Selling Your Home: Six Costly Mistakes You Should Avoid
So you want to sell your home. You paid to have your property listed on the most popular real estate websites and now you have buyers lining up at your door. You should not have any problems selling it quickly, right? Well, not exactly. If you’re not careful, you could lose the sale or perhaps even get sued by an angry buyer who feels like he/she was ripped off.
If you want a successful sale, make sure you don’t make any of these mistakes:
- Selling your home before qualifying to buy a new one.
Your financial status may have changed since you purchased your last home and this could mean not being able to get a new loan. It’s important to first get a bank pre-approval before you sell your home or you could end up renting until your circumstances change.
- Not verifying your loan payoff.
You need to call your bank to check the mortgage payoff for your current loan and find out if there are penalties for paying off your loan early. Some lenders impose a penalty for pre-payment, which can be quite high.
- Guessing the price of your home.
You really need to check the fair market value of your home yourself by getting it appraised because if it’s overpriced, you’re going to have a very hard time finding a buyer. Your real estate agent can help you determine its value but there’s no match for getting a professional appraiser to do it for you. Make sure it’s not an appraisal for a loan, but for its true market value. Loan appraisals are usually lower than market value appraisals.
- Failing to prepare your home for the sale.
Nothing can be worse than trying to sell a home in very poor condition. You’ll only end up turning potential buyers away or selling your home for a lot less than what it’s really worth. Make sure to improve its curb appeal and fix any damage or signs or wear in your home. If you have a pest infestation, it’s imperative that you call professional decontamination services to get rid of the problem before you even list it. You don’t want rats running around your home when buyers come in to inspect your property!
- Underestimating closing costs.
There are lots of costs associated with every home sale. There’s real estate commission, advertising costs, attorney fees and closing agent fees. You also need to pay gains tax (if applicable), prorated property taxes, homeowners’ association fees, and others. These costs can add up which is why you need to consider it when setting the price for your home.
- Allowing your emotions to take over.
Throughout the entire selling process, you need to expect issues to arise. No home is perfect, so don’t allow emotional situations to kill the deal.
Make sure you avoid these mistakes when selling your home or you could end up getting less than what you deserve!