Half the battle with selling a home is anticipating problems before they arise. Selling a home is an important milestone in life and can be complicated when you consider all the steps involved: prepare and list; reparing; find a buyer; Navigate the closing process; And finally moving on to your next location.

The consequences of a mistake can affect your finances and more importantly your peace of mind. OpenDoor buys and sells thousands of homes per month, giving sellers an alternative to the stress and uncertainty of traditional sales. We understand the challenges that many of our customers face, especially in slow markets.

Here are some of the most common mistakes to avoid when selling a home:

1. Underestimate the cost of sales

The total cost of selling a property can be much higher than the 5-6% agent commission that most people expect to pay. When you account for the costs of closing, repairs, and other concessions to the buyer, the cost to sell can be closer to 10% of the selling price.

For example, if you move into your new home before you sell your old home, you may have to rent a temporary space or pay for both the mortgage and other maintenance costs, such as utilities, HOA dues, taxes and maintenance storage. may have to pay for. Learn more about doing business in your home to avoid these costs.

2. Set an Unrealistic Value

The price you want and what the market will pay can be two very different things. You may hear the term fair market value, which refers to how a home is valued when both the buyer and seller have reasonable knowledge about the property and neither is under pressure to buy or sell.

For the seller, it's the sweet spot between asking for too much or too little. If you can't get to the sweet spot, you risk leaving the table or your home on the market longer, which can have consequences.

You can have a general idea of how much your home is worth based on homes of similar size and features sold near you. These comparable sales, also called "offsets," are what many real estate agents use to suggest a listing price.

3. Considering only the highest bid

The highest offer, while exciting, is not always the best offer for your needs. Contingencies are common in many traditional sales. These are the conditions that must be met in order to close the sale. You may have contingencies that protect the buyer's interests, such as a financial contingency or an inspection contingency.

It is important to be aware of these types of contingencies because they can affect the timing, certainty and complexity of the sale. For example, you may receive a really high offer depending on the buyer selling their existing home.

4. Skip Major Repairs and Make Costly Renovations

A long list of maintenance problems can haunt buyers and potentially reduce the value of your home. More importantly, buyers expect the condition of their home to match the description. Consider prioritizing the most obvious problems, especially those most likely to appear during a home inspection; Many buyers will require inspection before closing.

Many sellers also consider making repairs or improvements to increase the value of their home. Renovations can be expensive, and you won't always get the cost back in the purchase price. In addition, some buyers prefer to do their own renovations to personalize the space. If your goal is to increase the value of the home, be sure to carefully consider any renovations.

5. Regardless of your overall financial situation

Many sellers do not have a clear idea of their financial position before selling. This can lead to painful surprises. Before deciding to sell, it can be helpful to evaluate your income, debt and any future expenses during your move.

To understand how much you owe on your current home, consider contacting your bank or mortgage counselor. This, along with your target sale price and the total cost of selling the home, will give you a general idea of how much money you can keep after the sale.