Regardless of how long you’ve lived in your first home, selling for the very first time can be a daunting task if it’s not done right. While there are certain factors that you can’t do much about – such as the current market conditions and your location – there are plenty of other components to the selling process that you have total control over, which can significantly impact the end result.

If this is your first time selling a home, take the following suggestions into consideration to help make the process a smooth and successful one.

1. Stage Your Home

First impressions go a long way, so the better your home looks in the eyes of buyers, the better. Make sure to take some time to declutter your home and clean it up, and consider investing in professional home staging. These professionals will neutralize your decor and arrange your furniture appropriately so that buyers will be more attracted to the style and be better able to see themselves living there.

2. Price Your Home Right

A lot of sellers believe their homes are worth more than they really are. At the end of the day, your home is only worth what buyers are willing to pay for it, which is dictated by the current market in your local area. If you price too high, you’ll end up with a stale listing that’s doing nothing but scaring buyers off.

Instead, if you price appropriately, you’ll make your home more competitive in the market and attract more attention without having to make price reductions after the fact.

3. Disclose Pertinent Information

As the seller, you’re obligated to disclose all issues with the home that you are aware of, and you need to communicate these facts though disclosure statements. If you fail to reveal a problem with the home that you knew about and the issue comes up after the new buyers move in, you could be stuck ironing out these issues in court.

4. Be Flexible With Showings

The easier you make it for buyers to come and see your home, the more showings you’ll get. Try to be as flexible as you can when it comes to showings. Don’t severely limit the days and times that buyers can make appointments to visit. Their work schedules and family responsibilities can make it tough to work around your strict viewing times; instead, make showings flexible enough for buyers’ schedules.

5. Emotionally Detach Yourself

The home selling process is an emotionally charged one. After all, it’s your home we’re talking about, and is perhaps where you’ve dwelled for years, raised a family, and made memories. Letting go of it can be hard, and receiving offers for significantly less than what you believe the home is worth can be disappointing and even insulting.

Try not to take anything personally. While it may be a home to you, it’s essentially just a building to buyers until they move in and start making their own memories there. Don’t let your emotional attachment to your home cloud your judgment and your ability to make the right decisions, especially when it comes to staging and pricing your home, as well as how you handle offers and negotiations.

6. Be Open Minded Through the Negotiations

Speaking of negotiations, it’s crucial to keep an open mind during these discussions. You might not like what you see with an offer, but that doesn’t mean there can’t be a meeting of the minds and an eventual deal that both parties can be satisfied with. Consider what’s most important to you: the asking price, the closing date, the deposit amount, and so forth. These are all things you’ll need to consider as you evaluate offers that come in.

Don’t forget that you can always counter an offer, rather than just toss it out the window if you see something you don’t like. Entertain the offer to see how far you can go with it.

7. Hire an Experienced Real Estate Agent

Forget about going solo on your home sale, especially if this is your first time. A real estate transaction is typically a complex one that involves a lot of little details that you may not be familiar with. A professional real estate agent will have the education and the experience to handle the process diligently so that there are no holes in the deal. 

The Bottom Line

You’re ultimately in the driver’s seat when it comes to choosing a listing price, accepting/countering offers, and plenty of other factors. Selling your first home can be challenging and even emotionally draining, but if you heed these suggestions, you can make the process much more streamlined.

Investing in real estate – it’s been done forever, and it’s one of the tried-and-true ways of building sustainable wealth over the long term.

But the property you invest in can make or break any profits you make. It’ll also play a key role in the amount of hassle you have to endure to manage the property. There are a ton of decisions to make when hopping on the real estate investment train, one of which includes determining whether to buy locally, or somewhere out of state, (or even out of country).

The question is, which one are you better off with?

There are a few factors you need to consider before making this decision.

ENTRY PRICE

One of the biggest reasons why people choose to invest their hard-earned cash outside of their local borders is because they can often find a much better deal elsewhere and get a solid return on investment. Many times investing locally means paying a much higher price just to get into the market. This is especially true for large metropolitan centers, where the entry price is often way over may people’s heads.

The most basic question to ask yourself if you’re considering purchasing locally is whether or not you’ve got enough capital to buy there. Tons of markets out there are ridiculously expensive (take NYC or San Francisco, for example), and you might not have that kind of cash to make the investment a viable one in places like these.

MARKET FUNDAMENTALS

Maybe you live in a booming area that demands high rent prices. Or maybe you don’t. The fundamentals of the market you live in will play a key role in helping you determine if investing locally is a wise move or not. It’s all about the location when it comes to real estate.

If your local area is experiencing a decline in the market or isn’t exactly the most inviting place to call home, it’s probably not the best location to snatch up real estate in hopes of it gaining in value. Or perhaps you’ve already got some real estate where you are, and want to diversify your portfolio to include a variety of markets. Regardless of what your specific scenario is, it’s probably a good idea to move your money elsewhere.

PROFIT TYPES

You’re obviously in the market to invest in real estate to make a profit, or else, what’s the point? But how you profit needs to be determined.

There are essentially two forms of profit – through cash flow (profits made from rent after expenses are deducted), and appreciation (how much property values increase over time – also known as ‘equity’).

Some markets are known to produce a decent monthly cash flow, but appreciation is pretty scarce (take the Midwest, for instance). Other markets don’t allow for much cash flow because of the sky-high expenses, but appreciation is super healthy (like L.A. or Miami). Maybe you can get lucky and find a market that offers both. Either way, it’s good to know what forms of profit you stand to collect on.

SOURCE OF PROPERTY MANAGEMENT

Do you prefer to be a hands-on type of investor? Or are you OK with the expense and the level of trust needed to let a property management company do the managing for you? Investing long distance is great if you’re the type that isn’t too concerned about having to visit the place in person on a regular basis, or if there’s plenty of money in the pot to dedicate to property management.

Of course, the quality of the property management firm you employ makes a huge difference here. A crappy property manager can wind up costing you a fortune. If you’re going to be relying on your property manager to make sure your investment remains in tip-top shape, there’s a certain level of trust that is needed for that.

A good property manager can save you time, headaches, and even money if they’re one of the good ones. And if they wind up being a dud, fire them and hire another. There are definitely good ones out there – it’s just a matter of finding them. And probably the best way to do that is to chat up your real estate agent and ask them for recommendations. Odds are, they’ve got some.

At the end of the day, it all comes down to what you’re most comfortable with. That really is a huge deciding factor when it comes to investing locally versus long-distance. No investment is worth losing sleep over. And if you can sleep comfortably at night with you investment decision, you’re golden.

It’s no secret that any water that’s pooled in any part of your home will cause nothing but problems. And if there are drainage issues in your home, you’ll likely experience these problems pretty quickly. That’s why it’s critical that any drainage issues be nipped in the bud before they turn into total catastrophe. Yet while some issues are obvious, other’s aren’t.

To save yourself the headache and the money trying to fix major problems that arise as a result of poor drainage in your home, keep an eye out for any one of the following 6 red flags.

1. Water Stains

One of the most telling signs that there’s an issue with the drainage in your home is water stains. Whether they’re on the walls, ceilings, or floors, any water stains are surface signs that something awry is lurking where you can’t see.

The location of the water stain will also be an indication of whether or not the problem is the result of surface water, or water moving underground, the latter of which is typically a much bigger problem. If the stain creates a line around the basement, it’s more likely the result of a moving water table. In this case, inquiring about basement waterproofing might be warranted after the issue has been rectified.

2. Spewing Gutters

If you notice that your gutters are running like a raging river, there’s probably something obstructing the free flow along the gutters. Even if you don’t actually see the water gushing out of the gutters, you can still tell this is happening if the grass or dirt at the opening of the gutters seems like it’s been dug out by powerful flows of water, or if you notice mud splatter marks on the exterior walls near the gutters. If this problem persists, you could be dealing with rotted exterior siding or even structural damage.

3. Downspouts That Dump Too Much Water Near the Foundation

The basement of your home can become flooded with water if your downspouts are dumping hoards of rainwater too close to the foundation. As such, the water will make its way into the basement and wreak havoc on the basement walls, floors, and any items you have in the water’s way.

If the downspouts are too short, they can literally dump gallons of water around the foundation walls of your home. As the water is soaked in by the soil, it puts pressure on the walls, and eventually causes them to crack. Adding gutter extensions that help carry the water a minimum of 5 feet away from your foundation walls can really help.

4. Mold in the Attic

The presence of mold in your attic is a sure sign that there’s a drainage problem with your home. It may sound odd that drainage issues can actually show signs of trouble way up in that part of the house, but moisture from the water in the basement can rise up through your home. The bathroom fans and vents will then blow hot, damp air right into the attic space, which can cause mold and mildew when it condenses on the colder side of the roof. Failure to deal with this issue early on can lead to rotted roof sheathing and shingles, which would then need to be replaced.

5. Crusting on Basement Walls

Any flaking or crusting on your basement walls could very well be a sign that your home’s drainage is inadequate. This crusting is caused by the mineral deposit residue that is left behind after water has evaporated and condenses. This might not necessarily be a huge problem if these deposits go no deeper than half an inch. Any more than that, however, could spell real trouble that may involve a compromised foundational structure.

6. Cracks on the Foundation Wall

It’s normal for foundation walls to experience cracks over the years as the house settles after being built. However, any cracks that are very wide – over 1/8 of an inch – or that are uneven might need a closer look into what could be causing them. It might very well be a drainage problem behind these cracks. If that’s the case, you’ll need to find out what exactly is behind the inadequate drainage and fix it.

The Bottom Line

If you notice any one of the above signs, you should deal with them immediately. A qualified plumber or structural engineer will be able to suggest the best course of action to fix the problem before it gets any worse. Identifying drainage problems when they’re not as serious and are easier to rectify can save you a lot of hassle and thousands of dollars over the long haul.

It’s understandable – after finally selling your home, it can be tough to fork over the commission fee to a real estate agent. But before you fall into the FSBO trap, consider one very important thing: real estate agents can actually save you money.

While a commission is due at the end of the deal, the cost will pale in comparison to how much you can save through the process. Here are just a handful of ways how agents can save you cash when selling your home.

1. They’ll Price Your Home Right

Who wouldn’t want to list their home for millions of dollars, regardless of what it’s actually worth? Everyone wants to get as much money as possible for their property, but buyers aren’t dumb – they’re probably working with their own agents who are telling them what they should and shouldn’t offer on a property. There’s this little thing called ‘comparables’, and agents use them to gauge what homes are worth in a specific area. And while buyers’ agents are using these comps, so are sellers’ agents.

Here’s the rub – price your home too high, and you’ll send buyers running in the opposite direction. That leaves your home sitting on the market for weeks and even months without a bite. And the longer your home remains unsold, the more it costs you in the long run.

The other end of the spectrum is just as ugly – price your home too low, and you’re basically leaving a ton of cash on the table. The goal here is to make as much money as possible, which means you need to find that sweet spot as far as a listing price is concerned. With an experienced real estate agent on your side, you’ll have the expertise and tools necessary to price your home perfectly to get you the most money come sale time.

2. They Give You Awesome Staging Tips

The look of your home can be totally transformed with a few key pointers from your real estate agent. If you’ve had the same set-up and decor for years, that doesn’t necessarily mean that your home shows well to sellers. A seasoned agent will come in to your home and objectively gauge the space, then (nicely) tell you what’s working, and what’s not.

He or she will make suggestions about what you should get rid of and what you can keep, as well as how your present furniture should be arranged to maximize flow and functionality. Rearranging furniture to its optimal visual appeal will make your home more attractive to buyers.

Real estate agents can even bring in a professional home stager to make major changes to the space. These pros bring in their own furniture and accessories, and can make your home look like something that jumped out of a magazine. It’s a fact that homes that are well staged sell faster, and for more money compared to homes that are left as is. So it’s totally worth it to listen to staging tips from your real estate agent or stager if you want more money in your pocket at the end of the day.

3. They’ve Got Ties With Other Pros in the Industry

The savviest agents are the ones that have an arsenal of experts on the back burner to help you in all sorts of ways along the home selling journey.

Need a few repairs to your home before you put it up on the market? An agent can set you up with a contractor. Apprehensive about the mortgage process? Your agent can put you in touch with a trusted mortgage specialist. And what about all the legal stuff that comes along with selling a property and transferring title? Agents have a lawyer they can recommend to you.

Trying to find professionals such as these that are both experienced and trusted can be a full-time job. Luckily, that’s a hefty chore that you can strike off your list when you work with a competent real estate agent. Forget about throwing money in incapable hands – the experts you work with will come highly recommended, and maybe even with a discount.

4. They’ll Negotiate More Money on the Sale Price

The art of negotiation comes in really handy at the home selling table. Real estate agents are masters of this skill, and will pull all the stops to help you get the highest dollar for your home. The more money you make on your home, the more money goes into their pocket, so you can be sure that they’ll do their darnedest to squeeze every dollar out of the deal possible.

Whether the strategy is to sightly under-price the home to stimulate a bidding war, or to focus on super-motivated buyers that put up a sizeable deposit and offer a quick closing, agents are there to help put the most money in your pocket. And when it comes to deciding whether or not to accept an offer, counter it, negotiate the closing date, or change the contingencies, your agent is there to navigate these negotiations to get you the best deal.

5. They Save You Time

You’ve heard the saying before – time is money. Well, this phrase doesn’t ring any more true than during the selling process. Those who are inexperienced with the ins and outs of selling a property have no clue about how incredibly tedious and time-consuming it can be. It’s certainly not as simple as slapping up a For Sale sign, throw up a few photos online, allow the heards of buyers to flock, then accept the first offer that comes in.

There’s a lot more to it than that, and it can really suck the time out of your schedule. Who has time to take care of all the back-end stuff that comes along with successfully selling a home? Instead, leave it to a real estate agent to take care of all of that – after all, this is their full-time job, and they’re good at it.

Do yourself a favor – avoid the temptation to go the FSBO route in an effort to “save” some money. If you really want to save yourself some cash, work with an agent. Besides saving you money, real state agents will also save you a ton of hassle and headaches. That alone is well worth enlisting their services.

Is there such thing as having a home that’s too good for its surrounding neighborhood?

Sure, most homeowners want their home to be up-to-date and attractive, and often that means making some changes and improvements to it. But while many projects can have positive effects on the functionality of a home, its visual esthetics, and the overall value of the property, others, on the other hand, are just over-the-top, and can actually have a negative impact on how prospective buyers see your home.

Putting too much money into upgrades that go way beyond what the actual area calls for can easily translate into lost money. 

Before you make any major improvements to your home, make sure your surrounding neighborhood calls for such features. Be smart about how your renovation budget is spent, and the exact types of improvements you plan to make. The value of your home won’t necessarily reflect the amount of work and money you put into expensive and excessive projects.

If you’re planning on staying in your home for the long-haul and are looking to make improvements that suit your needs and will provide you with years of enjoyment, go for it. However, if you’re planning to move over the next three to five years, you might want to think twice about those extravagant updates and additions.

What Does Your Neighborhood Call For?

Before you dump a lot of your hard-earned dollar on a specific project, take a look at the best house on the block. You likely won’t recoup that money by improving at or beyond that level. The odds of your home’s value appreciating to the point that you’ll get back just as much of that investment money are pretty low.

For instance, you will probably have a tough time finding a buyer who will pay the price you want to recoup the money you spent adding a huge pool, outdoor spa, or sunroom to your home if the homes on the street don’t have these types of amenities. Buyer agents aren’t going to encourage their clients to buy the best house in the neighborhood, or a property that sticks out like a sore thumb. Not only that, buyers will be a little intimidated by a home that is clearly the priciest in the area.

Buying the most expensive home on the block will give buyers little wiggle room to add equity to their home, which would become a problem if and when they decide to sell at some point in the future.

If homes in the neighborhood are selling in the $500,000 to $600,000 range, you’ll be hard-pressed to get $750,000 for your home just because you spent an extra $150,000 adding extra-fine features and finishes to it. Don’t expect to recoup that money upon the sale of your home. An over-improved home might impress buyers, but that doesn’t mean they’ll be willing to shell out the big bucks for it.

Overdoing Certain Spaces in the Home

Certain rooms in a home hold a lot of importance when it comes to its overall value, especially kitchens and bathrooms. Renovating and updating these spaces can boost property values, make them more attractive to potential buyers, and command more money come sale time. However, the increase in sale price will hit a cap.

While it’s important to ensure these important rooms are up-to-par, it’s also possible to over-improve them. A $500,000 home warrants a kitchen that reflects this value, just as a million dollar home deserves a kitchen that matches its value. A room that’s completely out of place in a home based on its value won’t do much at resale.

Be Careful With Additions

More square footage in a home tends to increase property value, but how you go about adding such space to your home is an important consideration. Reconfiguring the layout and space that you already have to make it more functional can increase the value. For instance, converting a 2-bedroom home into a 3-bedroom home by moving some walls can add value if the neighborhood calls for 3-bedroom homes. However, if you start making large additions to your home that sacrifice a lot of your yard space, this can have the opposite effect.

While the size of a house is a big factor for buyers, so is the useable size of the yard. It’s not such a good thing when the physical structure takes up far too much space, especially if it’s way off scale compared to other homes on the street.

The Bottom Line

Renovating and upgrading your home is a fantastic idea, especially if it’s starting to get dated and just isn’t working for you and your family. However, before you start taking hammer to nail, make sure you’ve given your project a lot of thought. Even though you have a vision in mind that you know will bring you enjoyment, make sure you’re realistic about the kind of return on investment you’ll get, and whether such improvements are just too much for the neighborhood you are in.