Everyone wants to get the highest price possible when they sell their home. But not everyone thinks about how to do it.
Landing offers on your home is a bit of a double-edged sword. On one hand, there are lots of steps (such as upgrades and improvements) you can take to increase your property’s market value before listing. On the other, there are plenty of mistakes you can make that will actually have a negative impact on your bottom line.
If you’re thinking about selling your home soon, this list can help you stay clear of potential money-losing pitfalls and get the best price possible.
1. Setting Your Asking Price Too High
Believe it or not, there is such a thing as pricing your home too high – even if you’re anticipating a lot of buyer interest. Choosing a listing price for your home is more of an art than a science. At the end of the day, home buyers are human; and humans make decisions with both reason and emotion. That’s why choosing the right listing price actually requires a little bit of strategy.
When buyers begin their home search, they’ll typically have a price range for homes that they can afford. And, if they’re working with a real estate agent, that agent is only going to show them homes that are within the established budget. So, if you choose to list your home on the high-end, you could miss out on a big chunk of potential buyers. As a result, your home could end up on the market for longer, forcing you to drop your price.
Gearing up for a home sale? I’ve got even more tips for you! Check out these posts from my blog.
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2. Neglected Repairs or Property Damage
This one may seem a bit obvious, but if your home is in rough shape, a lot of buyers will turn the other way. Yes, renovations and repairs are a hassle, and they can even be expensive. However, if you really want to maximize the final sale price of your home, fixing any glaring issues can be worth the time, effort, and investment.
While some buyers are seeking a “fixer-upper”, it’s usually because those homes come at a pretty nice bargain. If you want to sell for the best possible price, this is not the audience you want to appeal to.
Having a turnkey home is arguably more important than ever. Right now, the number of for-sale homes in South Etobicoke and the Greater Toronto Area as a whole is higher than it has been in years. Buyers have a lot of selection to choose from, and chances are they’ll want something that doesn’t need a ton of work.
If you don’t know whether or not your home is in need of some serious repairs or upgrades, ask a real estate agent. Based on their knowledge of other homes in your area, an agent can give you the best possible advice about how to make your home perform best on the market.
Planning a move and want to explore some of South Etobicoke’s many great communities? Check out these unique community resources from my blog.
- New Toronto – Refreshed Energy on Etobicoke’s Lakeshore
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3. Forgetting the Costs of Selling a Home
Before you start thinking about how you’ll use the money from your home sale, don’t forget to plan and budget for the various costs of selling. Every home sale will have some unique considerations, but when it comes to selling expenses, there are some non-negotiables to be aware of. If you forget to budget for these expenses beforehand it can eat away at your final returns from the sale.
The largest of these expenses are agent fees. As a home seller, it will be your responsibility to pay the commissions for both your real estate agent and the buyer’s agent. Every agent charges their own rate, typically about 5% of the final sale price, which is then dived between both agents. This might seem steep, but it’s important to remember the value that your agent brings to the table. Don’t forget – you’ll also pay HST on agent fees.
Up next is legal costs. Real estate lawyers play a big role in every home sale, covering everything from title searches to payouts. You’ll once again be on the hook for covering these fees. Like agents, real estate lawyers have their own personal rates, however, most buyers can anticipate costs in the $1,200 to $1,500 range.
Finally, don’t forget about mortgage penalties. If you plan on breaking your current mortgage and getting a new one for your next home, you can expect to pay a penalty. This cost is usually calculated by your lender when you sell and takes a lot of details into consideration. If you’re looking for a rough estimate of you much this might set you back, try using a mortgage penalty calculator.
Want to make sure your home sale goes off without a hitch? As a proudly-local South Etobicoke agent, I can help! Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
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