Some things are simply out of a would-be buyer or seller’s control. But, as a would-be buyer or seller, you can learn from and make decisions based on those who have gone before you.
There exists a former buyer who, if he could, would have done more legwork before buying. Conversely there’s a current seller who will take the next under-asking-price offer from a buyer more seriously.
Whether you plan to buy or sell, there are some real estate decisions that buyers and sellers can — and should — make. Here are five to get you started.
Buyers: Get your financial house in order
Planning a home purchase takes time and effort, so you should consider meeting with a mortgage professional early in the year. Know your credit score and understand what your financial situation looks like from a lender‘s perspective.
If you have credit issues, identify what they are and the necessary steps to correct them. Sometimes, it can take six months to see your FICO score move up the much-needed 20 points to get you a better mortgage rate.
Sellers: Think of your home as a product
When it comes time to sell, your home becomes another product on the market. Buyers will compare it and its price to competing properties.
The properties that are priced right and show well sell the quickest.
Pricing will get worked out once you’re ready to list, but showing well can start way in advance. A home that shows well is free of clutter, clean and as up-to-date as possible.
Start clearing out old stuff now. If there are things deep in your closets that you don’t think you’ll use between January and the time you move, consider a storage locker or making space in the garage.
Decide what you are willing to change. Is your kitchen or bathroom out of date? Are you willing to spend the money now to upadate them? Do you need to refresh your house with a coat of paint? Get some contractor bids now so you know how much the upgrades will cost. If you are not willing to update, then at least you can give the bids to the Realtor and they can let the prospective buyer know how much it will cost to professionally have the upgrades done..
You can spread out the costs of home repairs and changes over several months so it is easily manageable.
Here is a website with information about hiring a contractor http://www.hiringacontractor.com/
Buyers: Start feeling out the market early
You may think you only need to go to open houses once you’re ready to buy. But in reality, a buyer needs a couple of months learning the marketing, understanding home values, the prices per neighborhood and the market in general.
Going to open houses in the neighborhoods where you want to buy will allow you to start feeling out the market. It may also be the best way to meet your future real estate agent. Many agent/buyer relationships are forged at open houses.
Once you engage an agent, you may make several offers before you get into your dream home. Having your agent along for the ride will allow you to compare and contrast homes you’ve visited to the home you eventually buy.
The homes you see and your experience feeling out the market will serve as the building blocks toward becoming an informed buyer and making your best offer.
Sellers: Understand your timing and exit strategy
One of the biggest stresses on a seller is trying to plan a purchase and a sale at the same time.
Can you afford to close on the new home before selling? If so, for how long? Do you need to sell the property first? If so, will the potential sale price support a home purchase in the neighborhood you want to be in?
If not, what other areas should you be looking in? Selling and buying at the same time brings up all kinds of financial, emotional and physical stress.
Uprooting yourself from your home is not easy. What if you have to go into short-term housing? How will you get that set up and how long would you need to commit for?
If you can afford to purchase and then sell, do they need to happen quickly? Are there things you can be doing in your current home so that once your new home closes, you’ll be ready to list?
It’s a lot to think about and plan for, and it helps to have a strategy in place well before you have to take action.
Buyers and sellers: Engage a real estate agent now
Planning a home purchase or sale takes time. Engaging a real estate agent early in the process will allow you to have an expert on hand as you start to put the pieces together.
A good real estate agent doesn’t just show and sell homes: They can be your strategic adviser, even well in advance of any actual transaction.
On the seller side, if you pulled a permit to install some new windows or replace some dry rot in 2005, likely the contractor issued a permit. But did he close it out?
A good agent will figure that out and clean it up before it becomes a transaction issue. You should use your agent to literally get your house and listing in order.
For buyers, having an agent with you from the start is like having an experienced, second set of eyes and ears.
Having so many transactions under the belt and years of market knowledge in their head, a real estate agent’s opinions, thoughts and ideas can save you a lot of time and money.
What’s more, they can keep you on the right path toward identifying the best home, and they’ll see you through the process all the way to the closing.
some information provided by Zillow.com
