1001 Home Buying And Selling Tips
Lots of money is at stake when homes are bought and sold. Most of the time, homes are people's biggest assets. Real estate broker Mark Nash has written several books on this, his area of expertise.
The latest is a complete guide to selling and purchasing called, appropriately enough, "1001 Tips for Buying and Selling a Home." He dropped by The Early Show Friday to talk about it.
Nash told co-anchor Rene Syler that members of consumer focus groups say they don't go through the process often enough to really understand it, though, they add, they finally do understand the process by the time their transactions close.
But consumers want to be proactive, rather than reactive, in purchases and sales of large assets.
Nash says he designed the book to be a true "how-to," with more than 1,001 numbered tips with related bullet points. Readers, Nash asserts, can pick it up and put it down and independently grasp each tip, without having to read a copy-heavy 500-page book and sift out what's applicable.
You never know which part or parts of the process will cause concern, Nash points out. It could be the beginning, with search for a home, mortgage options, negotiating a contract, or getting a home ready to sell. It could also be near the conclusion, such as how to get organized to move. Or it could be any point in between.
"1001 Tips" is designed to be with the reader from their first thought of buying or selling to the day of closing or escrow, Nash notes.
Among Nash's tips:
Know the role of a real estate agent: The real estate salesperson must be licensed by the individual state to assist members of the public in buying, selling, leasing or managing real property or real estate. It is possible for a salesperson or broker to be licensed to practice real estate, but not be a true realtor, who is a member of the National Association of Realtors.
"They have to abide by a very strict code of ethics," Nash told Syler. If your agent is a member of the National Association of Realtors, you have more recourse if you feel the agent didn't perform properly.
Real estate agents may represent the buyer, seller, or both in a transaction.
A real estate agent with a salesperson's license must practice under the supervision of a real estate broker.
A real estate agent is an independent contractor for the broker. The license of the real estate agent is held by the broker.
All agents have a fiduciary responsibility (a position of trust and confidence) to their clients.
According to Nash, one of the biggest mistakes buyers make is walking into an open house, where the selling agent or hosting agent is, and simply say they want to buy the house. Nash said they never ask the agent questions such as:
Buyers, Nash suggests, should find a buyer's agent who will have their best interests in mind during the transaction.
Know what to inspect and what a home inspection involves: An examination by a qualified professional of the exterior and interior of residential property, including the grounds, the structure, and the mechanical systems, will reveal whether anything isn't up to code. It should also uncover structural defects, broken or obsolete components, and damage due to water, wear and tear, and other conditions. The American Association of Home Inspectors (ASHI) can provide referrals of members in all 50 states.
The examination should be summarized in a home inspection report. The report can be submitted to the property seller with requests for repairs or replacements. This inspection is a buyer's opportunity to become familiar with all the technical features of the home.
Avoid the mistakes people make when they sell their own homes: For instance, overpricing a home. It diminishes new inventory excitement and leads to potential appraisal issues and, frequently, longer market times.
"The first two weeks on the market are the most important," Nash observes, "and you want it to be priced right, so when it's new and fresh, buyers who've been looking will know if it's priced right, and if it's (new to the market) and priced right," they're more likely to make an offer.
Not being available to show the property is another self-seller pitfall, as well as not devoting the time to set up and confirm appointments to show the home, sometimes on short notice.
Another one: not devoting enough money to marketing. Buyers can't buy your home if they don't know it's for sale. Include yard signs, Internet exposure, print ads and brochures as part of your marketing campaign.
Still another: failing to properly prepare a home for market. Take an inventory, room-by-room. View your home from a buyer's perspective. Invite friends or family over for a constructive evaluation. Attend others' open houses to gather ideas. Evaluate "curb appeal."
Establish your parameters for your new home (set short and long-term goals):
Some of the factors to consider:
- Lifestyle: Determine if you define who you are by where you live.
- Schools: Recognize that the quality and location of your children's schools could drive your home selection.
- Investment: Are you looking for appreciation or rental income?
- Resale: Will buyers of your home at resale be attracted to it and motivated to make it their home? First homes won't always be the "dream home." Will your dream home provide a platform to move up in the housing market?
- Age and condition: Do you want a brand new home or are you willing to repair, renovate and update your home?
Exclusions can become a deal killer if you don't plan in advance on how to handle them.
Understand that a fixture is any item permanently attached to the property.
Personal property is defined as items that are easily removed and not permanently attached to property.
Research what is customary in your area to include or exclude in the sale of a property.
The rule of thumb is to have no more than three exclusions, but less is more.
List excluded items on listing sheets and contracts to purchase.
At the end of the book, Nash provides helpful documents, such as a home purchase worksheet, professional agent profile, school comparison chart, basic home inspection, and final walk-through worksheet.