5 Considerations When Buying Or Selling A Home

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Five Considerations When Buying or Selling a Home

  • Buying: Priorities
  • Buying: Budget
  • Buying: Lending Considerations
  • Selling: Renovations
  • Selling: Price Limits

Real estate has proven to be one of the most lucrative industries, but can be a nightmare for anyone who jumps in unprepared. It takes more than simply being prepared to succeed in this industry. It takes knowledge of investment risks, how to safely sell a home and other similar factors. This is mainly due to the competitiveness of the industry in the first place. That being said, there are some things to consider that can make the buying and selling process easier. While no amount of preparation and advice can guarantee success, at the very least, these considerations will go a long way in putting you in a profitable position. More than anything, this is the key to succeeding in this field. Any small advantage can mean the difference between you being able to sell a home at a profitable range or your competitor doing the same. With these strategies in mind, let’s go over the top five things to consider before buying or selling a home.

Buying:  Priorities

One of the most common mistakes both young and professionals in this field make is jumping right into buying a home. While it is a good habit to get a return on your investment as fast as possible, not taking into account buying priorities will end up hurting you financially in the end. Buying priorities simply means knowing why and how you are buying a home. Understanding these factors contributes to a financially secure plan for whatever your buying reasons are.

Buying:  Budget

Budget is arguably the most important thing to consider before buying a home. Your budget is what allows you to determine what market you can buy a house in. Quite obviously, the larger your home buying budget is, the more expensive the market you can buy from becomes. Another way to look at a home budget is by profitability. The larger it is, the larger the potential profit of flipping a home is due to buying from a more expensive market.

Buying:  Loans

Dealing with a mortgage and mortgage lenders has become somewhat unsavory in this industry over the years. The main reason for this is due to the responsibility that comes with using someone else’s money. Most people would prefer to save and buy with their own pockets. However, taking out a loan can be one of the most beneficial things to consider. In many cases, this method of buying a home can be the most cost-effective.

Selling:  Home Renovations

Before you sell, it is important to consider any renovations that may raise the value of the home. This is the main consideration of strategies such as house flipping. This strategy allows you to buy a home at a cheap price, make the necessary renovations, and sell for maximum profit. Even if you are not doing this strategy, making renovations is one of the key qualities of a responsible seller. Poor maintenance will affect the appraisal value, and is a major factor with buyers who successfully reduce the selling cost…even if the contract has already been signed.

Selling:  Price Limit

Similar to the budget, your selling limit is the minimum amount of money you are willing to take for your home. Now, selling a home is a bit different from selling other things such as a car. When it comes to selling a home, other factors such as the housing market average price, location, and repair costs will play a role in determining a selling price. That said, if you calculate this number before buying, it sets you up to sell the home faster.