Deadly Mistake No. 1: Pricing Incorrectly

Every seller wants to get as much money as possible when selling a home. A listing priced too high often results in less money for the seller. If your home is not priced competitively, people looking in your price range will reject it in favor of other, larger homes for the same price. At the same time, the people who should be looking at your home will not see it because it is overpriced! Overpricing usually increases time on the market, and adds to the carrying costs. Ultimately, many overpriced properties sell below market value.

Deadly Mistake No. 2: Failing to "Showcase" the Home

Buyers are looking for a home to live in, not just for a house. Owners who fail to make repairs, such as sprucing up the house, touching up the paint and keeping it clean, washing windows, etc., can chase away buyers. If you were selling a car, you would wash it, or maybe even detail it to get the highest price. Houses are no different.

Deadly Mistake No. 3:   Using the "Hard Sell" During Showings

Buying a home is an emotional decision. Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own. People like to "try on" a house and see if it is comfortable for them. It's difficult for them to do that if you follow them around pointing out every improvement that you've made. It may even have the opposite effect you want.

Deadly Mistake No. 4:  Mistaking Lookers for Buyers

For Sale by Owners nearly always get more activity than homes listed with an agent. No question about it, Realtors will only bring qualified buyers. A qualified buyer is one who is ready, willing and able to buy your home. We find that most people who look at For Sale By Owners are just starting to think about moving. They may be good buyers, but they are six to nine months away from being ready. They don't want to bother an agent yet, so they call the "By Owner" ads to get a feel for what's available. They may have a house to sell first, may need to save some more money or may have credit that needs fixing. When everything is in place, that's when they go looking with an agent.

Deadly Mistake No. 5:   Not Knowing Your Rights and Obligations

Real estate law is extensive and complex: the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections and remedies for title defects. You must know whether the property can legally be sold ''as is" and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if the title or the property is in conflict with local restrictions, you or your Realtor must remedy them. Also, current laws allow the buyer an option period to inspect and approve of any inspection reports and repair bids. Know your alternatives here, or contact a professional REALTOR.

Deadly Mistake No. 6:   Signing a Listing Contract with No Way Out

Many times an agent will have good intentions about marketing your home, but circumstances can change. In cases where the agent isn't performing, you should have the right to fire your agent. In some companies the broker will assign your listing to someone else in the office, someone you didn't personally select. Always protect yourself by getting a guarantee of performance which gives you the right to cancel anytime for any reason.

Make your home more appealing for yourself and for potential buyers with these quick and easy tips:

1. Trim bushes so they don't block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your
    porch.
4. Put new doorknobs on your front door.
5. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade your outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles.
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.

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10 Ways to Make Your House More Salable

1. Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage. 2. Wash your windows and screens to let more light into the interior. 3. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for. 4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows. 5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs. 6. Make minor repairs that can create a bad impression. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they'll give buyers the impression that the house isn't well maintained. 7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway. 8. Patch holes in your driveway and reapply sealant, if applicable. 9. Clean your gutters. 10. Polish your front doorknob and door numbers. Back to main reports page   5 Ways to Speed Up Your Sale 1. Price it right. Set a price at the lower end of your property's realistic price range. 2. Get your house market ready for at least two weeks before you begin showing it. 3. Be flexible about showings. It's often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you'll find a seller. 4. Be ready for the offers. Decide in advance what price and terms you'll find acceptable. 5. Don't refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price. Back to main reports page   What You'll Net at Closing To find out how much money you'll net from your house, add up your closing costs and subtract them from the sale price of the house. Closing Costs for Sellers Mortgage payoff and outstanding interest. Prorations for real estate taxes. Prorations for utility bills, condo dues, and other items paid in arrears. Closing fees charged by closing specialist. Title policy fees. Home inspections. Attorney's fees. Survey charge. Transfer tax or other government registration fees. Brokerage commission. Total Back to main reports page   7 Terms to Watch For in a Purchase Contract 1. The closing date. See if the date the buyer wants to take title is reasonable for you. 2. Date of possession. See if the date the buyer wants to move in is reasonable for you. 3. The earnest money. Look for the largest earnest money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer. 4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it's acceptable. 5. Repairs. Determine what the requested repairs will cost and whether you're willing to do the work or would rather lower the price by that amount. 6. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won't drag on and keep your sale from becoming final. 7. The contract expiration date. See how long you have to make a decision on the offer. Back to main reports page   Remodeling That Pays Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it's time to sell? A 2003 survey by Remodeling Magazine and REALTOR Magazine has the answer. To see the complete article, visit http://www.realtor.org/rmomag.nsf/pages/costvaluedec03     2003 2002 Variance Bathroom Remodel    Midrange 89.3% 87.5% 8.3% Upscale 92.6 91.0 8.6 Bathroom Addition Midrange 95.0 94.2 4.7 Upscale 84.3 81.4 2.8 Major Kitchen Remodel Midrange 74.9 66.6 8.3 Upscale 79.6 79.8 -0.2 Master Suite Midrange 76.4 75.1 1.3 Upscale 76.9 76.8 0.1 Family Room Midrange 80.6 79.5 1.1 Deck Midrange 104.2 N/A* N/A* Basement Remodel Midrange 79.3 78.7 0.6 Siding Replacement Midrange 98.1 79.1 19.0 Window Replacement Midrange 84.8 73.8 16.6 Upscale 87.0 77.0 26.7 Attic Bedroom Midrange 92.8 N/A* N/A* *Not included in the 2002 report Back to main reports page   Is Your Buyer Qualified? Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer's financial status before signing the contract. Ask: 1. If the buyer has been pre-qualified or pre-approved (better) for a mortgage. Such buyers will be in a much better position to obtain a mortgage promptly. 2. Does the buyer have enough money to make a down payment and cover closing costs? Ideally, a buyer should have 20 percent of the home's price as a down payment and between 2 and 7 percent of the price to cover closing costs. 3. Is the buyer's income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance). 4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report. 5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage. Back to main reports page