Do you believe whether a groundhog sees its shadow or not is a true indication of when Spring will come? A lot of people aren’t sure, and no matter what the groundhog sees, it means we’re going to have more winter.
According to the 2017 National Association of Realtors Profile of Home Buyers and Sellers, FSBOs remain at an all-time low of 8%… and for good reason.
According to Realtor.com’s recent Housing Shortage Report, the US is experiencing the worst housing inventory shortage in two decades. This is true in Lancaster County and most of Central PA, where it is a solid Seller’s Market. And while this presents a definite challenge for people looking to buy a home, it creates the perfect storm of opportunity for those wanting to sell.
If it’s your first time buying or selling real estate, you don’t know what you don’t know.
There are tons of potential pitfalls and challenges along the way that it’s hard to anticipate when you don’t know what to expect. The last thing you want to do is lose because you tripped over one of these.
But luckily for you, most of the missteps taken by first time buyers and sellers are pretty universal, which means you can learn from their mistakes and avoid falling into the same traps.
Here are four common real estate mistakes to avoid the first time you buy or sell a home:
The price of a home – whether you’re buying or selling – is one of the most important components of a real estate transaction. But there’s a lot more that goes into pricing than what meets the eye.
Pricing a home is a kind of a blend of art and science. There are so many factors that come into play – time of year, current market conditions, how quickly homes are selling the neighborhood, the current value of the home. I take all of those factors into consideration when helping you come up with the right price for a home.
Without a real estate background, it’s impossible for most to understand all of those conditions and how they affect the price of a home. If you’re selling, you’re likely to think your home should sell for a higher price because of the value it holds for you. If you’re buying, you’re likely to think a property should sell for less because that means a better deal on your end.
But ignoring pricing advice because you think you “know” what the price of a property should be is a mistake. As a seller, you’ll end up overpricing your house (which will leave it sitting on the market). As a buyer, you’ll end up lowballing your offer (and losing the house in the process).
The first time you’re buying or selling a home, it’s your best bet to leave the pricing to the experts. Your real estate agent will always work to get you the best deal – and keep you from pricing yourself out of the deal you want.
Another mistake first time buyers and sellers make is being too rigid when it comes to negotiations.
Most real estate transactions require a bit of compromise. As a seller, you might need to give in on some of your buyer’s demands and as a buyer, you might need to work with the sellers a bit in order to close the deal. It’s just the way real estate works. And if you’re not willing to give an inch, the deal can very quickly go south.
Now, just to be clear: you should never compromise TOO much. Don’t compromise on the things that are important to you. But if a minor repair is all that’s standing between you and closing your real estate deal, giving in can be much easier than walking away.
If there’s a mistake that nearly all first time home buyers make during their home search, it’s not thinking outside of the box.
Most first time buyers have a very specific idea of what they’re looking for in a home. And while it’s fine to know what you want, refusing to look at properties that don’t check off every single item on your wish list is a major mistake – a mistake that can keep you from finding a home you’re in love with.
If you want to find a home you love, it pays to get creative and see as many properties as possible. Have certain non-negotiables (like a specific number of bedrooms or a designated outdoor space) but allow for some wiggle room on everything else. You’ll end up seeing more properties, and who knows? You might fall in love with a house that’s totally different from what you thought you wanted – a house you would never have seen if you didn’t think outside of the box.
Perhaps the biggest mistake you can make the first time you buy or sell a home is trying to do everything on your own.
Buying or selling a home is not only hard work, but it requires a certain level of knowledge and expertise. You need to know where to look for hot properties, how to market to buyers, how to negotiate, how to file all the paperwork… if you’ve never bought or sold a home, it can be completely overwhelming.
Which is why you need a real estate agent to walk you through the process. When you work with a great real estate agent, they make the experience of buying or selling a home easier, faster, and more profitable.
Trying to do everything on your own is a mistake. But hiring a real estate agent can quickly rectify that.
Buying or selling your first home can be overwhelming. But now that you know the most common mistakes to avoid, you’re well on your way to a stress-free first time buyer or seller experience!
Still have more questions? Do you want to sell or buy a property? Call me at 717-371-0557, I’ll be happy to help you!
If you want to search Lancaster County or Central PA homes for sale, visit www.JasonsHomes.com to access an MLS home search that shows you all the homes for sale in the Central PA Multiple Listing Service (MLS) !
As always, I’d like you to be part of the conversation, so if you like what you read here please feel free to let me know, forward this post to your friends and subscribe!
If you have questions, need real estate advice or want to buy or sell a home, you can call or text me at 717-371-0557, email me at [email protected] or contact me at the office at 717-291-1041!
Your Friend in Real Estate,
Jason Burkholder
Realtor, e-Pro
Associate Broker
Certified Marketing Specialist
Weichert, Realtors – Welcome Home
717-291-1041 office
717-371-0557 direct or text
When you do any home improvement, you probably figure it’s also going to improve the value of your home. And it probably will improve the value… but, probably not as much as it cost you.
In other words, if you spend $1,000 (for example), it probably won’t improve the value by $1,000 or more. Statistically speaking, it will probably only improve the value by a fraction of that amount.
So, the question becomes…
Is it even worth doing any home improvements!?
Not to sound wishy-washy, but the answer is…
Yes and no. It depends on a lot of factors. We’ll touch on that more at the end of the article.
But for now, let’s just take a look at the top 7 home improvements, according to the 2017 cost versus value report to start making some sense of it all.
According to the 2017 Cost vs. Value Report, adding fiberglass insulation to the attic costs on average $1,343, but you’ll recoup $1,446.
Doesn’t sound all that exciting. When you think home improvements, you probably think of remodeled kitchens and baths being the biggest and best improvements to make (and they might be for you). But nope, according to the report, your best bet is to add insulation.
Pretty interesting, considering no buyer has ever walked into a house, gasped, and said, “Honey, look at this! They added insulation!” Yet, according to the report, it’s what’ll be the best money you could spend to add actual value to your home, and your bank account.
Replacing your entryway door with one made of steel may set you back an average of $1,413, but you’ll get back $1,282, according to the 2017 Cost vs. Value Report.
So, at face value, it looks like you actually lose a few bucks…
So, why would you do it?
If your new door is more energy efficient, it’ll probably also save you some money on heating and cooling. It’s just tough to say how much exactly.
But the big X factor is how much your improved “curb appeal” will add to the sales price, when you sell your home. Again, that depends on a lot of other factors.
On average, adding manufactured stone veneer will cost $7,851, but you can expect to recoup $7,019, or 89.4 percent, of that.
Obviously, this is another one that loses you money, at face value.
So, why would you do this home improvement?
How about, because you simply like the way it looks. Obviously, if you don’t like the way it looks, don’t do it. But, if you do, you’ll enjoy the home improvement. It isn’t all about making money on the money you spent. Sometimes it is about getting back a nice chunk of what you spent, on something that you wanted and enjoyed during the years before you sell your house.
If you have a functional but outdated kitchen, you may harbor fantasies about beginning a total renovation. However, you don’t need to break the bank to make some valuable upgrades that’ll pay off in the long run. Consider swapping out old appliances for energy efficient ones. You can leave cabinet boxes in tact but replace doors or hardware.
The average minor remodel costs $20,830. As much as you’ll love the look and convenience of modern amenities, you’ll also enjoy knowing you can regain an average of $16,699.
This surprises a lot of people outside the real estate industry (and even some in the industry!).
Almost everyone thinks kitchens are the best thing to renovate, and will increase the value of a home. Again, it will add value, but just not as much as it costs.
So, this is another one where there’s plenty of reason to do it, simply because you will enjoy the benefits of the improvement during your ownership.
Just don’t tack on every penny you spent on the remodel onto your asking price when you sell. That’s not how this works. That’s not how any of this works.
On average, a new garage door costs $1,749, but homeowners recoup $1,345, representing an almost 77 percent return on investment.
Chalk this one up to the X factor of added curb appeal as well, when it comes to justifying spending the money.
But it also just boils down to your sanity. When you have a garage door that doesn’t open or close right, or when you want it to, it can drive you nuts. That’s gotta be worth the 33% you don’t get back when you sell.
The elements wreak havoc on your home’s exterior. If your place is looking a little worse for wear, it could be time to consider siding, which provides a fabulous facelift.
But, more than simply a cosmetic upgrade, siding can protect your home from heavy rains and damaging snowstorms, making it an investment with a multi-pronged pay-off.
The average cost of installing siding is $14,518 of which you should get back $11,093 at resale, according to the 2017 Cost vs. Value Report.
Starting to see the trend? There are benefits to doing any home improvement, but you just can’t expect to get every dime you spend back.
Decks are ideal for outdoor entertaining. Depending on the size, you may feel as if you’ve just added significantly to your living space — especially if you live in a climate where you can use it for much of the year.
The average wooden deck will set you back $10,707, but you’ll get back $7,652, or 71.5%, when you sell.
These reports are based upon National and regional statistics. The thing is, real estate is extremely local. Like, down to the very street you live on local… And there are so many factors that will affect how much return you’ll get on any given project, in any given area, on any given house.
It may make sense for you to do a particular home improvement. It may not. It depends on your local market. It depends on the local supply and demand of homes. And it depends a lot upon what your personal situation is, and what your short and long term plans are.
So, the best thing to do when you’re considering any home improvement, is to reach out to your local real estate agent, and ask him or her for input. Considering they probably won’t charge you a dime for their time and insight, that’s going to be the best cost versus value you will find when it comes to home improvements.
Still have more questions? Do you want to sell or buy a property? Call me at 717-371-0557, I’ll be happy to help you!
If you want to search Lancaster County homes for sale, visit www.JasonsHomes.com to access our Easy MLS home search that shows you all the homes for sale in the Lancaster County PA Multiple Listing Service (MLS) !
As always, I’d like you to be part of the conversation, so if you like what you read here please feel free to let me know, forward this post to your friends and subscribe!
If you have questions, need real estate advice or want to buy or sell a home, you can call or text me at 717-371-0557, email me at [email protected] or contact me at the office at 717-291-1041!
Your Friend in Real Estate,
Jason Burkholder
Realtor, e-Pro
Associate Broker
Certified Marketing Specialist
Weichert, Realtors-Engle & Hambright
717-291-1041 office
717-371-0557 direct or text
It’s one of the largest and most expensive assets most of us will ever own. It’s where we lay our head down at night, the place we make memories and call home. Selling it can be one of the most overwhelming and stressful experiences you may ever go through. So here are 18 tips for living in your home while it’s for sale to help you through the process:
