The time has come to sell your home – but how does selling work? Many people go into the selling process assuming it takes less planning and consideration than buying, but to get a great price for your property and to sell it quickly requires commitment and organization. Here are a few common mistakes to avoid when selling your home.
Doing Renovations That Don’t Count
When people know that they will be selling their homes in the near future they often are anxious to maximize their property value. Sometimes this can result in giving a home unnecessary “upgrades” and renovations that cost plenty but don’t add much to your home’s value. While luxury features and spacious floor plans can increase interest in your home, these mean very little if other parts of your home have not been maintained.
Most major renovations should be undertaken to fit your needs while you live there. A well-planned, timeless renovation can also payoff when it comes time to sell. However, undertaking renovations solely to try to inflate the value of your home could just as easily see you taking a loss.
Not Doing Repairs That Matter
Much more important than last minute renovations is showing a home that isn’t in need of major repairs. While marble countertops can peak a buyer’s interest, major repair issues that come up during inspections can easily tank any sale. Structural inspections are usually mandatory when selling your home, and inspectors can usually spot where a problem is being covered up instead of repaired.
Before you make a move to put upgrades into your home make sure it doesn’t need major repairs. Prioritize and tackle those jobs first – issues like roofing and water damage, mold, framing issues and other concerns like these can forestall or sabotage a sale. Not only will major issues cut into the value of your home, it can delay the sale of your property if the repair needs to be made after you put the home on the market.
Miscalculating Your Money and Time
The idea of selling your home probably gets you a little excited about the money that will come in from the sale. It’s important not to count your chickens before they hatch. Selling a home, especially for first-time sellers often costs more than anticipated. While many sources recommend estimating that 5-6% of your sale price will go to your agent and closing costs. Instead of 5-6% estimate that the total expense of getting your home sold may be closer to 10%. Estimating higher takes into account buyer negotiations and repairs and expenses in getting the house ready to sell. With a realistic estimate of the money breakdown, there’s less opportunity to get yourself in a financial bind.
It is also important to give yourself flexible options for the timeframe of your sale. If your house sells quickly you may need to find a short-term rental or sublet between when your house closes and when you find your next home to purchase. Conversely, sometimes buyer’s conditions can make a sale drag out longer than you anticipated and put you in a bind if you need cash for a down payment on your next home.
Automatically Taking the Highest Offer
This may seem counterintuitive at first, but the highest offer on your house may not be the best one to accept. While it does dangle more financial gain in front of you, you want to be sure other offers don’t shake out better. Always thoroughly assess what is attached to the highest offer. This may mean waiting for the buyer’s home to sell or making a costly repair before closing.
Giving time to other offers may reveal that another buyer can make the sale easier, or within an optimal time range for your needs. Weigh the hidden expenses of the offers that you receive and the one that comes out ahead may surprise you!
Fawn Ridge Realty
Want to make selling your home smooth and painless? Working with Fawn Ridge Realty is a great way to start. Our years of real estate experience and knowledge of the Lake Carroll market make us a natural fit for buying and selling in beautiful Northwestern Illinois. When you’re ready to sell your home, give us a call and see what Fawn Ridge Realty can do for you!