Top 5 Tips for Buying and Selling Houses in 2016 by Dan Polimino
Check in next week for five more tips about buying and selling.
1. Buyers: Don’t overspend.
I know it sounds simple, but everyone can get caught up in the emotion of a bidding war. You have been waiting for that perfect house, you have lost out on three others, and one just hit the MLS and your inbox. You decided to outbid the other six suitors and pay 30K over asking price. That’s okay if you plan to die in that house or stay there for at least 10 years, but if you are planning on having a re-sale in the next five years, you may have paid too much. Know your short term game -plan on how long you plan on living in that house, know your budget and be patient. Another home at the right price will come along.
2. Sellers: Don’t be overconfident about your price.
Yes, I know you want to get a premium price for your home in a seller’s market, but don’t get greedy. A five or ten percent over the true value is pushing the envelope on pricing, more than that and you are asking for your home to sit on the market with no bidders. Remember, we are headed to a shifted market and at the very least, a balanced market. Balanced markets only last a short time and then the pendulum swings with the leverage on the buyer’s side.
3. Buyers: Be Ready!
That means to be flexible and be ready to act on the house when it hits the MLS. The market and the sellers are not going to wait for you to sell your current home, they won’t wait for you to get your pre-approval letter, and they won’t wait for you to decide whether or not you want to pull the trigger. Have your agent talk with the listing agent to find out what is most important to the seller if it’s the price or the terms. Sometimes, you can win a house just by giving the seller better terms than the next guy. If you are ready to go and you get under contract, make sure that you have your inspector already lined up.
4. Sellers: Make sure that the house shows great and you have fixed most of the issues.
There is nothing like going into a contract with the complete confidence that the inspection is going to go smoothly. If you had a pre-inspection, reviewed the issues and had them corrected or even do a few preventive items, like cleaning the sewer line. You can sleep well that the deal will be a lot easier to close than most. Moreover, you can ask for that premium price with the confidence that your home is worth it and you will not be conceding any money back to the buyer over inspections.
5. Buyers: Watch out for new construction!
Builder contracts are heavily for the builder and usually, give the buyer little to no out clauses. Be very careful when entering into a builder contract. Make sure that your attorney or at the very least your real estate agent looks over it, and you know exactly what’s in it and what you have gotten yourself into. Also, builders are trying to put up inventory as fast as possible. As such, builders are cutting corners with poor craftsmanship and sub-par materials. Seriously consider hiring an independent inspector to oversee the building of your home. The builder will tell you that it is not necessary because they’ve got it covered…don’t believe them.
Join us next week for the rest of Dan’s Top 10 Tips to Buying and Selling in 2016.
Dan Polimino is a Broker/Owner with The Hawaii Team, Keller Williams Realty Maui.
