It is commonly acknowledged that buying or selling a home is, for most people, the largest financial transaction that they will likely encounter in their lifetime. As such, it is only reasonable to expect that you will experience a wide range of emotions when going through the transaction process itself.
Even experienced real estate purchasers and homeowners making their second or third purchase are not necessarily exempt from the anxiety that can creep into the mind of someone making a decision that will have a major financial impact on their future and their family.
Most people purchasing a home believe that their No. 1 concern surrounds the issue of price. Am I paying too much for this home? What if values drop or a better property comes on the market at a better price? How do I know if I struck the best deal and if I have received the best advice? How do I know I have made the best decision regarding interest rates and financing options?
These are all very natural concerns. Using an experienced and knowledgeable real estate broker or salesperson can prove invaluable. A real estate professional should be able to provide you with realistic market data and information that will help you evaluate your particular situation. They should also help surround you with a team of knowledgeable professionals who can assist with the entire maze of financing, inspections, title and legal, settlement requirements, etc.
After price, buyers most often are concerned with the overall condition of the property. They may have concerns that there are major repairs or improvements required or that there may be hidden or latent defects which are not discovered prior to closing. For peace of mind, a buyer should rely on a qualified home inspector (as described in last month’s article) to help them evaluate both the present condition of the property as well as educate them on what future maintenance and repair will likely lie ahead.
After making a commitment to purchase, almost all buyers will, at lease to some extent, begin to second guess themselves and their decision. A lot of emotions are involved in the decision to purchase a property and sometimes, when those emotions subside, there can be a change of heart or at least a serious reconsideration. Within the industry, we call this “buyer’s remorse.”
Sellers are not immune from their own worries and concerns when it comes time to selling their home or property. The No. 1 fear for sellers is always, “am I selling too low?” This is particularly true if the seller gets early and heavy activity and secures an offer to purchase very quickly. The natural reaction is, “I wasn’t asking enough.”
The reality is, and I have seen this time and time again over more than 30 years, your first offer is often your best offer. If you believe that you have prudently priced the property at something close to fair market value, you should not be surprised to get a solid offer very close to asking price and very early on in the process. Typically, the longer the listing remains on the market, the more price negotiation will likely be required. Rarely, particularly in a seller’s market such as we are currently experiencing, does a seller “leave money on the table.”
Although the process of selling your home is also very emotional, sellers need to not take comments or feedback personally, or to construe a lack of showings or activity as a reflection on them. Many things contribute to slower showings and activity. This could have to do with the overall price range, number of competitive listings on the market, or the extent to which updating or repairs are required.
Today’s buyers insist that homes — virtually in all price ranges — are updated and in a reasonably good state of repair. The days of buyers purchasing a home they intend to occupy and fix up are somewhat gone. This has been dictated by modern day mortgage underwriting guidelines and buyer mindsets. Sellers need to keep in mind too, that the home inspection will identify required repairs or improvements that will have to be addressed in some form or fashion if you hope to get to the settlement table. This is why obtaining a home inspection before listing the property and making obvious repairs and improvements at the onset can save a great deal of time.
FEAR — False Expectations Appearing Real. Well, they might be false, but they sure can be real. By working with an experienced real estate professional, both buyers and sellers may successfully address the top fears found in real estate transactions.
Ray L. “Buz” Wolfe, CRS has been Broker/Owner of his own firm since 1986. In 2016, he was again the Carlisle Area’s Top Producing Independent Broker.