Warning: 6 Deadly Mistakes To Avoid When Selling Your Ridgewood Home

October 2nd, 2008 categories:Ridgewood Real Estate

Do Not Make These Mistakes When Selling Your Home

by Guest Blogger – Ridgewood Real Estate Attorney Robin Gronsky

It can very difficult selling your house in today’s market. To increase your chances for a quick sale, you need to avoid these mistakes:

1. Buying a new house before selling your existing home- three or four years ago, many Ridgewood homeowners went looking at houses just for fun. Many times, they fell in love with a house and wound up buying it first and then putting their house up for sale. At that time, it was fairly easy to find a buyer for their house and getting a bridge loan to pay the mortgage on the old house until the sale went to closing. In these days of slow sales and tight credit, you might take several months to sell your house. And you may not be able to find a bank willing to give you a bridge loan. Few sellers have the money to pay two mortgages, two sets of real estate taxes and two sets of insurance premiums for six months or more. Sell your Ridgewood Home first and then go looking for a new house.

2. Pricing the house too high- we all know that Ridgewood Home prices have come down since the peak in 2006 but it’s still tempting to set a high price and see if you get any offers. That strategy doesn’t work in the market that we are currently in. Real estate agents and their buyers know what kind of house they should be getting for different price points and if your house is overpriced for what the market will bear, no one will bid on your house. A house that has not sold for months is overpriced. A house will sell in any market if it is priced right. A good realtor (Al Donohue) will show you current house sales prices to advise you on the price you should set. Listen to what price your realtor (Al Donohue) advises, after all, they are the experts in the job of selling a house.

Editors Note: Robin, I took a bit a poetic license in #2 above and inserted the name of a good local realtor. Hope you don’t mind.

3. Rejecting the First Offer- in this market, buyers may not offer you the asking price. They may offer 5-10% below your offering price. Do not be insulted by any offer. Holding out for more money may cost you several months of having your home on the market. Houses that are on the market for months turn off buyers and they start to give out very low offers, figuring that a desperate seller will take a lower offer just to get rid of the house. In many cases, they may be right. If the first offer is close to your asking price, or a buyer with a lowball offer is willing to negotiate, it may be worth to get a quicker sale. You do not know how long it will take to get your next offer.

4. Not Understanding the Contract You Have Signed – New Jersey contracts permit you to consult with a lawyer within 3 days of signing the contract. This is called “Attorney Review.” If you do not understand all of the terms in the contract that you have signed, ask your attorney to explain every term and every paragraph that you aren’t sure about. It may turn out that, when you do understand the contract, you want your lawyer to make changes during Attorney Review or even cancel the contract.

5. Refusing to Make Repairs – in this market, every defect that a home inspector finds will be used as leverage by your buyer for a decrease in the purchase price. No matter how much you took off your asking price in the contract, your buyer will still expect you to either repair all home inspection items or give them a significant credit against the purchase price.

6. Not Disclosing All Possible Defects – when you sell your house, you must complete a Seller Disclosure Form. This form asks about your knowledge of defects in the mechanical and electrical systems, whether the roof and basement are watertight, whether all permits have been obtained for any renovations, and any other problems that the seller is aware of. The temptation to hide defects is strong. Don’t give in to the temptation. You are actually better off disclosing anything and everything to a potential buyer. If the basement floods after the sale closes, and you disclosed it, the buyers can’t sue you. In this litigation-happy climate, don’t give your buyer a reason to sue you.

If you are not sure how to proceed when selling your house, consult your real estate agent and your lawyer. They are experts in their field and their advice will save you money and headaches.

About the Robin Gronsky

The purchase or sale of a home is one of the most stressful times in a person’s life. It is the goal of Robin Gronsky to guide you through this minefield and insure that your financial interests are fully protected. Ms. Gronsky has over 20 years of real estate experience, representing purchasers, sellers, and lenders, as well as cooperative and condominium boards. She knows the process and will answer your questions while paying close attention to each detail of the proceess. You want a lawyer who handles real estate as a significant part of her practice. Don’t hire a criminal or corporate lawyer who has never handled a real estate closing.

Robin M. Gronsky
201-251-8001
RGronsky@GronskyLaw.com