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Much like home-buying, home selling is an in-depth process that takes time and effort to get right. In fact, even in a seller’s market it is not guaranteed that you will be able to sell your home, regardless of the high demand for properties. However, most of the time these failed deals are the result of simple mistakes that you can avoid if you are aware of them.
So, to help you succeed in your next home sale, here are some common mistakes sellers make and how you can avoid making them.
However, before we dive into the home selling process, click the link below to book a free strategy call with our team here at LendCity today to discuss how selling works for a property that is still tied to a mortgage.
Not Using an Agent
It can be incredibly tempting to sell a home by yourself, especially if you are an experienced seller. However, in Canada less than 10 per cent of FSBO (For Sale by Owner) homes actually end up selling. This is due to a wide variety of fine details that can easily slip through the cracks while you are trying to make the sale and live your life at the same time. Afterall, selling a home can be a full-time job.
This can include:
- Struggling to Prepare the Home for Sale
- Finding Buyers
- Setting an Appropriate Price
- Managing Paperwork
- Selling in the Desired Timeframe
Instead of taking the time to try to carry out all of that on your own within your current schedule, you can make it much more manageable by hiring a realtor to assist you in selling the home. Realtors already have access to a variety of proven avenues to secure buyers and are well-versed in the paperwork needed to complete the sale. As well, homes sold with a realtor have a significantly higher rate of being sold on-time at a price that suits both the buyer and seller.
It is also important to consider which realtor you select. It is recommended you hire a realtor with experience and a proven history of good deals and great reviews.
Poor Presentation and Advertising
Regardless of whether you use a realtor, you still have a responsibility as the seller to make the home as marketable as possible so that your realtor can find interested buyers. The main areas where sellers mess up in this department are in staging and marketing.
Discover How To Flip A House With This Step By Step Guide
How a home is laid out and cared for makes a dramatic difference for potential buyers. Think about it, would you like to buy a home that looks and feels cramped with an excess of clutter, or would you sooner buy a home that looks bright, open, and comfortable.
It is safe to assume you would want to clean, open home. If you are trying to stage your home for sale, try to eliminate any distractions or visible clutter by packing them up. For example, if you collect decorative dolls, they may seem fine to you in their normal locations, but for a potential buyer a wall full of dolls may be a turn-off. You are going to move out anyways, there is nothing wrong with packing.
If you struggle with staging, ask your realtor if they know any good staging companies. You may be able to get help from a professional to simplify the process.
Most potential buyers are going to keep an eye out for homes being marketed for sale, so your marketing needs to stand out. Many realtors have their own methods of marketing houses, but that does not mean you cannot help the home selling and marketing process along. Start with something simple like a yard sign, that way anyone who is driving by will see your house and know it is available. Then, try to get some high-quality photos of the property that show off each room and amenity as well as possible.
Try not to settle for cellphone photos, while your phone is certainly capable of capturing the photos, you can get much better results from a professional camera. If you can, hire a photographer or a friend with experience in photography to capture the shots for you. Sometimes, your realtor may know a photographer you can use, or sometimes they have one they work with to bring along. In this case you can sit back and let them do their magic and watch how much smoother the home selling process will be..
Pricing the Home Incorrectly
It is incredibly easy to price a home incorrectly. Afterall, if you have been living in a property for a while it can begin to feel valuable to you sentimentally, even if the market does not reflect that personal value, and most buyers will not care about your opinion and that over-valuation will reflect on the home selling process.
If comparable properties are being listed at $400,000 and you are claiming your home is work $650,000, you are not going to get many offers, if you get any at all. As well, be wary of setting your price high because if the buyer orders an appraisal (which they should) and your property comes up short, you may lose buyers.
When it comes to setting your price during the home selling process, trust your realtor. They know the market well and if they are telling you a property is worth a certain amount, odds are the actual value will be remarkably close to what they tell you. Your realtor wants you to be able to sell your home and walk away happy, so do not let yourself believe they would try to lowball you out of the value of the home. They do not stand to gain anything from lying to you.
In fact, it may sound crazy but if your realtor does tell you to list your price lower than the current market value, they may be onto something. If your home is listed low, buyers will see it as a deal and rush to put in offers thus driving the price up over market value while also giving you a wider selection of potential buyers. It is a common hack that sellers use during home selling.
In Short – Home Selling is Not Always Easy
Home selling can be complicated, but with a keen eye you can avoid critical mistakes that will spoil your deals. So, do not be afraid to ask the professionals for help. For more information about the world of real estate investing, visit LendCity.ca or give us a call at 519-960-0370 and we can help you connect with the resources you need to make your next sale a success. Alternatively click the link below for a free strategy call with our team today.