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The Top 7 Pitfalls to Avoid When Selling Your Home

Putting your home up for sale can help you take a major step forward in your finances, but finding a suitable buyer can be easier said than done. If your home is in a popular area, then you're probably going to have a bit of competition. If the market is in a bit of a lull where you currently live, then that means you'll need to put in a bit of extra work. 

Regardless of what kind of economic conditions you are dealing with, avoiding the mistakes that other people tend to make can get you a better price, lower your closing costs, and save you a whole lot of time. Here is our list of the six most lethal mistakes to avoid when selling your home.

Pitfall #1: Overpricing

It's tempting to try and set a high anchor price when you first put your home on the market, but that strategy can backfire in a hurry. If property prices are booming, then it's pretty easy for one of your neighbors to take a look at the price tag on your property and decide to undercut you. Coming up with a reasonable asking price is more of an art than a science, but it's never been easier to track property values across the country and make an educated guess as to what your ideal buyer will pay. 

If worse comes to worst and the first asking price you choose doesn't get the interest that you thought it would, then you can always come up or come down a little bit. Market conditions are constantly changing, so getting attached to a number will only hurt you in the long run. It's important to learn to negotiate if you want to sell your home at a price you're happy with. 

Pitfall #2: Procrastinating on Maintenance Issues

If your home needs some major renovations, then you're going to have a decision to make. Your first option is to put it up for sale in its current condition and hope somebody who's interested in making the repairs comes along. Your second option, which can be more expensive, is to fix the most pressing issues yourself and try to attract a wider range of prospective buyers. Each option has its pros and cons, but the worst possible decision you can make is to try and lie to any prospective buyer about the real condition of your home. Not only is that unethical, but it's also often illegal. 

If you notice a lot of teardown activity and property development going on in your area, then selling your home as it is might not be the worst idea. Just be diligent about putting a detailed list together with everything a buyer will need to repair.

Pitfall #3: Not Preparing and Casually Selecting an Agent

It looks like real estate agents are a dime a dozen, but the good ones are pretty rare. Don't be shy about conducting due diligence on anybody that you are thinking about hiring to sell your home. Not preparing is a major pitfall when selling your home. Fortunately, a lot of websites out there track the performance of agents over time. These websites can be a great source of honest information from people who have dealt with the professionals in your area before.

Pitfall #4: Ignoring All of the Closing Costs

Even though you're the one selling, you'll still want to come up with a pretty detailed budget of the expenses that you expect to incur in the transaction. To make matters a bit more complicated, some agents are not exactly forthcoming about what kind of fees you can realistically expect to pay them. 

If you have a personal accountant that handles your finances, then ask your accountant to price out the true cost of selling. If you'll be making your budget yourself, then it's always better to overestimate the costs a little bit and be pleasantly surprised at the end. 

Pitfall #5: Leaving Money Left on Your Mortgage

It's true that you don't want to price yourself out of the marketplace by asking for too much, but you also don't want to sell for a price that will leave any remaining principal on your existing mortgage if you have one. Unless you have an extenuating circumstance and you're in a rush to sell at all costs, make sure that your minimum asking price will let you pay everything off immediately. 

Pitfall #6: Trying to Do It All Yourself

Unless you have the time to do all of the showings, take all of the pictures, put up all of the advertisements, and handle every other part of the process, trying to handle a home sale without employing a team of professionals usually isn't a good idea. Be judicious when it comes to selecting your agent and the rest of your team, but don't hesitate to take advantage of their expertise.

Pitfall #7: Being Too Flexible With Your Counter Offers

It's important that you get a good deal on your home, but it's equally important that you come across as serious with your asking price. If you start putting out counter offers too frequently, then you end up undermining your own credibility in the eyes of your buyer. They may sense that they can take advantage of you, and you shouldn't be surprised if the next offer that comes in is much lower than you are expecting. 

Instead of being generous with your counter offers in the hopes of getting a deal done, focus on building a full pipeline of interested prospects. It's much easier to stay firm in your asking price when you know that you have five more prospects coming by for a showing next week.