It can take a time and effort to find the perfect home to purchase. After you have found that home, you need to convince the seller that your offer is the one they want to choose. There may be multiple offers made at the same time, and you may be in a situation where you are competing for the home.
Even if your offer is the only one the seller receives, there is no requirement that they must accept the offer you make. Crafting an effective offer that will catch the seller’s attention is important, and you may be able to accomplish this by following a few tips.
Offer Close To The Asking Price
One of the first things most sellers will look at when they receive an offer is the price you are offering to pay. You may feel as though the seller is asking too much for the home, and your agent may advise you to offer a lower price. On the other hand, there may be multiple offers, and you may feel as though you need to offer a price higher than what is being requested. With your real estate agent’s advice in mind, consider that a seller will be more inclined to accept an offer if it is close to what they are asking. If your offer is too low, they may decline it without looking at the other merits to your offer.
Request A Quick Closing
When you prepare your offer, one of the factors that you will have control over is the requested closing date. Sellers generally want to close quickly, but this is not always the case. Each market is unique, but a general rule of thumb is to offer a closing date that is 21 to 28 days away, contingent on mortgage approval. You may work with your real estate agent and mortgage company to determine when a reasonable closing date is. However, offering a quick closing generally shows that you are a motivated buyer.
Choose A Shorter Option Period
A sales contract has an option period, which allows the buyer to back out of the deal for any reason. This may be a time when you get your third party reports, such as the property inspection, completed. A shorter option period may be preferred by sellers. This is because the buyer is generally locked into the contract contingent on mortgage approval after the option period has expired.
Offer A Higher Non-Refundable Good Faith Amount
When you make an offer, you will also give the seller a good faith or earnest money deposit. The amount of the deposit will be disclosed in the contract, and you will typically hand it off after the offer has been accepted. This is the amount of money that you stand to lose if you do not follow through on the terms of the contract. A higher good faith or earnest money amount shows that you are serious about buying the home.
There are many factors that a seller is thinking about when reviewing an offer. While the entire offer will be reviewed fully, the fact is that these factors are generally given significant weight in most seller decisions. You can work with your real estate agent to structure the best offer possible.
Securing your home is a top priority, and you will need to make periodic updates and upgrades to your efforts from time to time. Today’s criminals are highly intelligent, and they often use superior techniques to break into homes criminals from past years and decades did not use.
As homeowners’ efforts to secure their homes become more sophisticated, the fact is that criminals are also becoming more sophisticated. There are several new products on the market that you may consider installing and implementing in your home to improve security going forward.
Wireless Video Cameras
Many of the more advanced home security systems today have some type of video surveillance system in place. Generally, this is a closed circuit system that records activities or that is motion activated so that the area is only recorded when movement is detected.
More advanced options, however, are wireless by design, and you may be able to both listen to and watch your home from your smartphone or wireless device. Keep in mind that not all activities will take place in the small perimeter that is monitored by your camera, so the ability to listen to the home in real-time is a benefit.
Keyless Entry Locks With Alarm Sounds
Many homeowners have already invested in keyless entry locks. These are often viewed as a convenience feature for homeowners because they do not have to worry about misplacing their keys or giving a key to their maid service or others who need to enter the home. The key code can easily be changed as needed to add security to the home. However, a new spin on the keyless entry lock is an audible alarm sound. With this product, the lock will emit a loud alarm signal that can alert you and others passing nearby that someone is trying to break into your home.
Smart Door Locks
You can also choose to invest in smart door locks. These are locks that you can monitor and even control through an app on your smartphone or mobile device. You do not have to give out a code to the maid service because you can simply unlock the door for the cleaners when they arrive at your home. You may have forgotten to lock your door that morning before you left for work, and you can use the app to lock the door remotely. You can also receive a notification each time the door is opened or unlocked.
Each of these innovative features can enhance the security of your home in different ways. When you want to gain better control over your home security, you may consider investing in some of these state-of-the-art products for your home in the near future.
There are several factors that will help you determine the value of your home when you want to sell it. Location, condition, layout, upgrades, and events relating to your home are all important when selling your home.
It’s All About Location
Anyone in real estate will tell you location, location, location is the first thing to consider when buying real estate. If your home is on a busy street, it’s going to be harder to sell unless someone is looking for that exact location.
If a buyer is looking to have a business inside the home, then having more exposure could be important. However, for a family, the most sought after location is in a cul-de-sac or dead-end street where traffic is kept to a minimum.
Your Home’s Condition Is Important
The home you are selling must be in excellent condition to ensure you get top dollar. Buyers are primarily looking for a home that is in move-in condition. If it needs painting, new flooring, a new roof, or new plumbing, it isn’t as desirable as a home that doesn’t need any work. Newer homes typically are in better condition than older homes, unless they have been well-maintained.
Your Home’s Layout
Is your floorplan functional? Most buyers prefer homes with open floorplans and ample kitchens, living areas, and bathrooms. Closets are also important as everyone needs storage space. The number of bedrooms a home has can also be important. Two bedrooms aren’t as popular or functional as three or four bedrooms. It’s also nice to have a flex room that can be a study, exercise room, or a formal dining room if need be. If a smaller home is well-designed, it can be easier to resale than a larger home.
Upgrades And Renovations
If you have an older home, but have upgraded the kitchen and bathrooms, then your home will be easier to sell. Updated appliances can also be a big plus when selling a home.
Natural Disasters And Other Events
If your home has been flooded, been through a fire, or damaged from wind or a storm, then that may cause the value to be less. If a buyer happens to talk to a neighbor who tells them a negative story, that may spook a buyer and cause them to look elsewhere.
Before putting your home on the market, you should call your real estate agent to help you with pricing. They can also suggest making repairs or changes to your home to help it sell.
Last week provided several housing-related reports including New Home Sales, Pending Home Sales and Existing Home Sales reports. Case-Shiller and FHFA also released data on home prices. The details:
Sales of Pre-Owned Homes Hit Nine-Month Low
According to the National Association of Realtors® (NAR), Sales of pre-owned homes dropped to a seasonally-adjusted annual reading 4.82 million sales in January as compared to an estimated reading of 4.95 million sales and December’s reading of 5.07 million existing homes sold. This was a month-to-month decline of 4.90 percent, and represented the lowest reading for existing home sales in nine months.
Lawrence Yun, chief economist for the NAR, said that a short supply of available homes coupled with rising prices contributed to the drop in sales. While mortgage rates remain near historical lows, higher home prices and short supply are negatively impacting affordability; this puts home buyers who rely on mortgages in competition with cash buyers.
More encouraging news arrived with the Commerce Department’s new home sales report; new home sales reached 481,000 sales on a seasonally-adjusted annual basis in January. Analysts had expected new home sales of 467,000 new homes based on December’s reading of 482,000 new homes sold in December.
Pending Home Sales Highest Since August 2013
The National Association of Realtors® reported that pending home sales rose by 1.70 percent in January as compared to December’s reading of -3.70 percent. Pending sales were up 8.40 percent year-over-year. Job growth, a little more leniency in mortgage credit standards and slower inflation were seen as factors that contributed to higher pending sales. Pending sales represent under sales contracts that have not closed.
Case-Shiller, FHFA Post Home Price Data
The Case Shiller 20-City Composite reported that home prices rose by 0.10 percent month-to-month and 4.50 percent year-over-year according to its index report for December. San Francisco, California had the highest year-over-year price gain at 9.30 percent, while Chicago, Illinois had the lowest year-over-year home price appreciation rate at 1.30 percent as of December.
FHFA reported that home prices for properties connected with Fannie Mae and Freddie Mac loans rose by 5.40 percent on a year-over-year basis as compared to November’ year-over-year reading of a 5.20 percent increase in home prices.
Mortgage Rates Rise
Freddie Mac reported that average mortgage rates rose across the board last week. The rate for a 30-year fixed rate mortgage rose by four basis points to 3.80 percent; the average rate for a 15-year fixed rate mortgage increased by two basis points to 3.07 percent and the rate for a 5/1 adjustable rate mortgage was also two basis points higher at 2.99 percent. Discount points for all loan types were unchanged at 0.60 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.
This week’s scheduled economic news includes consumer spending, construction spending and the Labor Department’s non-farm payroll and national unemployment reports. Weekly jobless claims and Freddie Mac’s PMMS report on mortgage rates will be released as usual on Thursday.
If your goal is to purchase a home, you may find that it’s challenging to save up enough money for your down payment. While this is something that many first time home buyers struggle with, it is by no means insurmountable. By making a few simple changes you will be able to accumulate the funds you need for your down payment.
Keep Track Of Your Spending
One of the reasons why it can be difficult to save money is that you aren’t even sure of where your money is going. While you may be aware of major expenses such as rent, car payments and utilities, it’s easy to lose track of many of the smaller bills and impulse purchases. If you aren’t keeping a budget, you should begin as soon as possible. Software programs and apps such as Mint.com can make this simple.
Consider If You Have Anything To Sell
You may be able to raise some quick cash by selling some personal belongings. Don’t part with something that will cause you regrets, such as a precious family heirloom. However, if you’re like many people, you probably have lots of items you no longer need. In addition to holding a garage sale, you could sell items such as jewelry, electronics, art or almost anything on eBay.
Refinance Credit Cards
Refinancing credit cards or any type of debt can help you save money on monthly bills. Balance transfers can often give you a more advantageous rate with credit cards. If you have a car loan, you may be able to find better terms with a different lender.
Find Another Source Of Income
In addition to finding ways to cut back on your spending, taking in some extra money every week can make it much easier to save up for that down payment. Perhaps you or your spouse could find time for a part time job. You might also consider starting a part time business, such as an online store that can be managed from home.
If you are creative about it, you can probably find many ways to save up for your down payment. You should also do plenty of shopping around when it comes to finding the best deal on a mortgage for your first home.