While we’ve found that public open houses no longer attract many visitors in the New Orleans area, agent open houses are still alive and well attended.  Preparing for the agent open house is no different than preparing for a public one.  As a matter of fact, agents tend to be even more critical of condition than buyers do, so the proper preparation can mean the difference between them bringing a client for a showing or not.  If you can get an agent excited about a home, they will show it again and again.

Recently, I attended an agent open at a house in Algiers.  The floor plan was pretty good and the location is great, but it was obvious that the seller either isn’t really interested in selling or didn’t heed their agent’s advice about pricing, cleaning and de-cluttering the house.

We scope out open houses to know the competition for our listings and to see if a particular home might work for one of our buyers.  Finding a home that is overpriced and dirty and cluttered shouldn’t happen on these tours and we were in and out pretty quickly, making mental notes of what information we would pass on to our own clients.

Here are a few recommendations to prepare for your open house:

Clean, clean and clean some more.  Everything should be sparkling, from the floors and baseboards to the ceiling fans and everything in between.

Remove all indicators of pets.  Food and water bowls, doggie beds, litter boxes – all of these should be stored out of sight.  Do a sniff test as well.  Nothing will turn off buyers and agents alike as much as a smelly house.

Tidy up.  Make the beds, hang fresh towels in the bathrooms, put away all of your personal toiletries and be sure that any children’s bedrooms don’t look like Toys R Us exploded in them.

Think curb appeal.  Cut the grass, weed the flower beds and make sure that the porch is swept clean.  If it’s a rainy day, provide a good door mat to keep visitors from tracking wet and mud into your home.

What’s behind closed doors matters.  Don’t make an area of your home off limits during the open house.  If there are family members that sleep during the day, then an open house may not be for you.  Also, visitors will open closet doors, pantries and cabinets to check out the amount of storage you have.  Clearing out and pre-packing some items will make all of these spaces appear even larger.

More home selling tips

There are several roles that REALTORS can play in who they represent and they vary from state to state.  In some states, agents always represent the seller (as a sub agent) unless they have entered into a specific Buyer Representation Agreement with the buyer.  In other states, agents are transaction brokers, not representing either buyer or seller.  In yet another twist, there are some states that allow for buyer agents, seller agents, dual agents AND transaction agents.

Confused yet? If you are relocating to New Orleans, there are only a couple of things you need to know about agency.  In Louisiana, agents are assumed to represent the person they are working with, whether they have a buyer brokerage agreement signed with them or not.

Now, most agents work with both home buyers and home sellers.  Occasionally, an agent will represent both the buyer and seller sides in the same sale, but I’ve written before that we don’t recommend dual agency.  Instead, we recommend that you work with a buyer’s agent.

What Is A Buyer’s Agent?

A true buyer’s agent works only with home buyers. They are well versed in the local real estate market (as every agent should be) and have a slew of behind the scenes professionals just waiting to help you with the purchase of your home.  Lenders, home inspectors, termite inspectors, roofers, plumbers, HVAC technicians…you name it and they usually have someone at their fingertips that can assist you with any issues that arise during your home purchase.

A buyer’s agent spends a lot of time viewing homes, so they are the most knowledgeable about what upgrades and improvements that you can expect in the neighborhood of your choice and in your budget.

A buyer’s agent works tirelessly to ensure that you are getting the home you want at the best price possible and on the terms that work for you.  It’s difficult (actually, it’s almost impossible) to expect that same level of service from an agent who is also representing a home seller.

Finally, the services of a buyer’s agent are included in the commission already being offered by the listing agent.  There is no cost to you, but the benefits of having your own representation are priceless.

When you work with an experienced and professional buyer’s agent, you get more than just someone who opens doors to homes for you. You gain an advocate, who can educate you on the buying process, the local real estate market and how to get the most bang for your buck when choosing a home.  You get someone who is vigilantly protecting your best interests through the entire transaction.

Who pays the REALTOR commission?

In a nutshell, the seller usually pays the commission of both the listing agent and the buyer’s agent.

When a home owner decides to sell, they have a couple of options.  They can choose go it alone and try to sell it themselves or they can hire a professional REALTOR.  When they hire a brokerage and choose an agent, the listing agreement outlines how much that agent will charge in commission.  Out of that commission, the listing agent offers a percentage (usually 50%, but not always – a topic for another day) to any other brokerage/agent who brings a buyer and successfully closes the transaction.

The end result is that there is no cost to the buyer to take advantage of the expertise and market knowledge of a good buyer’s agent.

What about For Sale by Owners?

Most For Sale by Owner (FSBO) home sellers are simply trying to save a few dollars by cutting out the listing agent’s commission from their expenses and are usually open to paying a buyer’s agent who brings a ready, willing and able buyer to their home.  When this happens, the seller signs an agreement with the agent/broker for a buyer’s agent commission only and no representation is provided to the seller.

But, there are always exceptions.

Some FSBO sellers are adamant about not paying a commission at all or simply can’t afford to pay a commission and pay off their mortgage as well.  In those rare cases, the cost of using a REALTOR falls on the shoulders of the buyer if they want to have representation through the process.

I had an out of town client once that absolutely needed an agent.  They could not be here for negotiations, inspections or the appraisal.  The house they wanted to purchase was a FSBO and the seller was maxed out and could not afford to pay me a commission.  Because the buyers knew that they would need assistance, they chose to move ahead with the purchase and paid my commission on their own.

This, however, is not the norm and has only happened to me once in over 8 years of practicing real estate.

Buyer Brokerage Agreements

In some other states, the use of Buyer Brokerage Agreements (also known as Buyer Representation Agreements) is the norm.  When a home buyer chooses an agent to work with, they sign a BBA agreeing that their agent will be compensated a certain amount.  If they choose a home that is offering a commission that is less than that in the agreement or if they run off and buy a FSBO without their agent or if they wander into a new home builder’s office without their agent and buy new construction…well, they are contractually liable to their agent to pay them the commission agreed to in the BBA.

If you are moving to New Orleans from a state that uses Buyer Brokerage Agreements, you might think that your agent has skipped over something when you aren’t asked to sign a BBA.  In reality, I don’t know of any agents or brokerages in our area that are using them.  While in theory they a good idea for an agent or broker, in practice we just don’t do it.

Do you have questions about how to choose an agent? Contact the West Bank Living Team and we’ll be happy to help you through the process.

When is the Act of Sale?

In Louisiana, the closing date, like so many other things, is negotiated between the buyer and seller as part of the purchase agreement.  Typically, buyers want to close as near to the end of the month as possible, because they will be pre-paying interest between the act of sale date and the end of the month.  The closer to the end of the month, the less in pre-paid interest that they have to bring to the table.

An unfortunate reality today is that closing dates are changed more often than not.  Delays in loan approvals and appraisals can push everything back, sometimes by a day or two, sometimes by weeks.

While the agents work hard to keep things on track, there are some things that are beyond our control (lenders and appraisers being a couple of them) and that may result in you being asked to sign an extension to the closing date.  As noted in the purchase agreement, any changes to the date must be agreed to in writing by both the buyer and the seller.

Where is the Act of Sale?

The Louisiana purchase agreement requires that all real estate closings be held by either a settlement agent or a Notary Public. The settlement agent is usually a real estate attorney who works in conjunction with the title company.  Occasionally, a title company may use a Notary instead of an attorney.

Typically, the closing takes place at the title company office, but there are title companies that will close off site if needed.  I’ve been to closings that were held at real estate brokerage offices because that was more convenient for the buyer and seller.

The choice of title company is up to the buyer, because the bulk of the fees being charged by them are on the buyer’s side of the transaction.  The exception to this rule is when the seller is a bank.  Often, they have one title company that does all of their closings and they make it a condition of the sale that their closing company is used.  When buying new construction, builders will sometimes offer a discount or help with closing costs in return for using their title company or attorney to perform the closing.

From HUD.gov:

Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

Read the entire Fair Housing Act

The following information is also provided by HUD:

What Is Prohibited by the Fair Housing Act?

In the Sale and Rental of Housing: No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap:

• Refuse to rent or sell housing
• Refuse to negotiate for housing
• Make housing unavailable
• Deny a dwelling
• Set different terms, conditions or privileges for sale or rental of a dwelling
• Provide different housing services or facilities
• Falsely deny that housing is available for inspection, sale, or rental
• For profit, persuade owners to sell or rent (blockbusting) or
• Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing.

It’s sad and unfortunate in this day and age that there are still sellers who don’t want “certain people” to purchase their homes.

Consider this your official reminder that the only color that matters during a home sale is green – can the purchaser afford to buy your home on terms that are acceptable to you both.

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please

What they don’t seem to realize is that print advertising when selling your home is one of the least effective ways of marketing a property to as many qualified buyers as possible and is becoming more obsolete by the year.  All you have to do is take a look at the ever shrinking Real Estate section of the Times-Picayune to know that in New Orleans there are very few agents that are still using the paper as a marketing tool.

Why have so many agents stopped using the newspaper?

Here is a graph of home buyer activity in 2008:

Now, look at the 2009 survey:

If 90% of home buyers are using the internet as an information source, isn’t that where you want your home to be featured?

Considering selling?  Let us show you how we can use technology to get your home the widest exposure possible.

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please

In addition to our reasonable real estate prices on the West Bank of New Orleans, we have low property tax rates as well.  Our friends at True Title were kind enough to provide this table of millage rates for the 2010-2011 tax years in the metro area to help you in estimating your potential property taxes no matter which West Bank community you settle in.

Remember, in Orleans Parish, property taxes are paid in advance.  In all other surrounding parishes, they are paid in arrears.

If you have questions about calculating your potential property taxes, the assessor’s office is your best source of information.

• Orleans Parish: Visit http://nolaassessor.com/ and click on the Estimate Taxes tab
• Jefferson Parish: Visit http://www.jpassessor.com/ or call the assessor at (504) 362-4100
• Plaquemines Parish: Visit 106 Ave G, Belle Chasse, LA  70037 or call (504) 297-5250

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team. It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Buyers

• Drivers license – The law requires all title companies to verify your identification by making a copy of your drivers license or state ID.  Don’t worry, they have privacy policies in place to keep your information safe.
• Certified funds – Once you know the amount of money you will need to bring to the closing, don’t forget that the funds will need to be in the form of a cashier’s check made payable to the title company. 
• Additional documents – Occasionally, there will be something special requested by a lender.  If so, don’t hold up your closing by forgetting it. 

Sellers

• Drivers license – As with buyers, the title company must verify that you are who you say you are
• All keys to the house – Much appreciated by the buyers
• Gate code – If you live in a gated community, the new owners might want to be able to get in!
• Alarm information – Directions for use, your super secret code and contact information for the alarm company
• List of special service providers – Pool service, lawn service, your go-to air conditioning guy…all of this can be life saving for a new owner
• Receipts for repairs – If there were any repairs or improvements made after inspections, bring the receipts with you (this is part of the inspection response agreement)

That’s it!  By the time you are ready to go the closing, the hard part is over.  Negotiations are finished, repairs are done and the movers have packed for you.  Congratulations on a successful sale!

Copyright 2008.  Lisa Heindel and West Bank Living.  All rights reserved.

As you gather all of this information together, I recommend making a file folder to keep it all in.  Of course, don’t forget where you put the folder.

Documents Needed

Floor plan (if available)  Buyers love to have a floor plan for their new house, especially if they plan to make changes OR if additions have been made to the home over the years

Flood insurance policy  There are 2 reasons for this:  (1) it contains your flood zone, which is needed to complete the disclosure and (2) many of the flood zones have changed over the years.  If you have a flood policy that allows you to be "grandfathered" in under an old zone, buyers may want to assume that policy.

Most recent appraisal  If it’s more than 90 days old, the value may have changed, but the measurements have not.  Being able to say that an appraiser measured the square footage of your home (instead of an agent) lends more credibility to the number.

Survey  The wonderful thing about surveys is that they are rarely outdated.  Unless you have given away or sold a portion of your land, the boundaries of your lot are the same now as they were when you purchased your home.  A survey is especially important to buyers if you don’t have a fence around your yard, since one will be needed if they plan to install anything around the property lines.

Flood elevation certificate (if available)  Many lenders are now requiring flood elevation certificates during the loan approval process.  If you can provide an existing certificate for the buyers, this is one less thing that could possibly delay a closing.

Home Owner’s Association Covenants and Restrictions  Residents of gated communities or those that have deed restrictions should provide copies of any and all information related to the Home Owner’s Association.  Rules, regulations, covenants, restrictions and contact information for association board members can all be requested by the potential buyers, so it’s better to have this package prepared ahead of time.

Information Needed

The Louisiana Property Disclosure form has page after page of questions for you to answer about the history of your home.  To save yourself some time, gather the following information before you meet with your West Bank REALTOR:

• Names of all people who are on the title of the house  Not only are the names of all of the owners needed, but their signatures are needed as well on all of the listing documents.  Don’t schedule a time with your agent when everyone who needs to sign is not available!
• Age and type of air conditioning/heating systems
• Age of hot water heater
• Dates of any damage to the home and details on how/if it was repaired
• Termite contract details  Who is the contract with?  When does it expire?
• Home warranty information (if applicable)
• A list of any improvements done to your home  The very things that you love the most about your home are probably the things that will attract a buyers interest as well.  You can help your agent craft the perfect description of your home by sharing all of the recent changes and improvements made to it!

Still have questions about listing your West Bank home for sale?  Give me a call or drop me an email and I’ll be happy to discuss your personal situation with you privately.

Copyright 2008.  Lisa Heindel and West Bank Living.  All rights reserved.

Here is a quick and easy primer on the different real estate listing statuses used in each months West Bank market reports: 

Active – currently listed for sale in the MLS (multiple listing service – a central database of all property in an area listed by real estate professionals)

Pending - an offer has been accepted on the property, but the seller is continuing to allow potential buyers to view the property  – usually in hopes of getting a back up offer.  Typically, this status means that inspections and the appraisal have not been completed yet.  In some cases, sellers are not 100% warm and fuzzy that the contract will make it to closing and want to hedge their bets a bit by continuing to show the property up until they receive a clear to close from the buyers mortgage company.  A special note to sellers:  When there is a large number of homes for sale (like now) most agents will not show a property that is in a pending status to avoid disappointing their buyers.

Open Predication – an offer has been accepted on the property, but the buyers are still trying to sell their existing home – in some other areas this is known as a contingency.  Usually a predicated offer has terms that give the buyers a specific amount of time to sell their home and/or to remove the predication if another acceptable offer comes in.  During the period of the predication, the seller will allow showings to other qualified buyers.

Under contract – an offer has been accepted on the property and the seller is not allowing showings.  Things happen though, so if the house you’ve had your eye on is “under contract”, ask your agent to keep you updated in case it comes back on the market.

Closed - the sale has been completed and the property has been transferred to the new owners.

Not so hard, right?  Stay tuned for the next real estate lingo lesson, coming soon to a West Bank real estate blog near you!

Copyright 2008.  Lisa Heindel and West Bank Living.  All rights reserved.