Home Buyer Mistakes:
Mistake #1: Not knowing how much they can afford before making an offer.
The easiest way to avoid this mistake is to get pre-qualified for a mortgage by a lender so you'll know in advance exactly how much you can afford.
Mistake #2: Not realizing in advance who the Real Estate Agent really represents.
Most people think that the agent they are working with is working for them. Unless the agent is working as a buyer representative, they represent the seller.
Mistake #3: Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes.
Mortgages can and should be part of your total financial investment planning. Check with your accountant. Your CPA will be able to tell you what the long-term effects of a new mortgage will be on your overall financial picture.
Mistake #4: Not discovering hidden defects before buying a home.
This is one of the most expensive mistakes and it is also one of the easiest to avoid. Have a professional pre-purchase inspection done before you close
Mistake #5: Not knowing how their credit affects their ability to buy or refinance a home.
Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review your credit file in advance and possibly suggest things you can do to help improve your score.
Home Seller Mistakes:
Mistake #6: Basing the asking price on needs or emotions, rather than the true market value.
Many times a seller will base the list price on what they paid or invested into the property. This can be an expensive mistake. Overpriced homes take longer to sell, and eventually net the seller less money. Consult a professional Real Estate Agent, they can assist you in pricing your home correctly from the beginning.
Mistake #7: Failing to "Show Case" their home.
First impressions are the most important. Experience shows that for every $100 in repairs your home needs, a buyer will deduct between $300-$500 from their offer. Thoroughly clean and prepare your home before putting it on the market - if you want top dollar.
Mistake #8: Failing to take the first offer seriously.
Many sellers believe that the first offer received will be one of many to come, hoping to hold out for a higher price, especially if the offer comes in soon after the home is listed. Often the first offer ends up being the best buyer, and many sellers have had to accept far less money than the initial offer much later in the selling process. Homes are most saleable early in the marketing period.
Mistake #9: Choosing the wrong agent, the wrong company or choosing them for the wrong reasons.
Many homeowners list their home with the agent who tells them the highest price. You need to list your home with the agent and company with the best marketing plan and track record to sell your home.
Mistake #10: Not knowing all of their legal rights and obligations.
Real Estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need to work with knowledgeable professionals who understand the "ins and outs" of your Real Estate transaction.