3 Biggest Real Estate Mistakes

What are buyers and sellers getting wrong now? MoneyWatch real estate blogger Ilyce Glink explains the biggest goofs you can make.

3 Biggest Real Estate Mistakes Jill Schlesinger: I want you to give me the 3 biggest mistakes that a buyer makes and the 3 biggest mistakes a seller makes. So, buyers, listen up, what are the 3 mistakes that you've got to watch out for? Ilyce Glink: If you're buying today, and you truly can't afford it, don't even start. Spend the time fixing up your credit history and credit score. In my new book, "Buy, Close, Move-in", I actually have a chapter called Fixing Your Credit History and Credit Score Forever— Jill Schlesinger: That’s great. Ilyce Glink: Which I really think you've got to focus on first. Secondly, make sure that, if you're buying a condo, make sure it approved before you even look at it. Fannie, Freddie and FHA right now represent 90% of all the mortgages out there. It's not going to change any time soon, and if the building isn't approved, you're wasting your time. The other thing to watch out for with condos is this whole, we have retail commercial on the first floor, condos above. There's a new ratio that's being put into effect where it's like 25% can be retail. If the condo is out of whack, just take a pass. Jill Schlesinger: You're never going to argue your way out of it. Ilyce Glink: Third mistake, I've got to say financing. You know, if you're not refinancing or financing right now, you're missing a golden opportunity. People are waiting for it to get to this magic 4 and a half percent. Folks, it's never happening. It's never happening. Never going to 4 and a half percent. Jill Schlesinger: What's wrong with 5? Five's good. Ilyce Glink: You know, my very first mortgage in 1989 was 11 and three quarter percent And I felt lucky to have it. It was with a condo. Excuse me, a co-op and I just thought myself, "Wow, I can buy a house." And a few years later I refinanced to a whopping 8 and a half percent. So when people tell me that they are afraid that 5 and a half percent, 5 and a quarter percent is too high. I tell them to save more money and buy less expensing property. Jill Schlesinger: Okay, seller's mistakes? Three, quickly before we finish, what are the mistakes that sellers make that they have guard against? Ilyce Glink: You have to stage your house today. Everybody expects your house to look like HD TV and if it doesn't, you're not going to sell. Two, be realistic on price. If your neighborhood is filled with foreclosures, you are not going to get the price that you could have gotten in 2005. So, suck it up, live with it and sell your house. Move on. Jill Schlesinger: I love you. Ilyce Glink: And the third thing I would say for sellers is you can't really do this alone. You're not going to save any money. I know it seems like you should be able to sale "for sale by owner", this is a tough market and you need an agent who really understands how to position you and is in touch with all the other buyers out there.