2021 was a record breaking year for the U.S. housing market. Historically low supply continues to drive up home prices across the nation, putting us in a seller’s market (the number of buyers exceeds the number of homes for sale). These market conditions drive up home prices and give the seller much more negotiating power. Considering today’s market, you might be one of many homeowners thinking about putting your home up for sale. Before you do that, we encourage you to read our blog on what you should avoid doing to better prepare for your home-selling journey.
1. Working Alone
Some people don’t understand what agents do and wonder if they even need one. It’s possible to sell a house yourself (also known as “for sale by owner”) if you really take the time to understand the process and know what you need to cover —but many will find it’s more work and much riskier than anticipated.
You risk having few potential buyers (let alone qualified buyers), making emotional choices, not knowing how to negotiate, not understanding all the regulatory and legal requirements, and not having enough time in your busy schedule to dedicate towards finding a buyer.
So despite the cost of hiring an agent, they can often save you much more time, money, and stress by applying their expertise —from conducting a home valuation to reviewing important documents and managing negotiation
2. Overpricing
Did you know overpricing your home by 10% can cut your potential buyer pool in half? The first few days after initially listing your home are critical, you’ll have the most leverage as a seller and get the most visibility of your listing online. If your property is priced way above market rate, you risk scaring off buyers. Pricing a home correctly from the beginning will help maximize the attention on your home and get you closer to getting the best offers.
There are a number of factors that go into determining a home’s market value including home size/age, location/local market conditions, comparable homes that have sold recently, economic conditions, and renovations/repairs. When you’re working with an agent, you can rely on their expertise and experience to guide you to an accurate list price. However, if you are working alone, be sure to do thorough research and understand the market so you can determine a reasonable listing price that will attract the buyers.
3. Not Hiring A Photographer
First impressions matter, especially when it comes to listings. According to a study done by the National Association of Realtors, homes with one photo spent an average of 70 days on the market, while homes with 20 photos spent 32 days on the market. Not only do photos get your homes sold faster, they get better deals too. High quality photos attract a larger pool of qualified buyers and offers. Capturing professional photographs of your property can easily get you anywhere between $1,000 to $100,000 more on your final property price.
Keep in mind, depending on which realtor you work with, some brokerages will cover all staging and professional photography costs. At Real Estate 38, we cover home staging services, professional photography & editing, and creating virtual tours for our clients.
4. Waiting For Home Selling Season
Spring and early fall are often known as the best times to sell, but that doesn’t mean you should wait months to put your home on the market. If you have a stable income, a low debt-to-income ratio, good credit scores, and enough savings, you have the ability to make that call wherever you want. It’s also important to consider the real estate market you’re in. For example, we are currently in a seller’s market, making 2022(now) a great year to sell if you’ve been thinking about it for some time.
If you’re ready to move before the real estate market’s “Spring Rush”, putting your home up for sale during colder seasons can actually benefit you. A seller will have more competition in the spring along with buyers who will negotiate more aggressively for desirable properties. With less overall transactions occurring in the winter, mortgage lenders, appraisers, and inspectors aren’t as overwhelmed so they’d be able to focus more on you, making the selling process smoother and faster.
5. Hiding Problems
Some sellers won’t disclose problems with their house in hopes of a higher offer or quick sale. It might sound like a good idea but we highly suggest otherwise. When a seller fails to disclose problems, the buyer has the authority to file a lawsuit against the seller. No matter how much a seller gains, the consequences can be time-consuming, costly, and even drastic.
If there are problems that will cost the new homeowners time and money to fix (or regret purchasing the home), it is worth disclosing —even if it’s not visible to the naked eye. Whether it’s a structural problem, leak, termite damage, or aging mechanical system, be sure to speak to your trusted agent and guide them through all aspects of the property.
6. Getting Too Emotional
It’s only natural to have emotional attachment to your home after years of living there. You’ve spent a great deal of time and love creating precious memories with your family and friends through all the holidays and milestones.
But when you’ve made the decision to sell your home, it’s important to start thinking of yourself as a business person rather than a homeowner. Look at the transaction from a solely financial perspective and focus on distancing yourself from any overbearing emotions, making the sale as smooth as possible.
