Even in a hot market,
mistakes can cripple your chances of a successful transaction. Here
are the 10 biggest.
By
Bankrate.com
You've advertised your home in the local
paper. You've planted a big "Open House" sign on your front lawn.
You've even baked cookies for potential buyers. Why aren't people
lining up at your door?
Selling a home is a complex, multifaceted
process. From choosing a trustworthy real estate agent to pricing your
home accurately and presenting it properly, the selling process can be
downright daunting, especially for first-time sellers.
As eager as you may be to close the sale --
perhaps you have a new mortgage or car waiting to be financed -- you
must not rush the process. Take the time to research the real estate
marketplace as well as the credentials of your potential buyers, and
never hesitate to bombard your agent with any questions you may have.
You don't want to fall victim to sellers' biggest 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 Terry Hankner, a Realtor with Comey & Shepherd Realtors
in Cincinnati. "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, Hankner says that 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, 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 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, a Connecticut real estate
agent and 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, declutter 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:
"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.
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 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. Poor
communication with your agent
Sellers should take a pro-active 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 prequalification 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
proofreading the closing statement
Carefully review the statement, including the loan balance, repairs
and other expenses detailed there to avoid last-minute surprises or
errors. Make sure you get an estimated statement a few weeks prior to
closing and compare the final statement to the estimated one.
