CENTURY 21 Green Realty Inc., Brokerage*
- 6980 Maritz Drive #8
Mississauga, ON L5W 1Z3
COMMON AND CRUCIAL MISTAKES PEOPLE MAKE WHEN BUYING AND SELLING REAL ESTATE
COMMON AND CRUTIAL MISTAKES PEOLE MAKE WHEN BUYING AND SELLING REAL ESTATE
- 1. Skipping the Loan Pre-Approval Step
Getting pre-approved for a mortgage is not just a good idea, it’s an ABSOLUTE MUST! Especially in today’s market, when we face multiple offer situation almost every second time. When you are pre-approved it means that a lender has studied your finances and credit and has committed to lending you a specific amount of mortgage dollars. The lender is just waiting for you to find the right home and make an offer on that property. Unquestionably, mortgage pre-approval will give you a huge advantage in negotiations and likely will save you money.
2. Picking the Wrong Agent
In Real Estate, like in any other business we do have incompetent irresponsible people. Real Estate (even though it doesn’t seem this way at the first glance) is a very complicated business and must be treated accordingly! Hiring a part timer or new agent might cost you! Ask for references, ask for a track record. Keep in mind that the person is going to be working for YOU, and the amount of money you going to save or overpay in a transaction will be in direct proportion with your agent’s skills! Talk to your friends who've sold or bought houses and had good experiences with their agent, go to open houses and observe how an agent interacts with other people. Ask questions, it’s your home we’re talking about!
3. Not Researching the Neighborhood
It's absolutely critical that you research the neighborhood before you buy. Check out the area, amenities, the school system to be sure that your address corresponds with your requirements such as the right school with good ratings. You're not just buying a house, you're buying a home!
4. Losing Money or House In a Multiple Offer Situations
In today’s market we see more and more that properties are sold above asking price. While the starting bidding price for a house in multiple offer situations might be a good deal, it doesn't mean the final price will be. Make sure that you are very strict with your budget when you are bidding; do not go over your final price because you got wrapped up in the excitement of a bidding war. Another important thing to keep in mind is that when you bid on a property with multiple offers, the Sellers most likely will choose the offer with less or no conditions. The whole process is very stressful. It’s important that you are guided by a professional and understand the risk of the situation.
5. Trusting Everything a Real Estate Advertisement Says
Don't assume every ad is a fact! Remember: Listing Agent works for the seller! It’s his/her job to bring as much money (your money!) as possible to the seller. Agents are very creative these days, For example, "cozy" normally means small, and "as is" means a fixer-upper, no warranty on anything whatsoever. Follow the old adage: If it sounds too good to be true, it probably is!
6. Buying a House for Its Decor
Remember that you are buying the house, not the things inside it, so make sure you see beyond the decorations and look at the bones of the home. Focus on the floor plan and the square footage. You also might want to measure the dimensions and graph out how that's going to work with your belongings.
- 1. Failing to Showcase Your Home (CRUTIAL)
Preparing your house for sale is not just dusting, vacuuming and mopping. Your goal is to sell your home as quickly and as profitably as possible. Prepare your house for sale is a four step plan, designed to maximize the value of your house: Decluttering, Repairing, Cleaning and Revitalizing! Each step builds on the other to turn your home into the kind of desirable sanctuary that buyers look for in any market conditions!
2. Picking the Wrong Agent
In Real Estate, like in any other business we do have incompetent irresponsible people. Ask for references, ask for a track record. Keep in mind that the person is going to be working for YOU, and the amount of money you going to net in a transaction will be in direct proportion with your agent’s skills! Talk to your friends who've sold or bought houses and had good experiences with their agent, go to open houses and observe how an agent interacts with other people, how hard he or she works to sell a house.
3. Setting Too High of a Sale Price
As a seller, it's really important to do your research. To come up with your sale price, look up what comparable homes in your neighborhood have sold for. Figure out what the going price is and try to put yours right in the middle of that, unless you have something extra-special to offer. Nothing will damage the sale as much as overpricing. Most buyers wouldn’t even bother to come to look at the house. It's always better to price the house right at the beginning than to start too high and have to reduce.
4. Not Providing Easy Access for Showings
Make your house easily accessible to potential buyers. Keep your house ready, make sure there’s no cooking smells, try not to require notice of more than two hours for showings. Don’t be around during showings. Make sure there’s a parking available. Remember the first impression is the strongest one.
5. Trying to Make the "Hard Sell" While Showing
If you are selling your house, you really shouldn't be around at the showings or during the open house. You might want to try to sell the place on all the reasons you think the house is great, but that might not translate to the buyer. If you leave, you allow the buyers to give unbiased objective feedback to the agent, which is only going to help you in the end.
20. Waiting Until Spring to Sell Your House
Spring is the busiest real estate activity period, but that does not mean that you’ll get most money possible selling in spring. There are number of strategies to sell for the maximum price, regardless of market seasons or conditions.
18. Failing to Market Your Home in Different Ways
Don't market your home with just a "for sale" sign. Explore other marketing tools as well. Talk to your real estate agent about the marketing that he or she will do. It's something that should be set up from the initial signing of a contract with an agent. Some homes have virtual tours and photographs online. If you choose to go that route, don't forget to include the floor plans. That way, people can see the layout of your home and know if it's right for them.
8. Doing Major Renovations/Remodeling Before Selling
Minor upgrades usually have a higher return on your money than tackling major renovations before placing a home on the market. The main reason? Huge construction projects always cost more than you think they will, and they also take longer than you expect. The best place to spend money is outside. Research shows that increasing the outside appeal often returns the most value on your money. It's what gets buyers inside the house.