According to the National Association of REALTORS® Profile of Home Buyers and Sellers, in 2018, a typical for sale by owner home sold for only $217,900 while an agent-assisted home sold for a whopping $295,000. That's a difference of $77,100 or 26.1%! In this case, you could have used a real estate agent two times over and still earned more money compared to selling your home on your own.
Listing agents are hired by the seller. Do you think they are looking out for the seller's best interest or yours? Be sure to hire a buyer's agent, who represents your interests exclusively, so you can ensure you do not get taken advantage of in the buying process.
Although standardized forms are available, each real estate transaction is unique. Some contracts will need additional addenda or specialized terms for sale. Attempting to piece together documents without knowing what you are doing could land you in a costly legal battle in the end. Is it worth it?
Home inspectors provide a general overview to status of the home. Although it is not required a buyer get a home inspection, not doing so could cost you thousands of dollars if a needed repair is missed. Always get a home inspection and if there is something specific that needs further insight, hire an expert.
Real estate agents who hold open houses work for the seller. They are not looking out for the buyer's best interest. Hiring a buyer's agent will allow you to set up exclusive showings of homes so you can freely express your opinions and thoughts about the property without accidentally harming your negotiation power.
Each real estate brokerage sets its own fees for the services it provides. It may seem like a better "deal" to save a few bucks on the real estate broker's commission fee, but if your home doesn't sell, you really didn't save anything. In fact, you risk hurting the marketability of your home should you choose to re-list once it doesn't sell the first time around.
The entire home buying process is very particular with regard to money and credit. Do not move any large amounts of money between accounts, do not open new lines of credit, do not make any large purchases. Doing any of these could affect your approval for your new home mortgage and could stop the entire buying process. Speak with your mortgage lender for more specific details.
Be sure to verify the repairs you are making are necessary and that they will recoup the value you are spending to make them. Many times homeowners will make costly repairs just before selling, and they do not recover the costs as they had anticipated.
According to the National Association of REALTORS® 2021 Profile of Home Staging, 23% of buyer's agents and 23 % of seller's agents reported an increased sale price between 1%-5% for staged homes compared to non-staged homes. The purpose for staging a home is to help the buyer visualize living there. It sounds simple, but creating this vision is crucial in securing a sale and potentially receiving a higher sale price.
Homes receive the most exposure when they first hit the market. It is crucial that the entire marketing strategy be correct from the beginning (this includes setting the correct list price). Over-pricing a home will deter serious buyers. All price decreases and extended-lengths of time the home sits on the market will be seen by potential buyers and will negatively affect the end sale price.
Many home owner's insurance policies do not cover flooding. It is imperative that you find out what is covered in your policy. Flooding accounts for a significant amount of homes damaged each year and you do not have to be in a flood zone for your home to flood!
Although saving 20% may save you money by not requiring mortgage insurance, it is not always necessary to save that amount to purchase a home. There are many down payment assistance programs and first-time homebuyer programs available. Be sure to work with a real estate agent and mortgage broker who understand the available programs you may qualify for.
MY FLORIDA DREAM HOMES, LLC, REALTORS®
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