Real Estate Investing

Three of my favorite agents from my office are standing here right now brainstorming about real estate.  So I’ve asked each one to give their best piece of advice to a buyer and to a seller.

BUYER ADVICE

Karmen:  “Just because a lender says you can qualify for a certain amount of money, it doesn’t mean you can afford it.”

Butch agreed, “Right.  If you, for example, get a $200,000 loan, you may not want the monthly note of a $200,000 loan in your budget.  You have to remember the taxes and insurance that are added to it, not to mention the PMI and other charges.”

Butch:  “If you qualify for a loan in this market, this is the first time in 35 years where the availability of homes versus the low interest rate has been together.  This is a perfect time to buy.  Yes, I understand the gas dilemma and all that, but if you can get past that, now is the time to buy in all markets.”

Celia: “People need to understand the difference between prequalified and preapproved.”

Butch:  “Prequalified says you should get ‘this’ amount based on your income.  Preapproved means you’ve done the paperwork - full application - and done the credit checks to get the ‘Yes, we can definitely give you this money.’”

Celia:  “The only thing left is to go through the underwriters.”

Celia:  “Don’t expect to get foreclosures for cheaper than they’re listed.”

Butch, “Don’t forget the amount of extra paperwork required, plus the delay in time of even getting an answer from the lender.  Many times, this can take two to three months or even longer  just to get an answer, whether you get the house or not.  The problem with foreclosures is you can’t talk to anyone at the bank holding the note.  This is very frustrating to us a as realtors, whether we’re representing the seller or the buyer.”

Karmen, “It is frustrating! It’s frustrating!  It’s frustrating!”

SELLER ADVICE

Celia:  “Make sure your house is ready to sell.  Fresh paint, clean carpets, clean floors, clutter put away.  Remove unnecessary furniture.”

Butch:  “Have your home show-ready.  Definitely get rid of the clutter.  Remember the first impression is what will sell your home.  If a buyer comes into your home and finds something they don’t like, they are out of there.”

Butch:  “Listen to the advice of your realtor.  We are trained to help you price your home in a competitive market, as well as staging and the entire process of selling.  Don’t look for pie in the sky.”

Celia:  “Sellers needs to be sure they can afford to sell.”

Karmen:  “Be realistic in your expectations when you sell.  If you’ve lived in your house for less than five years and you haven’t borrowed money against your house you should be happy if you break even.”

Butch:  “You should look at it like you’ve gotten free rent for those years.”

Karmen:  “Find a way to make your house stand out.  Either price, exceptionally clean, or something extra that will make your house stand out like new hardwoods or new light fixtures.  It’s the little things that make a difference.”

Butch: “You’re competing with every house for sale in the neighborhood.”

Celia:  “Curb appeal is definitely a plus.”

Karmen: “Selling your house involves work.  You need plan to work hard to get it ready and spend some money.”

Butch:  “It has to be show-ready 24 hours a day.”

Karmen: “Don’t smoke in your house if you’re trying to sell!”

Butch:  “And get rid of pet odors!”

Celia:  “Replace the carpet if needed to get rid of odors.”

Thanks, my friends!  Great advice!

Photo from Bill Kennedy.