So often in real estate, we get stuck on a number. It is easy to get mired in the small details of it all. But, it’s the big picture that’s important. There are many ways to which this common scenario applies to real estate. Here’s a list of some obstacles that block buyers, sellers, renters, and homeowners from maximizing the value of their real estate experience.
- I can’t afford to buy a home! – Many who are renting would love to own a home but feel stuck in their current situation. They believe that they can’t afford to buy a home. I hear this a lot from renters who are spending $1,000 or more a month on rent each month. The truth is that if you are spending that money on a rent check then you could also be spending it on a mortgage payment.
- My credit sucks and I won’t be able to get approved for a loan! – Credit standards for loans are often not as high as renter believe them to be. No, you don’t need perfect credit. Also, if your credit is not where you want it to be, there are things that you can do to improve your score.
- I don’t have 20% to put down on a home! – You do not need 20% down to get a loan. There are even loan programs that you may be able to use with as little as zero down. Additionally, there are down-payment assistance programs to help those who are having trouble saving for a down-payment.
- I don’t have money/ time to make the improvements that the Realtor suggested to sell my home! – At the very least, a home seller should thoroughly clean, de-clutter, replace light bulbs, and repair any major aesthetic issues. Additionally, repainting a home with neutral colors, landscaping, and staging can also give a great return when selling. Not only will a home with these minor/ inexpensive improvements be able to show well, but it will also appeal to more buyers, sell more quickly, and earn the highest price possible. Overall, professionally staged homes can sell five to seven times faster than non-staged homes. Additionally, staged homes sell for an average of 17% more than non-staged homes.
- Realtor commissions are too high! I don’t need to use a Realtor. – Believe or not, we hear this from both buyers and sellers. Even though buyers do not pay the commission, many buyers do not know that they can receive the services of a Realtor at no cost to them. And yes, sellers do pay the commission. However, the average Realtor-assisted home sells for more than $60,000 than the average non-Realtor assisted sale, according to a recent article by The Economist’s Outlook. The commission of that sale (calculated at a rate of 6%) would be a little more than $15,000. That leaves the seller with an excess profit of $45,000. Really, you cannot afford to leave that money on the table. So, using the services of a Realtor is beneficial to any seller who wants to earn more money for their home.