1. Getting the value of the property WRONG
If you're a new or inexperienced buyer or a buyer who is not familiar with the area, you could make the mistake of inaccurately assessing the property's value which could result in overpayment. Some prices are too high, others are too low, and the only way to really know fair market value is to find out what has sold in the area. Housesigma is an app that can offer information about a property's past, such as reductions in sale price, terminations, and more.
2. Lacking the appropriate marketing resources
Access to Realtor.ca's network can be beneficial when buying or selling a home. While selling a home privately is an option, it can be challenging to gain exposure without being listed on a major network.
3. Not knowing how to negotiate effectively
Negotiation plays a significant role in the process of buying and selling a house. As a buyer, it is important to aim for a fair price, while as a seller, the goal is to secure the highest possible value. Apart from negotiating the price, there are other elements that require negotiation, such as inspection terms, financing conditions, and other relevant clauses specific to the transaction. Lack of negotiation skills in these areas can put you at a significant disadvantage if you are bound by a contract and also expose you to significant financial risks.
To enhance your negotiation skills, you have the option to seek assistance from a reliable realtor or alternatively educate yourself on the process of real estate closing.
4. Not being prepared for the time commitment
If you are a seller, particularly in a market that is currently experiencing a decline, it is crucial to allocate sufficient time to effectively sell your property. Similarly, as a buyer, it is also important to have adequate time as you will have access to numerous listings and properties for sale, which will require you to conduct thorough research and ensure that you make the correct decision.
If you prefer to save time, you have the option of seeking assistance from a reliable and respected real estate agent. They can assist in showcasing your house to potential buyers and, if you are buying a property, they can dedicate the time to finding the right property type that aligns with your preferences.
5. Not staging your home.
One can argue that in a "hot" market, staging your home may not be necessary. This was evident during the pandemic when buyers were competing for properties without physically visiting them, and also in 2017 when the market was at its peak and almost any property would sell for a high price.
However, in a declining market, it is probable that your house will need to be in excellent condition and have an attractive appearance to attract potential buyers. This often necessitates property staging. While staging can be costly, there are instances where realtors may include staging services at no additional cost and include it in their commissions. This means that you won't have to pay upfront but can still receive good value, as you are likely to achieve a higher sale price.
6. Not knowing how to rule out unqualified buyers
One way to ensure a successful sale is to know for sure that your buyer is qualified. Often, a buyer will have a pre-approval certificate that provides confidence they can qualify for a mortgage loan to purchase the property. It can be difficult to know how to qualify a buyer and what to look for, but working with a real estate agent can help you since they know what to look for.
On the other hand, you have the option to personally determine the eligibility of buyers by obtaining a pre-approval certificate from a prominent financial institution, and implementing specific terms or conditions to safeguard your sale.
Have a mortgage question? Please feel free to call us.
By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929