13 Blunders Real Estate Sellers Need to Avoid

TABLE OF CONTENTS:

Blunder #1: Selling at the Wrong Time Blunder #2: Paying the “Standard” Real Estate Commission Blunder #3: Paying the “Standard” Seller Costs Blunder #4: Paying Cash Concession to Buyer Blunder #5: Accepting Advice from the Wrong Agent Blunder #6: Entering a Contract with Unqualified Buyer Blunder #7: Entering Contract with Insufficient Deposit Blunder #8: Entering Contract with Contingent Buyer Blunder #9: Including Personal Property with Sale Blunder #10: Guaranteeing Condition of Systems or Appliances Blunder #11: Contract Renegotiation After Sale Blunder #12: What is the Mandatory Property Condition Disclosure Blunder #13: Granting Early Possession to Buyer

IMPORTANT DISCLOSURES:

Buying or selling real estate involves risk.

This guide reflects the general experience and opinions of Rowe Realty Auctions & Appraisal and is provided for educational purposes only. It is not personalized advice and should not be considered legal, financial, or tax guidance. Every property and situation is different. Before making any binding decisions, please consult your attorney or other qualified professionals.

Blunder #1 - Selling at the Wrong Time

Don't Follow the Herd

Best Time to Sell – A Seller’s Market:

• When few of your neighbors are selling. If only a handful of homes are on the market, it’s often the best time to sell. Buyers purchase property year-round—even during holidays. Seasons alone do not drive the market. Scarcity does. The best time to sell is when you are one of the few, not one of the many. Resist the herd instinct.
• When life has clearly changed. Life evolves—property ownership doesn’t last forever. Homes require upkeep. Taxes continue whether you use the property or not. If you can no longer maintain it, afford it, or truly use it, be realistic. Selling sooner rather than later can protect both your time and your equity. Sometimes the smartest move is to sell—and not look back.

Worst Time to Sell – A Buyer’s Market:

• When everyone else is selling. High competition costs sellers both time and money. More listings mean more price pressure and longer market exposure.
• When fear or panic drives the decision. If you can afford, maintain, and enjoy your property, think twice before selling out of anxiety. The grass is not always greener. In uncertain moments, it may be wiser to stay put, hunker down, and weather the storm rather than react emotionally.
• When the surrounding economy is strengthening. If the broader economy is improving, patience often pays. When possible, waiting can position you for stronger demand and better terms.

The Truth From Ruth: Follow the herd and you pay the price.

Blunder #2 - Paying the “Standard” Commission

There Is No Such Thing

Real estate commissions in New York State are negotiable. Period. According to the New York Department of State, Division of Licensing Services Handbook:

“The commission or compensation of a real estate broker is not regulated by statute or regulation, therefore the amount and terms are negotiable.”*

There is no legally required “standard” commission—only what a seller agrees to.

Smart sellers don’t assume. They ask.

The goal is to hire the most knowledgeable and effective professional who offers the best value for the fee charged, –NOT– to hire the cheapest agent.

Before signing, sellers should:

• Ask exactly what services are included
• Ask what marketing will be done
• Ask what each service costs—in real dollars
• Compare experience, strategy, and advocacy—not just a percentage

*NY Department of State, Division of Licensing Services Handbook

The Truth From Ruth: Experience protects equity. Assumptions give it away.

Blunder #3 - Paying the “Standard” Seller Costs

Read Before You Sign

Many real estate transactions rely on pre-printed contracts and boilerplate forms. These forms often default to a long list of seller-paid costs—but default does not mean mandatory. Sellers should understand that many costs are negotiable and some may not apply at all to their specific transaction.

Common Seller-Paid Costs May Include:

• Real estate transfer tax and additional transfer taxes
• Special additional mortgage tax (when applicable)
• Legal documentation (affidavits, court orders, death certificates)
• Tax prorations, assessments, and municipal charges
• Rent, common charges, fuel oil, water, sewer, or “pure water” charges
• Permits, certificates of compliance, and certificates of occupancy
• Utility continuation, lawn care, landscaping, or snow removal
• Real estate commissions

• Title-related expenses:

  • Updated abstract of title
  • Tax searches and U.S. court searches
  • Local tax certificates (city or village)
  • Survey or survey update

Every cost removed or renegotiated is real money back in your pocket at closing. Never assume “standard” means required.

What Smart Sellers Do:

• Read every line of the contract before signing
• Question any charge you don’t recognize or understand
• Remove costs you are unwilling or unable to pay
• Ask what is customary and what is optional
• Seek guidance from an experienced professional who understands local practice

The Truth From Ruth: Boilerplate protects the form—not your bottom line.

Blunder #4 - Paying a Cash Concession to the Buyer

It’s Not Free Money

Buyers are often advised to request a “seller concession”—cash back at closing to cover their costs. While common, this practice can quietly cost sellers thousands of dollars.

Here’s why sellers should proceed with caution:

• Concessions are frequently paired with an inflated purchase price
• Lenders require appraisals based on true market value, not padded numbers
• Appraisers routinely identify concessions and report them to the lender
• When value doesn’t support the price, the deal can be delayed, renegotiated, or denied altogether

The result? Lost time, weakened negotiating position, and unnecessary risk.

Seller concessions should never be automatic. They must be evaluated carefully, documented properly, and weighed against real risk—not pressure.

If a buyer lacks sufficient funds to close, the issue isn’t your price—it’s their readiness. Just as sellers had to plan, save, and prepare, buyers must do the same.

The Truth From Ruth: A concession today can cost you certainty tomorrow.

Blunder #5 - Accepting Advice from the Wrong Agent

Not All Agents Work For You

New York State law is very clear on agency disclosure.

According to the New York Department of State, Division of Licensing Services Handbook:

“New York State law requires real estate licensees who are acting as agents of buyer and sellers of property to advise the potential buyers or sellers with whom they work of the nature of their agency.” *

The law refers to real estate professionals as licensees and recognizes five distinct agency relationships:

• Seller’s Agent
• Buyer’s Agent
• Broker’s Agent
• Dual Agent
• Dual Agent with Designated Sales Agents

Only one of these works exclusively for the seller.

The agent you hire as a Seller’s Agent owes you:

• Undivided loyalty
• Confidentiality
• Full disclosure
• Obedience to lawful instructions
• Duty to account

Everyone else—no matter how friendly or helpful they seem—represents someone else’s interests, typically the buyer or the buyer’s lender. Advice from the wrong agent can:

• Undermine your negotiating position
• Expose confidential information
• Cost you leverage, time, or money

The Truth From Ruth: In real estate, friendly advice can be very expensive.

Blunder #6 - Entering a Sale Contract with an Unqualified Buyer

Hope is Not a Strategy

A word to the wise: never sign a contract without verifying the buyer’s ability to close.

Before accepting an offer, sellers should require written proof that the buyer is financially qualified.

What Sellers Should Demand:

Cash Buyers

• A recent bank or financial statement
• Statement must show sufficient funds to close
• Funds must be in the buyer’s name

Mortgage Buyers

• A current pre-approval or pre-qualification letter from the buyer’s lender

• The letter should confirm:

  • Credit has been reviewed
  • Funds required to close have been verified
  • Loan type and amount are clearly stated

A serious buyer comes prepared. Anything less is speculation.

Accepting an offer without verification can:

• Tie up your property unnecessarily
• Delay exposure to qualified buyers
• Increase the risk of contract failure

If proof is missing or vague, it’s often wiser to keep the property available. Interest is flattering—but affordability closes deals. There are always other buyers waiting in the wings.

The Truth From Ruth: Wanting a home and qualifying for a home are not the same thing.

Blunder #7 - Entering a Sale Contract Without a Sufficient Deposit

Skin in the Game Matters

Buyers naturally try to purchase property with the smallest deposit possible. Sellers, however, should remember this: the deposit—often called earnest money—is your primary assurance that the buyer intends to close.

Simply put, the stronger the deposit, the stronger the commitment.

A meaningful deposit:

• Demonstrates seriousness
• Discourages casual walkaways
• Helps protect your time and market position

If a deposit is missing, delayed, or unusually small, pause before signing. Clear answers create accountability. Vague answers create risk.

What Smart Sellers Ask:

• Why wasn’t the deposit submitted with the contract?
• Who currently has the deposit?
• When will it be delivered?
• Who will hold it in escrow?
• Where will it be held, and under what terms?

Before taking your home off the market, make sure the buyer has real money on the line. Asking questions isn’t being difficult—it’s being smart.

The Truth From Ruth: Earnest money isn’t symbolic—it’s protection.

Blunder #8 - Entering a Sale Contract Dependent Upon Sale of Buyer’s Property

When Your Sale Depends on Someone Else’s

Sale contingencies tied to a buyer’s existing property create layers of risk for sellers. There are generally two types of contingent buyers, and both deserve careful scrutiny.

Type One: The Buyer Under Contract

This buyer has their property under contract—but that contract is often loaded with contingencies of its own: inspections, financing, appraisals, or the buyer’s buyer selling yet another property. One weak link can unravel the entire chain.

Type Two: The Buyer Without a Contract

This buyer may not even have their property on the market. They are asking you to remove your home from active marketing while they attempt to sell theirs. Sometimes it works. Often, it doesn’t.

Whenever possible, sellers are best served by avoiding sale contingencies—or at minimum, structuring them carefully with firm timelines and escape clauses. Otherwise, it’s a slippery slope with most of the risk on the seller’s side and little on the buyer’s.

The Truth From Ruth: A contingency is only as strong as the weakest link.

Blunder #9 - Including Personal Property with the Real Estate Sale

What’s Fixed… and What Isn’t

Real estate transfers include items permanently affixed to the structure of the property. Personal property does not.

For example:

• A TV wall mount is typically considered fixed; the television is not
• A built-in dishwasher is usually fixed; a high-end refrigerator is not

Buyers often request personal property be included with the real estate—sometimes listing these items in the offer for a nominal amount, such as one dollar. Sellers are under no obligation to agree to this.

Personal property that is not permanently attached can:

• Be excluded from the sale
• Be sold separately at fair value
• Be removed prior to closing

Including valuable personal property without proper consideration can quietly give away thousands of dollars.

Personal property deserves its own conversation—and often its own transaction. When handled correctly, these items can be marketed, sold, or relocated without complicating the real estate closing.

The Truth From Ruth: If it’s not attached, it’s negotiable.

Blunder #10 - Guaranteeing Condition of Mechanical Systems or Appliances

Used Is Used

Homes and buildings, much like people, age over time. Systems wear. Components fail. Unlike people, buildings can be renovated—but when sold, they typically transfer to the buyer in “as-is” condition, subject only to normal wear and tear between the contract date and closing.

Problems arise when a seller guarantees the condition of mechanical systems or appliances as of the day of closing. Once a guarantee is made, the risk shifts squarely to the seller.

For example:

• If a used dishwasher fails the day before closing, you may be required to repair or replace it
• If a furnace, water heater, or appliance stops working, the seller can be held responsible—even if it functioned previously

Used homes come with used systems. Sellers should disclose known conditions honestly—but never promise performance beyond the contract date. Avoid guarantees that expose you to avoidable cost and risk.

The Truth From Ruth: Don’t guarantee what you can’t control.

Blunder #11 - Contract Renegotiation After Sale

The Deal Was Made – Negotiation is Over

After a contract is signed, sellers are sometimes asked to renegotiate terms based on information obtained from a home inspection or appraisal. It’s important to understand the role of these reports.

• A home inspector works for the buyer, not the seller
• An appraiser represents the buyer’s lender, not the seller

Both inspections and appraisals are performed for the buyer’s information only. They are not intended to reopen negotiations, demand repairs, or extract cash concessions after the fact—unless the contract specifically allows for it.

Sellers are under no obligation to review inspection or appraisal reports unless contractually required.

A buyer always has the option to proceed—or not. If they choose not to move forward under the agreed terms, it is often better to release the contract and continue marketing the property than to renegotiate from a position of weakness.

The Truth From Ruth: Protect your time. Protect your terms. Honor the contract.

Blunder #12 - What is the Mandatory Property Condition Disclosure?

Don’t Ignore This Legal Requirement

In New York State, sellers of existing 1–4 family residential properties are required to complete and deliver a Property Condition Disclosure Statement (PCDS) to the potential buyer before the contract of sale is signed. This is not a suggestion — it’s the law. The PCDS is a uniform disclosure form with 56 specific questions about the property’s physical condition and history. Sellers must answer every question based on their actual knowledge of the condition. You are not expected to investigate beyond your personal knowledge — but you are expected to be truthful based on what you actually know.

What the Disclosure Covers

The questions address a wide range of conditions including:

• Structural elements (roof, foundation, walls)
• Mechanical systems (plumbing, electrical, heating/AC)
• Environmental issues (flood history, hazards, infestations)
• Ownership, legal matters, easements, access and occupancy
• Other conditions the seller is aware of that could materially affect value or use of the property

Why It Matters

Once delivered, the Disclosure becomes part of the purchase contract. It protects both seller and buyer by documenting what the seller actually knows about the property at the time of sale.

Providing incorrect or misleading information may expose a seller to claims later. For this reason, if you have questions or are unsure how to answer, it’s wise to consult your agent or attorney before completing the form.

The Truth From Ruth: Disclosing what you know is not the same as guaranteeing what you don’t know.

Blunder #13 - Granting Early Possession to your Buyer

Sold Is NOT Closed

Occasionally, a buyer may request early possession of a property—either to occupy the home before closing or to store personal property in the residence, garage, or outbuildings. While these requests may sound reasonable, they expose sellers to significant legal and financial risk.

Before even considering early possession, legal counsel is essential. An attorney can help address critical questions such as:

• When does possession officially begin—and when does it end?
• What compensation, if any, is paid to the seller?
• What happens if the buyer vacates early or unexpectedly?
• Should the buyer post an escrow or security deposit?
• Who is responsible for property damage or misuse?
• Does the seller retain the right to enter for repairs or inspections?
• Who pays utilities, taxes, insurance, and maintenance?
• Who is liable in the event of an accident, casualty, or loss?
• What happens if the buyer ultimately fails to close?

Without clear, enforceable answers, the seller assumes most of the risk—with little protection.

Granting early possession without proper legal safeguards is dangerous and should be avoided whenever possible. The safest path is simple: close first, then transfer possession.

Our team works closely with legal counsel to expedite closings, resolve timing issues properly, and move sellers smoothly from SOLD to CLOSED—without unnecessary risk.

The Truth From Ruth: Possession without ownership is liability without control.