Las Vegas Real Estate News
Don't Blunder Into The Home Market
February 26, 2008 - Forbes.com
Buying and selling real estate in today's tumultuous, highly demanding marketplace is not for the faint of heart. While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are a number of basic pitfalls that buyers and sellers should avoid, lest they commence their real estate venture on shaky ground.
First and foremost, whether you are buying or selling, do your homework before hiring a real estate agent, as not all are created equal. Interview at least three real estate professionals and come prepared with questions. How are their track records? How do they market listings? What services do they provide as a buyer's agent that their competitors don't? Due diligence is key to finding a representative prepared to work not just hard but smart on your behalf, and who will be available to answer your questions along the way.
For sellers it's also wise to have listing paperwork and disclosures completed at least one week before your house officially goes on the market. This way your agent can have photos complete, fliers ready and Internet ads up and running on the first day your listing hits the market. Also be sure to get a copy of your home's Multiple Listing Service listing from your agent so you can avoid a costly error. It's entirely possible a bedroom was missed or something was overlooked. Work as a team to make sure your home's listing is accurate--and the description enticing.
Those whose homes have languished on the market for longer than anticipated should start thinking outside the box and contemplate making a reverse offer. Consider the buyer who has been back for a second or third look but hasn't pulled the trigger. Make an offer. Yes, you, the seller, should put something in writing and submit it to the buyer's agent. This will create an opportunity for the agent to sit down with the buyer and potentially help close the deal.
House still for sale four weeks later? It's time to take a hard look at the price. Your greatest number of showings will happen within the first three to four weeks of a listing hitting the market. This is because there is already a pool of qualified buyers waiting for new homes to come on the market that might match their criteria. So, if you've had no bites by week four, it's time to increase your exposure by making a price adjustment. Repeat this process again every four weeks or sooner, depending on how urgent or motivated your situation is.
For buyers, if you intend to secure a mortgage loan, you'll want to get pre-qualified, which determines how much you can afford. This will allow you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. If you plan to pay for the transaction in cash, you'll then need to provide advance proof of available funds.
Buyers should spend the time shopping for the most favorable rates and terms. A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that's $12,600.
Once the finances are in order, there are many other things to consider when buying a home, including its resale potential. For example, in neighborhoods with attached three-car garages, a two-car or detached garage may adversely affect the home-sale and future value. Floor plans, the number of bedrooms, location and proximity to noisy streets are other factors that can prove problematic for a future sale.
The bottom line? Take a macro approach to evaluating homes before signing the dotted line.
