As with any financial transaction, there are choices you should and shouldn’t make when selling your home. The sad reality is that the most common mistakes are arguably the easiest to avoid. Preventing these mishaps is especially important if you are selling or thinking about selling your house independently without a realtor or sales agent. Selling a home alone or even with an agent is an involved process. With so many steps involved, making a mistake now and then might be expected. With more awareness of the most common home selling mistakes, sellers can get the most from their sales.
In this article, 180 Homes will navigate some of the most crucial mistakes to avoid when selling your home. While selling a home can be overwhelming at times, knowing what not to do during the real estate transaction can streamline and simplify the experience for all parties involved.
Mistakes to Avoid When Selling Your House
Selling a house is a time-consuming process. There are numerous steps involved between listing the home on the market and closing escrow with the seller. The home must be listed on the market, promoted, inspected, and toured by prospective buyers. Price negotiations and offer reviewals also take up some time, followed by the drafting of the real estate contract. Within each step of the process, you should exercise mindfulness to get the most value from the sale. Here are the four home selling mistakes you should consider avoiding at all costs
Pricing Too High
Anyone that has watched one of the numerous real estate television shows knows about the damage of pricing a home too high. This home selling mistake is a common tactic real estate agents use to get your home sold quicker and create excitement surrounding a property. Unfortunately, inflated pricing can have a legitimate and lasting negative impact on the final sale. In the world of real estate, first impressions are everything. When a new listing hits the MLS, sellers receive instant feedback from agents and buyers. If your home lists too high, agents will scoff at the listing and not give it a second thought. Redeeming the home’s reputation after an exorbitant initial listing price isn’t easy.
You may think that by listing aggressively and trying to squeeze every dollar from the property, you will improve your return on the investment. The exact opposite is usually the case. The demand and consumer interest will be far less than anticipated, and after a few weeks, you will need to act. Responding could mean lowering your price or spending money on staging to generate interest from those who already moved on. You are almost always better off asking a reasonable price for your property that is in line with the market first things first. By fairly pricing the property at the beginning of the sale, sellers can ensure they have a healthy batch of competitive offers.
There is no such thing as a bad offer. Sure, some will be well below the list price, but you should never ignore those offers. Think about how you acquire a property. You try to get the best possible price on any investment. Sellers think the same way and are always trying to get a steal of a deal. If there is a lowball offer, don’t get offended and take it personally. Dismissing an offer is a common home selling mistake, and can be remedied with open negotiations with potential buyers.
Always counter at a number you are comfortable with, even if it is just under the list price. If their counter is still not as high as desired, then you can move on. Making the mistake of blindly ignoring an offer can result in leaving money on the table. Many buyers make low offers to see where the sellers stand. As a seller, you should view any offer as just the start of negotiations and move on from there.
For any real estate transaction, there should be equal giving and taking. The goal shouldn’t be to dominate every negotiation with potential buyers but to get the property sold. You need to always think about the big picture when selling a home because it’s too easy to get bogged down by the little details along the way. It is very rare for buyers to get everything they desire from the sale, but it doesn’t mean they can’t get reasonably close. Unless you are in the right market and have timed the listing perfectly, you need to be willing to make concessions.
Compromise within this scenario could mean slightly coming down on the price, extending the closing date, or changing something in the property. If you say no to everything, your buyer pool may dry up, forcing you to be left with the property for weeks, possibly months, until another buyer comes along. In light of carrying costs, mortgage payments, taxes, insurance, it can sometimes make more financial sense to accept an offer and close sooner, even if it is lower than preferred.
With some properties, doing quality work and encouraging healthy communication may not be enough. Regardless of whether you are selling a freshly finished rehab or a home you have lived in for multiple decades, buyers need to feel welcomed when they arrive at the property. They should feel an instant appeal as soon as they open the front door, so don’t be afraid of adding some personalities within the home decor to assist in the sale. As much as a blank canvas and limited furniture provide options to the buyer, it may not encourage comfort or make them feel like the property is their home.
You should always at least consider staging the property. Sure, staging comes at a cost, but it should be seen as an investment with pending returns. Spending a few thousand on scheduling a few open houses with proper curb appeal and staging can net you five times your investment for the right property. Staging doesn’t work on every home within all real estate markets but for some homes, it can make all the difference.
Tips for Avoiding Home Selling Mistakes
For first-time home sellers, it’s natural to make a few mistakes when selling your home, especially for homeowners selling their property without the assistance of a realtor. Luckily, by understanding the most common mistakes to avoid when selling your home, the real estate experience can be a much less intimidating time for both buyers and sellers. There are many ways to encourage a quick and efficient sale when listing your home on the market without any prior real estate experience. Here are a few tips for professionally selling a home.
Prevent Making Home Selling Mistakes with 180 Homes
There are countless reasons why homeowners might choose to place their property on the market. Knowing how to simplify the real estate process can make or break the seller’s experience in getting the best price possible for their initial investment. The easiest way to create a streamlined real estate process is by knowing what mistakes to avoid when selling your home, from fair pricing to proper staging.
180 Homes seeks to simplify the real estate process even further with competitive cash as-is offers for your home. Get a fair price and expedite your real estate experience with the helpful professionalism found at 180 Homes. Maximize your investments with a real estate company you can trust. Contact 180 Homes today to get started!
No one likes it when a good deal dies. Especially when selling your home, it can be disappointing. Whether the property won’t sell due to financial complications or miscommunications, learning that a great offer has fallen through is always a setback in real estate. Unfortunately, home inspections are a well-known deal-killer within real estate. They’re also one of the more preventable obstacles. Sellers often get stressed about a person entering their home with the sole intention of identifying problem areas. If you’ve lived in your home for a long time, it might even feel like a personal attack. Luckily, with enough planning and preparation, a successful and clean home inspection can expedite your home selling experience rather than cause an unnecessary roadblock.
In this article, 180 Homes will explore some home inspection tips for sellers looking to make their inspection go as painlessly as possible. We’ll discuss what buyers tend to look for during inspections, how to pass a home inspection, as well as how 180 Homes can help you sell your home seamlessly!
What Are Buyers Looking For During Home
Preparing for a home inspection is much easier if you know what the inspector will be looking for during the appointment. Countless factors go into a home inspection. The inspector is expected to provide the buyer with a comprehensive and detailed summary of the home’s condition from top-to-bottom. Sellers that have pushed off maintenance tasks throughout the years might struggle with the inspection more than those who have consistently kept their homes in good condition. So what do buyers look for during a home inspection? Home inspections will explore both external and internal characteristics of the property.
External Inspection Factors
Regardless of what level of preparation is placed on the inside of the home, the exterior will be what provides the first impression for buyers and home inspection personnel. The curb appeal plays a huge role in how they proceed throughout the inner inspection. Here are just a few of the external factors that will affect the home inspection:
Internal Inspection Factors
Once a prospective buyer or home inspector enters the house, the little details get involved. No room will be left untouched, so do not attempt to skirt around smaller responsibilities. Some of the internal home features that will play a role in the inspection include but are not limited to:
Home Inspection Tips for Seller Success
Now that we understand what buyers and home inspectors will be looking out for during the inspection, it’s time to explore how to properly prepare for the inspection itself. While the inspection might seem daunting, it doesn’t have to be. If you make sure the home is in the proper condition you should only look forward to the inspection’s completion. Transparency is crucial for any successful real estate transaction, and that begins with the inspection.
Home Inspection Tip #1: Begin By Completing
First things first, put yourself in the buyer’s shoes. Would you want to purchase a home only to learn a few weeks or months down the line that there are major maintenance issues or aged appliances? Likely not. That’s why sellers should begin by completing their own version of a home inspection by inspecting the different features buyers generally check. Start outside, work your way in, and don’t leave any cranny untouched as you take note of property updates or repairs that need to be completed before the new owners move in. By eliminating these issues early, the pending inspection will be much less worrisome.
Home Inspection Tip #2: Make Sure Utilities Are On
This may seem like an obvious tip, but is especially relevant for those vacant rental properties where utility service may have been discontinued. The home inspector will be checking to see that electrical and gas components of the home are in good working condition. If utilities are NOT turned on, the home inspector won’t be able to complete these steps and likely deem the inspection itself as “incomplete”.
Home Inspection Tip #3: Provide Access to
Any Important Documents
After resolving any issues beforehand, it’s time to secure all important documentation relating to the home. Buyers and home inspection professionals will often ask the sellers to provide paperwork relating to remodeling projects, major repairs, upgrades to HVAC systems or property, etc. The more information you can provide the inspector the better, as this will lead to a more thorough report and additional peace of mind for prospective buyers.
Home Inspection Tip #4: Don't Neglect Curb Appeal
As we briefly touched on, curb appeal is not something a seller should ever neglect when they have a home inspection on the horizon. When buyers pull up to the property they should feel that they’re looking at their future home. That can become much more difficult if there is an unkempt yard, overgrown ferns, clutter bursting out of a garage, or obvious damage to the home’s exterior. Make sure that as you approach the home people feel welcomed rather than weary.
Home Inspection Tip #5: Declutter and
This might go without saying but home inspectors don’t love a dirty home. Not only does mess and clutter complicate the inspection, but it can also prevent the inspector from doing their job if it prevents access to certain fixtures (i.e. a sink full of dishes prevents them from checking the sing drainage.) Make sure that the home is cleaned thoroughly and that the home inspector can move comfortably throughout all rooms of the home.
Home Inspection Tip #6: Properly Prepare the
Home for an Inspection
Outside of cleaning, there are quite a few preparations that need to be completed to make sure the home inspection goes well. Small children and pets might seem like a cute way to welcome the inspector, but should generally be taken out of the house to avoid any preventable complications occurring. You should also make sure that you have keys to any areas that are locked, such as a boiler room or electrical panel. This is also the case for any detached areas such as the garage, shed, etc. The inspector will need access to these to complete their checklist. Lastly, if you believe the inspector might find accessing these areas challenging for any reason, make sure to leave some instructions for their review.
Home Inspection Tip #7: Provide the Inspector
with Enough Time for the Appointment
If there’s one way to derail a home inspection quickly it’s rushing the home inspection in hopes that the inspector will miss certain items. Not only is this an unprofessional way to handle any real estate transaction, but it’s also a steadfast way to give the buyer a poor idea of the condition. By providing the inspector with an adequate amount of time to complete his checklist, you’re communicating that you have nothing to conceal and want to resolve any issues that might be noted rather than avoid them.
Home Inspection Tip #8: Remove Yourself from
the Inspection Space
It’s fairly common for the buyer to accompany the home inspector during the appointment to ask questions about the property. That can become more challenging with the seller lingering within the home. It’s highly suggested to plan your schedule around the inspection to guarantee you and your family members are outside of the house when they arrive. Whether that means running a few errands or planning a convenient trip, all pets and people should leave during the inspection for at least 2-4 hours
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Not interested in going through a home inspection with your home? We have good news for you! Here at 180 Homes, performing a home inspection is NOT a contingency of our offer! Since we’re paying cash, we don’t need a third party home inspection to obtain financing like a normal financed buyer would. This means less stress, less prep, and an easier transaction for you! Skip the home inspection and go straight to reviewing an offer! Learn more about 180 Homes’ simple as-is cash offers. Contact 180 Homes today to learn more!
For homeowners looking to sell their property in a quick and streamlined manner, iBuyers have become an increasingly popular option. An iBuyer, also often called an “instant buyer”, is a relatively new trend in the real estate market and is designed to allow homeowners to sell their homes quickly, assuming many of the responsibilities that typically fall on the seller’s shoulders. But what is an iBuyer? If they are a relatively new concept, with limited iBuyer reviews, are they actually a good option for homeowners looking to make a profit off their homes?
In this helpful guide, 180 Homes will explore what an iBuyer is, how selling a home through an iBuyer works, as well as some of the iBuyer pros and cons so that sellers can know what to expect from this innovative real estate solution.
What is an iBuyer?
Let’s begin by first covering what an iBuyer is and where it came from. iBuyers are tech-driven real estate companies that operate on an automated valuation model (AVM). The model is designed to determine a property’s value and place an offer on the property within a matter of days. The automation of this real estate process offers buyers and sellers a computerized appraisal that looks into numerous factors to calculate a home’s value, such as the worth of nearby homes and the home’s specific features.
This appraisal is determined by using an AVM, which are increasingly popular among real estate companies and mortgage lenders. Similar to real estate investors that make a living from flipping properties, iBuyers intend to implement AVMs to buy properties and resell them for a profit as quickly as possible. An iBuyer may or may not have these intentions (or choose to disclose them to you), but will generally look for properties that are in good condition that way the repair / reselling process is less intensive.
iBuyer Pros and Cons: What to Expect
Now that we know what an iBuyer is, it’s time to explore some of the advantages and disadvantages of working with one as a seller. When selling your home, you want to maximize profits as much as possible, and depending on your situation, an iBuyer could be either a great option or an ill-advised maneuver. Let’s go over some of the pros and cons so that you can make the best decision based on your real estate needs.
Pro: Organized & Efficient
When using an iBuyer, the process of selling your home becomes much more efficient because the iBuyer is choosing to forego numerous steps of the traditional real estate process. In fact, some of the selling responsibilities even transfer to an iBuyer in certain situations, such as required inspections, staging, etc. to make it easier for them to sell the home down the line. Additionally, sellers don’t need to work with a realtor, which can be great for those that want to avoid the time-consuming hassle of finding the right candidate to sell your home. Rather than spending an obscene amount of time preparing your home for sale, an iBuyer will take care of and/or ignore theed for many of those things.
Pro: Cash Offers
A cash offer on a property can bring forth a welcomed windfall, which can be incredibly useful for sellers hoping to purchase a different property later on. Many iBuyers will generate all-cash offers, which is also very helpful for those that are under a time crunch that need to sell their home and purchase a new one soon. Since the offers are cash, they likely are not contingent on getting an appraisal or final loan approval which are common hiccups that come about with traditionally financed offers. This monetary flexibility, added to the certainty that the home will sell through an iBuyer, is a promising option for many sellers.
If you’re looking for a quick real estate process that eliminates a significant portion of back-and-forth between the buyer and seller, an iBuyer may be a perfect choice. iBuyers eliminates the need for homeowners to find the “perfect buyer”, which is par for the course when using a realtor. Rather than taking months or even years to find a prospective buyer, some iBuyer can close within 24 hours of placing an offer on the property. At the end of the day, the pace will always be set by the homeowner, but an iBuyer is a surefire way to guarantee the process is fast and convenient.
Con: Availability & Qualification
One of the biggest hurdles to jump through when working with an iBuyer is ensuring your property is the type of home they are looking to purchase. Sadly for iBuyers, not all homes are created equal, and it’s possible for some properties to not even be in the geographic location where iBuyers are operating. If your home will require time-consuming repairs, or on the other end of the spectrum, is very high-end and customized, the property likely won’t be considered. iBuyers are found in specific areas, so make sure that if you’re interested in working with one, it’s a viable option in your local neighborhood.
Con: High Transaction Fee's
A financial factor to consider is that when selling through an iBuyer, transaction fees should be anticipated. These transaction fees, which can get quite high depending on the company, could even become higher than the typical fees found in a traditional real estate sale, such as closing costs, commissions, etc. Each ibuyer sets their own fee schedule and may vary depending on which one you may be considering. Selling through an iBuyer is designed to streamline the experience, but make sure that the price of convenience doesn’t totally tank your potential profits.
Con: Potential for Lowers Sales Price
While this isn’t always the case, it’s not uncommon for homes to be sold to iBuyers for less compared to the potential market value. The price of convenience can occasionally take a toll on these sales, as an iBuyer will usually extend lower offers on homes compared to the value on the real estate market. This is mainly because iBuyer companies like Opendoor or Offerpad operate on a revenue model that will generate profits once they resell the home. By offering a lower buying price, they can hopefully flip that and turn a profit. So make sure to do the proper research on your home’s value before diving in and accepting an iBuyer’s offer.
Is Working with an iBuyer Worth It?
iBuying companies are still fairly new within the real estate market, which is why it can be challenging to find iBuyer reviews that can help sellers determine whether or not an iBuyer is a good idea. Every seller’s circumstances are unique, but if you’re looking for a streamlined, simple, quick, and convenient real estate experience that veers from traditional routes with a realtor, an iBuyer is a great choice. In a market of vast options for selling a home, an iBuyer is a welcomed tool for convenience, so every seller should at least consider them as an option.
Contact 180 Homes to Sell Your Home Fast
If you’re looking to sell your home fast, and love the cash offers that iBuyers can provide, 180 Homes is the perfect resource for you! If you wish to expedite your home-selling experience, you should learn more about 180 Homes’ simple as-if cash offers. Contact 180 Homes today to learn more!
When navigating the real estate market as a seller, it’s always a good idea to know what could raise the value of your property. There are numerous ways property owners will increase their home’s worth, with one of the more common and popular choices being adding an Accessory Dwelling Unit (ADU) to the home. An ADU is a secondary housing unit built on the property, designed to accompany the primary home. ADUs go by many other common names, such as in-law units, tiny houses, or granny flats. As a seller looking to elevate the value of your home, it doesn’t hurt to explore ADU options for your property.
As an increasingly popular way of making the most out of your property sale, the additional housing could prove to be just the thing your property needs to generate interest. But that doesn’t mean you should move forward with an ADU without the proper research first. Read on to learn whether or not an ADU adds value to your home and how much value an ADU adds to determine whether or not an ADU is a good investment for you.
Does an ADU add value to your home?
An ADU can definitely add value to your home, but that isn’t to say you shouldn’t properly plan and ensure the project is a worthwhile investment. When completing any significant renovation, it’s important to consider whether or not you’ll break even when selling the property. No one wants to dump a significant portion of their savings into a home renovation project only to have it hurt their sale or not pencil out financially in the long run. But the option for secondary housing is a very desirable feature of any home, and with the versatility of different ADUs, they are a viable option for those looking to get creative when upping their home’s value.
How much value does an ADU add?
Now that we’ve covered how ADUs can increase the value of your home, let’s talk about actual figures. How much value does an ADU add exactly? While this will vary widely based on the primary home’s location, type, and the amount of work needed to complete the ADU itself, it goes without saying that an ADU can increase the final asking price for sellers. Some of the value added, however is non-numerical (i.e. adding value to your lives, to your financial stability, and ability to offer inter-generational housing).
But in terms of numbers, a study found that In the largest cities, a home with an ADU is priced 35% higher than a home without one. Some homeowners will add an ADU to rent out to interested renters, which can certainly drive personal revenue outside of a selling situation. Another study found that houses with ADUs improved their resale value by more than 50%, which is something to consider for those that know they may want to sell down the line.
Types of ADUs
Now that we’ve covered what an ADU is, and how an ADU can add value to your home, let’s explore some of the different types of ADUs. Remember, not all ADUs are created equal, and will always vary based on the property’s location and type. While some homeowners may get creative with their ADUs, they will typically fall into one of three categories: attached, detached, and interior. Let’s look into each ADU type in more detail.
Cost of ADUs
One of the main factors to consider when planning an ADU is the cost, which impacts your bottom line and the selling price. Because ADUs will always vary based on the home type, the cost will also vary, so make sure to coordinate with a qualified contractor to plan out the design and potential turnaround. Additionally, the designing and permitting process could increase the soft costs of an ADU, so make sure to request updated information surrounding zoning regulations and permitting for your local area. Some contractors will offer all-inclusive pricing, which can help homeowners prevent any surprise costs down the line.
So is an ADU a good investment?
Short answer: Yes! An ADU is a great investment for homeowners willing to put in the time, money, and research to plan the right ADU for their home needs. Whether you’re looking to create the perfect space for rental accommodations or simply want to increase the resale value of your home, an ADU is a clever and creative way to do so.
Contact 180 Homes to Sell Your Home Fast!!
ADUs are a fantastic way to increase your home’s resale value, especially for those willing to put in the work on a home renovation project. However, if the long permitting and building process inherent in building ADU’s is too much of a commitment, 180 Homes can offer simple as-if cash offers for your property! Contact 180 Homes today to learn more!