This happens often. The seller gets a bite early on and is suddenly filled with confidence that the house will easily sell and maybe even inspire in a bidding war. It feels like you’re standing over a pond packed with hungry fish. The first offer doesn’t seem great, and you naturally assume there must be bigger, juicier fish to be had. So, you throw the not-so-small-after-all fish back in. Big mistake. That “tiddler” is often the “catch of the day.”
Becoming Friends with the Buyer
It’s appropriate, even important, to be friendly, but don’t let the personal nature of someone being in your home allow you to get into too many long discussions with the buyers, because personality conflicts often cloud judgments. Watch what is said in discussing items related to the house and neighbourhood. Remember, this could be their new home. You’re no doubt excited about moving. But buyers will start second guessing. A casual statement about the house “really being too small for a growing family,” or “the schools are going through some changes” might be enough innocent chatter to squash their interest.
Underestimating Closing Costs
Many sellers only consider the money they are selling their home for (the purchase price). They don’t appropriately calculate all the costs associated with the sale and overlook the following items: • Balance of Purchase Price — the purchase price less the buyer’s initial deposit (the latter could be anywhere from 5% to 20%) • Legal Fees — amount depends on purchase price and lawyer (approximately $1,800 for a $500,000 purchase in Toronto) • Title Insurance — sometimes included in legal fees 64
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