Real Estates 25 Biggest Mistakes

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Real Estate Agent - Solid Source Realty
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Real Estates 25 Biggest Mistakes I wanted to share this information to those who were unable to see the broadcast on HGTV of the biggest real estate mistakes.  These are in order starting with the biggest mistake a seller or buyer can make.  I know most of these are common sense to Realtors, but...
05/06/2010
I wanted to share this information to those who were unable to see the broadcast on HGTV of the biggest real estate mistakes.  These are in order starting with the biggest mistake a seller or buyer can make.  I know most of these are common sense to Realtors, but I thought it might be helpful to ...
09/15/2008
Rainer
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Paul Fogle

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Real Estates 25 Biggest Mistakes (edit/delete) I wanted to share this information to those who were unable to see the broadcast on HGTV of the biggest real estate mistakes. These are in order starting with the biggest mistake a seller or buyer can make. I know most of these are common sense to Realtors, but I thought it might be helpful to provide these to clients. 25 Biggest Real Estate Mistakes 1. Not Staging or Showcasing your home to its full potential You want to stage your home to attract buyers. This means that just because you like the decor or the paint color on the walls that a buyer will. A seller who stages a home or makes changes will usually get around 7% more for their home and it is on the market fewer days. As a seller you really want to maximize the selling points of your home. 2. Setting the Sale Price Too High You want to set your sales price compared with homes that are comparable to yours that have sold. If a home is priced too high then it will stay on the market longer and then you will have to reduce the price which leads sellers to believe that something is wrong with the home. 3. Buying What You Want Instead of What You Need As a buyer you need to look at what you live in now and make a list of the needs you want in a new house. People buy what they desire instead of what they actually need in a home. Always remember that you can always upgrade in the future especially if buying your first home. 4. Overlooking the Hidden Costs Buyers sometimes overlook the hidden costs of owning their own home. A buyer should always get an idea of what the monthly utility costs are, HOA fees if any, property taxes, how much it will cost to furnish the home, and any maintenance that needs to be done. 5. Not Getting an Inspection Make sure that you get an inspector that you trust. Usually it is best to get an inspector based on a referral either from an agent or someone else you know. An inspector can see things that a naked eye is unable to see. 6. Falling for the First Property You See As a buyer do not let emotions get in the way. It is always good to look at several properties before you make a huge purchase. 7. Skipping Pre-approval for the Loan This will help a buyer know exactly the price range they should be looking in. If you start your search in a price range you cannot afford and then go back down to a price range you can afford you may be disappointed when you compare the homes in the different price ranges. 8. Renovating Before Selling This means do not do any major renovating such as adding a room onto your home. This can take longer than you thought originally and costs more that you expected. It is better to do minor renovating especially working on your curb appeal. Minor renovations tend to have a higher return when you go to sell. 9. Not Being Proactive at Closing You should be able to get what is called the HUD 1 statement at least 24 hours before your closing so that you can look over the documents before you get to the closing table. The closing process can be stressful and exciting all at the same time so just be aware that even closing attorneys can make mistakes. 10. Visiting a Home Only Once If you have only seen a home once and are already set to buy, you should probably go and preview the property again. You will notice more things about a home the second time around. It is also a good idea to drive around a neighborhood at different times during the day and to do a mock drive to and from work so you can see what your commute will be like on a daily basis. 11. Not Setting a Realistic Budget You do not want to be house broke. Always start at the bottom of your budget when house hunting and then work your way up if you have to. As a buyer you need to take into consideration your monthly spending habits as well. 12. Buying the Most Expensive Home in the Neighborhood Home is an investment and if you already paid more than your neighbors for a home then you may not get the return you expect when you go to sell your home. 13. Not Realizing Time and Effort in a FSBO People who try to sell their home on their own have no idea what it entails. Most people assume that an agent puts a sign in the yard and waits around for the home to sell. If you are wanting to list your home on your own you need to educate yourself, do your homework, and be involved. You will need to know what comparable homes in the neighborhood sold for and know how to market your home. You may need to contact a lawyer as well just in case. When you try to sell your own home you are not marketing your home to the fullest. An individual is not able to put his her home on MLS, FMLS, or Realtor.com. Realtors have more marketing opportunities. 14. Picking the Wrong Agent A buyer and seller should treat trying to find an agent like a job interview. You may need to meet with the agent to see what type of environment he or she works in. Open houses are a great way to meet agents and look at homes at the same time. 15. Trusting Everything an AD Says Ads can be mis-leading and again this is why you need an agent to be able to understand the real estate lingo. 16. Buying Without Seeing the Property Again photos, ads, and videos can be deceiving. There is a thing called photo shop and professional photography that make a home look bigger for example. When you look at a home on the internet you don't get the feel for the home like you do when you see it in person. 17. Remodeling and Not Thinking About Re-sale Do not go overboard personalizing your home when you remodel. Make sure that when you do remodel that it will be appealing to buyers. 18. Failing to Market Your Home in Several Ways Make sure if you are working with an agent that he or she is marketing your home in several ways. Creativity really counts. There are many things an agent can add to a listing such as floor plans, aerial shots, sellers disclosures, virtual tours, and even a video of your neighborhood. 19. Treating Real Estate like the Stock Market Real Estate moves a lot slower than the stock market. This is especially important for people wanting to flip homes and investors. Just remember that you may be stuck with the debt until you sell the home. It is much better to take a long term approach. 20. Waiting until Spring to Sell People are always buying real estate. It truly depends on the circumstances and location of a home. If the home has season amenities those should be emphasized when selling a home. For example, if the home has a pool then Spring time may be a great time to put it on the market or if it is in a ski resort then maybe the best time to put it on the market is in the Winter months. 21. Trying to Make the Hard Sell The seller should never be there at an open house. It will distract the buyers and make them feel uncomfortable. It is hard to give feedback that is not biased if the sellers are there. 22. Thinking an Auction Automatically Means Good Deal Educate yourself about the other homes in the neighborhood that have sold. Make sure you are aware if there are any liens on the property, because if you buy the home and there are then you will be responsible to pay those. Be aware that there will not be a home inspection to see if there are any defects. 23. Not Researching the Neighborhood Location is the most important aspect when buying a home. The location should compliment what you and your family enjoy. Make sure that a home is in the school district you want for your children and one that has good re-sale value. School districts are constantly changing so this is very important. 24. Not Providing Easy Access for Showing Your Home Make your home available to potential buyers. The best way is to put a lockbox on your door so that agents have easy access to your home. If an agent brings buyers to your neighborhood and you do not have a lockbox or if it is appointment only do you really think your home will get shown? The answer is usually not. Your home sells by having buyers come and preview your home. 25. Buying a Home for its Decor Always remember that once you buy the home that all the furniture, paintings etc. will be removed. Always think about your lifestyle and what your own personal items will look like in the home. You need to measure the dimensions of the home to make sure everything you have will fit. The key is to see beyond the decorations and focus on floor plan and the square footage. Paul Fogle REALTOR Metro Brokers/GMAC Real Estate Atlanta Ga. 404-843-2500 Office 678-859-0992 Cell paul.fogle@metrobrokers.com Please visit my website at www.paulfogle.com