Top Mistakes First Time Home Sellers Make
What’s the worst mistake first time home sellers make?
Many first time home sellers realize their mistakes after the entire home sale process have been completed. By then it’s already too late, and in many cases, the home seller has already lost some amount of money.
Interestingly, first time home sellers can learn from the mistakes of other first time sellers, investors, realtors, agents and homeowners. Hopefully, you wouldn’t make any of these mistakes.
Mistakes First Time Home Sellers Make
Hiring the cheapest agent
Many first time home sellers hire a real estate agent to help them sell their property. That’s a good one. But problem is, they always hire the cheapest and most inexperienced agent for the job. Unknown to first time sellers, once the deal is closed, you’ll pay the agent almost the same amount as you would if you had hired a reputable professional.
An inexperienced agent will sell your property less than its actual worth because they want to walk away with the commission as soon as possible. Such agent will convince you to sell to the wrong prospect without considering the legal consequences. Because of the agent’s inexperience and lack of marketing prowess, your property may stay longer in the market. You’ll keep lowering the price until you have no option than to either sell at the wrong price or hire another agent. Whichever way, you’ll lose!
Do not hire an agent based on how cheap or expensive they are. Hire an agent based on their track record of selling properties in your area or neighborhood. Do not hire a weasel.
Not timing the sale for tax benefits
There are several tax benefits you can take advantage of when selling your home. Wrongly scheduling your home sale by just one day can cost you tens of thousands in extra taxes. Don’t make the mistake of being left a day late and several dollars short.
So reach out to your accountant and ask about long term capital gains tax breaks that apply to you and then check your calendar to find out how you can schedule your home sale to match the tax break periods.
Skipping home inspection before listing
Home inspection will help you figure out all the key areas of your home that requires fixing or can cause problem during marketing. It also gives you the chance to identify key features of your home that adds value to the entire property.
But many first time home sellers skip home inspection. Some because of the fee and some because they believe they know their property too well. You’ll be shocked how house hunters easily figure out all the defects in your home and cut down your asking prices significantly.
Not staging your home
Home staging is a key aspect of home marketing. It’s easy for first time home sellers to assume that cleaning a home is enough to sell the property. Home cleaning is absolutely different from home staging.
Interestingly, home staging requires showcasing the features of a home and how those features makes living in the home convenient and enjoyable. Home staging also displays the aesthetic value of the home through different styling that are absolutely appealing to homeowners.
If you hire a real estate agent and I suggest you do, odds are the agent will recommend what you can to make the home staging successful, like hiring a professional home stager and making some repairs.
Not marketing your property
Many first time home sellers assume that a “For Sale” sign on the yard is enough advertising for marketing their homes. While some other first time sellers leave all the marketing to their real estate agent. This is one of the mistakes you should never make.
You should consider open houses, virtual tours, print ads and social media. Also, while marketing your home, make sure you market the neighborhood and area. If there are great schools, theaters, open playgrounds, tourist attractions etc. around your neighborhood or area, mention them in all your marketing materials.
Advertising with poor photos
Hire a professional photographer and take high resolution photos of all the stunning features of your home. These photos should be shared online including social media and all other marketing channels you intend to use offline and online.
Poor and blurry photos make your property less appealing to potential buyers. If what house hunters see on photos aren’t attractive and appealing enough, they wouldn’t bother to visit the property.
Not making full disclosure before closing the sale
Many first time home sellers end up paying big bucks because they didn’t disclose it all to the new buyer before closing the sale. You should be upfront and forthcoming about all your home issues. Do not assume that the new homeowner wouldn’t notice the defects. Once they do, and they will eventually, you’ll be required to pay for the repairs.
Bottom line
As a first time seller, don’t hesitate to ask questions. If there is anything that seem strange or you don’t understand about the sale process, ask your lawyer, real estate agent, accountant or any other person involved in the sale.