Eight Mistakes Home Sellers Make

Here are some time-honored mistakes sellers make and how to avoid them:

1) Pick the Realtor who gives you too high of a value on your home. Guess what, he wants your listing at any cost. Even if it sits there it looks good for him and  makes the phone ring from buyers that he can sell other houses to. And he can hold open houses in your living room to lure in potential buyers that he can also sell other houses to. Besides, he figures once you are locked in and worn down, you’ll lower your price. Go with whomever gives you the most realistic market analysis. You know the saying, “If it’s too good to be true...”

2) Be "an unrepresented seller, also known as, "For Sale By Owner." Of course there are people that sell their homes as FSBOs and do fine, but that's not the norm. This is a tougher market than it was even only last summer, and it is full of tire-kickers. For example, my friend's cousin, Sarah and her fiance, Bill started looking at houses. My friend called me with questions after the couple spent hours with FSBO sellers, going over surveys, and utility and tax bills. The sellers even handed over the property disclosure form. I asked if Sarah and Bill had been pre-qualified by a bank. "No," my friend  answered. "Can the couple afford it," I asked. No, but they were thinking they could offer the sellers $100,000 less. "Are Sarah and Bill ready to move," I asked. "Oh no, not for at least six months," was the answer. So, I like Sarah and her fiance very much, but they were not ready to be wasting some seller's Saturday afternoon just yet. Any buyer’s agent worth her salt would have asked the same questions, and only started walking Sarah and Bill through other people's homes when they were ready to buy. And a good seller’s agent would have made sure too, but, since the sellers were not working with realtors, that's not what happened.

So if you must list as a FSBO, go ahead and try it. Just don't spend too much time on it and miss out on the spring market. Then, when you are tired of spending money on ads, missing your kids' baseball games waiting for no shows, and having strangers tell you they loved your new pair of shoes in the back of your closet, or even "thanks for the decorating ideas," call a realtor.

3) Tell a realtor, "I need to get X amount of money out of my sale." Yes, it would be nice to pay the commission, put a fat down payment on a new house, and pay for your daughter's wedding off the proceeds of the sale, but, it doesn't work like that. Repeat after me, "The market is what it is." If you set a price too high for the market, your house will sit, you’ll get depressed and blame your realtor. You’ll get tired of cleaning up just in case someone comes to see it, but never does. You’ll avoid your neighborhood functions because you don't want to tell anyone why your house hasn't sold. Your listing will get stale and people will wonder what is wrong with your house. Understand that your property, no matter how wonderful you think it is, is only worth what buyers are willing to pay. And for a quick sale, use the low end of the estimate, which saves extra mortgage payments. Then, get on with your life.

4) Assume the big agencies can do more because you see their name everywhere. It’s more important that you are comfortable with your agent and confident in her abilities. While big franchises have plenty of qualified brokers and agents, they are also usually the first place new agents go. This is because they offer heavy training. Smaller, boutique agencies tend to have more seasoned agents and brokers because there aren't many training perks.

Another important point to remember is that your listing is not really with the agent, it's with the broker. And if that agent leaves, your listing stays. In smaller agencies, where your listing agent may be the broker/owner, obviously that happens less.

Also, don't make the mistake of thinking Big Agency X agents only show Big Agency X homes. This is simply not true, and in fact, against the law. It doesn't matter who has the listing, if it's the right house for the right buyer, it will get shown. Big agencies are fine, but smaller agencies can also be innovative. Don’t forget that the Internet, where the buyers really are, is the great equalizer.

5) Get Insulted. Don't get insulted when your realtor tells you honestly that she doesn't think it's worth as much as you do. Don't get insulted when she tells you that the paint is too dark, your views are not a great selling point, or your appliances are not top-of-the-line.

And don't be insulted if you get a lowball offer. Take it seriously, and try to get their offer price up by negotiating. Remember, it's business, not personal.

6) Assume you are an expert. Just because you've read the papers and listened to the guy that worked on your friend's roof, it does not make you an expert. Realtors really do have their ear to the ground. And they walk around a lot of houses with a lot of buyers. Realtors are also detached enough to really see the pros and cons in your house.

7) Make bad comparisons. Compare your sale of a two bedroom condo to a four bedroom house you sold twenty years ago and you might as well be comparing an apple to a rhinoserous. So, embrace this new listing as if it were a child. Every one is unique.

8) Let it make you crazy. Let’s be clear, selling your house is not fun. You have strangers strolling through your bedroom and you don’t know where you are moving yet. When you find yourself getting too emotional, take a breath. This too shall pass. It's only a house.

Enjoy your family, your health and all the blessings you have in life. Eventually, this house sale thing will be all sorted out and you will get on with your life.