Making Tons Of Offers & Not Getting Any Results? Learn How To Compete With Cash Offers!

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In any competitive housing market, cash buyers are viewed with apprehension by other people looking to purchase homes.

Often, credit buyers feel as though they cannot compete with cash buyers, and this can be upsetting when a cash buyer places a bid on a person’s dream home. Cash does offer benefits for sellers and can be very difficult to compete with.

When a seller receives a cash offer they do not have to worry about banks or loans and the entire process tends to run smoother and quicker.

That does not mean, however, that it is impossible to compete with a cash offer. So how do you compete with a cash real estate offer? The trick is always to make the credit offer look more appealing for the seller. Here are some tips for competing with a cash offer to secure the perfect house. Use these tips wisely to construct an offer that just may having a fighting chance of beating out the cash proposal.

Make Sure The Seller Knows The Offer is Secure

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Having a home sale fall through is extremely frustrating for any seller, and financial difficulties are a common problem. This is one reason why cash buyers are so appealing; the cash is available up front without having to wonder if the buyer will get financing. To make an offer more tempting, the credit buyer should come to the table with plenty of evidence that their offer is just as solid.

A pre-approval letter from a lender indicating that the buyer is a well qualified and approved can help justify some of the sellers concerns. Make sure you understand the distinction between a pre-approval letter and a pre-qualification letter as they are very different. A pre-qualification letter is essentially worthless and not what a seller or a savvy real estate agent will be looking to see. Another tactic to make your offer look stronger is to have the pre-approval letter be for substantially more than what you have offered the seller.

Those who are comfortable being open with the seller should also consider making financial information available to the seller, such as employment information or assets, to help bolster the claim that a loan for the particular person is a sure thing. For example if you have a bank account that is flush with cash but you are choosing to get a mortgage for your own financial reasons at least the seller knows you have the money available as a fall back plan.

Be Prepared to Bid Higher

Cash buyers know that their offers look appealing to sellers because of their ability to pay cash up front. For this reason, at times they expect some kind of discount on the listing price. The credit buyer can help counteract the appeal of the cash offer by offering a higher bid.

Since the credit buyer knows that they may have to bid a little higher than the cash buyer, it is probably a good idea to consider homes lower in the personal price range. This will give a buyer more room to make that higher bid to win the house without going over budget.

Make Every Effort to Speed Up The Process

Certain steps, such as waiting for appraisals and loan approval, can end up adding weeks or months to the process. Speak with the loan officer to try and learn what can be done to speed up the timeline. For example, ask the mortgage broker to try to set up a real estate appraisal appointment immediately. Some of the biggest delays with financing occur because of the time it takes for the appraisal to get done.

When an offer is made on the home, the credit buyer can then let the seller know that they have already contacted the lender and asked them to order the appraisal right out of the gate.

Similarly, be in contact with a home inspector who can be brought out to see the house within a few days to get the inspections completed. Having the inspection finished early on in the process can also let the seller know how serious the credit buyer is about the house. Some parts of the country also allow for loans to be secured in as few as fourteen days, so if this is an option, also pass on to the seller how quickly the loan paperwork can be finalized. Have your mortgage broker write a letter stating how quickly they turn around their loans.

Make Your Offer Personal

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There are a variety of ways to try and connect to the seller on a more personal level. Some people will send letters to the seller, describing their situation and their plans for the house. Other people will speak with their real estate agent and ask them to really present the offer, not just email it over.

Sending a personalized letter may or may not have any impact whatsoever if the seller makes analytical decisions. Believe it or not however, there are some who will make decisions based on emotion.

If the offers are very close or even slightly better, the buyer who has connected personally with the seller could have the upper hand. In fact recently while I was selling a home in Northbridge Massachusetts, I had received multiple offers on a property and the seller chose to go with the non cash offer due to the fact that the seller happened to be on the way out the door when the buyer arrived. The seller was able to see the couple and their two small kids. The buyer’s ended up asking the seller and few questions about the home. There was a connection made with this particular seller.

The buyer was smart when making their offer by including a personalized letter that mentioned all the great things about the property along with how they knew their kids would enjoy growing up in the home. This little personal gesture put their offer over the top.

Be Willing to Take A Risk

To make an offer seem even more appealing, some buyers will take risks such as waiving the appraisal contingency or even the financing all together. While you may not have the cash readily available, if you are 100 percent confident you can get the financing some will take the risk of taking the financing contingency out of the offer contract.

While many times this risk pays off, there are also plenty of times that it does not. Occasionally, for houses in a market where the buyer is very confident about the price and is absolutely in love with the house, it can be worth taking the chance, but often people jump too quickly when making these larger gambles.

There are also other, risks that buyers can take that can help swing an offer in their favor. For example, some consider removing the home inspection clause if they are relatively certain there are no big home inspection issues that will be discovered. A lack of problems of course is more common with younger homes that have been really well constructed.

If you are not that brave another alternative is to make the home inspection escape clause have a higher dollar figure. In most real estate contracts where there is a home inspection contingency, a buyer can put in an amount of money by which they can cancel the contract if home inspection issues are discovered. The last thing a seller wants to deal with is negotiating repair items after a home inspection. Letting a seller know up front that you are not going to knit pick at every little problem the home inspector finds can go a long way in helping to make your offer more appealing.

Give The Seller Their Desired Closing Date

One of the terms in a real estate offer that is almost always very important to a seller is the closing date. When you are competing against a cash offer being super flexible with the sellers desired closing is really important. If the seller want to close on a specific date make sure you give it to them!

In real estate transactions sometimes the seller may even need for some reason to rent the home back from you for a certain period of time. The seller may need the equity out of their home but not have a place to live established yet. Giving the seller a flexible term like renting back for a period of time could be huge in the grand scheme of things. Are you beginning to see how to beat a cash real estate offer?

Other Attractive Items For The Seller

Another example is to increase what would be considered a normal escrow deposit. If it is common to put 5% down with an offer contract make your deposit larger. The stronger you can make all the other terms in an offer the greater chance you will have of being the winner.

If for some reason the seller is offering some kind of concession, such as carpet or painting allowances if the home really needs it, you could opt to waive the seller from having to do this.

There is no denying that competing against a cash offer will be difficult. The convenience that the offer presents for the seller makes it very appealing, especially given the difficulties that can arise when dealing with a buyer procuring financing.

Just because someone makes a cash offer on a house that a credit buyer has fallen in love with, however, does not mean that there is nothing to be done. Taking the above advice will give any credit buyer the best chance of securing their dream home, regardless of the other bids.

Article Courtesy Of: maxrealestateexposure.com check it out here!

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Watch For These 8 Surprising Expenses When Buying A Home

Home buying TV shows always show you the price of a home and then show you the people living in it happily when they’ve closed—they often leave out the difficult and sometimes expensive costs new homeowners are surprised with. Remember to budget for them so you’re not caught off guard.

Finance blog Get Rich Slowly points out there are a number of costs that new homeowners will almost likely have to deal with as soon as they move into their brand new multi-hundred-thousand dollar home that may not be immediately apparent, especially if you’re still reeling from having signed a mortgage for an obscene amount of money. For example, the first thing you’ll probably want to do when you move in is get the locked changed—a new home doesn’t necessarily come with new locks. Depending on whether your home is new, old, or was once used as a rental, there’s often no telling who has a key to your house, and getting that done can add up quickly.
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The Chicken or The Egg…Do You Buy or Sell First When You’re Ready to Move?

Homeowners who decide they’re ready to become move-up buyers face a chicken-or-egg dilemma: Should they sell their current home first and then buy another, or buy a new one and then sell? The answer depends on several factors, including your local market conditions, your financing options and your feelings about potentially moving twice if you sell your home before your next residence is available.Nick Pendergrast|DeBianchi Real Estate

Market Conditions

Before you blithely assume that your real estate market is a buyer’s market or a seller’s market, you need to realize that you must be very specific about the market for your particular neighborhood, the style of home you own, and the price range for your property. In addition, you need to assess the availability of homes that meet your criteria. You’ll need to work with a knowledgeable, professional REALTOR® who can talk to you about how quickly homes that are similar to yours are selling and for how much. On the buying side, you should do some preview shopping to get an idea of what you want and how easy it is to find it. For example, if you must live in a particular, popular school district, you may want to consider buying a home first so that you’re sure you have a place you want.

Financial Option

In an ideal world, everyone would have the funds to pay cash for their next home, but the reality is that most people need the equity from the sale of their current home for the down payment on the next house. One option is to sell your home and then negotiate to rent it back from your buyers, but remember THAT you’ll need to pay them for the rental. Also, lenders will limit the rent-back term to a maximum of 60 days because a rental lasting longer than that would be considered an investment property

Alternatively, you can temporarily live with friends or family or in a short-term rental while you’re between homes. In that case, you might need to pay for a storage facility for your possessions.

A drawback to selling your home first is that you may be unable to find a home to buy, or you may feel rushed into taking a place that doesn’t meet your expectations.

If you can qualify for the mortgage loan on both your current home and the next home, you can access the equity in your current home with a line of credit. You’ll need to take out the line of credit before you put your home on the market and then you can pay it back at settlement.

You may also be able to borrow money for a down payment from relatives that you can repay after your home sells.

Some lenders also offer bridge loans for transitioning homeowners as long as they have excellent credit and sufficient equity in their current home. A lender can help you evaluate your options.

Risk Aversion and a Plan B

You’ll have to ask yourself what scares you most: selling first and having nowhere to live or buying first and being stuck with two mortgage payments. The answer depends on your finances and your local market, but in either case you should have a back-up plan to deal with the worst case scenario – either another source of income for those mortgage payments or an identified place to live for a few weeks or months while you shop for a home.

 

Content used from Realtor.com

Getting “Hulk Like” Is The Way To Go – Buyers Are Looking For Green Features

More than 65 percent of home buyers recently surveyed say they desire an “environment friendly” home, but only about 15 percent are willing to pay more for one, according to the “What Home Buyers Really Want: Ethnic Preferences” study from the National Association of Home Builders’ (NAHB).Green Thumb

But when NAHB changed the way it phrased the question to emphasize the benefits of environmentally friendly features in trimming utility bills, more buyers said they were willing to pay for it – 80 percent compared to 15 percent.

The study also found that energy efficiency was a top priority across races and ethnicities.

In the survey, buyers were asked to choose between a highly energy-efficient home that saved 2 to 3 percent on utility bills over the life of the home versus a home without those features. When couched as a lon
g-term savings, more than 80 percent of buyers preferred the more expensive energy-saving home.

The NAHB survey looked at ethnic differences in green housing preferences. On average, Caucasians would pay $6,774 more for a home with energy efficiency features that lower utility bills; African American buyers are willing to pay $7,578 more; and Asian buyers will pay $8,251 more.

Hispanic buyers were willing to pay the most – an average of $9,146 more for a home with such features, according to the survey.

Common Myths For Home Sellers in 2014

Home Seller TipsWhether someone is selling a home for the first time or the fifth, these real estate myths can lead to major gaffes that cost sellers money. Feel free to share these tips on your website or social media sites to help clients be better prepared. How many of these sound familiar to you?

1. I shouldn’t find an agent until I’m ready to sell

The right time to contact your real estate agent is when you first think about selling your house. If you don’t have a real estate agent yet, now is the time to start interviewing candidates to find the right fit.

Why would you want to speak to an agent six months or even a year before you plan to sell your home? An experienced agent will be able to advise you and suggest easy changes that can be made over time before you list your property, changes that will attract more buyers (and top dollar). Your real estate agent will also have insight into the local market and can help you time your home sale just right for your unique situation.

2. I should price my home high to allow room to negotiate

We admit it, this sounds like a good idea. If you know that buyers are going to want to negotiate and that negotiations usually cut into your bottom line, why wouldn’t you price it high to give yourself a cushion?

Because a home that’s priced too high can scare even the most ready and willing buyers away. And if your house isn’t getting looked at, it certainly isn’t getting offers. And the longer it sits on the market, the more work you have to put in to keep it presentation-ready. Not to mention the bad vibes associated with being “that house that’s been for sale forever.”

A house that’s correctly priced will net sellers the most money in the least time – another good reason to consult your real estate agent. Your agent will be able to create a Comparable Market Analysis (CMA) that will help you establish the best price at which to list your home.

3. The outside of my house is not as important as the inside of my house

The appearance of the outside of your house is important indeed, as it is the first thing potential buyers see. You know that old saying, “Don’t judge a book by its cover”? So do we, but we nevertheless judge homes by their exteriors all the time.

In fact, the outside of your house is so important, a term has even been invented to describe just how important it is! “Curb appeal” means that your listing looks great from the street, making it more likely to stir up interest and showing requests from potential buyers. Here are some great curb appeal tips that will help your house live up to its full potential.

4. My agent should host multiple open houses to find a buyer

Recent trends indicate that the number of buyers who purchase a home they discover through an open house is rapidly dwindling. Open houses attract a lot of looky loos, but is it worth the effort of tidying up and stashing your valuables for the small chance that the right person will come through the door?

In some markets, maybe. But no matter where you are, the more important expectation is that your real estate agent has a comprehensive marketing plan, especially online. With at least 92% of home buyers using the Internet to search for real estate, your home’s online presence is more important than ever before.

The Internet is like one big online open house where buyers from all over the world come to browse. Make sure your home is represented well with great photos and an accurate listing descriptionListing syndication and a dedicated single property website will help your home stand out, too.

This article was sourced from Point 2. Follow the link to see original and other related content.

 

How To Make Your Kitchen Pop

Home buyers and sellers planning a kitchen redo have a lot of questions they need answered: What style of cabinets are in? What’s the newest color for countertops? What appliances should I install when there are so many? How do I ensure that my kitchen will be a gathering hub?

The cost of redoing a kitchen is on the rise, averaging $109,000 for an upscale renovation and $55,000 for a mid-range transformation, according to the 2014 Cost vs. Value Report. You can serve as a much-needed resource for clients, advising them on the dos and don’ts when considering a kitchen remodel and helping them identify improvements within their budget.

We asked some favorite kitchen pundits, including John Petrie, president of the National Kitchen & Bath Association and his firm, Mother Hubbard’s Custom Cabinetry in Mechanicsburg, Pa., about everything from paint to hardware to snazzy light fixtures.

Experts say the following dozen trends are generating the hottest buzz in kitchens this year:

1. Safety first. No matter how stunning a kitchen looks or how well it functions, it won’t make one iota of difference if fire occurs. Cooking is the leading cause of home fires, according to the National Fire Protection Association. Home owners have multiple ways to guarantee safety, such as paying full attention when cooking, knowing to smother a flame with a lid if a fire starts, and knowing how to operate a fire extinguisher properly.

When considering a kitchen renovation, clients should consider additional safety systems, such as Guardian Safety Solutions International Inc.’s fire suppression system that turns off a range to prevent reignition.

Design choices can also help curb accidents, such as ovens placed within easy reach of all family members, tactile floors to avoid falls, and good illumination.

2. Cleaner, contemporary lines. Styles fade in and out, typically following suit with fashion trends and the economy. This year, home owners are gravitating away from traditional and even eclectic designs, instead opting for streamlined, modern looks, says Petrie. This preference is showing up in less-ornamented cabinet fronts, sometimes with a flat door or minimal molding and simpler hardware. Trends also include less exotic countertop patterns, simpler floor choices such as wood planks or bigger tiles with less grout, and pared-back color palettes.

If your clients prefer some texture, materials like brick warm up a space with a handcrafted look. Try applying it to novel areas — how about on the ceiling?

3. Open wide. Whether it’s small or large, a kitchen that opens to other rooms — including the outdoors — offers space to cook. Clients could consider the different zones of a kitchen, such as eating and living space, says designer Jeff Collé of Estates by Collé in East Hampton, N.Y. His upscale remodeled kitchens often feature fireplaces, TVs, sound systems, and butler’s pantries — they’re now referred to as “caterer’s kitchens” since they include space and equipment to cook and clean up.

4. White still tops. While white continues to maintain its front-runner status because of its classic chic connotation, gray has increased in popularity, showing up in stained and painted cabinets and countertops fabricated from quartz, quartzite, limestone, granite, and marble with lots of gray veining. If home owners are making choices for a kitchen where they’ll live for years, opting for gray makes sense, but if they’re making improvements to sell, it may be smarter to stay with more buyers’ preference for white. Despite conventional wisdom, some pops of color can liven up a kitchen.

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Here are some examples of appliance trends:

Microwave drawers that are easier for all generations to reach than those placed above a range or cooktop.
Induction cooktops that heat up and cool down faster, saving energy. Their higher prices may deter some, as may their need for higher amps, says Shirley Hood, appliance salesperson and spokesperson for Abt Electronics and Appliances in Glenview, Ill.
More powerful gas range burners that offer higher output, even 18,000 BTUs.
Steam ovens that cook faster and allow for healthier food preparation, along with a second convection oven; some steam ovens include a cleaning function that permits spills to be removed without heating and smelling up a kitchen for hours, says Hood.
French-door style refrigerators that make it easier to view contents when doors are opened, they’re now available from some manufacturers with four doors.
Hot-water dispensers on refrigerator doors.
Refrigerator drawers, which can be located anyplace in a kitchen or family room for easy access and let family members get to fresh foods without crowding the main work zone.
Beverage centers and wine coolers that are placed strategically at points of use.
Dishwashers that have three and four racks for silverware and utensils; also, models that use less water, are quieter and bigger, and place jets along side walls.
Integrated appliances, better camouflaged behind panels to dress up open-style kitchens.
Faucets that conserve water and have touchless controls.
Long, deep, one-bowl sinks, sometimes with cutting boards to conserve space.
Smaller appliances that fit into smaller condos and homes.
Built-in coffee makers fully in view. Everyone wants to be a barista!
8. Drawers beneath countertops rather than doors. Rather than have to go through a two-step process of opening below counter cabinets and reaching into and rummaging through shelves, drawers that pull out and present all their contents are taking hold. The one downside: These shelves aren’t adjustable as are those in many cabinets.

9. Glass splash and more. Backsplashes have become a major focal point; subway tiles are still popular, though now with beveled edges; matte rather than glossy finishes; a variety of colors rather than just classic white; and in larger 4-by-10-inch formats rather than traditional 3-by-6-inch sizes. Today’s trend is also to lay the tiles in vertical rather than horizontal rows. Bigger glass tiles in shimmery hues are grabbing attention, too—and they represent a green choice, made out of recycled materials. Another option is handcrafted tiles with an Art Deco and Frank Lloyd Wright influence.

10. LED lighting. Because it’s been mandated by certain states and the federal government has required that incandescent lamps be phased out unless sufficiently energy efficient, more professionals and home owners are making the switch to energy-wise LEDs underneath cabinets and in cans, pendants, chandeliers, and sconces. Costs have come down for LEDs, and lighting trends lean toward fewer but larger pendants above islands and more decorative fixtures above tables.

11. Look, ma, no desk. Due to the trend of using smaller personal electronic devices—computers, tablets, phones—fewer homeowners need a separate desk. Nowadays, a designated counter with several outlets, sometimes concealed, becomes the go-to charging station replacing a desk.

12. Eating in and cooking out. An eating area is more de rigueur, whether it’s a big table, a corner banquette with a table, or a countertop. And outdoor kitchens, with varying dimensions depending on climate and budgets, remain popular. Many home owners no longer want the full panoply of outdoor appliances, which were often underutilized and overpriced; a good grill sometimes may be sufficient.

Sources: Charles B. Clark Jr., vice president of engineering services at the Brick Industry Association, Reston, Va.; Jeff Collé, Estates by Jeffrey Collé, East Hampton, N.Y.; Dan Hechtkopf and Reid Heidenry, South Beach Investment Realty, Miami Beach, Fla.; Shirley Hood, marketing, ABT Electronics and Appliances, Glenview, Ill.; Claudia Juestel, Adeeni Design Group, San Francisco; John Petrie, president, Mother Hubbard’s Custom Cabinetry, Mechanicsburg, Pa..; Kristin Petro, Kristin Petro Interiors, Elmhurst,