The Most Costly Mistakes In Selling Your Home

Choose the right real estate agent to market your home. You must rely on your agent for accurate comparative sales statistics and pricing guidance. A good agent provides the facts to help you avoid the worst mistake you can make: overpricing. Alas, not all agents are good!

The right asking price is critical to the success of your sale. Many sellers price their property incorrectly because they choose to list their property with the agent who quotes them the highest asking price. With some highly optimistic agents this may be an honest onetime mistake. Sadly, with many it is instead a common and deceptive practice which insiders call "Buying the Listing".  Do not fall into this trap of listening only to what you want to hear!

What Happens When You Price Too High?

The wrong buyers see your property when it is new to the market and "hot". Buyers compare price, features, location, and condition of all the homes they inspect. If yours is priced too high, it will not compare favorably with others the buyers look at. Your competition has more to offer for the money.

Your home will not appraise at or near the asking price. Most buyers require mortgage financing and that means an appraisal by the lender. Appraisers look at similar homes in your neighborhood that have sold in the last six months. If you have a 3 bedroom ranch, it is not equivalent to a 4 bedroom colonial. No matter how much you love your house, the appraiser will not see it with the same nostalgia.

Your buyer can't get a mortgage. If you price your house at $100,000 but it is worth only $90,000, banks will not lend the money for a mortgage. Even if the buyer wants to pay $100,000, he can't complete the transaction because the bank won't okay the deal.        

You eventually sell for less than market value.  Picture this scenario - After three months at your too-high price and no action, your real estate agent persuades you to lower the price. (This is the same agent who was so optimistic in the beginning!) By this time your house is no longer a fresh, new listing. Buyers who might have been interested three months ago at the current price have all found other properties. New buyers wonder what's wrong with your house. Why has it been on the market for so long? What flaws did others see that made them pass up your offering? After three more months you lower your price again. Eventually a bargain hunter comes along and offers you bottom dollar. There are statistics to back up this phenomenon when you price yourself out of the market.

How To Price Correctly

It is absolutely imperative to find a real estate agent who will tell you the truth about the market value of your property rather than the high price you want to hear. In choosing the wrong agent you waste precious time, experience anger and frustration over the lack of activity, and eventually settle for less money on your sale.  To be fully informed when you pick a price, actually visit homes that you feel are comparable in size   and location to your home. Sunday open houses are a good source of information. Be honest with yourself and objective when you tour the properties. If the condition is better and the house has more features than yours, it has a higher market value.  Don't cavalierly pick the agent who quotes you the highest sales price. Carefully assess the homes that are your competition. Remember, if there are four tri-levels just like yours already for sale in your subdivision and only one similar house has sold in the last year--the market is saturated with a four-year supply of tri-levels. When you add yours, it becomes a five-year supply. If you need to sell you must price realistically. If you just want a lot of people walking through admiring your wallpaper, go with the agent who is most optimistic!

Helpful Hints to Sell Your Home

Look at the home as if you were a potential buyer. The following is a list of suggestions that will help you focus your efforts to present your home in the best possible manner.

The Exterior

Lawn:  The yard should be neatly mowed, raked and edged.

Trees/Shrubs: Should be pruned and shaped to compliment the property. Older or overgrown plants should be trimmed to make the best impression of newness.

Flowers:   Consider adding seasonal flowers. Consider top dressing the garden with mulch. Keep area weeded.

Sidewalks/Driveways: Should be swept and washed to remove debris, dirt and stains. Cracks should be repaired and patched.

Painting: Check the home for any needed maintenance just as a buyer would. Repaint or touch up as necessary. You can't find a better investment when you are selling your house! Don't let the outside turn buyers off before the inside turns them on. Sometimes just painting the trim will refresh the home. Consider a lighter color to update the home to the current preference for colors.

Doors/Windows: All doors and windows should be in good working order. Clean and paint doors if necessary, wash all windows and replace any broken or cracked window panes. Screens should be free of any tears or holes. Inspect all locks to ensure that they are functioning properly. Check rollers on sliders so that they move smoothly, replace as necessary.

Roofs/Gutters/Downspouts: Check for loose or missing shingles. Clean out gutters and down spouts. Touch up peeling areas on gutters.

The Interior

Atmosphere: When placing yourself in the potential buyer's shoes, you will want to consider the overall atmosphere of your home. Keep color, lighting and smell in mind as you go through the home.   Create an atmosphere within your home as one of shelter, a place that is safe and warm, and in good condition. Remove furniture or items to allow the rooms to appear more open and larger. Keep colors in light, neutral tones.

Smell:   A clean-smelling house creates a positive image in the buyer's mind. Be aware of any odors from cooking, cigarettes, pets, etc. that may have adverse affects on potential buyers.

Color: Be cautious when selecting colors when painting or replacing carpeting. The key is to promote your home to the largest segment of the buying market as possible. Stay with light, neutral colors - let the new owner choose their own color scheme.

Lighting: Take advantage of natural light as much as possible by cleaning windows, opening blinds and drapes, etc. Add lamps and lighting where necessary. Be sure that all fixtures are clean and have functioning bulbs. Increase the wattage of the bulbs in darker areas.

Walls: Check for peeling paint, loose wall paper. Consider replacing unusual or bold colors with neutral tones.

Floors: Clean all wall-to-wall carpeting and area rugs. Clean and polish linoleum, tile and wooden floors. Consider refinishing wood floors if necessary.

Closets: Empty closets of off-season clothing and pack for the move. Organize them to demonstrate the most efficient use of space. Minimize items on floor and shelves.

Furniture: Arrange furniture to give the rooms as spacious a feeling as possible. Consider removing furniture from rooms that are too crowded. Avoid clutter. Pack up knickknacks--both to protect them and to give the room a more spacious feel if necessary but leave enough items to give the home a personal touch. Dispose of unneeded items. Store large furniture if necessary.

Woodwork: Clean and polish all woodwork if necessary. Pay particular attention to the kitchen and bath cabinets.

Bathrooms:   Cleanliness is the key! Make sure that all surfaces are spotless and remove non-skid decals that are in poor condition. Replace worn or dirty shower curtains, clean and repair caulking, store all personal care products out of sight. Repair any faucets that leak or do not function properly.  Clean off mineral deposits with vinegar or commercial products. Clear off countertops. Clean and organize all cabinets and drawers. Shampoo throw rugs. Consider bringing out your best soaps and towels. Add a plant for color and freshness.

Fireplace:   Sweep and clean the fireplace. Place a few logs on the grate to create an attractive appearance. You are welcome to have a fire going during showings - it creates a great atmosphere.

Dining Room: Consider adding fresh or silk flowers, or setting the table with an attractive arrangement.

Kitchen: Avoid clutter - store small appliances whenever possible to maximize the appearance of work space. Clean and organize all storage space. Sinks, cabinets, appliances counter tops should be clean and fresh.

Storage Areas & Garage: Pack items neatly in boxes or arrange neatly. Sweep/wash garage floor to remove dirt and stains. Organize tools, garden equipment, etc.

Items Not Included In The Sale:  Remove (and replace if applicable) any items that will not be included in the sale of the property such as light fixtures.