What Not To Fix When Selling A House

When selling a house in Canada, the goal for the seller is to sell it smoothly and at a good price. However, not everyone among the homeowners we have encountered knows the key points of a successful sale. Many people have various misconceptions, and some are even stubbornly set in their ways. Below, we will share with you a few key points to consider in selling a house. And learn what not to fix when selling a house.

Listing Price Should Be Relatively Reasonable

Setting an unrealistic listing price is a common mistake many first-time sellers make. It is natural to want to sell at a good price, but the problem lies in the fact that regardless of how valuable you think your house is, it needs to be tested in the market until you find a buyer willing to pay that price.

For example, if similar houses in your community are selling for $800k and you insist on listing yours for $1 million, the direct consequence is that many potential buyers will be drawn to the other houses listed at a more reasonable price. Inadvertently, your house becomes free advertising for others. While you may have a good number of people interested in viewing your house, they may not be willing to negotiate or make an offer. Instead, after viewing your house, they may turn their attention to other properties and make offers there.

After a few weeks have passed and your neighbors’ houses have sold, you suddenly realize the mistake you made and are forced to lower your price to the market value. Another unintended consequence arises: the market may perceive your house as having significant flaws, otherwise, why would it have taken so long to sell? And now, you have to proactively reduce the price! As a seller, you must not underestimate the importance of the “days on the market” indicator. If a property remains on the market for a long time, it becomes increasingly difficult to sell it at market value (let alone the seller’s ideal price) or it may not sell at all.

What Not To Fix When Selling A House

Many people only understand this lesson after being taught by the market, and inexperienced real estate agents either fail to convince the sellers or, to appease them, list the property according to their demands. As a result, it often leads to genuine anguish for the sellers.

Don’t Skimp On Factors That Boost Home Prices

Many sellers are unwilling to invest even in basic renovations or touch-ups before selling their homes. This can either fail to attract an adequate number of buyers or result in selling at a lower price. For example, market statistics show that simple improvements such as repainting, renovating cabinets, or upgrading to modern doors and windows can significantly increase the value of a property, often yielding returns several times higher than the initial investment. By neglecting such improvements, you may find yourself compelled to compromise on the price with buyers who are willing to put in the effort.

Some sellers may say, “I’m afraid of renovations” or “I’m willing to make some concessions in price as long as I don’t have to do this and that.” However, years of experience have shown that these ideas come at a high cost. Our advice is, at the very least, to remove personalization from the house, such as various small decorations in your rooms, shoe cabinets, and personal items in the bathroom. Giving the entire house a fresh coat of paint is also a basic task to be done before selling. These steps are likely the most fundamental preparations to be made when selling a house.

No Overdo Renovations Because Investments Cannot Be Recovered.

This point is the opposite of what was mentioned earlier. It’s important to have elements that catch the eye, but it’s crucial to strike the right balance. Going overboard with renovations can be counterproductive. For example, having a swimming pool may not be highly desirable among the middle-class community, and many buyers may not be willing to pay a premium for it. Sellers who invest in additional features like pool enclosures, pool heating, or sauna facilities to highlight the luxury of the swimming pool may end up spending $10 but only recouping $5 or even less in the selling price. It’s important to focus on using resources effectively.

Good Timing Of Selling A House Is Crucial

During the spring season, both buyers and sellers tend to be more active, resulting in a bustling real estate market. In the summer, however, many families are busy planning their vacations, leading to a decrease in the number of people looking to buy or sell properties. The market tends to pick up again in the fall. During the winter, with the cold weather, most people prefer to stay indoors, resulting in fewer real estate transactions taking place.

In a balanced real estate market, savvy buyers who are aware of these seasonal factors may choose to visit properties during the winter. This is because sellers who list their properties during this time are often motivated to close the deal and may be more willing to negotiate on price. On the other hand, sellers are advised not to list their properties during this season, as there may be fewer buyers in the market. By listing during the winter instead of waiting a few more months, it signals to the market that you are eager to sell.

That’s a perfect example right on our street. One seller listed their property in November and held at least three open houses, waiting for two months before receiving the first offer and eventually closing the deal. On the other hand, another house on the same street, in a slightly worse condition, received an offer as soon as it was listed during the transition from winter to spring, and it sold for 15% above the asking price. This demonstrates the seasonal factors in real estate transactions, and everyone needs to adapt to the local market practices.

Additionally, when multiple houses in a neighborhood are listed for sale simultaneously, there can be excessive competition among sellers. Experienced sellers should consider waiting and listing their property once the market has absorbed some of the available inventory.

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