Mistakes that homeowners make which can sabotage a sale and their family wealth

For many of us, it is our most important and expensive financial asset, but are you treating it as such?

Many homeowners are not maximising on what their potential sale price could be, because of some simple mistakes. Picture: Newscorp- Daily Telegraph / Gaye Gerard

During the most recent real estate boom, vendors could barely put a foot wrong and buyers with FOMO and easy access to credit were prepared to pay top dollar.

Selling conditions were so good, in fact, that home prices grew nationally at the third fastest rate in 150 years, according to PropTrack.

Today, it’s a different story. Values have been falling in most capitals over recent months and multiple economists expect further – albeit gradual – declines this year due to higher interest rates.

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As housing values fall, sellers need to be aware of the typical mistakes that could cost them thousands.

Megan Moss, selling agent with national group Upside Realty, said one of the most common errors is engaging an agent for the wrong reasons. “Some vendors make the mistake of choosing an agent by how much it will cost them,” Ms Moss said.

“Remember, your home is your biggest asset so when it comes to fees and marketing you don’t want to scrimp on advertising. It’s the first part of attracting the right buyer.”

While getting the perfect match with an agent should pay off, so will a carefully budgeted makeover. “Some vendors choose to sell and then decide to start doing renovations or landscaping, which may not be worth it. They invest money and a few weeks pass then they’re ready to sell, but given how quickly the market is changing with interest rate rises, suddenly buyers aren’t wanting to spend as much, or want to completely change the work just done,” she added.

RECOGNISE THE MARKET CHANGED

It’s a bitter pill to swallow, but today’s sellers can’t focus on what their sale price could have been.

“With the changing market, vendors need to be open to feedback particularly when it comes to price opinions. Buyers are out comparing every home currently on the market while vendors are comparing their home to properties sold three to six months ago when the market was higher,” Ms Moss explained.

And when the offers come in, she warned sellers shouldn’t be tempted to try for a little bit more. “Despite feedback and multiple offers around the same price, some vendors will decline in the hope of achieving more money. Those offers may never come and buyers will start looking elsewhere. Once you lose that first round of buyers, the next round might not be willing to go to that level and vendors risk having to accept a lot less than that first offer.”

THE ART OF GOOD STAGING

Presentation is also key to a successful sale, but Home AU agent Sheree Hay said sellers should be aware less is usually more.

“Buyers need a clean canvas to work with when inspecting properties. It can be difficult to imagine how a property might look with someone else’s personal objects all over it,” she said.

“Ensure your property is as neutral as possible. Minimise furniture, increase lighting and remove personal items.”

Ms Hay added that the number one rule for preparing a home is to rid it of polarising objects. “I’ve listed properties where sellers have had coffins in the garage. I’ve also viewed properties where display shelving has been covered in urns with the ashes of dead relatives,” she said.

“While these items might be important to the property owner, I guarantee they’re not going to be of interest to a potential buyer. If anything, they’re going to have a very negative effect and put buyers off.”

TOP FIVE MISTAKES VENDORS MAKE

See what are the most common vendor mistakes. Picture: Newscorp- Daily Telegraph / Gaye Gerard

1. NOT REMOVING UNUSUAL ITEMS

Buyer tastes vary, so kerb your enthusiasm for provocative art, religious, superstitious or overly personal items, advised Home AU Real Estate’s Sheree Hay. “Many people are superstitious and avoid keeping certain things in the house.

There are some things superstitious people refuse to keep in the house. These include a broken clock, cacti, scenes of destruction in artwork, a bird in the house and an old broom, just to mention a few,” Ms Hay said.

She added that sellers should tread carefully with certain artworks. “Art is a very personal thing. What one person likes, another despises. Open homes should be about leaving a positive impression on a potential buyer … statues, wall art and even quirky furniture can be confronting for some people. ”

2. OVERSPENDING ON RENOVATIONS

Updating your home before selling seems like a great idea on paper because skyrocketing building costs are putting buyers off run down properties. However, don’t overcapitalise when renovating. Experts suggest sellers should never spend more than 10 per cent of the property’s value on a cosmetic renovation with the general rule of thumb for kitchens and bathrooms being 2 to 3 per cent. “Little tidy ups that take less time and money can be beneficial, but larger scale renovations may not be recouped in this market,” said Megan Moss, selling agent with national group Upside Realty.

4. MISUNDERSTANDING THE MARKET

Real estate isn’t an exact science, so neither is pricing a property. Stressed and anxious sellers can be tempted to focus on the price they need or want – or what their neighbour got – rather than what the market is dictating.

Vendors who price their home unrealistically in the hope of a big result could actually lose money (and campaign momentum) as their property sits on the shelf.

3. CHOOSING THE WRONG AGENT

During the housing boom in 2020 and 2021, even the most inexperienced (or lazy) agent could sell for top dollar.

Taking recommendations from friends and family can be helpful, but if an agent doesn’t know your area or property type they might not be the perfect match. “A good agent is worth the commission fees as they’ll do everything to achieve the highest price for vendors with their knowledge and skill set to negotiate with buyers,” Ms Moss added.

5. DEAD ANIMALS AND PETS

“Moose heads, taxidermied animals and other similar items can be highly offensive to many people. Remove them altogether,” Hay said. “If you have buried animals in the yard and erected shrines or headstones, remove evidence of these as well. While burying animals in the yard is not something we are supposed to do, the reality is that most properties house dead family pets. It is not nice seeing evidence of this in the yard.”

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Originally published as Mistakes that homeowners make which can sabotage a sale and their family wealth