There was a recent poll done by The Texas Association of REALTORS® that revealed the most expensive mistakes that Buyers and Sellers make when purchasing or selling their home.
The top 5 mistakes that Buyers make are as follows:
Overpaying for their home.
The top 5 mistakes that Sellers make are:
Remodels that don’t pay off.
Price TOO high.
I see these mistakes done over and over again. And without the help and guidance of a great REALTOR®, Buyers and Sellers are going to keep making them. As you can see, price is a HUGE factor. If you’re a Seller, pricing your house too high can cause disastrous results! An overpriced home will sit on the market longer, thus stigmatizing it, leaving Buyers to wonder, “Why has this house been on the market so long? There must be something wrong with it!” So unfortunately, in the end, it will sell for less than what it should have (fair market value) and cause the Seller to waste valuable time.
Equally as bad is when a Buyer overpays for their home! In this fast-paced market where homes are selling in HOURS, not days, Buyers are nervous about not finding a home to purchase! After writing a couple of offers that don’t get accepted, panic starts to set in… and logic goes out the window. As a result, a Buyer agrees to pay too much for a house, and when they plan on financing it, there is a high likelihood that it won’t APPRAISE for the selling price; and this typically doesn’t present itself until the Buyer is well into the transaction. Their only choice is to try to negotiate a lower price with the Seller (good luck with that!) OR come to the closing table with cash to make up the difference between the appraised price and the selling price.
Now let’s discuss “No inspection”. I would NEVER allow one of my Clients to purchase ANY home without getting an Option Period for inspection! An inspection done by a professional will uncover any unforeseen defects with the home or repairs needed; major or minor. These problems can then be negotiated with the Seller for an outcome that is agreeable to all parties involved. Better yet, get an inspection as a Seller BEFORE you even put the house on the market! This way you will be eliminating any surprises down the road… and you won’t have to negotiate the deal twice.
I could expand on all of the other mistakes, but in my opinion as a REALTOR®, pricing and inspections are the most important aspects in a transaction. Don’t make the same mistake so many others have!!
Submitting an offer on a home without ever setting foot inside is not new… and now with the COVID-19 Pandemic, it has become more common place for buyers who simply don't want to take any risks. But is this a smart thing to do?