With the trifecta of increasing prices, historically low interest rates for buyers, and the approaching summer sale season, you might be thinking of selling.  But even with the latest jump in sale prices, you still need to maximize equity when your house hits the market. Do this by contacting your local Real Estate Expert.

To get the most money out of your home,  it pays to do everything right. Shockingly, sellers make up to three costly mistakes each sale. We’ve put together nine of the most common (and most avoidable) seller mistakes. Learn to identify and eliminate all of these, and you can save yourself thousands –even tens of thousands – of dollars.

Here are the 10 mistakes you must avoid:

1. Not Hiring A Professional To Sell Your Home – Trying to sell your home by yourself is sheer madness. You need the expertise of a professional. The numbers also don’t lie – home sellers who try to do it themselves often end up taking longer to sell and sell for far less than homeowners who work with a agent.
2. Mis-Pricing Your Home – Over-pricing or under-pricing is a huge money-losing mistake. It’s so critical to know your market and get familiar with comps of similar homes currently for sale (and those that have recently sold) to understand exactly what price tag your home needs. Click here for my guide to understanding comparable sales.
3. Neglecting Necessary Repairs Prior To Sale – You will lose money if you don’t take care of repairs before the house goes on the market. It’s always going to cost you less out of pocket to fix things ahead of time, rather than have buyers see your house in disrepair.  I promise they’ll offer less or ask for a credit back for the work that needs to be done before the deal closes.
4. Refusing To Remove Your Clutter And Junk Prior To The Sale – Clutter eats equity and kills deals. One of the least expensive improvements you can make to your home is to declutter and create a sense of spaciousness throughout, from the kitchen countertops to the overstuffed closets to the trophy-lined shelves in the den. It costs you nothing to get rid of all that ‘stuff,’ yet it reaps big rewards.
5. Selling Your House Empty – Selling an empty house makes buyers feel the same way: empty. I’m a firm believer that a home should be dressed or ‘staged.’ Don’t worry, you won’t need to go out and buy new furniture and accessories.  Chances are, you have plenty to choose from already; in fact, that’s usually the problem (see tip four, above).  Editing out items – lots of them – may just leave you with the perfect amount of furnishings for a simply staged home (space is your friend, after all). If your furniture is already in another house or taking a cross-country trek, I highly recommend making the small (but mighty) investment in a local stager to give the for-sale home a new look that will charm potential buyers.
6. Letting Your Ego Get In The Way When Negotiating – Too many sellers take negotiating personally and lose out on creating a win-win deal. Remember, this is a business transaction – perhaps the biggest one of your life.  Take your ego out of the equation and put your head back into it.
7. Failing To Complete A Full Set Of Disclosures Prior To Closing – I’ve watched too many sellers pay big bucks because they didn’t reveal it all. Being upfront and forthcoming about any of your home’s issues will save you lots of money and time, especially if the buyers end up uncovering problems themselves.  And they will.
8. Mis-timing The Sale For Maximum Tax Benefits – Even a sale mischeduled by one day can cost you tens of thousands in extra taxes. Don’t be left a day late and many dollars short. Make sure you talk to your accountant to find out if any long term capital gains tax breaks apply to you, and check your calendar to determine when they come into play.
9. Overlooking Junk Fees And Extra Expenses At Closing – Home sellers throw thousands away by not requesting and confirming a list of fees and expenses long before closing day. Make sure you and your real estate agent review estimated closing cost statements long before it’s time to hand over the keys. Because the closing table on sale day is way too late to be fixing costly mistakes or asking for discounts and credits.
10. Using Lousy Photos – This is my pet peeve.  I do segments on several TV shows, and I’m always looking for great houses to showcase on-air.  I can’t tell you how many awesome homes have horrible camera phone photos in their sale listings.  Now, more than 90% of all buyers start their home search online, so you’d better make sure you and your agent nail your home’s close up! You won’t ever get a second chance to make the perfect first impression.

This article was written by: Trulia.

The post The 10 Most Costly Home Selling Mistakes — And How To Avoid Them appeared first on Home Real Deal.

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

1. Don’t … buy a house if you’re planning to move again soon.

If you’re a renter, it can be frustrating to write that rent check every month and have no home equity to show for it at the end of the year. But if you aren’t certain that you’re going to stay put for a few years, it’s probably not the right time to buy—equity or no equity. “Some people tend to buy a house knowing that they’re going to be relocating after a few years,” says LearnVest Planning Services certified financial planner Ellen Derrick. “Don’t buy property and automatically assume that you’ll be able to rent it out or sell it when you move.”

What to do: If you aren’t in an area with a strong rental market that would allow you to cover the mortgage on your home if you move elsewhere, then stick with a rental for now.

2. Don’t … bust your budget.

Shopping for houses can make you a little giddy. Look at this one! And this one! For a little bit more, you could get granite countertops, plus an office nook! You’re dealing with such large numbers when you’re browsing real estate that it might not seem like such a huge deal to stretch another $10,000 or $15,000 to get the home you really love. But that’s not a game you want to play. “People look at the top end of their affordable monthly payment, and they don’t really think about what happens if their income goes down or they have to change jobs,” says Derrick. (If you’re wondering what percent of your budget should go toward housing, check out the 50/20/30 Rule.)

What to do: Get preapproved for a mortgage. Not only will this prove that you’re serious to your realtor and to home sellers, but it will also give you an idea of your upper limit. “Remember that the lender is there to make you a loan, and the more money you borrow, the better it is for them,” Derrick says. “They want you to max out. I would take the pre-approval number and cut about 20% off.”

RELATED: M.A.S.H. Calculator: How Much Will My Lifestyle Cost?

3. Don’t … forget about added costs.

Buying a home isn’t just a matter of replacing a rental payment with a mortgage payment. There are also maintenance costs, utilities (which will likely cost more) and property taxes. “People tend to forget about both property taxes and insurance when they’re thinking about how much house they can afford,” Derrick says. “The actual monthly payment could end up being well out of your price range when you figure those things in.”

What to do: Ask the homeowners about their average utility costs and property taxes, get a homeowner’s insurance quote and budget about one percent of the home’s purchase price for annual maintenance. Then run the numbers to see if you can afford the home. (And don’t forget about closing costs. The average cost to close on a $200,000 mortgage is about $3,754, according to Bankrate.com, but your broker should be able to give you an estimate.)

4. Don’t … put down a nominal down payment.

Even with lenders tightening requirements to qualify for a mortgage, it’s still possible to buy a house with as little as 3% down. That’s not necessarily a bad thing, but it does mean that you’ll have very little equity in your home when you first move into it. So if something comes up, and you have to sell, you’ll end up owing more than you can get out of the sale once you factor in closing costs. It puts you in a precarious position. Even if that doesn’t happen, you’ll have to pay private mortgage insurance (PMI) every month until your equity in the home exceeds the 20% mark—and that could take years. (If you can’t put 20% down, your loan is technically considered risky—PMI is insurance that protects the bank if you default on your mortgage.)

What to do: Consider whether it’s prudent to buy a home now if you’re nowhere near having a 20% down payment. Yes, interest rates are low, but if you have to borrow thousands more because you don’t really have a great nest egg, it may be a wash in the end. You could avoid years of PMI, and owe a lower monthly nut, if you spend a year or two saving aggressively toward a down payment.

RELATED: I Want to Get a Mortgage Checklist

5. Don’t … neglect to get everything in writing.

You wouldn’t be the first home buyer to assume that the kitchen appliances come with the deal—only to discover an appliance-free kitchen on the final walk-through. “I’ve heard of buyers going ten rounds because the seller took the drapes down, and the buyer expected them to be left,” Derrick says. “I’ve seen all kinds of deals blow up over stuff like that.” Common points of contention: window treatments, hot tubs, light fixtures, shower and bath fixtures, ceiling fans and big appliances, such as washers and dryers. Replacing something you thought was staying could cost hundreds, so it’s not a small thing.

What to do: Go through your contract with a fine-toothed comb. If the item that you expected to be there isn’t, ask about it—and get it added in writing.

6. Don’t … skip the inspection.

Even if the home looks like it’s in winning shape, it would be foolish to skip a thorough once-over by a professional. “People tend to think that the inspection and the appraisal are the same thing,” Derrick says. “They’re not.” An inspector is there to spot the things you don’t know to look for, like if the chimney is in great shape or whether those little cracks in the foundation are a big deal. He’ll look for signs of water damage and check the insulation in the attic. If there are conditions that will need repair, you may be able to negotiate with the seller to drop the price. In other words, the inspection is worth every penny.

What to do: Get recommendations from your realtor or friends who’ve bought in the area, and have a professional inspection done before you close on the house.

7. Don’t … think a brand-new home entitles you to brand-new everything.

“A lot of people buy this nice house, and then look at the ratty car sitting in the driveway and think, ‘We better buy a new car,’” Derrick says. Or you suddenly have a formal living room but no formal living room furniture—so you buy some! It’s a mistake to feel like you suddenly have to upgrade all of your stuff to match the shiny new home. “You don’t want to get yourself into a pile of credit card debt just so you can keep up with the house,” Derrick says.

What to do: Live in your house for a while, so you can figure out what you really need. Then save up for it!

This article was written by: Kate Ashford

The post The 7 Top Home-Buying Mistakes You Should Avoid appeared first on Home Real Deal.

One of the best places to invest money is through buying rental property. Rental property is a house or apartment that people buy with the intention of renting it out to others and earning a return on their investment. Investing in real estate has many advantages. A properly maintained rental home or homes can help provide the person investing with a steady and reliable stream of income over a long period of time. Buying rental property traditionally offers a steady and reliable form of income that can be tapped into each month.

Unfortunately, sometimes investors make mistakes when buying rental property. If you are considering doing so, here are some common mistakes you will wish to avoid during the process.

1) Investing Based on Appreciation
People often mistakenly invest in rental property based on the idea that it will appreciate or gain in value in the coming years. This is not a good idea. Rental property values can fluctuate from year to year. A house may lose value in a down market. An investor may need to unexpectedly sell their property. Doing so in bad market can lead to a loss. Instead investors should always invest based on the cash flow of the property. This is why it is important to have firm numbers at your fingertips during the investigation process and when buying rental property that you intend to keep in your investment portfolio. The seller should be able to provide you with at least a year’s worth of verified rental numbers in writing when you are investigating any property you want to think about buying.

2) Missing Items in Contracts
Always get all your assumptions in contracts when buying rental property and read them thoroughly. Buying real estate requires the person doing so to sign multiple contracts. Each contract and real estate partnership agreement should be read carefully before you sign it. Make sure the contract has all necessary clauses before you sign it. A missing item can be costly to fix. You may need to hire a lawyer afterwards to fix the problem. It is best to get the contract exactly as you want before you sign it. If possible, hire a lawyer to help you during this process.

3) Hiring Third Party Real Property Management
Managing a property is an important aspect of buying rental property. A property needs to stay in good shape if it is to be attractive to potential renters and retain value long-term. A property also needs to be properly managed once you have renters living there. Very often the owner of the property must respond to problems with the property such as plumbing leaks as soon as possible. If the problems are not addressed quickly, more expensive problems may result. In that case, a reliable and efficient management company is vitally essential. Always work with in-house property management so that the person selling you the investment is also responsible for its performance. An outside property management company can be both costly and unreliable. They may also not know the area well or understand all aspects of property maintenance. It is best to work with someone who knows the property in and out. An in-house management company can do this for you best. Make sure they agree to manage the property during the buying process. Don’t forget to cross-check any claims made by your property manager with Rent Fax Pro, an objective risk analyzer and rent estimator.

4) Improper Insurance
Insurance is vitally important when investing in rental property. The right insurance can help make sure your investment is protected in case of bad weather conditions such as flooding or heavy snow. Failing to buy enough insurance or purchasing insurance that is not tailored to your needs is one of the most common mistakes that buyers often make. Insurance should be carefully considered when buying rental property along with other factors. Any insurance policy should take into account multiple factors that are specific to your situation including your personal fiscal situation as well as where the property is located. The insurance policy should also be part of any insurance policies that have been purchased including life insurance. The right insurance policy plan can protect your investment during your lifetime as well as for your heirs.

5) Buying Too Many Properties
If you are a novice investor, it is important to avoid buying too many properties at once. Consider buying one property initially to get a feel for the business. Buying a home is different than buying a rental property. Even if you have purchased your first home, the experience of doing so will be vastly different than buying property for investment purposes. In most cases, it is best by far to buy a single property initially. Doing so will let you get a good idea of what is involved in the process. If possible, wait at least a year before buying any additional properties. This gives you time to understand all aspects of owning and rental property of your own. A long time frame for this process allows you to work through any potential problems that may crop up. Look at your first rental property as an opportunity to experience the business of property ownership and get a better understanding of it.

Owning a rental property can be an excellent way of accomplishing many of your fiscal goals. Rental property can provide a highly stable income that has tax advantages for the owner. Proper research is essential during the process. Investigate carefully and avoid these common mistakes. In turn, you may expect to have an investment that can help provide the basis for a comfortable financial future.

This article was written by: Hunter Thompson 

The post 5 Mistakes To Avoid When Buying Rental Property appeared first on Home Real Deal.