1. UPDATING THE WRONG AREAS OF THE HOME
One of the most significant missteps sellers make is investing money into renovations or updates that won't yield a substantial return on investment (ROI). Improving the wrong areas can lead to financial losses and make it challenging to recoup your investment.
While you want to present a well-maintained property, not all improvements are equal. Just because you always wanted to update the backyard does not necessarily mean it’s the best choice for an update! Focus on high-impact areas like kitchens and bathrooms, which tend to generate the best returns. Consult with your real estate agent to identify which updates are worthwhile for your specific property in your specific market.
2. PRICING YOUR HOME INCORRECTLY FOR THE CURRENT MARKET
It’s common for sellers to overprice properties, especially in a competitive market where they assume buyers will give them what they ask for. While it may be tempting to aim high, an inflated listing price can scare off potential buyers.
In a competitive market like San Jose, buyers are well-informed and work with real estate agents who can help them gauge the fair market value of a property. Overpricing can lead to a property languishing on the market, causing it to become "stale" and potentially selling for less than its true value in the end.