Smart Moves

Selling a house can be tough. It can be even tougher if you're forced to sell your house for financial reasons, and don't have much money to make pre-sale fixes or upgrades.

Ashley Richardson, an agent affiliated with the Council of Residential Specialists, tells the true story of one client, a 53-year-old single mother of a grown son who had to sell her small cottage in a neighborhood with much fancier homes. Given her modest salary, the woman, a floral designer, needed the proceeds for her retirement account.

But while the house was being shown to prospects, the floral designer, who lacked funds for home improvement, was so hurt by buyers' critiques that she almost took the place off the market. For example, they complained about her outdated kitchen decor and the rundown condition of her swimming pool.

This points to a common problem confronted by many sellers -- whether female or male, single or married -- who must sell against their will. Their intense emotional responses have the potential to torpedo a sale.

"Selling a house can be an emotional roller coaster. But you have to manage those feelings and face facts or you'll only end up hurting yourself," says Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home."

Here are a few pointers for sellers:

-- Seek out a sympathetic listing agent.

Ronald Phipps, a real estate broker and past president of the National Association of Realtors, says that for home sellers, "feeling frustrated and angry is very common." However, he says it's better to acknowledge your reactions than to deny they exist.

By choosing a listing agent with a compassionate side, you're more likely to find a healthy acknowledgement of your feelings, which can help you move forward.

-- Rely on objective opinions on your home's value.

As they approach a sale, many homeowners start collecting advice from friends and neighbors. But as Phipps says, these opinions are often based on unreliable reports and erroneous information.

"Anecdotal information can be very, very dangerous. Especially when you're feeling emotional about selling, you need accurate information to make sound decisions," he says.

He also recommends that home sellers avoid "automated evaluations" of a property's worth to reach conclusions on how to price. Such valuations typically come from Internet sources, including Zillow. Though such information can be helpful as a general guide, it's hardly the perfect tool for deciding how much to ask.

Before choosing a listing agent, Phipps urges sellers to contact at least two, preferably three, experienced agents who have an established track record selling homes in their immediate neighborhood. Ask each to provide a recommendation on your list price, known as a "comparative market analysis," and to present factual data on recent market sales to back this up.

With facts and the views of veteran agents in your area, Phipps says, you stand a better chance of resisting the kind of emotional thinking that could cause you to overprice your property, which can badly hurt your sale.

-- Avoid taking your listing agent's suggestions for changes personally.

Phipps has the interior walls of his home painted in vivid colors: eggplant, roasted tomato and broccoli. But if he were to put his property on the market, he'd immediately repaint his walls in neutral colors.

"By calming your decorating, you'll appeal to many more buyers," he says.

A strong real estate agent will be candid with you about all the changes needed to maximize your sale. Unfortunately, many involuntary sellers may take their agent's comments as insulting, Phipps says.

He urges sellers to take a serious look at the checklist given them by their listing agent and to follow as many of the suggestions as they can afford, including any repair needed to make the home fully functional.

-- Keep an open mind on low offers.

Davis says that unless you've got multiple stronger offers in hand, it's usually a mistake to reject a bid that comes in somewhat low.

"Frankly, many sellers expect you to counter their bid and nowadays will often pay more if you do. So unless a bid is ridiculous, I'd try to work with it," Davis says.

He says it was an emotional reaction that led him to rebuff three low bids on a ranch-style house that he attempted to sell some years back.

"Before I found an agent who could talk sense into me, I rejected some fairly decent offers by writing "NO" in big bold letters across the contracts. That was a mistake. Probably, I could have brought up at least one or two of them if I'd kept on negotiating," Davis says.

People who must sell against their will sometimes view buyers very unfavorably. But Davis tells sellers to remember that buyers have their own angst about how much to offer in an always-changing real estate market.

Those on both sides of the table are nervous.

"Even with guidance from an expert listing agent, sellers can be confused about how to respond to an offer that comes in low. And vulnerable sellers, including single moms selling involuntarily, can be especially insulted by a lowball offer," Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

For years, Marty Gruer has worked in a job promoting homeownership across America. But her daughter and son-in-law -- both 26 -- are still struggling to save for a first property of their own.

The pair, who live in a high-cost area, can't afford to purchase a starter home, despite extreme budgeting.

Gruer, a homeownership expert for NeighborWorks America, a nonprofit community development corporation based in Washington, D.C., says the financial challenges facing numerous young wannabe buyers are daunting. Many are loaded with student debt and face rising home prices. What's more, as their rents continue to rise, they have less discretionary income to stash away for a down payment.

But not all factors are working against first-timers.

Besides the continuing availability of low mortgage rates, Gruer says more young purchasers are now eligible for down payment assistance programs. One source of information about these -- along with homeowner education seminars -- is the NeighborWorks website: (neighborworks.org).

Here are a few pointers for novice purchasers:

-- Let jealousy move you to action.

Sid Davis, author of "A Survival Guide for Buying a Home," says that when it comes to financial decisions, those in their 20s and 30s are heavily influenced by their social circles. So once one friend buys a house, others in the same group are often motivated to do the same.

Besides the problem of affordability, many young would-be buyers are held back by a fear of commitment signified by the traditional 30-year mortgage, according to Davis.

"They're petrified about taking the plunge, fearing they'll get in over their heads," he says.

But as Davis tells many young clients, the beauty of a fixed-rate mortgage is that their payments will stay constant, even as their incomes likely rise.

"With the passage of years, those house payments seem to shrink, especially if your place appreciates," he says.

-- Avoid immediate gratification to achieve your larger home-buying goal.

Suppose that while you're still a renter, you're invited to a housewarming party at the home of friends. Part of you likes seeing your friends successful, but another part feels diminished by comparison.

In this situation, Davis says some renters resort to the short-term gratification of making other prestige purchases that are easier to obtain than a home. They may buy a luxury car or an apartment full of new furniture, financing their purchases with credit.

Such purchases weaken your chances of achieving your dream, Davis cautions, because you may not be able to obtain as large a mortgage as you'll want or need.

The problem is that lenders look at your overall debt load when judging your worthiness for a mortgage.

"Big balances that appear on your credit reports can hobble your chances for a home. Yet in most cases, a house is a much better investment than a car or furniture," says Davis, a real estate broker since 1984.

-- Start your home-buying campaign by visiting a mortgage lender.

Are you a potential homebuyer whose credit reports were tarnished by poor decisions in your youth? Regrettably, youthful financial indiscretions have a way of lingering on your record long after your circumstances and habits change.

While there's no quick fix for a poor credit score, Davis says your standing can be restored over a period of weeks or months through methodical effort.

"Most people just have to keep plugging away until they reach their objective of a higher credit score," he says.

Davis says your best ally in reestablishing good credit is a mortgage lender or broker willing to provide sound advice.

"Even now -- with more protection for borrowers -- it's helpful to get guidance from a professional who can tell you the letters to write, the phone calls to make, and the emails to send," he says.

-- Never lock in a personal relationship just to buy a home.

These days most couples want both their incomes counted on a mortgage application to qualify for a larger loan. But Davis has witnessed the calamitous consequences that can occur when those eager to qualify for a home move in together or marry just to speed the buying process.

"Make sure your relationship is doubly strong before you go for joint ownership. Otherwise, the implications of a breakup can be exceedingly messy," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

After a routine medical scan, a divorced woman in her 50s discovered she had cancer. She needed intensive treatment that would cost a small fortune beyond what her health insurance would cover.

Due to her financial bind -- plus a yearning to live closer to family as she fought the illness -- the woman decided to liquidate her townhouse and move as soon as possible. But because the sale was unexpected, and due to her lack of cash, she let her house go on the market in "as is" condition, with disappointing results.

It's not an unusual occurrence, according to Claire Prager, a real estate broker in the field since 1988.

She says the real-life story of the divorced woman is a common scenario she's witnessed many times during her career.

"Even people with private health insurance can exhaust the funds they need to get their house ready for market if their illness has cost them their job and savings. I've seen people in this situation with $2 million houses who are flat broke and must sell," says John Rygiol, the broker-owner of an independent realty firm.

Realtors routinely advise sellers that it's wise to spend money on cosmetic improvements. That's because sellers can typically recoup more than what it costs them for minor upgrades, like painting and carpet replacement, which make a strong visual impact.

But that doesn't mean homeowners with few resources can't increase their odds of netting more for their "as is" property with little or no cash expended. Even those who must rely on volunteers to make their homes presentable are better off than sellers who do nothing to improve the looks of their place, Rygiol says.

Here are a few pointers for sellers:

-- Ensure that your place is at least clean and cleared out.

"It's unbelievable the bad reaction people have to a house that's messy," says Rygiol, whose business is oriented solely to home purchasers.

Through his years selling real estate, Rygiol has observed buyers' reactions when they visit a clutter-ridden home.

"Even if your health crisis keeps you from participating, you should be able to find people to help tidy your place. Those who can't do the work themselves should locate people in their community to assist," he says.

If your family and friends are dispersed around the country and unable to help, Prager suggests you start your search for volunteers by looking on the Internet for a support group, such as a cancer survivor network or a nearby faith-based organization.

As you embark on a cleaning and de-cluttering blitz, she recommends you focus first on removing excess furniture and personal items that make it hard for those viewing your place to picture themselves living there.

"For example, I'm talking about all those photos and notes attached to your refrigerator with magnets and all those many family mementos. Get all these items packed up and put away in a storage area, such as your garage," Prager says.

Once you've cleared away your superfluous items, make sure your home is sparkling clean. A clean house is a powerful lure to get visitors to walk through the entire house rather than making a quick exit at the front door, she says.

-- Focus your painting on the most visible parts of the property.

It's unlikely you'll find volunteers to take on a large-scale house-painting project without compensation. Yet Rygiol says you should be able to recruit people who will donate their time and money to assist with relatively minor painting and touch-ups.

"Paint can cost as little as $20 a can. But if you're selling 'as is' and can't afford to paint much, focus on the highest-priority areas in the property by at least painting your front door and entryway," he says.

-- Find a listing agent skilled at home staging.

Home stagers are people hired to rearrange and supplement furnishings to make properties seem more appealing.

Mark Nash, the author of "1001 Tips for Buying and Selling a Home," says many stagers charge at least $300 or more for a minor redo. But if you lack the funds to pay a stager, he suggests you look for a listing agent willing and able to provide such services without charging you a fee to do so.

"An increasing number of agents are trained in the art of staging and some are getting very good at it," he says.

How can you be sure that agents who claim expertise in staging will do a good job? Nash recommends you ask them to email you "before and after" photos of properties they've staged.

-- Make sure you calculate your listing price with your urgency in mind.

Despite their desire for a quick sale, Rygiol says some sellers are still tempted to "test the market" with an original list price at the high end of their neighborhood range.

But he says those in this predicament are better off pricing accurately from the outset. This means they're selling at the precise current market value of their property, or a notch below to attract bidders.

"Go around your neighborhood and look at for-sale signs as indications of the strongest and most successful agents in your area. Then call three of these top agents and ask them to come over and recommend a totally realistic selling price," Rygiol says.

He says you shouldn't necessarily select as your listing agent the one who suggests the highest list price of the three, perhaps as a form of flattery. Rather, listen intently to their advice on how your "as is" property should go on the market.

"Tell your agent you want to sell in 90 days or less, and ask what price and marketing plan will get that job done," Rygiol says.

Prager says that "as is" sellers who are realistic about the current market value of their property are the ones who fare best and sell most quickly.

"Selling a house is like everything else in the retail world -- the best price sells fastest," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)