We may be on the path to a new housing boom in the U.S. but even though home equity and home values may be rebounding there are several critical mistakes those selling a home should avoid…
Some pockets of the country may already be entering sellers’ market territory, at least when it comes to selling discounted properties, but overconfidence a the false sense of security an improving market can create can trip up home sellers.
So what pitfalls should those selling a home this year watch out for?
1. Pricing
Pricing is one of the most common ways homeowners sabotage their efforts in selling a home. Do not underestimate this. Pricing too high can prevent a home listing from even getting in front of the right buyers at all. On the other hand while some have begun trying to bait buyers into bidding wars with low teaser pricing, this can cause legal issues too.
2. Not Maximizing the Value
For those who aren’t in a rush to sell it’s always worth looking at what can be done to maximize the value of a home to obtain the highest possible price and net proceeds. This can range from simply sprucing up the curb appeal to staging to the way it is marketed.
3. Over Improving
In the reverse of the above, doing too much to a home or spending on the wrong items can often result in not just losing the money put in but in the worst cases, actually decreasing the value of a property. This is especially true for those already in a bind. Don’t put more money into a deadweight property you want rid of. Perhaps the best thing to do is sell for cash fast.
4. Waiting too Long to Sell
The U.S. housing market as a whole has been improving very well over the last year. However, that doesn’t necessarily mean homeowners have more to gain by dragging their feet in selling a home. Some pockets of the country are still battling foreclosures which could cause some temporary dips in appraised values in a few select locations. Plus, holding costs, maintenance and risk of liability or damage while holding onto a home longer could seriously outweigh any short term net gains in home value
