Common Mistakes to Avoid When Buying or Selling a Home
in the Katy, Cinco Ranch, Pecan Grove, Sugar Land Area
Failing To Have A Plan Evaluate your current situation. Why are you planning to sell your house?
Are you moving up to a larger house? Do you need the money out of this house to make your move? One thing you need to do is to get a realistic idea of exactly how much cash you will be getting out of this house when it sells. Are you going to move locally? What mortgage amount can you really afford with payments including higher taxes and insurance? Can you afford a house significantly better than the one you already have.
Are you moving down to a smaller property? What are you going to do with your furniture and other things that you have collected over the years? Will you be comfortable in a smaller place? Are you retiring?
Are you moving up to a larger house? Do you need the money out of this house to make your move? One thing you need to do is to get a realistic idea of exactly how much cash you will be getting out of this house when it sells. Are you going to move locally? What mortgage amount can you really afford with payments including higher taxes and insurance? Can you afford a house significantly better than the one you already have.
Are you moving down to a smaller property? What are you going to do with your furniture and other things that you have collected over the years? Will you be comfortable in a smaller place? Are you retiring?
Are you moving out of the area because of employment? How fast do you have to be in your new location? Are housing costs higher there, or lower? Is your employer helping with sales costs, moving costs, temporary housing, etc? How does your family feel about the move? One reluctant teenager can seriously undermine the entire process.
Are you the executor of an estate? What is the time schedule for your plan?
Failing To Take A Hard, Serious Look At The Condition Of The House
Houses wear, paint gets dull and shabby, landscaping can become overgrown, and roofs deteriorate Often times as we live in a house we just live with--minor inconveniences that we intend to fix someday. It is not unusual to not notice conditions that are glaringly obvious to a buyer.
How old is your roof? An average lifespan is about 18 years. How old is your air conditioner and heater? An average lifespan is 15 years. How old is your hot water heater? An average lifespan is 10 years. Is there any obvious water damage from old leaks? Have you had any improvements done to the house without permits and inspections? Are your hardwood floors scuffed and scratched? Are your carpets worn?
Any of these conditions that are noticed by the buyer may make him bypass your house and buy another. Or any found during the home inspection can cause the buyer to cancel the sale. It is best to have someone with fresh eyes take a hard critical look at your house. A good Realtor will do this and make his or her recommendations.
Houses wear, paint gets dull and shabby, landscaping can become overgrown, and roofs deteriorate Often times as we live in a house we just live with--minor inconveniences that we intend to fix someday. It is not unusual to not notice conditions that are glaringly obvious to a buyer.
How old is your roof? An average lifespan is about 18 years. How old is your air conditioner and heater? An average lifespan is 15 years. How old is your hot water heater? An average lifespan is 10 years. Is there any obvious water damage from old leaks? Have you had any improvements done to the house without permits and inspections? Are your hardwood floors scuffed and scratched? Are your carpets worn?
Any of these conditions that are noticed by the buyer may make him bypass your house and buy another. Or any found during the home inspection can cause the buyer to cancel the sale. It is best to have someone with fresh eyes take a hard critical look at your house. A good Realtor will do this and make his or her recommendations.
Finding the Right Realtor
It's interesting that in the real estate business someone with many successfully closed transactions and years of experience usually costs the same as someone who is inexperienced. Bringing that experience to bear on your transaction could mean a better price at the negotiating table, selling in less time, and reducing the number of hassles. Your agent should be a skilled, win-win negotiator!
It's interesting that in the real estate business someone with many successfully closed transactions and years of experience usually costs the same as someone who is inexperienced. Bringing that experience to bear on your transaction could mean a better price at the negotiating table, selling in less time, and reducing the number of hassles. Your agent should be a skilled, win-win negotiator!
Failing To Get Pre-Approved For The Home Loan On The Next House
Don't waste hours searching for a home that is not in your price range! Save time and money by getting pre-approved for a loan. Before you go shopping for a home, you need to determine how much you can afford. Use only a lender that is recommended to you. Don't select one off of the internet. Get a recommendation from your realtor or friends who have sold recently. (I work with several lenders and will be happy to refer you to one or more.) Once you are preapproved for a mortgage, you will know your buying power-you will save time by looking only in your price range.
Imagine for a moment that when you and your Realtor initially draft your offer for the home you select, you are already approved for the loan- IN ADVANCE. No stress, no worrying about qualifying, no concern whatsoever about your ability to qualify would stand between you and the home of your dreams. In today's market, a pre-approval can be a powerful negotiating tool. Many owners will not accept an offer without a pre-approval. If there is more than one offer on the same house, the pre-approved buyer has the advantage. Pre-approval is like offering cash to the seller. You deserve the peace of mind and negotiating power by getting an approved loan before you make an offer.
Don't waste hours searching for a home that is not in your price range! Save time and money by getting pre-approved for a loan. Before you go shopping for a home, you need to determine how much you can afford. Use only a lender that is recommended to you. Don't select one off of the internet. Get a recommendation from your realtor or friends who have sold recently. (I work with several lenders and will be happy to refer you to one or more.) Once you are preapproved for a mortgage, you will know your buying power-you will save time by looking only in your price range.
Imagine for a moment that when you and your Realtor initially draft your offer for the home you select, you are already approved for the loan- IN ADVANCE. No stress, no worrying about qualifying, no concern whatsoever about your ability to qualify would stand between you and the home of your dreams. In today's market, a pre-approval can be a powerful negotiating tool. Many owners will not accept an offer without a pre-approval. If there is more than one offer on the same house, the pre-approved buyer has the advantage. Pre-approval is like offering cash to the seller. You deserve the peace of mind and negotiating power by getting an approved loan before you make an offer.
Pricing The House Incorrectly
Whether a house is priced too high or too low, it can cost you thousands of dollars. Obviously a house priced too low will net you less cash at closing. However, a house priced too high will take longer to sell. The homebuyer today is an educated consumer. On average a buyer will see 18 homes before purchasing and many more on the internet. The house that sells today is the best one on the market in the price range. The internet has make this process easier. The sale of a house is a competitive enterprise. Take a look at the homes you are competing against.
Some people will say, "I can always lower my price later." Both Realtors and buyers are looking for new listings. A Price Reduced sign means the house was not priced right in the first place. The buyers will ask, "If the price was wrong, what else is wrong?" Homes on the market for a long time become "stale".
Whether a house is priced too high or too low, it can cost you thousands of dollars. Obviously a house priced too low will net you less cash at closing. However, a house priced too high will take longer to sell. The homebuyer today is an educated consumer. On average a buyer will see 18 homes before purchasing and many more on the internet. The house that sells today is the best one on the market in the price range. The internet has make this process easier. The sale of a house is a competitive enterprise. Take a look at the homes you are competing against.
Some people will say, "I can always lower my price later." Both Realtors and buyers are looking for new listings. A Price Reduced sign means the house was not priced right in the first place. The buyers will ask, "If the price was wrong, what else is wrong?" Homes on the market for a long time become "stale".
Failing To Obtain A Home Inspection From A Qualified Inspector
The job of a professional home inspector is to look over every major part of a home and write a report that judges the homes quality and condition. A home inspector reports on the structural and mechanical condition of the home. A well-qualified inspector who has adhered to state licensing standards can spot problems that you might not be able to see, Expect problems to be clearly explained, and a written report delivered within a day or two. Additional specialized inspections may be necessary.
Most-contracts are contingent upon the outcome of several inspections such as: wood eating insects, structural soundness, and the condition of the heating, electrical, and plumbing systems. These problems must be corrected or the buyer has every right to cancel the contract. Getting an inspection up front can save money by giving you time to shop for the best repair price instead of being under pressure to get repairs done immediately.
The job of a professional home inspector is to look over every major part of a home and write a report that judges the homes quality and condition. A home inspector reports on the structural and mechanical condition of the home. A well-qualified inspector who has adhered to state licensing standards can spot problems that you might not be able to see, Expect problems to be clearly explained, and a written report delivered within a day or two. Additional specialized inspections may be necessary.
Most-contracts are contingent upon the outcome of several inspections such as: wood eating insects, structural soundness, and the condition of the heating, electrical, and plumbing systems. These problems must be corrected or the buyer has every right to cancel the contract. Getting an inspection up front can save money by giving you time to shop for the best repair price instead of being under pressure to get repairs done immediately.
Not Knowing Your Rights And Obligations
The sales contract is a legally binding document. Although realtors are not attorneys, realtors are involved in an on-going training program to keep up to date with real estate laws. You deserve to have an agent who is not only knowledgeable about the transaction but is also willing to educate you throughout the process so you will feel more comfortable.
Fred Miller, Realtor 281-924-2531
www.RichmondKatyHomes.com fredmiller9@gmail.com Information About Brokerage Services, Consumer Information
The sales contract is a legally binding document. Although realtors are not attorneys, realtors are involved in an on-going training program to keep up to date with real estate laws. You deserve to have an agent who is not only knowledgeable about the transaction but is also willing to educate you throughout the process so you will feel more comfortable.
Fred Miller, Realtor 281-924-2531
www.RichmondKatyHomes.com fredmiller9@gmail.com Information About Brokerage Services, Consumer Information
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