What You Dont Know About Real Estate Could Cost You
Written By: PJ Wade
Monday, January 21, 2019
Itrsquo;s what you donrsquo;t know about real estate that could cost younbsp;when buying or selling.
bull; First-time buyers usually havenrsquo;t seen enough houses or condominium units to fully understand where real estate value lies.
They may not have been caretaker of a house and, therefore, donrsquo;t notice subtle signs of damage, sloppy construction, poor maintenance, or worn-out elements. Those who have visited friendsrsquo; houses will ra>
bull; First-time-in-a-longtime buyers may not realize that they are out of touch with advances in materials, modern design approaches, or evolving life>
This can lead them to under- or over-value new houses or condominium units.nbsp;For example, quartz kitchen countersnbsp;have gained popularity over marble and granite for several reasons. Open-concept design is preferred by those with small children or those who live to entertain, but not by those who are untidy, >
bull; First-time sellers who base resale value on their total costnbsp;of acquiring and maintaining real estate ownership, plus expectednbsp;profit, have missed the point.
Emotions, including pride of ownership, can get in the way and prove expensive. Sellers may believe that their cost of buying and transforming the property into their home, plus money spent on maintenance and upgrades, plus profit and the cost of selling, including commission, add up to their actual ldquo;bottom linerdquo; for resale value. Problems arise for sellers when this must-have sale price is not in line with market value, which is value determined by the real estate market - current buyers and previous sales. When the seller expects more than market value, this ldquo;over-priced listingrdquo; may take longer to sell, may eventually sell for less, or may fail to find a buyer. First-time sellers may lack experience evaluating how their property compares with local property values and appraising their property from the perspective of current active buyers.
Value determination and marketing - or communicating action-enticing value to potential buyers - represent two different professional real estate selling-skill sets, neither of which are usually possessed by sellers.
bull; Empty-nester and downsizing sellers may decide, in theory, that smaller and cheaper are the characteristics they desire in their next property, but some discover itrsquo;s a different story in practice.
When faced with the actual move to a smaller house in a cheaper location, they may find the mental leap too great. Downsizing is often wrongly considered me>
Many faced with wanting a change find they lack the real estate knowledge and planning expertise to make the shift gracefully acceptable and financially successfully.
bull; Newbie real estate investors may believe that crunching numbers to determine how much profit they want and what it will cost to achieve this profit is all it takes.
Creating an offer to purchase, which entices a property owner to sell for the buyerrsquo;s desired price, requires special professional expertise. Then, offering the property for profit-generating rent that will attract qualified prospective renters involves a different set of professional skills. Many new investors possess neither skill set, which are both common in real estate professionals.
The emotional element regarding what sellers will sell for and what renters will pay to live in the resulting investment property can influence financial gain and bottom-line projections. Skill and experience is essential to investors taking all this into account to create profit.
What you donrsquo;t know about property ownership and real estate transactions can cost you when buying or selling, wherever you fit in on the list of buyers and sellers above. Do you have experience with contracts, financing, interior design, renovation, conflict resolutionhellip;? Then, therersquo;s marketing - both using it to persuade others and personally fending off its effects when yoursquo;re making decisions.
What you donrsquo;t know about real estate, real estate professionals do. They are committed to studying and keeping up to date on what matters. Most have spent years on the job perfecting their expertise and learning local markets.
Would you surgically operate on yourself or drill your own teeth? Itrsquo;s that extreme an issue when you donrsquo;t engage available professional skill and knowledge to work for and with you.
Concentrate on learning what the right real estate professional cannbsp;help you achieve.
Not the least of which is discovering what you donrsquo;t know about buying and selling. When you think, my goal is ldquo;buy my dream homerdquo; or ldquo;sell at my dream price,rdquo; understand what will have to happen and what you must do to achieve the desired outcome.
If you donrsquo;t know where to start, no problem.
Real estate professionals are trained to know what needs to be done for prospects and clients every day, every offer, every transactionhellip;. Do you know what yoursquo;ll gain with professional help? How determined are you to achieve real estate goals and exceed your expectations, as quickly and hassle-free as possible?
To continue learning about buying and selling real estate, checkout more Realty Times articles by PJ Wadenbsp;The Catalyst:
bull; 4 "Big Regrets" to Avoid When Buying a Homenbsp;
bull; Trends Cost Sellers Money
bull; Ready to Talk About Real Estate?
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