Did you know that approximately six million homes were sold in 2021? Home values increased by a staggering 20% compared to 2020.
While the market is unlikely to keep soaring as it has been, it is still a great time to sell your home! However, with many home selling mistakes out there, you may feel intimidated putting your house on the market and setting a fair home price.
Luckily, we have put together a complete guide on ten home selling mistakes to avoid in 2022, so keep reading on for more information!
1. Getting Too Emotionally Invested
You can become emotional after you sell your house. Before then, you need to keep it professional for the best home selling strategy.
It may seem cold-hearted, but if you distance yourself from the emotions tied to your home, you will do a much better job negotiating prices and talking with potential buyers. Rather than seeing yourself as the homeowner, try and view it as a business transaction.
Once your home is sold, you can take time to bask in the memories.
2. Not Hiring an Agent
Hiring a real estate agent is not a deal-breaker, but it can definitely help. Typically, a real estate agent will accrue some commission off the sale of your house, which can cut into your take-home cash.
However, if you find a good agent, you may reap the rewards of all the benefits that real estate agents do provide, such as:
- Less stress
- Less paperwork
- Decrease emotional ties
- Decrease negotiating
- Knowing the market
You will have less of a role in the sale of your house as you off-load most of the heavy lifting on your real estate agent's shoulders. This can give you more time for work and spending time with loved ones. Additionally, a good real estate agent will know the housing market better than you probably would.
Having adequate knowledge can help you set a fair home price and get your house sold quickly. Why is now still a great time to sell your home and purchase a new one?
At the end of 2021, interest rates were hovering just above 3% on a 30-year fixed mortgage. With interests rates hitting extreme lows, it likely will not last forever. Some predictions state that interest rates could increase to 3.6% at the end of the year.
Additionally, homes are still in demand, and a good agent will get you the most bang for your buck since home appreciation increased by 12% during 2021.
3. Forgetting the Housing Market
A word of caution—do not get too eager with the hot housing market and price your house too high. Comparative market analysis can help you determine what homes are selling for in your neighborhood.
If you are not using a real estate agent, it may seem tempting to price your house higher since you think it is worth more. That tactic rarely works, and most agents say this is one of the top mistakes homeowners make.
Once the market starts dropping, overpriced houses will not sell, and you will be left with long weeks ahead of you. Typically, there is a window of time that homes start selling.
Once this window closes, it is more challenging for you to sell your home. On the flip side, underpricing your house does hold some value.
Initially, this trend started in the Bay Area, where houses are notoriously high-priced. Putting a low price tag generated loads of interest, which in return, drove prices higher than homeowner's expected.
With high demands in the housing market, this technique has quickly spread outside of Northern California and into many urban hubs, especially with work from home jobs.
4. Waiting Too Long
You have likely heard the home selling strategy of 'there's a right time and a wrong time to sell.' While this holds some value, you should not wait in most instances.
Winter is typically a bit slower, and if you are not pressed for time, you may consider waiting; however, if you wait too long, advertising homes for sale may get lost in the hustle and bustle of a busy market. People are often looking for new homes during every season, and if you also want to dip your toes into a new house, you are better off selling now versus waiting.
5. Not Making Changes
Even minor changes can go a long way in improving your home's value. For starters, you can change the carpet, upgrade your furniture, or buy new appliances. While these costs can add up, it pays dividends down the road and how future buyers view your space.
Along with making minor changes, you should always stage your home before a showing. This includes cleaning (more on that later), but it also may consist of minor rearranging and neutralizing.
While you may have unique wallpaper or trendy flooring, choosing neutral-colored palettes can appeal to a broader range of homeowners.
6. Hiding Major Repairs
One of the biggest home selling strategy mistakes you could make is hiding major repairs. Most people use a professional inspector before purchasing the home, and eventually, it will reveal significant problems.
For some, you could negotiate a lower price or offer to fix it beforehand, but there is a large market that wants a move-in ready home. If you hide these details, you will lose a large market of potential buyers.
There are a few ways you can work around major repairs. First, you could move your pricing target down and express transparency over the problems. Second, you can place a contingency on the sale of your home with you fixing it beforehand.
If you are unsure if there are hidden problems, hire an inspector beforehand. Leaks in your roof or cracks in the foundation can quickly add up costs.
These 'checks' are usually roped into what is dubbed a home appraisal. A home appraisal can also alert you and a realtor to what your home's value is. Here are a few things that a home appraisal looks at:
- Plumbing
- Roofing
- Basement
- HVAC or air conditioning systems
- Handrails
- Visible cracks
- Doors
- Major unfinished projects
If one of these items gets flagged, you can either follow the steps above or work on fixing it before you even put it on the market.
7. Not Providing Enough Photos
Unless you are a professional photographer, you may consider upgrading this part of the home-selling process. A professional photographer can bring in that 'wow' factor that draws in a crowd.
Most homeowners shop online for potential options. Quality photos can accentuate the positive features in your house and separate it from other homes that did not use the same strategy.
Companies like Hommati have professional photographers who have the skills and proper equipment to capture your home in the best way possible.
8. Remember Curb Appeal?
Curb appeal is everything. The exterior of your home, garage, and yard all play a significant role in how potential buyers view it for the first time.
Before taking photos, make sure you clean up the yard, mow the grass, and fix any obvious signs of damage to the driveway or garage. If your home needs a fresh coat of paint, you may want to splurge on the quick fix since it could make the difference between someone driving right by your house versus stopping in for a look.
9. Not Finding Time To Clean
If you walk into a home and all you see is clutter, you are less likely to be attracted to living there. People want clean, open, and clutter-free spaces. First, start by deep cleaning.
New homeowners want an idea that the home has been taken care of and not neglected. Additionally, do not get lazy. Rather than shoving extra items and furniture into closets, consider this a time for reorganizing and getting rid of old things.
Make sure you open up the blinds and utilize as much light as possible, which can make your home seem bigger. Also, while you want a cozy feeling to your house, you do not want to go overboard.
Having too many personal items can take away a potential buyer's interest. Future buyers want an open space where they can picture themselves. For the time being, consider putting away family photos.
10. Forgetting About Closing Costs
Last but certainly not least, do not forget about closing costs. These additional costs can range from 2% to 5% depending on where you live, taxes, and fees.
Based on reports in 2020, the average costs were just over $6,000. These costs play a role in buying a home since they will affect your take-home amount. In some cases, you can negotiate closing costs with the buyer and your real estate agent (if necessary).
Don't Make Home Selling Mistakes
Have you thought about putting your house on the market in 2022? If so, you want to avoid any home selling mistakes. One way you can take preventive measures in making sure you get the most bang for your buck is by checking the price of your home against others on the market.
Hommati offers various services and tools at your disposal that let you check home prices, search for real estate agents, and more.
Check out our website today and start the process of selling your home!