See what mistakes cost home sellers time and money and how to avoid them.

Many things about the home-selling process are within the seller’s control. However, it’s not uncommon for homeowners to make choices that cause their home to stay on the market longer and perhaps sell for less. Here are five common mistakes when selling a home and how to avoid them.

Overpricing

One of the most common seller mistakes is setting their price too high. They might base their listing price on a gut feeling or on how much money they want to walk away from the closing with. Neither approach takes current market conditions into account.

To avoid overpricing your home, you need data. Specifically, you need to compare what nearby properties with similar features have sold for recently. A real estate agent can prepare comparables, also called comps, using local pricing data from actual sales. Current market comps are the most valuable tool for pricing your home.

Not staging

We humans have a way of getting used to things, so much so that often we don’t notice things like wear and tear, outdated home finishes, clutter or crowded rooms. Some sellers feel that their home appears okay just as it is, while prospective buyers see problems they can’t get past. Not staging a home leads to buyers who pass your home by in favor of a home that looks closer to move-in condition.

To present your home in a way that appeals to buyers you’ll need to do some staging. At a minimum, declutter. In addition to packing away personal items like family photos and tchotchkes, consider if some pieces of furniture should be removed.

Look at your home through a buyer’s eyes. Overstuffed closets look like a lack of storage space. Dim lighting doesn’t feel inviting. Also, experience your home through a buyer’s nose. Address the source of any mold or mildew smells. Deep clean carpets, rugs and pet bedding to eliminate pet odors. Thoroughly clean kitchen surfaces, including exhaust vents and the garbage disposal. Take the trash out and make sure no odors linger in the trash can.

If you find it difficult to imagine what a buyer will see and smell, invest in hiring a professional stager.

Skipping repairs

It’s tempting for some sellers to skip doing repairs around their home. They may believe a buyer will come in and change things to suit their own preferences anyway. However, this mistake can cost them in two ways. First, many buyers may skip over the home in favor of ones in better condition and this can lead to having your home on the market longer. Second, interested buyers often overestimate the cost of repairs and this will be reflected in a lower purchase offer.

The best thing homeowners can do is to stay on top of home maintenance the entire time they own a house. Deferred repairs cause many buyers to pass on a home. If upkeep has been neglected, there’s work to do unless you’re willing to accept less for the home. Key things to fix or update are the roof, HVAC system, worn or stained carpet, broken windows and screens, and chipped or peeling paint, inside and out. Landscaping will also require attention; trim overgrown shrubs and tree limbs that touch the house and keep the lawn mowed in summer and walks clear of ice and snow in the winter.

Letting emotion drive decisions

Home is where the heart is, and where the heart is, there are often a lot of emotions. A seller may feel their home is worth more than the value indicated by comps. They may feel offended by a lowball offer. Their feelings may be hurt if they overhear a buyer criticizing their décor. It’s natural to experience emotions, but it’s a mistake to let them hinder the sale of your home.

To avoid letting emotion drive your decisions as a home seller, focus on facts and the reason you chose to sell your home in the first place. It’s true that it’s disappointing if your home is worth less than anticipated. It’s also true that any home is only worth what a buyer is willing to pay. Also, when you remember the reason you’re leaving, you can redirect your attention to what life brings next, whether that’s a newer home, one that’s a better size for you, or simply a fresh start.

Not disclosing known defects

Buyers have a right to know about the condition of the home structure, systems, and any known environmental or legal hazards. To facilitate sharing this information, Michigan law requires sellers to furnish a Seller’s Disclosure Statement. A seller who makes the mistake of not disclosing known property conditions or hazards could face a deal that gets called off or legal action by a buyer who seeks financial compensation for alleged fraud.

To protect yourself and the buyer, be truthful when filling out the Seller’s Disclosure Statement.

When it’s time to buy a new home

When selling a home means buying a new one, talk to us about a home loan. Our purchase and refinance mortgages are available in all 50 states, so even if you move outside Michigan, you can still access our great rates and flexible lending options. 

 

 All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications and collateral conditions.