Buying
and Selling Real Estate: Ten Tips
by: Marshall Colt
Real estate is changing hands in ways that make
headlines. Whether you’re a buyer or seller, here are
some tips to help you make the best deal.
BUYING:
So you want to buy a
house? In this market? Are you nuts? Actually, it
depends on where you are. You could be very shrewd right
now if you pick the right spot, the right pricing trend
and bid aggressively. It requires homework, homework,
homework.
Example: My wife scoured
a market, screening 90+ houses. We eventually found a
fixer-upper for $162K. We offered $160K the same morning
it was listed. They took it on a handshake. One year
later—with no improvements!—we sold it for $208K. For
those of you without a calculator, that’s a 30% return
on the investment.
And you can do it, too.
Here’s how:
1. Pick a growing area.
This is essential. Yes, it’s hard to predict economic
cycles and which metropolitan areas are going to prosper
over the next year or so. However, if you read the
business pages regularly, you’ll have a much better idea
of where to buy/invest.
2. Learn the market.
This is also essential. You’ve got to know what’s out
there, what houses are going for and how to spot a
bargain from the overpriced. When you find your bargain,
you probably won’t have much time before the competition
gets wind of it. So you must be ready to make a solid
offer right away.
3. Make your offer
contingent upon a thorough inspection. There’s nothing
worse than buying something with plenty of
infrastructure problems. They’ll cost you time, money
and aspirin. If you discover only a few problems, try to
get the seller to lower the price to counterbalance the
flaws in the property. They often will.
4. Finally, recognize
that you will not likely land your first prospect.
Therefore, be patient and be prepared to keep looking
until you find the right house that makes good economic
sense for you to purchase.
Follow the above four
tips and you’ll do better with your property investment.
SELLING:
What to get the best
price for your home? Just follow these six tips:
1. Everything (usually)
looks better in brighter light. So let the sun shine in.
Open curtains and blinds and turn on lights in all the
rooms.
2. Fix up those little
things. Oil or WD-40 those squeaky door and window
hinges. Tighten any loose door handles. Replace broken
shutters, fix leaky faucets, etc.
3. Deodorize! Nothing
turns off a potential buyer than a “funny” or unpleasant
smell. You’ve heard of the bake bread or cookies in the
oven trick…it’s a lot easier to just use plug in
deodorizers.
4. One of the easiest
things to do is clean the place. Clean in the corners,
clean the cabinets, re-grout the kitchen and bathroom
sinks, tubs, etc. Wash the baseboards, make the place
shine, especially in the entrance way.
5. Get rid of the
clutter! Buyers need to envision the home as they would
live in it. Anything interfering with that vision works
against you in selling your home to them. So divide all
your possessions into three groups:
a) things you really
need to live in the house,
b) things you don’t
really need but want to take with you to your next home,
and
c) things you don’t want
to take with you and should really toss.
Now, put those things
your want to take with you to your next home in a rental
storage facility. Hold a garage sale and/or donate
everything else to charity. That’ll leave your home
looking elegantly simple…the best way to present it to
potential buyers.
6. Paint, paint, paint.
Virtually every home has some areas that could use a
fresh coat of paint. It is one of the most important
(i.e., best and inexpensive) investment you can make is
maximizing your sale price. Make sure you patch cracks
and peeling paint first, though.
Follow the above six
tips and you’ll sell your home faster and for a better
price that if you didn’t.
