Here are three huge mistakes that you should avoid as a seller.
Real estate doesn’t have to be difficult, but it does have to be done in a certain order. Today I want to talk about the three biggest mistakes that cost sellers money, and when I say money, I mean a lot of money:
1. Not factoring in the sale of your home when you look at houses. When people look at houses, they can forget to include the sale of their previous home in what they can afford for their new house. If you’re selling an $800,000 house with a $200,000 mortgage, you’re walking away with substantial equity, but you need to understand the tax situation, the upgrades you can do, and how you can apply the profit to get a great mortgage for the new house.
Most of the time, you don’t buy a house; you buy a payment. You need to do the math and know how much you’ll pay per month before you start looking.
2. Having your priorities out of order. Most people are familiar with the concept of for-now, for-when, and forever houses. You need to decide the purpose of the home, set a price range, and stick to both of those. Don’t skip around in the order, and don’t look outside of your price range because it will destroy your expectations. The last thing you want is to make a bad financial decision and end up house rich but life poor.
3. Not calling us at the start. Clients who we’ve worked with for 20 years have just started doing repairs to sell their homes without letting us know. Just call us. You don’t want to do upgrades that a buyer won’t care about, in a style that a buyer won’t like, or that cover up other work that needs to be done. There is an order to these things that will make the process much easier and give you confidence in the timeline.
Your strategy matters more than ever. If you have questions or want to go over your strategy, give us a call. We’d love to hear from you.