Selling a home can be a complex and emotionally charged process. Home selling mistakes made before or during the listing can lead to delays, lower offers, or even the failure to close a sale. While some mistakes are minor and more forgiving, others can significantly impact your financial bottom line. The stakes are typically very high when selling a home. The difference between a perfectly planned and well-executed listing and one that makes critical mistakes often translates into tens of thousands or hundreds of thousands of dollars for sellers. In this article, I will cover the most common home selling mistakes and provide actionable tips to help you avoid them. Although I am an agent in San Diego, California, the information I am sharing here is applicable to most residential real estate throughout the United States and beyond.
14 Common Home Selling Mistakes
1. Overpricing the Home
One of the most frequent mistakes sellers make is overpricing their homes. While it’s tempting to aim high in the hopes of getting the most money, setting a price well above market value can drive away potential buyers. Homes that sit on the market for too long can also develop a “stale” reputation, causing buyers to assume there’s something wrong with the property. Stale properties tend to be ignored and can often languish on the market. When they do sell, it is often at a price below what a properly priced listing likely would have sold for sooner.
The following document illustrates the importance of getting pricing right. The first month on the market is critical. It is when the most showing activity typically occurs and is when the seller is in the best position to sell at, above or close to list price.
How to Avoid Over-Pricing Your Home:
Unless your day job is as a real estate appraiser, you may not be in the best position to predict the market value of your home. While pricing is often more art than science, working with a knowledgeable local real estate agent to perform a comparative market analysis (CMA) is your best bet. This will help you determine a price that’s competitive and reflective of current market conditions.
2. Failing to Stage Your Home
While home staging isn’t appropriate for every listing, many sellers underestimate the importance of staging their home before listing. A cluttered or personalized space can make it difficult for buyers to imagine themselves living in the home. Even small things, like outdated furniture, bold paint colors, out-of-style decor, etc. can be off-putting.
Consider Staging Your Home
Invest in professional staging or, at the very least, declutter, depersonalize and deep clean the space. Remove family photos, personal memorabilia, religious displays, and items that distract from the home itself. A neutral, clean, and organized home appeals to the widest audience and can significantly and favorably impact the sale price.
3. Neglecting Necessary Repairs
It can be tempting to put off repairs, especially if they seem minor and you plan to sell soon. However, overlooking necessary repairs can lead to costly issues during the buyer’s inspection process. Buyers often negotiate aggressively for price reductions or demand that repairs be completed before closing. Sometimes the negotiations use relatively minor issues to justify substantial requests for seller concessions. Additionally, sometimes minor repair issues can dissuade an otherwise sincere buyer when the buyer doesn’t have perspective on the repair, or simply doesn’t want to deal with it.
Avoiding Repair Issues
In some situations, completing a pre-listing inspection is advisable. That inspection can be used to identify potential problem areas that could scare off buyers or lower your home’s value. However, if you don’t plan to fix any of the issues that come up in the inspection, taking this approach may not make sense. Whether you do a pre-listing inspection or not, addressing repairs upfront, particularly those related to structural issues, plumbing, or electrical systems can facilitate a smooth and successful sale. Smaller fixes, such as replacing leaky faucets, repairing drywall and minor cosmetic touch-ups, can also go a long way in making your home more appealing and maximizing your success.
4. Skimping on Professional Photos and Video
Almost all buyers today begin their home search online. Despite this fact, I am continually amazed at the number of listings I see where non-professional photography is used. Low-quality, oddly-composed, poorly lit photos can be a significant turnoff. If your listing photos don’t showcase your home in its best light, you are likely to squander the opportunity to attract potential buyers who would otherwise be interested. Buyers can form an impression nearly instantly based on photos, and you want your listing photos to lure buyers in rather than lead them to swipe to the next property.
Video is also an absolutely vital component of real estate marketing. Professional property videos will engage more buyers and create a real emotional connection between the buyer and the property. Videos are far more engaging and “sticky” when compared with photos, although both are vital.
Avoid Photo and Video Missteps
When screening an agent for your listing, it’s worth spending some time asking about their plans for photography and video. If the agent says they plan to take the photos themselves vs. hiring a professional real estate photographer, you should strongly consider hiring another agent. Good agents routinely hire photo and video professionals who understand how to capture your home’s best features with bright, well-composed photos that will make your listing stand out. These pros typically provide a virtual tour or drone photography to further enhance your listing, especially if you have a large property or stunning views. I routinely invest thousands in creating compelling photography and videography that I know translate directly to my clients’ success.
5. Not Marketing the Home Effectively
Relying solely on listing your home on the MLS is another common mistake. There are even discount or “entry only” listing services that will list your home on the MLS, but will provide no or limited representation to you. Simply listing your home and hoping buyers will come is rarely enough in a competitive market. Even if your agent has invested in pro photos and video, effective marketing is crucial to getting your home in front of the right buyers. If you are hoping to maximize what you net from your sale, thorough and professional marketing is essential.
How to Avoid Ineffective Marketing
Work with a real estate agent who has a robust marketing plan that includes online listings, social media promotion, video content, virtual tours, open houses (if desired), and possibly some print advertising. Make sure your home is listed on all major real estate platforms and that the listing description accurately and effectively highlights key features, amenities, and selling points.
6. Limited Access to Showings
Access is absolutely critical in real estate, and missing even a single showing can be one of the more costly home selling mistakes a seller can make. Restricting showings or being unavailable at key times can severely limit your pool of potential buyers. Many buyers want to see homes during evenings or weekends, and if your home isn’t available for viewing during these times, they might simply move on to other properties.
How to Ensure Proper Access
If you are occupying the home, be as flexible as possible with your schedule. If you cannot leave for showings, work with your real estate agent to arrange for open houses, and, when appropriate, have a lockbox system that allows for easy access when you’re not there. The more buyers that can see your home, the faster you’re likely to sell it. Showings are rarely convenient to sellers, especially if you are occupying the home. Mentally prepare yourself to make sacrifices to ensure everyone who requests a showing is able to get in to see it. Some buyers have difficult schedules during the week and may not be able to schedule a showing during the week at all. If you and your agent are in agreement, holding regular weekend open houses can also help broaden access.
7. Letting Emotions Take Over
It’s natural to feel emotionally attached to your home, especially if you’ve lived there for many years. However, letting emotions interfere with the sale can lead to bad decision-making, overpricing, or refusing to negotiate on offers that might be reasonable or good starting points. We’re all human, but I see both buyers and sellers regularly undermine their own best interests by becoming emotional during a home sale.
Tips for Keeping Emotions at Bay
Take a step back and think objectively about offers, negotiations, and feedback from potential buyers. Feedback, even when “negative”, can actually be a valuable tool to sellers. Sometimes that feedback enables changes to the listing to appeal more broadly to buyers.
I also recommend sellers not make assumptions about a buyer’s motivation or intent, particularly when those assumptions are more emotional vs based on unambiguous facts. Assuming the worst in the other party’s intentions rarely facilitates a smooth transaction.
Working with a skilled real estate agent can also help you stay focused on the financial aspects of the transaction rather than getting caught up in personal feelings. Treat the sale of your home as a business transaction and keep your ego out of the transaction as best you can.
8. Not Being Forthright About the Property
Trying to hide or gloss over issues with your home, such as water damage, foundation problems, or pest infestations, is not only unethical but can also lead to legal problems. Buyers will almost always uncover significant issues during the inspection process, and if they feel deceived, they may back out of the sale altogether. Luckily, this problem isn’t as common as some might think, but it is one of many home selling mistakes that is absolutely critical to avoid.
How to Avoid Issues
Be as upfront and transparent about any known issues with your home as early in communications as possible. Although they vary from state to state, disclosure laws generally require sellers to inform buyers of any issues, problems, etc. that might impact a buyer’s willingness to purchase and/or what they would pay for a property. Being transparent will build trust with potential buyers and potentially make them more comfortable moving forward. If necessary, sellers can potentially offer concessions or repairs to address any problems of concern to the buyer before closing.
9. Waiving or Delaying Pre-Approval & Proof of Funds for Buyers
Accepting an offer from a buyer who hasn’t been pre-approved for a mortgage, or who has not shared proof of sufficient funds can lead to disappointment if they are unable to secure financing (or if they don’t have the money for their down payment or an all-cash purchase). This can waste time and cause you to miss out on other serious buyers.
In California, the Residential Purchase Agreement (upon which most home offers are written), defaults to the buyer’s preapproval and proof of funds being included with the offer. However, the offer can be written in a way that delays that documentation until AFTER acceptance. If a seller doesn’t demand sufficient documentation to confirm the buyer’s financial ability to purchase up front, they are likely making a major mistake.
As weird as it may seem, I have seen several instances where buyers without the available funds and/or financing made offers on homes. Accepting an offer without proof of funds invites weeks of potential issues and can cost sellers market time, money and frustration. Like many of the home selling mistakes detailed here, this one can be costly. If a buyer turns out to not have sufficient financial resources, an escrow can fail – which typically does not reflect favorably on other buyers’ perceptions of the home.
How to Avoid Unqualified Buyer Issues
Require buyers’ pre-approval letter and proof of funds accompany their offer – with no exceptions. This ensures that they have already been vetted by a lender and are likely to qualify for the necessary loan to purchase your home. Ideally, the lender should be a reputable one, and it can be helpful for the listing agent to talk with the lender for further vetting. Some lenders hand out preapprovals rather casually.
The proof of funds should show at least enough readily accessible funds to cover the buyer’s down payment and closing costs. For all cash purchases, the proof of funds should show sufficient funds to cover the entire purchase price and closing costs.
10. Being Unprepared for Negotiations
Many sellers enter negotiations unprepared and may either settle for less than they should or alienate buyers with unrealistic demands. Poor negotiation tactics can cause a deal to fall apart entirely.
Offers that start off “too low” sometimes work their way up to winning offer status. And, on the other hand, sometimes offers that look good up front stoop to disingenuous negotiating tactics.
How to Prepare for Negotiations
It is important to go into negotiations paying close attention to item seven above (keeping emotions at bay), and with a clear sense of where your boundaries are. When buyers try to break those boundaries, a diplomatic response usually has a much better chance than a poorly crafted response.
Work with your real estate agent to develop a negotiation strategy before entering talks with buyers. Understand your bottom line, but also be willing to make reasonable concessions. I have found reasonableness to be a great target to aspire to, which can facilitate a successful closing for both sellers and buyers. A well-prepared seller is more likely to achieve a favorable outcome.
11. Ignoring Curb Appeal
The exterior of your home is the first thing buyers see, and first impressions are incredibly important. Neglecting curb appeal can deter buyers before they even step inside, regardless of how beautiful your home is on the inside. Just a staging is vital to how the inside of your home is perceived, some preparation on the outside often has returns that far exceed what is spent on preparation.
Enhancing Curb Appeal
Taking the time to enhance your home’s exterior doesn’t need to break your budget or take months of work. Simple fixes like fresh paint on the front door, cleaning up landscaping, adding a few dramatic potted plants, window cleaning, and power washing the driveway and hardscape can go a long way. Sometimes, more major changes like a full exterior repainting are warranted. However, it’s important to discuss your goals closely with your real estate agent to avoid overspending on your improvements. For more tips on this topic, read my article on Preparing Your Home For Sale.
12. Underestimating Closing Costs
Many sellers focus solely on the sale price without considering the various costs associated with closing a deal. Fees such as agent commissions, transfer taxes, escrow fees, title fees, and, in some states – legal costs, can all add up, leading to lower profits than anticipated.
This is even more true as of late 2024 when buyer’s agent commissions are no longer typically predetermined at the time of the listing. Buyers will now frequently ask the seller to cover the commission owed to the buyer’s agent within the offer, and if they do, what is asked for can vary.
Getting a Grip on Closing Costs
Before listing your home, estimate potential closing costs with your agent to get a clear understanding of how much you’ll actually walk away with after the sale. Escrow companies also can help provide a “Net Sheet” which is a summary of estimated closing costs. Be prepared for common costs, including real estate commissions, title insurance, escrow fees, prorated property taxes, and any repair concessions.
13. Not Preparing for the Moving Process
Selling your home is rarely described as a relaxing process, but some steps can make it less stressful than it otherwise might be. Some sellers are so focused on the sale that they forget to plan their move. This is one of the home selling mistakes that a seller might not even think about until it is too late.
Scrambling to pack and relocate after accepting an offer can lead to stress and potential delays, especially if the buyer wants a quick closing. To make matters more challenging, final moving preparation is sometimes only confirmed after a buyer has removed all their contingencies, which might be weeks into an escrow period.
If you have already moved out of your home, or if it’s reasonable/feasible for you to do so before you list, this can save a great deal of unnecessary stress. For many, though, moving out before listing isn’t an option.
How to Minimize Moving Stress
Time invested in decluttering your home before listing typically pays dividends. A thorough decluttering helps you minimize what needs to be packed for your move. Ideally, start packing and decluttering as soon as you decide to sell.
Make sure you have a destination planned, whether that is a temporary rental or a more permanent solution. You probably do not want to add rental or home shopping to your list of things to do once you’re already in escrow.
Begin researching moving companies. Your agent may be able to refer you to trusted movers. I have yet to see a moving company without at least a couple of horror stories in their company reviews. It’s wise to do your homework to make sure you are working with a reputable and reliable mover. Or, if you’re really brave, make arrangements for a DIY move. Either way, you want your move planned carefully so you’re ready to vacate the home on schedule. Having a moving plan in place will ensure a smooth transition for both you and the buyer.
14. Rejecting the First Offer Without Consideration
Many sellers expect their home to receive multiple offers or that a better one will be just around the corner. Sometimes that’s true, particularly in a hot seller’s market. However, rejecting the first offer without serious consideration could be a major mistake, especially if it’s reasonable and close to your asking price.
Carefully Consider All Offers
As described in item Seven above, it’s easy to let emotions dictate your response to an offer, especially if it’s below your expectations. I counsel my listing clients to evaluate every offer carefully.
When you first list the home, you’re tapping into all the buyers who have been following the market most closely. The first offer might be the best one you get, especially in a balanced or buyer’s market. Work with your agent to weigh the pros and cons of the offer, including the buyer’s financing situation, contingencies, and the proposed closing timeline. Dismissing an offer just because it’s the first can be a risky move.
Closing Thoughts on Avoiding Home Selling Mistakes
Selling a home is a major decision, and avoiding these common home selling mistakes can make the process smoother, quicker, and more profitable. By pricing your home correctly, preparing it for sale, and working with experienced professionals, you can minimize stress and maximize your chances of a successful sale.
Focusing on these critical areas will make you better equipped to navigate the complexities of the real estate market and secure the best possible outcome for your home sale. Real estate is filled with countless decisions and a myriad of potential approaches to selling. The keys to maximizing your success are preparation, flexibility, and partnering with the right professionals to guide you along the way.
Selling or Buying a Home in San Diego?
If you are considering buying or selling a home in San Diego and are looking for solid, conscientious advice from an experienced agent, please consider me a resource. Please reach out to me if you would like to discuss your real estate goals and plans, regardless of where in San Diego, and at what price point.
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