The 3 Biggest Mistakes Sellers Are Making Right Now

The 3 Biggest Mistakes Sellers Are Making Right Now

To successfully sell your house, adopting appropriate strategies and realistic expectations is essential. However, some sellers are not aligning with the current market conditions. They overlook the increased availability of homes and the heightened selectiveness of buyers in terms of budget, leading to significant selling mistakes.

Here’s a brief outline of the three most frequent errors made by sellers, and how collaborating with an expert real estate agent can help you avoid each one of them.

1. Pricing the Home Too High

According to a survey conducted by John Burns Real Estate Consulting (JBREC) and Keeping Current Matters (KCM), real estate agents unanimously identify setting the correct price for a house as the primary challenge sellers are facing currently (refer to the graph below for details):

More often than not, homeowners tend to set their listing prices too high. Without a clear understanding of the current local market trends, there's a temptation to start with a high asking price to allow room for negotiation. However, this strategy can backfire.

Given today's economic conditions, where buyers are cautious due to higher mortgage rates and tight budgets, an overly high price can deter potential buyers. If your home doesn't attract any interest, it won't sell, leading many sellers to eventually reduce their prices.

To avoid such pitfalls, it's crucial to rely on your real estate agent's expertise right from the start. A knowledgeable agent can inform you about recent sales in your area, such as how much your neighbor's house sold for, and how these transactions affect the market value of your home.

2. Skipping Repairs

Another frequent error is neglecting minor repairs in your home. Issues like a leaky faucet or a squeaky door might seem trivial to you, but to potential buyers, these small maintenance problems can raise concerns. Buyers might view these minor issues as indicators of larger, underlying problems, which could lead to lower offers or requests for concessions during negotiations. As Investopedia notes:

“Sellers who do not clean and stage their homes throw money down the drain. . . Failing to do these things can reduce your sales price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a broken doorknob or dripping faucet, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either.”

The solution? Work with your agent to prioritize anything you’ll need to tackle before the photographer comes in. These minor upgrades can pay off big when it’s time to sell.

3. Refusing To Negotiate

Given the high home prices and mortgage rates today, buyers, feeling the affordability squeeze, might present offers lower than you expect. It’s important not to take this personally. Instead, keep your eyes on the ultimate goal: selling your home. Your agent is there to help you navigate negotiations with confidence, ensuring that emotions don't impact your decision-making.

Moreover, with an increased number of homes available, buyers have more choices and, consequently, greater bargaining power. They might request repairs, help with closing costs, or other concessions. Be ready to engage in these discussions. Rely on your agent’s expertise to manage these negotiations effectively. Sometimes, agreeing to minor concessions can help close the deal while still protecting your financial interests. As U.S. News Real Estate points out:

“If you’ve received an offer for your house that isn’t quite what you’d hoped it would be, expect to negotiate . . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits . . . consider offering to cover some of the buyer’s closing costs or agree to a credit for a minor repair the inspector found.”

The Biggest Mistake of All? Not Using a Real Estate Agent

Notice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell your house without an agent’s help the biggest mistake of all.

Bottom Line

Avoid these common selling mistakes by beginning with a solid plan and choosing the right agent. Let’s connect so you can navigate the selling process smoothly and avoid falling into these pitfalls.