
Staging is a vital part of selling the home. Buyers need to be able to visualize themselves in living there, which can be difficult if the home is not staged right.
If you leave too many personal things lying around, like photos, trinkets, children's toys on their bedroom floor, or leaving something cluttered can make it hard for a buyer to form a connection to the house.
However, if you remove too much from your home, you can leave it feeling cold and unwelcoming. It is a good idea to consult your real estate agent, a staging professional, or someone who has an eye for decor on staging your house, to make sure it looks just right.
Todd Wilkinson is the Founder and Owner of FonHome Realty. FonHome is a customer-centric brokerage where our clients are in control and our experienced agents are respected for providing the positive and exciting experience the real estate transaction should be. Todd is an accomplished real estate investor with an undergraduate degree in Financial Economics and a Masters’s degree in Business Administration. Todd has held senior management and executive-level positions with the world’s two largest retailers and a successful startup venture. Todd has served terms on the University of Arkansas Advisory Board and is actively involved with the St. Theresa School in Kenilworth. Todd opened his own brokerage after feeling underserved in his personal experiences with real estate transactions and wanted a firm whose mission was on serving the fiduciary responsibilities guaranteed to the Buyer and Seller. Contact Todd today for a free Comparable Market Analysis for your home or for advice on beginning your search for a new home at www.fonhomerealty.com.