Avoid These Five Mistakes When Buying Or Selling a Home

Buying or selling a house isn't like any regular transaction. After all, the item being exchanged between two parties is a massive property worth hundreds of thousands of dollars. The slightest errors could prove costly. When this much is on the line, you want to make sure every decision is calculated and every possibility is considered. Here are five common mistakes made by home buyers and sellers:

Mispricing the Property

Over- or under-pricing your property is a common mistake that could net heavy losses and prevent your property from ever being sold, according to Rusty Tweed, noted financial specialist and economist. Though you might be adding sentimental value onto your property's asking price, keep in mind that it has to stay objective and within a reasonable level. It's essential to know your market beforehand and get familiar with the comps of identical properties currently on the market and those that have recently sold. This will help you narrow down a good price tag for your property.

Skipping Brokers

Not hiring a broker to sell your property is risky. Simply put, you need the years of experience and in-depth market expertise that a professional property salesman brings to the table. In fact, there is statistical data backing this up - home sellers who try to manage the sale of their property on their own end up taking too long to sell the property and/or getting far less than homeowners who choose to work with a broker. While the average six percent in commission fees you pay to your broker does seem like a huge amount of money, it's dwarfed when compared with the potential value you get from working with an agent.

Working With the Wrong Agent

The realtor market is brimming with agents who are dying to sell your house or find the right property that best fits your individual circumstances. It's a big mistake not working with a broker, but it's an even bigger mistake working with the wrong one. Partner with a realtor who knows what they're doing and who knows the market like the back of their hand. Ask people you trust, such as family and friends, for references on a good agent that they worked with in the past to sell or buy their home. This is a good way to find suitable candidates without spending that much effort or money into the search and vetting process.

Neglecting Damages

Your property's structural integrity has a significant impact on its asking price. Weak foundation and deteriorating interiors not only devalue your property, but you can also be held legally responsible for any damages to surrounding properties or injuries to guests. The fines for such cases can reach thousands of dollars. From the buyer's perspective, it's a common mistake to not check every level and corner of the property. They get easily pulled into price and curb appeal, without paying attention to the underlying structure condition. As advised by Rusty Tweed, always do a thorough inspection before buying or selling a big-ticket item, such as a house.

Ignoring Financial Programs

Home buyers fall into the trap of making a down payment for their home early on. This sounds like a prudent approach to home ownership, yet you should be aware that there are other government-subsidized programs that allow you to finance a home with minimal down payment, if not zero. According to Rusty Tweed, VA loans are a very popular alternative to financing a home.

Final Thoughts

Buying or selling a home is no minor responsibility or feat. It takes a clear understanding of what to do and what not to do. For the latter, start with the five common mistakes listed above.

Author Bio: Adrian Rubin is a graphic designer and freelance writer who recently closed on his second home.