Introduction
The first and most important thing to do before buying or selling a home is to get your finances in order. Whether you are buying or selling, being financially prepared will make the process much smoother.
If you are looking to buy a home, the very first step is to check your credit score and credit report. Lenders will look at your credit history and score to determine the type of mortgage product you qualify for and the interest rate you will receive. You’ll want to check your credit reports from all three major credit bureaus – Equifax, Experian, and TransUnion – to verify there are no errors or issues on your reports that could negatively impact your credit score. Dispute any inaccuracies right away.
You’ll also want to gather documentation of your finances such as pay stubs, W-2 forms, tax returns, and bank/investment statements. Mortgage lenders will want to verify your income, assets, and debts to determine how much home you can afford. It’s a good idea to calculate your maximum budget for a home purchase based on factors like your current debts, monthly expenses, and income. Getting pre-approved for a mortgage gives you an advantage when house hunting and makes your offer more competitive.
Hire a Qualified Real Estate Agent
When it’s time to actively look for homes or sell your current property, hiring a qualified and experienced real estate agent is crucial. Real estate agents have extensive market knowledge of areas, properties, comparable sales, and the buying/selling process that can save buyers and sellers a lot of time, money and stress.
For buyers, a good agent will be on top of new listings in your targeted areas and price range. They can advise on negotiating the best deal, recommend inspectors and other professionals, and handle many of the details involved in making an offer and closing. Agents have dedicated software and resources to search the entire for-sale housing inventory faster than an individual could on their own.
For sellers, listing agents market properties extensively via the Multiple Listing Service (MLS), social media, and brokerage networks. They know how to properly value and price homes to attract buyers while still leaving room for negotiations. The Sellers agent handle open houses, showings, offer negotiations, and communicate professionally on behalf of their clients. They take much of the stress out of selling by handling all the important details and paperwork.
Inspect the Home Thoroughly
One of the absolute most important steps before finalising a home purchase is to conduct thorough inspections. As a buyer, you’ll want professional home inspections done on any property you are seriously considering. Common types of inspections include:
- General Home Inspection: Covers overall condition of major systems and structure. Look at the roof, foundation, electrical, plumbing etc.
- Termite/Pest Inspection: Looks for evidence of termites, carpenter ants and other wood boring insects or organisms.
- Well and Septic Inspection (if applicable): Inspects well water quality and septic or sewer system.
- Pool/Hot Tub Inspection (if applicable): Checks pool/spa equipment, plumbing and structure are functioning safely.
- Radon Test: Checks for dangerous radon gas levels in the home.
- Mould Test: Tests for toxic mould growth, especially in basements.
The inspection allows you to review the home’s condition with an expert, negotiate repairs, or even back out of the deal if major issues are uncovered. As a seller, fixing any deficiencies before listing can increase sale price and sell ability. Allow buyers to conduct thorough inspections and carefully review the reports.
Do Comparable Home Research
Whether you are buying or selling, researching recently sold comparable properties is crucial for determining fair market value. For sellers, comparable give a realistic idea of what similar homes in the area have recently sold for. This helps determine the optimal listing price. For buyers, comparable can help assess if a home is priced appropriately or reveal negotiating opportunities.
Some key things to research include:
- Find 3-5 recently sold homes within 1 mile that are similar in size, updates/amenities, lot size, and condition.
- Review listing details, purchase price, days on market, and any special features/upgrades of the comparable homes.
- Note differences or upgrades your home has compared to the ones in your neighbour.
- Consult with your real estate agent who has access to MLS (Multiple Listing Service) data.
- Consider comparable prices, not just listing prices which may be negotiable.
- Understand market trends – is it a sellers’ or buyers’ market currently?
Research takes time but ensures proper valuation and pricing strategy. Comps arm agents and their clients with insightful data for negotiations. Buyers can verify a home’s worth from hard data. Sellers can maximise profits by leveraging comparable properties’ sale prices.
Repair, Declutter and Stage Your Home
If selling, proper preparation significantly impacts how quickly your home will sell and for how much. Curb appeal and how well the home shows are key selling points. To boost appeal:
- Repair issues discovered during inspections, like leaks, cosmetic damage or appliance repairs.
- Declutter and de-personalize rooms. Remove half the stuff to make the space feel more-open-and-sparse.
- Deep clean every inch, including fresh paint, cleaned carpets, scrubbed bathrooms, dusted surfaces.
- Declutter the garage and organise all closets. First impressions matter.
- Do any landscaping, mowing, power washing or repairs outside. Front door area should be tidy.
- Stage your home by placing furniture strategically to define spaces. Add decor and wall décor sparingly to accentuate rooms.
- Upgrade light fixtures, switch plates or hardware if dated or worn looking. Small upgrades go a long way.
- Consider enhancing curb appeal with new plants, fresh mulch or a new front door coat of paint.
- Declutter countertops and declutter refrigerators. Show as a clean empty canvas.
Proper preparation boosts your chances of an offer and a higher sale price. Staging is a worthwhile investment of both money and elbow grease to stage your home to show its full potential. First impressions are critical in a competitive market.
Negotiate Smart and Thoroughly Review Contracts
For buyers, making an offer involves careful negotiation strategy. Consider:
- How much can you offer while still leaving the negotiation room? Too high and you overpay.
- Request repairs or credits for inspection deficiencies instead of a direct price reduction if possible.
- Make your first offer lower than the asking price to have room for healthy negotiations.
- Consider backup offers concurrently in case the first choice falls through.
- Be prepared to negotiate repairs, inspection items, price, closing date and more.
Thoroughly review and counteroffer contracts with your agent and attorney. Don’t rush, as purchase contracts are complex, legally binding documents. Key things to verify include:
- Inspection and financing contingencies to back out if not satisfied.
- Requested repairs are addressed and prove satisfactory.
- Closing date, costs including escrow and repairs are accurate.
- All documents, forms and disclosures are completed.
- Seller concessions are clearly outlined if applicable.
For sellers, counteroffers should be carefully considered with your agent’s input. Sellers ultimately accept the best overall offer that satisfies their needs. Master negotiation skills and review final contracts with care. Proper due diligence by all parties leads to smooth, satisfactory real estate transactions.