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How to Avoid the Most Common Mistakes When Buying or Selling a Home

How to Avoid the Most Common Mistakes When Buying or Selling a Home

Buying or selling a home will likely be one of the greatest financial decisions most people will

make in their lifetime. Oftentimes this decision can be made from a place of feelings and

emotion rather than logic and wisdom. For many military families, these decisions are

compounded by difficult challenges like unfamiliar markets, doing business remotely, and the

additional stresses of a PCS move. By following some important guidelines, you are sure to be

better informed when buying or selling your home property.

Buying

One of the biggest mistakes that potential buyers make is not having a clear grasp of their own

personal finances and the costs associated with a home purchase. It’s very important to seek a

mortgage approval prior to shopping for a home; having a clear picture of how much house you

can afford can save a lot of heartache in the long run especially when you may be inclined to

buy more home than you can afford. Speaking of shopping, the house isn’t the only thing you

should be shopping around for. Think about educating yourself on various loan product options

(traditional loan, FHA, FDA, VA), mortgage companies, and real estate professionals.

Another mistake some people make deals with adequately investigating the neighborhood

where you are planning to buy. An important consideration to make is the average resale value

of homes in this particular zip code or neighborhood. Getting overly fixed on a particular house

that may not reflect the overall value of homes surrounding it is essentially emotion-led buying.

Be sure to research what the relative noise level is. Are there trains, busy roads, or an airport

nearby? What is the access to the roads and thoroughfares around the house? Will there be

ongoing construction surrounding you? What about updates and repairs to the specific house?

Selling

Buyers aren’t the only ones who need to pay attention when it comes to homeownership

transactions. Sellers, too, have some common mistakes to avoid, and underestimating the costs

to sell cost tops the list. According to Dave Ramsey , many sellers fail to account for agent

commissions, closing costs, staging costs, home inspection costs, repairs, seller concessions,

the cost of the next home, and moving expenses. While many assume the typical cost to sell is

around 5-6% of the home sale price for realtor commissions, that number can actually soar to a

total of 10% of the home sale price when all of the other costs are accounted for.

Another common mistake sellers make is overvaluing their home. Sentimentality, memories

made in the home, or costly repairs or updates that were made to the home can often cause

some to see their property as much more valuable than its actual monetary value. This blind

spot can similarly lead to homeowners not adequately preparing their home for a quick sale. Try

looking at curb appeal, need repairs, or updates objectively through the eyes of a buyer.

Finally

The greatest mistake that both buyers and sellers make is foregoing these transactional

processes with a licensed real estate professional. By a strict code of ethics, realtors act on

behalf of either the buyer or the seller they represent. Realtors have access to much more

information via the Multiple Listing Service (MLS) when it comes to shopping or listing a home.

Most also have greater networks of other real estate professionals in their immediate circles, a

variety of niche service providers at the ready (professional stagers, photographers, the name

or contact of a landscaper or repair person), and a social media presence that helps to get you

into or out of a home quickly, painlessly, and with the right protections.

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