longtime family home being “too big for a couple just starting out” or how the “new neighbors have been tough to deal with” or how “things in the neighborhood have been changing for the worse,” etc., you might end up squashing the buyer’s interest and a potential sale.
MISTAKE #9. UNDERESTIMATING CLOSING COSTS
Don’t underestimate all the closing costs involved. Many homeowners nearing retirement are guilty of this, simply because it’s been so long since they last sold a home. Far too often, sellers consider only the asking price of their home without factoring in and calculating all the other costs associated with the sale, such as:
• Real estate agent commission or fees • Marketing and advertising costs • Attorney costs and closing agent fees • Excise/gains tax (if applicable)
• Prorated costs for such items as property taxes, homeowners association (HOA) costs, and utilities • Any other fees like appraisals, inspections, buyer’s closing costs, etc. While we’re talking about costs, don’t make the mistake of spending “earnest money” given to you. There are far too many stories about sellers who spent their deposit money prior to closing. When the transactions don’t go through for whatever reason (such as financing contingencies or failure of inspection or repair issues), the buyers had to fight or sue for a refund. Having a real estate agent on your side is advantageous because he or she can act as a neutral party who can keep the deposit safe until the official closing day, and can ensure your contract dictates what should happen to the funds if the transaction falls 59
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