Showing posts with label 55 and older. Show all posts
Showing posts with label 55 and older. Show all posts
Thursday, August 2, 2012
Saturday, April 21, 2012
Downsizing can be Emotional
Consider the Emotional Side of Downsizing your Home
People downsize for a variety of reasons, from the “empty nest” syndrome to convenience or hardship. Here are a few things to consider as you contemplate moving to a smaller home.
“Before any move, focus on how you want to live. People don’t think enough about why they’re moving,” said Mary Jo Zeller, director at Gero Solutions, which manages moves for seniors. “Increasing numbers of downsizers these days want to exchange the worry and expense of maintaining a large property, for the luxury of low maintenance and the opportunity for more leisure time.”
Emotional ties to the family home is one of the main barriers to downsizing, but equally, deciding on where to move to, and what style of property will best suit, can be just as daunting a prospect.
During the downsizing process you may be surprised at how attached you have become to your possessions and how difficult it might seem to part with them. A good tip is to start getting rid of your items a few months before your move so donate, recycle, e-bay and give away some of those items you really don’t need anymore. This will make the move much easier and your smaller home less cluttered.
Decorators recommend sketching floor plans for your new home to see where all your current furniture will fit. You shouldn’t wait until you move in to discover that there’s just no room for that armoire or extra stools.
For those already on the top of their property ladder, they may find that reversing course and heading down is the right decision for them.
Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential
Tuesday, December 20, 2011
The Pros and Cons of Home Selling During the Holidays
The Pros and Cons of Home Selling During the Holidays
One of the great debates in real estate concerns the prospect of keeping a house on the market during the holiday season. Some argue that the time between Thanksgiving and New Year’s Eve is busy enough without the worry of buying a home, while proponents like the prospects since those shopping are generally more serious about buying.
A downside for the seller is that the hectic time of year makes it harder to get your home ready at the drop of a hat if a call comes in. People are busy making food, wrapping presents and preparing for a house-full of guests.
However, your house will also be decorated with beautiful lights and decorations and will create a festive elegance to a home that will attract buyers.
Some agents believe that keeping your house on the market will have you appealing to a much smaller inventory of buyers who have very specific needs that your home might not match. Others counter that less inventory over the holidays means less competition and since more people have vacations this time of year, they actually have more time to search for their ideal home.
The holidays can provide a breather for homes that have been on the market awhile, as some use the time to remove property from the market in favor of a fresh start in January. However, you risk losing the buyer who may have been looking in December to capture tax benefits that many consider with their need to buy a home.
What’s the best solution? Of course it’s up to individual homeowners and their respective circumstances. Prospective sellers should discuss their holiday prospects in detail with their Prudential Real Estate agent. Working together, they can make holiday wishes come true.
Prudential Real Estate
One of the great debates in real estate concerns the prospect of keeping a house on the market during the holiday season. Some argue that the time between Thanksgiving and New Year’s Eve is busy enough without the worry of buying a home, while proponents like the prospects since those shopping are generally more serious about buying.
A downside for the seller is that the hectic time of year makes it harder to get your home ready at the drop of a hat if a call comes in. People are busy making food, wrapping presents and preparing for a house-full of guests.
However, your house will also be decorated with beautiful lights and decorations and will create a festive elegance to a home that will attract buyers.
Some agents believe that keeping your house on the market will have you appealing to a much smaller inventory of buyers who have very specific needs that your home might not match. Others counter that less inventory over the holidays means less competition and since more people have vacations this time of year, they actually have more time to search for their ideal home.
The holidays can provide a breather for homes that have been on the market awhile, as some use the time to remove property from the market in favor of a fresh start in January. However, you risk losing the buyer who may have been looking in December to capture tax benefits that many consider with their need to buy a home.
What’s the best solution? Of course it’s up to individual homeowners and their respective circumstances. Prospective sellers should discuss their holiday prospects in detail with their Prudential Real Estate agent. Working together, they can make holiday wishes come true.
Prudential Real Estate
Thursday, December 15, 2011
FURNACE AND FIREPLACE SAFETY......Lowe's Inside Out Home Improvement Tips | Produced by Inman News
Thursday, December 1, 2011
Looking to Buy a Home
Looking to buy a home? Checking out homes for sale is a lot of fun … but it’s also work since you want to choose a home that’s not only going to meet your needs but your budget too. So, what should you do to effectively view homes when you are looking for a house to buy?
First, consider how the home meshes with your wants and desires. The home you purchase needs to be functional for your family when you move in, since major renovations can be very costly. More weight should be given to things that cannot be changed, like location and floor plan. I advise my clients to look at it like a pie chart. 35% location (neighborhood, city, schools, etc) and 35% floor plan. Then move on to secondary items that can be changed such as price and condition and weight them at 15% each. Price can be negotiated and condition can be fixed.
As for the technical aspects of the home, leave that to the professionals. “Also consider that a licensed inspector will be brought in during the Option Period negotiated in the contract. Rely on the professionals and don’t make big decisions based on assumptions. But be sure to work with professionals you are comfortable with and don’t be afraid to ask for references.”
That said, buyers should be cognizant of the work that the home might need. “Aging systems like plumbing or electrical can quickly and easily turn a dream home into a money pit for a buyer who’s been lured in by some great curb appeal or staging.”
–Move.com Sarah W. Caron, Contributing Writer
First, consider how the home meshes with your wants and desires. The home you purchase needs to be functional for your family when you move in, since major renovations can be very costly. More weight should be given to things that cannot be changed, like location and floor plan. I advise my clients to look at it like a pie chart. 35% location (neighborhood, city, schools, etc) and 35% floor plan. Then move on to secondary items that can be changed such as price and condition and weight them at 15% each. Price can be negotiated and condition can be fixed.
As for the technical aspects of the home, leave that to the professionals. “Also consider that a licensed inspector will be brought in during the Option Period negotiated in the contract. Rely on the professionals and don’t make big decisions based on assumptions. But be sure to work with professionals you are comfortable with and don’t be afraid to ask for references.”
That said, buyers should be cognizant of the work that the home might need. “Aging systems like plumbing or electrical can quickly and easily turn a dream home into a money pit for a buyer who’s been lured in by some great curb appeal or staging.”
–Move.com Sarah W. Caron, Contributing Writer
Sunday, October 2, 2011
Friday, June 3, 2011
Work with A Realtor When Purchasing in an Active Adult Community
Most prospective buyers do not know the answer to this and we need to get the word out to retired folks that are in the market. Finding the perfect retirement community is a process and the more knowledge you have the better your experience will be.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
Wednesday, March 9, 2011
Why work with a Realtor for an Active Adult Community
Most prospective buyers do not know the answer to this and we need to get the word out to retired folks that are in the market. Finding the perfect retirement community is a process and the more knowledge you have the better your experience will be.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community. They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.
It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.
If you are in the market for new construction it is something that would be wise to consider.
Friday, February 11, 2011
5 Tips for First Time Home Sellers
5 Tips for First Time Home Sellers
Selling your home can be a seamless, smooth and successful transaction – but only if you have the right information to help you make it through the real estate maze. This is particularly important for first time home sellers, who certainly can’t afford to “experiment” with selling their house; because the consequences of any mistakes can cost thousands, or more likely tens of thousands of dollars.
However, generally speaking there are 5 solid tips that first time home sellers should know:
1. Have a customized plan. If there’s one thing that all first time home sellers must have – but not all of them do – it’s a customized plan. Each market is different. And within markets, there are sub-markets that are categorized into neighbourhoods, or types of homes, or proximity to amenities (e.g. malls, hospitals, schools, etc.), and more. It’s vital to work with your Realtor and create your unique plan. Even if you know someone who “was in the same boat as you and sold their house without any problem,” I can assure you that there are key details that will differ.
2. Stage your house. There was a time when simply cleaning your house was enough to make it attractive and compelling for buyers – those times have changed. Now, home staging is essential to not merely attracting the right kinds of buyers, but influencing them to make an offer that will make you happy. Staging goes far beyond merely cleaning. It looks at your house “though a buyer’s eyes” and proactively beautifies anything that may detract from your home’s overall appeal. As an experienced Realtor, I can always immediately tell the difference between a staged home and one that’s just merely clean. And guess what? Buyers can tell the difference, too!
3. Make any major repairs. Home staging is about cosmetic (how things look) improvements, but if there’s something that needs to be fixed – like, say, a big hole in the roof or the gutters are about the fly off – then you certainly want to repair those before you start showing your home. This not only helps attract favourable offers, but it prevents potential buyers from having contingencies in their offer (e.g. the seller must repair A, B and C by a certain date, and it must pass an inspection, or else the offer is null and void).
4. Be competitive. The real estate market is competitive. The price that your next door neighbour sells his or her house for will influence the value of your home. And the same goes for a comparable house in your neighbourhood, or even for a comparable house on the other side of the city. It’s important to work with a Realtor who will scope out the competition and give your home an edge.
5. Work with a Realtor. Your home is your biggest asset. Just as you wouldn’t perform surgery on yourself, you shouldn’t try and “go it alone” or, often just as mistakenly, choose a low-cost or discount option. When you’re talking about an asset that is worth hundreds of thousands of dollars, spending a few thousand dollars on the services of a Realtor more than pays for itself. You’ll get the peace of mind you need, plus you’ll access a variety of services that will help your home sell for top dollar. Obviously, there are more tips out there – and as noted above, your unique situation and plan will determine the selling strategies that work best for you. However, the 5 tips above are the essentials that you should always keep on-hand and ready to help you experience a smooth, stress-free and successful first time home sale.
Article Alley
Chris Proctor
Selling your home can be a seamless, smooth and successful transaction – but only if you have the right information to help you make it through the real estate maze. This is particularly important for first time home sellers, who certainly can’t afford to “experiment” with selling their house; because the consequences of any mistakes can cost thousands, or more likely tens of thousands of dollars.
However, generally speaking there are 5 solid tips that first time home sellers should know:
1. Have a customized plan. If there’s one thing that all first time home sellers must have – but not all of them do – it’s a customized plan. Each market is different. And within markets, there are sub-markets that are categorized into neighbourhoods, or types of homes, or proximity to amenities (e.g. malls, hospitals, schools, etc.), and more. It’s vital to work with your Realtor and create your unique plan. Even if you know someone who “was in the same boat as you and sold their house without any problem,” I can assure you that there are key details that will differ.
2. Stage your house. There was a time when simply cleaning your house was enough to make it attractive and compelling for buyers – those times have changed. Now, home staging is essential to not merely attracting the right kinds of buyers, but influencing them to make an offer that will make you happy. Staging goes far beyond merely cleaning. It looks at your house “though a buyer’s eyes” and proactively beautifies anything that may detract from your home’s overall appeal. As an experienced Realtor, I can always immediately tell the difference between a staged home and one that’s just merely clean. And guess what? Buyers can tell the difference, too!
3. Make any major repairs. Home staging is about cosmetic (how things look) improvements, but if there’s something that needs to be fixed – like, say, a big hole in the roof or the gutters are about the fly off – then you certainly want to repair those before you start showing your home. This not only helps attract favourable offers, but it prevents potential buyers from having contingencies in their offer (e.g. the seller must repair A, B and C by a certain date, and it must pass an inspection, or else the offer is null and void).
4. Be competitive. The real estate market is competitive. The price that your next door neighbour sells his or her house for will influence the value of your home. And the same goes for a comparable house in your neighbourhood, or even for a comparable house on the other side of the city. It’s important to work with a Realtor who will scope out the competition and give your home an edge.
5. Work with a Realtor. Your home is your biggest asset. Just as you wouldn’t perform surgery on yourself, you shouldn’t try and “go it alone” or, often just as mistakenly, choose a low-cost or discount option. When you’re talking about an asset that is worth hundreds of thousands of dollars, spending a few thousand dollars on the services of a Realtor more than pays for itself. You’ll get the peace of mind you need, plus you’ll access a variety of services that will help your home sell for top dollar. Obviously, there are more tips out there – and as noted above, your unique situation and plan will determine the selling strategies that work best for you. However, the 5 tips above are the essentials that you should always keep on-hand and ready to help you experience a smooth, stress-free and successful first time home sale.
Article Alley
Chris Proctor
Monday, January 24, 2011
Tips for Buying a Home in a 55 plus Community.
Buying in a 55+ community will be very similar to buying in any community but there are some differences to be aware of.
Assuming you already know the 55+ community you are interested in, just looking within the community itself, here are some questions to explore when buying a home:
1. Find out about the monthly homeowner's association fee; what does it cover, how much is it and when is it expected to go up. If the community is older, find out if any special assessments are coming up or expected.
2. Get a copy of the homeowner association documents. Before you buy, review the rules of the association. Find out the rule for any areas of special interest to you, like pets, additions like building a patio or fence, visitors, children, leasing your property, etc.
3. Find out about the amenities. Remember in this economy many clubhouses and other amenities that were planned will not get build for some time, if ever.
4. Find out about activities offered. How often, what types, any extra fees?
5. Look at resales, not just brand new properties. Maybe you can get a deal on a resale that has been upgraded substantially. Preview listings with a resale real estate agent and ask questions about the property and the community as well.
6. Talk with the current owners/residents to see how happy they are living in the community and how happy you will be living with them. Are they your age? People love to talk, so ask questions.
7. Find out about the cost of utilities and any related cost of ownership.
8. Find out the cost of any upgrades, which appliances, counter tops, floor coverings, etc come with the property.
9. For newer communities, how strong is the builder and/or developer of the community? Is the community just getting started and right after you buy if goes in to foreclosure, will the community be a ghost town? There is less risk in a community that is further along in its development.
10. Remember buyer's agents also handle 55+ homes.
I hope these questions will help in your search process.
Copyright 55communityguide.com
Assuming you already know the 55+ community you are interested in, just looking within the community itself, here are some questions to explore when buying a home:
1. Find out about the monthly homeowner's association fee; what does it cover, how much is it and when is it expected to go up. If the community is older, find out if any special assessments are coming up or expected.
2. Get a copy of the homeowner association documents. Before you buy, review the rules of the association. Find out the rule for any areas of special interest to you, like pets, additions like building a patio or fence, visitors, children, leasing your property, etc.
3. Find out about the amenities. Remember in this economy many clubhouses and other amenities that were planned will not get build for some time, if ever.
4. Find out about activities offered. How often, what types, any extra fees?
5. Look at resales, not just brand new properties. Maybe you can get a deal on a resale that has been upgraded substantially. Preview listings with a resale real estate agent and ask questions about the property and the community as well.
6. Talk with the current owners/residents to see how happy they are living in the community and how happy you will be living with them. Are they your age? People love to talk, so ask questions.
7. Find out about the cost of utilities and any related cost of ownership.
8. Find out the cost of any upgrades, which appliances, counter tops, floor coverings, etc come with the property.
9. For newer communities, how strong is the builder and/or developer of the community? Is the community just getting started and right after you buy if goes in to foreclosure, will the community be a ghost town? There is less risk in a community that is further along in its development.
10. Remember buyer's agents also handle 55+ homes.
I hope these questions will help in your search process.
Copyright 55communityguide.com
Friday, January 7, 2011
Home Sellers: Cut to the Chase in Home Repairs and Enhancements
2011 opens as a strong buyer’s market so home sellers must be on their toes to give their homes maximum appeal. Not only should sellers complete the home repairs they know must be made, they should also hire a certified home inspector to thoroughly and impartially evaluate their properties. If this inspection results in a fix-it list, review the list with your real estate professional to establish necessities and priorities. Depending on your budget and objectives, you may want to repair only items that could cause significant deterioration to your property, such as a leaky roof. Ideally, the closer you can get your home to “move-in-ready” status, the more likely you are to attract today’s cautious and discerning buyers. Among the most common repairs and enhancements yielding immediate buyer appeal include:
Paint inside and outside in neutral colors
Steam clean or replace carpets
Polish or replace hardwood floors
Clean or re-grout kitchen and bathrooms
Replace light fixtures
Change light bulbs throughout and replace wall-switch covers
Repair dripping faucets
Fix sticking door
Repair broken fencing
Home sellers wanting to do more should consider the findings of Remodeling magazine’s 2010-’11 Cost vs. Value Report, released in December 2010. The survey used input from REALTORS in 80 cities to rank home remodeling projects according to those that bring the greatest cost recovered at sale. Many of the top projects focus on exterior replacements, as replacements are generally less expensive than other types of projects and they add all-important curb appeal – essential for today’s competitive market or any other. The Top Five projects in the Cost vs. Value Report include:
No. 1 – Entry door replacement (steel)
No. 2 – Garage door replacement (four-section door, reuse existing motorized opener)
No. 3 – Siding replacement (fiber-cement siding)
No. 4 – Kitchen remodel (minor: new cabinet doors, drawers and hardware, plus new energy-efficient appliances, flooring, counters, sink and faucet)
No. 5 – Deck addition (wood)
When the dust clears and projects are complete, be sure that you and your real estate professional document your repairs and enhancements, and share the report with prospective buyers. Walk prospects through the enhancements and include their costs. A home in good condition demonstrates pride of ownership. Taking the time to make enhancements helps ensure your home is presented in its best-possible light, primed for sale.
Paint inside and outside in neutral colors
Steam clean or replace carpets
Polish or replace hardwood floors
Clean or re-grout kitchen and bathrooms
Replace light fixtures
Change light bulbs throughout and replace wall-switch covers
Repair dripping faucets
Fix sticking door
Repair broken fencing
Home sellers wanting to do more should consider the findings of Remodeling magazine’s 2010-’11 Cost vs. Value Report, released in December 2010. The survey used input from REALTORS in 80 cities to rank home remodeling projects according to those that bring the greatest cost recovered at sale. Many of the top projects focus on exterior replacements, as replacements are generally less expensive than other types of projects and they add all-important curb appeal – essential for today’s competitive market or any other. The Top Five projects in the Cost vs. Value Report include:
No. 1 – Entry door replacement (steel)
No. 2 – Garage door replacement (four-section door, reuse existing motorized opener)
No. 3 – Siding replacement (fiber-cement siding)
No. 4 – Kitchen remodel (minor: new cabinet doors, drawers and hardware, plus new energy-efficient appliances, flooring, counters, sink and faucet)
No. 5 – Deck addition (wood)
When the dust clears and projects are complete, be sure that you and your real estate professional document your repairs and enhancements, and share the report with prospective buyers. Walk prospects through the enhancements and include their costs. A home in good condition demonstrates pride of ownership. Taking the time to make enhancements helps ensure your home is presented in its best-possible light, primed for sale.
Thursday, October 14, 2010
When the Perfect Home and Price Pop Up.......
Make Your Offer Stand Out
Real estate consumers are realizing that there has rarely been a better time to buy a home. In fact, historically low mortgage rates coupled with lower home prices have even sparked bidding competition in markets around the country.
A good home in a solid location may attract ample attention only hours after being listed. Home buyers can make their offers stand out from the rest through one or more of the following strategies:
Price. Obviously, price tends to be the primary consideration for sellers. When you’re competing for a home, to get an edge, think about adding a clause stating that you will beat the highest offer by “x” dollars up to “x” amount. Cash offers can be more attractive to sellers as well. Although sellers will receive their money at closing whether buyers pay with cash or take out a loan, cash offers don’t require lender approval.
Financing. It’s not enough to be pre-qualified. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Your lender will thoroughly evaluate your application—including verifying employment information and financial disposition—then clear you for a loan of a determined amount. Having your loan pre-approved gives you a sizeable advantage by putting you on equal footing with cash buyers.
Good Faith Deposit. Buyers offering a larger-than-customary amount of “earnest money,” a deposit that accompanies an offer, may get a seller’s attention. By committing more money up front, buyers demonstrate greater sincerity and motivation to close the transaction. Your real estate professional can guide you as to the appropriate sum for your specific transaction.
Contingencies. Consider minimizing contingencies, those clauses that allow buyers to back out of a contract if certain conditions are not met. For example, it’s common for buyers to make the purchase contingent upon their securing satisfactory financing. Obviously, offers with the fewest conditions tend to be more attractive to sellers.
From a contingency standpoint, first-time buyers are often better prospects for a seller’s home than move-up buyers. That’s because first-time buyers’ offers are not contingent upon the sale of a present home. Even if a move-up buyer has an offer in hand, that buyer’s offer may be contingent on another contingency, and so on down the line. If one transaction derails, they all might.
Relationship. Help the seller get to know and identify with you by looking for ways to connect. Find common interests, such as a shared appreciation of gardening. You can then persuade the seller that her prize roses will be well tended. Share brief family stories. The more the seller gets to know and like you, the better chance your offer will stand out in a competitive environment.
Considerations for Short-sale and Foreclosure Transactions – Bank-owned properties represent a significant portion of today’s housing inventory. Competition can be most keen for these homes as their prices can run 10% to 20% below current market value.
Banks conduct extensive research to set these prices and generally base them on current market value less the cost of required repairs. Make your offer based on your own check of comparable sales and other due diligence. Banks won’t get offended by a low offer, yet a realistic offer will more likely keep you in the running.
Remember, patience is essential when buying bank-owned property as the process can take up to six months and longer.
Work with a local Realtor to buy your dream home or investment property. His or her knowledge, skill and expertise will help you make sound real estate decisions today or any other time.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Real estate consumers are realizing that there has rarely been a better time to buy a home. In fact, historically low mortgage rates coupled with lower home prices have even sparked bidding competition in markets around the country.
A good home in a solid location may attract ample attention only hours after being listed. Home buyers can make their offers stand out from the rest through one or more of the following strategies:
Price. Obviously, price tends to be the primary consideration for sellers. When you’re competing for a home, to get an edge, think about adding a clause stating that you will beat the highest offer by “x” dollars up to “x” amount. Cash offers can be more attractive to sellers as well. Although sellers will receive their money at closing whether buyers pay with cash or take out a loan, cash offers don’t require lender approval.
Financing. It’s not enough to be pre-qualified. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Your lender will thoroughly evaluate your application—including verifying employment information and financial disposition—then clear you for a loan of a determined amount. Having your loan pre-approved gives you a sizeable advantage by putting you on equal footing with cash buyers.
Good Faith Deposit. Buyers offering a larger-than-customary amount of “earnest money,” a deposit that accompanies an offer, may get a seller’s attention. By committing more money up front, buyers demonstrate greater sincerity and motivation to close the transaction. Your real estate professional can guide you as to the appropriate sum for your specific transaction.
Contingencies. Consider minimizing contingencies, those clauses that allow buyers to back out of a contract if certain conditions are not met. For example, it’s common for buyers to make the purchase contingent upon their securing satisfactory financing. Obviously, offers with the fewest conditions tend to be more attractive to sellers.
From a contingency standpoint, first-time buyers are often better prospects for a seller’s home than move-up buyers. That’s because first-time buyers’ offers are not contingent upon the sale of a present home. Even if a move-up buyer has an offer in hand, that buyer’s offer may be contingent on another contingency, and so on down the line. If one transaction derails, they all might.
Relationship. Help the seller get to know and identify with you by looking for ways to connect. Find common interests, such as a shared appreciation of gardening. You can then persuade the seller that her prize roses will be well tended. Share brief family stories. The more the seller gets to know and like you, the better chance your offer will stand out in a competitive environment.
Considerations for Short-sale and Foreclosure Transactions – Bank-owned properties represent a significant portion of today’s housing inventory. Competition can be most keen for these homes as their prices can run 10% to 20% below current market value.
Banks conduct extensive research to set these prices and generally base them on current market value less the cost of required repairs. Make your offer based on your own check of comparable sales and other due diligence. Banks won’t get offended by a low offer, yet a realistic offer will more likely keep you in the running.
Remember, patience is essential when buying bank-owned property as the process can take up to six months and longer.
Work with a local Realtor to buy your dream home or investment property. His or her knowledge, skill and expertise will help you make sound real estate decisions today or any other time.
Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Wednesday, October 6, 2010
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