Top 10 Real Estate Tips for Buyers and Sellers
If you are looking into either buying or selling real estate, you may be trying to figure out which advice to listen to. Consider checking out property listing sites like PropertyGuru Malaysia whether you are buying or selling property and read these top ten real estate tips for buyers and sellers.
Buyers Should Not Overreach on Price
A bidding war can cause you to overspend, but spending too much can make your house difficult to resell once the prices stabilize or sink. If you’re planning to live in your house long term, paying a premium on the house is not necessarily a bad idea. However, you should set a bid ceiling and look at similar homes in the neighborhood to determine how high to go. Don’t place all of your eggs in one basket. It’s important to have other options, so that you are less inclined to overbid on one house.
Sellers Should Not Set The Price Too High
Sellers often make the mistake of setting the price too high from the start, according to Realtor Mag. Unfortunately, this often causes potential buyers to overlook your listing and your house remains on the market for a long time and ends up underselling. You are actually much more likely to receive an offer close to your home’s real value if you set the price at about five to ten percent above the market. However, you should consider whether your home has better qualities than the other homes in your area. If so, it might be worth it to go much higher than the average market value. Also, do not feel like you need to offer to pay closing costs or offer additional incentives to the buyer.
Buyers Should Be Flexible
If the best houses are getting bought quickly, then make sure you are as prepared as possible before going home shopping. Get preapproved for a mortgage and have your preapproval letter at the ready when you are visiting potential homes. Also, make sure that you have an inspector at the ready for an immediate property visit if you find a home that you want to buy. You should also have your agent ask what the home’s sellers value most in the sale. This tactic can help you prepare a quick contract with fewer contingencies and conditions but conditions that are tailored to what the seller wants. This strategy will help you stand out from the crowd when you are ready to buy your dream home.
Sellers Should Understand Their Agents’ Commission
Many sellers question whether they should or need to pay their agent’s full six percent commission. For that reason, many agents are now accepting less than six percent from sellers and offering less of a split to buyers’ agents in a new practice called “sell to the commission.” However, when the agents’ fees are lower, the buyers’ agents tend to be less excited about showing your house, which means that it will likely take much longer to sell. Consider whether it is worth it to lower your agent’s commission or if you want your home to sell as quickly as possible.
Buyers Should Hire Inspectors to Oversee Construction
Some buyers hire untrained help to cut costs or cut corners by painting walls without primers and substituting cheaper materials like low-grade countertop granite. However, it’s best not to cut corners when it comes to your home. Hire a professional independent inspector to oversee the construction and make sure that the builder has sufficient expertise by searching online reviews, customer ratings and complaints. Ask very specific questions about the builder and crew’s experience and certifications before moving forward.
Sellers Should Know Which Rooms to Sell
While upgrades don’t usually pay for themselves, there are two rooms that can make your home sale and those are the kitchen and the master bedroom.
The kitchen is the most important room in the house, so make sure it looks as aesthetically pleasing and homey as possible. Hide any small appliances and add simple decorative touches. You may want to update the kitchen with new granite countertops or appliances, but even adding simple updates like new hardware for cabinets, new faucets, new lighting fixtures and fresh paint or wallpaper could carry a lot of weight when it comes to selling your home. Make sure you remove any magnets from the front of the fridge to make it look as clean and presentable as possible.
Make sure your bathtub and toilet look sparkling for prospective buyers. You can also add a few simple updates like a new faucet, new lights, new caulking or even a new towel rack or mirror. Clean and de-clutter your medicine cabinet and make sure the rest of the master bathroom looks fresh, clean, de-cluttered and depersonalized.
Buyers Should Beware of Hidden Costs
There are several hidden costs to consider when purchasing property, according to Bankrate.
● Home inspection: Regardless of whether your mortgage insurer requires an inspection, you should get one to make sure your new house is structurally sound.
● Property taxes: You usually need to pay a few months of property taxes up front when closing on a home.
● Appraisal: The bank will need to figure out how much your new home is worth.
● Private mortgage insurance: This insurance depends on your down payment and credit rating.
In addition to these closing costs, you will also need to pay home insurance, title insurance, a deed-recording fee, survey costs, credit report fees, flood insurance and home owners association dues, so allow at least an additional $5,000 on top of the sale price for closing costs.
Sellers Should Consider Their Next Home
You might find that your property sells much more quickly than they anticipated. If this is the case, you should make sure that you have your next property lined up in time to move once you sign your current house over to the highest bidder. You can request a leaseback from the buyer, allowing you to stay where you are until you find a replacement, but this period is usually only limited to about 60 days. You can also slow the selling process by asking for time before closing. Regardless, you should have prospective new homes and financing options lined up.
Buyers Should Seek Out Neighborhoods on the Rise
If you’re searching for a new home, look for neighborhoods that are still fairly inexpensive but clearly on the rise. Look for close proximity to new business centers or train stations or new retailers and restaurants.
Sellers and Buyers Should Not Agonize Over Timing It Right
Whether you’re trying to sell or buy your home, do not agonize too much over timing your sale or purchase to coincide with the pop of the housing bubble. Too many sellers focus on selling soon enough for optimal profit, while many buyers try to swoop in on houses before they sharply increase in price. The current housing market has a small supply and a large demand and real estate cycles rarely explode. Rather, they usually deflate slowly. It’s best to focus on real estate as a reliable long-term investment, since the housing market is generally prone to small peaks and valleys rather than sharp dips and boosts.