While “You live, you learn” may be a nice adage to live by, when it comes to selling a home or a property, there really isn’t much time to learn when every single mistake could cost you money. During our 17 years in the real estate market, we have seen first-time home sellers make simple mistakes worth thousands of dollars out of sheer ignorance.
And it isn’t even just first-time home sellers. Many seasoned sellers still make mistakes because of various reasons; overconfidence being one of the major ones. Here are the top three mistakes that first-time home sellers make and that you want to avoid to ensure you don’t lose money while selling your home or property.
First-Time Home Seller Mistakes
Setting the Wrong Price
One of the most crucial elements in a successful home sale is the asking price. Ask for too much or too less and you might be saddled with a huge loss on your hands.
What happens when you set the price too high? Potential buyers will usually have done their research by getting a Comparative Market Analysis (CMA) of your neighborhood. This tells them what other similar properties have sold for in your location and what a house like yours should sell for. If your asking price is a lot higher than the average, you will probably not even be contacted for a potential sale.
Obviously, when your asking price is too low, you are automatically setting yourself up for a loss. Do your research too. Get a CMA and talk to your local Boston real estate agent for advice about setting an appropriate asking price.
Too Much Home Improvement
Remodeling your home or renovating it could turn into a huge mistake for many people if it is not done with proper planning and knowledge. When you spend money on renovations, you need to keep in mind the ROI of these home improvements. Are they worth it? Will they add value to your home’s price in the market?
Home sellers sometimes spend a lot of money on renovating a simple kitchen into something out of a magazine. In our experience, most home buyers (who plan to live in the house) do not appreciate this kind of a renovation. They prefer to have rooms and spaces that they can remodel or renovate according to their requirements and tastes. So, while you love the new pink tiles on your bathroom floor, the buyer might actually hate them.
But this does not mean you ignore to replace broken tiles, leaking faucets and cracked walls. Make your house pleasant, safe and clean but don’t overdo it. The buyer should be able to imagine him or herself living in this home not wondering how he or she will keep that pristine white countertop clean.
Don’t Get Emotional
You are a seller dealing with someone who wants to buy your house – that’s it. This is a business transaction and getting upset over a buyer’s comments about your décor or furniture won’t help anyone. Keep it cool.