Selling your home? Watch out for these traps

“There’s never been a better time to sell your home.”

How often have you heard that?

Perhaps you get regular phone calls, brochures in your letterbox, or visits from real estate agents, offering you a free valuation.

Agents are, of course, in the business of selling houses, so they always need houses to sell – regardless of whether it actually is a good time for you to sell.

If you are considering selling, seek some independent advice about the state of the market.

A lot of factors can affect the price you can expect to fetch. At the moment, high interest rates for borrowers will have an impact on the pool of potential buyers.

If you do decide to sell, make appointments with several agents. Look for those who are active and successful in your area and come recommended by someone you know.

Have a good chat with each agent and deal with the person you feel most comfortable with, who seems to understand the house and its unique selling points, and who you trust to get you the best price.

Also, make sure you are fully aware of their charges and the other expenses you will face as a vendor. It doesn’t hurt to ask for a reduction in their fees, which are normally a percentage of the sale price, and to question the marketing budget they propose.

Here are some other pitfalls to look out for when selling your house:

Overpricing: Setting an unrealistic price for your home can deter potential buyers. It's important to research the local real estate market, consider recent sales of similar properties in your area, and consult with real estate professionals to determine an appropriate listing price.

Method of sale: Should you sell by auction or by private treaty? Auctions often attract better-than-average results, but they are not the default option for every property – nor are they the norm in some states.

Poor presentation: Failing to properly prepare and present your home can negatively impact its marketability. It's crucial to declutter, clean, and stage your house effectively to create a favourable impression on potential buyers.

Poor marketing: Effective marketing is vital to attract potential buyers. If your property doesn't receive proper exposure through online listings, professional photography, virtual tours, or other marketing strategies, it may not generate enough interest or receive competitive offers.

Lack of disclosure: Failing to disclose pertinent information about your property, such as known defects, can lead to legal issues and jeopardise the sale.

Delays in paperwork and legal processes: Failing to complete or submit the necessary documents promptly can lead to delays or even cancellation of the sale. Use a reputable lawyer with experience in conveyancing.

Inadequate buyer qualification: Accepting an offer from a buyer who is not financially qualified or lacks a solid pre-approval can lead to complications during the closing process. You may consider a sale “subject to buyer’s finance”, but that adds to the risk of the deal falling over.

Emotional attachment: Don’t let your emotions about selling the family home cloud your judgment. You are selling your major asset and you need to approach it as a business deal. Don’t get sidetracked by thoughts – positive or negative – about who will be living in your home, or what they may do with it.

To navigate these and other potential pitfalls, work with experienced real estate professionals – agents, appraisers, auctioneers and lawyers. Their expertise can help you avoid or mitigate potential issues and ensure a smoother selling process.