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More than ever, it’s tricky to buy or sell a home without a pro’s help.

Ask USAA members Corey and Kelly Campbell, who recently bought their first home for $158,000 in Fort Walton Beach, Fla., near Hurlburt Field where Corey is stationed. It was up to Kelly, now 20, to find a house while her 23-year-old husband deployed to Afghanistan. A novice in financial matters, she relied on local real estate agent Bill Kuhl, whom they found through the USAA MoversAdvantage® program.

New to managing money, let alone buying a home, she leaned heavily on Kuhl’s expertise in the nuances of the housing market. His know-how extended well beyond how to shop for a house. From their initial meeting two years ago, he discerned the young couple needed to establish a credit record in order to qualify for a mortgage. He suggested that they bolster their credit history by establishing credit via a credit card and a car loan.

Then the house hunt kicked into gear. That was more than a year ago. Finally, Kuhl heard of a single-family home, which was listed in their price range and in great condition. “Our market is pretty expensive and to find this house in a neighborhood where homes sell for $180,000 was a big score,” Kuhl says.

Kelly is thankful for Kuhl’s help. “He helped us set up credit, found us a home in our price range and answered my questions without making me feel dumb,” she says.

“It’s possible to be successful buying and selling a home today, but it does take patience and a strategy. A professional real estate agent can help with both,” Kuhl says. Here, he shares the top six tips he uses to help both buyers and sellers.

If you want to buy a home:

  1. Keep emotions at bay. Have your agent run a comprehensive market analysis to find a fair value for the property and base your offer accordingly. Many buyers have a preconceived notion they can slash $40,000 off the price of a $270,000 house. This will put off a seller and start the negotiations on a bad foot. Do offer 10% below what comparable homes are selling for. Don’t become attached to one specific home. If you have two or three choices, you can take a disciplined approach and avoid paying more than you need to.
  2. Sell before you buy. If you’re trading up, your house could sit on the market for months. So make sure you’re ready to buy before you start the process.
  3. Buy what you can afford. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28% of your gross monthly income.
  4. Steer clear of most foreclosure properties. Many foreclosures have unresolved issues. In most cases, no warranties or repairs are offered. This may exclude properties from Veteran Affairs, or VA, financing if they can’t pass appraisal guidelines.
  5. Have an exit strategy. Military buyers, in particular, may move within five years, so avoid buying something too quirky or out of the ordinary. While you don’t have to limit yourself to a cookie-cutter house, remember that your home likely will be a commodity when the time comes to sell.
  6. Tap into online information cautiously. Home value estimates and other real estate information could be stale and may not give the full picture.

 

If you want to sell your home:

  1. Set a realistic price. To overprice a listing is the kiss of death. Determine the lowest possible offer you’d accept before listing. Pressed sellers should price 5% below what comparable homes have been going for.
  2. Never flat-out reject an offer. Many buyers are coming in with lowball offers and may just be testing you. Don’t be offended. Carefully counter-offer until it becomes obvious that you are dealing with a bottom feeder. Accept the first reasonable offer that you can afford.
  3. Offer buyer incentives. Pay part of the buyer’s closing costs or ante up for their first year’s homeowner’s insurance or homeowner association dues. Offer new appliances or a paint job or a small cash bonus for improvements to sweeten the deal. The buyer believes they’re getting something extra from you, which makes negotiations more friendly and amicable.
  4. Shop for an agent. Interview at least two agents before you list your house. Request a comparable market analysis that lists the asking and selling prices of homes similar to yours. Ask how they would price your property. If there’s a significant gap in sales price, get a third opinion.
  5. Prepare for selling costs. Out-of-pocket expenses can include closing costs and any other seller concessions, repair items that may come up from home inspections and realtor fees. So the house shows its best, you may need to repaint rooms or spruce up the landscape.
  6. Go viral. Target web-savvy first-time buyers who can buy without the onus of selling another property. Best way: Tout open houses through social networks like Facebook and Twitter. Set your selling price at the low end of an online price scale, such as $205,000 for a $200,000 to $250,000 range.
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