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Key Considerations for Buying or Selling Your Home: Expert Insights and Top Factors to Keep in Mind

Tue, 16 May 2023 18:37:01 GMT

REAL ESTATE: 101

Preparing for the real estate market requires a lot of planning and forethought, but it pays off! With extra time to strategize before making any decisions, you can easily avoid running into stressful situations. Taking care of key details like credit scores, down payments and closing costs will help ensure that your investment leads to great results - not just faster outcomes but also more confidence about what you're doing.

When all these moving parts come together properly with enough preparation there's no telling how much success is waiting on the other side. It's exciting having all the information you need before making such an important investment decision in life.

The Power of Time

It is important not to underestimate the power of time. The more you devote to preparing yourself, the more confident you will be in the buying process, resulting in you becoming a highly qualified buyer and ultimately getting the best possible deals. Giving yourself plenty of time to prepare will prevent you from having to make reactive decisions which could negatively impact a number of things when you are buying a home.

The most important thing you can do for yourself is to give yourself the time you need to plan no matter what your timeline is. When you have more time, the process can be less stressful and you will be able to make quicker more informed decisions without feeling pressured.

Additionally, It does happen in life that you must make a move quickly when something comes up. If you find yourself in this position, don't panic. With the help of a professional real estate advisor, you will be able to move forward quickly to accomplish your goals.

Real Estate Agent

Real estate has a saying "Everyone knows a Realtor." That may be true, but the big question is if that realtor is the right fit for you. Since each agent may specialize in a particular area, it is important to communicate your goals and what you are looking for in a home. If you have a specific housing need that requires extra skill and knowledge in that area, a good agent will refer you to another agent who can help.

The same applies to choosing the right lender too. You will be able to achieve your goals if you have open communication with your agent and lender. Every agent brings a unique value to the table, and because this is one of the biggest investments you will make, choosing one that fits with you and can serve you is a critical consideration.

Mortgage Loan Officer

Establishing credit, working with a trusted lender, saving for a down payment, closing costs, [not what you are approved for] but what price point you are comfortable with spending, and what is the associated cost with purchasing a home. These are all examples of significant factors to consider. A Real estate professional can walk you through the process and connect you with reputable lenders in the event you do not already have a lender you prefer.

Your lender will be able to walk you through the necessary steps to secure the best terms, rates, and how much money you will need to bring to the closing table based on your current and future goals. A pre-approval application is the only way to find out where you stand financially and credit-wise.

Pre-qualification is not the same as pre-approval. Obtaining pre-approval is crucial as it requires an in-depth review of tax returns, incomes, bank statements, and credit reports. It is important to do this because having a clear understanding of where you stand also gives you time to address any issues that could hinder your loan application. Additionally, it demonstrates to a seller that you are a ready, willing, and able buyer, thus providing you an advantage in getting an offer accepted.

Signing a Representation Agreement

When you have decided whom you want to represent you in the sale or purchase of your home, yes, sign the agreement. Consumers are protected by the agreement, which is vital if you want a real estate agent to represent you exclusively.

It is the responsibility of licensed agents to conduct business in a lawful manner and to fulfill their fiduciary obligations. But there's more to the agreement than just that. It also protects you from other agents who may be working with buyers or sellers who could potentially compromise your negotiations. Without an agreement, an agent has no obligation to you and may even share sensitive information with others.

For example, let's say you visit an open house and fall in love with a property. If you're represented by an agent, they won't ask you any leading questions that would put you at a disadvantage when it comes to negotiating. This kind of protection is vital, and without it, you're taking a big risk. These questions could compromise your negotiation or hinder your ability to reach an agreement.

After an agreement expires, is executed, or is terminated only confidentiality remains intact as a fiduciary obligation in the state of MN that every agent is upheld to. By signing the agreement, you're not only protecting yourself, but you're also putting your trust in a licensed professional who is obligated to work for your best interests. To learn more about how an agent can represent you in a real estate transaction please click here .

Conclusion

Lastly, preparing for the real estate market requires a lot of planning and forethought, but it pays off! With extra time to strategize before making any decisions, you can easily avoid running into stressful situations. Taking care of key details like credit scores, down payments and closing costs will help ensure that your investment leads to great results - not just faster outcomes but also more confidence about what you're doing.

The 12 Best Ways to Get the Exterior of Your Home Ready for Spring Selling

Fri, 24 Mar 2023 18:58:07 GMT

Since the weather is nice and more people are looking for homes to buy, spring is a great time to sell your home. Make your home more appealing to potential buyers by sprucing up its exterior and boosting curb appeal. Implement these tips to become a competitive seller in the market and put more money in your pocket.

1. Remove Debris

Clean up debris Remove any fallen leaves, branches, and other debris from your yard. Rake up any dead grass, leaves, and debris from your lawn to promote new growth. It is imperative to know that starting your yard work too early can threaten pollinators' survival. As recommended by Oregon State University Extension, you should wait until nighttime temperatures consistently reach 50 degrees.

2. Pruning

Prune trees and shrubs. Trim back any dead or overgrown branches from your trees and shrubs. Consider the species when trimming; some plants can only be trimmed in specific seasons. Trimming too soon could stunt plant growth and blooms.

3. Landscaping

Add some color to your yard by planting new plants, and mulch garden beds. Adding landscaping to a home can increase its resale value by 14% and can speed up the process of selling it by six weeks. Some great choices that are my favorite are Evergreens, Hosta, Sedums, lilacs, hydrangeas, and trees such as Maple, birch, and crabapple.

4. Outdoor Lighting

Enhance the outdoor appearance of your home by installing outdoor lighting. Make sure your existing outdoor lighting is working properly. Replace any outdated, fading, or broken outdoor fixtures.

5. Updating

Refresh your mailbox and house numbers by installing a new one or painting them.

6. Gutters

Clear out any debris from your gutters and downspouts to prevent blockages or water intrusion.

7. Power Wash

Driveways, sidewalks, siding, windows, decks, etc., should be power washed to remove stains or debris. Refresh the paint or stain on deck railings and doors.

8. Windows & Screens

Ensure windows and screens are clean and in good condition. Repair or replace.

9. Roof

Inspect and repair the roof for any damage or leaks. Ensure to remove any branches or debris from the roof line.

10. Cracks

Check sidewalks, driveways, and foundation for cracks or leaks. Repair or replace as necessary.

11. Fix it- All of It

Examine every aspect of the house. Make sure it is working properly and repair or replace anything that is broken or loose. Check railings, walkways, foundation, garage opener, cracked windows, cracks, window leaks, gutters, deterioration, air conditioning, etc.

12. Safety

Examine the exterior thoroughly. If you see any unsafe features, note them. This includes weak tree branches, outdoor lint trap bucket, sharp objects, structural weaknesses, beehives in the ground or nestled above ground, check garage safety sensors too this is a common item that comes up in home inspections. Ensure this safety feature is working properly. Then, Fix it- All of it.

Reclaiming Your Space: Tips for Home Organization

Wed, 01 Mar 2023 21:31:06 GMT

Giving everything a home

Your home is an extension of your energy field. This means that changes to your physical space can profoundly impact your mental, emotional, and spiritual well-being. Cleaning, rearranging furniture, organizing your closet, decluttering, and removing objects cluttering your area can all help you reclaim the energy that should be yours. Here are some tips to get you on the path to reclaiming your space.

Create an Action Plan

Now that you have identified how you want your home to look and feel create an action plan for achieving it. Break down this plan into smaller tasks such as “declutter my bedroom” or “organize my living room closet” to make it more manageable. Then decide when each job will be completed (i.e., by the end of this week). A timeline will keep you motivated and ensure everything gets done on time!

Buy Smart Storage Solutions

Once you have decluttered and organized your space, it is essential to purchasing storage solutions that are both practical and aesthetically pleasing so that everything stays neat—think baskets, boxes, shelves, etc. Many affordable options are available online or at stores like Amazon, Ikea, Target, and the Dollar store, so there is no excuse not to invest in innovative storage solutions!

Prioritize Rooms Based on Usage

Start with one room at a time. Think through how often each room in your home gets used daily or weekly; this will help determine which rooms should take priority when organizing based on usage frequency. For example, if you spend lots of time cooking meals together as a family, prioritize organizing your kitchen first so that it can be used efficiently day-to-day instead of tackling projects like bathrooms with much lower usage frequency right away since they won’t get used nearly as often!

Categorize Your Belongings

By organizing items into categories, you will find what you need more quickly with less effort, which helps reduce wasted time spent rummaging around looking for something specific in a jumbled mess. Categorizing also makes donating or selling items easier because order is already established within each category - no need for extra sorting! Labeling bins or drawers with a description of what’s inside helps make finding things even more accessible; without labels, we tend to forget where things go after rearranging an area a few times down the road!

Executing the plan

Remove everything from the space and discard any items that no longer fit or serve a purpose first. Separate what remains into two categories — I called it the I want pile and the giveaway pile. Once everything is sorted through, place items according to type. If possible, group items together by color or season so they are easier to find when needed. What I find invaluable during this stage is using multiple Rubbermaid bins so that you can quickly move items around, keep track, and contain them while creating an organized space for your items.

The Bathroom

Bathrooms tend to become cluttered quickly due to their small size combined with many products used daily, like towels, toiletries, makeup, etc., but with the proper organization, they can be kept neat! Start by getting rid of expired products and those that aren’t being used anymore, then look for containers and organizers that will help keep things organized; try using bins or baskets on shelves or countertops for smaller items like cotton balls and Q-Tips while more oversized items like shampoo bottles can be stored together on a shower caddy or shelf. You may also want to consider adding additional storage options, such as towel racks on walls or over-the-toilet shelving units, if there is not enough room elsewhere in the bathroom. Here are a few recent items I've purchased from Amazon to add to my own space, not only to organize but to make it readily accessible .

The Bedroom

A bedroom should be a restful oasis; shabby furniture and closets can create an uninviting atmosphere. To organize your bedroom, start by decluttering; sort through clothing and donate any items that don’t fit or aren’t being worn anymore. Once you have only what you need, find ways to maximize storage in your closet; use hanging organizers for shirts and pants and shoe racks or shelving units for shoes and accessories. Finally, add furniture pieces as needed so that everything has its place; try adding a dresser or armoire for additional storage if necessary. I purchased these on amazon to store seasonal clothes, extra sheets, and blankets. The collapsible bins to keep on the top shelf of my closet and, of course, color coding with inexpensive hangers for a streamlined look.

The Kitchen

The kitchen is often one of the most cluttered areas of the home, but with a few simple organizational tips, you can quickly get it under control. Start by sorting through all your items, including food and utensils, and discard any expired or unused items. Then look for ways to maximize storage space; use shelves or baskets to store things like spices and canned goods and hang pans from hooks on the wall. Finally, keep countertops clear by storing appliances used infrequently in cabinets or drawers. My favorite of these is the lazy susan. It makes it incredibly easy to get what you need without moving several items out of the way.

Declutter Surfaces

Now it’s time to declutter surfaces around the house. Go through each room of the house and remove anything that doesn't belong there — old magazines, books, toys, clothes — anything cluttering the area should be discarded. As for surfaces such as counters or tables, only leave out essential items such as lamps or decorations necessary for daily life. Removing excess items will clear up surface areas while restoring balance in the room.

Deep Clean

Finally, deep clean every corner of your home from top to bottom. Start with dusting light fixtures, ceiling fans, and blinds; vacuum carpets; mop floors; wipe down countertops; wash windows; sanitize bathrooms, etc., until every inch of your home is spick-and-span! Deep cleaning allows a fresh start that comes with an improved sense of clarity and well-being within our living spaces.

Reclaiming your space can be a liberating experience that positively impacts all aspects of life, from mental to physical health. Decide what kind of environment resonates with you, create an action plan to achieve it, and invest in innovative storage solutions to keep everything in order! These tips will help you reclaim your home's energy!

12 Tips to Get Ready for the Spring Selling Season

smontpetit@kw.com (Stephanie Montpetit) — Fri, 17 Feb 2023 20:20:51 GMT

You only get one shot to make a first good impression

Prospective buyers' perception of how well-maintained the home is directly influenced by its appearance. The first impression you make on potential buyers is your only chance. Accentuate your home and display it to its best advantage.

1. FIRE SAFETY

Check smoke alarms and carbon monoxide detectors. Install carbon monoxide detectors within 10 feet of bedrooms and replace any sensors ten years or older from the date of manufacture. Check out the requirements of the Minnesota State Fire Code to learn more.

2. DEPERSONALIZE & DECLUTTER

To make the home more appealing to potential buyers. Donate any unwanted items. Store seasonal items, such as clothing, appliances, and decor. Secure personal and sensitive items, such as calendars and mail. You can schedule a home pick-up from a foundation of your choice to save time.

3. MECHANICALS

Hire a certified HVAC professional to certify and maintain the furnace and perform a combustion test of the HVAC to ensure CO2 is not leaking in the home. Address any issues that come up.

4. CLEANING

Let the professionals take care of the challenging cleaning task and invest in a deep cleaning service. It's easy to overlook areas that need our attention. When buyers walk through your home, they inspect it with a fine tooth comb. A professional cleaner will have the necessary cleaners and equipment to perform the tough jobs so that you can focus on other essential tasks.

5. OUTLETS & SWITCHES

Check all of the outlets and switches. Install GFCI outlets by the kitchen, bathroom, and laundry room sinks. Replace or repair any cracked or non-functioning ones.

6. CAULKING

Remember, fresh caulk around tubs, sinks, and toilets. Caulking prevents foul smells and water damage in unwanted areas from leaks.

7. APPLIANCES

Inspect each appliance to ensure it is working correctly. Make sure to clean the inside and outside, seals, filters, racks, vacuum underneath, etc. Ensure all damaged parts are repaired or replaced- remember the microwave's interior.

8. FIX IT- ALL OF IT

Fix the broken stuff- all of it. Yep, that's right! All of it. Perform a visual inventory inspection throughout the home. Do you have missing outlet plates, loose railings, knobs or handles, missing hardware, clogged or slow drains, etc.? the small stuff matters.

9. PAINT

It's amazing what a bit of fresh paint throughout the home can provide you with your return on investment. Choose neutral colors and repair cracks, holes, or peeling paint. Whatever your budget is, focusing on the right things can dramatically increase your return on investment and how much goes back into your pocket.

10. LIGHTING & FIXTURES

Lighting defines the interior of your home. It plays a vital role in how people perceive and experience space, fundamentally influencing the appearance of shape, mood, and emotion. It can significantly impact the home's energy, so replace out-of-date lighting and burnt-out bulbs. Ensure that all bulbs are the same in each light fixture. Choose warm whites around (2700-3000K) or white to cool white. Avoid any blue light bulbs, such as daylight. These are typically used in industrial places.

11. BLINDS & WINDOW COVERINGS

Blinds and window coverings should be cleaned and dusted. Replace any damaged ones, and if there are blinds you want to take with you to your new home, replace them altogether. They may be considered a fixture and must stay with the house when you sell.

12. FLOORING

Hire a professional carpet cleaning company to clean large area rugs and carpets. Fix or repair any damage carpet and tile.

Easy DIY Home Projects That’ll Make You Say, “Yes I Can!”

duda@secondgen.com — Wed, 10 Nov 2021 18:03:39 GMT

A little elbow grease; a big difference!

By: Leanne Potts

Beautiful you-can-do-it inspirations for easy DIY projects.

As anybody who’s been inspired by HGTV can tell you, DIY home projects on TV look amaaaazing.

But DIY renovations in real life: kiiiinda the toughest thing ever. And, yet, these rookie craftsmen did beautiful, jaw-dropping work that will totally inspire you. Check out these easy DIY projects for your home:

#1 Pinterest-Worthy DIY Window Seat

An empty recess in a room is a ripe spot for a DIY project, as home improvement blogger Britt Kingery can tell you.

She and her husband, Justin, built a window seat so ridiculously Pinterest-worthy you’ll want to make one for yourself (like, right now).

It’s a roomy 10-foot beauty, so you can seat a houseful of guests without dragging chairs all over the place. And (bonus!) there’s storage underneath for stashing lots of stuff out of sight.

You can custom-create your own for about $250 if you’ve got a few essential DIY tools.

Or you can do an Ikea hack to get the same result. Just attach one of their long, horizontal storage systems to your walls. Then add cushions and preformed molding for the same custom look.

The big reveal doesn’t happen overnight, and a renovation almost always looks worse before it looks better.

Britt Kingery, home improvement blogger

#2 Miracle Makeover With Just Paint, Stain (and Patience)

“The Brady Bunch”-orange wall and abused floors in the before photo are homely enough to strike you blind.

But what a miracle paint, sanding, and stain can do! Lighter shades on the walls, trim, and floor reflect natural light, making the space so much brighter. And for very little money (about $150).

The key to such an amazing transformation, Kingery says, is to be a tortoise, not a hare.

Sanding, taping, patching holes, and waiting on stain, paint or polyurethane to dry takes care and patience if you want professional-looking results.

“The big reveal doesn’t happen overnight, and a renovation almost always looks worse before it looks better.”

#3 Instant Open Floor Plan

Cramped, dark kitchens are so very 1981.

Sarah Lemp of the “All Things With Purpose” blog turned her dated kitchen into an open, light-filled space that feels and functions like a larger room.

The cost? $300. Yep. For less than the cost of a set of countertop canisters at Williams Sonoma, Lemp worked magic.

The biggest fix? She just removed a set of overhead cabinets that blocked light and the view into the dining area, making an instant open floor plan.

Then she turned to paint, the budget remodeler’s friend. She used a soft griege (designer-speak for grayish beige) for the walls of the kitchen and dining area.

She painted the remaining upper cabinets white, and the bottom ones dark gray.

“I love the look of white cabinets, but figured a darker color was more kid-friendly,” she says.

Lemp skipped the requisite subway tile backsplash and went with peel-and-stick shiplap instead. “It was easier and cheaper,” she says.

#4 Brighter Bedroom With Paint and Wood

This may be an ugly room, but we’re not sure because it’s so dark all we can see are cheap blinds and a poofy valance that hasn’t been fashionable since the Olsen twins were toddlers.

It needed major help.

Ashley Rose and Jared Smith of the blog “Sugar and Cloth” pulled off a weekend makeover by painting the walls a lighter color and replacing the window treatments with wispy, white drapes that practically pull sunlight into the room.

A pair of wall-mounted reading lamps added a second layer of light, because a lonely overhead fixture can’t light the whole room all by itself.

And that wall behind the bed? It’s strips of reclaimed wood with an adhesive backing. Peel, stick, and you’re done. No nails. No glue. And just one tool: a level to make sure you stick the wood strips in a straight line. Awesome.

#5 An Easy-Peasy Backyard Patio

Dirt’s ugly. It’s also a pain, turning into mud when it rains, dust when it doesn’t, and sneaking into your house on the feet of dogs and kids.

Covering it with a paver patio is a great fix. Chelsea Foy of the blog “Lovely Indeed” built this one in a neglected flower bed in just 10 hours.

She used patio stones molded to look like several individual bricks, because leveling one large stone is tons easier than leveling a bunch of bricks.

Those arcs of large river rocks just off the patio make a natural-looking transition between the factory-perfect pavers and the rest of the yard. They’ll also give you less lawn to mow or flowers to tend.

#6 Fancy Wall Molding for a Bargain Price

Wall molding makes a room look so custom, so finished, so much better than boring old drywall. But it costs around $25 a square foot just for the materials.

Mysha Barton of the blog “Remington Avenue” pulled it off along her stairs for just $30 — total.

The secret? She used MDF (medium density fiberboard, aka fake wood) to keep it cheap, and didn’t mount it in the traditional way with board panels on the wall.

Instead, she put thinner “chair rail molding” directly on the wall, and painted everything white, including the wall to get that rich look of molding.

The toughest part was cutting all those angles, Barton says.

She got it done with a miter box and a handsaw. “My advice is to use scrap wood to practice your angled cuts before taking on your expensive molding pieces.”

Barton did this project in just eight hours with three small children in the house, so even if 10th-grade geometry made you cry, you can do this.

#7 A Space-Saving Workbench

A DIY workbench is a gateway project, one that can lead you to harder projects and possibly, a home improvement addiction. Make this workbench your very first project and you’ll have room to do scads of projects — money-saving ones.

It’ll fit in a small space because it’s actually a door mounted on door hinges, so you can fold it flat against the wall when you’re not using it. Be sure to buy a solid wood door, not a hollow one, so it’s sturdy enough to stand up to years of projects.

We’re pleased to announce the addition of a real estate veteran to our team. Andrew Stevens joins us in our main office after 10 years in our northern branch.

How to Prevent (Home) Buyer’s Remorse

duda@secondgen.com — Wed, 10 Nov 2021 18:00:17 GMT

Always feel confident it's your dream home.

By: Lynn Ettinger

You can make a successful offer on a home even in a competitive market — with the right information and help.

When you’re house hunting, the pressure of competition can move you from “Hmm, I like that, but it’s too pricey,” to “I have to have that!” You think, so what if paying for this house will put me way over budget? I can cut back somewhere else, right? But that kind of thinking can get you into trouble. Trouble that’s totally avoidable.

Whether you’re in the middle of a home bidding war or facing down a list of must-haves, don’t lose sight of your budget and the risks. That way, you can own a house without home buyer’s remorse. And you’ll have money left to enjoy things like new furniture, entertainment, and just plain having fun.

Who Has Home Buyer’s Remorse and Why?

A competitive real estate market can set buyers up to purchase a home that’s either beyond their budgets —sometimes hugely beyond — or doesn’t meet their needs, according to a 2021 survey by Bankrate and YouGov. The survey found that recent home buyers, including 64% of millennials, had regrets about their home purchase. The top reason? They were unprepared for maintenance and other home ownership-related costs. On top of that, 13% percent of millennials said they think they paid a higher sales price than they should have.

“Things in homes always break down, so people should put aside a budget for anything that will need fixing,” says Lawrence Yun, chief economist at the National Association of REALTORS®. “A rule of thumb is to anticipate 1% or 2% of the home price for potential maintenance,” he explains. “So, for a $300,000 home, that means setting aside $3,000.”

One reason home buyers may be tempted to go over budget is they’ve been influenced by the beautiful homes on TV, according to an NAR report on home staging. “The shows can create unrealistic expectations for the home buying process and how homes should look,” says Brandi Snowden, NAR director of member and consumer survey research. In time, buyers can view features that used to be luxuries as necessities. They believe everyone has them and they should too. One solution: Work with a REALTOR as early as possible in the process. “Make sure your agent knows your budget, so they can help you set expectations and stick to them,” she advises.

How to Navigate House Hunting in a Competitive Market

In addition to pressure to exceed their budgets, buyers are facing hurdles like these five:

1. Requests to Waive Contingencies

Tamara Suminski, a real estate agent at Beach Real Estate Group in Manhattan Beach, Calif., is seeing not only bidding wars but also sellers wanting buyers to waive contingencies. “With an appraisal contingency, if the appraisal comes in low, the buyer has choices. They can choose to try to renegotiate with the seller, bring in the difference, or cancel. When they remove that contingency and its protection, and if the home doesn’t appraise at the right level, the seller is not very likely to renegotiate with them. And the buyer has waived their right to cancel. If they cancel anyway, they’re risking their deposit.”

Some buyers are also waiving contingencies related to home inspections. These investigations are an opportunity to have a home inspector view the home based on disclosures and for the buyer to use findings as a bargaining tool, Suminski says.

Eliminating these protections can end up costing money for buyers. And the more offers the buyer writes and loses, the more risk they will tolerate. So, they may waive contingencies and regret it later, says Suminski. Talk to a buyer’s agent who will guide you through this and explain the risks of removing protections and unknown variables, she advises.

2. Speed Showings and Decisions

Bryan Yap recently bought a home in an expensive and highly competitive market — Orange County, Calif. He found that with the pandemic, each showing lasted only 15 minutes. That was one of the biggest hurdles. “We’d see three, four, or five homes in one day. It’s hard to keep track of what you like and don’t like with each house. What I would do differently is take notes immediately after viewing a home. If you’re able to prepare beforehand, create a list of wants and requirements in priority order. Immediately after seeing each home, rank it based on the list.”

3. Focusing on the Top of Your Price Range

“If you’re looking in a micromarket where listings are achieving multiple offers and homes are going above asking price, don’t set your on the houses at the top of your price range,” Suminski says. If $300,000 is your upper limit, look at houses priced at $250,000 or $275,000. Otherwise, you’re going to be outbid from the gate every time.”

That was the process Yap used when he was looking. “I would look for homes $25,000 under my max budget. I went on Zillow and looked at homes that were sold recently and tried to calculate the average over-listing price those homes were being sold for and factor that into my offer price.”

4. The Need to Compromise

Yap’s must-haves were three bedrooms, two baths, and being closer to the city center of Anaheim. “I was able to get three beds, two baths, but I did have to compromise on location. I also had to compromise on price, which was doable because I could still afford it. To compete with all the potential buyers, I knew that we had to either offer an over-list price or remove some contingencies.”

Suminski advises adjusting your search outward geographically, even if it means a longer commute. Buyers might also have to compromise on property types and features. In addition, they should consider doing some DIY projects instead of wanting everything to be move-in ready. “They may have to be willing to look at townhouses instead of single-family homes or install carpet and paint on weekends.”

5. Information Overload

In the two years before he started searching for a home, Yap did a lot of reading. “It was a massive plan I had to come up with and stick to so that I’d be able to afford buying a home.”

Because of how hot the Orange County market is, agents scheduled showings as soon as a house was listed or showed “coming soon” status. Yap treated the home search as “almost a second job,” using lunch breaks and evenings to check emails, do online searches, and text his real estate agent about what he wanted to see. “I had to make a lot of sacrifices. People wanted to set plans with me for the weekend, but I said, ‘Sorry, I have to go view homes that day.’”

He primarily credits his real estate agents, including Sumiski, for keeping him informed. “They made all this possible. I learned a lot from them.”

Some agents, like Suminski, hold an accredited buyer’s representative designation but usually work with sellers as well as buyers. “An [agent with an] ABR has taken extensive buyer’s representation training,” Suminski says. “They’ll provide education to buyers so that they’re learning as much as they can about the market, including the risks involved with different negotiations. If buyers are going to shorten terms or remove protections, they need to be well informed about the pitfalls.”

Learn from Experiences

That access to information and guidance will help buyers making an offer on a home especially in a competitive market. “Today’s buyer has seen and written offers on many properties before they get their offer accepted,” Suminski says. “That’s common across the country. Each is a learning opportunity for buyers about what information they might need to be researching so they can move more quickly.”

When you act on advice from recent buyers and agents, you can stay well informed and get good results even in a tough market. And that’s the best way to prevent home buyer’s remorse.

A home like this comes on the market once in a decade. It’s spacious, fully renovated and designed to the highest standards.

8 Simple Rules for Negotiating Your Offer and Getting That House

duda@secondgen.com — Wed, 10 Nov 2021 17:56:12 GMT

In today's hot market, know how to make sure you get the home of your dreams.

By: HouseLogic

You and your agent are going to use everything you’ve learned to seal the deal.

Here’s the dream: Your offer is perfect, you don’t need to negotiate, and you can spend the next few weeks addressing more pressing home-ownership questions, like “Why is it called wainscoting?” and “Do I want a new couch in blush or emerald green?”

And it could happen. Many sellers accept the best offer they receive, and for a variety of reasons.

But sellers are also known to reject offers for a variety of reasons. Or make counteroffers. This is especially likely if you bid low, or when you’re up against multiple competing offers.

If you do receive a counteroffer, it’s up to you to decide whether you want to accept the new contract, negotiate the terms, or walk away.

In cases such as these, look to your agent. He or she is your spirit guide. If you decide you want to negotiate — that is, make a counteroffer to the seller’s counteroffer — your agent will use their negotiating skills to help get you the best deal. This is what agents do every day.

But you’re not just going to sit there. If you understand what negotiating tactics your agent may deploy — they depend on the local market and your position — you can back them up. And cheer them on.

Here are eight rules every buyer should know before they — and their agent — start negotiating:

#1 Act Fast — Like, Now

When you receive a counteroffer, you should respond quickly — ideally within 24 hours. The longer you wait, the more space you leave for another buyer to swoop in and nab the property. Also? If a seller senses hesitation, they may decide to withdraw their counteroffer before you even have a chance to respond.

#2 Raise Your Price (Within Reason)

While you obviously don’t want to overpay for a house, you may have to up the ante — especially if you initially made a lowball offer. Lean on your agent’s expertise to determine how much money you should add to the sales price to make it more enticing to the seller.

Then, through their powers of persuasion, your agent can make the counteroffer look even more attractive by pointing out similarly priced “comps” — recently sold homes in your area that are comparable in terms of square footage and features.

As your agent negotiates, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win.

Before you go overboard, there are two things you must keep in mind:

You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender.
You shouldn’t overextend your budget.

Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and to keep living your life. Plus: You’re not out of options yet.

#3 Increase Your Earnest Money Deposit

Increasing your earnest money deposit (EMD) — the sum of money you put down to prove to the seller you’re serious (i.e., “earnest”) about buying the house — is another way to show the seller you have more skin in the game. A standard EMD is typically 1% to 3% of the sales price of the home. Making a counteroffer with a 3% to 4% deposit could be what you need to persuade the seller to side with you.

#4 Demonstrate Patience About Taking Possession

Depending on the seller’s timetable, changing your proposed possession date — the date you take over the property — could butter them up, too. If the seller wants to stay in the home for a few days after closing, try offering a later possession date. You could also draw up a “rent-back” agreement, meaning the seller pays you rent for staying in the home for a set period of time after the closing date.

#5 Let Go of a Few Contingencies — With Care

Want to give your counteroffer an even bigger boost?

Reduce the number of contingencies you’re asking for. It’s your way of saying, “Hey, look, I have fewer ways to back out,” which gives the seller more reassurance that the deal will close.

But be selective: Some contingencies are too important to give up. A home-inspection contingency — the right to have a home inspection and request repairs — gives you an out if you spot major problems with the home (and protects you from buying a total money pit).

You might waive a termite inspection if you’re in a state where the risk is lower.

But ultimately, waiving contingencies depends on your market, your loan program requirements, your risk tolerance, and the circumstances of the house in question. And if you waive contingencies and then you find a problem, the seller isn’t responsible for fixing it.

#6 Ask for Fewer Concessions

At a mortgage settlement, home buyers have to pay closing costs for taxes, lender’s fees, and title company fees. Closing costs vary by location, but you can expect to shell out between 3% and 4% of the home’s sales price. The seller pays an additional 1% to 3%. (Smart Asset and Nerdwallet have simple calculators you can use to get a rough idea of what your closing costs might be.)

When making an initial offer, you have the option to ask the seller for concessions — a settlement paid in cash to help you offset your share of the closing costs. (This move is less feasible if you’re going up against multiple offers.)

Concessions effectively lower the seller’s net proceeds from the sale. Making a counteroffer that removes the concessions you would have otherwise received at settlement puts cash back in the seller’s pocket — and can improve your bid.

#7 Pick Up the Cost of the Home Warranty

Sometimes sellers offer prospective buyers a home warranty. This is a plan that covers the cost of repairing major home appliances and systems, like the air conditioner or hot water heater, if they break down within a certain period (typically a year after closing).

A basic home warranty costs about $300 to $600 a year, according to Angie’s List. If it seems like waiving the home warranty can sweeten negotiations, but you still want the peace of mind of having one, tell the seller they don’t need to cover it — then buy it yourself.

Just keep in mind, whether you or the seller buy the warranty, you’ll need to pay the service fee (typically between $50 and $100) if something does, indeed, need to be repaired while under warranty.

Also, FYI: A home warranty is entirely separate from homeowners insurance. Homeowners insurance — the security blanket that covers your home’s structure and possessions in the event of a fire, storm, flood, or other accident — is required if you take out a mortgage. It can cost anywhere from $300 to $1,000 per year.

#8 Know When to Walk

When negotiating with a seller, trust your gut — and your agent. If he or she says a deal is bad for you: Listen.

And if you don’t want to make any more trade-offs — and the seller won’t budge — it’s smart to walk. That can be a tough decision to make, and rightfully so! Negotiating is tough. It’s draining.

And losing something you’ve worked hard to get can be disappointing. But don’t worry. There’s a better deal for you out there. And after those strong feelings of frustration pass, you’ll realize: Now I know how to do this.

A home like this comes on the market once in a decade. It’s spacious, fully renovated and designed to the highest standards.