Smart Moves

She was a medical researcher for a Maryland hospital who hankered to finally leave the noisy apartment building where she and her husband had lived for more than five years. Once they hit their early 30s, she figured it was time for them to buy their first home.

Ashley Richardson, the real estate agent the couple had engaged to help them find their first home, showed the pair 15 townhouses that met their search criteria. The last one they toured -- a fully renovated property in a historic city neighborhood -- was a thrilling find for the researcher.

But in the end, the researcher’s husband refused to go forward with any home purchase, and the couple decided to stay in their rental unit indefinitely.

“He was afraid of the commitment involved in buying a home,” says Richardson, who’s sold property since 1993 and works for the Long & Foster realty firm.

Nowadays, she says it’s surprisingly common for would-be first-time buyers to back away from a purchase, though in many cases their withdrawal occurs at a later stage than it did for the researcher and her husband. Often, people back out after a home inspector checks out a house they plan to buy and finds faults.

There are, of course, many reasons why those who intend to buy their first home exit the process prematurely. In some cases, they fear the financial commitment, recalling how many Americans lost their homes to foreclosure during the Great Recession.

Here are a few common fears that afflict buyers and how to overcome them:

-- Fear of exposing a blemished credit history to a mortgage lender.

Sid Davis, a real estate broker and author of “A Survival Guide to Buying a Home,” says many wannabe homeowners worry how their credit histories will be viewed by mortgage lenders. But he says most such anxieties are usually baseless.

Mortgage pre-approval, which lets buyers assess their borrowing capability before they head out to shop for a property -- is now easily obtained over the phone. Even so, Davis says some first-timers prefer to go to the lender’s office for pre-approval.

“If it makes you more comfortable, go see the lender in person, and ask your agent to go with you,” he says.

Also, to ensure they’re being quoted a competitive rate for their mortgage, he encourages all buyers to shop lenders before submitting a formal loan application.

-- Fear that family members will judge your buying choices negatively.

Most first-time buyers are in their 20s or 30s. On financial matters, many still look to parents for guidance. But sometimes, the intervention of elders can backfire.

“You don’t necessarily want to get your parents involved in your transaction. In many instances, in the name of protecting you from overpaying, they can blow up an otherwise good deal,” Davis says.

There’s nothing inherently wrong with seeking help from your parents. But Davis says it’s wise to involve them early on -- not after you’ve picked out the property and are about to seal the purchase.

If you’re afraid to go forward without your parents’ help, Davis suggests you bring them along on your house-hunting trips. That way they can compare various alternatives and will likely give you more objective advice.

-- Fear of making a mistaken property selection.

Because they realize that the home-buying decision is a major one, Davis says many wannabe homebuyers become risk averse, worrying they’ll select the wrong property.

He says it’s not uncommon for young buyers seeking emotional safety to keep researching the market rather than making a decision. But even in neighborhoods where buyers now have the upper hand, purchasers can forfeit the chance to buy a home they love simply because they obsessed too long over the details.

“There’s often a downside to delaying. It’s not impossible that someone else will come in and snap up that home you adore,” Davis says.

Also, he says some sellers become so put off by indecisive purchasers that they refuse to deal with them.

Davis says the best remedy for home-selection anxiety is solid information. Work with a real estate agent who can accurately advise on the true market value of any property you’re considering, thereby reducing your chances of overpaying.

“It’s a good thing for young buyers to get a lot of hand-holding from a reputable agent, ideally one who enjoys helping first-timers,” Davis says.

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

Michael Crowley still speaks fondly of the tiny, pale yellow cottage he bought in Spokane, Washington, in 1993. He was just 29 at the time, and both he and his black chow dog were excited to escape the cramped apartment where they’d been living. Plus, the cottage was a quick walk to a lush park where both could romp.

Crowley, a longtime real estate broker, paid just $57,500 for the house -- a fraction of its current value. But even decades ago, the house sold for less than SIMILAR properties in the same upmarket area. Why? Because it faced a heavily traveled road.

“When you buy a house that fronts to a busy roadway, you’d better get a discount. Don’t forget that when it’s your time to sell, you’ll also have to swallow a discount due to location,” says Crowley, who’s affiliated with the National Association of Exclusive Buyer Agents (naeba.org).

The reason that selling a home on a busy artery is problematic is that many buyers fear heavy traffic will translate to noise and fumes. They also fear their pets or children will run into the roadway.

Despite buyer objections, it’s very possible for the owners of a property on a busy roadway to receive full market value of their place when they sell, so long as they take a realistic approach, says Sid Davis, a Utah-based broker and author of “A Survival Guide to Selling a Home.”

“One obvious step is to bite the bullet on price to some extent. ... Usually about a 5 percent price break is enough in a strong market,” Davis says.

Here are a few other pointers for sellers:

-- Stress road access as a positive.

Granted, most buyers wouldn’t relish living near the noisy entrance ramp to a major highway. But a location just a mile from that ramp could be a plus to purchasers who are fed up with their time-consuming commutes, says James W. Hughes, a housing expert at Rutgers University in New Jersey.

If your road leads directly to an important thoroughfare without being too close, Hughes says this point should be emphasized in your marketing materials. Also, if the home is a short walk to public transit, stress this point as well.

“Walkability is of growing importance, especially to baby boomers. They’re less fond of driving than when they were younger, and more eager to exercise. They like to walk to restaurants and movie theaters,” Hughes says.

Though most Americans still prefer green suburban living to an in-town setting, Davis says recent immigrants are often less resistant to life on a bustling street than those who’ve always lived in the United States.

-- Underscore the benefits of strong neighborhood schools.

Is the community where you’re selling served by a network of outstanding schools? And are most would-be buyers people with young children who need extra space for their growing families?

If so, Davis says it would be a smart idea to promote the purchase of your home as a way to gain entry to top-notch schools at a relatively low cost.

“[Buyers] need to see how inexpensively they could break into a prime family neighborhood if they buy your place,” Davis says.

To stress the point that your home is a better value for the money, he recommends you ask your listing agent to give prospects a list of similar properties on sale in the area, along with the relative prices shown on a per-square-foot basis.

“This is a graphic way to underline how buyers could get a bigger house for less money, along with excellent schools,” Davis says.

-- Look into the cost of fencing your yard.

Some heavily trafficked roadways seem particularly risky to children and animals. These include avenues with multiple lanes and freeways used by large trucks and other commercial vehicles. If you’re living along this sort of roadway, Davis says you may wish to fence your yard in hopes of lessening the fears of potential buyers.

Your listing agent can advise you on whether the fencing of your yard would constitute a warranted pre-sale expenditure. As one money-saving option, the agent might recommend you fence your backyard only, creating a protected area where small children and pets could play.

If you decide to invest in a fence, the choices may seem daunting.

“When selecting your fencing, choose something in wood or vinyl. Stay away from one of those chain link fences that looks like a military installation,” Davis says.

-- Ponder a deeper price cut if your home won’t sell otherwise.

Suppose your roadside home went on the market months ago at a price slightly below that of comparable homes in more tranquil areas of the same neighborhood. But while the other places are selling, your home continues to languish unsold.

In this case, Davis says one of your few remaining options is to cut your price more steeply, reducing it to 10 percent or more below what’s being asked for comparable properties on calmer streets nearby.

“Getting nailed on price isn’t fun. But sometimes that’s your only choice if you really want to sell that house on a busy street,” Davis says.

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

It was a forgettable cottage in a ho-hum neighborhood surrounded by other starter homes. But a builder bought the property with the intention of renovating it to flip it and make a bundle on its sale.

Assisted by his interior designer wife, the man installed fine hand-painted marble tile from Italy in the kitchen, along with pricey professional appliances from New Zealand. He also spent a small fortune on exquisite lighting fixtures throughout the house.

By the time the renovation was done, the builder had nearly doubled his initial investment, counting the purchase price. But his attempts to recoup the money failed miserably. After the place languished unsold for many months, he pulled it off the market rather than take a big loss.

“The man was trigger-happy when it came to upgrades. Though his renovations were tasteful, he spent way more than he could ever hope to receive on the sale. He overshot the neighborhood’s standards and simply priced himself over the market,” says Stacy Berman, the listing agent for the property.

Berman, who long managed a realty firm in Washington, D.C., says it’s not only flippers who sometimes spend too much for improvements in hopes of promoting a sale. Occasionally, owner-occupants make the same mistake.

“The moral of the story is that as a seller you want to be particularly cautious about how you invest your pre-sale dollars. You want to spend what’s necessary to make your place show-worthy and in good repair. But you don’t want to overspend on super-high-end improvements that will never pay you back,” Berman says.

How can you determine which upgrades to make? The best approach is to get multiple opinions from real estate agents in advance of doing any renovation work, says Sid Davis, author of “A Survival Guide to Selling a Home.”

Davis, a veteran real estate broker in Utah, says it’s also wise to assess your competition prior to pouring any money into improvements.

“Go around and visit all the other for-sale houses in your immediate area as if you were a buyer ... make sure your home meets the neighborhood’s standards, though without going way over the top,” Davis says.

Here are a few other pointers for sellers:

-- Avoid getting carried away with fancy kitchen improvements.

For sellers, the road to overspending is paved with good intentions. Owners are especially likely to veer off course on kitchen improvements.

Davis says most sellers don’t need to tear out and replace their worn kitchen cabinets, only the cabinet doors. Or, if that’s not a feasible solution, they can freshen their kitchen’s look by sanding and repainting their cabinets in a high-gloss white.

-- Focus on painting high-exposure areas.

Seasoned real estate agents are nearly universal in their appreciation of a newly repainted home. Painting is one of the most cost-effective improvements sellers can do, says Elisa Dewees, a North Carolina-based broker who coaches other real estate professionals.

“People don’t want to see your favorite colors, whether they’re pink, purple or blue. But a nice neutral tone will help them imagine living in your home,” she says.

-- Illuminate your bathrooms.

Many people who’ve lived in their home for a decade or longer still have the original light fixtures in their bathrooms, even if they’ve updated their tile work, cabinets and faucets.

But the multiple-bulb Hollywood-style lighting that many people still use in their bathrooms doesn’t appeal to most contemporary buyers, who want a fresher, less retro look.

“Search for lighting fixtures that are more stylish. In many cases, you can upgrade your fixtures for $50 to $100 per bathroom,” Dewees says.

-- Refresh your carpeting.

Many sellers would rather offer buyers a “carpeting allowance” than replace worn, stained or outdated-looking carpet. These sellers argue that it’s “inconvenient” for them to undertake the project themselves.

But real estate agents scoff at the idea of using a carpeting allowance, which they say undermines the sellers’ prospects for a successful sale. That’s because few buyers can envision how much better a home will look when its bad carpeting is replaced.

“If you have an average house, replacing your carpet will cost you a couple of thousand dollars at most. But if you opt instead for a carpet allowance, buyers will assume it will cost them multiple times that,” Dewees says, noting that a growing number of buyers will refuse any property that’s not in move-in condition.

Can’t afford new carpeting for the whole house? Then focus on the areas that are most visible to visitors.

“If you can impress buyers with great carpet on the first floor, they might be more forgiving about your poor carpet on the second floor,” Dewees says.

-- Take out any greenery that shrouds your property.

Many longtime owners are loath to touch the trees that grow in their front lawn. Even if their trees now dwarf their property or have grown perilously close to the house, they’ll resist cutting them down.

But given that curb appeal is paramount, Davis urges sellers to spend as much as necessary to remove any tree that hides their property. Otherwise, he says many buyers will summarily reject their home based solely on how it looks from the street.

“If they can’t see a house, they’ll never buy it,” he says.

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