Bruno Pugh
As August 2024 winds down, the housing market presents a challenging environment for sellers, according to Altos Research. With 40% more homes available than last year, over 700,000 single-family homes remain unsold. Amid this intense competition, avoiding significant mistakes is vital. Let’s look at 15 mistakes to avoid to attract potential buyers.
Set the Right Price to Avoid Delays
In today’s competitive housing market, setting the right price for your home is vital for a fast and successful sale. Asking too much can cause several problems, including reduced interest from buyers, fewer showings, extended listing durations, and complications with the appraisal process in the future.
Eliminate Lingering Odors
Strong smells can stick around and make a bad impression on buyers. Whether it’s from cooking, pets, or smoke, odors can turn people away. Make sure to air out your home and tackle any lingering smells before showings. Fresh, clean air creates a welcoming atmosphere that appeals to buyers.
Avoid Overloading Your Space with Personal Items
Too many personal items can distract buyers from seeing the home as theirs. Family photos, collectibles, and personal decor might be meaningful to you, but they can make it harder for buyers to imagine living there. Keep things neutral and declutter to create a welcoming, open space.
Not Every Addition Pays Off
The bright space has large windows that let in natural light and display your backyard. However, the cost of building a sunroom may not provide a good return on investment, and energy efficiency can be a concern if it’s not usable year-round. Other improvements, like the kitchen, may add more value.
Avoid Going Overboard with Trends
Following the latest design trends might seem like a way to make your home stand out, but it can backfire. Bold colors, trendy fixtures, and unique layouts may appeal to you, but they could limit your pool of buyers. Stick to timeless styles that attract a wider range of people.
Have a Backup Plan for Pricing Adjustments
Even with careful pricing, sometimes the market doesn’t respond as expected. Be prepared with a contingency plan in case your home doesn’t get the offers you want. After a few weeks, consider adjusting the price to stay competitive. Flexibility can help you sell faster without losing too much value.
Always Check Comparable Sales Before Pricing
Review comparable properties in your neighborhood before deciding on a price for your home. Understanding what similar homes have sold for is vital. This research offers insights that help you set a competitive and realistic price, making your home more appealing to potential buyers.
Be Ready for Closing Costs to Avoid Surprises
Understanding closing costs is important to avoid unexpected financial surprises when selling your home. Sellers typically face significant expenses, including real estate agent commissions, which can amount to around 6% to 10% of the sale price. Additionally, transfer taxes and other fees can add up.
Ensure Safety Equipment Is Installed and Functional
Neglecting to install or maintain safety equipment can raise red flags for buyers. It’s essential to have smoke alarms, carbon monoxide alarms, and fire extinguishers in all places and functioning properly. Having these items ready shows you care about safety, making your home more appealing.
Inform the Appraiser About Your Home Improvements
When it comes time for the appraisal, don’t forget to inform the appraiser of any upgrades or improvements you’ve made. Whether it’s a new roof, an updated kitchen, or energy-efficient windows, these enhancements can significantly affect your home’s value. Providing documentation and details helps the appraiser.
Stay Positive to Attract Buyers
Maintaining a positive attitude during the selling process can make a big difference. Expressing negativity about your home, its features, or the market may deter potential buyers. Focus on the positives and highlight what makes your home special. A cheerful outlook can create a welcoming atmosphere.
Avoid Pushing Brands on Potential Buyers
When selling your home, avoid emphasizing specific brands in your decor or features. Buyers often have preferences, and pushing certain brands can create a sense of pressure or make them feel like they’re being sold something. Instead, focus on showcasing the home’s overall appeal.
Be Properly Insured
Ensuring you have the right insurance coverage is essential when selling your home. Keep your homeowner’s insurance active until the sale is finalized to protect against any unexpected incidents. Once you’ve sold, notify your insurance provider about the settlement date for your new property.
Low Offers
Low offers can be frustrating when selling your home. When a buyer proposes a price below your asking price, it’s essential to respond wisely. Countering your list price demonstrates confidence in your home’s value and may encourage buyers to submit better offers. Consider rejecting low offers outright.
Don’t Overlook the Inspection Report’s Importance
Ignoring the inspection report can cost you money. Buyers usually have inspections to find problems before closing, which can lead to negotiations or even canceling the sale. Fixing major issues before the inspection can make your home more appealing and help avoid extra negotiations.