A hot real estate market means it’s a great time to sell.
But these home-selling mistakes could cost you.
Yep, the Dallas and Frisco real estate market is still smoking hot, no doubt about it. In fact, home prices increased in the area by 9.5% according to Core Logic, the second highest gain in the US. But even in this real estate climate, home sellers can lose big money. Here’s our list of top 7 costly home-selling mistakes to avoid.
Home-Selling Mistake #1: Not Listening to the Experts
When it’s time to sell your home, take the advice of the experts involved. Your real estate agent and the professionals he or she enlists in the sale of your home are working on your behalf. They are experienced, trained experts who can help you get the top value for your home.
For example, many experienced real estate agents often enlist the help of trained stagers when preparing your home for listing. Stagers are experts at ‘staging’ your home so it’s appealing in photographs and to prospective buyers viewing the property.
Don’t be offended if a stager wants to move furniture around or declutter personal items. This isn’t a reflection on your unique design style or a slam against your wedding photos on the mantle. It’s simply a tool to help make your home more appealing to prospective buyers. Stagers arrange rooms for the camera, to make sure your photos show your home at its absolute best. This can also draw the eye away from needed upgrades and highlight the good features of your home.
Home-Selling Mistake #2: Overpricing Your Home
Many sellers think that a hot real estate market means they can overprice their listing and ‘see what happens’. This pricing strategy can actually work against you, even in a hot market.
Overpricing a home will lead to fewer potential buyers, longer listing times, and potentially multiple price changes. These factors lead to lost money and a frustrating experience. Your experienced real estate agent knows the market and will help you set a listing price that is competitive. When a home is priced competitively, 5 out of 10 people viewing it could be interested in it versus when a home is overpriced. Additionally, your home’s overpriced listing could make another, less expensive home, appear to be a better deal.
Home-Selling Mistake #3: Getting Emotional
For most of us, our home is one of our most prized possessions. We worked hard to make it perfect and have built lifetime memories. Selling your home can get emotional, but that emotion can also cost you money.
During the process, try to remain calm and trust your realtor is working in your best interest. The selling process can be stressful but your real estate agent is there every step of the way. They can help prepare you for next steps, negotiate on your behalf, and advise you on necessary actions.
Don’t be offended if you get a lowball offer from a prospective buyer. It’s not personal, they are just trying to purchase a home they want at the lowest price. This is only the beginning of the negotiation process which your realtor is perfectly prepared for.
Do you worry if a prospective buyer makes multiple trips viewing the home, asks a lot of questions, or spends extra time taking measurements? Stay calm. This doesn’t mean they are backing out—it’s a sign they are very interested. Hint: this is also the reason most experienced real estate agents carry a tape measure with them always.
Home-Selling Mistake #4: Wasting Money on Unnecessary Items
So, you decided to sell your home and want to get a jump on repairs and modifications to help get the highest sale price, right? Slow your roll! Many home sellers are too quick to replace carpet or make major repairs even before they enlist the help of a professional real estate agent.
This type-A mentality works great for your career but may cost you money when selling your home. Many times, the amount of money spent on major renovations or modifications won’t be recouped in a higher sales price. Your real estate agent can help you decide if these high-ticket projects like carpet replacement, painting or remodeling will pay off for you, or if touch-up work would be better.
Home-Selling Mistake #5: Not Hiring a Real Estate Agent
And speaking of Type-A personalities and DIY’ers—trying to save money by selling your own home could be one of the costliest mistakes. Per realtor.com, homes for sale by owner (FSBO) statistically sell for 25% less than those sold by agents.
Also, homes listed FSBO generally attract lower bids than those listed by agents. Many times, buyers assume the seller will take less because there’s no agent commission. At best, you are only saving the selling commission as the buyer’s agent commission will still apply.
Another consideration that impacts the selling price is the marketing of the home. A big part of the commission paid to your real estate agent actually goes to marketing your home. Cutting out the agent means you lose this valuable benefit and will result in a longer listing time and lower overall price. See below for more information on how important marketing is during the real estate process.
And finally, today’s real estate market is complicated with ever-changing disclosure laws and legal pitfalls. Your real estate agent is a licensed professional who can guide you through the process to reduce risks, unpleasant surprises, and reduce time to sell.
Home-Selling Mistake #6: Skimping on Marketing Because it’s a ‘Hot Market’
Even in a hot market, the marketing component of the home selling process is a key factor in how much money you walk away with after the sale.
Today, 77% of home buyers find their home through online searches and through realtor listings. An experienced real estate agent knows exactly where, when, and how to market your property so that it is seen by the right buyers at the right time. Brochures, ads, and open houses are just the beginning and a costly piece of the marketing process. Photography, video, and staging are also huge components to making your home appealing.
Professional marketing means greater exposure to prospective buyers. And, the more people who see your home, the higher the chances of quickly selling at a higher price.
Home Selling Mistake #7: Not Disclosing Significant Problems
It’s easy to forget some things. Besides, that water heater leak 3 years ago has been fixed—no need to disclose that right? Wrong! Not disclosing all significant repairs or problems can cost you money. Undisclosed items will come up during the buyer’s inspections and through ‘Clue’ reports. Not disclosing these items ahead of time weakens the seller’s position and negotiation strategy during the selling process.
No matter how long you’ve lived in the home, be careful to include everything on the disclosure to avoid delays and back-outs later. Discuss any concerns with your real estate agent before the disclosure so they can expertly guide you on proactive steps.
It is a great time to sell your home in the Frisco, Plano, McKinney, Dallas area. If you are considering selling your home, keep these tips in mind to help you get the highest return. For more information on buying or selling a home, contact the Judi Wright Team at 214-597-2985.
About The Judi Wright Team
Judi Wright/The Judi Wright Team is a real estate group specializing in the suburbs of Frisco, Plano, and surrounding areas. Named the “Best Realtor in Dallas,” by D Magazine ten times and a Five Star Realtor with Texas Monthly, Judi is also Company-Wide Top performer with Ebby Halliday and the #1 Individual Agent for Ebby Halliday Frisco.