The nice thing about the real estate market is that when conditions work in your favour, it seems that you can do no wrong. A messy house, missteps in strategy, underpromotion; none of it mattered when every listing attracted mass interest and multiple offers. That was the reality for many homeowners who decided to sell between 2020 and early 2022.
The worst thing about the real estate market is when conditions fall out of your favour. Then it seems like you can do everything right and still struggle. This describes the feeling that many people had in late 2022 and beyond. So many factors came into play that made both selling and buying more challenging. High interest rates combined with inflation and buyer insecurity to create one of the most unpredictable real estate markets we have ever seen.
You may have to be a little more mindful when selling in the current market. However, with a solid strategy, you still have an excellent chance at a successful sale. It begins by avoiding the most common mistakes when selling a house.
Top Three Mistakes of All Time
There are a few pitfalls you want to avoid if you want to maximize the value of your sale. We have identified the top three mistakes that can get in the way of seeing outstanding results:
- It’s the price.
- It’s the price.
- It’s the price.
Our point here is not to be sarcastic; it’s that we cannot overemphasize how critical it is to set a compelling price point that is in line with what is happening in the market. When selling the home you live in and perhaps have even raised your family in, it can be difficult to remain objective about its monetary value. This creates a lot of confusion over how much you should list your house for.
- If your price is too high, buyers lose interest very quickly. In a challenging market, this can result in your house not selling at all or for much less than you hoped.
- If your price is too low, you shortchange yourself on the value of your home. In addition, you have less purchasing power when reentering the market as a buyer.
- When your price is just right, your listing attracts massive interest while capitalizing on the full value of your home. You have the best chance of maximizing your sales and are more empowered when searching for your new house.
If you want a fast and successful sale, you must base your price on tangible data. Information from a home evaluation you received earlier in the year is likely out of date by now.
A local real estate team can help by performing a CMA (Comparative Market Analysis), which factors in the size, condition, and location of your home. Most importantly, we can pull the latest reports about similar properties that have recently sold in your area to ensure your price point truly reflects your home’s value.
Looking for more resources for selling a home in the modern age? The posts below will give you something to think about:
- Can You Buy or Sell a Home Using an App?
- From Buyers to Sellers: The Intricate Dance of Inflation, Interest Rates, and Real Estate
- Refining Your Offer Strategy When Selling First House
Saving Money in the Wrong Places
Once you have a compelling listing price, the battle is halfway there. You have a firm foundation, but there are other mistakes to avoid. One of the most critical is the mindset that often goes along with selling a house in a less-than-favourable market.
Understandably, many homeowners look for places to cut costs. While there are legitimate ways you can save money, some cost-cutting measures prevent you from earning the maximum return on your sale. For example:
- Seeking out low-commission real estate services or trying to sell without an agent at all
- Selling as-is instead of investing in strategic updates to maximize value
- Avoiding print ads and focusing exclusively on online advertising
- Using smartphone photos instead of investing in professional photography
Let’s take a closer look at these ideas that so often backfire, so you know what to do and what to avoid.
Selling a House Without an Agent
When times get tough, many sellers decide to list FSBO (For Sale By Owner). On paper, it appears to save thousands of dollars because there are no commissions to pay. In reality, the results are disappointing more often than not. For starters, there is a reason the most successful real estate agents work full-time in the industry.
Though anyone can sell a house when buyers are lining up for them, it takes years of experience and intuition to thrive in every market condition. This expertise doesn’t come from casually dipping a toe in the market in the evenings and the occasional weekend.
Secondly, real estate transactions are complex, and all agreements are legally binding. A simple mistake can cause your sale to fall through or even be grounds for a lawsuit.
Most importantly, a skilled and experienced real estate agent will actually save you money while helping you earn more from your sale. They will know what upgrades will get results and what you can leave for the new owner. Best of all, you will almost certainly earn more when working with an agent than by going it alone.
An American study by the National Association of Realtors attests to this. In 2022, they reported that FSBO homes went for a median of $310,000 compared to agent-assisted sales at a median of $405,000.
Keep in mind that even if you sell FSBO, your buyer is probably using an agent. Not only does this mean you have to pay a commission anyway, but you will be up against a seasoned professional who is working on the buyer’s behalf. Having an experienced negotiator to advocate for you is a selling advantage you do not want to be without. You won’t just earn more, but you will have less work and far less stress during the process.
Using Just Any Agent
Everyone knows someone who knows at least one person who is a real estate agent. However, there is a difference between having a license and being on the ground, seeing what is happening in the market every day. So while your cousin’s friend’s coworker may know someone whose sister-in-law has a friend who dabbles in real estate on the side, you may want to consider your options. A little background research will ensure your real estate agent has the skills and experience required to help you get the best results possible. Here are some questions to ask yourself before signing a listing agreement:
- Does your real estate agent have their own website where they can promote your listing? If so, how much traffic do they receive?
- How long have they worked in real estate? And are they full-time agents, or is this a side gig?
- Do they have hyper-focused knowledge of your city and neighbourhood?
- Can they connect you to other professionals you will need throughout your transaction, such as tradespeople, real estate lawyers, or mortgage brokers?
- Are they responsive to your phone calls and emails?
How do you know who to trust when it comes to real estate advice? The posts below will help you separate fact from fiction:
- Tough Questions to Ask Your Realtor® When Selling Your House
- How An Experienced Guelph Real Estate Team Can Help With Your Investments
- How to Ignore Bad Real Estate Advice Without Losing Friends
Timing the Market
During challenging markets, the question on everyone’s mind is, “Should I wait for things to improve?” Given how quickly things can turn around, it is a fair question.
Though it might seem like a good idea, trying to time the market is almost always a mistake. The market might change, but it could be even less in your favour. For example, if you’re waiting for prices to go back up, what happens if they keep falling?
Putting off your decision can also result in missed opportunities, especially if you plan to move for a career or to pursue higher education. And if you’re planning to upgrade, how much longer do you want to live in a house that’s too small while you wait for prices to change?
Even if you manage to time the market perfectly, it might not matter. Imagine you’ve just sold for top dollar in a market where prices suddenly spiked. You couldn’t be more thrilled! Except that now you also have to buy in a market where prices are soaring.
Or let’s say you sell your house during slow times. You may feel disappointed at receiving a price lower than you’d hoped. But those tears will dry quickly once you reenter the market where options are available and housing values have dropped.
Every market scenario will have its ups and downs. That’s why it makes sense to act when the time is right for you rather than waiting for outside factors to align.
If you want to get the absolute best value in any market, the following resources can help:
- Home Inspections: Friend or Foe When Selling Your Home?
- 5 Quick Updates That Add Resale Value
- Best Practices for Selling a Home in Today’s Market
A One-Size-Fits-All Approach
Treating every transaction as the same is another mistake to avoid when selling. The real estate market doesn’t just move quickly; it’s also highly nuanced. The situation might be different from one neighbourhood to another.
Houses can sell more quickly on one side of the street than the other. This is why real estate agents often talk about niche neighbourhoods or micro-markets. To a large extent, it doesn’t matter what the market is doing on a large scale.
What matters is what is happening right where you are. There are also different types of transactions and various reasons for selling. For example:
- You are selling your primary residence. Once your house sells, you plan to upsize or downsize.
- You have already purchased a new home, and you are counting on fast results when selling your existing property.
- You are selling an investment property rather than your primary residence.
In addition to the numerous selling scenarios you may find yourself in, there are also individual timelines. If you need to sell quickly, you may need a different approach than someone who can afford to take their time. To top it all off, some property types sell faster than others depending on the market.
Now, you can see why a blanket strategy is never an optimal solution when selling your home. A real estate team that provides an individual, customized approach will help you enjoy the best possible results and empower you to move on to your next chapter in life.
Are you ready to begin the selling process? We are here to help you stay on track from start to finish. Reach out today to 519-826-7109 or info@gowylde.ca for more information.
