Buying and selling a property is not an easy task. There are too many things that can go wrong if information or a process is missed or skipped. But even with the degree of difficulty, purchasing a property is a must for many families and selling properties is recommended for those who want to move out.
Because of the serious challenges faced by home buyers and sellers, it is important to deal with the process slowly and carefully. The following are few common blunders done when purchasing or selling a property. Of course, you have to avoid these if you want your transaction to continue without problems.
For Home Buyers:
No detailed inspection of the property – The house looks great outside, but what about inside? Do not just check what you can see inside and outside the property. Look for defects in hidden places so that you will know if there is any reconstruction you need as soon as you move in.
Knowing more about the real estate agent – Real estate agents will either work for you or your seller’s interests. Learn more about the “bias” of the real estate agent before any transaction so that you can get the best price possible.
Ignoring credit history – Your credit history dictates your buying and paying power. This can easily affect your interest rate and even the chances of gaining the property you want to purchase. As much as possible, repair your credit history before entering negotiation.
Not establishing the specific budget before shopping for a property – It is highly recommended that you know how much you should spend before you take a look at properties. This will help you control your spending and not just agree on an expensive property because the house looks great.
Avoiding to double check the mortgage agreement – Even if you have a bad credit rating, you still need to look for the best mortgage possible. A slight difference in mortgage rates could translate to thousands of dollars in extra spending because of long term payments and taxes.
For Property Sellers:
Avoiding to clean the property – You have to carefully prepare for the open house. Better yet, you have to fix everything in the property before opening the doors to interested buyers. They can be aggressive with the pricing if they see something still needs to be fixed in your property.
Exploiting the emotions of the buyer – One of the biggest mistakes an inexperienced seller would do is to increase the price of their property because of the level of interest. Home buyers are not impulsive buyers and they can easily back away from the offer if they realize that the property is overpriced.
Working with the wrong agent – Do not just get any real estate agent to represent your property. Research a little bit and take note on the type of properties they specialize. This will help you sell your property faster and easily process the needed documents.
Agreeing to a bad listing contract – Do not agree to a real estate agent that will list your property without any clause to opt-out. You will never be able to sell your property without the real estate agent.
Not knowing the laws, terms and conditions and obligations when selling the property – Know first the legal requirements in selling the property. Also research on laws pertaining to properly selling your property. Knowledge of these laws and restrictions will help you deal with the process of selling easier without being scammed by the real estate agent.