Top Mistakes of Sellers in 2007

The 2007 residential real estate market was filled with anticipation of the real estate ‘bubble.' Though we'll only see a correction, home buyers and sellers made some mistakes that those looking to buy or sell in 2008 can put to good use in their transactions.

Here are some of the top mistakes made in 2007:

Sellers

-- Overpriced homes. Thinking back to bragging sellers at the water cooler or at the neighborhood cocktail party as little as a year ago, home sellers in 2007 overpriced properties in record numbers. After chewing up market time, the realization set in that it wasn't the same market as 2002, 2003 or 2004. Realistic pricing based on sold comparable's in the last six months illustrates to buyers that you understand today's market.

-- No Internet property marketing. According to The National Association of Realtors® more than 70% of all home buyers start their search on the Internet before contacting a real estate agent. Require any agent you list your home with to post a virtual (360 digital) tour and a minimum of eight indoor and outdoor photos on the Internet. CDs of your home are a great take-away for open houses.

-- Stop showings too early after contract. With a shift toward buyers for the first time in years, buyers remorse was on the upside in 2007. Many sellers lost valuable market time when taking their home off market too early after signing a purchase contract. Continue to show your home until you feel very comfortable that your buyers intend to go to the closing table with you.

-- Refused to pay buyers closing costs. For the first time in many years, buyers based on their strength in the market, asked for and received give-backs from sellers. Closing costs and points on mortgages were the most popular. Decide before offers come in, what your strategy is for dealing with give-back requests. In 2006 expect owner-financing to be the next buyer perk.

-- Exclusion confusion. As prices dropped, sellers began to strip fixtures and amenities in contract negotiations. Forget "if the price is right" and take down and replace grandma's chandelier and remove the mid-century refrigerator for sodas before you place your home on the market . Some simple ratios of home list price versus chandelier cost will convince you to not get distracted by personal property or must-keep fixtures.

-- Knowing your market and competition. Buyers in 2007 were very savvy with market times and available inventory. Home sellers who were out-of-touch failed to spend the time to visit competing properties at public open houses, study the competitions marketing and "listening" to the market. No or few showings, no second showings or purchase offers and unfavorable feedback indicate market issues with your home. Don't be the obstacle to selling your home.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on CBS The Early Show, Bloomberg TV, Fidelity Investor's Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.