The average person buys and sells just a few houses in his or her lifetime, and often there are years between transactions. It’s easy to forget the dos and don’ts of buying and sell real estate during what is often a long and complicated process.
Here are a couple of dos and don’ts for home buyers and sellers.
Home buyer dos and don’ts
Do ask an experienced Realtor to recommend a local lender and stick with that lender.
“Don’t jump around from lender to lender trying to get the best deal. A good real estate agent and lender can get the best rates most of the time,” Mindy Wardlaw, president of the Northwest Louisiana Realtor’s Association and a broker with Diamond Realty & Associates, said. “And using someone local enables you to talk to them face to face should a problem arise.”
Do ask your lender about special programs for teachers, police and fire officers as well as rural development loans (popular in major developments in North Bossier) that help with a down payment.
Do ask your Realtor to pull prices of homes that have sold so that you have good comparables when making an offer.
Don’t believe everything you hear.
Banks often have great programs to reduce costs, but you can’t trust all of them.
“Stick with the local banks and mortgage companies your Realtor recommends,” Wardlaw said.
Do have financial documentation in place prior to making an offer on a property, said Joyce Jeffrey, owner and broker with Summit Executive Realty in Bossier City.
“Have documentation such a line of credit, cash in the bank or a pre-approval letter from a lender showing the ability to purchase at a given price point.”
Do be conservative. Scott Friestad, broker/owner of Friestad Realty said, “I would advise a buyer to save, live well below their means and put at least 20 percent down so they do not need mortgage insurance. And buy less house than you can afford because you don’t know what the future holds.”
Do proceed with caution if interested in purchasing foreclosed homes.
“If you like fixing up homes and can qualify for a renovation loan, you might want to consider a foreclosed home. But if you are listening to the news and think you can buy one for 50 percent of its real value then you will be real disappointed,” Friestad said.
“Houses sell based on condition, location and floor plan. If it needs work, it will be discounted.”
Do your due diligence when considering the purchase of a home. Jim Roberts, retired Shreveport Police Department’s Chief of Police who is now a real estate agent with Coldwell Banker, warns buyers to investigate crime statistics in potential neighborhoods, visit neighbors to get a feel for the area and check with the Louisiana State Police State Sex Offender and Child Predator Registry to ensure you aren’t buying a house next to a predator. “Leave no stone unturned when considering the purchase of a home,” he said.
Home sellers dos and don’ts
Do use a Realtor to market your home. “With all the inventory on the market, it’s even more difficult for those trying to sell their homes themselves,” Wardlaw said.
Do have your home ready for a potential buyer before putting it on the market. “Curb appeal is crucial,” Jeffreys said. “Other perks such as a freshly painted front door, spruced up landscaping, an inviting entry, uncluttered closets and a ‘fresh’ smell can yield big dividends.”
Do stage your home, making sure that it looks fantastic, is priced right, and updated as much as possible.
“This helps it compete with other houses,” Wardlaw said. “And it’s what buyers want.”
Don’t leave your valuables unprotected while your home is on the market warns Roberts. “It is often difficult to supervise the movement of potential buyers while showing property,” he said.
“Lock up or hide all valuables. Never leave prescription medications in plain view. And never show your listed home to a stranger who stops because of the ‘for sale’ sign in your yard. Refer them to the agent for screening as many criminals will attempt to case your home or commit a violent rime while inside if the owner is alone. Also, remove or pack away family photos to protect your family’s identity.”
–Jeff Slaughter
