Comments Off on 3 Strategies to Avoid a Bidding War When Buying in a Seller’s Market
by liz
I know you’ve heard that it’s a tough competitive market. We’ve all heard the horror stories of people that have made offers on dozens of home yet still haven’t been able to lock down “the one”. This doesn’t have to be your story!
There are ways to navigate this challenging terrain and avoid getting caught up in those dreaded bidding wars. In this blog post, we’ll explore three friendly strategies that can give you an edge when buying a home in a competitive sellers market. Let’s jump right in!
Find the Hidden Gems: Target Homes on the Market for 7 Days or Longer While it may seem counterintuitive, targeting homes that have been on the market for 7 days or longer can be a winning strategy. These homes might have slipped under the radar of other eager buyers, offering you a better chance to negotiate a fair price without having to fend off multiple offers. By keeping a keen eye on these hidden gems, you might just discover a diamond in the rough that others have overlooked.
Explore New Horizons: Consider Building a New Home or a New Construction Spec Home When the existing housing market is highly competitive, sometimes the best strategy is to think outside the box and consider building a new home or exploring new construction spec homes. This allows you to avoid bidding wars altogether, as you can work directly with builders or developers to secure a brand-new property that meets your specific needs. Plus, you’ll have the added benefit of choosing finishes and customizing your dream home from scratch. It’s like getting a VIP ticket to circumvent the frenzy of the resale market!
Partner with a Pro: Leverage the Expertise of a Realtor In a competitive sellers market, having an experienced realtor by your side can make all the difference. They know the ins and outs of the market, have access to exclusive listings, and can help you navigate the complexities of homebuying with ease. A skilled Realtor can guide you through the process, assist in finding off-market listings, and negotiate on your behalf to avoid bidding wars or secure the best deal possible. So, don’t hesitate to tap into their expertise and let them be your trusted ally in the journey to finding your dream home.
I’d love to help you in your home buying journey! Reach out here and let’s get started!
Comments Off on Exploring the Role of a Realtor in Facilitating the Purchase of a “For Sale by Owner” Home
by liz
Navigating the real estate market can be both exciting and challenging, especially when encountering a “For Sale by Owner” property. In this article, we will delve into the role of a Realtor and discuss how their expertise can assist buyers in successfully navigating the unique process of purchasing a home directly from the owner. So, let’s explore the benefits and considerations involved in engaging a Realtor when dealing with “For Sale by Owner” homes.
The Challenges of “For Sale by Owner” Properties:
Discovering a “For Sale by Owner” home can initially feel like uncharted territory. While these properties may offer appealing opportunities, buyers often encounter complexities associated with negotiations, market knowledge, legal aspects, and other factors typically handled by real estate professionals.
The Realtor Advantage:
Engaging a Realtor can provide significant advantages when it comes to purchasing a “For Sale by Owner” property. These professionals possess the experience, knowledge, and skills necessary to guide buyers through the unique intricacies of this type of transaction.
Negotiation Expertise:
One of the primary benefits of working with a realtor is their expertise in negotiation. They act as impartial intermediaries, ensuring that both parties’ interests are represented fairly. Realtors are skilled at navigating the intricacies of price discussions, contract terms, and resolving potential disputes that may arise during the transaction.
Market Insight:
Realtors possess in-depth knowledge of the local housing market, regardless of the listing type. Their access to comprehensive market data, understanding of neighborhood trends, and pricing expertise can help buyers make informed decisions when considering a “For Sale by Owner” property. Realtors provide valuable insights into fair market value, ensuring buyers are making a sound investment.
Navigating Legal Complexities:
Purchasing a home involves navigating a multitude of legal documents and potential pitfalls. Realtors bring a thorough understanding of contracts, disclosures, and other legal requirements. Their expertise ensures buyers are protected throughout the process and can address any legal concerns or questions that may arise during the transaction.
Collaborative Professionalism:
Working with a Realtor offers a professional and collaborative experience. They serve as trusted advisors, supporting buyers with their knowledge and expertise. Their commitment to providing a seamless and efficient home-buying process fosters a sense of professionalism and ensures buyers receive dedicated assistance every step of the way.
Engaging a Realtor when considering the purchase of a “For Sale by Owner” home brings numerous benefits and expertise to the table. With their negotiation skills, market insight, legal acumen, and collaborative approach, realtors play a crucial role in facilitating successful transactions in this unique real estate scenario. By relying on their professional guidance, buyers can navigate the complexities associated with “For Sale by Owner” properties with confidence, ultimately achieving their goal of homeownership.
Comments Off on What Does the Appraisal Process Include?
by liz
Hey there! Have you ever wondered what exactly an appraiser does and whether or not you need an appraisal done? Well, let me break it down for you.
What is an appraiser?
Basically, appraisers are licensed or certified professionals who provide an opinion of value for a property. They are highly trained individuals who understand current real estate market conditions in your area. And if you’re buying a home or refinancing, you’ll likely need one since all states require appraisers to be licensed or certified to provide appraisals to federally regulated lenders.
Appraisers are considered third-party participants in the transaction, and their work assures mortgage lenders that the amount they are lending does not exceed the home’s true value. But it also assures that you, as the home buyer or homeowner, are receiving a fair, unbiased price for your property.
What does a home appraiser look for?
So what does an appraiser look for? Well, they research recently sold properties in your area with features similar to your prospective home, called “comparables.” They also consider factors like the condition of the home, size of the property, quality of landscaping, quality of roofing and foundation, number of bedrooms and bathrooms, and more.
More specifically, you can expect the following factors to be reviewed:
A home appraisal is not the same as a home inspection. Learn about the differences and the importance of home inspections.
How long does an appraisal take?
Now, you might be wondering how long an appraisal takes. For home buyers or borrowers looking to refinance, you can expect an appraiser to be at your home approximately 20-60 minutes, depending on the size of the property. Once the physical appraisal is complete, the appraiser creates a written report of findings for the mortgage lender, which generally takes about a week.
How to prepare
Maximize your home value ahead of time, so your home appraises as high as it can. This may include significant work such as home renovations, or simple tasks like the ones listed in the checklists below:
Appraisal checklist for buying a home
Review neighborhood home values and recent sales
Assess your desired home’s condition so you can plan ahead for necessary repairs
Include an appraisal contingency so your offer can be withdrawn if the appraisal comes up short
In a competitive seller’s market you may want to offer an appraisal gap to cover any shortage should the appraisal come in low.
Appraisal checklist for selling or refinancing a home
Ensure your landscaping is on point as“curb appeal” is considered during an appraisal
Repairing damaged drywall or painting rooms can factor into your valuation
Make sure every light switch, wall outlet, fan or vent works
Document recent home improvements with estimated prices and dates
Provide copies of previous appraisals
Make sure all rooms of the house are accessible
Be aware of the $500 rule
Appraisers tend to value property in $500 increments – like $300,000, $300,500, $301,000, etc. Because appraisals with $500 increments are common, it’s in your best interest to make small repairs if you are selling your home or refinancing. Even the smallest of changes can contribute to the overall condition of your property.
Comments Off on How to Handle the Stress of Buying a Home in a Competitive Seller’s Market
by liz
Buying a home in a competitive sellers market can be an incredibly stressful experience. With limited inventory, multiple offers, and bidding wars, it’s easy to feel overwhelmed and anxious. However, with a few strategies and tips, you can navigate the home buying process with confidence and ease.
Get Pre-Approved for a Mortgage One of the best ways to reduce stress when buying a home is to get pre-approved for a mortgage. This will give you a clear idea of your budget and what you can afford. Additionally, it will help you move quickly when you find a home you love, as sellers are more likely to accept offers from buyers who have already been pre-approved for a mortgage.
Be Prepared to Act Quickly In a competitive sellers market, homes can sell quickly, sometimes within hours of being listed. This means you need to be ready to act quickly when you find a home you love. Have your pre-approval letter, down payment, and any other necessary documents ready to go so you can make an offer as soon as possible.
Work with an Experienced Real Estate Agent Working with an experienced real estate agent can make a huge difference when buying a home in a competitive market. A good agent can help you navigate the market, find homes that meet your criteria, and negotiate on your behalf. They can also help you stay calm and focused during the stressful parts of the home buying process.
Don’t Get Emotionally Attached to a Home While it’s important to love the home you buy, it’s also important to avoid getting emotionally attached to a specific home. In a competitive market, it’s possible that you may lose out on a home you really wanted, even if you offered a high price. If this happens, try not to get too upset. Remember that there will always be other homes on the market, and the right one will come along.
Consider Making a Strong Offer In a competitive market, it may be necessary to make a strong offer to stand out from other buyers. This could mean offering more than the asking price, offering extended possession after close at no cost, or agreeing to a quick closing date. However, be sure to only make an offer you can afford and that makes sense for your budget.
Have Patience and Stay on Track So many home buyers start to get frustrated and start grasping at straws for home options when they do not feel that enough homes are available that meet their criteria. Do not run all over the place looking at homes out of your target area, out of your budget or are missing your must haves. This will cause more burnout and not get you any closer to your home goal.
Take Breaks and Practice Self-Care Buying a home can be a stressful experience, so it’s important to take breaks and practice self-care. Make sure to take time for yourself to do things you enjoy, like exercise, meditate, or spend time with friends and family. This will help you stay calm and focused during the home buying process.
Buying a home in a competitive sellers market can be a stressful experience, but with these tips, you can navigate the process with ease. Remember to stay focused, work with an experienced agent, and take care of yourself throughout the process. With a little patience and perseverance, you’ll find the perfect home for you and your family.
Comments Off on Should You Buy A Home Listed “as is”?
by liz
I feel like one of the most confusing terms used in real estate is the concept of selling “as is”, so let’s simplify it. The most general use of this term is that the seller is selling the property in its current condition, without making any repairs or renovations.
Should you consider buying a home listed “as is”? These three tips will help you decide if this option is a good one for your home buying goals:
The Price Should Reflect the Condition: It’s convenient for the seller to put the home on the market and list it “as is”. In order to get top dollar for the home the seller would have had to put in all the work to attract a buyer in that market. As a buyer looking at a home that needs work that the seller is not willing to do, make sure that the home is priced considerably lower than the competing homes on the market. If the sellers are still trying to get average market value for the home, they may not be realistic about selling at this point.
Consider the Cost of Repairs: While the seller may not be willing to make any repairs or offer credits, understanding the cost of repairs can help you determine if the property is worth the investment or just too much of a project for you at this time. When you write an offer you can use the estimated cost of repairs to back up your offer price.
Understand Your Financing Options: Many lenders require that certain repairs or renovations be made before financing can be approved, which may not be possible with a home listed “as is” if the condition is poor. You may need to consider alternative financing options or be prepared to make repairs out of pocket. There are financing options that allow for you to finance in the repairs needed, ask your Realtor to put you in touch with a great lender that can explain what this type of program has to offer.
Overall, purchasing a home listed “as is” can be a great opportunity for buyers, but it’s important to carefully consider all of the potential implications. I cannot stress highly enough the importance of hiring a professional Realtor to guide you through this process. They will have resources for you and a process to simplify your home buying experience.
Comments Off on Best Practices for use of Video Surveillance Cameras While Selling Your Home
by liz
So this day in age in home and front porch door bell cameras are super popular. I, myself have one. It’s great for many things. Tracking when packages are delivered, looking to see who is at the front door before deciding whether or not you will answer it, preventing porch theft, monitoring your baby while they are in the crib, etc.
Now lets talk about whether or not it is appropriate to have these types of devices recording while your home is for sale. In the Grand Rapids, Michigan area the market where I work, they address audio surveillance (not necessarily video) during showings, open houses and inspections.
Audio Surveillance. Seller understands that the use of an audio surveillance device during showings, open houses, or inspections on the property may result in a violation of state and/or federal criminal wiretapping statuses. Broker recommends that Seller disable any audio recording devices during showings, open houses and inspections.
It does not say anything about limiting video. Furthermore it only recommends that you disable the audioduring showings, open houses and inspections, mainly because you could be breaking wiretapping laws that the state and/or federal government have in place.
This is important to note for potential buyers. When touring homes do not assume that the sellers have turned off the video and/or the audio on the cameras in and around their home. Most sellers are likely to follow the rules however some may be willing to risk it and keep them on.
I tell my buyers to be careful what they say when looking at homes. You never know when the seller is listening in and it can make the difference between the seller being inclined to be acceptable or negotiable to your offer (if they hear something negative they may be offended). In addition it could possibly make your negotiating position weaker if you make an offer lower than the ask price, yet the sellers heard on their audio recording that you were willing to do anything you could to buy the home.
Best practice recommendations:
If you are a seller, turn off the audio when potential buyers are in the home.
If you are a buyer, assume that the sellers have the video and audio on while you are in the home. Do not say anything you do not want them to hear.
Comments Off on What You NEED to Know About Buying a Home Contingent Upon Selling Your Current One
by liz
You’ve weighed the options of selling before buying or buying before selling. You have finally decided that buying a new home with a contingency of selling your current home is the best way to go.
I’m going to be real…this is going to be stressful and complicated but SO worth it when you are sipping coffee on the back deck overlooking your gorgeous new back yard.
The best way I can help keep the stress level down is by breaking it down to bite sized steps. This will help you feel more “in control” during the process. Keep in mind this is a general overview. When we meet at your consultation we will put your personalized plan in place. I will give you more details as we go along and promise that I will be holding your hand the whole way.
Let’s start with a little review. Contingent Offer, what does that mean? A contingency is a provision of the contract that keeps the agreement from being fully legally binding until a certain condition is met. In this article we are specifically referencing the contingency of selling and closing the buyer’s current home prior to closing on the sale of the new home that they are purchasing.
Here we go breaking it down…
Meet with your Realtor to discuss the market value of your current home and your goals for the next home.
Contact a trusted mortgage lender. Discuss with them the amount of mortgage you will need to buy the next home and provide them with the approximate proceeds that your Realtor estimated for you.
Determine if your goal is possible and worth it to you to continue with the process.
If the numbers and information are in alignment, go through the formal pre-approval process and have your Realtor help you determine what needs to be done to your home so that you can put it on the market immediately once you find “the one”.
Search for a home
Go under contract on a home
Put your home on the market
Accept an offer on your home.
Mortgage process on both sales.
Close on homes, current home first and possibly both on the same day.
Possession- turn over your home and move into the new one.
Ready to get the ball rolling? Start with step 1. Click here to schedule a consultation!
Buying a home is such an exciting time in your life. Whether it’s your first home or you are a seasoned pro, here are 4 great tips for you to remember during the process: Buy in a great school district even if you don’t have kids. It’ll help your equity grow quicker and make reselling down the road easier.
You don’t have to buy at the high end of your price range. In fact, you shouldn’t. Leave room in your monthly budget for repairs, renovations, and the unexpected. Living above or nearly at the top of your means can be very stressful!
You can ask the sellers for items you like or need such as furniture, artwork, or appliances. They may say no, but then again, they may say yes!
Home Inspections are a great time to get to know the house that you are buying. Make sure to take the time to attend the home inspections. While you are there the home inspector, that you’ve hired, will show you the good and bad about the house and give you great tips on how to maintain your home (which is also one of your largest investments).
Looking for more tips on buying a home? Email me today!
Comments Off on 4 Strategies to Buy Your Dream Home and Sell Your Current One
by liz
When you first purchased your home it met your needs and budget, but life (as it always does) has changed. Maybe you have a different job that is located on another side of town, or your family situation has grown from 2 people to 4, or you now have a much higher income and would love a nicer home to reflect your current taste. The point is that the home served its purpose but it is now time to move on.
What you need is a plan to get from point A (your current home) to point B (the new home that meets your current wants/needs). Hiring an awesome Realtor to guide you down this path is highly recommended since it can be complicated and overwhelming!! Below are the most common strategies to accomplish your moving goal.
1.List your current home then look for a new one once your home is under contract and write an offer contingent upon you closing on your home.
One of the benefits of this strategy are that you know how much you will be getting in proceeds (since you’ve already accepted an offer at a certain purchase price). This is extremely helpful when budgeting and planning for the next home. The other positive is that when you do find the home that meets your needs and get an offer accepted, you will not have the stress of putting your home on the market. That step will be behind you. The risks that come from this strategy are that you may not find the right home in the timeframe that you have negotiated before closing. This may cause a double move and the need for temporary housing. Another con is that it is harder to get an offer accepted that has a contingency in it, even if it’s just to close on your home. Sellers like clean offers and the less risk the better. Another factor to consider is the chance something falls through on the sale of your current home. You risk losing out on the new home and having to start all over from square one.
2. Sell your current home then find a new home after the current one closes to eliminate the need for a sale contingency.
This one can sound super scary. Nobody wants to risk being homeless. There are many ways to make this a smooth transition with extended possession after closing or finding a temporary place to land (mom & dads, short term rental, temporary RV living…). The major benefit is that this strategy will give you the best buying power in the market. When you have your proceeds from your sale and do not have the risk of having to sell your home sellers will favor your offer over those that submit contingent offers.
3. Buy your new home (cash, bridge loan, new mortgage), then list and sell your current home.
When you decide to buy the new home before selling, the stress about finding the “right one” is minimized since that step is first and you do not have the pressure of a short timeframe. This strategy will also give you the opportunity to declutter the current house by moving items to new house which can help with the staging process, and you will not have to worry about finding temporary housing or moving twice. Of course there are risks involved. These include: being unsure of the exact proceeds from the sale of your home (the market will determine the ultimate sale price despite what you see in the sale data), you won’t have the cash from home sale for down payment, and perhaps this biggest concern is that you may have carrying costs and run the risk of having 2 mortgages.
4. Look for a new home. Once you find the right home, write an offer contingent upon you selling your home. If your offer is accepted, list and sell your home.
This strategy is the most challenging to execute smoothly, but it absolutely can be done! The reason that buyers choose to use this strategy is that they are not comfortable with the risk of selling their home without having another home lined up, yet they cannot afford and/or are not comfortable with buying a home before selling their current home.
The stars all have to align to pull this off. First you have to find a home that you like and write an offer attractive enough that the sellers are willing to accept your offer with this contingency. After that you will have to get your home on the market in a very short period of time and position it in the market for a quick offer, and finally we work hard to get everything done and close on the sales on both homes.
Which strategy is best for you?
The current market conditions and your personal situation will help you determine this. Hopefully you will be able to find a way to balance both at the same time (or a short window). If this is not possible, you need to decide which risk you are more comfortable with – owning zero houses (selling your home first) or owning two houses (purchasing next home first). Again, I cannot stress enough… finding an experienced and professional Realtor to guide you through this process is SO important!!
Comments Off on Simplified Step by Step Look at the Home Buying Process
by liz
Find a Realtor that you can trust. (I’d love to help!!) This is SO important so that you have a professional in your corner through the next key steps. This is a huge investment and going it alone can cost you money and time.
Determine how you will pay for your new home. Will you be paying cash or will you need a mortgage to finance your new home? If you need a mortgage you will need a trusted mortgage lender to help guide you as to what is the best type of loan for your needs. Your Realtor can help you find a lender that you can trust if you don’t already have one.
