Top 10 Seller’s Mistakes
1. Overpricing your home.
It's important to be realistic about the value of your home. "Sellers must
make their agents present them with objective criteria for pricing," says
a Realtor in Cincinnati, Ohio. "Comparative information is most critical
in getting a house priced properly." While all sellers are tempted to see
how much they can get for their homes, he says once you ask for too much, it's
hard to ask for less later on in the process. "You run the risk of buyers
thinking 'Oh boy, I wonder why they had to reduce this one. There must be something
wrong with it.'" To get a realistic assessment of your home's worth, research
the cost of similar homes in your neighborhood and price it accordingly.
2. Not displaying curb appeal.
You don't have to invest thousands of dollars into redecorating your home. But
there some basic steps you must take to present your house in the most positive
light. "When people drive by a home they're either turned on or turned
off. There's nothing more important than the exterior of your home," says
Richard F. Gaylord, a broker with RE/Max Real Estate Specialists in Long Beach,
Calif. "I once showed a home that was magnificent. But it had an old, ugly
front door that hadn't been painted in years," he says. "People were
only able to focus on that front door."
3. Overdoing home improvements.
Don't go overboard with staging your home. "You don't want your house to
be so pristine that it feels cold or so overdone that it looks like it's out
of a magazine," says Allyson Bernard, regional vice president for the National
Association of Realtors. "You want it to feel warm and welcoming."
Do, however, spruce up the yard, plant some flowers, de-clutter the home's interior,
rid the home of unpleasant smells, and apply fresh coats of paint to all walls
and doors.
4.Misunderstanding the buyer's offer.
Carefully reviewing and understanding the offer or purchase contract is imperative.
Here are a few things to look for: How much deposit the buyer has agreed to
put down -- is it a significant deposit? Has the buyer asked for some credits
to cover loan costs? Is the offer contingent upon the owner selling his or her
current home? If so, how is the selling process going? "In most cases that
contingency stays into effect until their deal closes so you better find out
if their home is priced properly," Gaylord says. "These kinds of things
are worth investigating."
5. Not getting your home inspected before listing it.
Have general inspections done ahead of time. Even though buyers will often have
the house inspected again, it's best to prepare for any potential problems.
"It can be very costly to the seller if he or she does not go ahead with
the inspection before the offer is placed," says Gaylord. "You don't
want to get stuck with a $7,000 fee because the termite, dry rot, and fungus
report determined that the wood in the foundation of your house had deteriorated
so badly that the whole house needs to be leveled."
6. Withholding information from potential buyers.
While it is tempting to hide or fail to mention the downfalls of a home -- perhaps
it's a haven for cockroaches or located in an area that's prone to floods or
earthquakes -- it is best to give buyers full disclosure. This kind of information
can greatly affect the value or desirability of the property.
7. Not being objective about your home.
While you may think your purple walls or poly-classic columns are great, it
is best to keep that opinion to yourself. "Sellers may feel they know their
home best but that doesn't mean they are the best people to sell it," Bernard
says. She recommends that sellers leave their home while the agent shows it.
"A lot of people feel uncomfortable looking at a home if the buyer is right
there. It's important to give the buyers space."
8. Poorly communicating with your agent.
Sellers should take a proactive approach to the selling process and not rely
solely on the agent. Sellers should insist upon regular updates about the house
and never assume the agent has taken care of everything. Ultimately, it is the
seller's responsibility to ensure everything is running smoothly.
9. Not investigating your buyer.
Once you have an offer on the table, it's important to secure letters of pre-qualification
or loan approval from the buyers. These letters should not only state that the
buyers' credit has been checked but also that it was acceptable to the lender.
Also, it's important to ask buyers to complete a loan application and submit
it to their lender within a few days after acceptance of the offer.
10. Not checking with your Realtor regarding the net sheet.
Be sure to check with your Realtor before the sign off to make sure all debits
and credits are properly applied.