I’ve written several columns reviewing what to do when you decide to sell your house, but it occurred to me that I might not have shared what NOT to do. Here are four recommendations to help you avoid expensive mistakes.
- Don’t Over-improve
As you contemplate putting your house on the market, think carefully before you take on major renovations. Some improvements are cost-effective and will yield a decent return (you’ll be able to increase the sale price to cover your construction costs and hopefully make a profit); others will not. Be mindful of what potential buyers would be willing to pay for if the house belonged to them. Let that guide your decisions about which improvements to undertake. You should complete needed repairs—if something’s broken, fix it. Go ahead and take care of deferred maintenance—if you need a new roof, now’s a good time. Definitely address pest and/or fungus problems—if you don’t take care of the termites, the new owner will have to.
A mistake I sometimes see occurs when a seller renovates to the point where his or her house no longer fits with its surroundings. In a neighborhood of 2000 square foot homes, don’t add 1500 square feet to make yours a 3500 square foot monstrosity. People looking for big homes want to live in neighborhoods where everyone has big homes. Would your house be as valuable if it were moved to an inner city neighborhood full of housing projects? Nope. While that’s a more dramatic example, the same principle applies to overbuilding in a middle class neighborhood.
Another mistake I see is the choice to convert a garage into a family room. Most Realtors will tell you, the increased value from the additional square footage in the new family room is almost exactly offset by the loss of the garage. It’s a wash. And when you add in the cost of the renovation, it’s a loser.
- Don’t Over-decorate
Décor is a personal thing, and it’s highly unlikely that you and the future owner of your property will agree on every style choice. (Most of us can’t even agree with our spouses on paint color.) So when it comes to the décor of a house you plan to sell, neutrals are best. While you may love your daughter’s pink walls and the green shag carpet that looks like the grassy meadow from a storybook, the prospective buyer with three sons is unlikely to be thrilled with these choices. Less is more. If you want to add a splash of color, buy fresh flowers and put them in vases around the house.
- Don’t Hang Around
Whether your Realtor is hosting an open house or bringing an interested buyer for a tour, your job is to be somewhere else (and take Fido with you). I know it’s tempting to stick around and answer questions about your house and the neighborhood. After all, who knows this information better than you? But trust me, you should leave and let your Realtor do their job. Buyers rarely feel comfortable expressing concerns about the house with the owner present. Instead, they will keep quiet and simply move on to the next house.
- Don’t Take Things Personally
When your Realtor relays questions from potential buyers, try to keep your emotions in check. When buyers ask for a credit so they can redecorate the princess room you spent years perfecting, try not to be offended. When they come in at a price that seems ridiculously low, recognize that they are simply doing their job: trying to get the lowest price possible. You have three potential responses to an offer: accept it, counter it, or reject it. An outright rejection is foolish. Counter the parts of the offer you don’t like and see where it goes from there.
If you have questions about real estate or property management, please contact me at firstname.lastname@example.org or call (707) 462-4000. If you’d like to read previous articles, visit my blog at www.richardselzer.com. Dick Selzer is a real estate broker who has been in the business for more than 40 years.