Common Mistakes Made By Buyers And Sellers of Real Estate
As a buyer or a seller, your primary goal is to close a deal as fast as possible while also getting top dollar for your real estate transaction. To ensure this happens, more often than not, you need a professional real estate agent to stay on top of the process. As trusted advisors, they can assist in negotiating the best price for you.
However, most people shoulder this responsibility on their own and without market knowledge, they end up making careless moves that could have been avoided if an agent was on their side. This lapse of judgment has the potential to delay or disrupt a closing and can put your financial future at risk.
To help you avoid some basic errors that could prove to be costly, York National Realty Inc. has put together a list of the most common mistakes made by buyers and sellers of real estate.
1. Failing to make small cosmetic changes to your home before a showcase.
When selling your house, you have to look at it objectively and think about it from the house hunters’ point of view. Before the showcase, make minor enhancements to the house and maybe hire a professional home stager to arrange your furniture. Staging is about decorating your house for the buyers’ taste, not yours. A great place to start is with the front of the home and then move to the main entryway. Home staging is designed to increase the potential selling price and reduce the amount of time the house stays on the market.
2. Setting an overly high sale price.
To set a competitive sale price, look up for comparable homes that were recently sold in your neighborhood. Figure out the present going price and try to place yours somewhere in between, unless you have a special offer. It’s always better to price a home that way than to start with a high price and then be obliged to reduce it later. Once you lower the rate, it may give potential buyers the impression that something is wrong with the house.
3. Not planning a realistic budget.
Even if the bank pre-qualifies you for a loan amount of $400,000, it doesn’t necessarily mean you can afford to make the payment every month. Before hitting the streets for a house hunt, you should create a monthly budget of the expenses spent every month. Come up with a number that you are comfortable spending on your mortgage payment, aside from other expenditures. An easy way to do this is to calculate a third of your gross income and let that figure be the number you spend on the house. It is also a good idea to have six to nine months of mortgage payments in the bank, plus a little extra if you have any repairs that you might need to do.
4. Overlooking the extra and hidden costs.
Buying a home isn’t just about the money that you spend upfront; it’s about the rest of the money you have to spend beyond that. Find out your property tax amount, your water bill and the standard electricity bill in that home, especially if you’ve used electric heat instead of gas heat. You also need to factor in furnishings you may need to purchase before you can move in.
5. Waiting until spring to sell your house.
Spring is the busiest real estate activity period, but it doesn’t mean there are no buyers for the rest of the year. A tip for sellers is to emphasize your home’s seasonal amenities.
6. Not hiring an agent.
Selling a house involves much more than just placing a signboard on the front lawn. For one, you need to have a real estate agent. Without their assistance, you will not get on the multiple-listing service (MLS). In other words, agents will be unaware that your property is for sale. You also need to consider whether you are willing to show the house each time prospective buyers come to see it. If you plan on selling your home on your own, make sure a lawyer is present at the closing. It’s essential to have someone who can understand the complexities of the legal system.
If you’re looking for a real estate agent in Aurora, Ontario, reach out to York National Realty Inc. We are a boutique real estate brokerage firm with over a decade of experience. Our advisors are leaders in their profession and have been carefully chosen for their professionalism and unparalleled knowledge of the market.