Considerations in Buying or Selling a House
Buyers need to make sure it is the right house
- Can you afford it:
- Closing costs (survey, title insurance, closing fee, loan points, etc.)
- Mortgage payments
- Taxes (and special assessments)
- landscaping and lawn care
- Improvements and repairs (desired or needed immediately, and planned in the future as well as unexpected)
- Property Association fees, etc.
- Area (location and demographics, e.g., are there children the right age for yours to play with, etc.)
- Commuting (distance and routes);
- Possible future changes (nearby commercial development, new or rerouted roads, assessments for new improvements such as sewer, water, etc.)
- Covenants and restrictions (can you build the house or make improvements desired and does it maintain the kind of neighborhood desired)
- Resale: how long will you stay in this house and will it be easy to resell when you want to move [the most expensive house in a neighborhood is often difficult to sell, or e.g., too few bedrooms or bathrooms will limit the pool of buyers]
Sellers need to plan how to most effectively market their house
- Setting the right price. The best opportunity to sell is often soon after the property is first put on the market, and too high a price can cause prospective buyers to not look or discourage offers. You can also set the price too low.
- Should you use a realtor ? Realtors can earn the commission they charge.
- They can help determine the best listing price, and what repairs and improvements are effective and economically wise to make so the property shows well [first impressions are important].
- A good realtor will shepherd the transaction, making sure buyer applies promptly for financing, finding or providing a list of inspectors, arranging inspections, meeting inspectors and letting them in, finding workman and or arranging required repairs, and taking care of many other things that must occur if the sale is to Close.