Hidden Costs and Mistakes When Selling Your California Home

If you're new to the seller's market, you’ve probably been warned about many things. While it's true there are many challenges when it comes to selling your home in California, the good news is that there are ways to overcome them.

The first step is becoming aware of unforeseen or overlooked costs that come with the process of putting your home on the market.
You'll also benefit from being aware of the common mistakes associated with selling.

Understanding what not to do allows you to concentrate on what you need to do - in order to sell your home quickly and at fair market value.

Sellers beware. Avoid the following surprises, hidden costs and common mistakes made by those that have done it before:

Low Appraisals Will Cost You

If you have a mortgage on your home, getting an appraisal is mandatory before selling. Low appraisals typically occur in competitive markets, but that's not to say they can't happen in any marketplace. Avoid the unfortunate position of getting a call from your agent saying the appraisal came in below the asking price (sometimes by as much as 5%!)

Being Emotional Leads To Mistakes

Are you mentally prepared to say goodbye to the house? This can be hard to realize. Home ownership is a big deal and removing yourself from the experience can be unexpectedly difficult. If you're emotionally attached to the home, your decisions may be affected by it. You're more likely to overprice the home if you're emotional about it. The lesson is: put on your business face and get real about what you're doing. The reality is, less than 10% of FSBO homes actually end up selling. Ask yourself if you're being subjective and reasonable as you prepare for market.

Repairs Add Up

Whether it’s a prospective buyer, the lender, or your agent, there's a high probability that someone will request making repairs to your home during the selling process. Replacing the roof, repairing the cracked foundation, mold remediation, or fixing the heating and air conditioning can set you back thousands. Even minor repairs like rotted wood or chipped paint add up. Cutting the corners is rarely an option. (It won't go unnoticed during inspection!) Own up to what needs repairing, fixing, or replacing. Otherwise, you'll end up paying more than you would have if you had just hired a contractor to do it right the first time.

Poor Staging Is A Big Mistake

You're so tired between showings and you figure, "it'll be okay if I don't clean up - just this one time..."
Big mistake. Especially if you continue to live in the house you’re selling, keeping it clean is imperative before every visit from potential buyers. Inexperienced sellers often forgo professional home staging claiming that it's too costly in terms of both time and money. The reality is, staging is about highlighting the best features of a house in a non-personalized way. And it doesn't have to involve expensive experts and rental furniture. There's a lot you can do on your own. Above all, cleaning, tidying and beautifying your home for sale for every open house is crucial.

Hidden Holding Costs

It typically takes three months to a year for a real estate agent to sell a home. During this time, you have to pay for things like property taxes, insurance, mortgage, utilities, HOA fees, in addition to other costs necessary for the upkeep of your home such as heating and landscape maintenance. Also known as carrying costs, these holding costs pile up fast. That money that could be used towards another home or be put into moving, or something else entirely.

If your home is in top shape and you’re not in a hurry to sell, you probably won’t be hit by too many hidden fees, and it’s probably worth listing with an agent. But if you’re looking for an alternative, selling your home to a professional home buyer as-is for cash is a good option. They take care of all the repairs and fees. And once they give you a price, that’s it. They can also typically close in 10 days, making it a speedy and stress-free process.