Common Pitfalls To Avoid When Buying Or Selling A Home
Whether you are the seller or the buyer, property investment can either be a smart financial move or a gamble. Your home is one of the biggest investments you will ever make, which is why every decision you will make is crucial. There is no room for guesswork here. It would appear as if a wrong move could impact your finances tremendously, and the thought of it alone makes us panic. Good news is, these pitfalls are bound to occur and thus, they can be prevented or remedied.
Here are common mistakes you should avoid at all costs when buying or selling your property.
Too Much Distraction
Having plenty of opportunities is a good thing, but sometimes they can be overwhelming that we tend to get distracted from our main goal. For both buyers and sellers, market trends and media presence could influence their plans. Sellers usually depend too much on news and information, hoping to increase their property’s market value. While this seems financially sound, waiting for too long can be a gamble especially when you need the money already. On the other hand, buyers tend to consider buying stuff they do not need at the moment like an awesome new car, just because they think it would suit the dream along with their home.
Strong media impact can never be avoided, but if you are fully aware of your priorities and budget, you will be able to identify what’s right for your current and future needs. Determine what’s short-term and long-term for you, and organize your budget based on those goals.
Not Hiring an Agent
It is totally understandable that buying or selling a home is already a costly process and getting a real estate agent can be quite cumbersome. However, doing everything by yourself will cost you more than it can save you. A lot of people going solo had suffered because of mental exhaustion and loss of money due to poor decision making.
When you hire an agent, you will gain three things: convenience, expertise and perspective. A good agent will set a reasonable and viable selling price for your home, increasing your chances of selling. They will also be interacting directly with potential buyers, saving you the hassle.
Agents are naturally experienced in marketing and negotiation, so you could save more money or generate more income compared to doing it alone. Paperwork can be too demanding and time-consuming but agents will take care of everything for you for a smoother process.
Misleading or tricking someone into buying your home is an act of bad faith. Thankfully, several laws and regulations are protecting buyers’ rights and generally, they are getting smarter than when checking out properties. Petty tricks such as photoshopping and false advertisement will never work as they can easily figure out the truth.
Just be honest with the facts and if you can do something about it, then do it ASAP. A good restyling of fixing can do the job, or you can adjust the selling price to match the buyer’s expectations.
Not Budgeting Properly
This is a common pitfall most buyers and sellers commit. Buyers usually tend to overspend out of impulse or forget to consider other costs that are involved aside from the home itself. Some also consider buying expensive property (even if it is way out of their budget) thinking that the returns would be higher in the long-run, Meanwhile, sellers are also not innocent. They incline to spend so much in renovations that it blows their budget away.
This is why getting a real estate agent is vital. They can help you with these life-changing decisions. Banks usually offer a limit for lending based on your ability to repay the loan. If your situation is dire at the moment, enlisting an expert prospective might be your best alternative.
Exorbitant Selling Price
Many people capitalize on their properties to be sold at a higher price in the future, and when the right time comes, they do so in a way that is too unreasonable for the buyer to afford. The market is competitive and sometimes unforgiving, and with this highly ambitious attitude it is never hard for buyers to move on to the next home. Other cases are even worse; they price their property out of nowhere, without doing proper research.
The only solution to this problem is market research. Check competing properties that are for sale in your area and price range, on a regular basis. Monitor auctions, seek out for an agent’s guidance, the more the better. The truth could be a little discouraging, but misinformation could harm you more.