Today I want to share some of the most common mistakes I see buyers and sellers making in their transactions. Knowing what to avoid is important as knowing what you should be doing.
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When it comes to real estate, a common topic of discussion is the things buyers and sellers should do to succeed in the market.
However, today I want to talk about something a little different. As important as it is to know what you should be doing, you should also understand there are certain things that buyers and sellers alike should avoid.
First of all, I often see buyers and sellers making the mistake of letting their egos get involved. When negotiation becomes about winning instead of the goal at hand, things can quickly go downhill. When buyers and sellers put their egos aside during negotiations, they will both be much more successful in getting what they want.
Another mistake I see from people during real estate transactions is sellers not investing in the preparation of their home. My team has the resources to help sellers make these kinds of investments, which can bring a bigger return, but ultimately, our help can only go as far as a seller’s willingness to take it.
Overpricing, too, is another thing that sellers need to avoid. “The second agent wins,” is a saying that has come as a result of just how often sellers make this mistake. What this means is that when sellers overprice their home the first time, they are unsuccessful and will ultimately hire a second agent later to try to do the job right.
Pricing a home too high with the promise of bringing it down if need be will always be a losing strategy. A home’s price should be set correctly from the start if you want to net more than you would if your home sat on the market through a series of price reductions. Overpriced homes cost sellers millions every year.
Buyers, too, should avoid doing certain things. For example, many buyers are reluctant to get into a bidding war. If you want to win, you have to be in it. A great home in a great location at the right price is rare to come by. Letting a good opportunity pass you by could lead to a lot of regret.
Additionally, many buyers make the mistake of not wanting to go over list price. If you’re going to be in a home for a long time, going over the price by even a few thousand dollars isn’t going to be a big deal. When I bought my home in 2001 and paid $2,500 over list price, people thought I was crazy.
However, today, that home has appreciated by six figures. As a buyer, you shouldn’t hesitate to go over list price if it’s truly the right home.
These mistakes cost buyers and sellers alike a lot of money over the course of their real estate transactions.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.