Top 5 Mistakes Home Sellers Make

This story was originally published on AOL on May 19, 2008.

THE REAL ESTATE market may be in the doldrums, but that doesn't mean it's impossible to sell your home. Sellers just need to be savvy and not fall prey to common mistakes. Here are five missteps home sellers should avoid:

The single biggest mistake folks make is setting their asking price too high. In today's down market homeowners need to price conservatively or they risk turning off potential buyers, says Michael Corbett, author of "Ready, Set, Sold."

Figuring out how to set the price is tricky. Gone are the days when you can expect to sell your home for as much as your neighbor did just six months ago, according to the National Association of Realtors. So rather than looking at how much homes in your area sold for six to 12 months ago, compare prices for similar properties currently on the market. If you see a listing for a house that's sitting unsold for a few months, chances are the owners are asking too much and you'll want to set your price lower, says Corbett.

Watch our video for more advice on setting the right price.

Too many sellers reject their first offer, even if it's close to or at full asking price. Holding out for more money is a strategy that rarely works, especially at a time when credit is tight, lending requirements for mortgages are in flux and potential buyers have less purchasing power. (Read our story here for more advice on selling in a cooling market.)

The reality is that in any market a home's first offer is often its best, says Elaine Clayman, a real estate broker with Brown Harris Stevens. Typically, educated buyers will seize on a property they like — with a competitive bid — as soon as it comes onto the market, she says. Of course, given the glut of houses on the market, sellers should expect to receive some low-ball offers. Just don't assume that you'll get better bids the longer you hold out. As Clayman warns, the more time a home sits unsold, the greater chance a seller will have to reduce his price.