People often talk about being a “first time home buyer”.
Rarely do you hear anyone say, “I am a first time seller.”
The process for buying a home can be unnerving. Selling a home can be intimidating and even scary. There are many questions that need answered.
Common Questions When Buying or Selling a Home
- ”How much is my home worth?”
- “Where am I going to move?”
- “How much is this going to cost?”
Before you put your home for sale on the market, you need to get answers to those important questions. First things first, you make a plan. A good real estate agent can help you answer those questions.
He or she will prepare a comparative market analysis (CMA) on your home to determine its selling price. There are many factors that go into determining the likely selling price. Location, condition, curb appeal, and the real estate agent’s marketing plan all have a major impact on price.
Typical Mistakes of First Time Sellers
Be careful if you interview multiple real estate agents. If the agents are aware of the competition there is a higher likelihood that one of them may inflate their value in order to obtain the sale’s listing. Often you’ll find that in such circumstances once the listing agreement is signed, the agent will use multiple price reduction tactics over time. Once this occurs you will be chasing the market resulting in an overall lower sales price.
Many people struggle with the uncertainty of where they are going to live. Sometimes with an experienced and good agent, problems arise if it sells quickly after it goes on the market. Once the home goes under contract there are severe time constraints, sometimes even just 30 days.
Tips When Purchasing a Home
When purchasing a home, contact a lender who can determine a feasible range in the price of a home you can afford. Lending standards have changed. Study your options ahead of time. Search for your home on websites like Zillow or scottkompa.com and you will gain an insight on home values. After you receive an offer on your, you will have a better list of prospective homes you wish to see.
If you are moving away from the area, instead of picking an agent you are unfamiliar with, have your local real estate agent put you in contact with a top realtor where you intend on moving to. It will save you the anxiety of having a stranger influencing such an important financial decision as well as save you some headaches!
Don’t Forget the Costs!
Your plan of action cannot be complete with out costs. Your real estate agent and lender team can provide you with an estimate of your closing costs on the sale and purchase of your home. In addition to these, other costs could include the expense of moving, storage, or possibly renting. Your real estate agent is on your team and are there to help you design, implement, and complete your plan. Hiring a great real estate agent can make the entire process enjoyable and not just a burden that comes with owning and/or selling a home.