4 HUGE SELLER MISTAKES

Picking the Wrong Buyer

Now more than ever, sellers need to select their buyers carefully. As we mentioned earlier, thanks to all the defaults in the subprime market, lenders are tightening their lending practices, making it more difficult for consumers to qualify for mortgages. So it's critical to find a buyer with a recent prequalification letter (issued no later than four to six weeks ago) for a loan.

Next, watch out for buyers who need to add contingencies to the contract, including a clause stating that the deal won't close until they sell their own home. A better bet is to look for cash-flush first-time home buyers or someone who has already unloaded his existing house. In a slowing market it's difficult to estimate how long it could take your buyer to find someone to purchase his dwelling. And if that property doesn't go for as much as he expected, that person may no longer be able to afford your agreed-upon price.

Not Responding to All Offers

What if you get an offer that's simply too low? Don't reject it outright. See if you can negotiate. First of all, you can't blame someone for testing the market -- after all, in today's market, many buyers are confident that they have the upper hand. Secondly, by entering into negotiations with one party, you'll gain leverage with other potential buyers. Most importantly, it allows you to tell brokers that your property is in play and sends a message that if someone is interested, then he better present a competitive bid quickly.

Just don't get cocky. During this process, it's crucial for sellers to set a realistic bottom-line price they're willing to take, even if it's several thousand dollars below asking.

Questioning the First Offer

Too many sellers reject their first offer, even if it's close to or at full asking price. Holding out for more money is a strategy that rarely works, especially at a time when credit is tight, lending requirements for mortgages are in flux and potential buyers have less purchasing power. (
The reality is that in any market a home's first offer is often its best. Typically, educated buyers will seize on a property they like -- with a competitive bid -- as soon as it comes onto the market, she says. Of course, given the glut of houses on the market, sellers should expect to receive some low-ball offers. Just don't assume that you'll get better bids the longer you hold out. The more time a home sits unsold, the greater chance a seller will have to reduce his price.

Asking Too Much

The single biggest mistake folks make is setting their asking price too high. In today's down market homeowners need to price conservatively or they risk turning off potential buyers.
Figuring out how to set the price is tricky. Gone are the days when you can expect to sell your home for as much as your neighbor did just six months ago. So rather than looking at how much homes in your area sold for six to 12 months ago, compare prices for similar properties currently on the market. If you see a listing for a house that's sitting unsold for a few months, chances are the owners are asking too much and you'll want to set your price lower.

Brian Fenstermaker has been listing and selling real estate for 20 years in the Brockton and surrounding towns which include, Abington, Whitman, Rockland, Holbrook, Stoughton, Avon, Hanson, Halifax, and the Bridgewaters. Brian has become a specialist with short sales. You can contact Brian by e-mail at befrealtor@aol.com.  Any questions you have about Listing and Selling a home, Brian can answer. He can also be reached anytime at 508-330-3036.