Do you know that over 5 million homes are sold each year? Selling your home is a huge milestone as you start another chapter of life. It is typically not an easy process as every home has its own sentimental value to it. Hence, it can often be complicated, overwhelming, and emotionally exhausting, especially if you are unprepared for it. Whether you are planning to move into a bigger and better house or just want to make the most out of your real estate investment, it is important to avoid falling into common pitfalls for a quick and smooth transaction.
Here are 6 of the most common mistakes that you should look out for.
1. Not Pricing It Right
One of the most important factors in the success of selling your home is its price. Selling it too low will be a complete waste of investment while selling it too high would make it a difficult sell in the real estate market. When it comes to pricing, you should set a realistic and reasonable price based on the fair market value. Thorough research on homes with similar size and features in the market would help you come up with much better pricing. This is often referred to as comparable sales by real estate agents when coming up with a recommended listing price. Another option is hiring an appraiser to determine your home’s value, especially if you are planning to sell it in a highly competitive market.
2. Not Complying with Tax Requirements
When selling your house, you should always check your local government’s legal requirements and tax implications as this varies per state. If you are selling an inherited property in California, for instance, you do not have to pay for estate taxes or inheritance taxes. However, you may be required to pay off capital gains and other taxes. You can read the full post here to know more about other tax implications in California. Remember, non-compliance with your state legal requirements could put you in trouble and can even result in a tax lien, which is a legal claim the government makes against your property when you fail to settle your tax debt.
3. Not Screening Your Buyers
Another pitfall to avoid is selling your property to unqualified buyers. Just like renting, wherein you screen your potential tenants; you also need to screen the potential new owner of your home. Most importantly, you should look out for the buyer’s capacity to actually finance or purchase your property. A qualified buyer should either present proof of funds or a pre-approved letter from a mortgage lender.
4. Not Taking High-Quality Photos
Photos are what attracts your potential buyer’s attention on listing websites and directories. To leave a great first impression on your potential buyers, you must present them with winning photos. If you fail to provide high-quality photos and instead settle for unflattering shots, then your house listing will most likely get ignored. If it fits your budget, you may hire a professional photographer to take beautiful photos of your home. Make sure to check your photographer’s portfolio first and find feedback from previous clients to ensure that you will be getting your money’s worth.
5. Not Preparing Your Property for Home Viewings
Sure, pictures can entice a lot of potential buyers, but what will seal the deal is your home’s condition in real life. Besides, nobody purchases a house from photos alone. When selling your property, you also have to make sure that your home is clean and presentable. A poorly managed and unstaged home will most likely drive buyers away from your property. To impress your buyers and increase your home’s value, you need to stage your home properly. Check if there is anything that needs to be repaired, clean, or thrown out. This will give an impression to your potential buyers that your home is well-maintained and will not incur more cost for repair or maintenance in the near future.
6. Not Picking the Best Time to Sell Your Property
When selling your property, you must research the best season to put it up for sale. Weather plays a huge role in the most appropriate timing for selling your home. Typically, it is best to avoid selling it during winter, especially during the holidays.
The process of selling your home requires thorough planning and preparation. There are several factors to be considered to ensure a successful sale. In essence, you have to know how to market your home effectively so beforehand, you have to do your research on pricing, legal requirements, and optimal selling dates.