Selling your home can be a challenging endeavor, both logistically and emotionally, given the significant attachment many people have to their homes. According to a recent housing trends report, the average homeowner lives in their property for approximately 14 years before deciding to sell. While it is uncommon for sales to proceed without any hitches, being aware of common pitfalls can make the process smoother and less emotionally taxing.
Whether you are selling for the first time or have prior experience, knowing what to avoid can greatly influence your experience. Here are some of the most frequent mistakes to watch out for:
- Overpricing
- Not timing correctly
- Ignoring repairs
- Getting emotional
- Not doing enough prep work
- Not hiring a photographer
- Lack of landscaping
- Failing to factor in additional costs
- Not knowing your strengths and weaknesses
1. Overpricing Your Home
Setting the right price for your home is crucial for achieving a timely sale at a price you’re comfortable with.
The Risk of Pricing Your Home Too High
When listing your home for sale, it’s easy to be tempted to set a high price. However, this can have several negative consequences:
- It can deter qualified buyers who are searching within your price range.
- It may cause your home to sit on the market for an extended period. The longer your home remains unsold, the less urgency buyers feel to make an offer.
- If you eventually have to reduce the price, buyers may perceive it as a sign of weakness and feel empowered to negotiate even lower.
- A stale listing might result in selling for less than if you had priced it appropriately from the start.
Determining the Right Listing Price
There are several methods to determine an accurate listing price:
Get a Estimation from an Agent
A comparative market analysis is an estimate of your home’s value prepared by a local real estate agent. This analysis is based on recently sold homes that are similar to yours. Agents often provide this service free of charge to earn your business.
Collect Comps on Your Own
If you prefer not to work with an agent, you can conduct your own comparative market research. Identify homes that are similar to yours and have sold in the last three to six months, considering the following criteria:
- Same neighborhood
- Similar size (within about 30 square meters)
- Same home type — condo, house, or townhouse
- Similar condition or upgrades (adjust for differences, such as flooring types)
Hire an Appraiser
In a competitive market or if you need to sell quickly, it might be worth the investment to hire a professional appraiser. An appraiser typically charges CHF 500-700 and can provide an expert opinion on your home’s value. An appraisal report can offer peace of mind and serve as a useful negotiating tool with buyers. We offer this for free for our members!
Don’t Worry About Underpricing
While many sellers fear underpricing, overpricing is often the bigger issue. Underpricing can be a strategic move, especially in a hot market. A lower asking price can attract multiple buyers and lead to a bidding war, potentially resulting in a sale price above market value due to high demand.
2. Selling at the Wrong Time
Timing your sale can significantly impact the price you achieve. In many regions, the optimal time to sell is during the second half of April, as homes listed during this period tend to sell for higher prices. For example, in some markets, homes sold during this window can fetch significantly more than those listed at other times of the year. It’s essential to consider local weather patterns and other factors when determining the best time to sell in your area.
Another timing-related consideration is how long you’ve owned your home. To avoid capital gains taxes on the sale of your primary residence, you need to have lived in the home for at least two out of the last five years. This can influence your timing strategy and ensure you maximize your financial benefits.
3. Skimping on Repairs
Even minor defects can be off-putting to potential buyers. Loose doorknobs, leaky faucets, or small wall dings can make buyers question whether more significant issues have been neglected.
According to recent reports, the average seller undertakes about 2.3 renovations or improvements to prepare for a sale, with 79% of sellers making at least one home improvement. Common projects include:
- Painting the interior (35% of sellers)
- Landscaping the yard (28% of sellers)
- Improving the kitchen (24%)
- Replacing or repairing carpet or flooring (24%)
- Making improvements to the bathroom (27%)
Average Charges for Major Home Repairs
While many repairs are minor and inexpensive, some significant issues can be costly. Here are some common costs for major repairs:
- Plumbing: CHF 6,500
- New Roof: CHF 5,800
- New Driveway: CHF 3,800
- Exterior Paint: CHF 3,300
- Windows and Doors: Between CHF 550 and CHF 850 per window, plus CHF 90 per window to remove old windows
- New Furnace: CHF 2,100
- Electrical: CHF 1,800
- Carpet and Flooring: CHF 1,800
- Deck: CHF 1,800
Being proactive about repairs can help you avoid unexpected expenses and ensure your home is attractive to potential buyers.
Offer a Repair Credit
If there are known issues with your home, either identifiedduring the buyer’s viewing, one way to facilitate the sale is to offer a repair credit. This allows buyers to handle the repairs themselves after the sale is complete. This approach can be appealing to buyers who prefer to manage renovations according to their preferences and timeline.
Lower the Listing Price
If you identify issues in your home before listing it, consider lowering the listing price to reflect these problems. Be transparent in your listing description that the price accounts for the known issues. This honesty can prevent further price negotiations and attract buyers who are willing to purchase a home with some repair needs. By adjusting the price accordingly, you can set realistic expectations and expedite the selling process.
4. Letting Emotions Interfere with Your Home Sale
5. Failing to Prep and Stage
Making the effort to ensure your home looks its best before listing is a wise investment of both time and money. Many buyers may base their decision to make an offer on what they see in photos and virtual tours. In fact, a recent survey indicated that nearly 60% of millennials would feel at least somewhat confident making an offer after just a 3D virtual tour.
Here are some tips to help you clean, prep, and stage your home effectively:
Clean Thoroughly
- Vacuum, Sweep, and Mop: Ensure all floors are spotless.
- Polish or Wipe Down Appliances and Countertops: Make surfaces shine.
- Clean Bathrooms: Pay extra attention to toilets, sinks, and mirrors.
- Eliminate Odors: Use air fresheners and open windows to keep the air fresh.
- Fold and Put Away Laundry: Keep laundry out of sight.
- Organize Closets: Buyers appreciate ample storage space, so keep it tidy.
- Repeat Before Every Showing: Maintain cleanliness consistently.
Depersonalize, Declutter, and Stage
It’s essential that buyers can envision themselves living in the home. Personal belongings and clutter can hinder this. Here are some decluttering and staging tips:
- Rent a Storage Unit: Store personal items off-site to create more space.
- Remove Items Room by Room: Fewer items make rooms appear larger and more spacious.
- Donate Unneeded Items: Reduce moving costs and storage needs by donating what you no longer need.
- Neutral Decor: Buyers may not share your style. Keep decor minimal and rearrange furniture in a neutral and functional manner. Consider hiring a professional stager if your furnishings are very specific in style.
- Stage Rooms for Broad Appeal: For example, stage a guest room as a guest room rather than a home gym.
- Paint the Interior: A fresh coat of paint can make a significant difference. Opt for neutral colors, especially if you have bold or unique wall colors that may not appeal to most buyers.
By following these steps, you can enhance your home’s appeal both in person and on screen, increasing the likelihood of attracting interested buyers and receiving favorable offers.
6. Not Hiring a Professional Photographer
Professional listing photographs are essential, even if you’re not using a real estate agent. Since 95% of buyers search for homes online, your listing photos create your home’s first impression. Professional photographers typically charge a couple of hundred francs, and they provide crisp, clean photos with ample natural light that highlight your home’s best features.
7. Skipping Curb Appeal
The exterior of your home is the first thing potential buyers see during a showing. Don’t focus solely on the interior and neglect the exterior. According to recent reports, 28% of sellers enhance their landscaping before listing. Common landscaping tasks include:
- Mowing the Lawn: Keep it neat and tidy.
- Painting the Exterior (if necessary): Refresh the look of your home.
- Clearing Pathways: Ensure they are clean and accessible.
- Seasonal Maintenance: Rake leaves and trim bushes and branches.
- Planting Flowers: Add color and vibrancy to your yard.
8. Forgetting Closing Costs
When selling a home in Switzerland, it is crucial to factor in the various costs associated with the transaction. Closing costs for sellers can range from 8 to 10 percent of the sale price. Here are the key expenses you need to consider:
Notary Fees and Land Registry Costs
- Notary Fees: The notary fee, which is mandatory in Switzerland for property transactions, ranges between 0.1% and 0.5% of the sale price.
- Land Registry Costs: These costs can vary by canton but generally amount to 0.1% to 0.5% of the sale price. This fee is for registering the change of ownership in the official land registry.
Property Transfer Tax
- Property Transfer Tax: Depending on the canton, this tax can range from 1% to 3% of the sale price. Some cantons split this cost between the buyer and the seller.
Mortgage Cancellation Fees
- Mortgage Cancellation Fees: If you have an existing mortgage on your property, you may incur fees for cancelling the mortgage early. These fees can vary significantly depending on your mortgage agreement.
Legal Fees
- Legal Fees: If you hire a lawyer to assist with the sale, legal fees can range from CHF 1,000 to CHF 3,000, depending on the complexity of the transaction.
Home Preparation Costs
- Repairs and Staging: To maximize your sale price, you may need to invest in repairs, renovations, or professional staging. These costs vary widely based on the work needed but can range from a few hundred to several thousand francs.
Marketing and Advertising Costs
- Marketing Costs: If you’re selling your home on your own, you’ll need to budget for advertising expenses, such as online listings, professional photography, and promotional materials. These costs can add up to several hundred francs.
Miscellaneous Fees
- Moving Costs: Don’t forget to budget for the cost of moving your belongings to a new location.
- Administrative Fees: These can include fees for obtaining necessary documents, such as property surveys and certificates.
By understanding and planning for these costs, you can better manage your finances and avoid any surprises during the selling process. Factoring in all these expenses will help ensure a smoother and more financially sound transaction.
9. Not Hiring an Agent (If You’re Not Willing to Do the Work)
Unless you have the time, dedication, and expertise to list your house for sale by owner, using an agent is often beneficial. Key benefits of hiring an agent include:
- Paperwork Management: Your agent will handle the extensive paperwork required.
- Stress Minimization: Agents help you focus on facts, not emotions.
- Market Expertise: Agents know your local market and what buyers want.
- Pricing: Agents use a comparative market analysis to set the right price.
Choosing the Right Agent
Select an agent knowledgeable about your local market with experience selling homes in your neighborhood. To find a great agent:
- Read Reviews: Check feedback from other clients.
- Set Expectations: Ensure your goals align with the agent’s plan.
- Negotiate Terms: While many sellers don’t negotiate, 55% of those who do achieve some success.
By avoiding these common mistakes, you can enhance the chances of a smooth and profitable home-selling experience.
