This 2-part series looks at the 11 Worst Mistakes Sellers make when selling their home . . .

So you’ve decided to sell your home. Selling a home is stressful enough. There is a lot of “behind the scenes” action taking place that you may not know about. Contrary to public perception, your listing agent does not usually attempt to sell your home to individual home buyers. That wouldn’t be a very efficient process.

Your listing agent markets and promotes your home to the other local agents who work directly with home buyers. This dramatically increases your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients…

Unless these mistakes are being made.

1. You overprice your home in an attempt to get the best price and by doing so actually end up selling for less.

If you and/or your agent have overpriced your home, fewer agents will preview your home. They are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, they will not waste their time, preferring to preview homes that are priced realistically. If you do successfully sell at an above market price, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last few months and current market conditions do not support your sales price, the house won’t appraise. You deal falls apart. You can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your house could be forced “back on the market” at a lower price. Price it right the first time.

2. Hire the wrong agent believing every agent is created equal and they all do the same things.

The real estate profession is constantly changing and the best real estate professionals stay on top of those changes by continuing their education. Look at more than one agent’s presentation and consider the advantages and disadvantages of each. Inquire about “professional designations” that show they have taken additional specialized courses. Making an impulsive decision when caught up “in the moment” could be difficult to correct later. You will normally contract to list your house with the agent for a specific period of time. If you find yourself unhappy with the service you receive, you may find yourself unable to “switch” to another.

3. They wait to sell thinking the market will be better if they wait.

There is no “single” answer to this predicament but there are certainly things to consider. The housing “market” is really a series of hundreds of local “markets” made up of thousands of neighborhoods, so current market conditions vary widely from place to place. A good real estate agent will be able to tell you honestly if inventory is rising faster than buyers are appearing in your area. Consider that other would-be sellers may be holding off as well, waiting for an upturn in the market. This delayed selling may introduce still more inventory on an already sluggish market. Keep in mind that in any housing market there is always a buyer — if the price is right. One reason houses aren’t selling well in some areas is that some sellers are waiting for prices to recover and are unwilling to acknowledge that they may have to settle for a little less.

4. Don’t get the home in showing condition.

A potential buyer has made up their mind ten seconds after they step in the front door.  They were already forming an opinion as they pulled into your driveway! That really doesn’t leave too much room for fault. To achieve the greatest possible outcome, a home should always be presented at its best the first time around. Properties in prime condition are a pleasure for real estate agents to show, so they get shown more often. The more exposure a property gets, the better the chance of selling it quicker and for a higher price. Buyers pay a premium for a home that is in top-notch, move-in condition, so once you decided to sell, make sure the home is ready to be sold.

5. Do the wrong updates or upgrades to ready a house for sale.

You have to discover what needs to be done to your home. A thorough property inspection up front will help to identify problem areas. Any buyer will have a property inspection done before closing the sale. Most often, this is when they will re-negotiate the price because of any problems that may turn up in the inspection. Having your own inspection done and making all necessary repairs first removes this opportunity for the buyer to try and re-negotiate. This also reassures potential buyers that you are conscientious homeowners and will relieve some of their anxiety about buying a home.

6. Hire agents for the wrong reason.

A snap judgement isn’t good. You must do your homework! Determine if the agent is competent and the best way to do that is to check up on references. Ask for references on recent sales — check up on references of recent customers. Find out how an agent’s customers feel about their selling experience. Some agents tell you what you want to hear to get your listing but then fail to deliver. Use tough standards when selecting an agent, just as you would when hiring an attorney, a doctor, or an accountant to handle your taxes. The wrong agent will ultimately cost you in time, money and a lot of stress.

Stay tuned for Part 2, on February 3rd, 2010 . . .

Oh my gosh, I neglected to complete my posts of market updates over the past 2 weeks! I compiled the data into the usual charts, then got busy with Holidays, and only just today realized I had not done the actual posts. In the sake of expedience, I’m going to just present the charts, without any of my usual pithy commentary for those two weeks – I’ll insert the charts at the bottom of this post.

So, how has the market been so far in 2010? SLOOOOOOOOW might be one word for it! That’s okay though, because there’s still nothing much in the way of inventory, interest rates went up this past week, so everyone will get off that splintery fence soon enough!

Here’s the weekly Total Market Overview:

And the Annual Summary of Activity:

And, finally, the Absorption Rate:

Absorption Rate Chart December 25th, 2009

Absorption Rate Chart December 31st, 2009

Absorption Rate Graph December 25th, 2009

Absorption Rate Graph December 31st, 2009

Total Market Overview December 25th, 2009

Total Market Overview December 31st, 2009

Annual Summary of Weekly Activity December 25th, 2009

Annual Summary of Weekly Activity December 31st, 2009

46. Be Honest in Your Disclosure
When selling a property, you are required to disclose any potential flaws associated with the property. If you are not honest in your disclosure or if you try to hide things from the buyer, you could end up losing the sale, or worse, losing money in court after a sale goes through. If you are unsure about what needs to be disclosed, speak with a real estate lawyer who is familiar with the disclosure laws in your state.

47. Stage Your Home for the Appraisal
Buyers will be required to get an appraisal before they can be issued a home loan. You should stage your home for this appraisal just like you would for a showing. The more money the house is appraised for, the more likely the borrower will be to get approved for the loan and go through with the purchase.

48. Get More Exposure
If you have done everything you could to sell your home and you still haven’t achieved a sale, you might not be getting the kind of exposure you need. If people don’t know that your house is for sale, you have little chance of selling it in a timely fashion. If you have a real estate agent, make sure they are actively trying to sell the home. If you are working without an agent, advertise everywhere you can and then have an open house to attract potential buyers.

49. Use Feedback to Make Improvements
If you are getting potential buyers but no offers, you will need to find out what the problem is. It might be the price, it might be the layout of the home, and it might be the size of the yard. Whatever the common complaint is, you can use it to your advantage and make the desired improvements. The feedback you receive may turn out to be just what you need to sell on your terms.

50. Add a Fresh Coat of Paint
A fresh coat of paint can work wonders on everything from walls and ceilings to fences and shutters. Because painting is so inexpensive, it is one of the best ways to improve offers without spending a lot of money upfront. Just remember to keep things light and neutral. Some buyers shy away from bright, bold, or dark colors.

41. Be Willing to Negotiate with Buyers
The offers you receive from buyers may be well below the asking price of the home. Instead of responding to an insulting offer with a flat out refusal, negotiate. You don’t have to drop the price significantly, but you can come down by $1,000 and give the buyer another opportunity to evaluate the offer.

42. Pay Discount Points for the Buyer
If you don’t want to come down on the price, there are other things you can do to sweeten the deal for the buyer. One thing in particular involves paying discount points on the buyer’s home loan. A few thousand dollars out of your pocket can lower the buyer’s interest rate and make them eligible for a nice tax deduction. In this scenario, everyone wins because you get your asking price and the buyer gets lower mortgage payments through the life of their loan.

43. Pay the Buyer’s Closing Costs
Homebuyers, especially those making a large down payment, often have a difficult time paying closing costs on their home loan. If you want to give the buyer an extra incentive to purchase your home, you could offer to pay the buyer’s closing costs. On average, it costs between $2,000 and $4,000 to close on a home loan. While this may mean an additional out of pocket expense from you, it could be all the incentive a buyer needs to choose your home over another.

44. Offer the Buyer Extra Incentives
Homebuilders who want to unload inventory quickly offer special incentives to attract and sway buyers. These incentives include everything from offers to pay condo fees to cash rebates paid out after purchase. You can use similar marketing gimmicks to get buyers excited about your home.

45. Compare Offers Carefully
If you get more than one offer on your home, you will want to compare these offers carefully before making a decision. Keep in mind that purchase price isn’t everything. Other items to consider include the buyers’ financial qualifications, contingencies within the purchase agreement, and clauses that favor the buyer.

36. Hire a Photographer
Many buyers begin their search online or by looking at pictures that real estate agents have sent to them via email. If you want your home to be one of the first that a buyer sees, you may want to consider hiring a professional photographer to take shots of the outside of the house and the best rooms inside the house.

37. Have Several Open Houses
Open houses are a traditional and effective way to sell a home. By staging an open house or two, you can get a whole group of buyers and buyer’s agents in on one day. Having several different people looking at the house at one time could bring in multiple offers and a higher selling price.

38. Leave the House During a Showing
Unless it is unavoidable, you should not be present during a showing. Potential buyers may feel like they are intruding if you are home, and as a result, may not get a proper look at the place. If you are present during a showing, do your best to stay quiet and out of the way.

39. Be Prepared for Unexpected Requests
More and more frequently, buyers are requesting that specific items or perks be included in a sale. Often times, willingness to satisfy these requests can make or break a sale. It may be a good idea to decide in advance what you will and won’t be willing to sell or offer with the house.

40. Sell the Home with a Warranty
Home warranties can be purchased by sellers for minimal fees. Selling your home with a one year warranty can make your home very attractive to buyers, especially if you have older appliances or an outdated heating system. And because this warranty can be purchased at closing, you aren’t out any money if the home doesn’t sell immediately.