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? Moving locally or out of state? Are you going into a retirement community? What activities do you expect to be involved in after working days are over? 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 and costs of 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 show wear, paint gets dull and shabby, landscaping can become overgrown, and roofs deteriorate. Often times as we live in a house we "live with" minor inconveniences that we intend to fix "some day." It is not unusual not to notice conditions that are glaringly obvious to a buyer. How old is your roof? The average lifespan is 25 yrs. How old is your furnace? The average lifespan is 15 yrs. How old is your hot water heater? The average lifespan is 10 yrs. Is there asbestos insulation covering your heat pipes in the basement? Do you have a septic system? Has it been pumped and fully inspected within the last two 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? Real estate law is extensive and complex; the contract or sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall apart or cost you thousands of dollars for repairs, inspections, and remedies for title defects. If there are defects in the title, or if the property is in conflict with local restrictions, you must remedy them. Some States require a "Seller's Disclosure" form to be filled out when the property is offered for sale. An attorney is recommended for all real estate transactions. However, all attorneys are not real estate specialists. Your Realtor should be able to recommend several good attorneys. It is your REALTOR's® job to know the laws governing real estate transactions. They are required to attend ongoing training programs to keep up to date with these 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.
Pricing the House Incorrectly:Whether a house is priced too high or too l how, 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. The house that sells today is the best one on the market in the price range. The sale of a house is a competitive enterprise. Ask your Realtor to show you what 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. Rarely do they notice a reduced price. The saddest sign anyone can put on a sign rider is "Price Reduced". That means the house was not priced right in the first place. The buyers will ask, "If the price was wrong, what else is wrong?"
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 adhered to federal licensing standards can spot problems that you might not be able to see. Expect problems to be clearly explained, repair expenses closely calculated, maintenance costs estimated, and a written report delivered within a day or two. Most-contracts are contingent upon the outcome of several inspections such as: wood-boring insects, excessive amounts of radon gas, structural soundness, and the condition of the heating, electrical, and plumbing systems. These problems must be corrected or the buyer hasevery right to cancel the contract.Getting an inspectionup front can save money by giving you time to shop for the best repair price instead under pressure.
Failing To Be Pre-Approved for the Mortgage on the Next House: Do not waste hours searching for a home that is not in your price range! Save time and money by pre-qualifying for a loan. Before you go shopping for a home, you need to determine how much you can afford.
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