For sellers looking to get the maximum value of their home, avoiding mistakes is essential. In real estate, you can do all kinds of things to avoid losing money. But you need to know these things to avoid them in the future. If you’ve already sold a house but feel underwhelmed by your ROI, then consider this article as your guide for future sales. So, let’s start.
Not Going With An Agent
Make no mistake about it; not going with an agent is definitely losing you money. The real estate industry is a dog-eat-dog world. It’s highly competitive where everyone looks to get the better deal. By going FSBO, you are maximizing your chances of losing money. How? Well, it’s all because you lack an experienced hand by your side that knows the ins and outs of the industry.
Real estate agents are professionals that take charge of the selling process. If you feel that you don’t need one, then be wary of the opposing agent. Since most buyers go with agents, they will relish the idea of going against an FSBO seller. In some cases, a buyer with an agent will avoid an FSBO seller as they don’t want to get involved with a seller that cannot handle legal responsibilities.
Selling and buying property isn’t easy. That’s why only 5% of buyers choose to buy directly from an FSBO seller.
Not Pricing Your House Right
One of the easiest ways to lose money is to let your property sit on the market. Everyone knows that a house that doesn’t sell costs a lot of money to maintain. More so, the longer the house doesn’t sell, the more buyers see it in a negative light. But what are the reasons your house isn’t selling? Home Light’s real estate insights report put overpricing as the biggest challenge sellers faced in the two previous years. And when going FSBO, it’s easy to overprice your property.
This is why it’s even more important to go with a real estate agent. An agent will not only do their research and compare prices, but they will recommend ways to accurately price it. If, however, you do decide to go FSBO, there are two ways to get a glimpse of what price range to look at.
The first is to ask your bank for an accurate price. The second is to look for listings in-around your neighborhood and attend open houses. By doing the latter, you can compare the house with your property and determine whether you should go slightly above or below their asking price.
Not Making Your House Ready To Sell
Let’s say you’ve done all the research and decide to go FSBO. Your work isn’t done yet. FSBO sellers face numerous challenges when trying to sell their houses without an agent. As we’ve mentioned numerous times, an agent will recommend all the necessary steps to get the desired price. When going FSBO, you don’t have this person by your side. So you’ll either have to read plenty on the topic and do tons of research or make costly mistakes.
Since it works in your best interest to try and get the most money for your house, one thing that everyone recommends doing is getting the house ready for sale. This is a very broad term that includes a few things. It means fixing underlying issues to the interior and exterior of your house, and home staging. Home staging is the practice of presenting your house to buyers in the best possible light. There are tons of benefits to home staging, hence why home staging is so important. Some of the benefits are that it allows buyers to visualize the space as their own. This has a positive effect on buyers and makes them more eager to submit a bid.
The goal of home staging is to sell the house much faster and for the highest possible value.
Not Understanding How Fees Work
As one would imagine, selling a house involves signing tons of paperwork. But in between all these pages, there are all kinds of hidden fees. You will pay some of these fees, and the buyer will as well. But since you’re going without an agent, these fees will remain hidden if you don’t have previous knowledge of them. Since the process is long and complex, these fees are thrown across numerous parts. But what you also don’t know is that fees are negotiable.
For example, did you know that you can compensate for closing costs? If the buyer asks you to cover the 3% closing cost, you can negotiate and ask to be compensated by increasing the price of the house for an equal amount. These fees and failure to identify and negotiate them are a big reason why FSBO sellers are losing money.