Work Smarter, Not Harder: Part 2

     Whether you’re going for a conventional loan or FHA, it costs time and money to find the perfect house.  Last week I shared a tip on how to spot asbestos siding before spending money on an inspection.  This week I’ll share a few more things to look for and what it could mean for your contract before shelling out a penny.

     Lead-based paint is found in almost all older homes and may be present in any home built before 1978.  It peels in a very specific way, with vertical and horizontal peeling, creating peeling “squares.”  In most cases it will be painted over, which is a perfectly safe and legitimate way to mitigate the problem.  In an “as is” sale, such as a foreclosure, any exposed lead-based paint will not pass inspection.

     Any peeling paint or wood rot on the exterior of the home won't pass an inspection, either.  If it is very minimal, it may or may not be noted on the inspection, but is an inexpensive fix.  Repairing the peeling paint or wood rot on the exterior will be a requirement for any FHA loan.

          Seek out the hot water heater in the house.  Before you move into the home, purchase a pan and place it under to see if there are any leaks.  This is especially important if it’s located on an upper floor because any leaks will tear through the ceiling quickly.  Check for water damage indicated by dark spots showing on the floor or ceiling.

     Some of these things may seem like plain common sense, but as a potential buyer, it’s hard not to get excited when looking at a home.  Focus on the practical first, then start imagining your life within those walls once they meet your (and your bank’s) criteria.  

      

Pre-Inspection Home Dissection

    When I first became a real estate agent, I would write offers left and right— hungry to get my clients the house they wanted.  But with experience I learned how to work smarter, not harder.  The first year I was an agent I would say that I wrote offers on about 8 to 10 houses that got released because of the inspection findings.  It was that year I put together a guide on things to look for when walking through a home.  There are always going to be issues you can’t catch on your own, perhaps under the house, that only an inspector can find.  But before writing a contract, before getting an inspection, before wasting anyone’s time and money, I’ll share a few things to look for starting with asbestos siding.

     It is mostly found in older homes built between the 40s and 60s.  It is very flat siding with vertical ripples running down to wavy edges.  If you see this style of siding it is 100 percent of the time asbestos.  When looking for asbestos in an older home, it’s important to walk all the way around the house.  Often it is covered up with vinyl siding except for say, a screened-in porch or an addition. 

     Before you even make the trip out to see the potential house, check the MLA sheet.  Most of the time it will tell you if it’s asbestos siding, or will at least denote “other."  If you know you qualify for an FHA loan, unless you want to get a very expensive renovation loan, it’s usually best to move on to the next house.  There are ways to remediate the problem if the siding is perfectly intact.   The asbestos siding can be sealed and then covered with vinyl to properly protect it. If any of the siding is broken, it can be very expensive to remove it due to health and environmental implications.

     Another thing to consider is resale value.  If you have a conventional loan and bypass all the requirements of an FHA, when you go to resell, asbestos siding can become an issue.  Even if it’s not a concern of yours at the present moment, it can be one for a potential buyer.

     If you educate yourself on the basics, you can do your own pre-inspection before spending hundreds of dollars to have someone tell you what’s in plain sight.  Next week, I’ll share a few more tips!  

Get Off the Fence, It's Still a Great Time to Buy!

     Mortgage rates went up again last week and this gradual increase is to be expected over the next few months.  However, at an average of 4.18 percent, mortgage rates are still at a historical low.  If you are qualified and looking to stay in a certain area, right now is still a great time to buy!

     The Real Estate industry is one where the supply is limited and demand is always high, especially in larger cities where building opportunities are limited.  When there is more demand than supply, prices go up and long-term growth is inevitable.  

     When considering the rent vs. buy argument, even with rates going up, buying is the better financial decision.  Buying power does diminish when rates go up, so don’t wait for rates to get any higher.  Considering that a 1 percent increase can lose you approximately 10 percent in buying power, waiting to buy can mean missed opportunities.

     Preparation is key for buyers.  Get pre-approval and work with a realtor who specializes in the area you want to buy.  A full-time agent will be on top of new listings and can negotiate things into the contract to get more for your money.   

Seminar Recap: A Little Bit of Effort Goes a Long Way

     I had a wonderful time, as always, at my marketing seminar yesterday morning.  Thank you for all who came, first timers or multiple attendees, it was great seeing you!  For those who couldn’t make it, here’s just a taste of what I went over, so you can use them in your own business practices.

Don’t stall, make the initial contact.  Follow up as soon as you can with a lead.  The faster you reach out the better the return.  

Leave it open, so they can open up.  Always let the client talk first.  You may be able to help them in more ways than they realize.  Even if they’ve emailed you about something specific, when you make the follow up call ask them how you can help and then listen.

Show one house—no matter what.  A lot of other agents, after finding out a client isn’t pre-approved or doesn’t meet criteria deemed “serious,” stop paying attention.  I say, don’t ignore that opportunity.  That client will remember you as someone that helped them when others had turned them away.  You don’t have to go too far and show them all 10 houses they’re interested in.  Tell them to pick their favorite.

Separate yourself from the competition.   Use product knowledge, like what can save them money, their loan options and subsequently what types of properties they qualify for to set you apart.  Customize their experience and let them know you’re looking out for them, not just the sale.  Also, keep client folders and buyer info sheets.  These will help you maintain accurate information that will put that personal touch on interactions with your clients.

These are just some of the things I went over in the seminar yesterday, of course there are more tips in store.  Hopefully this little morsel will get you to come to my next one!  Can’t wait to see you!  Oh, and maybe Darby and I will have another Rap Battle for your pleasure ;p