10 Things Sellers Shouldn’t Do

Number 10

Never, ever do these ten items.

Selling your home seems simple enough, but there are hidden dangers out there. Simple mistakes that could easily cost you a sale. Some are so simple that you’ll want to have a “I could have had a V8″ moment. Some are emotional gut checks. And some are just good practices to remember when going through the offer phase of negotiations. Stick with these ten things to not do when selling your home and the process will flow much more smoothly to the final days of closing.

  1. Stick around for the showings: It makes people uncomfortable. Buyers suddenly clam up if they feel they’re being watched by a stranger. They are less likely to really take time to go through and appreciate all that your house has to offer, and they may walk away with unresolved feelings about the home because they didn’t feel they could speak openly with their partner or agent with you around.
  2. Neglect the yard: First impressions are critical, and a good deal of that revolves around landscaping. Especially during times of drought, it is worth it to make sure those sprinklers are set correctly or to take the extra time to hand water. Buyers do notice if you have the greenest grass on the block. And they like it. Unruly bushes and trees suggest something unfinished or unattended to and makes them wonder about everything else.
  3. Take offers personally: Many buyers have been told that they can get a good deal on a home and a lowball offer may just be their way of testing the waters. They don’t know you personally. They aren’t trying to insult your property. They may just be trying to seem savvy in what they consider to be strictly a business transaction. Look at things from that perspective.
  4. Take repair requests personally: See above about the offers. And then also consider that some buyers may not have a handy bone in their body, so the thought of “arc fault protectors” may scare them half to death.
  5. Price yourself out of the market: We know your home is beautiful and you’ve put a lot of money and effort into it. But the truth is that the market is what it is and most of the time there’s nothing you can do about it. If your neighbors sold low because of a divorce or emergency job relocation, you may pay the price for that in your own sale. It’s not that anyone is against you making money, but more that there are some conditions you can’t control. If you’re priced too high, you could miss out on some valuable first days on market when the property is likely to gather the most attention. You may flat turn off some potential buyers and you may even have your house listed longer as it could stagnate. Really analyze the sales data and trust in the experts. It will pay off in the long run.
  6. Settle for good enough: Buyers are snatching up properties these days and the homes that are going quickly (often with multiple offers or above list sales prices) are those that have been well maintained and show impeccably. Take the extra time to plug in some air fresheners, to clean the windows, and dust the tops of those cabinets you don’t think anyone really sees most of the time. It’s the little details that can add up to make a big difference. Let your property shine and take the advice of your agents as to how to get your home to that next level of awesome.
  7. Pack up and move right away: Start making a plan, but unless you have to move, you’re better off waiting until a buyer makes it through the option period – and even the financing period – before getting those boxes out. Unpacking is never fun and neither is carrying the expense of multiple households should anything go wrong on the deal. Consider a leaseback as an option in the contract that could save you a lot of frustration in those final days before closing.
  8. Conceal facts: State law requires a seller’s disclosure and “forgetting” is not really an admissible excuse in court. Be as honest and forthcoming as possible about property conditions and save yourself a lot of headaches (and liability) down the road. Dig up those old receipts to show where a problem was resolved and keep good maintenance records to help with those memory glitches. If you’d want to know as a buyer, you should probably tell it as a seller.
  9. Turn down showings: If no one can see your house, no one will buy your house. Having your house listed for sale is a chore, but you have to participate to get your desired result. There are many times when it is really and truly not possible to show your house – family member’s illness, tornado in the living room, out of town company cramming their suitcases in every corner – and we get that, but try to be as accommodating as possible and you’ll likely get an offer as quickly as possible.
  10. Go it alone: Real estate purchase contracts are legally binding documents full of small caveats and provisions that you may not even consider when thinking of buying a home. Even when buying a new home, it’s completely worth it to use the expertise of a quality REALTOR® to provide a wealth of information and negotiating skill. From comps to property condition pitfalls to resale considerations and negotiating skills, agents deal with these matters day in and day out. Go with a pro.

image courtesy of yoppy

First Time Home Buyer Tax Credit – Gone, but not forgotten.

First Time Home Buyer Tax Credit - 2012

It’s been awhile since we’ve heard talk of the first time home buyer tax credit, but recently in our office it came up once again. No, there’s no new extension and no new credit to claim…instead the topic was, what happens if a homeowner sells their home before the three year occupancy requirement? Will the homeowner owe money to the IRS? (Please note: this post does not apply to the $7,500 tax credit from 2008 – this deals with the $8,000 tax credit from 2009 and 2010.)

For homeowners who claimed the first time home buyer tax credit in 2009 and 2010, the credit came with one caveat: you had to own and live in the home for a minimum of three years. As we are now in 2012, some homeowners are just beginning to hit the three year mark and questions are arising when they desire to sell their home.

If your three years have passed (three years from the closing date of your home purchase), you are free to keep the money from the tax credit and you owe the IRS nothing. For example, you would have had to have purchased your home in January of 2009 in order for your three year waiting period to be up January 2012.

What if you bought the home later in 2009 or somewhere in 2010? Based on today’s date (January 25, 2012), if you bought you home in late January 2009 or later, you’re still within your required three year ownership and occupancy period. Because of this limitation within the law, if you were to sell your home, you would have to repay the entire $8,000 tax credit back to the IRS (it would be added as additional tax to your next filing). If you had a zero balance when you filed with the IRS – you would now have an $8,000 tax liability due in full when you file!

If you do choose to sell within that three year period you will need to file a Form 5405 (the same form you used to claim the first time home buyer tax credit) with your returns. As with anything tax-related, we highly recommend you speak with a tax professional when filing or if you have questions. If you’re thinking of selling your home, be prepared to answer questions from your agent about when you bought it and whether or not you claimed the $8,000 tax credit – knowing this fact in advance can save any surprises down the road for you or your Kimberly Howell Properties agent.

image courtesy of 401K

San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed. KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.