WASTING TIME ON UNQUALIFIED B ALIFIED BUYERS
It is wasted effort to show your home to someone who cannot buy it. An example is the seller who spent two weeks preparing his home for an acquaintance who wanted to buy his home. The seller spent $1,000 removing an old shed and met with the prospect several times to discuss price and terms. It was well into the process when the seller found out the prospect could not qualify for a loan. Listing agents spend considerable effort weeding out showing to non-qualified and unqualified home shoppers.
UNDERESTIMATING CLOSING COSTS
Many sellers only consider the money they are selling their home for. They don’t appropriately calculate all the costs associated with the sale. Zillow lays out the following list of expenses: • Real estate commission, if you use an agency to sell. • Advertising costs, signs, other fees, if you plan to sell by owner. • Attorney, closing agent and other professional fees. • Excise/Gains tax for the sale, if applicable. • Prorated costs for your share of annual expenses, such as property taxes, homeowner association fees, and utilities.
• Any other fees are sometimes paid by the seller (appraisals, inspections, buyer’s closing costs, etc.).
FORGETTING TO CANCEL/SWIT CEL/SWITCH — Utilities and Insurance —
Many sellers overlook notifying utilities that they are moving or applying for utility service at their new home. Call the utilities and your insurance company as soon as a contract is signed. Find out how many days’ leads time they need to switch or cancel, then get back with them when you have a firm closing date. 90
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