LocalThe Built Environment

Mistakes Made during the Home Buying Process

by: - November 29, 2018
312 Views   no discussions

Written by Garn Todd Joseph
Website & Advertising Assistant for the Millenia Group of Companies

Your home is an important asset to own. Not just its financial benefits but also because of what it represents. A home offers security. It is generally viewed as a place of love, where memories are made, where families are built.

It is because of these and many other reasons that many individuals desire to one day own their home. And just as there are reasons to want to own a home there are several reasons why individuals would want to sell their home: from personal reasons such as moving away, or accommodating a growing family, to financial reasons.

Whether you are selling or buying a home the real estate process can be a daunting task that if not handled properly can be exhausting and both the owner and the buyer can cause the process to be more difficult than it already is.

Here are a few tips to help homeowners avoid making mistakes that could hinder the selling process.

1)      Overpricing

Most sellers have a tendency to overprice their property. One of the main causes of overpricing results from the homeowner’s emotional attachment to their property. As a property owner, once you have made the decision to sell you should detach yourself emotionally from the home because this attachment does not affect the buyer’s decision.

Bear in mind that a real estate transaction should be viewed and handled mainly as a business transaction. Homeowners can also overprice due to the property features that they believe to be of high value. However, what may seem appealing to the owner may not have the same appeal to the prospective buyer. The best way to avoid overpricing is by formulating a selling price based on the most recent property valuation and taking the price of similar properties in the area under consideration.

2)      Not Trusting the Agent

One of the most significant components of any personal or business relationship is trust. As a homeowner looking to list your property with a real estate agent or agency you have to ensure that there is an element of trust. Before listing your property, ask as many questions as you need to get comfortable working with the agent. If at the end of the conversation you feel like you cannot trust the agent it would be best to look elsewhere in order to avoid the tension that distrust is most likely to cause down the line.

Similarly to homeowners, buyers can make mistakes during the real estate transaction that they may eventually regret later:

1)      Lowballing

As a home buyer it is only natural that you would want the lowest price possible, however there is a big difference between negotiating to get a more affordable price and lowballing. Sometimes buyers can come in with unrealistic expectations about how much the property is worth. If you feel that the selling price is a bit steep and you really love the property, when negotiating it would be best to make a realistic offer that is not too low from the owner’s asking price.

2)      Searching for the cheapest property

Individuals searching for homes to purchase on a strict budget often keep their eyes open for the cheapest property they can find. What some homebuyers fail to consider is that most times cheaper properties tend to have many issues and require renovations. It is wise to find out as much about the property as you can, its value, structural integrity, etc. without only considering the price.  Before purchasing a home, you should be aware of anything that may be wrong and factor your findings into your final decision.

 

Were the above tips useful?  Share this article with family and friends.  If you need any clarification on this topic, feel free to email us at feedback@millenia.dm.