My List of 10 Big Real Estate Mistakes
1. Letting your emotions take complete control and making an offer on the first home seen without looking at others.
Please do not get me wrong, I want to sell you a home. Many homebuyers, particularly first time homebuyers, fall into the trap of falling in love with the very first house that they see. I suggest looking at 3-7 more homes even if you do not want to. Then Sleep on it. Even in a sellers market when the homes were getting multiple bids, I still encouraged people to think overnight about one of the largest investments they would be making. It's important to visit a house more than once also I feel before making an offer. This way you can see the neighborhood itself and how it may change, depending on the day of the week and the time of day. Now go home and THINK about it and SLEEP on it.
2. Not using an agent (I know I am bias)
Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. REALTORS® can assist to determine your buying power while at the same time helping you understand different financing options and in identifying qualified lenders that might work best for you. They have a multitude of resources to assist you in your home search while at the same time providing objective information about each property. A REALTOR® can help you negotiate. They will provide due diligence during the entire process for start to finish and guide you through the closing process while making sure everything flows together smoothly and is stress free as possible. They can market your property to other real estate agents and the public using a variety of tools and knowing when, where and how to advertise the property. They are there to help negotiate on your behalf, objectively evaluate every buyer's proposal without compromising your marketing position and help bring a close to the sale of your Property.
3. Working with the wrong agent REALTOR®
Interview an agent before you sign a contract with them. That REALTOR® is going to be working for you, so make sure it's a good fit and your questions are answered. Meet them once in their Office and another time in your home, this allows you to see how organized they are, what kind of environment they work in and If they are on time or not. Once I have gone through an interview with clients, if they decide to use me. I ask for a buyers contract to be signed so I can represent them. I look at it this way, there are so many agents out there to choose from and if you have chosen me, then I am working for you. A contract is a sign of commitment both on my part and the buyer I work with. If no contract is signed, Then we really only have a one sided commitment and I do not like to work that way. I would not offer a half committed service to clients, why would I accept it from them?
4. Buying Property sight unseen.
With the Internet and virtual tours it is really easy now to look at properties and make an offer without ever seeing them. I can not express how many issues I have seen or heard over the last 4 years on this. People really need to look at what they are investing in. The Internet and virtual tours can be deceiving, and not everything some agents write down is fact, sometimes this can be misleading. A walk through is always the very best. If for whatever reason that is just not possible, hire an independent inspector that works for yourself to go look at the property and provide you with an assessment of it before an offer is ever even made. Its a little money spent, Paper work saved, and headaches avoided.
5. Sellers hanging out in the house while buyers are taking a tour.
I know, your selling YOUR home, but Sellers really shouldn't be around at the open house and showings. It creates is a little uncomfortable with the buyers and the seller might not want to hear objective feedback. People take things personally and tempers can flare up. That is not the time to have a blowup during a showing. By leaving, even if it's for a walk around the blocks, you allow the buyers and the agents to work on selling your home without confrontation and awkwardness.
6. Thinking that your home is a personal ATM
When the real estate market is really hot and values are rising, people tend to look at it like it's the stock market. Soon their home has become their personal ATM machine that they leverage, borrow and refinance against to finance whatever it is that they see worthy. But when things take a turn, and they will, all of a sudden that real Estate Stock market is upside down and People are in over their heads. Congratulations you just failed in the stock market game when you invest in real estate for your personal home or for investments, your much better off looking down the road for a longer term, rather then the shorter get rich fast approach.
7. Not getting a Professional Inspection
Unless you're an inspector or have build homes for a long time, I strongly suggest that you get an inspection. If a client chooses not to, I request they sign a release on my part in an addendum stating that I have explained the importance of a home inspection and they have decided to go without against my professional recommendation. Look around and find a good one. Most agents can give you a list of some that they have worked with. Avoid inspectors that look unorganized, sloppy, and are not up to date with technology. That is my personal feelings because Pictures and clean printed out reports are so much better to work with and explain they chicken scratch with little details. Those inspectors need to step into the present or get left behind.
8. Not having a Loan Pre-Approval letter set up.
When you are pre-approved, the Lender is stating what they will loan up to based on your financial information. Have that ready before you even start looking. Nothing is more frustrating then working with somebody only to find out they our in the wrong price market or they do not qualify for a loan. I will not work with buyers or start showing until that is taken care of. Why you ask? Because my time is valuable to me and I do not like to waste it. I know that many buyers don't really care nor have their own thoughts on that. It's real simple, if I did not value my time, how would I even hope client might? If listing a home I always make a suggestion that a pre-approved letter be sent over or faxed before the other agent tours with the client. There is no reason for a buyer to be going into other people's homes if they do not qualify for a loan or they are just taking a Sunday stroll killing time. A Pre-approval letter indicates that the person really is serious about buying a home and not just wasting time. I Just hate having me time wasted and choose not to. Really its not rocket science, sort that out first.
9. Putting the price of the home higher then the market will allow.
As a seller agent, it's really important to do your research in order to come up with a realalistic sale price. I personally look up what comparable homes in neighborhood have sold for. I would see long did those homes stay on the market, what price reductions they might have had. I take in consideration the condition, timing, trend, market, location, basically everything except feelings. A person feeling on their home is important, but that does not help give a price. A buyers Agent is looking at a priced homes and doing the same thing to determine a fair price to they house and to protect their client from over paying too much. So you see, by putting the house price up way to high in hopes to bring it down to what you want is serving now purpose in today's market. Agree on a price that will Sell and net the seller the right amount. It is always better to price a home in a selling range than to start too high and have to reduce. Once you reduce, people start thinking that there is something wrong or it was overpriced to start.
Also Beware of Agents, REALTOR®, that come in and says that they can get more price for your home then maybe you had been told before. I have seen this happen were one agent list the house, terminates a contract for whatever reasons because their best friends agent said they could get a higher price. After listing with the new agent the price was reduced in price to below what it was before. I hate these tactics and have zero respect for the agents that use them. It's basically to get a listing, that is all.
10. Buying the home because you love the set up.
Well you might want to remember that you are buying the house, not the stuff inside of it. Look past all that stuff and try to envision your things in the home. Staging is wonderful but they take it all away at the end. Make sure you measure the rooms and that everything you have will fit in the rooms and get through the door ways.
Timothy S. Butterworth
Oregon Realty Company
215 SE 102nd Ave
Portland OR 97216
timothybutterworth@comcast.net
Cell 503-960-4589
Office 503-254-0100
Fax 503-252-6366
VM 503-493-6711
Licensed Realtor in Oregon
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