Mistakes to Avoid When Selling Your Home
Selling a house is not an easy process, so why not understand what factors could help you sell your house faster with the right price?
So you are about to sell your home, and whether you are a first-time seller or you have been through the process before, selling a home is no easy process in terms of logistics, documentation, preparations, the emotional connection, and everything else that comes with your house. But there are—of course—some things you should be aware of before you decide to sell your home.
The process of selling a home itself is time-consuming, challenging, and emotionally draining, so imagine the consequences of the mistakes that come along with it. It will cost you more time, money, and energy. So why not understand this little know-how you can avoid these stumbling blocks? Guarantee, it will make your home selling process easier for you!
Pricing Your House Too High
You might be a little bit unsure about determining the right price for your home. But one mistake to avoid is overpricing your home. Because the fact is, buyers, do not typically make offers on overpriced homes.
So, before you find your home staying in the market that is moving but have not had any takers yet, then maybe you may want to research how much your home is worth based on homes with similar sizes and features that have sold near you and the average house price in your area.
Not Accounting for the Home Selling Expenses
Selling a home may sound like something that is incredibly profit-making. Well, it is, but only if you know how to do it right.
There are lists that must be taken care of in the process of selling a house. Starting from documents, negotiations, and unexpected costs. But another thing that you have to avoid is underestimating the cost of selling your home. What is worse than having an inflated price which eventually costs you extra money just because you are not well prepared?
Then, what are the extra costs that you must prepare when selling a home? For when you need to sell your home with help from an agent, listing your home can come with agent commission. There will also be the costs from staging a show house to closing costs. Other than that, there are some mandatory fees that you also need to be anticipated. Including taxes and notary fees.
Income tax or pajak penghasilan (Pph)
This income tax is imposed on the person selling the house. Usually, 2.5% – 5% of the selling price of the house is charged. This tax will be deemed to have been paid if the taxpayer has deducted, collected or paid it himself, in this case, the seller of the house.
When you are selling a home, you need the services of a notary or Pejabat Pembuat Akta Tanah (PPAT) who is domiciled in the area of the house being sold. Notaries have a standard fee set by the government.
Although notary fees are the responsibility of the person selling a home, you can negotiate a share of responsibility with the buyer to reduce the burden of administrative cost that you have to pay—only if they agree.
Land and building tax
Property tax or Pajak Bumi dan Bangunan is usually paid within one year. As someone who is selling a home, it is your duty to pay off the tax before the house is sold to the buyer.
Failing to Repair and Making Expensive Renovations
It is always a good move to make the effort to help your house look its best before listing it to the market. Because when buyers are faced with a long list of maintenance issues, there will be a higher chance to turn buyers off and potentially peter out the price and value of your house.
On the other hand, renovations can be costly. If you are considering making renovations to increase your home’s value, be sure to carefully consider the priorities. Renovations do not necessarily be the foremost thing you should do before selling your home. Some buyers prefer to personalize the space and do the renovation themselves. Instead, it is better to focus on the most important repairs, such as items that are broken, in poor condition, or can affect the safety, structure, or functionality of the home.
Insist to the Highest Offer
Although a high offer seems exciting. But, the highest offer is not always the best offer. Be open to negotiation. A house that has been in the market for a long time will have an effect on reducing the selling price of the house.
Sometimes, people who bid their highest offer to your property have certain conditions for the sale to close. You may have to protect the buyer’s interests like financing contingencies or other repairs that you might have to cover. On the contrary, people who offer a slightly lower price are willing to be more flexible without contingencies.
Be fully aware of these contingencies, it may affect the timeline of your home selling which can lead to decreasing the value and price of your home if they—in all of a sudden—retracted their offer.
Selling the Home Yourself
Unless you have unlimited free time to do all the marketing process in selling your home or understanding the real estate market, you may need a helping hand from an agent. Yes, it will cost you more money on the commission costs. But you will get help from a real estate agent who has the knowledge, experience, and time needed to get your home sold.
Another option is to list your home. Listing your home in a trusted real estate listing platform gives buyers information about houses for sale. Lokalist is the platform that will help you meet the people who are looking for a home and are ready to make their buy, your property will receive a high exposure, and there will be no agent or other third-party coming in between, so buyers can directly contact you as the seller.
Selling a house is not an easy process, it requires a fair amount of hard work into getting a home on the market and eventually sold. But at the end of the day, we all want our home selling process to be smooth and easy, so it is best and wise to be prepared with some checklist to make the selling process easier for you and to avoid mistakes that others have.