Ten Mistakes That Home Sellers Make


Not using a professional Realtor to sell their home.
There is only one real reason that you would not want to use a Realtor and that is to save a real estate commission. The fact is that most sellers actually net more money when using a professional than they would selling the home themselves. Besides, one mistake on a contract and you could easily lose double what you would have paid your Realtor. In fact, buyers of For Sale By Owners are usually un-qualified or bargain hunters and rarely pay full market value. And, when it comes time to move, you have enough things to do much less worry about selling your home. To save money, time, headache AND to have your property exposed to most number of SERIOUS / QUALIFIED BUYERS select Realtor that knows your market.


Not carefully investigating the agent they select.
As in any profession, there are both good and poor real estate agents. Ask your potential agent about their experience and success in marketing properties like yours. Ask them to describe their marketing plan for your home and to show you examples of their latest advertising. It is always a good idea to ask for and call references. Compare both commissions and service! Remember, you get what you pay for! The specific agent you select is more important than the size of the company or the company they are part of.


Overpricing the house.
Overpriced houses take longer to sell and sell at below market value. Your agent will share current market information with you. Follow your agent's advice. Buyers will usually make a COMPETETIVE offer on a WELL PRICED listing before making a LOW offer on an OVER PRICED home. Ask your agent to share information about recent sales and other similar homes competing for your buyer.


Failure to get enough earnest money as deposit.

Earnest money is cash that the buyer places in an escrow account as a deposit on the property. Should the buyer default on the contract, they are at risk of losing this deposit to the seller. In a perfect world everything goes smoothly. But what if the buyers changes his mind two days before closing? Lets face it, it would be easier for a buyer to walk away from a Five Hundred dollar deposit than it would a Five Thousand dollar deposit. I would recommend that sellers get as much money as possible from the buyer and try for 3% of the purchase price as a deposit

Failure to fully disclose defects of the house and property.The law requires you to disclose any defects you are aware of in your home. Failure to do so can be a costly mistake. Your agent will assist you in complying with the law and in protecting you against costly litigation after the sale. Failure to properly disclose is a common mistake made by For Sale By Owners. Professional help is crucial.


Accepting a contingency contract.
This happens when a buyer and seller agree to sell a property with one or two major conditions. Most contracts have a financing contingency however the time period for this contingency should be limited to just a few days. In some cases buyers may insist on a home sale contingency. There are ways to structure the sales contract so that the seller could be released from the agreement if he receives another offer that is more acceptable. Consult your Realtor or your real estate Attorney to explore your options.


Being present while the house is shown.
Buyers feel uncomfortable when the owners of the house are present while they are looking at the home. They like to be able to talk to each other and ask questions of their agent. You should also remember that your potential buyer might be attracted to your home for entirely different reasons you were. Allow the showing agent to emphasize the property features most important to each potential buyer. Be smart; depart when the house is being shown.

Failure to keep the house in "Model Home" condition.
Make sure the house looks as attractive as possible. Keep it clean and neat, inside and out. Clean kitchens and bathrooms are essential. So are clean windows and a tidy yard. It is true that clean, well staged homes sell faster and for more money! So keep your home clean for all showings.


Agreeing to premature possession.
Whenever possible, avoid allowing the buyers to move in before they take title. Even with a written agreement, getting a tenant out is a difficult, costly and time-consuming affair.


Failure to adhere to the terms of the contract.
The contract you sign with your buyer is a binding agreement on both the buyer and you. Not allowing inspectors and appraisers access to the house, not making agreed upon repairs, not leaving personal property called for in the contract, not making the house available on the day of closing all lead to unnecessary problems. Your buyer expects you to adhere to the terms of the contract, just as you expect them to. If a question arises, speak to your agent.