A great real estate agent can guide you on what to do and what not to do in the course of buying or selling property. But no agent can prevent the mistakes you’ve already made.
So if you’re thinking about selling your property, but haven’t yet contacted an agent, let us give you a few examples of errors that millions of sellers lose money committing, when it comes to selling real estate.
Study these four real estate mistakes you should be sure to avoid when you’re selling.
1. Spending a ton of money on cosmetic repairs outside the bathrooms, kitchen, or landscaping
What more need be said?
Additions will often appear to make sense on paper, because further square footage should add value, right? But honestly, the cost (and emotional stress) of such a major construction project rarely gets covered by an equivalent hike in the real estate sales price.
In fact, additions are one of the six worst home fixes you can choose to make before selling.
3. Not pricing realistically
Forget what you paid for the house. That’s no longer relevant. The house is worth either less or more than what you paid for it, and if you’re one of the millions of homeowners who are currently under water, it’s probably worth less.
But here’s why you should price your home realistically, and take a loss if you have to: opportunity cost. The opportunity cost of money tied up in your property is preventing you from getting into the property you want, especially while rates are cheap and other people are selling at losses in order to downsize or upgrade.
You might save $10,000 on a property by being willing to take a $5,000 loss on the house you’re selling.
4. Not shopping real estate agents
Don’t just choose the first agent you hear about, and you certainly shouldn’t use the “friend of a cousin” approach. You’re looking for a full-time, professional, local expert in your community.
The difference between the best agent and the worst goes far beyond dollars and cents, because the best agents also make the transaction process a smooth and enjoyable one. The worst agents … well, you don’t want to know!