Buying Tips, First Time Buyer, Offer & Acceptance, Preparing to Sell, The Buying Process, The Selling Process, Tips For the Buyer

Navigating A Home Sale Contingency

If you own a home and need to sell your home in order to qualify for the purchase of a new home, you will need to satisfy the “home sale contingency.”  Here is some information on them.  Your attorney can assist with it, answer questions as can your agent!

If a Buyers Property is Listed & Under Contract:

If the buyers property is the subject of a contract of sale, the buyer will need to:​

  1. Provide a copy of the contract of sale to the Sellers agent and to the seller at the time of signing the offer.​
  2. Notify agents of any changes in contract of sale through the process.​
  3. Notify the sellers real estate professionals of the established closing date within 3 days of setting the  closing date.  That way you can align however it is needed. ​

If a Buyers Property is NOT Under Contract Nor listed:

  1. Buyer will list the property with a licensed real estate broker within 5 business days after the attorney review period is completed OR if the contract is disapproved within 5 business days after parties agree to the contract.​
  2. A copy of the executed listing agreement needs to be provided within 3 business days of execution.​
  3. The buyer agrees to use their best effort to sell the property including listing it at a Reasonable price on reasonable terms and submitting it to the MLS.​
  4. Once a contract is entered into, the buyer will furnish the contract within 3 days of the fully executed contract and update of any changes throughout. ​
  5. Furnish closing date within 3 days of it being set to align the dates as needed.​
  6. If the contract is voided and doesn’t work out, notify the seller ​
  7. Set time of performance dates to adhere to.​

If you have a home sale contingency, note that…. 

  1. The Seller can/will continue to market the property​
    looking for non contingent buyers.​
  2. If an offer is submitted to the seller, seller shall notify​
    buyer and give 2 business days time to allow the buyer ​
    to deliver a way to drop the contingency​

Buying Tips, First Time Buyer, Offer & Acceptance, The Buying Process, Uncategorized

After the Offer!

  • Request & Review the Property Condition Disclosure Statement.​
  • Did you observe any repairs? What will they cost? Are the sellers willing to share the cost?​
  • How long has the home been on the Market?​
  • What is the current market status? Is it a Buyers / Sellers market?​
  • Are there multiple offers in?​
  • What is the sellers situation? Have they identified their next location? Think of your timeline needed.​
  • Ensure it meets the items on your wish list? You can change cosmetic things, but you CANNOT change location or property size.  Also, adding / changing layouts of rooms will require more time and money.​
  • Prepare the Contract of Sale (your offer) & your agent will submit it!​
  • Upon receipt from the seller, negotiations will begin.  A seller can do any of the following while they work to obtain the most solid offer to get their house sold. They can…​
  • Counter your offer.  This can volley back and forth (while the home remains on the market!)​
  • Accept your offer.​
  • Reject your offer with no counter.​
  • Ask for your Highest & Best. This is typically when multiple offers are in.  ​
  • Timing & Deadlines will unfold for the ​
    next steps​
  • Real Estate Professionals should be​
    Lined Up for the next steps​
  • I will help you through it all !​
Buying Tips, First Time Buyer, Offer & Acceptance, The Buying Process, Uncategorized

The Offer Process

  • Request & Review the Property Condition Disclosure Statement.​
  • Did you observe any repairs? What will they cost? Are the sellers willing to share the cost?​
  • How long has the home been on the Market?​
  • What is the current market status? Is it a Buyers / Sellers market?​
  • Are there multiple offers in?​
  • What is the sellers situation? Have they identified their next location? Think of your timeline needed.​
  • Ensure it meets the items on your wish list? You can change cosmetic things, but you CANNOT change location or property size.  Also, adding / changing layouts of rooms will require more time and money.​
  • Prepare the Contract of Sale (your offer) & your agent will submit it!​
  • Upon receipt from the seller, negotiations will begin.  A seller can do any of the following while they work to obtain the most solid offer to get their house sold. They can…​
  • Counter your offer.  This can volley back and forth (while the home remains on the market!)​
  • Accept your offer.​
  • Reject your offer with no counter.​
  • Ask for your Highest & Best. This is typically when multiple offers are in.  ​
  • Timing & Deadlines will unfold for the ​
    next steps​
  • Real Estate Professionals should be​
    Lined Up for the next steps​
  • I will help you through it all !​
Buying Tips, Offer & Acceptance, The Buying Process

How to Write an Offer Letter That Will Win the House

http://www.realtor.com/advice/buy/the-offer-letters-that-won-the-house/

You love the house sooo much. The problem is, lots of other people probably do, too. How can you stand out in a competitive environment? Try writing an offer letter that knocks the seller’s socks off.

“Making the highest offer is typically the best way to win a bid, but when a seller is faced with two very similar offers, a letter can oftentimes tip the scales toward yours,” says Realtor® Mindy Jensen of Longmont, CO.

 

 

So how do you use writing to woo a seller to your side? Check out these snippets from winning offer letters, then learn how you can follow in the footsteps of these real-life buyers.

 

A winning game plan

The words that wooed: After seeing a number of properties that have not “spoken” to us in a significant way, we were delighted to discover your home, with its mixture of charm and warmth. We envision family gatherings within its open living area and drinking coffee while watching our children play in the pool. As basketball is in the family blood (Steve is a former employee of the National Basketball Association), I’m sure there will be plenty of pick-up games for everyone.

Why it worked: “My clients were up against a better offer from a builder, but the seller couldn’t bear the idea of their house being torn down,” explains Anne West, a Realtor with Coldwell Banker Residential Brokerage in Winnetka, IL. “They wanted to sell their home to someone who would raise their family there and who would love it as much as they had, and my clients were able to articulate that they were just that family.”

How to do it yourself: Find out some backstory about the owners or other bidders if you can. The tidbit about the builder, for example, was crucial knowledge. But for any property, most sellers who have taken good care of their homes want to make sure they will be loved by the next owner, too, so let your enthusiasm shine to gain the edge over pricier offers.

———

Must love dogs

The words that wooed: My husband and I have been searching for our first home, and we believe your house will be the perfect place to raise our growing family. Our son is due in September, and I know he will be so happy playing in the fabulous backyard with our two dogs.

Why it worked: “The seller appreciated her praising specific things that were obviously installed by the homeowners,” says Mindy Jensen, a Realtor in Longmont, CO. “But the tipping point was when she included a picture of her dog with the letter. The seller specifically allowed her to match the highest offer, based solely on her dog.”

How to do it yourself: Make yourself relatable. Take a cue from the lovingly tended roses or, in this case, a dog, and try to glean what the seller values. It could be kids, a dog, or even a love of gardening. If you share those same interests, offer them up. You never know what phrases may spur the seller to choose your offer over another.

———

This way to Easy Street

The words that wooed: We are not looking for a bargain, just a fair price for something nice. This would be a cash sale, and we could close quickly or at a convenient time for you.

Why it worked: “This was a no-brainer for the seller, because you can tell these folks are clued in, and money talks,” says Bruce Ailion, a real estate agent with Re/Max Atlanta. “This letter makes it clear that this is going to be an easy transaction: cash sale, market price, close quickly or on your timetable.”

How to do it yourself: Get your ducks in a row before you make an offer. Even if you’re not doing an all-cash offer, have a pre-approval in hand. Especially in a seller’s market, make it clear that you are going to be easy to work with and that the seller can call the shots.

———

Sentiment sells

The words that wooed: We grew up in the city and our parents live very close by; one of them is living very close to your home. It’s important to find a home close to our family, so that when we start our family, our children will be close to their grandparents.”

Why it worked: “If the seller has raised their own family there, they have an emotional connection to the house,” says David Feldberg, broker/owner of Coastal Real Estate Group in Newport Beach, CA. “Talking about several generations plucks those heart strings.”

How to do it yourself: Include details about your family and connection to the area. And always include a photo. When the seller is considering multiple offers, the photo makes your offer stand out from the pack.

———

Flattery can get you everywhere

The words that wooed: From the moment I walked in, I knew this place felt like home. (Well if I am being honest, I fell in love with the wallpaper in the bathroom first!! ha-ha.) I also really appreciate the attention to detail in the upgrades you made: the stain on the floors, the wall colors and the charming lights, and I absolutely love your furniture selection.

Why it worked: “My client clearly admired the seller’s decor decisions,” says John Michael Grafft with Berkshire Hathaway Koenig Rubloff in Chicago. “It turned out she was an interior designer. Everyone appreciates a sincere compliment.”

How to do it yourself: Find details that you love about the home and mention them so it’s clear you’re not sending a generic letter to every potential property seller. The seller chose those design elements, so find something you love that you can mention sincerely. Even if you are planning to change everything about a place you consider a fixer-upper, compliment the fact that the seller took great care of the home.

———

Short and sweet

The words that wooed: Semper fi.

Why it worked: “The rest of the letter was great, but in all honesty, that phrase at the end of his letter sealed the deal. He and the seller were both Marines,” says Mindy Jensen, a Realtor in Longmont, CO.

How to do it yourself: Common interests can make all the difference, but don’t lie. That goes for military service, of course, but also other details. Don’t tell the seller that you want to raise your children there, if you don’t have any. Instead, if you hope to eventually have a family, you can say, “I hope to someday be able to raise my children in this beautiful home.”

Offer & Acceptance, The Selling Process, Uncategorized

Get a Lowball Offer? Here’s How to Turn It Into a Home Run

http://www.realtor.com/advice/sell/get-a-lowball-offer-on-your-home/

A seller’s worst nightmare is, of course, not being able to sell his home (it’s right up there with having his front yard designated as a Pokemon Go gym). But also scoring very high on the would-be disaster list is getting a lowball offer—as much as 10% to 30% below list price—from a buyer who is in serious need of a reality check.

So what’s up with that? Did the buyer not see the gorgeous kitchen you remodeled? Or the beautiful landscaping in the backyard? What about the awesome home fitness center you built? Heck, this home is worth every penny that you’re asking for!

Stop, take a deep breath, and focus on the patch of blue in this stormy sky.

“A lowball offer can lead to a successful sale if the seller plays their cards right,” says Kimberly Sands, a broker at Coldwell Banker Advantage in Apex, NC. After all, you’re the one who ultimately decides whether to accept or reject the bids that come your way.

In other words, the ball (or rather, lowball) is in your court. So take these steps to turn a bunt of an offer into a home run.

First, don’t get insulted

Just because a buyer starts with a low offer doesn’t necessarily mean the person is trying to take advantage of you. She might be moving to the area from a market where lowball offers are the norm, or where home prices are substantially lower than they are in your neighborhood.

“There’s a natural tendency to get upset when you receive a lowball offer,” says Sands, adding that the initial bid is a starting point. “There’s usually room for negotiation, so I never tell a client to reject an offer outright.”

Respond gracefully

A little gratitude—even if you’re not exactly thrilled about the size of the offer—can go a long way.

“It doesn’t do you any good to let the buyer know that you think their offer is rubbish,” says Sands. Indeed, responding in a negative tone can potentially kill the deal for good. “It sounds like common sense—don’t piss off the buyer—but many sellers get caught up in their emotions,” says Sands.

Put yourself in the buyer’s shoes: Would you want to raise your offer for a rude seller? Probably not. Thus, when sending the buyer your counteroffer, cushion your response. Try: “We greatly appreciate your offer and we’d love to work with you. Here is our counteroffer.”

Write a strategic counteroffer

Assuming you priced the home well, don’t feel pressure to drastically slash your asking price.

“Some people feel so eager to sell their home that their counteroffer is actually too low,” Sands laments. It’s OK to give up some ground, but you don’t need to meet the buyer halfway.

Offer the buyer a slight price reduction—$5,000 to $10,000 for a $300,000 home, or $10,000 to $20,000 for a $1 million home—and briefly explain your reasoning. You could provide information on the comparable properties that you used to determine your list price (you did look at comps, didn’t you?). Another option: Have your agent draw the buyer’s attention to some of your home’s great features (e.g., your new energy-efficient HVAC system).

Expect a counteroffer to your counteroffer

Agreeing on a purchase price can feel like a chess game: You make one move and the buyer makes a countermove (in this case, a counteroffer).

“When a buyer comes in with a lowball offer, the buyer and seller might go back and forth for a while before both parties agree on a sale price,” says Sands, adding that sellers need to remain patient throughout the process.

Negotiate other terms

Having trouble settling on a sale price? There are other ways to sweeten the deal in your favor. Depending on your timeline, you could ask the buyer for an earlier settlement date. If you’ve already purchased your next home, for example, settling in 30 days instead of 45 would reduce the amount of time you’ll need to carry two mortgages simultaneously.

You could ask the buyer for fewer contingencies. One that would help you save money: Persuade the buyer to make her home inspection contingency an information-only inspection, which basically means that you won’t be asked to make any repairs.

Another negotiating point: Get the buyer to increase her earnest money deposit. This would give you greater assurance that the person is serious about purchasing your home.

“As a seller, you always want the buyer to have more skin in the game,” says Sands.

The bottom line: No seller dreams of getting a lowball offer, but with the right strategy you can turn a mediocre bid into a great sale.

After reading this article, Melissa Christopher, Ocean County, NJ Real Estate Agent has the following insight:

Every seller wants top dollar and every buyer wants bottom dollar.  Negotiating is where you will find the common ground.  Yes, the low offer may offend you because your home is personal and you value it higher than anybody else will because of the blood, sweat and tears you’ve poured into it, but think about what the buyers are thinking.  They want your home, so feel flattered.  Just try and find a common ground to where you both walk away getting something you want.