Friday, May 15, 2015

8 Tips for Winning Multiple Offer Situations

 According to a new report by the Dallas - Fort Worth area has the hottest housing market in the country right now.

With home inventory levels being significantly low coupled with the interest rates being historically low, newly listed homes are being sold within a few days or even hours of being listed!  These newly listed homes are often receiving multiple purchase offers, which is excellent news for sellers.

FOR HOME BUYERS, 8 Tips for Winning Multiple Offer Situations, buying a house in the hot marketHaving multiple offers, on the other hand, is not excellent news for buyers.  It is paramount for a buyer that is getting involved in a multiple offer situation, that they have a great real estate agent representing them that has experience with multiple offer situations.  Losing out on a house can be heartbreaking and frustrating for a buyer, so make sure when hiring the “right” agent to work with, find out what they do to help their clients win in multiple offer situations!

Get Pre-Approved, Not Pre-Qualified
Then get a bank’s pre-approval. It will show sellers that a lender has verified your income and credit score and determined you can afford payments on a mortgage for a certain amount.
Have all your paperwork in order – When submitting your offer, be prepared to show your proof of funds and where your cash is coming from, along with that all important pre-approval letter.

Have Fewer Contingencies
Keep contingencies reasonable and short. Offset a financing contingency with pre-approval and a strong earnest money deposit. Include a home inspection contingency, but tell sellers you will get it done within 7 – 10 days at the most.  That way, if the price tag on those repairs gets out of hand, you can back out of the deal but not tie up the property for too long.

Be flexible
Understanding what the sellers plans are is important in a multiple offer situation.  A great real estate agent should first find out either from the seller directly or from the sellers real estate agent, what the sellers plan is.  Selling a home can be a whirlwind. Any flexibility a buyer can offer a seller has the potential to reward them. Being lenient on closing or possession dates might make an offer more palatable to a seller in the midst of one of life’s most stressful times; moving.

Make a Large Deposit
A buyer who is buying a home must provide with an accepted purchase offer a deposit, known as an earnest money deposit or good faith deposit.  The amount of the deposit is variable.  In a multiple offer situation, the larger the deposit can indicate to a seller the serious intent of the buyer to purchase their home.

Make a Large Down Payment
Investors have been snapping up homes to flip or rent, and they usually come to the table with cash. Sellers love all-cash offers because they’re less likely to fall through before the sale closes. Bring as much cash to the table as makes sense for your personal financial situation.  A larger down payment also can help things move along quicker at the buyers lender and increase the likelihood of a mortgage commitment being issued.

 Be prepared to pay the list price... or more
If you’re looking for a home in a sought-after neighborhood, be aware that a winning offer will likely be at or above asking price. This knowledge will help you construct a competitive offer at the outset that is still within your comfort zone. If a buyer is in love with a home and there are multiple offers, the buyer needs to know, they will have one chance and one chance only at getting that home.  You may only have one shot to get it right, so make your best offer!

 Escalator clause 
This is a newer,  yet old technique, with which you agree to increase your offer if there’s a higher bid from another buyer.  Thus you can write into the contract that you will offer $1,000 or $5,000 more than the highest offer submitted.  Caution: Make sure you have a cap on that total amount – or you could be in for sticker shock.

Personal touch

Though it isn't standard practice in every market, personal notes from potential buyers can humanize a transaction and tip the scales in your favor. I’ve seen several instances where offers were accepted based on the letter, even though they weren’t the highest. This works particularly well if the sellers are attached to their home, but not always so well for estates, where family members may have competing priorities and be less emotionally attached to the home.

 Trust your Realtor to help you beat out the competition and remember to appeal to the home seller's emotional side, especially if they have lived in the house a long time. It can't hurt to try! 

CLICK HERE to search for best deals on homes! 

Catalyst Real Estate Experts 

Tuesday, March 31, 2015

10 Ways to Increase Your Home's Value

Buyers as well as sellers can benefit. That’s because purchasing a home is comparatively cheap right now, thanks to still-low interest rates (they recently dipped below 4 percent for a 30-year fixed mortgage).  And although home prices will continue to climb in 2015, they’re expected to do so at a slower rate than in 2014.
Your real estate professional is advising you to declutter, stage your home, plant new flowers, and make repairs and updates. You may be reluctant because of the costs, but your real estate agent is giving you sound investment advice that can actually make you more money when you sell your home.
There are 10 home improvements under $1,500 that add the most to home sellers' bottom line, as recommended by real estate professionals across the nation.
Home improvements are listed by the greatest return on investment (ROI):
Cleaning and declutteringNothing drives away would-be buyers faster than clutter, grime, and the weird smells that accompany a messy home. Bruce Irving, a renovation consultant and real estate agent based in Cambridge, Mass., tells clients to imagine their boss is coming to dinner with his or her spouse. “Your home should be at least that nice on the day of any open house,” he says. 
Remove personal items; wash and clean all areas inside and outside of house; freshen air; remove clutter from furniture, counters and all areas of the home; organize closets; polish woodwork and mirrors, etc.
Home staging: Add fresh flowers; remove personal items; reduce clutter; rearrange furniture; hide old furniture in the storage; add new props or furniture to enhance rooms; play soft music; hang artwork on walls, and more.
Lightening and brightening: Open windows; clean windows and skylights inside and outside; replace old curtains; remove other obstacles from windows that block out light; repair lighting fixtures; make sure windows open easily, among other suggestions.
Kitchen and Bathroom: Buyers want to see that a home is clean and well-maintained, especially in the bathrooms. “Simple improvements like caulking the tub or re-grouting the tile floor will go a long way in the mind of a buyer.
Paint Interior: A fresh coat of paint is the quickest way to transform a room. But it probably doesn't make sense to have your entire house repainted prior to putting it on the market.  (Sixteen percent of real estate professionals said interior painting is an important element in fostering the sale of a home.)
Enhance the ExteriorYou wouldn't go to a job interview without brushing your hair and putting on a crisp, clean outfit. Nor should you try to sell your home without sprucing up its exterior. Start with basic maintenance: mowing the lawn, trimming overgrown shrubs, applying a fresh layer of mulch to garden beds.
As with your home’s interior, it’s also important to make minor repairs, such as replacing cracked siding boards or repainting brick walls.

CLICK HERE to search for best deals on homes! 

Catalyst Real Estate Experts 

Source: Consumer Report Magazine 

Monday, March 2, 2015

Tips for Home Buying in Sellers Market

Any time the market changes, it's time to change strategies. During a buyer's market, buyers have the upper hand and can make more demands to sellers over their homes' price and condition. During a sellers' market, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms.
Don't be that buyer who wants to wait until the weekend to view a home in a seller's market. By the weekend, that home could be sold. Try to be one of the first showings. Sellers usually don't enjoy having buyers come through their homes at all hours of the day, so most would like to see their home sold quickly.
If you write a good offer, a fast offer and a clean offer, your chances of acceptance are far better than those of a buyer who is unprepared. It may astonish you to know how many buyers are often unprepared.

Most Important: 

  • Make a Good First Impression
  • Get Pre-approved by a Lender
  • Shop within your price range
  • Be flexible
  • Be ready to make an offer

FOR HOME BUYERS, home buying strategies in Dallas Fort Forth during this spring, home buying strategies in Mckinney and Plano during this spring, best tips before home buying process in Texas, how to make sure your offer is accepted, multiple offer situation strategies, catalyst real estate experts

Looking to buy home in Mckinney, Plano or Frisco area? Trust the professionals!
CLICK HERE to search for best deals on homes! 

Catalyst Real Estate Experts