Home Team

 

5

BIG

FAT

ERRORS

IN

SELLING YOUR HOME

 

 

 

          If you are selling your home, it may sound like a heck of an idea to hire Aunt Marlene

as your listing agent. Sure, she's new to real estate and lives in a distant suburb, but why

not give her a shot? After all, she could discount her commission and still make money,

you reason.

 

          Error No. 1: Trying to make Aunt Marlene happy could make you miserable. Green

as she is, she's likely to do a less than splendid job marketing your home. And her lack

of expertise in your real estate market means she will have a harder time pulling in the

buyers than a good agent who works the territory regularly.

         

          Hiring a relative is one of the five most common, serious errors committed by home

sellers. Making this mistake could mean your home will sell more slowly and for less

money than it otherwise would.

 

          Error No. 2: Falling into the "gotta get" pricing syndrome.  "The market determines the price for which you're going to sell—not what you need to get out of a deal," says Daryl Jesperson, a senior vice president with Re-Max International Realty chain, based in Denver.

 

          Suppose, for instance, that a couple living in a modest three-bedroom colonial—call

them the Wilsons—decided to trade up.

 

          One Sunday, the Wilsons happen upon an open house at a new development for four

bedroom homes. They're taken in with the extra space, skylights, oversized bathrooms

and walk-in closets. In their enthusiasm, they sign a contract.

 

          To buy the contemporary, the Wilsons determine, they must sell the colonial for X

amount. Regrettably, the amount they need from the old house is $10,000 more than the

prevailing price for similar homes in their neighborhood, and they price the colonial at

the "gotta get" level.

 

          But it quickly becomes apparent to buyers that the colonial is priced higher than its

competition, and most won't even bother to visit it. That means that during the first 30

days of the listing—when the home should generate the most excitement—it gets few

lookers .

 

          Worse, the home becomes shopworn. As it languishes on the market, people become

suspicious that something must be wrong with it.

 

 

          Sure, the property will probably sell when the Wilsons come to their senses. But the

selling price might even be lower than the Wilsons would have received by properly

pricing the home at the outset.

 

          Error No. 3: Trying to "test the market" in terms of price.  Like the "gotta get" sellers, people who try a higher-than-market price with the notion that it can always be lowered hurt themselves.

 

          Of course, it's a free country. You can charge what you want for your castle—ignoring

the advice offered by any broker or appraiser you meet, but overpricing will sabotage

your sale, says Mary Jo Button, sales manager with the Prudential Preferred Properties

chain.

 

          Asking just $2,000 or $3,000 more than market value could mean the difference

between selling quickly at a good price and not selling for a while, she says. And remember, keeping your house on the market for a prolonged period imposes its own expenses, including carrying costs and upkeep.

 

          Error No. 4: Misrepresenting your property.  Sellers have a natural inclination to be positive about their property—and that's perfectly appropriate. On the other hand, misrepresentation works to the sellers' disadvantage, writes Peter G. Miller, the author of several books on real estate.

 

          Miller remembers visiting a home described on the listing as having five bedrooms.

What the listing failed to indicate, however, was that the living room had been carved

into two bedrooms. The place had no living room at all.

 

          "It was like a dormitory. I've seen better looking barracks," Miller says. While most

sellers wouldn't commit such an outrageous misrepresentation, there is a tendency to fudge about room sizes, screen porches, decks. or unfinished basements when they calculate a home's total square footage—when only living areas should be counted.

         

          "What you're doing is setting people up for a disappointment when you misrepresent

your home on the listing, and once they're disappointed, it's awfully difficult to recapture

their interest," Miller says.

 

          Error No. 5: Putting a house up for sale before cleaning the yard. Elements of yard

clutter can be serious deterrents to selling a home. Yard clutter lessens what's known as "curb appeal," says Jesperson, the Re-Max executive. Very likely the prospective buyer will be put off by the clutter even before getting out of the car.