Real Estate Tips, Tricks and Secrets

Whether you are a home buyer, seller or renter (tenant) it pays to know the right things to do and when and how to do them.  Some call this "inside information"; To others it's the "tips" or "secrets".  We just call it knowing the facts about real estate buying and selling.

Generally, these tips and secrets are universal, but some may apply just to the Houston market.  Blakeman Properties is one of Houston's leading independent Realtors® and offers you this information for free - No Tricks!

Houston Home Buying - Top Ten Tips & Guide

The Top Ten Tips address the most critical and most often misunderstood home buying issues.

1. Commit to the Process

· Buying a home is the largest and most important purchase in the lives of most people. However, far too many want to treat it like shopping for new clothes - drop by the mall on your lunch hour, get excited about the suit in the window, put it on your credit card. What may work for your wardrobe is often a disaster with a home purchase.
· The savvy home buyer makes a conscious decision and commitment to buy, plans carefully and deals with financing issues first, allocates adequate time off from work to look, keeps emotions in check, listens to the advice of a professional.

2. Hire a Buyer's Agent to Represent You

· Just a few years ago there was only one type of real estate professional serving the home buying public. They were Seller's Agents or Sub-Agents of the Seller's Agent. Although they worked intimately with the home buyer they were bound by contract to do everything possible to protect the seller and obtain the most favorable price and terms for the seller. The problem was that most buyers were unaware of this situation - they thought the agent was working for them.
· Today, home buyers can and should be represented by their own agent - A Buyer's Agent - who is bound by contract to do everything possible to protect the buyer's interests. Only with a Buyer's Agent can the buyer be assured of getting the best service and counseling thorough out the buying process. To be represented by a Buyer's Agent normally requires a written agreement.

3. Get Pre-Approved For Financing

· When a home seller receives an offer to purchase there are two primary factors that are always considered immediately - How much is the offer; and, does the buyer really have the money? After all, a seller has no way to know who you are or how reliable you may be. In every case a seller is more willing to negotiate price and/or other terms if the availability of the money is assured.
· When a home buyer makes the effort up front to get pre-approved for financing it does two things - Establishes exactly how much home you can afford; and, puts you in the strongest possible negotiating position with all home sellers.

 4. Choose the Neighborhood

· After arranging financing, the infamous "location" issue is the next thing a buyer should consider as the home buying process is begun. The fact that a home is a "good buy" or is "so beautiful" can never cure the ills of being in an undesirable area. Most buyers should consider neighborhood factors like schools, distance from work, distance to shopping or hospitals, general appearance and relative affordability before running out to start "looking inside" various homes for sale.  The worst thing a buyer can do is "Fall in Love" with a home in an unsuitable or unaffordable area.

5. Be Realistic About Needs and Wants

· There is no reason that a home search should take more than a week  in a normal market. But, everyone has heard about someone who looked at over 500 homes during the course of 18 months utilizing the services of 5 RealtorsÒ before finally finding that "just right" home. This only happens when the buyer has not come to terms with what they really need, want and can afford to buy.
· Everyone needs and wants enough bedrooms and bathrooms to serve their family adequately. Everyone needs and wants a nice kitchen, comfortable living area, and sufficient storage. Everyone would like the home to be in relatively good condition. But, the buyer who just can't live without the three car garage, the brand new A/C & heating system, and the special oversized game room is usually in for great disappointment.

6. Make the Right Offer

· Once the Buyer's Agent is hired, loan is approved, neighborhood is determined and the home is selected an offer has to be made. It needs to be the right offer. To be successful the buyer should listen closely to the advice of the Buyer's Agent.
· A rule of thumb is that a too low first offer usually results in the buyer either losing the home or ultimately paying more than he should for the home. Why? Among other factors, a low ball offer puts the seller on the defensive and contaminates the environment needed to result in a Win-Win negotiation. An offer that is too high can also send the wrong signal to the seller, especially when the home was just recently put on the market. A too high offer may not only cost the buyer money but could cause the seller to be less agreeable with other terms and conditions.

7. Get a Home Inspection

· The home looks clean and well maintained so there is no need to check further. Wrong! Most home buyers, even those who have bought and sold many times, are not experts in construction issues, building codes, safety issues and many other items. Home inspectors, usually guided by state regulations, are able to find things of concern that the buyer would otherwise overlook. Since this is likely to be the largest purchase of your lifetime the few hundred dollars spend on a home inspection is always money well spent.
· Does this mean that if an inspector finds things in need of repair that the seller will automatically fix them? No, it does not. Depending upon the specific issues and the terms of the sales contract the buyer may be able to have some things fixed by the seller. Each situation if different and the buyer should look to his Buyer's Agent for advice on the types of things a seller normally can be expected to repair given the sales contract terms and market conditions at the time. 

8. Avoid Midstream Changes

· Nothing is ever constant except change. But, the wise home buyer avoids non-essential changes if at all possible - particularly when it comes to their financial picture.
· A buyer who will utilize mortgage financing should have mortgage pre approval before starting the search process. This pre approval is always subject to financial issues remaining unchanged until closing. Buying a new car, loaning money to a relative, splurging on a vacation, missing a credit card payment, etc., all can be factors that impact the pre approval and jeopardize the buyer's ability to finalize a mortgage loan for the amount desired.
· Similarly, a cash buyer who needs to sell stocks, make IRA withdrawals or otherwise move funds around should do so well before closing and preferably before the search process begins. An unexpected delay of days or weeks while a retirement plan administrator processes your withdrawal could make the difference between buying the home you want or watching someone else buy it.

9. Get a Survey and Title Insurance

· Real estate purchases are among the most complex business transactions that most people ever undertake. There are a multitude of factors to be considered and many things that can go wrong. However, there is no reason to not receive clear title and a property free from encroachments.
· The Survey is a verification of property boundary lines and should display any encroachments or easements. For example, assume you are a buying a home in an older subdivision where many homeowners have added decks, garages and so forth over the years. It is possible that one of your neighbors' additions was not built within his property boundaries but is situated partly on the lot you are purchasing. A survey should reveal this problem before you become the owner.
· Title Insurance is a guarantee that when you purchase real estate there is no one else with any claim to your property. Should someone claim a prior ownership interest subsequent to your purchase of the property the title insurance company is obligated to protect your ownership interest. An alternative to title insurance is something called an Abstract of Title which is a condensed history of all transactions affecting a particular tract of land. Consult your attorney if you are considering an Abstract of Title.

10. Be Pro-Active

This may seem to be a given to most people but it is truly amazing how many home buyers think that all they have to do is sign the contract and everything else will magically occur without their participation. The fact is that there are many details that only the buyer can resolve to assure a timely, trouble free purchase and closing. The Buyer's Agent will counsel and assist throughout the process but the buyer will have the best overall result by being fully aware of all aspects of the process and asking as many questions as possible along the way. 

Houston Home Selling - Top Ten Tips & Guide

The Top Ten Tips for Home Selling are a guide to the most critical and most often misunderstood issues about home sales.

1.  Commit to the Process

· The smart home seller makes a conscious decision and commitment to sell, plans carefully what to do when the sale occurs, chooses the timing carefully when possible, prices the home in accordance with recent comparable sales, keeps emotions in check and out of the way, listens to the advice of and lists the home with a professional and allocates adequate time off from work to handle all of the above.
· In any market there are homes that go up for sale and just don't sell. Believe it or not, the number of homes not selling (called expired listings in the trade) can be as high as 40-60%. Why? The reason is simple - commitment on behalf of the seller. Too often homes are listed for sale to "test the market", or to "see if we can get our price". At other times, the homes are just not in condition to be sold - at any price. Seller commitment, not to a listing, but to a sale, is critical.

2. Hire a Seller's Agent (Listing Agent) to Represent You

· Industry estimates vary but it is generally thought that over 90% of homes are sold with the assistance of a real estate agent. Unless you have significant home selling experience and current knowledge of applicable laws, regulations and market conditions it just makes good sense to hire a professional. After all, you would go to the Dentist for a toothache and visit an Attorney for your will. Why would you try a home remedy for a significant financial transaction like selling real estate?
· Most home buyers today are choosing to be represented in the transaction by a Buyer's Agent. This means that they are choosing to have someone on their side in the hope that it keeps the playing field level or perhaps tilts it in their direction. The prudent home seller will also choose to obtain professional assistance and representation.

3. Clean Up / Fix Up / Inspect

· When selling a car or boat most people will fix it up, clean it up, wax and polish it, buy new tires for it, etc., etc. However, those same people often set out to sell their home with the idea that they should just be able to put a sign in their front yard and get ready to move. On the other hand, people that buy homes want a clean well kept place in which to live. They don't welcome taking on the task of correcting someone else's problems and neglect.
· It also pays the prudent home seller to arrange for an inspection prior to listing the home for sale. A licensed home inspector will turn up many issues which merit correction in the areas of structural integrity, repair & maintenance or safety. Since the home buyer will be sure to have his own inspection done prior to finalizing the deal it just makes good sense to find out these things early and take care of them up front. The result is a faster sale for more money.

4. Price It Right - The First Time

· If the first rule of real estate is location the second rule is price. One of the principle reasons homes do not sell in a reasonable period of time is because they are priced incorrectly - usually too high. Problem is, after a home has been on the market for a while without selling buyers become wary. . . "it has been for sale forever, there must be something wrong with it."
· "But we can always come down on the price" say the sellers. Yes, you can - and should. The problem is that homes that are priced too high to begin with usually don't receive a price reduction soon enough and eventually sell for less than they would have had they been priced properly to begin with. Solution: Hire an honest, competent Seller's Broker and follow his advice on pricing.

5. Time It Right

· Granted, not everyone has the luxury of being able to plan their move around the "selling season" and there is no doubt that homes are sold all year long. Problem is, too often discretionary sellers wait to get motivated until the season has passed them by. Then they spend time and effort getting the home fixed up, price it at (or above) the level where homes were selling during the "active time of year", put it on the market during the worst time of year and - wait, wait, wait.
· If the timing cannot be controlled, other things can. The astute seller will seek counsel with a trusted Seller's Broker as to market conditions and timing - and then act accordingly.

6. Market It Right

· It just makes common sense. If you want to sell a property it must be available to be seen by the prospective buyers - when they want to see it. Often this means short notice on showings. It also means that all agents need to have the easiest access possible to get their buyers in the door. In most markets this means a key box on the property.
· There is a general belief that advertising is the principle key in obtaining showings of homes for sale. Advertising is needed. In fact, the most effective advertisement is the professional For Sale sign in the yard. But, what is not well known, is that the next best advertising is not as readily seen by the general public. It is the Multiple Listing System. MLS is seen by those who actually sell real estate, RealtorsÒ / brokers / agents. Unless MLS does not exist in a given market the seller should depend on his Seller's Broker to properly display the home in MLS.
· In today's market it is also critical to use the latest technology. This means that you must have Internet exposure and a Realtor® willing and able to manage your listing and sale accordingly.

7. Know Where You Are Going

· If you are selling it usually means that you will be moving. Not only will you be moving but the buyers will want to move in once the transaction is closed. Sounds easy enough. Problem is that sometimes sellers think that they can sell but there should be no urgency on their move out. Wrong. Buyers almost always want Possession at Closing and usually expect to close within in a reasonable period of time following an agreed Contract to Purchase - typically 30 to 45 days.
· There are many options for the seller, the easiest of which is already having another home purchased. If this is not feasible there are other possibilities to be explored but this needs to be done prior to beginning the selling process. An experienced Listing Agent can assist the home seller in evaluating these options and can usually represent the seller as a Buyer's Agent for the purchase or rental of the new property. 

8. Insist on Pre Approved Buyers Only

· When a home seller receives an offer to purchase there should be one primary factor that is always considered first - and it is not price. This factor is whether or not the buyer is financially able to conclude the transaction. As a seller you have limited knowledge about who the buyer is or how reliable they may be. However, you do have the ability to insist that they demonstrate their financial ability.
· Many buyers require financing when they make a home purchase and the financing approval process is quite intense. When a home buyer has made the effort up front to get pre-approved a statement from the prospective lender regarding the buyer's pre-approval status can be provided.

9. Negotiate Smart

· So, you did most everything right and now have a written purchase offer in hand. What now? A lot depends on the price, terms and conditions of the offer and the strength of the buyer. There is no pat formula as to how to respond to an offer but some general negotiating principles usually apply.
· Try to understand the buyer's needs and reasoning. For example: Is the offer low because the buyer thinks excessive repairs will be needed? If so, does the buyer have a valid point? Now's the time to get realistic if you haven't already.
· Try to respond to the offer so that a Win/Win agreement can be reached. For example: It might be foolish in a strong seller's market to be relentless in extracting every possible dollar and concession from the buyer in the negotiation. After all, without this buyer there might not be a sale at all and the worst thing that can happen is "buyer's remorse" at the last minute and refusal to close.
· Sometimes an offer is just not acceptable or even worthy of a response and sometimes multiple offers are received at the same time. Your agent sees a lot more offers than you do and should be a key player in helping you make the right decisions in handling negotiations.

10. Be Pro-Active

· This may seem to be a given to most people but it is truly amazing how many home sellers think that all they have to do is sign the contract and everything else will magically occur without their participation. The fact is that there are many details that only the seller can resolve to assure a timely, trouble free sale and closing. The Seller's agent will counsel and assist throughout the process but the seller will have the best overall result by being fully aware of all aspects of the process and asking as many questions as possible along the way.

Houston Home Renting - Top Ten Tips & Guide

Many factors must work together to create a successful home renting experience.  The Top Ten Tips address those most critical and most often overlooked. 

1. Commit to the Process

· Renting a home, town home or condo is a major undertaking. However, many want to treat it like shopping for new clothes - drop by the mall on your lunch hour, get excited about the suit in the window, put it on your credit card. What may work for your wardrobe is often a disaster when leasing a home.
· The smart tenant makes a conscious decision and commitment to move, plans carefully, deals with credit issues first, allocates adequate time off from work to look, keeps emotions in check, and listens to the advice of a professional.

2. Hire a Tenant's Agent to Represent You

· Just a few years ago there was only one type of real estate professional serving the general public. They were Landlord's Agents or Sub-Agents of the Landlord's Agent. Although they worked intimately with the prospective tenant they were bound by contract to do everything possible to protect the landlord and obtain the most favorable lease rate and terms for the him.
· Today, tenants can and should be represented by their own agent - A Tenant's Agent - who is bound by contract to do everything possible to protect the Tenant's interests. Only with a Tenant's Agent can the tenant be assured of getting the best service and counseling thorough out the leasing process. To be represented by a Tenant's Agent requires a written agreement.

3. Check Your Credit - First

· When a landlord receives an offer to rent there is one primary factor that is always considered immediately - Does the tenant have good credit?  After all, a landlord has no other way to know how reliable you may be. In every case a landlord will be more willing to negotiate price and/or other terms if the prospective tenant's credit is OK.
· When prospective tenants make the effort up front to get credit problems resolved it puts them in the strongest possible negotiating position with all landlords.

4. Choose the Neighborhood

· After resolving the credit requirement, the infamous "location" issue is the next thing that should be considered as the home search process is begun. Most people should decide on neighborhood factors like schools, distance from work, distance to shopping or hospitals, general appearance and relative affordability before running out to start "looking inside" various homes for lease.  The worst thing you can do is "Fall in Love" with a home in an unsuitable or unaffordable area.

5. Be Realistic About Needs and Wants

· There is no reason that a rental home search should take more than a few days in a normal market. But, everyone has heard about someone who looked at over 100 homes during the course of 6 months utilizing the services of 3 RealtorsÒ before finally finding that "just right" home. This only happens when the tenant has not come to terms with what they really need, want and can afford to lease.
· Everyone needs and wants enough bedrooms and bathrooms to serve their family adequately. Everyone needs and wants a nice kitchen, comfortable living area, and sufficient storage. Everyone would like the home to be in relatively good condition. But, the prospective tenant who just can't live without the three car garage, the brand new carpet and appliances, and the right to keep 3 hunting dogs in the yard is usually in for great disappointment.

6. Make the Right Offer

· Once credit is verified, the Tenant's Agent is hired, the neighborhood is determined and the home is selected a lease offer has to be made. It needs to be the right offer. To be successful one should listen closely to the advice of the Tenant's Agent.
· A rule of thumb is that Landlords usually determine the basic conditions of the lease and the monthly rent.  These conditions are spelled out in the listing information available in MLS or from the Landlord's Agent. Monthly rent and conditions of the lease such as security deposit, length of lease, penalties for late payment of rent, etc. are usually not too negotiable.
· Other things may be more easily attained. For example, someone with excellent credit and rental history might be able to get the Landlord to do some extra "fixing up" or provide needed appliances (refrigerator or washer/dryer) for a slightly increased rent or longer length of lease.

7. Be Flexible Regarding Pets

· The home is clean and well maintained, the rent is within your budget, the location is great and you would just love to live there with your five cats. Guess what, the landlord does not allow pets.  What to do?
· There is an obvious reason that many landlords do not allow pets.  Pet owners often allow their pets to destroy or cause serious damage to the property.  In the landlord's eyes pets are a problem waiting to happen.
· Solutions might include:  Increased security deposit; A "pet interview" by the landlord Reduce the number of pets to just one.  Ask your Tenant's Agent what to do - BEFORE YOU START LOOKING.

8. Get the Timing Right

· Nothing is worse than letting everything go till the last minute.  If your present lease is up at the end of July, don't wait till mid June to start cleaning up your credit and saving up your money for the security deposit.
· By contrast, a landlord probably won't want to commit to a lease with you in January so that you can move in smoothly at the end of June. He won't want to hold the home vacant waiting for you unless he is compensated in some way.

9. Get Realistic About Roommates

· It sounds great.  Your new boyfriend or girlfriend and you want to move in together into a larger more expensive home. Between the two of you you can easily pay the higher rent so cost is no object.
· The fact is that both of you will be asked to sign the lease.  Should one or the other elect to move out early the remaining tenant will be expected to continue paying the full rent till the end of the lease.

10. Be Pro-Active