Selling your home is a major decision, often involving a lengthy, stressful experience for the vendor. In our many years of real estate experience, we’ve learned that these challenging situations can generally be avoided, simply by steering clear of a few common mistakes.
Listed below are 10 ways to keep the sale of your home straightforward and hassle-free.
10 common pitfalls to avoid when selling a house
While it is an exciting step to take, selling your home can be daunting, emotional, and incredibly time-consuming. Before you dive in, you need to have a game plan in place to avoid the following problems.
1. Letting emotions get in the way of the sale
A lot of emotions will arise when selling your home, from nostalgia and excitement, to worry and frustration. These are healthy responses to the process – after all, you have many memories in this house – but when it comes to such a serious transaction, emotions should be put aside.
Try to separate yourself from the sentimental aspects, and remind yourself of the end goal — getting a good price for your most significant asset. One way to do this is to put yourself in the position of the buyer who is trying to decide whether or not your property is the perfect place for their family to build their own memories.
In order to provide them with the opportunity to imagine a life in your home, you need to depersonalise your space. Remove family photos, replace them with generic artwork, and store away personal items. When it’s all said and done, your place should feel like a well-decorated hotel. Trust us, this will be very helpful for the success of your sale.
2. Setting an unrealistic listing price
It is understandable that you'll want to sell your home for the highest price possible, especially if you intend to buy a new home too. However, the asking price you set will determine how quickly your home sells, if at all, so you must get it right.
To decide on a price, you need to understand the current market by researching listings online, paying a property valuer, or asking a real estate agent for a current market appraisal (CMA). These take into account the location, size, quality, and demand of your house, ensuring you can make an informed decision.
Once you know the market value of your house, you can be realistic about what will attract buyers. If you ask for too much, chances are your house won’t sell. On the other hand, a lower price tends to generate competing offers. And if you aren’t satisfied, you can always decline a low offer and wait for a better one.
3. Refusing to negotiate
A common issue we’ve heard from homeowners is that their house isn’t selling for the asking price, or that the buyer insists on certain terms. While negotiating can be intimidating, any real estate agent will tell you that it is a normal and unavoidable part of selling a house.
Essentially, you can opt to accept the offer, reject it, or negotiate the terms to suit you better. Don’t be afraid to compromise on some details, because ultimately, it may result in a much more advantageous outcome for both parties. For example, if you can be flexible on the settlement date, buyers might be willing to offer a more competitive price.
4. Listing your home in the off-season
In New Zealand, spring and autumn are the two busiest times for residential house sales. The holiday season from December to January is the slowest time of the year and winter is quieter but still steady.
To get the best offers, you need to consider the type of people who may be interested in your house and when they will be actively looking. It will also depend on whether you are in a position to wait until a time when there is more active interest, or if you need to sell as soon as possible.
5. Using poor listing photos
While it can be tempting to cut corners when selling a home, don’t fall into this trap. In our years of experience, we’ve seen countless houses listed with shoddy photography that fails to attract buyers.
Keep in mind that most buyers these days are looking at houses online before deciding if they are interested in the property. If your listing photos don’t capture their attention, they won’t be likely to view the house, let alone put in an offer.
Photos should be crisp, high quality, and well-lit, showcasing the best attributes of your home. To give the best impression, real estate professionals tend to use a wide-angle lens and many are even adding a video tour or 360-degree view.
6. Hiding major problems
While you don’t have to point out every minor paint scratch, if your house has any notable flaws do not make the mistake of hiding them from prospective buyers. In most cases, buyers will have a thorough inspection done before they are ready to commit. If they find major issues in the report, they will likely lose trust in you which could undermine the entire sale.
For any major problems in your home, you can either fix them proactively or price the home accordingly. If you opt for the latter, you must disclose the problem to allow the buyer a chance to assess their options.
7. Inadequately staging the house
While often overlooked, staging your house can make a massive difference to the success of the sale. Staging can make a house look brand new, as well as highlight the best features, and demonstrate the home’s potential.
When a house is clean, tidy, and minimally decorated it has a big impact on how buyers see your home. Remember — the goal of staging is to make the home appear move-in ready and help buyers visualise themselves living in it.
8. Selling to an unqualified buyer
When someone puts in an offer on your house, it’s easy to get caught up in the excitement without confirming the legal and financial aspects. To avoid getting caught in a complicated situation, you first need to ensure that the buyer has either a pre-approval letter from a mortgage lender or proof of funds (POF).
If you accept an offer that is conditional on mortgage approval, you might find yourself in a difficult lose-lose situation. Before signing anything, discuss it with your real estate agent and legal advisors to ensure you won’t be left high and dry.
9. Not preparing for hidden costs
Before finalising a sale price, you first need to know the various expenses of selling a house. As well as the agent's commission, you will also need to prepare for lawyer’s fees, rates, insurance, and various tax obligations.
The two most common tax requirements for selling houses are the bright line rule and the intention rule. Both of these tax rules apply to people whose main goal of selling is to make a profit. If the house you are selling is not your primary residence or you have a pattern of property investment, you may be liable to pay this tax.
Your real estate agent can help you avoid the fallout of unexpected costs by factoring them into the sale price. Additionally, they will clarify all the tax obligations that apply to your individual circumstances.
10. Selling privately without an agent
We often see homeowners selling their homes privately to avoid paying a real estate agent's commission. We understand that saving money is important, but in reality, trying to sell on your own often ends up costing you more in both money and stress.
A real estate agent works in the vendor's best interest, and if commission-based, they're trying to get top dollar for your property. On top of their industry knowledge, they also will also have a network of active buyers in your local area. This way, you can be confident that you’ll get the best deal, without having to go through the draining process of selling it yourself.
Hopefully this article has given you plenty to think about as well as tips on what not to do when selling your house. If you still have more questions or need tailored advice don't hesitate to reach out to us.
If you’re thinking about putting your house on the market, why not get a free, no-obligation appraisal from our friendly team? We can discuss your options in the current market and the best strategy for selling your home.
