5 Ways to Lose in Real Estate this Summer

The summer brings in the big push of real estate especially as people buy and sell more homes then the colder months in the midwest.  Its a lot of fun for us in the industry and for many it can be the best time to put their house on the market or begin to look for their next home.  It can also be a really wild and crazy time to be in the market and there are just as many ways to lose in real estate during the summer selling spree, so take some time and be prepared for what may be the largest transaction in your life.

  1.  Overpricing – We all want to make the most money and if the neighbor was paid X last year, why would mine not be worth more correct?  Wrong.  At some point you hit the tipping point and out price yourself from reasonable buyers.  People will always pay up for circumstances and opportunity but as a general sale in the midwest, we still have limitations on pricing.  List your home at a fair price and ask your listing agent to provide good and recent comparables.
  2. Overpaying – We get excited to buy and we become anxious to make a decision but it can also lead to making a bad decisions.  While I do not believe a home should be a windfall investment, it still needs to be a responsible purchase.  Overpaying for a house can cause a problem with financing, insurance and worst the ability to resell down the road.  Pay what it takes but don’t over pay in a low inventory market.  There will always be another house and rushing into a bad purchase can cause years of frustration and many lost dollars.
  3. Sell – Investors buy right and sell at the top of market.  If your goal is to make the most money and find a good deal then you need to sell now and wait.  I am a big fan of selling your current home for the most money in a hot market, moving into temporary housing like an apartment or rental and then waiting for a sweet deal to pop up.  Yes you become a renter (which is great to me) but it affords you the flexibility of making a better decision after smartly selling at the best time.  Do the math and if this is an option its the best way to play the “buy right/sell high” game.
  4. Be prepared – The busy buying season is no time to be casually looking at homes.  You are going to find one you like and want to buy it so being prepared is a must.  Having a lender on call with a pre approval in hand will save you time and keep you competitive.   Have already chosen and spoken to an inspector so that when the time comes you have an idea of when you can have the property looked at and write a stronger offer.  Contingencies sales don’t exist so don’t count on it.  Have a property listed and an activity report to share with any seller and ideally be sold or under contract already.  No seller is ever encouraged to enter into a contract with a buyer that still needs to start that process.
  5. Wrong Realtor – Hire a Realtor you trust and is not desperate for a sale.  I am all for using a new agent but talk to them and explain to them that you may not be moving as quickly as their checking account would prefer.  If you take that pressure off, they typically have a better way to represent you.  And using an agent that you don’t trust or is not necessarily looking out for the buyers and sellers is a huge no no.  The agent can control so much along the way and you do not need to worry about making a decision based on someone else’s needs.  There are a few slippery agents out there and you need to avoid them professionally at all costs.

Curt has been in the Indianapolis Real Estate business for over 10 years and spent his first years learning all aspects of commercial management and brokerage.  He has had great success in managing existing commercial projects and new retail and office developments.  Curt specializes in building owner representation and purchases in the Westfield Indiana market as well throughout the Indianapolis Metro area.  Curt is passionate about growing the local Westfield community and in his free time  volunteers with Westfield Youth Assistance and raising 2 children with his wife Jennifer.