8 Secrets to Getting Your Offer Accepted by Sellers in a Multiple Offer Situation

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With our shifting real estate market comes new (and in many cases) welcome problems to have to deal with. Take the relatively new occurrence of multiple offer situations in our area lately. After months (and years) of a buyer-controlled market, we are finally seeing fewer homes available and more buyers interested in the choice properties that are out there.

So what do you do if you are a buyer faced with multiple offer competition?  You BEAT that competition!  Here are eight ways to get around those other offers, make yours stand out and GET the home of your dreams!

Avoid a Bidding War in the First Place

One of the easiest ways to avoid a bidding war is to act fast on your interest in a home. If you see it, like it and want it – make an offer on it!  There is no reason to delay things because eventually you will have a chance to look back on the purchase while it is under contract and iron out any details. But if you don’t want other buyers fighting for the same house, beat them to it.

Keep The Emotions Out of It

Some overzealous buyers that don’t have their offers accepted lash out and retaliate against the sellers. Expressing anger and disappointment through a letter or via their agent is not a smart way to handle the situation. Often the first offer on a home is not even realized, where the seller revisits other bids received, going to their next choice. If you handle rejection gracefully, maybe with a thank you letter expressing regret but that you’re interested in the home should they change their mind, you may walk away with your dream home after all.

Bring Some Personality to Your Offer

While some agents prefer to make offers on behalf of their clients in writing and other impersonal ways, the best way to do it is by bringing an element of personality into your offer. Write a handwritten letter expressing what you love about the house and that you’ll take care of it just like they have for so many years (if applicable). This will show your sincerity in wanting the house and it will also stick in their minds when they go back to review all offers received on the property.

Choose a Communicative Agent

As mentioned in the previous point, some agents choose lackluster means of communication. When hiring your agent, be sure to select someone that is warm but also on the ball and quick.
Accessibility is key for the buyers’ agent as much as it is for the sellers’. If the seller is to gauge the level of your enthusiasm then they must be getting those signals from your agent.

Know Your Numbers

Sometimes the final sales price doesn’t matter. There will be an appraisal before the home is financed, which is the value that you will end up paying on the home. Knowing in advance gives you a head start over other buyers since you will be armed with knowledge ahead of time and can anticipate a reasonable offer accordingly. You should be aware of price per square foot as well as other comparable sales in the area. Keep in mind, there may not even be a need for a bidding war because the price might be capped by the appraisal anyway.

Don’t Stray From the Straight and Narrow

Offers that are simple, cleanly written and to the point are the ones sellers respond to the most. Especially in a multi-offer situation, sellers do not want to have to rifle through endless pages of contingencies, conditions, minor detail mongering and other unnecessary things. The easier you make it for the seller, the better your chance to get the home of your dreams. Remember that at the end of the day you can go back and identify any specific wants you may have but just wait until you have an accepted offer.

Choose Your Priorities Carefully

A common request these days is for FHA buyers to request assistance from the seller with closing costs. If you are a buyer that is faced with a multi-offer situation and you have the choice to not ask for closing costs – you may just be able to win your bid after all. Most sellers today are selling their homes after 10, 20 years and they have no idea of the recent trend of closing cost sharing. To avoid this and the potential of losing your bid on the home overall, don’t ask the seller – make alternate arrangements for closing costs. Borrow from someone. Accept a gift from a family member. Tap into your savings.

Do Better Than the Rest

An excellent tool used by buyers in these situations is to offer more than everyone else. Everyone wants more money and in today’s market sellers are already getting less than what they had expected to get. If you have found the home of your dreams pay extra money to make sure your offer is the one that is accepted and it will offset any costs you may have needed to put into a less-than-perfect property otherwise.
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Remember, this is a time when more buyers are vying for fewer available homes. So nothing is foolproof and there is always the potential of not winning your bid. The best defense you can have against that happening is to be prepared in advance. Get ready to be disappointed. If the home you are looking at is perfect, chances are there are others looking at it with the same eyes too. Aside from putting into our secrets into play, the best thing you can do is to stay realistic. When the right house comes along – things will fall into place. Good luck!

Home Selling System for Higher End Properties

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Selling a home is selling a home, no matter if its selling price is $100,000 or $1,000,000. But the secret to selling a home successfully is always in the honestly with which the transaction is conducted. Still, with higher end properties there is more money at stake so owners are equally as more wary prior to listing their home.

One of the ways we combat some of the perceived challenges of selling an upscale home is to be fully prepared by way of an appraisal. Most people do not realize that there are different levels of appraisals that can be performed on a property. They range from a simple one done just to fulfill a paperwork formality to a very complex and detailed one to help investors determine the viability of the purchase. Appraisals that are performed primarily for a bank that is simply processing a refinance will not have as much pull as the ones that are done for lenders looking to determine whether or not to loan money.

When it comes to a high-end home the transaction can get complex. For this reason we strongly advice homeowners to get a professional appraisal done prior to listing the home for sale. Not only does that provide them with the necessary market data but also it gives them an updated snapshot of what the buyers might find when they have an appraisal done.

How An Appraiser Determines the Fair Market Value

Armed with the proper information from an appraisal done through a licensed professional, sellers can then assess their price and also compare the same with other like kind properties in the area. Though there are multiple ways that a professional will determine the fair market value of your home, the most widely used form is reviewing comparable sales. The ideal information is of homes that sold in the neighborhood during the last 6 months – and it is important that the homes listed on the comps report only include homes almost entirely similar to the one being appraised.

Key areas that are considered during an appraisal are the physical condition of the home, area comparable sales from the last six months, the home’s structure, function and performance plus the overall expected life of the home. Of course the higher the appraisal, the greater the potential there is for a higher appraisal value, allowing the seller to realistically price the home for more.

Appraisers and Home Inspectors Play Different Roles

A common misconception is that a home inspector is the same as an appraiser. While the licensed appraiser does evaluate functionality of the home, inspectors are not necessarily always licensed and they are qualified to inspect the home for function, safety and structure.

How To Assist In the Appraisal Process

Though the homeowner will not be able to influence the appraisal process in any way, there are things that they can do to assist in the process. Be sure to keep all functioning aspects of the home that the appraiser would want to view unobstructed and easily accessible. Also, if there are copies of the home’s blueprint or past appraisals, providing them up front will be very helpful to the inspector. Lastly, remember to be respectful and courteous to the professional when they are reviewing your home.
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If you would like to explore selling your home or looking for a new one to purchase – contact us today. We would love to assist you in all your real estate needs!

The Secrets to Buying a HUD Home

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For several years now, the market around Toledo has been leaning towards REO properties.  REO stands for real estate owned and simply means properties that are owned by a bank.  Sometimes, buyers are concerned about these types of transactions because they seem to be more fraught with danger.  This can be true, especially if you don't know or understand the process.  Here are three things you need to know about buying a HUD home.

First, you need to understand about HUD home condition.  These HUD owned properties are not always money pits.  In fact, many HUD houses are in near perfect condition.  Most of them are in at least great condition to near perfect condition.  Some may need rehab, but it's very rare to find a completely destroyed HUD home.  Often, HUD homes may need some cosmetic work done to them such as new carpet or appliances.

The second thing you need to know is that lenders will work with you on HUD homes.  In fact, there is a great one called the 203K.  For example, a home may need a roof or have a missing kitchen, so the lender will give you a 203K loan which allows you up to six months to work with them to get everything fixed.  All of the money that you need will be rolled into the loan and allotted as needed.

These loans have the same low interest rate and easy financing.  You can think of it as an FHA loan on steroids.

The third point to remember is that these HUD homes are houses with instant equity.  You're getting a huge discount on these homes, and sometimes it is thousands of dollars.  The homes are preapproved and pre-appraised.  You can't get much safer than that.

At the time that I taped this video, there were over 30 houses around the Toledo area that were being sold as HUD homes.  These houses ranged in price from $19,000-$155,000.  As you can see, that gives you plenty to choose from in a very reasonable price range.

If you'd like to look at HUD homes or other kinds of properties, or if you just have general real estate questions, drop me an e-mail or give me a call.  I'm always happy to help!