What Not to Do When Selling Your Home
If you’re in the process of selling your home you may have an extensive to-do list ready to go, but have you considered what not to do? To help you avoid the pitfalls and delays that can occur during property transactions, we’ve come up with a list of what not to do when selling your home.
First-time property sellers might not realize just how much work goes into selling a home. Your to-do list may seem endless, full of things such as preparing the home, making repairs, finding an agent, finding a buyer, engaging a property conveyancer and planning for your next home. Here are some common mistakes to avoid making when you’re going through the process of selling your home.
Don’t underestimate the cost of selling a property
The simple truth is that you have to spend money to sell your home. If you don’t budget for these costs, you could end up in a worse financial position than you were in before you decided to sell. To budget carefully, you will need to factor in such costs as:
- Real estate agent’s fees;
- Marketing costs;
- Closing costs;
- The cost of any necessary repairs; and
- Costs associated with moving out.
You should expect the cost of selling your home to be about 10% of the final sale price.
While you will likely come out on top, especially if you have owned your home for more than three years, you need to consider your circumstances. For example, if you can’t sell your current home before moving into your new one, you may have to rent for a while or pay for both mortgages. Will you be able to afford it?
Don’t set an unrealistic price
Even though Australia is currently experiencing a “buyers’ market”, that doesn’t mean you can set the price for your property as high as you like. Government regulations only allow you to set the price at what it can reasonably be valued at; whether or not you get lucky at auction is out of your control. Moderate your expectations by looking at similar homes in your area to see what buyers are generally prepared to pay for a property.
Don’t dismiss lower offers
If you get a high offer on your home, don’t let your excitement cloud your judgement. The offer may come with stipulations about financing approval and settlement periods. If you don’t read through the offer carefully, the sale may fall through, and you’ll be left back at the start, perhaps even liable to pay more advertising costs.
It’s important to be aware of these stipulations because they can impact the timeline, complexity and certainty of the sale. For example, you may receive a very high offer, but the sale will only go through provided the buyer can sell their previous house in time. With the right wording in the contract, they would be able to pull out of the sale if they don’t sell their home by the agreed-upon date with no financial consequences. You need to contact property conveyancing Brisbane and get expert advice.
The high offer may also be subject to any repairs they expect you to make before the sale, which you would be expected to pay for. You may find another buyer who has made a lower offer but is happy to take on the repair work themselves.
To make the best decision for you and your family, have a conveyancer look over the offer to advise you exactly what their offer entails. That way, you won’t have any surprises.
Avoid making costly renovations
While you might feel it’s appropriate to spruce up your home to make it auction ready, you want to avoid over capitalizing. If the renovations are purely cosmetic, a simple coat of white paint can go a long way.
You should, however, address any major repairs that your home needs. A long list of maintenance issues can turn buyers off and potentially decrease the value of your home. Your focus should be on repairing any concerns likely to cause health and safety issues before tackling the less problematic issues.
Alternatively, you can choose to sell your home as it is, but you need to be clear about any repairs that need doing before you put your home on the market. If buyers conduct building inspections and find problems, it will look as though you are trying to deceive buyers, which can be off-putting. If your home needs repairs, and you are not prepared to do them before the sale, be honest about it and lower your price expectations accordingly.
Don’t hire the first agent that you meet with
If you choose to work with a real estate agent, make sure you conduct some research before making your final decision of who to hire. Every agent has a different sale method, commission structure and list of inclusions with their fees. You may find that one agent charges a lower commission percentage, but the marketing costs are not included. Another may expect a higher percentage of the sale but includes a wide range of services within that fee. You will need to do some research, perhaps read reviews from past clients, to decide which agent is the best for you. You should also check their licensing and credentials and ensure they have plenty of experience selling in your particular area and price point.
You may also ask potential agents:
- How they plan to market your home;
- Whether they will require you to sign a contract with them;
- About their negotiation style; and
- How often and in what circumstances they plan to communicate with you.
Don’t limit showings
Buyers are unlikely to make an offer on a home they haven’t had the chance to view so, during the sale process, you will need to cooperate with your agent and be flexible about having potential buyers come through. That means keeping your home neat and tidy during the process, so it is ready to be viewed at a moment’s notice.
If your house isn’t easy to show, it won’t be easy to sell. While interruptions, rigorous cleaning and added weekend planning may feel inconvenient, remember the end goal – a good return on your investment that can support your next move.
Don’t forget to consider your broader financial situation
Surprisingly, many sellers don’t have a clear picture of their financial situation before selling. If you are one of these sellers, you could be in for a painful surprise.
Before you decide to sell, assess your debts, income, and any upcoming expenses during your move. This, along with your target sale price and the sale costs, will give you an idea of how much money you could walk away with after the sale. It’s also a good idea to contact your lender to determine exactly how much you owe on your current home.
Selling your home is a life-changing decision, but it doesn’t have to be overly stressful and frustrating. If you move into the process with a clear list of goals and expectations, steering clear of the mistake listed above, you should be able to get through the process without losing all your hair.
When you begin the process of selling your home, contact a reliable local property conveyancer to start drawing up the sale documents straight away. The faster your contract is ready, the faster you can publicly list your home and get the ball rolling. Click here for more information about Jim’s Property Conveyancing in Melbourne, or here for information about Jim’s Property Conveyancing in Brisbane. Or for expert advice on property conveyancing services in Australia, don’t hesitate to contact our friendly and experienced staff on 13 15 46. You need to contact property conveyancing Melbourne and get expert advice.