Everyone makes mistakes, right? Learn how to avoid these pitfalls when buying or selling your home so you don’t have to learn from your own blunders! Here are top mistakes home buyers or home sellers make that could ruin a potential sale. We’re prepping you now, so you won’t be unpleasantly surprised later.
If you’re a Home Buyer, avoid making these mistakes:
1 – If you find a home you love, make an offer on it! Buyers decide to pass on a home they love, simply because they feel they haven’t looked at “enough” homes yet. The first love sells, and then buyers spend their time looking for the same home they passed on earlier in their search process. Don’t let your favorite home get away, act now!
2 – If you don’t offer a high enough sales price, because you think you can get a better deal, you’re probably going to swing and miss. In a seller’s market, as we are experiencing in the market today, you’ll end up losing out on the home to someone else who made a better offer than you. Do your research and make an educated offer, one that will win you your dream home.
3 – When you assemble your offer, and ask for too much from the seller, you could lose the negotiations and the opportunity to purchase the home. Examples of this include, a late closing date (outside of the area normal period), a long inspection period with a high repair allowance (increases the seller exposure), not offering enough earnest money deposit to show good faith of moving forward on the purchase, and not providing required documentation to show you can afford the home, whether it be a proof of funds letter for cash purchases or a pre approval letter for a mortgage.
If you’re a Home Seller, avoid making these mistakes:
1 – The first mistake happens before the home is even listed for sale, when the seller chooses not to purposely stage their home to show it off in the best light. They simultaneously choose to list their home at the highest possible price. Often, sellers want to do the least amount of work while asking for the most money. You can only ask for the most money if you put the time, resources & energy into making the home look its best by staging & marketing it appropriately.
2 – Sellers who turn down their first (reasonable) offer, by choosing not to negotiate, typically are turning down their best money. There are carrying costs to be considered and when offers are turned down, carrying costs keep carrying on and end up costing the seller more than if they were to have cut their losses with the first offer.
3 – If you are selling your home, disclose, disclose and disclose. If you do not disclose facts which are not readily known by a buyer that materially affect the value of the home, you will lose out in the end. These facts are always uncovered at some point in the contract to closing process or after a closing. A seller will be in hot water when the buyer learns of the fact and learns it was not properly disclosed.
For other helpful tips to buy or sell your home, check out our Home & Lifestyle Series on the blog.