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Mistakes, Questions & Conversation Starters with prospects!

I am creating a Q&A list for packets to give to buyers and sellers along with my area information newsletter, and I'm trying to make a list of common mistakes and how to avoid them, but first figuring out the mistakes. Do you see any I missed, that you would add? I happen to think this is a good way to cover yourself in the long run - after all, informed buyer's and sellers are our best customers!

I think these could also make some great conversation starters for prospects too! Ask people what they think are the biggest mistakes and why - it could really give you a good feel for how serious they are!

When buying a home, what are the three biggest mistakes people make?

Not Setting a budget
Picking the wrong mortgage
Picking the wrong community
Not knowing what homes really cost
Using a bad real estate agent
Not going back to check on a neighborhood
Forgetting to consider resale
Buying the most expensive sale on the block
Not doing an inspection
Forgetting about closing costs
Not getting what you want due to impatience
Trying to make a shrewd investment
Not buying at all

Worst mistakes when applying for a home mortgage

Getting pre-qualified, but not pre-approved for a home mortgage
Letting credit problems continue unabated
Too much house, too little money
No rate lock for your conventional or jumbo loan
Excessive closing fees.
No residual funds leftover
Not using a professional inspector
Waiting on home insurance
Signing documents without reading them
Relying on a set closing date
Becoming a 'Rate Shopper'
Believing You Need Perfect Credit and 20% Down to get Approved
Getting your loan from an Internet Lender
Working with a Lender Who Offers Few Loan Program Choices
Not Understanding the Difference between Banks and Lenders
Not Disclosing Everything to Your Lender
Don't make any large purchases on credit
Don't move large amounts of money around between your various accounts
Don't apply for credit cards or other loans
Make all of your credit card and other loan payments on time, every time
Don't switch jobs, as employment stability is a key factor in getting approved

Mistakes when Selling a house:

Refusing to Make Profit Inducing Repairs
Not Considering Other Financing Terms
Provide Easy Access for Showings
Priced Too Low/Priced Too High
Relying Solely on Traditional Methods To Sell Your Home
Market Timing/Seasonal Selling
Refusing to Make Cosmetic Changes
Wasting Time With An Unqualified Prospect
Don't Test The Market
Believing You are Powerless to Make a Difference
Believing All Realtors, Brokers & Others are the Same
Mistaking a Recent Refinance Appraisal for Market Value
Forgetting to "Showcase Your Home" to Appeal to the Buyer
Assuming All Buyers Are the Same and Selling to "Looky-Loos"

Posted by Jane E. Haas on 04/05/2007 11:33 PM

Comments (27)

buyers, sellers, mortgage, lenders, home, house, selling, real estate, realtors, mistakes, questions, faq

Post is included in group: RE Systems Integration

27 Comments on Mistakes, Questions & Conversation Starters with prospects!

APR

2007

Great List Jane! You hit on a few things I hadn't thought about. Thanks for taking the time to post.

This is a very thorough list. Just like Debbie said, a few of these items I don't typically touch on. Thanks!

Jane, a good list and will give us all something to think about. You really could have done several blogs on these subjects. I liek the quick list because people actually look at them. Its a reminder type of thing.

Hope everyone else can use something like this - I didn't post any answers since I know laws differ in other states, but a big discussion on the mortgage market and the huge mistakes people make when buying and selling and working with lenders is what really inspired all this! I like to think way ahead! ;)

APR

2007

A great list, Jane. Scary to think how many mistakes people can and do make. Some of these were things I had not thought of, at least not specifically. Hiring the agent who gives you the highest price rnage is a biggie, too.

Jeff

Yeah, that's true - they "buy" listings! I like to bring up ebay, since many people have been on it. The items that are over priced tend to be left in the dust, while the lowest priced items usually end up with bidding wars over the item - once people have their hopes set on the item, they just get in a frenzy bidding on it due to fear of loss! lol It's basic psychology! Of course, that won't work if they aren't into ebay! lol

Or they buy it by cutting their commission - but seriously, if someone gives in that easy on cutting their own commission, how good a negotiator can they be when it comes to the sale of your house! Will they cut the price of the house too??? ;) That's my response! Heh.

I came up with a few more for the sellers section! Ugh, my brain won't stop! it's almost 2AM! lol

Putting the home on the market before it's ready.
Over improving the home for the neighborhood.
Pricing the home based on what the seller wants to net
Hiring an agent based on non-business factors
Getting emotionally involved in the sale of the home
Trying to cover up problems, or not disclosing them
Not getting your ducks lined up before trying to sell

Fabulous list! Good job!

One more important one for the Sellers is to get a pre-listing inspection from a certified home inspector. It will help the seller know of any main problems and prepare both them and the agent from being surprised from something the buyers inspector might find that could delay or even prevent the sale.

Nice list a few things I hadn't thought of.

A pre-listing inspection will help put your property in front of the market.

Great List, don't forget about animals..not everyone likes them...They really should be gone when an agent shows the house

Jane,

Great info...Great list! As matter of fact, I recently made a post: Do's and Don'ts During the Mortgage Loan Process. It is quite similar to yours. I have bookmarked your post to make a closer comparison to mine to see if I may want to add one or more of your points to my Do's and Don'ts. Congrats on the Star!

Jane,

I had a guy wanting to refinance his house - all zero lot lines and he had converted his 1000 sq ft house into a 3000 by building a 2nd floor.... OVER THE CARPORT

it was a monstrosity that could never possibly comp... that was the prime example of overimprovement

I like your list

are you giving us permission to use it??

Yes I am - on my list i'm going to go into explanations as to why they are bad ideas, also going over it with the mortgage rep in my office, since Lord knows she's seen it all!

I think everyone could pretty much come up with their own way of using this though. Whether it be really good topics to reach out to customers, personal blog inspirations or maybe even a newsletter item (which is what i'm going to use it for.

Adding a few more!

Under buying a home:

Assessed value has no bearing on selling price.

Under mortgage:

Only have 1/3 or less on each credit card (need to reword that to make more sense, you know what I mean though!)

Where it says, Don't make any large purchases on credit - I added "until after closing day"

Good lists and great idea. I can't think of anything right now, but if I do......in the words on the CA governor....."I'll be back"

APR

2007

Great post, but even more so with the comments, this is very good information for our public as well, hope hundreds of people read this one.

APR

2007

Great list !!

Wow Jane, I think you got just about everything I can think of and more!!

APR

2007

Jane..... a very good list. Did you think about possibly adding some blogs that were written on these topics? Example... I just wrote one on the difference between pre-quals and pre-approvals. The difference between a Pre-Approval and a Pre-Qualification letter. I didn't read any of the comments yet, but I think this could add more value to your list. Kind of like giving the consumer a definition per se.

2nd... are you related to any of the Haas's that started Rohm & Haas? Just curious...

Last... CONGRATS on your 1st featured post. Nice job...

featured

jeff belonger

Rohm & Haas? Hmm, I don't know, not that i know of, but you never know! We have a town of Haas in Pennsylvania near Sunbury - my grandfather actually had the deed! lol

By the way, if you check out my other blogs, I have a really extensive list of gadgets, websites and more that might interest you. I found some really neat stuff for that one!

As for adding on to this one as each as a topic - that will be in the future!

Hey Jane... gee, someone else that is up late.... ;o) If you aren't sure in regards to the Haas thing, then you probably aren't related than. I am sure something like that would have gotten to you. ;o)

In regards to the list of gadgets and stuff. You said that you found some really neat stuff for that one? Maybe you lost me on that one... I think.

jeff belonger

Sorry, suddenly tired! lol

I found some neat stuff for that blog I meant - virtual toll free numbers, etc... my lil marketing tricks that anyone could use!

lol.. okay, I'll check it out. Thanks for letting me know. PS>.. so, who will go to sleep first? lol Or am I typing this in my sleep?

jeff belonger

haha I'm dozing off a lil while typing, but waiting for a tour to upload... so slow tonight!

BTW = as for the haas relatives - i have found several that i had no idea i was related too, so that's why i always say... you never know! (there was an eddie haas who played eddie munster! lol)

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