HGTV recently aired its special episode on the 25 Biggest Real Estate Mistakes. For those buying or selling a home, these helpful tips could help you avoid costly mistakes on one of the biggest investments of your life. The list was compiled by some of the top real estate experts in the field, including brokers; investors; contractors; market experts; buyers; and sellers.
Although the show did a nice countdown towards the top mistake, I thought it would be most appropriate for me to just start with the number one mistake when selling.
#1 Not Staging Your Home:
That's right; the biggest mistake noted was not properly showcasing your home for potential buyers! When selling, take care of any deferred maintenance issues; make minor enhancements to the home; and make the investment in hiring a professional stager.
A professional home stager can assist you in basically every aspect of preparing your home to show at its best. In doing so, statistics show you can increase the selling price of the home while decreasing the amount of time it remains on the market.
If you're selling, avoid the number one real estate mistake and consult with a professional stager in your area!
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Sold By Design provides Home Staging & Interior Redesign services in Pinellas & Hillsborough counties. We are located in the St. Petersburg / Clearwater area. We offer our privately owned staging inventory to suit the needs of both vacant and occupied properties. We additionally provide staging services for model and builder spec homes.
To learn more about our services, please visit our website:
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#2 Setting Too High of A Sale Price
Price your home competitively from the beginning. You don't want to make the mistake of pricing it too high and later having to do a major price reduction, as it can send the message that something is wrong with the home.
As a seller, do research, educate yourself, and have realistic expectations. You'll also want to ensure you align yourself with a reputable realtor who's knowledgeable on current market conditions.
#3 Buying What You Want, Not What You Need
It's a good idea to re-evaluate your current living space and make a list of the things you're missing. This will help you identify your needs and remain more focused when house hunting. It's estimated that most Americans live in a house for an average of 9 years, so you can factor that in when "trading up" for your dream home.
#4 Overlooking the Extra and Hidden Costs
Don't forget to factor in expenses past the initial cost of the home. Calculate costs of taxes, utilities, electric, and any additional furnishings needed for the home.
#5 Buying a Home Without a Professional Inspection
Hire a reputable and qualified home inspector. They can detect a number of things potentially wrong in a home that can't be seen by the average person. Ask the inspector to provide you with a detailed written report and photographs.
#6 Falling in Love With the First Property You See
Don't fall in love with the first home you see. On average, look at least three more comparable houses in the area. After you have viewed all of the homes, re-evaluate and decide which one fits your needs the most. Remember that this is potentially one of the biggest investments you'll make, so do your homework and make wise decisions.
#7 Skipping the Loan Pre-Approval Step
Being pre-approved for a loan is an important step in the buying process. It sets a realistic expectation of what you're able to buy. By skipping this process you can set yourself up for a lot of disappointment in falling in love with a home that's not within your price range. You additionally create disappointment with a realtor whom has wasted time showing you properties that aren't in your price range, and sellers who may have gotten their hopes up in a potential sale. In fact, some sellers are now only allowing realtors to show their properties to pre-approved buyers. Being pre-approved for a loan indicates that you are a serious buyer.
#8 Doing Major Renovations/Remodeling Before Selling
Due to construction projects usually being underestimated in time and cost, experts suggest that minor upgrades to the home will bring you a higher return on your investment. While I personally wouldn't recommend major construction projects as additions or major overhauls, I do believe kitchen and bathroom renovations can help sell a home. It's important to consult with an expert on these projects to evaluate your options. Often time's sellers can complete a "cosmetic facelift" that will significantly increase the home's aesthetics, without the high price tag of a complete remodel. What project returns the biggest value on your money? The answer is enhancing curb appeal.
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Sold By Design provides interior redesign services. We would be happy to consult and assist you with future projects.
To learn more about our services, please visit our website.
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#9 Not Being Pro-Active at Closing
Ask your broker for closing paperwork at least 24 hours before your closing. Review all paperwork, including charges, and make a list of questions to address. As a buyer, don't forget to do your final walk-through of your soon-to-be home prior to the closing date.
#10 Visiting the House Only Once
Visit the house at different times and days of the week to get a good feel for the neighborhood. This will additionally give you further opportunities to think about your decision to purchase the home.
#11 Not Setting a Realistic Budget
The importance of being pre-approved for a loan has been mentioned, but it's also important to keep in mind what your other expenses are and come up with a realistic budget. A common formula is to take a third of your gross monthly income and set it aside for your housing expenses. It's also suggested that you have approximately six to nine months of mortgage payments set aside in a savings account.
#12 Buying the Most Expensive Home on the Block
"The most expensive house will only depreciate in value over time, rather than appreciate, which is what you want. Also, those houses are often not the first house to sell because they are usually overbuilt to the neighborhood. It's absolutely critical that you research the neighborhood before you buy to find out what the price point should be." HGTV
#13 Not Hiring an Agent
"There's a lot more to selling a house than just putting a sign on the front lawn. If you don't have an agent, you will not get on the multiple-listing service (MLS). That means that other agents are not going to know that your property is for sale. Another thing to consider is if you are willing to show the house each time someone wants to come by and look at it? If you do plan to sell your house on your own, always have a lawyer present at a closing. It's really important to have someone on your side who understands all the complexities". HGTV
#14 Picking the Wrong Agent
Hiring an agent should be conducted as serious business. Do your research: ask neighbors and friends about personal referrals; go to Open Houses and observe how the agent interacts with people; and meet with the potential agent at their office to see how they operate and conduct business. This person is going to be working for you. You want someone who is reputable and has your best interest in mind.
#15 Trusting Everything a Real Estate Advertisement Says
Learn the meaning of real estate lingo. Certain descriptive words can convey hidden messages. For example: cozy can actually mean the place is small; as- is may mean the property is a fixer upper. Don't believe everything you read, and if it sounds too good to be true...it probably is.
# 16 Buying Without Actually Seeing the Property
80% of buyers are previewing available homes on the internet, particularly due to the increasing number of virtual tours being used. Apparently some of these buyers are taking the risk in purchasing a home without seeing it in person. Real estate experts caution against this for a number of reasons. The first reason for caution is that it's really difficult to get a "feel" for a property without seeing it in person. You need to be able to walk through the property yourself and thoroughly inspect it visually. Another reason for caution is that some of the virtual tours being used can be deceptive. What may appear to be a very spacious family room on-line may actually turn out to be a much smaller family room when viewing it in person. While it may seem like a good idea to use an ultra wide lens to photograph a property or use in a virtual tour, it can disappoint a buyer in what is actual reality.
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At Sold By Design, we provide photography and virtual tours that capture the true sense of the property rather than give potential buyers a distorted view of the space.
To learn more about our services, visit our website:
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#17 Not Thinking About Resale
When updating and renovating your home, think about how those decisions will weigh when it comes time to sell. Think ahead and decide what will appeal to the majority of buyers when trying to sell. Some homeowners have chosen "trendy" remodeling only to find out that it's not so popular when trying to sell.
#18 Failing to Market Your Home in Different Ways
Don't limit yourself to a few for-sale signs. Talk with your agent about different marketing strategies they plan to use. It's imperative to use quality photographs and virtual tours to create positive first impressions when marketing on-line. Speaking of on-line, there are many options for marketing your listing. There are some that are free to use and will increase your pool of potential buyers-particularly those looking to relocate to the area.
#19 Treating Real Estate Like the Stock Market
In a hot real estate market when homes are appreciating really fast, people can get caught up in the frenzy like it's the stock market. Experts caution not to play in the real estate market like it's the stock market, but rather look at it as a long-term approach.
#20 Waiting Until Spring to Sell Your House
Although springtime seems to bring the heaviest real estate activity, experts remind that buyers are looking 365 days of the year. Go ahead and put your home on the market and emphasize whatever amenities it may have for that particular season. Don't sit around waiting and miss out on a potential opportunity to sell.
#21 Trying to Make the "Hard Sell" While Showing
Experts warn to not hang around during open houses or showings. Trying to sell buyers on all the reasons why you love the house may not go over well. Give potential buyers some space and opportunity to give their honest feedback about the house to the agent.
#22 Losing Money With Auctions
As a buyer, be aware of possible outcomes of an auction. A great starting bid can end not so happily, particularly if you got caught up in the excitement of the bidding and went over your initial budget. When buying an auctioned house be aware that you typically don't get inspections, warranties, and guarantees that a conventional sale offers. Make sure you ask about any liens on the property, and if you'll be responsible for paying property taxes on top of the bid price.
#23 Not Researching the Neighborhood
Remember that when you're buying a house, you're also buying into the land around it. It's essential to research the neighborhood you'll be buying in. Look around the area, check out the school district, check out local parks and amenities, and attend a community meeting.
#24 Not Providing Easy Access for Showings
Make it easy for potential buyers to view your home. Offer convenient parking, remain flexible with your schedule and available for showings, return phone calls promptly, etc...
# 25 Buying a House for its Décor
Don't get so distracted by the home's décor that you loose focus on its features. Pay attention to the layout of the home and the square footage. Imagine your own belongings in the home and how rooms will accommodate your furnishings.
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The show will air again on April 20th at 5:00 p.m. and May 14th at 4:00 p.m.
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