By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
The most consequential Long Island seller mistakes happen before listing. Overpricing by even 3-5% compounds fast — homes sit, then reduce, then sell below market. Under-preparing skips substantive value (a $10K prep investment often produces $30K+ in higher sale price). Ignoring municipal compliance (missing certificates of occupancy, oil tank documentation, permit history) causes closing delays that cost weeks and often the deal. Not completing the PCDS accurately — sellers must now complete the disclosure per March 20, 2024 NY law, no $500 credit alternative available — creates liability exposure. Choosing the wrong listing agent (overpricing to win the listing, generic marketing, weak local knowledge) produces meaningfully worse outcomes than a substantive interview process would have caught. Post-Sitzer/Burnett August 17, 2024 settlement changes require sellers to make specific decisions about buyer's agent compensation that many don't understand. Emotional attachment affecting pricing or negotiation decisions consistently produces worse outcomes. Most of these mistakes are preventable with substantive planning 60-90 days before listing.
Why Long Island Seller Mistakes Compound Faster
Long Island's specific market dynamics make seller mistakes meaningfully more consequential than in generic real estate markets. Understanding why matters for planning.
Buyers comparison-shop within tight bands. A well-priced Manhasset colonial or Levittown Cape is competing against 5-10 similar homes in a specific comp set. Small margin errors on pricing, preparation, or presentation make the difference between "one of the well-positioned homes" and "the one that sits."
The first 30 days of listing are the most valuable. Long Island buyers who've been watching a specific market see new listings immediately. If your home hits the market with pricing or preparation issues, that first-impression damage is hard to recover. The Long Island pricing pillar covers what happens when the first 30 days go wrong.
Long Island's municipal complexity produces specific mistake types. New York is an attorney state with specific PCDS requirements. Nassau County and specific Long Island villages have specific certificate of occupancy, oil tank, and permit requirements. Sellers who don't plan for these issues before listing often lose weeks in closing delays.
Post-Sitzer/Burnett settlement changed the game. The August 17, 2024 NAR settlement introduced specific decisions sellers now must make about buyer's agent compensation. Sellers who don't understand the new framework make decisions poorly.
Mistake 1: Overpricing by Even 3-5%
The single most consequential Long Island seller mistake is overpricing. Not by 15-20% — most sellers won't do that. The damaging version is overpricing by 3-5%, which feels reasonable but produces meaningfully worse outcomes.
Why small overprice damages more than sellers expect. Buyers search in tight price bands. A home listed at $1,050,000 competes against homes in a specific comp set; the same home listed at $1,000,000 competes in a different comp set. A 3-5% overprice removes your home from the comp set of buyers who would have paid asking, without adding meaningful buyers who would pay the higher price.
The correction cost. Homes that sit for 30-60 days without offers typically end up reducing price and eventually selling below what accurate pricing would have produced. The final sale price after multiple reductions typically runs 2-4% below what accurate initial pricing would have achieved.
How to avoid this mistake. Substantive comp analysis matters. A good listing agent walks through 5-8 recent comparable sales in your specific area, adjusts for your home's specific condition and updates, and presents a realistic pricing range with reasoning. The Long Island pricing methodology guide covers substantive comp analysis in depth.
Mistake 2: Skipping or Under-Investing in Pre-Listing Preparation
The pre-listing preparation window is where sellers create meaningful value or leave money on the table. Under-preparation is one of the most common mistakes.
What substantive preparation looks like. Beyond decluttering and cleaning: targeted cosmetic updates that improve first impressions (paint, hardware, light fixtures), addressing visible deferred maintenance (roof issues, mechanical concerns), professional photography and marketing materials, staging when warranted, and curb appeal work that produces the first impression.
Return on preparation investment. A $10,000-$15,000 targeted preparation investment often produces $30,000-$50,000 in higher sale price. Not because the preparation transforms the home, but because it moves your home from the "needs work" comp tier to the "move-in ready" comp tier — a meaningfully different buyer pool and price band.
Compass Concierge as a specific tool. For sellers who see the preparation value but don't want to lay out cash upfront, Compass Concierge covers pre-listing improvements with no interest and no upfront cost, paid back at closing. Genuinely useful when the preparation produces meaningfully better outcomes but the cash flow doesn't work.
Time preparation properly. Standard cosmetic updates take 2-4 weeks. Substantive updates (kitchen or bathroom work, roof or systems replacement) take 3-12 months depending on scope. The seasonal timing guide covers when to start preparation for target listing dates.
Mistake 3: Not Completing the PCDS Accurately
The NY Property Condition Disclosure Statement (PCDS) is one of the most misunderstood parts of a NY home sale. Sellers who get this wrong create real liability exposure.
The critical change effective March 20, 2024. Under amended NY Real Property Law Article 14, sellers must now complete the PCDS. The prior $500 credit alternative that many sellers used is no longer available. This isn't optional guidance — it's the current NY legal framework.
What the PCDS covers. 56 questions covering property condition, known defects, environmental conditions, structural issues, and (per the March 20, 2024 amendment) seven new flood-related questions covering FEMA floodplain designations, flood insurance requirements, and prior flood damage.
The disclosure liability framework. Sellers who complete the PCDS honestly and accurately based on actual knowledge have meaningful liability protection. Sellers who intentionally omit or misrepresent known conditions create legal exposure that can extend post-closing.
Exemptions preserved. Co-ops, condos, HOA transfers not under fee simple ownership, and fiduciary transfers remain exempt from the PCDS requirement.
How to avoid this mistake. Complete the PCDS with your real estate attorney's guidance during contract preparation. Answer questions honestly based on actual knowledge without volunteering information not asked for. Coordinate PCDS completion with contract signing, not as an afterthought.
Mistake 4: Ignoring Municipal Compliance Before Listing
Long Island's specific municipal requirements produce a specific mistake category most generic advice misses.
Certificate of occupancy (CO) chain gaps. Most Long Island homes have an original CO from when they were built. Homes with additions, renovations, finished basements, decks, pool installations, or garage conversions require CO updates. A meaningful percentage of Long Island homes have some unpermitted work that surfaces during the buyer's due diligence — typically 3 weeks before closing, creating time-pressure resolution options.
Oil tank documentation. Many Long Island homes converted from oil to gas heat. Whether the oil tank was properly abandoned, removed, or documented affects closing. Buyer's attorneys routinely require oil tank documentation. Missing documentation triggers environmental contractor engagement — a 3-6 week process costing $1,500-$10,000+.
Smoke and carbon monoxide detector certification. Required in essentially every Nassau and Queens municipality before closing. Quick to schedule, but must be planned.
Village-specific requirements. North Hempstead, Garden City, and specific incorporated villages have specific inspection or permit requirements before transfer. Sellers who address these before listing avoid last-minute delays.
How to avoid this mistake. Address municipal compliance 60-90 days before listing. Pull retroactive permits for unpermitted work. Confirm oil tank documentation. Schedule smoke and CO certifications for the closing timeframe. Sellers who handle this early rarely have closing delays; sellers who handle it late routinely do.
Mistake 5: Choosing the Wrong Listing Agent
The listing agent selection decision affects almost every other outcome. Getting this wrong compounds through every subsequent step.
Red flags during the interview. Agents who quote substantially higher listing prices without substantive comp support (usually a pitch to win the listing that ends in reductions later), generic marketing plans without specifics, weak local knowledge for your specific area, unclear fee structure post-Sitzer/Burnett, or rushed communication during the interview.
How to actually verify agent claims. OneKey MLS public data shows recent sales, average days on market, and list-to-sale price ratios. References from 2-3 recent sellers give real signal. Their current active listings and recent solds show you their work directly.
The interview framework. Interview 2-3 agents before committing. Ask specifically about pricing analysis (recent comps, adjustments, realistic range), marketing plan (photography, MLS, network, brokerage tools), negotiation approach, and communication cadence. The listing agent selection guide covers substantive framework.
Mistake 6: Not Understanding Post-Sitzer/Burnett Buyer's Agent Compensation Decisions
The August 17, 2024 NAR settlement introduced specific decisions sellers now must make that many don't understand.
What changed. Buyer's agent compensation is no longer automatically included on MLS listings. As the seller, you now decide whether to offer buyer's agent compensation and how much. Written listing agreements are required with specific terms.
Common mistakes in the new framework. Offering zero buyer's agent compensation without understanding the buyer pool impact (buyers whose agents have signed representation agreements may pass over your listing). Offering the historical 2.5-3% without understanding it's now genuinely negotiable. Not understanding the trade-offs between buyer-covers-own-agent-compensation vs. seller-offers-compensation frameworks.
How to avoid this mistake. A listing agent operating current to the market walks you through the specific buyer's agent compensation decision before you sign the listing agreement. Ask specifically what buyer's agent compensation structure they recommend and why. The costs of selling framework covers substantive settlement mechanics.
Mistake 7: Emotional Attachment Affecting Decisions
Homes carry personal history. Sellers who don't manage the emotional attachment consistently produce worse outcomes.
Common emotional-attachment mistakes. Pricing above realistic value because "we've put so much into it." Rejecting reasonable offers because "the buyer doesn't understand what they're getting." Getting personally offended by inspection requests. Refusing to make preparation changes because "that's how we've always liked it."
The realistic reframe. Your home is a specific asset in a specific market with specific buyers making specific decisions. What you paid for it, what you invested in it, and what it means to you are personal facts. What buyers will pay is a market fact. Confusing the two produces worse outcomes.
How to avoid this mistake. Rely on substantive data over feeling. Comparable sales, showing feedback, offer patterns — these are more useful signals than personal attachment. A good listing agent absorbs the emotional labor of the transaction so you don't have to.
Mistake 8: FSBO Without Realistic Expectations
Selling without a listing agent (For Sale By Owner) is legal in NY, but the data on outcomes is genuinely useful.
What NAR data shows. FSBO sales typically close at meaningfully lower prices than agent-assisted sales for similar homes — often 15-20% lower. This isn't marketing spin; it's consistent data across NAR studies over multiple years.
Why FSBO produces worse outcomes. MLS syndication reach that generates competitive offers. Substantive pricing analysis based on comp knowledge. Buyer's agent networks providing qualified buyer flow. Negotiation experience under transaction pressure. Contract mechanics coordination. Marketing execution at professional standards.
When FSBO might work. Homes with a specific buyer already identified (family member, neighbor, off-market inquiry). Substantially unique properties where standard marketing doesn't apply. Sellers with substantial real estate transaction experience of their own.
How to avoid the FSBO mistake. If you're considering FSBO to save on commission, run the math honestly. Post-Sitzer/Burnett, listing agent fees are more genuinely negotiable — a substantive conversation with a listing agent about specific fee structure often produces better outcomes than FSBO.
A Recent Manhasset Seller Who Almost Made Three of These Mistakes
A recent Manhasset seller came in convinced her home was worth $1,595,000 — well above what recent comps supported. She'd been watching Zillow, which showed $1,485,000, and figured her home's updates and lot were worth the extra. She was ready to list at her number.
The interview conversation walked through 6 recent Manhasset comparables in her specific sub-area, adjusted for her home's larger lot and updated kitchen. The realistic range came in at $1,395,000-$1,425,000. She wasn't happy to hear the number.
She had a decision. She could interview two other agents and see if anyone would take the listing at $1,595,000 (Mistake 1: aspirational overpricing). She could rush the preparation window to save time (Mistake 2: under-preparation). Or she could work with substantive data.
She chose the data. She let go of the aspirational pricing, spent 3 weeks on targeted preparation ($8,000 in cosmetic updates and professional photography), listed at $1,395,000, and drew substantial interest in the first weekend. She had two offers by day 8 and accepted the stronger one at $1,425,000 — 2% above list, 60% higher than what Zillow had shown her but 12% lower than her original aspirational number.
Her situation was specific, but the pattern applies broadly. The sellers who avoid these mistakes typically produce meaningfully better outcomes than the sellers who make them. Substantive data over feeling. Preparation over rushing. Professional expertise over intuition.
Where to Start
For Long Island homeowners planning a sale, the right starting point is substantive planning 60-90 days before listing. The home valuation tool is a quiet first step without commitment.
For deeper context on specific mistakes: the Long Island pricing pillar covers what happens when pricing goes wrong. The pricing methodology guide covers substantive comp analysis. The listing agent selection guide covers agent selection. The home valuation guide covers what your home is actually worth. The seasonal timing guide covers when to list. The Long Island timeline guide covers how long the process takes.
The honest bottom line: most Long Island seller mistakes are preventable with substantive planning. Overpricing, under-preparation, ignoring municipal compliance, poor listing agent selection, and misunderstanding the post-Sitzer/Burnett framework are the most consequential mistakes. Each of these compounds through subsequent decisions. Substantive planning 60-90 days before listing prevents most of them. Emotional attachment affecting decisions consistently produces worse outcomes than substantive data-driven decisions. A good listing agent absorbs much of the emotional labor while producing meaningfully better outcomes than most sellers achieve on their own.
FAQs
What is the biggest mistake Long Island sellers make?
Overpricing by even 3-5% is the most consequential mistake. It feels reasonable to sellers but produces meaningfully worse outcomes. Overpriced homes remove themselves from the comp set of buyers who would have paid asking, sit for 30-60 days without offers, then typically reduce and eventually sell 2-4% below what accurate initial pricing would have achieved. Substantive comp analysis matters — a good listing agent walks through 5-8 recent comparable sales in your specific area with adjustments for your home's specific condition. Aspirational pricing based on what you paid, what you invested, or what Zillow shows produces predictable underperformance.
What NY paperwork mistakes cost sellers the most?
The most consequential paperwork mistake is not completing the NY Property Condition Disclosure Statement (PCDS) accurately. As of March 20, 2024, sellers must complete the PCDS — the prior $500 credit alternative is no longer available. The PCDS covers 56 questions including seven new flood-related questions. Complete it honestly with attorney guidance during contract preparation. The second most consequential paperwork mistake is ignoring municipal compliance (certificate of occupancy chain gaps, oil tank documentation, permit history) until 2-3 weeks before closing — by which time resolution options are limited and expensive.
How has the NAR settlement changed Long Island seller mistakes?
The August 17, 2024 NAR settlement introduced specific decisions sellers now must make. Buyer's agent compensation is no longer automatically included on MLS listings — sellers now decide whether to offer buyer's agent compensation and how much. Common new mistakes: offering zero buyer's agent compensation without understanding the buyer pool impact, offering the historical 2.5-3% without understanding it's genuinely negotiable, or not understanding the trade-offs. A listing agent operating current to the market walks through the specific decision before signing the listing agreement.
How do I avoid choosing the wrong listing agent?
Interview 2-3 agents before committing. Ask each specifically about pricing analysis (recent comps, adjustments, realistic range), marketing plan (photography, MLS, network, brokerage tools), negotiation approach, and communication cadence. Verify claims through OneKey MLS public data (recent sales in your area, average days on market, list-to-sale price ratios) and through 2-3 references from recent sellers. Watch for red flags: agents who quote substantially higher listing prices without substantive comp support, generic marketing plans without specifics, weak local knowledge, or unclear fee structure. The wrong listing agent produces meaningfully worse outcomes than a substantive interview process would have caught.
Is FSBO a good idea for selling a Long Island home?
Data on FSBO outcomes is genuinely useful. NAR data across multiple years shows FSBO sales typically close at meaningfully lower prices than agent-assisted sales — often 15-20% lower for similar homes. FSBO works occasionally: when a specific buyer is already identified (family member, off-market inquiry), when the property is substantially unique, or when the seller has substantial real estate transaction experience. Most sellers considering FSBO are trying to save on commission. Post-Sitzer/Burnett, listing agent fees are more genuinely negotiable — a substantive conversation with a listing agent about specific fee structure often produces better outcomes than FSBO.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
