HGTV aired a special presentation this weekend of the 25 Biggest Real Estate Mistakes people make when buying or selling their homes.  In case you missed the airing here are the notes I jotted while viewing the episode.  To cut down on the suspense I have reversed the list for you.

1. Not staging or showcasing your house

• look at your house objectively, from a buyers perspective
• appeal to the largest number of people
• make minor enhancements
• hire a stager to come in and arrange furniture
• potentially increases price by 7% and reduces time on the market
• best investment you can make
• DON'T: show your house "as is"
• DO: stage your home to maximize its best selling points

 2. Setting your sale price too high

• owners tend to be greedy - house is worth what others are willing to pay for it
• if priced too high you are appealing  to the wrong market - won't get buyers to come back even when the price gets down to the right price
• look at comparables of SOLD homes - price in the middle of the comparables price range
• once you reduce the price, it looks like something is wrong with the house
• DON'T: set an unrealistic sale price
• DO: research the comps to come up with fair list price

3. Buying what you want, not what you need

• buying a house is an emotional experience - take the emotion out of it
• look at your current space to see what you really need
• make a list of needs and shop the needs
• 9 years is the average time we stay in each house - trade up a few times to get your dream home down the road
• DON'T: let your emotions get the best of you
• DO: make a list of what you really need from a home

4. Overlooking hidden costs

• remember the cost of furnishing the home
• costs to consider: insurance, property taxes, utilities
• maintenance of a home averages 1% each year
• DON'T: assume your mortgage payment is your only monthly expense
• DO: think ahead and factor in other costs

  5. Not getting a professional inspection

• saving a couple hundred bucks on a home inspection can cost 10's of thousands later
• they inspect things not visible to the human eye
• owners may have patched problems so you can't see them
• search American Society of Home Inspectors for a professional in your area
• insist the inspection include a written report with photos
• DON'T: skip the home inspection
• DO: invest the money and hire a professional inspector

  6. Falling for the first property you see

• emotions can cause us to overpay for a property
• look at what else is out there on the market
• view at least 3 other properties
• don't rush into it, sleep on it
• DON'T: fall for the first house you see
• DO: look at several homes before making a decision

  7. Skipping the loan pre-approval step

• knowing what cost you can afford helps in the shopping process
• people take you seriously if you are pre-approved
• some realtors only show if have pre-approval letter
• DON'T: house hunt without a pre-approval letter
• DO: get pre-approval to help you close the deal

  8. Doing major renovations before you sell

• won't recoup the investment of a major renovation
• cost more than expect
• take longer than expect
• don't know if buyers will want your renovations
• minor upgrades are good: example, increase curb-appeal
• DON'T: undergo major renovations before you sell
• DO: focus on small changes

  9. Not being proactive at your closing

• closing time can be hectic, you're stressed throughout process, you're excited to close, and may not be not thinking rationally
• look at the closing documents ahead of time
• know closing costs ahead of time (HUD 1 form) - 24 hours in advance
• schedule in morning so don't feel so rushed
• do a final walk-through before close
• DON'T: go to your closing unprepared
• DO: read paperwork in advance

  10. Visiting a house only once before you buy

• need to look at everything in house
• may be different depending on day of week and time of day (noise, traffic, etc.)
• drive by at dawn, dusk, midnight
• DON'T: buy a house after only one walk-thru
• DO: visit the house several times and at different times of day

  11. Not setting a realistic budget

• pre-qualify for a loan does not mean you can afford the payment
• be realistic about your budget
• should have equivalent of 6-9 months worth of mortgage payments in the bank
• DON'T: budget for more than you can afford
• DO: budget based on actual spending habits

  12. Buying the most expensive house on the block

• most expensive house on the block will have a smaller appreciation
• takes longer to sell
• DON'T: fall for the priciest house on the block
• DO: find a house that will appreciate in value

  13. Not realizing the time and effort in a For Sale By Owner

• there is more involved in selling a house than you think
• FSBO won't get on the MLS
• you are not a professional and don't know how to sell a house
• have to be willing and able to show the house whenever you are called
• need lawyer at closing if FSBO
• you can't know everything - take precautions
• DON'T: think selling your house is simple
• DO: homework and understand everything that's involved

  14. Picking the wrong agent

• treat it like a job interview
• find an agent that lives in neighborhood you are interested in
• referrals
• attend open houses and observe how they interact with others
• meet with agent in their office - see if they're organized, check out their working environment
• look for best advocate
• DON'T: choose a real estate agent at random
• DO: take the time to find the right one

  15. Believing every word of a real estate ad

• advertising is  meant to get you to view the house
• cozy = little
• as is = lots of work
• up and coming = bad neighborhood
• motivated seller = red light - may be reason behind why
• if it sounds too good to be true, it probably is
• DON'T: assume that every ad is fact
• DO: learn to decipher real estate lingo

  16. Buying without actually seeing the property

• virtual tours and photos can be deceiving - wide angle camera
• need to see in person to get true sense of the house
• hire an inspector to look at property
• DON'T: buy a house without seeing it in person
• DO: have someone you trust examine it

  17. Not thinking about resale

• think about resale when thinking about an expensive remodel
• don't "go too far"
• personalized renovations may not appeal to others
• DON'T: think short term when remodeling
• DO: think about the long term resale potential

  18. Failing to market your home in different ways

• utilize all marketing possibilities
• set up with Realtor from the initial signing of the listing contract
• virtual tours, web, floorplan, radio channel as drive by listing
• creativity counts
• DON'T: market you home with just a "for sale" sign
• DO: explore other marketing tools to sell your house

  19. Treating real estate like the stock market

• real estate experiences slower moving price shifts than the stock market
• buy/sell does not happen much in real estate
• DON'T: gamble on short term real estate investing
• DO: buy a home for long-term investment

  20. Waiting until spring to sell your house

• best time to sell is based on personal circumstances
• talk with your team of professionals
• DON'T: wait until spring to put your house on the market
• DO: emphasize your home's seasonal amenities

  21. Trying to make the "hard sell" at an open house

• don't be around when buyers are looking at your house
• detracts and distracts a buyer
• buyers are uncomfortable giving feedback to agents - feedback is to your advantage
• DON'T: Stick around when potential buyers show up
• DO: leave and let your agent show off your house

  22. Thinking auctions equal a good deal

• research comparables
• look into the fees and charges of the auctioneer
• check liens on the property
• stay strict with budget, don't get wrapped up in emotions
• DON'T: Let your emotions cloud your decisions at auctions
• DO: research before you pick up that auction paddle

  23. Not researching the neighborhood

• location, location, location!
• check out school system
• make sure the amenities you enjoy are close-by
• DON'T: Buy before researching the neighborhood
• DO: Learn everything you can about the area and the amenities

  24. Not providing easy access for showings

• lockbox
• available 8am-8pm
• make sure there is readily available parking
• DON'T: Make it hard for potential buyers to see your house
• DO: Make your house easily accessible to potential buyers

  25. Buying a house for its decor

• don't confuse gorgeous with the right house for you
• measure dimensions of new home and your own furnishings
• think about your own lifestyle - look at functionality
• DON'T: Buy a home because you adore the decor
• DO: Focus on the floor plan and square footage

The episode will be aired on HGTV again on September 21, October 22, November 14 and November 15. 

Copyright 2008 Simply Staged, LLC  All rights reserved.