Here are 10 mistakes buyers and sellers must avoid in this market.
Whether you’re a buyer or seller, there are 10 mistakes you need to avoid in this real estate market if you want to get the best deal possible:
1. Overpricing the property. Just because we’re in a seller’s market doesn’t mean you can price your property for $100,000 more than what you bought it for last year.
2. Underbidding for your favorite home. The last thing you want to find out is that you lost out on your favorite home by underbidding by just $1,000, $2,000, or $10,000. This happens all the time: Buyers miss out on their preferred homes by margins they would’ve been happy to pay.
3. Not understanding the contract you’re signing. It’s important to understand that the contract you’re signing is a binding contract between both parties—not an option to exercise. You’re legally bound by this contract.
4. Buying a property without a legal warranty. Demand is so high and supply is so low that many properties are being sold without a legal warranty, but you need to do your due diligence before trying this.
5. Waiving the building inspection. If you buy a property without inspecting it, you’re asking for trouble.
6. Not amending your seller’s declaration to reflect the inspection report. You must make this report available to future buyers. Not doing so can put you in a world of hurt, legally speaking.
7. Leaving your disclosures incomplete. As a seller, those disclosures are there to protect you.
8. Not having an updated certificate of location. This may seem like an unimportant detail, but it takes three to four months to get a certificate of location in this market, and not having an updated certificate can cost you more and create a big mess at closing.
9. Not being fully transparent with your Realtor. For example, I know of a buyer recently who intended to build a pool in the backyard of the property they planned on buying, but they never informed their agent of their intent. There was no certificate of location on file for the house, so the transaction got all the way to closing before they found out that building a pool was prohibited. If you don’t tell your agent your plans, they can’t protect you from what they don’t know.
10. Not choosing the best Realtor to represent you. When choosing a Realtor to help you sell your house or buy a great investment property, it’s important to choose wisely.
We at Century 21 Unique help hundreds of clients each year buy, sell, and invest, so don’t hesitate to give us a call. As always, if you have any other real estate questions, feel free to reach out to me as well. I’m happy to help.