Top 3 Financial Reasons Selling Your House Is Stressful and How To Plan Ahead
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Martin Dasko
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Rebekah Evans
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According to the most recent data from the National Association of Realtors (NAR), existing home sales went up 3.4% in October, the first annual increase since July 2021. With median existing home prices at $407,200, you want to ensure you get the best price possible when selling your home. Based on a recent report from the website Clever Real Estate, the top three concerns regarding selling a home are unexpected costs (41%), not getting enough money for the house (36%) and handling repairs or inspections (36%).
Here are the top issues when selling a home and how you can prepare ahead to avoid them.
Unexpected Costs
Since unexpected costs were a concern for 41% of respondents in the survey, it’s crucial to point out that you need to invest some money upfront to determine how much you could spend on repairs and other possible issues when selling a home. If you don’t want to be surprised by the costs, then you’ll want to take some proactive measures so that you know what you’re getting into.
“There’s usually some deferred maintenance, landscaping costs and interior staging that is advised that can cost thousands of dollars,” said Chris Reis, real estate broker with PNW Residences/Compass Real Estate.
Reis also shared that this upfront investment may be unexpected if you don’t conduct your research in advance, but it can maximize the sales price. You’ll also want to see if your real estate brokerage has any programs available to help cover the costs until you sell your home.
“For sellers who may not have the financial flexibility to address these costs upfront, I suggest working with vendors who accept payment at closing,” said Danielle Andrews, real estate broker with Realty One Group Next Generation. “This allows sellers to complete necessary work to make their home market-ready without immediate out-of-pocket expenses.”
The good news is a little bit of planning before listing your home can help you prepare for any costs that may pop up. Since the objective is to maximize what you sell your home for, it may be worth making certain upgrades or spending a little extra on upfront effort.
Not Getting Enough Money for the House
Andrews pointed out that setting realistic expectations upfront is crucial if you don’t want to be disappointed when you end up selling your home. “Conducting a thorough comparative market analysis (CMA) provides a clear picture of the home’s estimated value and current market conditions,” she added.
This will keep you informed of the property’s value so that you can set realistic expectations for the transaction. You can also use an online home value estimator tool to get a basic estimate so that you know roughly what to expect. You don’t want to go into the home-selling experience with unrealistic standards, because then you’ll be stressed out when you don’t get what you thought you would.
Reis stated that living in a home and preparing it for selling should be considered two separate things. He advised removing all personal items and staging a home before listing. This allows your broker to make the property as appealing as possible to attract a wider buyer pool to ensure that you get more from the transaction.
In a final tip, if you don’t want to be disappointed in the selling price of your home, you should ask your broker what their plan is to market the home before signing an agreement. A broker should have a detailed plan to market the property so that you know that you’ll get the maximum value.
Handing Repairs or Inspections
“The best way to mitigate potential negotiations on repairs after inspections is to know what condition the home is in before listing and taking care of obvious issues that a buyer will likely discover and renegotiate,” Reis explained. Andrews agreed that the best approach to repairs or inspections is to be proactive and informed before listing the property.
Many realtors advise clients to get an inspection report before selling their homes so that they can repair any issues that could arise. The main benefit of this expense is that you won’t have to stress about negotiations since your home will be in good shape and ready to move in. If a buyer finds out that they have to replace the roof or spend a hefty amount on repairs, they may back out of the deal or try to negotiate much lower prices.
If a buyer rescinds their offer during inspections because of significant issues, this scenario could lead to much lower offers from other prospective buyers when the word gets out. While many repair requests can be negotiated within reason, addressing major repairs upfront is essential.
“Taking the time to research and prepare ensures sellers are ready to handle buyer concerns confidently and helps avoid delays that could jeopardize the transaction,” Andrews added.
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