Realty Executives Midwest
For buyers who are just entering the market or for those who have lost out on one or several properties, here are a few tips for putting your best foot forward and successfully navigating a multiple-offer situation.
Follow What is Happening in the Market.
Are homes selling over asking price? Is seller’s underpricing to encourage multiple offers? What are similar properties selling for? An experienced agent, who you trust, can help to determine appropriate value based on the current market trends and can assist in negotiations and advice throughout the process.
Come in Strong Upfront.
If you know, or suspect, that you’re entering a multiple-offer situation, you’ll want to come in strong from the very beginning. Some buyers try to come in low initially as a negotiation strategy; however, if the property is priced well and is expecting multiple bidders, you may not want to risk having the seller disregard your offer immediately for not being a serious contender.
Many agents suggest their sellers counter all of the offers in a multiple-offer situation, but that decision is ultimately up to the seller. They may choose to counter all offers, they may only counter a portion of the best offers, or they may decide to choose an offer after the initial submission with no counters at all.
One of the most important factors when a seller is considering multiple offers is their belief that the chosen buyer is serious about buying the property, and that they have the ability to meet the terms and close the sale. One of the best ways to do this is to come in strong right from the start.
Come in Clean and With as Few Contingencies as Possible.
Make your offer as clean as possible and package everything to be submitted together in a coherent way. You don’t want the seller or their agent to have to chase you for paperwork, signatures or proof of funds.
Unless you’re paying all cash, it may be difficult or impossible to come in completely non-contingent, though there are ways to make your offer more appealing.
If you need financing, get a Pre-Approval Letter (vs. Pre-Qualification Letter) from your lender to prove your chances of getting your mortgage approved are excellent.
Be Flexible With the Seller’s Needs.
It sounds simple, but many agents and their buyers don’t take advantage of this simple step. Another easy way to make your offer stand out above the others is to have your agent find out what terms the seller is looking for and meet those needs.
For example: Do they want a long escrow period because their next home won’t be ready yet? Are they requesting a leaseback? Do they want to close quickly because they have already purchased and closed on a new property? Price and financing are not always the number one concern to a seller, so meeting their other terms is another way to make your offer more attractive.
Create a Personal Connection.
Can a personal letter really work? The answer is yes, depending on the property, adding a personal touch to your offer can have an impact.
A personal letter to the seller letting them know how much you love their home and how much you’ll enjoy it and will take care of it may be just the edge you need to overcome another prospective buyer.
Taking the time to write a thoughtful note also shows your dedication to the purchase and ensures the seller that you are a serious buyer.
Don’t Get Too Caught Up in the Bidding War.
Try to stay level-headed and make sure that you are completely comfortable with your offer and terms and that you're not over-bidding just to win the property, only to feel you’ve overpaid afterwards. You want to come in with your best offer possible, as long as it still complies with your needs and goals.
Stay Positive and Keep Your End Goals in Mind.
It can be incredibly frustrating to buy a home in a competitive marketplace but it is normal for buyers to lose out on several homes before one sticks.
Sometimes it takes a few times around to fully understand the process and what is necessary to win in a multiple-offer situation. Working with a professional who you trust and respect can help the process feel less daunting.
*Partial resource: Excerpts from an article How to Navigate a Multiple Offer Situation written by Sally Forster Jones 8/5/2016 for US News
Contact us today.
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Are you preparing for a move? You probably know to notify your friends and loved ones, but there turns out to be a surprising number of people and organizations who need to know about the address change. A recent article from Zillow included a comprehensive checklist which covers pretty much everyone you will need to notify:
Be sure to read the article to check out advice for notifications when dealing with each of these 12 parties who need to be notified. Read all about it here: http://www.zillow.com/blog/who-to-notify-when-moving-187286/)
While certain companies and institutions usual have formal processes for notification of an address change, it can be a good idea to go ahead and get some inexpensive postcards printed up announcing your move.
If you’re looking for other superb moving tips, don’t miss out on the website Moving.Tips (http://http://moving.tips/) It contains a wealth of information on issues and questions surrounding making a move, including articles such as “Why cheaper is not necessarily better when moving house?” and “How to say goodbye to a home when moving?”
Moving can be stressful, but there’s a lot you can do to reduce stress and even add some much needed fun and satisfying emotional transitions to the event.
Thinking about a move? We can help you buy or sell your next home; Contact us today.
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
If you’re a first-time buyer and are confused about what a Home Owners Association is (or does), you should definitely ask the right questions before you consider buying. Basically, an HOA is an organization which is designed to protect the quality of life and property values for owners within a neighborhood or shared building. How they do so, though, can vary widely. Typically when you purchase a residence subject to an HOA, you’ll be required to pay monthly dues which often contribute to major repairs or maintenance or the upkeep of common/shared resources.
But HOAs can also have a significant impact on what you can and can’t do with your own home. The HOA’s rules are detailed in what’s called covenants, conditions and restrictions (CC&Rs). To understand how strict an HOA is (or isn’t) you’ll want to understand the details of its CC&Rs before you consider buying. These might have reasonable restrictions, such as keeping junk cars out of the front lawn, or they might extend all the way to what color you can paint your garage door.
HOAs are typically of greater concern to condo buyers than single-family home buyers, but they cannot be overlooked when searching for your next residence. Here are some questions you’ll want to ask yourself and the HOA before you make an offer:
If you like the idea of a group of neighbors who set community or building standards, a residence with an HOA may be for you. But if not, don’t worry! There are lots of other homes out there. Get in touch with Realty Executives Midwest today.
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
The dream of home ownership is about more than just a stable place to live, exempt from the whims and decisions of landlords. For many, home ownership is a piece of the wealth building picture, essential to a future retirement or financial independence. The idea is pretty basic: You purchase a home and pay it down while hoping the value of the home increases over time. Generally speaking, this is what happens over a long enough period of time. As you go, you build what’s called “equity.”
Equity is defined as “the market value of a homeowner's unencumbered interest in their real property—that is, the sum of the home's fair market value and the outstanding balance of all liens on the property.” If you were to sell your home and pay off the balance of the mortgage (and any other debts, such as home equity credit lines or liens), the cash you would have leftover is your equity. Your “equity position” changes over time due to a variety of factors.
As you’ve probably noted, the biggest variable in your home equity position is the home’s true market value. A variety of factors can influence your home’s value, including: Market demand for homes in your area, local amenities, schools, your home’s particular features, upgrades you’ve made, condition issues, and quite a bit more. So how can you tell your equity position?
First, you need to know what you owe on your home. This is as simple as checking your mortgage statement to see what your principle balance is on the loan. This number can differ slightly from your actual payoff amount due to closing dates, interest, and other issues determined during the sale, but generally speaking your principle balance is the number you need to know. If you have any other debt on the home, you need to add the value of this debt to the principle balance. This might include credit lines, liens, or second mortgages, for example.
Next, you need to know the value of your home. While there are sites such as Zillow and Trulia out there which will tell you what your home’s value is, these “automated valuation models” are generally not very accurate when it comes to your home’s value, as they exclude many crucial factors. Often they come in quite a bit higher. They can, however, give you an idea of general changing trends in your market over time.
Hiring an appraiser is one way to determine your home’s value from a more bank-like perspective. While an actual sale may be above the appraisal, this thorough, conservative option is a good way to go. The downside? You may have to pay up to $500 for the appraisal.
Of course, we are happy to help you get a handle on your home’s current value with a comparative market analysis (CMA). Just get in touch today.
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
