Yahoo Finance 5 Mistakes To Avoid When Selling Your Home, According to Money Expert Rachel Cruze
Selling a home is one of the largest money moves most people make in their whole lives. While it can be a lucrative way to build wealth, the process is fraught with potential pitfalls.
Rachel Cruze, daughter of personal finance guru Dave Ramsey and an author and expert in her own right, said in a recent video on her YouTube channel that there are five common mistakes to avoid to make sure you get the most out of your investment.
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1. Forgetting Seller Costs
Many sellers are caught off-guard by the various costs associated with selling a home. While it’s true that home values typically appreciate 3% to 5% per year, on average, according to Zillow, various expenses can quickly erode these gains.
“People often forget how many random costs can pop up throughout the listing, selling and closing process,” Cruze said.
These costs include:
Agent commissions (typically about 6% of the sale price)
General closing costs like taxes, title transfer fees and attorney fees
Staging
Seller concessions
Moving expenses
Properly budgeting for these expenses is crucial to avoid a financial surprise.
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2. Selling ‘For Sale by Owner’
Selling a home is a complex and legally intensive process. While it might be tempting to save on commission fees by selling the home yourself, this can be a costly mistake.
“According to data from 2023, the typical FSBO home sold for $310,000, compared to $405,000 when sold by an agent,” Cruze said, highlighting the value that a seasoned real estate agent can bring.
Agents also provide technical guidance and help with contract negotiations, and they offer invaluable market insights. Hiring a professional can significantly increase your chances of selling your home quickly, and for a higher price.
3. Pricing Too High
Setting the right price for your home is critical. Overpricing can lead to your home languishing on the market and requiring multiple price reductions, which can ultimately lower its perceived value.
“It is called real estate for a reason; you want to be realistic,” noted Cruze.
To avoid this mistake, ask your agent for a market analysis that shows what similar homes in your area have sold for. This will help you set a fair and accurate price that attracts buyers without undervaluing your property.
4. Failing To Disclose Defects
Transparency is key when selling your home.
“There is no reason to be dishonest about the condition of your home, and any buyer who’s interested is going to pay for a full inspection before they sign on the dotted line,” said Cruze.
Failing to disclose defects and major repairs can lead to legal complications and damage your reputation. Honesty, on the other hand, can build trust with potential buyers and facilitate a smoother transaction.
5. Showing Your Home As-Is
“Staging is a proven way to make your home sell faster and for a higher price,” Cruze said, so skipping it in favor of showing your home in its “usual lived-in condition” is a big mistake.
Staging might involve decluttering, buying or renting furniture and making minor cosmetic improvements like a fresh coat of paint. The goal is to create a neutral, inviting space where potential buyers can envision themselves living.
While staging requires an upfront investment, it can pay off by attracting more buyers and higher offers.
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This article originally appeared on GOBankingRates.com: 5 Mistakes To Avoid When Selling Your Home, According to Money Expert Rachel Cruze
