Five mistakes to avoid to sell well
During real estate transactions, owners can encounter challenges that can make the process complicated, even for the most experienced of them. It is therefore important to take into consideration the factors that may not have been present in the first transaction, but which will be crucial for the next one.
In addition to the question of financing, it is essential to sell your current property at the right time in order to avoid the financial burdens associated with owning two properties or even worse, having no housing temporarily.
This article highlights five of the common mistakes homeowners make when buying a new property. Knowing these mistakes and strategies to avoid them can help you make informed decisions before putting your current property on the market.
Biased view
Many homeowners aspiring to improve their lifestyle and move to a larger or more luxurious property can often fall into the trap of unsuccessfully searching for ideal properties. There is, however, a simpler alternative, such as exploring the options offered by a real estate broker, such as a personalized buying system or a property-alert service. These kinds of programs can allow owners to free themselves from their biased vision and find their dream property by matching their personal criteria with ALL the properties available on the market, while remaining affordable.
Neglect of necessary improvements
To get the best price for your property, it is important to carry out improvement works to increase its attractiveness to potential buyers. These aren’t necessarily expensive upgrades, but a minor investment can result in huge payoffs when selling. It is crucial to make these improvements before putting your property on the market. If you do not have the necessary funds, you can consider obtaining a loan which will be paid off after the sale.
Calculate its real purchasing power
You should plan to sell before you buy. This way, you won’t be in a weak position at the negotiation table, feeling forced to accept an offer below market value because you have to meet buying deadlines. If you have already sold your property, you can buy your new home with peace of mind. If you receive an interesting offer, but you haven’t started looking seriously, you can put a conditional clause in the promise to purchase giving you a deadline to find a new property. If the market is weak and you find that you are not selling as quickly as you would have thought, you can rent out your home and put it back on the market later, especially if your property is rather small and is ideal for a first Buyer. In this case, however, do not forget to see the tax implications of such a decision.
Do without a mortgage pre-authorization
Many owners are unaware of the considerable advantage that a mortgage pre-approval represents. This costs you nothing, nor does it commit you to anything. However, it gives you an important advantage allowing you to find yourself in a price range for your research, but above all confirms to the seller that you do indeed have the funds necessary to buy the property. With such an asset in hand, the owner-seller will much more favorably perceive your offer, and this, sometimes even if your offer is a little lower than that of an unqualified buyer. Do not deprive yourself of such an advantage.
The lack of coordination between the two transactions
With two major transactions to coordinate with all the people involved (mortgage brokers, notaries, building inspectors, real estate brokers), the likelihood of miscommunication and oversights increases substantially. To avoid this logistical nightmare, work closely with your real estate broker, who will be there throughout the transaction. Contact us to make the transition between your two homes as smooth as possible!
