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.
