There’s a lot of room for mistakes to be made in real estate transactions by both buyers and sellers. In fact, buyers and sellers often make the same mistakes or at least similar mistakes but coming at them from different ends. And these mistakes can often be enormously costly. But with foreknowledge, you can be safeguarded from making such mistakes. To that end, we offer these 6 mistakes buyers and sellers make during real estate transactions in Virginia, Maryland, and D.C..
1. Waiting Too Late to Do the Prep Work
Before any successful real estate transactions in Virginia, Maryland, and D.C. can take place, properties have to be prepared for sale. Almost every home needs some work, things such as cleaning/de-cluttering, painting, plumbing, and electrical repairs, roof repairs, kitchen, and bathroom upgrades, curb appeal enhancement, and so on. The point is that it almost always takes a good amount of time.
One of the common mistakes in real estate transactions in Virginia, Maryland, and D.C. involves waiting too long to do this necessary work. This is an acute problem when you are both a seller and a buyer – when you are selling one home and buying another to move into.
Here’s what can happen according to one top agent . . .
My client “was trying to buy and sell simultaneously. [I] advised him repeatedly to start prepping the home, but he kept pushing it off and pushing it off, despite actively looking for a new home and submitting offers. Once the client went under contract to buy a home, suddenly he found [himself] rushing to list his existing home. When they finally finished prepping, it was already October – precisely when the market was slowing down and it became tougher to find a buyer.”
2. Having Too Little Financial Cushion
Often, both buyers and sellers proceed with too little financial cushion, and that winds up being a mistake in real estate transactions in Virginia, Maryland, and D.C.. Without enough reserve money, they wind up in a financial tight spot when they either sell for less than expected or have to pay more than anticipated.
Her’es what the pros advise to avoid this situation: “Give yourself a cushion on what you need to sell your existing home for . . . If you’re hoping to use the entire sale price as a down payment on another home, move forward with the assumption your home will sell for less than expected.”
3. Being Unwilling to Compromise
Another mistake buyers and sellers make during real estate transactions in Virginia, Maryland, and D.C. is simply being unwilling to compromise. Being too intransigent or too unwilling to give a little can ultimately kill the deal.
More often than not, this is a mistake sellers make after the inspection reveals problems. Sellers often hold out for the asking price without being willing to make needed repairs. “A little compromise,” experts say, “goes a long way, especially when there are two escrows (or more) on the line.”
4. Closing on Friday or Late in the Day
A common mistake combination buyers-sellers (those who need to sell a home and buy another) in real estate transactions in Virginia, Maryland, and D.C. is closing at the wrong time. Ideally, you don’t want to close on Friday or late in the day.
If you need to sell and buy within a few days, say, two or three, closing on Friday doesn’t allow the buffer time you’ll need. “That’s because bank transfers can take a few days to go through. In order to ensure there’s money in your account when the time comes, buffer a few days to transfer funds.”
Closing late in the afternoon isn’t a good idea and for similar reasons. Banks typically stop doing wire transfers by about 3:00 pm, which means the money won’t arrive in your account on the day of closing if you close late in the day. So try to schedule your closing in the morning.
This is an area where your local agent can advise you on the best way to proceed. To find out more, call 703-782-4422.
5. Being Unrealistic About Price
A very common and widespread mistake buyers and sellers make during real estate transactions in Virginia, Maryland, and D.C. involve unrealistic expectations concerning price. Sellers typically think they can sell for more than is realistic, and buyers expect to pay less than is realistic.
But the reality is that real estate pricing is based almost solely on market value – not what you want for your house or what you’d like to pay for a house. Fair market value is determined primarily by means of a tool called a comparative market analysis, which examines prices of recently sold houses with similar features in the immediate area.
6. Not Listening to Their Agent
And sometimes buyers and sellers don’t or won’t listen to the expert advice and guidance of their agent. This mistake buyers and sellers make during real estate transactions in Virginia, Maryland, and D.C. has the potential to be the most devastating. If you have a trained, skilled, experienced real estate agent, you’d do well to heed what she tells you to avoid costly mistakes. Find out today how our agents can help you avoid mistakes. Call us at 703-782-4422 or send us a message!