Thinking of selling your Morris County home? Here are some tips to help you avoid making some big mistakes so your home sale will go as smoothly as possible.
Selling a home can seem like an enormous production. You need to de-clutter, prep to list, make repairs, find the right agent, find the right buyer, find a new home, etc. Half the battle is anticipating problems before they happen. Making some big mistakes when listing your home for sale cannot only cost you a fortune but also be incredibly stressful and upsetting.
Avoid these mistakes and hopefully, it'll be smooth sailing to the closing table.
1. Not Prepping to Sell Properly
The first thing you need to think about is prepping your home to sell. Buyers will be looking at the home and deciding if your place can be their future dream home. Realistically, the cleaner, less cluttered, and more simply decorated the home is, the more appealing it will be to potential buyers. According to Realtor®, staged homes sell 88% faster and for 20% more than those that aren’t staged. There’s obviously a good reason for that.
Don’t forget about curb appeal too. When a buyer drives up to your home, are they going to get excited? If the outside looks good, that’s the first picture the buyer will remember. If the home appears to be a mess, the buyer might wonder what underlying issues there are too, and hurt any offers you may get.
2. Ignoring Major Repairs and Making Costly Renovations
During a home inspection, major issues are more than likely to turn up if they exist. You may want to consider making these fixes before you even list your home. If you are aware of any leaks or major issues, in NJ, you need to disclose these facts when you list your home. A long list of issues can turn buyers off. Some things to consider are windows, roof, HVAC, plumbing, and electrical. Anything that is broken, not functioning, or in awful condition should be addressed.
Some sellers also consider making renovations or improvements to increase their home’s value. Some are worth it, but some are costly and won’t get you the ROI you are hoping for, so be sure to discuss with your agent before you start gutting the kitchen! Remember, some buyers want to make a home their own by doing their own renovations and personalizing the home to match their style and taste.
3. The Cost of Selling a Home
Nothing about buying or selling a home is cheap, but it can be worth it if you do it the right way. When you add up closing costs, repairs, and other possible concessions to the buyer, plus agent commissions, the costs of selling can be close to 10% of the sale price.
Be sure to work with your lender to estimate your net proceeds (the amount of money you’ll pocket after selling costs are accounted for) Being informed and knowing this info before you list, can give you a better idea of how much you’ll have to spend on your next dream home.
4. Unrealistic Price
Let's face it, selling a home you’ve lived in for any amount of time can be an emotional process whether you realize it or not. The price you want and what the market dictates can sometimes be two very different numbers.
You want to price it just right! If you are overpriced you may lose out on buyers, and if you underprice the home you risk leaving $ on the table. You never want the home to sit on the market too long, then buyers start wondering “What’s wrong with the home.”
Your agent should be able to pull comparable sales, to help determine the best listing price for you. The challenge is that no two homes are alike so you always need to account for the differences in some of the home features so you can be as accurate as possible.
5. Choosing the Wrong Agent
If you choose to work with an agent, make sure you select an agent who has your best interests at heart. Sellers are responsible for the listing agent and buying agent's commission. This varies by state but is usually negotiable. Be wary of any agent giving you a steep discount though- you get what you pay for.
To help ensure you’re getting the most bang for your buck, I suggest interviewing potential agents. Ask to speak with their past clients and find out how they plan to market your home. What makes them different and 'special' from other agents? Your agent should be on your team and have a plan in place that meets your vision. It takes a village!
6. Limiting Showings
Once you’ve listed your home it’s time to start letting buyers in the door. This gets tricky and can be exhausting, and even annoying, at times but the more you cooperate, the easier it will be to sell. You will hopefully have open houses scheduled for a few hours on the weekend and sometimes buyers call to see the home on short notice, but being as flexible as possible always helps. The goal is to accommodate as many buyers as possible, even if their timing totally stinks!
If you make your house difficult to show, it clearly will not be easy to sell. Always remember the end game here, sell the house!
7. Only Considering the Highest Offer
Having multiple offers is the best! But, the highest offer isn’t always the best offer. For example, you may receive a really high offer but it is contingent on the buyer selling their own house first. You may have a cash offer versus an FHA loan. You may have a buyer who needs to close in 30 days but you need 90! Make sure you read the fine print on every offer and weigh the pros and cons of each with your agent to determine the best offer.
You ultimately want the process of selling your home to be as smooth and stress-free as possible. Things rarely go as planned in life, but if you’re informed and know the mistakes to avoid- you will be one step closer to making educated decisions. Now that you’re aware of some common mistakes to avoid when selling your home, you can be more confident when getting ready to list.
If you're ready to start interviewing- add me to your list! Let's do this!
