Real estate transactions, whether for buyers or sellers, present ample opportunity for missteps. Interestingly, both parties tend to encounter similar pitfalls, albeit from different perspectives, and these errors can carry significant financial repercussions. However, armed with foresight, you can shield yourself from such costly mistakes. To that end, we’ve compiled a list of six common pitfalls encountered by both buyers and sellers during real estate transactions in Savannah, GA and Chatham County.
1. Waiting Too Late to Do the Prep Work
Before any successful real estate transactions can be completed in Savannah, GA and Chatham County, properties must undergo preparation for sale. This typically entails various tasks such as cleaning, decluttering, painting, plumbing and electrical repairs, roof maintenance, kitchen and bathroom upgrades, enhancing curb appeal, and more. These efforts often demand a significant investment of time.
A prevalent mistake observed in real estate transactions in Savannah, GA and Chatham County is delaying this essential preparatory work. This issue becomes particularly acute when individuals find themselves in the dual role of both seller and buyer, simultaneously selling one home while purchasing another to move into.
Here’s what can happen according to one top agent . . .
My client was trying to buy and sell simultaneously. [I] advised him repeatedly to start prepping the home, but he kept pushing it off and pushing it off, despite actively looking for a new home and submitting offers. Once the client went under contract to buy a home, he suddenly found himself rushing to list his existing home. When they finally finished prepping, it was already October – precisely when the market was slowing down, and it became tougher to find a buyer.”
2. Having Too Little Financial Cushion
Frequently, both buyers and sellers embark on real estate transactions in Savannah, GA, and Chatham County without adequate financial reserves, which often proves to be a critical error. Insufficient funds leave them vulnerable to financial strain in scenarios where they either sell for less than anticipated or encounter unforeseen expenses. It’s essential to maintain a healthy financial cushion to navigate the uncertainties inherent in real estate transactions effectively.
Her’es what the pros advise to avoid this situation: “Give yourself a cushion on what you need to sell your existing home for . . . If you’re hoping to use the entire sale price as a down payment on another home, move forward with the assumption your home will sell for less than expected.”
3. Being Unwilling to Compromise
Another common misstep observed among buyers and sellers in real estate transactions in Savannah, GA and Chatham County is a reluctance to compromise. Refusal to budge or compromise even slightly can often jeopardize the entire transaction. Flexibility and willingness to negotiate are key components of a successful real estate deal, allowing both parties to reach mutually beneficial agreements and ensure the transaction progresses smoothly.
More often than not, this is a mistake sellers make after the inspection reveals problems. Sellers often hold out for the asking price without being willing to make needed repairs. “A little compromise,” experts say, “goes a long way, especially when there are two escrows (or more) on the line.”
4. Closing on Friday or Late in the Day
One frequent error observed among combination buyers-sellers, particularly those navigating both the sale of a home and the purchase of another in real estate transactions in Savannah, GA and Chatham County, is timing the closing incorrectly. Ideally, it’s advisable to avoid closing on a Friday or late in the day. Opting for a more strategic timing can help mitigate potential complications and ensure a smoother transition between properties.
If you need to sell and buy within a few days, say, two or three, closing on Friday doesn’t allow the buffer time you’ll need. “That’s because bank transfers can take a few days to go through. In order to ensure there’s money in your account when the time comes, buffer a few days to transfer funds.”
Closing late in the afternoon presents similar challenges and is generally not recommended for several reasons. Most banks cease wire transfers around 3:00 pm, resulting in delays in funds arriving in your account on the closing day if the closing occurs late in the day. Therefore, it’s advisable to schedule your closing in the morning to ensure a smoother transfer of funds and avoid any potential complications.
This is an area where your local agent can advise you on the best way to proceed. To find out more, call (912) 756-2448.
5. Being Unrealistic About Price
An exceedingly prevalent and widespread misstep observed among buyers and sellers engaging in real estate transactions in Savannah, GA and Chatham County pertains to unrealistic price expectations. Sellers often harbor hopes of securing a price higher than what’s realistically attainable, while buyers anticipate paying less than what’s feasible.
However, it’s essential to acknowledge that real estate pricing is primarily dictated by market value, rather than personal preferences or desires. Market value is chiefly determined through a comprehensive analysis known as a comparative market analysis, which evaluates prices of recently sold properties with similar attributes in the local vicinity. By grounding expectations in market realities rather than subjective desires, both buyers and sellers can navigate transactions more effectively and reach agreements aligned with prevailing market conditions.
6. Not Listening to Their Agent
And sometimes buyers and sellers don’t or won’t listen to the expert advice and guidance of their agent. The mistake buyers and sellers make during real estate transactions in Savannah, GA and Chatham County has the potential to be the most devastating.
Having a knowledgeable, seasoned real estate agent by your side is invaluable in steering clear of costly errors. Discover how our team of agents can assist you in sidestepping common pitfalls. Reach out to us today by calling (912) 756-2448 or send us a message!
