Home Buying Tips | West Bank Living

Archive for the Tag 'Home Buying Tips'

lisa on Apr 30th 2008 For Buyers

Don’t Just Call The Name on the Sign

With several listings on the West Bank of New Orleans, I get a lot of phone calls from potential buyers looking for information. They are driving around a neighborhood, see a sign, grab the cell phone and call from right in front of the house.

What’s wrong with this? Too many times, when I ask if they are working with an agent, the response is "No, I’m just calling the names on the signs of houses I like".

Let me get this right…what you are doing is driving aimlessly (wow - have you seen gas prices lately?) and contacting a bunch of different agents who are all working for the seller? OK, let me explain to you why this plan is not in your best interest and show you a better way to find your new home.

When an owner decides to sell their home, they generally interview different agents and choose the one that they feel will work the hardest for them to get their house sold. They sign a contract with the agent that outlines what the marketing plan will be and what the commission fee will be. The agent is contracted to represent the seller in the sale of their home. The home owner is paying for the services of that agent, who has a legal and ethical responsibility to get them the highest and best price for their home. I know - this is exactly what I do for MY clients when I list their home for sale.

Now, you are cruising down the street and see that bright and shiny FOR SALE sign in front of a home that you just know would be the perfect one for you. It’s fabulous, it’s terrific, it’s the one - you’ve just got to get in and see it right away. Who do you call? The name on the sign or a REALTOR® who is working for YOU, looking out for YOUR best interests?

In Louisiana, the cost of a buyer’s agent is paid entirely by the seller - it doesn’t cost you a single penny to use a professional to help you buy a home. It is legal for an agent to represent both the buyer and seller in the same transaction. BUT, in my opinion, this is a fine line to walk. Giving both the buyer and seller confidentiality and superior service is very difficult (if not impossible) for most people to do and relationships are bound to be affected, even if it’s not intentional.

Why not take advantage of the services of a professional West Bank REALTOR® to provide your own representation? Many home buyers don’t realize that they can interview and choose a REALTOR® just like home sellers do. Read: 5 Steps to Choosing Your New Orleans West Bank Real Estate Agent.

When you are ready to stop surfing the internet for homes and want to sit down and discuss finding your dream home, give me a call and we can talk about how I can make buying the right West Bank home easier for you.

When buying or selling a home on the West Bank of New Orleans or relocating to the New Orleans West Bank, you deserve local expertise and advice. Lisa Heindel provides full time, professional real estate services to buyers, sellers and military transferees in Algiers, Algiers Point, Belle Chasse, Gretna, Terrytown, Harvey, Marrero, Westwego and more.

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lisa on Apr 29th 2008 For Buyers

5 Steps to Buying Your New Orleans West Bank Home

Are you still paying that high rent in a post-Katrina market? Or perhaps you relocated and are ready to return and call the New Orleans West Bank home again. Instead of surfing the internet and dreaming about being a home owner, why not take these 5 easy steps to make it a reality rather than a dream?

Prequalification

First things first….and getting prequalified for a mortgage is the first and most important step in the home buying process. Today’s sellers are not willing to take their homes off of the market for a buyer who has not taken the time to be qualified for a mortgage!

When you are serious about buying a home, it’s important to sit down and meet with a mortgage professional who will take the time to understand your budget and work with you to find the best loan product to suit your needs since there may be special programs that can assist with your closing costs or that require a smaller down payment. Your lender will require you to provide documentation such as your tax returns, paycheck stubs and bank statements and being prepared to provide all of this information makes the approval process much quicker.

REMEMBER: Most of the 100% financing programs are a thing of the past. Plan on at least a 3% down payment for any home you decide to purchase. For a $150,000 home, this works out to a $4,500 down payment. Additionally, you will need funds to pay for (at minimum) a home inspection ($250-$350) and a termite inspection ($85-$100). Additional inspections may be suggested dependant upon the home you choose.

Mortgage Qualification Calculator

Wants and Needs

Once you have been pre-qualified, it’s time to decide what is most important to you in your new home. Is it a particular neighborhood or school district? A certain number of bedrooms and bathrooms? A garage? Make a list of the must haves and the nice to haves and try to remain flexible. You don’t want to pass on a great house because it’s missing one of your nice to haves but meets all of your other needs. The articles below may help you narrow your focus.

How to Choose a Home

How to choose a Neighborhood for Your Home Search

Choose a REALTOR®

Home buyers don’t pay a penny to be represented by a professional West Bank REALTOR®! There is no need to go it alone when you can have an advocate on your side, looking out for your best interests during the home buying process. Since this is more than likely the largest investment you will ever make, doesn’t it make sense to have a professional guide you?

5 Steps to Choosing Your New Orleans West Bank Real Estate Agent

Find a Home

This is where the fun starts! Visiting available homes and choosing the right one for you or your family should be fun - keep it that way… If you visit a home that is not quite right, that’s OK. Move on to the next home on your list. As an agent, I learn more and more about my clients tastes, wants and needs each time we see a home, whether they love it or hate it.

Although it’s tempting to want to see everything at once, limit your showings to about 5 homes a day. More than this can be overwhelming and the homes will start to run together and become confusing. Was the great closet in this house or that one? Which one had the big backyard? Taking notes during the showings can also be a great way to keep them all straight.

I usually ask buyers to rate each home as we go along to narrow down the list. Did you like house #2 more or less than house #1, and so on as we work our way through each. This helps keep you focused on your favorites and makes choosing so much easier!

10 Steps to House Hunting with a Critical Eye

Negotiate an Offer

This step in the process is where the assistance of a professional is invaluable. Before you decide what to offer on a home, review the neighborhood comparables to learn about recent sales of homes similar to your choice. This will provide a guideline for what you can expect to pay. Remember, each home is unique - some sellers are willing to negotiate more than others and working with a professional West Bank REALTOR® who knows the area can arm you with the right information to get that offer accepted!

The Basics of Making an Offer

Your Offer’s Been Accepted - Now What?

When you are ready to stop dreaming and make owning a home on the West Bank of New Orleans a reality, contact Lisa Heindel, REALTOR®. A specialist in West Bank real estate, I’d be happy to help you find the perfect place to call home!

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lisa on Mar 18th 2008 For Buyers

Your Offer’s Been Accepted! Now What?

Congratulations! You’ve found a West Bank home that you love and negotiated an acceptable price and terms to make it your own. What happens next?

Well, a lot of things will happen very quickly, which is why finding the right West Bank agent to guide you through the sale process is critical. The following is a basic overview of the steps to get you to a successful closing.

Deposit

Once your offer has been accepted, you will need to immediately pay the agreed upon deposit to the listing company. Many sellers are now requiring that these funds be in the form of a cashier’s check or money order. These funds are held in an escrow account until the closing, where they are credited back to you, reducing the amount of cash you will need to bring to the act of sale.

Loan Application

If you have not already made a formal loan application (and I sincerely hope that you have!) the Louisiana purchase agreement states a time frame for doing so, typically within 3 days. It is critical to get all of the information requested by your mortgage professional as soon as possible, along with a copy of the signed purchase agreement.

Home Inspections

Customary Inspections

As a purchaser, you have the right, at your own expense, to perform any and all inspections that you want on a property you are purchasing. This right, in my opinion, should never be waived. I would much rather see a buyer lose a few hundred dollars on inspections than to purchase a home with defects that could cost them thousands in the future. Note, however, that inspections are a tool for uncovering defects within the property. This should not be used as an opportunity to "beat up" the seller over worn flooring or other cosmetic items that were obvious and visible when you made your offer!

Customs, laws and requirements vary from state to state across the country, but in the New Orleans area the customary inspections are:

Full home inspection
Termite inspection

Voluntary inspections

Plumbing inspection
Structural inspection

Inspection Response

Once the inspections are completed, an inspection response and a copy of the inspection report are provided to the seller. This response allows you to outline any defects with the property that you would like to have repaired and how the repairs are to be completed. For example, if the air conditioning system is functional but dirty, a request can be made to have the unit cleaned and serviced by a licensed A/C contractor. It is important to be specific in how defects are to be corrected! Some items can be solved by the home owner or handyman, but others may require a licensed professional such as a plumber or electrician.

The seller has a few different options in how they can respond to a request for repairs. They can refuse to do any repairs, they can agree to do all of the requested repairs, they can offer to renegotiate the price based on needed repairs or a combination of these options. Once any needed repairs have been negotiated, we move on the next step in the process.

Mortgage company

This is the hurry up and wait portion of the buying process! You must hurry to get all of the required information to your mortgage company in order for them to underwrite your loan and then wait for that process to be complete. Oftentimes, they will request additional information or documents to finish this process. Don’t panic or get frustrated! This is completely normal and customary.

The mortgage company is also responsible for ordering the appraisal of the property. Just as you don’t want to pay more than a house is worth, the bank or mortgage lender does not want to lend you more than a house is worth. A licensed appraiser will inspect the property and prepare an appraisal of the value based on the details of the home you are purchasing and comparable properties that have sold in the area. Remember, you are paying for this appraisal…be sure to get a copy of it from your lender for your records.

Insurance

Once your offer is accepted, I urge you to start shopping for home owners and flood insurance right away, since you cannot close on your new home without a paid insurance policy. Although most new home owners policies in Louisiana are being written through the Louisiana Citizens Fair Plan, individual insurance companies charge different fees and it is worth the time it takes to compare policies and prices between at least three different companies. Active military families have the option of applying for insurance through USAA which offers reduced rates for active duty military personnel.

Title company

The title company is responsible for researching the ownership history of the property to ensure that you are getting clear title. They coordinate with the listing agent, selling agent, mortgage company, buyer and seller to prepare all of the required closing documents and perform the actual Act of Sale. Once a contract has been sent to the title company, they will contact both the buyer and seller to obtain their personal information such as full legal name, social security number and marital status and begin the process of preparing for and scheduling your Act of Sale. At the Act of Sale you will sign all of the mortgage documents and receive the keys to your new home!

While this is a broad overview of the purchase process, every transaction is different. There may be additional or different terms in your purchase agreement. Again, this is where a professional West Bank REALTOR® is your ally! If you need a guide through the home buying process, contact me. I’ll be happy to help you find your next home and get you to a successful closing.

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lisa on Oct 18th 2007 For Buyers

Reasons to go House Hunting in the Rain

Rain, rain, go away…come again another day…

Are these your thoughts when you have a showing scheduled? Buyers seem to be hesitant, if not downright reluctant, to keep appointments when it is raining. I know that it is not always convenient to get in and out of the car in the rain and to remove your wet shoes when entering a home. As a matter of fact, these things can be a real chore. But what if they had a list of incentives to keep those appointments?

Reasons to go home shopping in the rain:

• Look for roof leaks. There is no easier way to see an existing interior problem than viewing a house during a rain. For a bonus, climb into the attic and take a look there as well.

• Check all exterior doors and the windows for proper seals. Is there any water being blown underneath the doors? Are the windowsills dry?

• Investigate the gutters. Are they clogged and overflowing or working correctly? Are they intact or leaking? Do the downspouts guide water away from the house properly?

• Are there any drainage issues with the property? Does the yard hold water or is it graded properly? Does water seep into the garage? Does the patio slant away from the house or towards it?

• Don’t forget to check garages and carports as well!

• Are there any drainage issues with the street? Are the catch basins clean or does the street easily flood?

• What about neighborhood drainage issues? Is there a canal or other waterway in the neighborhood? If so, is it rapidly rising during a rain or carrying the water as designed?

Knowing about any of these issues may impact how much a buyer is willing to offer for a property and could save them from making an expensive mistake that isn’t uncovered until after closing. Isn’t that worth getting out in the rain for?

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