Most Costly Metro DC Area Seller Mistakes
Did you know that there are more than 110 variables involved in a single real estate transaction? These variables can have an impact on sales process or more importantly, they highly affect sales price which shapes sellers' bottom-line or in other words, sellers' net proceeds . In order to manage these variables proactively and successfully, there is no doubt that sellers must seek to hire highly skilled real estate professionals who have solid marketing and sales strategies creating a winning environment for their clients.
Before or during real restate transactions, various mistakes are made by homeowners that it costs them thousands of dollars. Below, I have listed the most costly and common mistakes that majority of homeowners make.
- Not Hiring a Real Estate Professional: Trying to sell your home by yourself seems to be very possible for every homeowner. However, managing more than 110 variables, creating a strong marketing plan with a great sales strategy, understanding just the basics of a real estate contract, negotiations, responsibilities, disclosures and other paperwork can easily be quite overwhelming for an unlicensed homeowner. Also, different statistics are out there pointing out to same results. When a homeowner tries to sell his own home, he often ends up waiting much longer to sell and sell it for much less than homeowners who work with a real estate professional.
- Pricing Too High: It is very critical to get familiar with the market and other sold properties in the neighborhood as a homeowner. It makes pricing process a lot easier if a homeowner compares his own home objectively to other recently sold listings in the same neighborhood and come up with a realistic price himself. However, homeowners sometimes find it very hard to let go their properties whether it is because of their emotional attachment or financial reasons. They also sometimes look for one-to-one return on investment for all updates they have made which, in some cases, may not be possible. Real estate pricing goes with the market value. If priced above the market value, your home will stay on the market much longer before it gets sold or even worse, it may never get SOLD and become another statistic.
- Neglecting Maintenance/Repairs Prior To Listing: Taking care of repairs and keeping your home maintained before it goes on the market is always going to cost you a lot less than you may think. On the other hand, if your home is not maintained and it needs major repairs, then buyers will most likely find out about these problems during their home inspections only to ask for a credit for repairs or in the worst case scenario, to void their contracts which will make you put your home back on the market and start the marketing process all over again.
- Using Low Quality Photos: According to recent studies, 90% of the home buyers start their home search online. Therefore, I can't stress out how important it is to have your home professionally photographed for a great first impression. Having high quality professional photos should be the number one rule of thumb for homeowners who are interested in selling their home fast and for the most money.
- Not Removing Clutter or Selling Empty: Potential home buyers have much better experience in their home hunting visits when homes are de-cluttered and staged. Most home buyers look at homes and visualize themselves, their family and furniture while thinking of how they would spend time in their future home. If they are able to establish that special connection, then they will make an appealing offer. While staging and de-cluttering are crucial for buyers to visualize themselves in homes, it is also very important not to list your home completely empty. Selling an empty house will create an empty feeling for buyers. Minimum furniture and decors can even create a warm and appealing atmosphere that will charm potential buyers. Therefore, I highly recommend making the small investment in hiring a professional stager who can turn around the make-up of your home. You can find my FREE preferred list of professionals and their contact information here. Feel free to provide any feedback after you use my vendors' services.
- Not Knowing Your Exact Payoff Amount & Closing Costs: Whether you are selling your home or selling to buy a new home, it is always important to know your net proceeds amount to be able to plan your next moves ahead of time and negotiate knowing what numbers would work for you or not. Therefore, it is highly recommended that you obtain your payoff amount from your bank and sit down with your real estate professional to work on different net proceeds scenarios so you won't have any surprises when everything is done and over while you are at settlement table.
- Not Providing Easy Showing Access: 90% of home buyers start their home search online and if they like your home, they will schedule a showing appointment. Keeping your home clean and showing ready can sometimes be challenging. On top of that, it may not be easy to accommodate all showing requests. However, keep in mind that some buyers may have tight schedules due to various reasons. If you don't provide easy showing access, buyers will look at other homes so you won't have buyer interest and you will potentially miss out receiving offers. Check out my showing tips to sell your Metro DC area home.
- Waiting Until Spring To Sell: Buyers purchase homes 365 days a year in the DC Metropolitan area so it is not a seasonal market per se. However, during the peak of Spring and Fall seasons, there are definitely more real estate transactions than other times of the year. With that being said, as a home owner, waiting until Spring to sell your home may not be one of the best ideas as you will have more competition around you which will make you price your home aggressively with the competitors in order to get it sold. This is not one of the best scenarios that sellers would like to be in.
- Doing Massive Renovations Before Listing: Spend more to earn more works case by case in real estate transactions. Buyers show their interest within a few minutes of their home visits so first impression of your home is very critical to sell it. While having kitchen, bathroom or flooring updates may help with the first impression and attract most home hunters, sellers need to be aware of their homes' fair market value. Overdoing renovations and spending money may easily put sellers in negative factoring in other costs such as agent commissions and taxes. Therefore, it is very important to consult with a real estate professional regarding your return on investment before you decide on any major renovations. Give me a call for a FREE return on investment consultation on your home so you know what to do and how much to spend before starting your renovations.
Recent studies show that traditional ways of selling your home have become less and less effective in today's real estate market. On top of that, sellers make these 9 fatal mistakes that cost them thousands of dollars or even worse, these mistakes set them up for failure and not being able to SELL their homes. On the flip side, each and every mistake is totally preventable.
In lights of these given mistakes, I have prepared a FREE "Smart Home Selling Guide" which identifies a step-by-step and hassle-free process to get your home SOLD for the most money.
Order this guide NOW to see how you can get the most money for your home.
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Listing information last updated on February 24th, 2018 at 9:36pm CST.