Buyers & Sellers
1. How much can you afford to spend on your new home purchase?
You should do a thorough review of your financials including your income, expenses, savings, and retirement account savings. Are you saving enough for retirement? Can you afford the new expenses that come along with buying a new home? Do you have a relative or friend that can help you out with a loan?
2. What is important to you when thinking about where you want to live?
Research the neighborhoods you are considering both online and off. Nothing will compare to an actual drive or walk in the neighborhood you are considering. Research the local schools, the home value history, and the crime rates in that area.
3. Find the best home for you.
You've done your research, but now you need to find that home. All homes should go through a professional home inspection before making a final decision. Get a realtor on your side to help with the whole process. A good realtor will guide you in the direction that is best for you. Research your realtors well before choosing one. That decision can be just as important as the home you choose.
4. Negotiate for the best price.
Don't pay too much for the home. Research similar homes in the area, and find out what they have sold for in the past. A realtor can make this process easier. Buy the home at the right price for the market, and your personal needs. This will circle back to assessing your financials.
More tips for Buyers.
1. Price your home correctly.
Homes sell the quickest when they are priced below similar, and comparable homes in the area. Have you had any offers in the first 2 months? If you have not, then you have most likely priced your home too high for the current market. Try lowering your price by 3%-7% to entice some bid activity.
2. Price your home with round numbers to real in more leads online.
With the internet today it is estimated that 4 out of 5 people will search for a home online at some point in time. Usually, when using a site to search for real estate, the buyer has to choose a price range that ends as a "base" round number. What exactly does this mean? Let's say that you want to price your home for sale at $355,000. If you do price it at that amount, in hopes of getting a price near that amount, you will surely be missing out on many possible leads online simply because of the price you chose. The reason for this is that you have missed a "base" price that is used in online search. The "base" price will be round numbers, usually in $25k intervals, and then going up to $50k or $100k intervals when looking for more expensive homes. If we price the home at $350,000 instead of $355,000 then we will real in leads from 2 sets of searches instead of 1. That can be twice as many leads! In this example, we have 1 buyer searching for homes in the $300k-$350k price range, and then we have another buyer that is searching for a home in the $350k-$400k price range. With our $355,000 priced home we would only get 1 of those leads, but when you price it at $350,000 you are giving both buyers a chance to become potential leads to your sale of the house.
3. Make smart home improvement decisions.
If you are thinking about making some home improvements to help sell your home you should consider your options thoroughly before following through with the investment. Try adding value to the home by installing energy efficient windows. Something that can benefit you immediately, and in the long run. Fixing up the outside of the home can do wonders as it is the first thing that people see when they arrive. First impressions can go a long way. Adding a deck in the backyard, or doing some creative landscaping can add great value to your home while not costing you too much.
4. Research your options for a listing agent.
You should be just as careful choosing an agent to list your home as when looking for one to help you buy a home. Ask your family and friends for recommendations, and meet with several real estate agents before choosing one. Ask the realtor to clearly detail everything they will do to help market, and sell your home, and make sure they are clear about any associated costs or additional fees, so you know what you can expect to pay during the process.
More tips for Sellers.