We make a lot of resolutions in the beginning of the year. Some are just the same ones you didn’t keep last year. Sometimes it’s easy just to keep the list and change the date at the top. Like I do.
But when it comes to real estate, it’s a resolution you won’t do annually, so you’ll need to give it more consideration. So don’t resolve to buy your neighbor’s house for half of its value, or sell your $350,000 home for $500,000. Well, you could, but you’d probably be setting yourself up for disappointment right from the start.
Some things are out of a would-be buyer or seller’s control. But, as a would-be buyer or seller, you can learn from and make resolutions based on those who have been there and done that. There exists a former buyer who, if he could, would resolve to have done more legwork before buying. Conversely, there’s a current seller who resolves to take the next under-asking-price offer from a buyer more seriously. We will second-guess ourselves more harshly when dealing with our real estate goals. There is a lot at stake!
Whether you plan to buy or sell, there are some real estate resolutions that buyers and sellers can — and should — make. Here are some to get you started.
Buyers: Resolve to Get Your Financial House in Order
Planning a home purchase takes time and effort, so you should consider meeting with a mortgage professional early in the year. Know your credit score and understand what your financial situation looks like from a lender’s perspective. If you have credit issues, identify what they are and the necessary steps to correct them. Sometimes, it can take six months to see your FICO score move up the much-needed 20 points to get you a better mortgage rate. A good real estate agent can recommend an experienced, local mortgage professional. Local is always important, because many real estate deals are made on relationships, and being able to meet face-to-face with your mortgage professional can be a big plus.
Sellers: Resolve to Think of Your Home as a Product
I can’t stress this enough! Start clearing out old stuff now. If there are things deep in your closets that you don’t think you’ll use between January and the time you move, consider a storage locker or making space in the garage. Does your real estate agent suggest that the maroon bedroom needs a lighter color paint job? Get some painting bids now. Have you always hated how the bathroom vanity takes up so much space? Consider changing it now so buyers will perceive your bathroom as bigger. This will also help you spread out the costs of home repairs and changes over several months.
Buyers: Resolve to Start Feeling Out the Market Early
You may think you only need to go to open houses once you’re ready to buy. But in reality, a buyer needs a couple of months learning the marketing, understanding home values, the prices per neighborhood and the market in general. I love the HGTV show where couples are shown three homes for sale and have to pick one. Yeah, right. I very often hear from prospective buyers that they are “just looking” and buying is many months away. They don’t want me to “waste my time”. Wrong. I love working with people just starting out. My philosophy is that you can’t decide where you want to live until you decide where you DON’T. You can’t think of the type of home you want until you see ones you DON’T.
Once you engage an agent, you may make several offers before you get into your dream home. Having your agent along for the ride will allow you to compare and contrast homes you’ve visited to the home you eventually buy. The homes you see and your experience feeling out the market will serve as the building blocks toward becoming an informed buyer and making your best offer.
Sellers: Resolve to Understand Your Timing and Exit Strategy
One of the biggest stresses on a seller is trying to plan a purchase and a sale at the same time. Can you afford to close on the new home before selling? If so, for how long? Do you need to sell the property first? If so, will the potential sale price support a home purchase in the neighborhood you want to be in? If not, what other areas should you be looking in? Selling and buying at the same time brings up all kinds of financial, emotional and physical stress.
Uprooting yourself from your home is not easy. What if you have to go into short-term housing? How will you get that set up and how long would you need to commit for? If you can afford to purchase and then sell, do they need to happen quickly? Are there things you can be doing in your current home so that once your new home closes, you’ll be ready to list? It’s a lot to think about and plan for, and it helps to have a strategy in place well before you have to take action.
Buyers and Sellers: Resolve to Engage a Real Estate Agent Now
Planning a home purchase or sale takes time. Engaging a real estate agent early in the process will allow you to have an expert on hand as you start to put the pieces together. A good real estate agent doesn’t just show and sell homes: They can be your strategic adviser, even well in advance of any actual transaction.
On the seller side, if you pulled a permit to install some new windows or replace some dry rot in 2005, likely the contractor issued a permit. But did he close it out? A good agent will figure that out and clean it up before it becomes a transaction issue. You should use your agent to literally get your house and listing in order.
For buyers, having an agent with you from the start is like having an experienced second set of eyes and ears. Having so many transactions under the belt and years of market knowledge in their head, a real estate agent’s opinions, thoughts and ideas can save you a lot of time and money. What’s more, they can keep you on the right path toward identifying the best home, and they’ll see you through the process all the way to the closing.
I am a licensed Real Estate agent. I have over 20 years’ experience in Real Estate and also years of experience in banking, finance and credit. I’m a marketing genius (IMHO). I will include photos, flyers, and a virtual tour of your home. I am also a Certified Home Staging Professional. Let me give you pointers on how your home will show in the best possible light.
You can find me through my website at http://www.NormaSellsNJHomes.com