If you sold your home in the past year or two, you probably made a killing. Yet first-time home sellers aren’t happy with their results. You’ve heard of “buyer’s remorse.” Now it seems, first-time home sellers have remorse about how their transaction went down. We’ll talk about it on this Faith and Finance.
If you sold your home in the past year or two, you probably made a killing. Yet first-time home sellers aren’t happy with their results. You’ve heard of “buyer’s remorse.” Now it seems, first-time home sellers have remorse about how their transaction went down. We’ll talk about it on this Faith and Finance.
Here are some interesting results from a new survey by Zillow. If you can believe it, 84% of first-time home sellers said they would like a “do-over” on the timing, pricing, or marketing of their sales.
A full 90%of the 2,000 first-time home sellers surveyed think they could have sold for more money if they’d done things differently. The top four regrets were not pricing the home competitively, not paying attention to curb appeal, trying to time the market, and not doing needed repairs.
Let’s go over these, in case you’re planning to put your home on the market this spring, whether you’re a first-time home seller or not.
FIRST-TIME HOME SELLER REGRETS
1. Not pricing competitively. You’d think that most sellers would regret pricing their house too low, but pricing too high always causes problems. According to Zillow, a house that’s listed at a competitive price will usually sell within 31 days.
If your list price is too high, the house will linger on the market for a median of 73 days. That’ll cost you money if you then have to buy a new house that’s increased in value.
You could also lose out on getting your dream house if you’ve already picked one out.
To avoid this, you have to check out what comparable homes have sold for in the last six months in your neighborhood, and your selling agent will usually do that for you.
It’s a good idea to listen to your agent’s advice on pricing your home, even if you think it’s worth more.
2. Not paying attention to curb appeal. They say you rarely get a second chance to make a first impression. You’re likely to get a positive return on money spent to spruce up the front of the house.
Invest in things like landscaping, including new flowers and shrubs, or trimming shrubs below the bottom of windows. You want your house to be seen, not hidden behind overgrown greenery. A fresh coat of paint, at least to the front of the house, will probably cost more, but again, it’ll make a great first impression.
And with so many buyers now looking at homes online, curb appeal extends inside the house, as well. If your agent is taking pictures for an online listing, and most do now, you want the house to look clean, tidy, and uncluttered.
Zillow says that listings on their site get more saves and views if they have virtual, three-dimensional home tours with interactive floor plans. Some sellers are now investing in professional and even drone photography to show off their homes.
That means that staging is more important than ever, and less is more when it comes to staging furniture. Rooms should only have appropriate items. For example, a bedroom would have a bed, a dresser, small end tables, and maybe a trunk or seat at the foot of the bed. The less furniture, the larger the rooms appear.
3. Trying to time the market. It doesn’t work with stocks, and apparently not with houses either. About a quarter of those surveyed said they mistimed the market. Many sold their home and then rented for six months or a year, waiting for home prices to come down before buying their second home.
That has happened in some areas, but certainly not all, and in the meantime, mortgage interest rates went up significantly. So those folks were not only out the rent money, they’re now paying more in interest with a new mortgage.
Another note about timing: You certainly don’t want to sell your primary residence if you haven’t lived there for at least two years. Otherwise, you’ll be subject to capital gains taxes.
4. Not making necessary repairs. And these weren’t major projects like a new kitchen or roof, which usually don’t pay off at the closing table.
According to Zillow, smaller ticket items like interior painting, carpet cleaning, and landscaping will usually pay for themselves.
Now, we want to mention something about real estate agents. It’s true that you can eliminate a 6 or 7% commission by selling your home yourself. That’s if you list the house at the appropriate price and successfully navigate through all the potential snags that can happen when you sell a house.
But you very often get your money’s worth— and possibly more— by having a knowledgeable agent who knows your market. Proverbs 16:16 reads, “How much better to get wisdom than gold! To get understanding is to be chosen rather than silver.”
On this program, Rob also answers listener questions:
What are the implications of taking Social Security benefits prior to full retirement age?
What are your options when an employer announces a pay decrease?
How do you roll over an IRA without tax penalties?
How secure is Social Security? Can you be confident that your money will be there at retirement?
Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at FaithFi.com where you can join the FaithFi Community, and give as we expand our outreach.
