Avoid Mistakes That Could Cost You Thousands - Part 1

Selling your home can be an exhausting experience. Last minute walk throughs, inconvenient calls, price adjustments and the possibility of being stuck with two mortgages are real concerns. If you are not completely prepared you could end up losing hundreds, even thousands, of dollars in profit.

The difference between a profitable smooth transaction and a break even, miserable experience is often a fine line. In the majority of cases it comes down to the subtle know how of your professional. By utilizing the knowledge of well trained real estate professionals, you'll ensure the quick, profitable sale of your home. This report is designed to arm you with the knowledge to avoid 11 common mistakes that cost sellers serious money.

1. Refusing to Make Profit Inducing Repairs.

It always costs you more money to sell "as is" than to make repairs that will increase the value of your home. Even minor improvements will often yield as much as three to five times the repair costs at the time of sale. Your agent will be able to point out what repairs will significantly increase the value of your home. Seemingly small fix up jobs can have quite an impact.

2. Not Considering Other Financing Terms.

Cash is not always the most advantageous transaction. Income level, tax benefits and current legislation are all critical factors when considering purchase terms. Professional real estate agents are experts at home transactions and can lead you down the path that will give you the highest yield.

3. Not Provide Easy Access For Showing

Accessibility is a major key to profitability. Appointment-only showings are the most restrictive, while lock box is the least. However there are certain considerations to take into account: your lifestyle, time frame for the desired sale and the relationship with the person representing your interests. The more accessible your home is, the better the odds of finding a person willing to pay your asking price. You never know if the one that couldn't get a viewing was the one that got away. By developing a trusting relationship with an investor, he or she will show the home with your best interests in mind.

4. Priced Too Low/Priced too High.

One critical reason to find an experienced real estate investment professional is to make sure the property is priced appropriately for a timely and profitable sale. If the property is priced too high it will sit and develop the identity of a problem property. If its priced too low it could cost you considerable profits. The real estate market has subtle nuances and market changes that should be re-evaluated by your representative every 10-14 days to help maximize your return.

5. Relying Solely on Traditional Methods To Sell Your Home.

The real estate professional who is innovative and willing to offer new strategies of attracting home buyers will always outperform those who rely on traditional methods. demand around the clock advertising exposure, innovative lead generation methods and lead accountability. These services exist and should be offered on you home sale.

Secret #9 - (Actually more of a myth)

People tell me all the time that they can't qualify for a mortgage because they haven't been on their job for two years. I usually respond "what makes you think you have to be on your job for two years?". The usual answer is something like " that's what i heard' or "that's what the last mortgage broker told me". Well guess what. Its not true. Let me explain.

Underwriting guidelines say we must verify a two year job history. They do not say a person must be on the (same) job for two years. Lenders are more interested in income stability over job stability. If someone has only been on their current job for a year, and they are making more money now than from their previous job of three years, this is perfectly acceptable and is actually more favorable than being on the same job for two years and making the same money. Does that make sense? It should, cause that's what it (Fannie Mae guideline) says!!

Why is this important? Many people are either talked into waiting to purchase (or refi), or they are talked into a sub prime loan with a much higher interest rate and a prepayment penalty. Either scenario could cost someone dearly.

Is it Time To Buy?

Is it time to buy yet? You Betcha! Everything is on sale, and that's when i like to shop. Rates are still low, but have been steadily rising. I know a lot of people have been waiting for rates to come down further, but as i stated in an earlier post, i don't think they will. The economy is showing signs of recovery, and there are still plenty of affordable homes as well as loan programs out there. So if you are planning on buying a home, now is a great time.