You’ve been searching for the perfect home for quite a while, and finally, you’ve found it! You get all of your finances in order and place an offer on the house.
However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.
Cash buyers are seen as desirable because they’re almost always a guaranteed quick close.
They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.
Follow the steps below to beef up your offer and get your foot in the door.
Less Expensive Homes
If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
20 Percent Down Payment
Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.
Take-It-Or-Leave-It Home Inspection
This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.
Fees
Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.
Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.
So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!
Bonus Tip – Get Pre-Approved NOT Pre-Qualified
What’s the difference?
Getting pre-qualified – is the initial step in the mortgage process, and it’s generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.
Getting pre-approved - is the next step, and it tends to be much more involved. You’ll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. (Typically at this stage, you will not have found a house yet, so any reference to “property” on the application will be left blank). From this, the lender can tell you the specific mortgage amount for which you are approved. You’ll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
In a competitive market, this lets the seller know that your offer is serious – and could prevent you from losing out to another potential buyer who is paying cash, or already has financing arranged.
Once you have found the right house for you, you’ll fill in the appropriate details and your pre-approval will become a complete application.
Extracted from http://www.michaelsmortgageblog.com
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Wednesday, September 25, 2013
Sunday, August 4, 2013
Real Estate Open House: Doorway To Trouble?
Extracted from Marilyn Lewis’ blog on July 23, 2013:
You may think you have nothing to lose by employing this traditional marketing tactic. But critics say that's not true -- and your agent has more to gain than you do.
Now that real estate has emerged from its coma and more would-be sellers are listing their homes for sale, it's worth asking whether a seller's open house, that traditional marketing technique of real estate agents, is worth the effort.
Open houses are more effective at marketing real estate agents than they are at selling homes, critics say. They also present an opening for thieves who pretend to be homebuyers but in fact are there to steal the owner's belongings or to case the joint with the idea of returning later.
For buyers, searching for a home has changed with the Internet. That would seem too obvious to bother pointing out except that the numbers are so interesting. A National Association of Realtors 2012 survey of homebuyers and sellers found that:
· In 2003, 16% of homebuyers surveyed found their new home through a yard sign or open house (the survey did not distinguish).
· In 2012, just 10% found their home through a yard sign or open house ("The Internet has edged out all other sources in the process," the report says").
· Most (41%) buyers today go online first to learn about homes for sale.
· Just 3% turn first to an open house to learn about properties for sale.
In defense of open houses:
Despite this shrinking effectiveness of the open house as a marketing tool, 55% of sellers surveyed said they'd used one. And, as NAR spokesman Walt Molony points out in an email, 45% of buyers -- even more than in the late '90s -- do attend them.
"Not well understood is the fact that open houses also are attended by real estate agents, where they learn firsthand about properties that may be of interest to their buyer clients. So while a buyer may not have first learned about the home they purchased through an open house, their real estate agent may have," Molony says.
In the experience of Seattle broker Ray Akers, though, open houses are "a waste of time."
"No one has ever walked in and said, 'I love it. Where do I sign?'" he says. "People walk onto a car lot and buy a car. People don't do that with houses."
Agents typically advise their sellers to lock up or remove valuables and prescriptions, but Akers still worries about thieves who lift unsecured items from the home or who visit to learn the layout and vulnerabilities so they can make a return visit later.
Thieves worked an open house "I don't think it's wise to have an open house in an occupied house," Akers says, talking by phone. He recalls staffing an open house once when a couple distracted him while, he later learned, their associate rifled through drawers in another room. Fortunately, the home was vacant.
"The following day it was reported that several open houses were hit by the threesome. Had my open house been an occupied home, they could have walked out with valuables, prescription medicine, or my client's I.D," Akers says.
Need help with real estate?
Call me.
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation!
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
You may think you have nothing to lose by employing this traditional marketing tactic. But critics say that's not true -- and your agent has more to gain than you do.
Now that real estate has emerged from its coma and more would-be sellers are listing their homes for sale, it's worth asking whether a seller's open house, that traditional marketing technique of real estate agents, is worth the effort.
Open houses are more effective at marketing real estate agents than they are at selling homes, critics say. They also present an opening for thieves who pretend to be homebuyers but in fact are there to steal the owner's belongings or to case the joint with the idea of returning later.
For buyers, searching for a home has changed with the Internet. That would seem too obvious to bother pointing out except that the numbers are so interesting. A National Association of Realtors 2012 survey of homebuyers and sellers found that:
· In 2003, 16% of homebuyers surveyed found their new home through a yard sign or open house (the survey did not distinguish).
· In 2012, just 10% found their home through a yard sign or open house ("The Internet has edged out all other sources in the process," the report says").
· Most (41%) buyers today go online first to learn about homes for sale.
· Just 3% turn first to an open house to learn about properties for sale.
In defense of open houses:
Despite this shrinking effectiveness of the open house as a marketing tool, 55% of sellers surveyed said they'd used one. And, as NAR spokesman Walt Molony points out in an email, 45% of buyers -- even more than in the late '90s -- do attend them.
"Not well understood is the fact that open houses also are attended by real estate agents, where they learn firsthand about properties that may be of interest to their buyer clients. So while a buyer may not have first learned about the home they purchased through an open house, their real estate agent may have," Molony says.
In the experience of Seattle broker Ray Akers, though, open houses are "a waste of time."
"No one has ever walked in and said, 'I love it. Where do I sign?'" he says. "People walk onto a car lot and buy a car. People don't do that with houses."
Agents typically advise their sellers to lock up or remove valuables and prescriptions, but Akers still worries about thieves who lift unsecured items from the home or who visit to learn the layout and vulnerabilities so they can make a return visit later.
Thieves worked an open house "I don't think it's wise to have an open house in an occupied house," Akers says, talking by phone. He recalls staffing an open house once when a couple distracted him while, he later learned, their associate rifled through drawers in another room. Fortunately, the home was vacant.
"The following day it was reported that several open houses were hit by the threesome. Had my open house been an occupied home, they could have walked out with valuables, prescription medicine, or my client's I.D," Akers says.
Need help with real estate?
Call me.
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation!
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Tuesday, July 30, 2013
Three Reasons to Buy that House NOW!
Here are three great reasons to consider buying a home today instead of waiting.
1.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.
2.) Mortgage Interest Rates Are Increasing
As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows. The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Extracted from kcmblog.com on 7/30/13
Mark Vandervest, P.C.
Principal Real Estate Broker
503-941-0775 Office
503-941-0776 Fax
Beaverton, OR 97007
www.TheOregonBroker.com
1.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.
2.) Mortgage Interest Rates Are Increasing
As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows. The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Extracted from kcmblog.com on 7/30/13
Mark Vandervest, P.C.
Principal Real Estate Broker
503-941-0775 Office
503-941-0776 Fax
Beaverton, OR 97007
www.TheOregonBroker.com
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