So, you’re selling your first home. First of all, congratulations! That’s a big step, and I’m sure you’re excited to move on to bigger and better things.
But before you put your “For Sale” sign in the yard, there are a few things you should know. Chances are, you’re not a real estate expert, which could make you susceptible to some common selling mistakes.
In this article, I’m sharing with you 5 mistakes you’ll want to avoid when selling your first home. Let’s start with the most obvious one.
1. You don’t have any money saved for your next home.
Usually when people are selling their first home, it’s because they want to move to a bigger place. It could be because the family has outgrown the initial home, or an increase in salary finally makes a nicer home possible.
Whatever the reason, you can rest assured that a bigger home will almost always cost more than the house you’re selling. And because of that, it’s wise to have some money set aside.
You might be thinking, “But can’t I just put the money I make off my first home toward a down payment on the new one?”
Yes, but you’ll likely be in the process of buying your new home while still trying to sell your old one. You can’t always guarantee that your first home will sell before you have to pay a down payment on your new house.
The last reason you’ll want some money in your savings account is that mortgage companies often look at how much money you have saved before approving a loan. The more savings, the better.
2. You expect a smooth ride.
If you’re selling your first house, you might have an idealistic view of how the process will go.
I don’t mean to sound gloomy, but selling your home can come with a lot of twists and turns. It’s not always smooth sailing.
For example, your home inspection may reveal something you have to pay to fix before the buyer can close. Or a buyer may unexpectedly back out of a deal that seemed solid.
There are plenty of ways things can go sideways, and when they do, it’s easy to feel discouraged and overwhelmed. But thankfully, when you hire a licensed professional, they can guide you step by step through the process—even when it’s confusing.
At Jessica Foote & Associates, we’re proud to serve our clients and make the process of selling their first home as simple as possible!
3. You underestimate the cost of selling your first home.
This is yet another reason to hire a real estate agent to help you. Many sellers don’t realize all the costs that are involved.
On top of the 5-6% commission paid to an agent, you also have potential repairs and closing costs—and sometimes buyers refuse to pay as much of those costs as you would like them to.
OpenDoor estimates that about 10% of the sale price will go into the costs I just mentioned. But TeamFoote loves to bring that percentage down for our clients—and our clients love it, too!
4. You set the asking price too low or too high.
If you’re not an expert, it can be difficult to know what price to ask for your home. On the one hand, you might be tempted to set the price too high because of the house’s sentimental value to you or because you really need the money.
But too high of a price can scare away potential buyers and keep your house on the market far longer than you want it to be.
On the other hand, if you set the price too low, you’ll miss out on money you could put in your bank account or toward your next home.
Once again, professionals like us at Jessica Foote & Associates can help you navigate this tricky process. We regularly help our clients come up with an asking price that matches the market and gives them the best advantage.
5. You don’t hire a real estate agent to help you.
You know I had to include this in my list! Of course, we at Jessica Foote & Associates believe sellers can get the most out of their selling experience when they hire a real estate agent.
Not only can we help you with what I mentioned above—navigate unexpected challenges, save money, and set a fair asking price—but our expertise also helps you make more money off your home.
We stay up to date on all the housing trends so that we can sell your home at a higher price. When we work with high-quality stagers and interior decorators, buyers are willing to pay more as they visualize themselves living in the house.
And not only that, but we also help make sense of the many complicated legal loopholes within the housing industry. As professionals, know what to expect, and we can help you avoid the hazards.
Contact Us if You’re Selling Your First Home!
If you’re looking to sell your first home around San Diego, Poway or Temecula Valley, click here to contact us! We’d be happy to help make this process as smooth and lucrative as possible for you.
You can also schedule a time to meet with us in person. Click here to get started!