I was asked this question recently so, I took a moment to think about it. There are so many places where one can go a little bit wrong or horribly wrong when winging it through a real estate transaction. Please seek expert help.

*Probate the Will– I feel like I have said this a dozen times, yet we continue to run into this problem. I have had it four times this year. When someone dies owning real estate that will eventually be sold, you have to probate the will. It makes everything simpler if it is done within 12 months of the death. The legal system must have the opportunity to check for heirs, liens, and other claims against the property before it can be sold. Please check with a real estate or probate attorney. Your friends and neighbors will give you all types of advice, but they may not know as much as they think they do.

Example – Mama and Daddy or Grandma and Grandpa die. Three adult children inherit the property. Everything is fine. Noone is fussing over the money or property. Eventually they decide to sell the house and have a buyer willing to buy, but the will has not been probated. The Probate Judge says that the house can not be sold until the will has been probated so that it can legally be determined that these are the only three who have a claim to that estate. Buyer and seller both have to wait. Eventually, the Probate Judge says that he is satisfied with heirship. The buyer is able to buy. BUT the sellers are not allowed to have the money until the estate has been open for 6 months. The seller’s funds are held in escrow until the time that the judge says they can be distributed to the heirs.

*Ask an Expert– The market is constantly changing. Today’s market is not the same as last month’s market. We are in a quickly changing market right now. Talk to an experienced real estate agent and mortgage broker about the steps you need to take to buy or sell. Your friends and family may be trying to help you, but they may not be up to date on the current market conditions. If your parents have not bought or sold a house in the past couple of months, they do not know how it is currently done. Please listen to the experts. I am NOT saying that you should exclude your parents from the transaction. They may have some good advice or ideas, but they are not the current expert. Don’t overprice your home or underprice your home. Using the phrase “as is” sends up huge red flags that something is wrong with the house. Some repairs must be made and some can be let go. Listen to the experts.

*Use local– Use a local real estate agent, mortgage broker, and closing attorney. Markets are so different. If you live near me, you know that homes in Brookwood and Emerald Mountain, River Oaks and Meadowbrook are priced differently, even though they are only a couple of miles apart. Use an agent who knows those differences. Just because your sister is an agent in Birmingham (my sister is also) and will cut her commission or spend a day riding around with you in Wetumpka and Prattville does not mean that she is the best person for the job. Ask her to refer you to a local agent. She can get a referral fee, still get paid, and find someone to represent you better. Use a local lender for many of the same reasons. Not all lenders are licensed to lend in all states. The internet lenders will never have to look you in the face. They will sometimes charge you crazy hidden fees that make your costs higher than a local lender. Many of them are notorious for not closing on time. Ask your agent who they recommend. They will know who you can trust to treat you fairly, close on time, and with as little drama as possible.

When you are selling, you still need to use a local agent. Listing is not just putting a sign in the yard and waiting for buyers to rush in to buy. Markets are all different. Local agents know how to market your home to the other agents and their buyers in your area. Access to the home for showings can be different in different areas. Local agents need to be able to make appointments and get in the house for showings. Out of area agents may not know how these are handled in an area they don’t work on a regular basis. Not to mention that out of town agents may not be a member to the local MLS system, therefor your home is not even on the radar of local agents.

*Don’t Buy or Sell Anything– Especially when you are buying a house, your financials will be under a microscope. All of your debits and credits will be questioned. It is not personal. When you are borrowing money from someone, they get to make the rules. Some times those rules seem crazy, but as with most rules there is a reason. When your debt to income ratios are tight, even a small purchase can mess you up. I have had buyers buy refrigerators, furniture, washer and dryers, etc and completely destroy the deal. Sometimes it can be fixed… but it takes time. Ask your lender before you make any purchases. I had a client who was receiving Venmo deposits from friends who were all going in together to pay for a vacation. Those deposits were questioned. So watch out for both debits and credits. Don’t let anyone run your credit while you are in the mortgage process. The lender will have to run your credit and if you shop multiple lenders, they will also. That is ok. Because the credit bureaus will see what you are doing and not drop your score, just don’t do it too many times and keep it in a short time frame. Once you are under contract and working through the process, NO credit pulls or purchases without checking with your lender.

*Getting Emotional– Buyers and sellers can both get emotional during a real estate transaction. Please remember that this is a business deal. It needs to make good financial sense. Sellers can get emotional over leaving the home where they raised their family or where they were raised. Buyers can get emotional with the process because it can be stressful. There are a lot of discissions that have to be made in a timely manner. Both parties may need to take a breath, listen to the agents, and focus on making good long term decisions. Buyers and sellers can both let emotions kill a deal. Don’t be that guy.