Sellers stung by wishful thinking

A charming home in a coveted Oakland, Calif., neighborhood almost sold last year, even though the market for high-end listings was challenging at best. The sellers selected a list price that their agent thought was a good price for the market.

Two offers materialized, one at the asking price and one for $20,000 more. The sellers had their mind set on a higher price, so they refused both offers and eventually took the home off the market.

After realizing they'd made a mistake, they offered their home for sale again this year at a lower price to reflect changes in the market over the past year. A deal was negotiated, but it wasn't easy. The buyers initially offered $125,000 less than the list price. It took more than four weeks to come to a final agreement. But, the transaction closed, although the sellers sold for about $100,000 less than they would have last year.

HOUSE HUNTING: Don't let wishful thinking get the best of you. Realize that what you think your home is worth may be out of line with what a buyer will pay. Sellers need to detach themselves emotionally from their home. This isn't easy, but it's necessary in order to make rational decisions about whether to sell, what price to ask and what to do with an offer if you receive one.

To get yourself in the proper mindset to sell, look at your house as if you are a prospective buyer. Make a list of all the qualities of your home that make it appealing to you. This should not include personal property that will be moved out at closing, like a hot tub or fountain.

The list might include such things as a good view, a usable yard, a good floor plan, and remodeled kitchen and baths. These features add value. Sellers often focus on the positive features without taking the undesirables into account. Buyers consider both, and are more likely to emphasize the negatives in the current market. ...CONTINUED

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