If you’re considering selling your home in 2025, it’s completely normal to feel a mix of excitement and anxiety.
Selling a home is a major decision, and the last thing you want is to make mistakes that could end up costing you time or money. In a competitive market like Santa Cruz, it’s easy to overlook potential pitfalls that could trip you up.
Having been part of the Santa Cruz local community for many years, I've watched numerous homeowners make mistakes that could have been avoided and derailed sales or left money on the table. Whether you live in Aptos, Scotts Valley, Capitola, or any of the surrounding communities, here are some major mistakes to remember that will get your sale through with flying colors and maximum return on investment.
Inside this Article:
- 1. Should you overprice your home initially to allow for negotiation during the selling process?
- 2. Why is it crucial to look beyond the dollar amount of an offer and consider factors like closing costs when determining the "best" offer?
- 3. Does the quality of media (photos, videos, virtual tours) used to market your home impact its sale?
- 4. What are the risks of over-investing in renovations before selling, and how can you ensure your improvements increase your home's value?
- 5. Why is relying solely on a yard sign an inadequate marketing strategy in today's competitive real estate market?
- 6. What are the potential pitfalls of selling a home without the expertise and resources of a real estate agent?
1. Overpricing your home to Leave Room for Negotiation
It’s a common misconception that you should list your home higher than its market value to leave room for negotiation. But this strategy can backfire and hurt your chances of selling. Here’s the thing: buyers even in hot markets like Beachfront Santa Cruz, Scotts Valley, Los Gatos, and Soquel are savvy They’ve already done their homework and know when a home is priced too high. Let’s break it down with an example. Imagine there are four comparable homes for sale in Capitola:
- One sells for $1,475,000
- Another goes for $1,485,000
- The remaining two sell for around $1,495,000
If your home is comparable and you list your home at $1,550,000, it’s likely to stay on the market too long, potentially being perceived as overpriced—or even worse, a property no one is bidding on. Even in a hot market like Santa Cruz, buyers might initially be curious, but that curiosity quickly turns to caution. This uncertainty can lead to concerns about what’s wrong with the home. Buyers might start to think there are hidden issues, like structural problems or outdated systems, that make it less appealing than similar homes nearby. If your home lingers too long, you may have to lower the price, which can make buyers even more skeptical and hesitant to make an offer.
Remember, pricing your home right from the start isn’t just about catching attention—it’s about generating real interest and a sense of urgency.
2. Assuming the Highest Offer is Always the Best Offer (How Closing Costs Play a role)
Getting an offer that's $50,000 over your asking price is exciting. However, the highest bid doesn’t always yield the best financial outcome. Offers may come with contingencies—such as inspection requests, financing approval, or seller concessions—that can add complexity to the deal. These conditions could delay the closing process or cause the agreement to fall through, forcing you to start over.
Besides just looking at the offer price, consider how closing costs will affect your net profits. In property transactions, sellers ordinarily cover specific expenses. This includes things like title insurance, property taxes, escrow fees, and a few others. However, buyers usually pay some of the closing costs, depending on which county you’re located in. One common strategy buyers use to their advantage is requesting seller concessions to help cover some of their closing costs. This might include expenses like loan fees, title insurance, inspection costs, or prepaid property taxes and insurance. While this is a practical option for buyers with limited cash reserves, buyers often use it to close a deal without needing to invest as much money upfront.
So, a higher offer that includes many extra contingencies or propositions for financial help from the seller could end up giving you less than you expect. That’s why it’s key to carefully evaluate both the offer price and the possible closing costs, ensuring you’re making the right choice for your financial situation.
3. Not Using Professional Media to Sell Your Home
Imagine you have two homes. One is beautifully located right on the beach in Santa Cruz, and the other is nestled in the breathtaking San Lorenzo Valley. Both are lovely and in sought-after spots, but there's a key difference—only one is presented with top-notch, professional media. The San Lorenzo Valley home boasts gorgeous, bright photos, a sleek video tour, and even a captivating 3D walkthrough showcasing every property detail. Meanwhile, the Santa Cruz home with that iconic beach vibe has blurry, low-quality photos that look like they were snapped on the phone in poor lighting. So, which home grabs your attention?
Having professional photos, video tours, and 3D walkthroughs isn’t just a nice-to-have; it’s a must. High-quality media does more than display your home—it weaves a narrative and fosters a connection with potential buyers. Investing in these professional visuals can speed up your sales. Research shows homes with high-quality photos sell 32% faster than those with average or lower-quality images. Plus, they typically spend less than 30 days on the market, compared to over 45 days for other listings.
4. Overdoing it when renovating
Another common mistake is assuming you must gut your home and do a complete renovation before listing it. While it’s true that a house in good condition will sell faster, sometimes buyers aren’t necessarily looking for a fully renovated property—they want a clean, well-maintained home where they can add their personal touches.
Some places in this county, for example, unlike more suburban or affluent areas like Los Gatos, sometimes have a very specific buyer demographic. Many buyers are looking for homes that fit the "beachy" or "modern" vibe, with properties that may reflect the area's natural beauty. In places like Capitola or the beachfront areas of Santa Cruz, the charm of the location often outweighs the need for a fully renovated interior. Buyers might be more drawn to the coastal lifestyle and less concerned with modern finishes if the home is in good condition.
Buyers in these regions may prefer to purchase a home that allows for their personal touch or minor updates rather than one that has been fully remodeled. There’s also the appeal of owning a historic or character-filled property, which can be a more significant selling point in a town like Santa Cruz than a cookie-cutter market.
5. Just Putting a Yard Sign Up and Hoping for the Best
The time has passed when a basic yard sign would make your property sell. Shoppers conduct most of their research over the internet, and if your property isn't accessible, you may miss out on real buyers.
In 2024, many home buyers kicked off their journey online, with 43% saying that their first move was to browse for online properties. On top of that, 21% of buyers decided to contact a real estate agent as their first action. Today's savvy buyers use Google searches, typing phrases such as Scotts Valley homes for sale, Santa Cruz homes for sale, or Los Gatos homes for sale. If your listing is not optimized for search engines, it may not show up in these important search results. Ensure your listing is easily findable through a fast Google search or a voice search with Siri or Google Assistant.
Facebook and Instagram have become key platforms for real estate discovery. Buyers frequently browse through local groups dedicated to specific areas like Los Gatos homes for sale, San Lorenzo Valley homes for sale, or Capitola homes for sale. Paid ads on these platforms can also target the right audience, ensuring your listing reaches potential buyers where they’re most active.
With AI-powered tools like ChatGPT and voice assistants becoming more common, buyers are increasingly asking AI for help finding homes. They might ask, “Show me Watsonville homes for sale” or “Find me homes for sale in Soquel.” Ensuring your listing appears in these AI-driven searches can give you a competitive advantage.
Let's face it—managing everything by yourself can seem quite daunting. There's much to balance, from enhancing your online listing to overseeing social media advertisements and staying current with AI-powered searches. That's the moment to involve a specialist who understands the ins and outs. A skilled agent will help promote your property across Google, Facebook, and Instagram, using AI and smart digital strategies to ensure your listing gets the visibility it needs.
6. Selling Without an Agent
Why pay agency fees if you can list your home on the market yourself? It sounds tempting, doesn’t it? With so much online information, it's easy to think you can handle the process independently as a DIY project. But before you dive in, trade with caution.
A 2024 survey by the National Association of REALTORS® shows that only 6% of home sales were For Sale By Owner (FSBO). The numbers speak for themselves: the average FSBO home sold for $380,000, while agent-assisted properties fetched $435,000. That’s a significant difference.
A skilled agent brings a wealth of expertise, including:
- Local Pricing Insights: A good agent understands current market trends and can help you price your home competitively to attract serious buyers.
- Negotiation Skills: With experience on their side, agents are better equipped to handle negotiations, often securing a higher sale price than what sellers might manage on their own.
- Renovation and Staging Guidance: They know which improvements or staging strategies will yield the best return on investment.
- Marketing Know-How: Agents have access to tools like the MLS (Multiple Listing Service), which expands your home’s exposure to a wider audience. Without this, your property might miss out on potential buyers.
They also handle all the legal details, ensuring paperwork and disclosures are accurate—something that can protect you from costly mistakes.
Guidance
If you’re looking to sell your home in Scotts Valley, Aptos, Los Gatos, or anywhere in Santa Cruz, a knowledgeable realtor, can help you get the best deal with less hassle.
Paul Burrowes, CRS, CCEC, SFR, NHCP, LHC, REALTOR® Licensed REALTOR® with over 15 years of experience and expertise. Commits to being on time and transparent. Acts as your consultant to ensure you make the best decisions to fit your transaction at every step in the process. Negotiates towards a low-stress, win-win outcome. Handles all the details for you, ensuring the hundreds of steps in your real estate transaction go smoothly. Proudly serving Silicon Valley, Santa Cruz, Monterey, and Santa Clara Counties! | DRE# 01955563 | (831) 295-5130 | paul@burrowes.com |
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