Selling your home can be less nerve-racking if you have an idea of what to expect. Since most people do not buy and sell homes often enough to become expert at the process, they must rely on real estate professionals. In this article, I continue my admonitions to help you avoid common, and often costly, mistakes.

DON'T take for granted that a fast offer (soon after the house goes on the market) means either that you underpriced your property or that you will get a better bid.

DO be receptive to the offer. It probably means  your agent did a good job in pricing and marketing. Compare the price to what your Realtor, at the time you listed, said might be the most likely scenario. If it is close, consider the strong possibility that the next offer (if there is one) may be less. If that occurs, you will appreciate what you gave up, but it will be too late. As a rule, in the absence of multiple offers, the first offer tends to be the highest. This holds only if the asking price is not outrageously over market value.

Even in "hot" areas, where it is considered a seller's market,  presumption can backfire on the seller. I have witnessed competitive offer situations mishandled to the point where all the buyers disappeared, much to the seller's detriment.

Overconfidence can be reflected not only by the rejection of a reasonable offer, but also by an agent's pronouncement that "offers will not be looked at by the seller until (a certain date)."

I have never understood the logic of a seller refusing to review an offer. If showings to buyers are allowed only after the brokers' tour (so the house gets full market exposure), it is to the seller's advantage to examine a buyer's contract. The seller can always counter or reject the offer. He can also withhold a response for a day or two if he thinks other contracts are forthcoming. Regardless, no one knows when the market will change and offers should always be welcomed and respected.

There are some agents who will vigorously disagree with my position. They will testify about how their sellers have benefited from multiple offers created by holding off presentations during the first week of marketing. This can and does happen.

I also know from experience, however, that multiple offers often do not materialize as expected. In those instances, the leverage goes to the buyer whose offer was held back, and who now knows the property is not as popular as portrayed. We are assuming, of course, that the buyer is willing to wait around. If he does, this can result in his lowering the bid and taking a tougher negotiating stance. When that happens, the seller is the loser and his agent shares responsibility in the loss.

DON'T be ignorant of the provisions of the purchase contract and other, related addenda and paperwork.

DO carefully read the contract clauses and sign only if you understand the documents. You can either take responsibility before you commit, or try to extricate yourself from an unwanted agreement afterward. I do not recommend the second option.

Before choosing an agent, ask him or her to explain which clauses benefit you and which benefit the buyer. Select an agent who knows contracts and how to represent you.

DON'T forget to clean off slippery walks, steps and decks during the rainy season.

DO remove moss and wet leaves and keep all outside walking areas well maintained. I have ungracefully fallen on my kiester several times on wet days because the seller had not considered the safety of visitors. Besides being a hindrance to the sale, it can also be a legal liability if a buyer or agent is injured because of this oversight.

DON'T neglect outdoor weeding and upkeep.

DO keep your grounds neat and well tended. Weeds, overgrown lawns and unkempt landscaping can detract from other favorable aspects of the property. If you cannot do it yourself, it is worthwhile to hire a gardener while the home is on the market.

DON'T hire "unknown" companies for pest control and other inspections.

DO ask an experienced local agent for recommendations. An example of this happened just today. I have been in contact with a couple who are thinking about selling their home. They invited me over to discuss their situation.

During our conversation, they informed me they had recently ordered a pest control inspection. They had thought about asking my advice, but went ahead with people who had been referred to them.

Unfortunately, the firm they chose is not one commonly used by the real estate community. The frequently selected companies have earned our trust by establishing a track record of reliable service and integrity. New outfits are suspect because we don't know if they will stand behind their work when there is a problem.

Had the sellers called someone from the  list I would have provided, they would have benefited in two ways:
    1) They would not have to pay $85.00 for a further inspection of their exterior stucco walls. I would have set it up to have had all the inspections done during the inspector's first visit; and,
    2) they would have avoided the potential problem of a buyer (at his agent's prompting) asking for a new inspection from a "known" pest control operator. This can cause many complications (discussed in Not Just Termites, Part 1 and Part 2).

DON'T overlook the unfavorable impact of not having a garage.

DO treat this the same as too many steps or a busy street —  take it off the price. Most buyers require a secure place to park their vehicles.

DON'T withhold any negative information about the property.

DO tell your agent everything that is, or could be, a problem. Put it in writing on the Transfer Disclosure Statement. You are obligated by law to do so. Even if you had the work done, it is a good idea to disclose what went wrong and when it was fixed.

For example, a seller may not think to report a drainage problem repaired two years ago as it has not shown signs of water penetration since. If the drainage issue recurs after close of escrow, the buyer may look at the seller's failure to disclose as a fraudulent omission of a material fact. If the ultimate solution is a $15,000 drainage system, the seller could be liable for that amount plus legal costs.

"Forgetting" to communicate problems is not an acceptable excuse, especially if the item has an appreciable impact on the value or appeal of the home. Failure to disclose is behind most buyer lawsuits against sellers. As a point of information, when the seller gets sued, his agent is invariably also a defendant in the lawsuit.

DON'T take the process personally.

DO realize that your residence has a market value totally independent of you. The market will dictate the value and you need to accept that reality. Also bear in mind that selling a home is not a contest to see who is right and who is wrong. You want to sell so you can move on to the next phase of your life. Keep the big picture in mind and the experience will be more positive for you.

Final Thoughts

If selling a home was easy, there would be no need for residential real estate brokers. I have provided only a small sampling of sellers' do's and don'ts. The key to getting through the  selling experience with the least amount of trauma is understanding how important it is to choose the right agent —  someone whose advice you trust.

Related Articles: Sellers' Do's And Don'ts, Part 1; Not Just Termites, Part 1 and Part 2, Understanding The Market, and other sellers' articles (see index).