Tri-Valley Real Estate Blog

Sanitization Stations Impress Potential Buyers

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In a world where sanitizing and social distancing have become the new normal, it is important to remember to incorporate them into selling your home to ensure that it appeals to as many potential buyers as possible. One way you can do this is by setting up a nice sanitization station in the entry of your home or even outside the front door on your porch or patio. [Read more…]

Should I Offer Less with an All Cash Offer

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I get this question all of the time because buyers think that if they have an all cash offer they can naturally offer less for the home. But is this a wise move?

It all comes down to the house you’re buying, the current market conditions, and the seller. Let’s go over some scenarios where it would be appropriate to offer less in a cash situation and other situations where you shouldn’t even consider offering a penny less than full asking price.

Should I Offer Less with an All Cash OfferConsider the sellers net. This is the amount the seller is going to walk away from. This is also where your buyer’s agent and the listing agent need to come together to negotiate the best price. If the seller is already at their lowest possible price that they can go and walk away either breaking even or with barely any net profit, you probably will not get accepted on a lower-priced offer regardless of whether it’s cash or not. Sellers don’t want to bring money to the table; they want to walk away with a profit.

You also have to consider the market. In the Tri-Valley area, there are micro-markets throughout Pleasanton, San Ramon, and Livermore. Within those cities, there are even smaller micro-markets where the real estate industry is doing very well and other areas where homes take longer to sell. It’s going to depend on the house that you are buying, the net profit, and what the market is doing in that particular community or neighborhood.

If the home is in a popular neighborhood where homes sell within a week or two, you probably can’t offer much less than the asking price if any discount at all. You may also need to increase your price in a hot market. You will have plenty of competition and if there are other cash buyers in your area, coming in with a lower price than your closest competition will get your offer thrown out.

Read More: What is the New SB800 Home Warranty?

Alternatively, if you are buying a home in the neighborhood or community where the properties don’t move as quickly, it will depend on how long the house is on the market and if it has been already reduced. You may have a little bit of negotiating power when it comes to cash in these types of markets. Again, talk to your buyer’s agent about the net profit for the seller and if they can even afford to go any lower.

Terms also matter. When presenting a cash offer the terms will also be either attractive or unattractive. If you’re offering a quick closing, no contingencies, a high earnest money deposit and you’re not lowballing the seller too much, your offer may be considered. Plus, if there are no other offers on the table, regardless of whether it’s cash or a finance offer, you might be more likely to get an accepted offer.

What about a short sale or foreclosure?

If you’re offering cash, this is very attractive to banks, which hold power to accept or decline the offer. Even though you offer less with cash doesn’t mean it will naturally be accepted. Banks will typically respond faster, however, if you’re offering cash. The lender or the bank will need to evaluate their net profit as well to see if they can walk away with as much as possible or as little loss as possible.

[Read More: Should You Always Pay Cash if You Can?]

It also will come down to the condition of the house. If the seller has chosen to list the house as-is, and it is in great need of repair or upkeep, it seems reasonable to offer a lower price if the market does not support its current asking price. This is where a qualified, knowledgeable and experienced real estate agent comes into play. Only professional real estate broker or agent will be able to tell you if the home is priced appropriately as is or if a low price offer would be an acceptable move.

So, you can see that there are a lot of different factors when it comes to offering a lower than the asking price if you have all-cash. Using a real estate agent to find you the best home and off of the best advice when it comes to negotiations and offer is really the key to getting the price you want on a home you love.

Looking to buy in the Tri-Valley area? Check out all San Ramon homes for sale, Dublin real estate, Danville homes, Livermore property, Pleasanton houses for sale, Alamo real estate and more!

More Great Tips for Home Buyers

Buying a House with Foundation Issues, What you Need to Know

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Foundation issues are generally one of the biggest red flags when it comes to purchasing Real Estate. Contrary to what many people believe, you can purchase a home with foundation issues and still be “safe.” Here are a few things that you should know prior to placing an offer on a home with foundation issues and damages.

RepairsBuying a House with Foundation Issues, What you Need to Know

If repairs have been made to the foundation already it is important that you have documentation of the work so that you know the severity of the crack, the repairs that were made and any potential damages that could be caused by the repairs in the future.

Many lenders will not approve a loan if there are any sort of structural damages or defects on the property. Because of this, you may need to provide proof of repairs or have repairs inspected prior to closing your loan to provide proof to the lender that the property is currently free of any active damages.

Cracks

If there are current cracks within the foundation, it is important to have it inspected thoroughly as repairs on cracks can range drastically in price. Some minor cracks may be as little as $500 to repair, whereas larger cracks can reach upward of $10,000 which can cause a pretty good dent in your budget.

If the cracks appear minor, moving forward with the purchase of the sale could still be a good option, however, should the cracks and damages be extensive then it is it vital that you discuss the damage in-depth with a professional assessor so that you are fully aware of the needed funds for repairs as well as any potential damages that may arise down the line due to the cracks. Additionally, as mentioned above, should the damages be severe, you may have a hard time securing funds from a lender.

While many buyers run at the thought of any type of foundation issues, as long as the proper repairs either have been made or you plan to do so, there really isn’t as much danger in purchasing a home with either a foundation crack or repair. As long as you work closely with your agent, discuss damages and repairs in-depth, and ensure to hire a reputable assessor, you can decide to either purchase a home with current or previous foundation damages and repairs, or decide to continue your home search elsewhere.

Looking to buy in the Tri-Valley area? Check out all San Ramon homes for sale, Dublin real estate, Danville homes, Livermore property, Pleasanton houses for sale, Alamo real estate and more!

More Great Tips for Home Buyers

 

Why the Highest Offer Isn’t Always the Best Offer?

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Contrary to common belief, the highest offer when selling your home isn’t always the best. If you’re currently preparing to sell your home, you may find yourself overwhelmed with the number of offers that will soon be rolling in. Homes are selling faster than ever, and often for well over the asking price. While it is tempting to go ahead and accept the highest offer, it is important to try and remember that the highest offer isn’t always the best offer.

ContingenciesWhy the Highest Offer Isn’t Always the Best Offer?

If the highest offer is lined with contingencies, even a contingency as simple as the buyer needing to sell their current home prior to closing escrow, the seller may choose to accept an offer that is free of contingencies, solely for peace of mind as well as providing less risk of losing a buyer after escrow has opened.

All Cash Offers

One of the most common reasons that a lower offer is accepted is because it is an all-cash offer. This nearly always ensures that the buyer is serious about the sale, and with no need to obtain financing through a lender, the sale can often move quite swiftly without hiccups or bumps during the selling and buying process.

Flexibility with the Timeline

While it is currently a seller’s market, often seller still needs to secure new housing or have to stick to a specific timeline before their new home is ready, and thus, a lesser offer that is willing to work with the seller’s desired timeline may be more desired than a higher offer that needs to close escrow by a specific date.

Letters

While letters don’t always do the trick, in some cases they may just be what closes the deal for less. Investors are purchasing homes like crazy and are often offering a pretty price tag, however, many sellers would rather sell their home to a family or individual who will use the house as a home, rather than sell to an investor. So even if it means selling for less, knowing the “who” behind the sale can often be just what is needed for the house to sell for less.

While there are many reasons as to why a seller may choose to accept an offer that is less than others, ultimately it is up to the seller and the seller alone who’s offer they choose to accept, whether it is the highest offer or not. As a seller it is important to discuss each offer in depth with your realtor to ensure that you fully understand it prior to acceptance.

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Finding the Best Mortgage in Contra Costa County

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Finding the Best Mortgage in Contra Costa County

When it comes to buying a home, the majority of us will need a mortgage of some kind. Unless you plan on buying a home with all cash, financing is the next option. However, not all financing is created equal. There are a lot of mortgage options, loans, programs, home buying assistance programs, and mortgage lenders to choose from. How is a buyer to decide? When it comes to finding the best mortgage in Contra Costa County, San Ramon, Walnut Creek, Danville and other towns, you do need to do a little bit of research but let me help you organize that research so that you know what to look for and what questions to ask. [Read more…]

5 Ways Home Buying Has Changed in The Last 50 Years

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5 Ways Home Buying Has Changed in The Last 50 Years

Over the last fifty years, the home buying market has witnessed radical changes. Generally, the cost of homes has increased drastically while the income of the average buyer has not changed that much. For instance, in 1970s, the average price of a home was eighty-seven thousand dollars. Fast forward to 2017, and the average cost of a home was one hundred and ninety thousand dollars without accounting for inflation. In this article, we are going to review five major ways in which housing market has changed in the last fifty years. These changes include: [Read more…]

Should We Fix Up the House Before Selling in This Seller’s Market?

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Should We Fix Up the House Before Selling in This Seller’s Market

The choice to sell your house as it is or invest in repairs is a critical decision you could ever make. If you make your decision without consulting the market state, then you are committing economic suicide. Therefore, it would be appropriate if you consider many factors to come up with a firm decision whether to sell as it is or whether to do repairs. Let us briefly explore this factor. [Read more…]

The Most Common Questions Homebuyers Ask

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The Most Common Questions Homebuyers Ask

While it is a well-known fact that there are a million and one questions when it comes to buying a home, the truth remains that we might not fully be aware of what those questions truly are. Of course the list of possible questions is longer than any of us care to read, however, we are left wondering what questions are the most common and the most likely to be asked. With the chaos and unavoidable stress that comes with buying a home, unfortunately even the simplest and most common questions can sometimes get missed. Whether you are selling your home and are hoping to get an idea of what questions you should be prepared to answer, or you are searching to purchase a home and want to be sure to hit the nail on the head, here are a few common questions to keep in mind.

What Can I Afford?

If this isn’t a loaded question then I don’t know what is. There are multiple factors to look at when you are budgeting for a home. While we would like to believe we can spend our full income on our homes that isn’t necessarily the case. With recurring payments on vehicles, daycare bills, medical bills, household utilities, prior obligations, and more you need to make sure you are deducting your allotted funds from your income to get a true and accurate idea of where your budget truly lies. There are many different home calculators available online that will even factor in your revolving debts for you!

When Can I Make an Offer and How Many Homes Should I see First?

Sometimes it is hard to know when you can and/or should make an offer. The best answer to these questions is simple; it’s completely up to you! While it is unlikely that homebuyers tour one home and immediately make an offer it is definitely possible. Whether you tour one home or twenty homes, putting an offer in is something that ultimately you should be comfortable with. After all, it will be your home and nobody else’s.

When Do I/We Get Keys?

The closing process can often be a long waiting game. While the closing process varies depending on the state of the home, inspections, banks, etc. the average time to wait for a home to close after your offer has been accepted is generally 30-45 days.

What is Fair?

We all like to save our finances when possible which can leave us wondering what a fair offer could be. Generally speaking, taking 5% off the asking price of the home is an offer that typically won’t cause any havoc. By offering anything below that you could be offending the homeowners and find yourself in quite the pickle.

Can I sell my Home while Buying a New One?

While the answer to this question is yes, you need to be aware that this process is not an easy one.  There are many different factors that make the equation of selling and buying a tricky one. The main thing to understand when selling your home is that the timing might now work in your favor either leaving you homeless for a certain amount of time before your new home closes, or stuck with a home that hasn’t sold and being solely responsible for two mortgages. Ask your realtor for more information!

Is a Home Inspection Needed?

While we may not see the need for an inspection it could save your butt in the long run. An inspector will look at any underlying problems that we wouldn’t be able to see with the naked eye. Checking things like the roof, electrical systems, heating and air, plumbing and more you can save yourself a pretty penny by foreseeing any issues that could potentially arise in the future.  This also allows you to negotiate sale price with the seller should there be any problems.

I Changed my Mind, Can I Back Out?

This is common don’t panic. Sometimes we are so caught up in the moment that we don’t realize we put an offer in on a home that might not be the right fit for us. Luckily you are able to back out at any point during the home buying process. The only downfall to this is the possibility is losing your earnest money. Of course, if there is a valid reason to why you are backing out your earnest money will be refunded.

While the questions could continue on until we’ve written a novel with multiple volumes, these common questions are the ones that many people focus on or want and need to be answered. If you have any further questions regarding either buying or selling a home discuss them with your realtor.

More Great Tips for Home Buyers

Are all Home Owners Association (HOAs) Created Equal?

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A homeowner association (HOA) is a group or an organization that creates and enforces rules and regulations for a subdivision, planned community, or condominium building. People who are members of HOA pay a monthly fee which HOA uses to maintain the shared space. Several issues such as trash removal, security matters, and other recreational activities are funded by an amount collected from all residents. [Read more…]

Benefits of Blogging About a Home Listing

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Benefits of Blogging About a Home Listing

There are so many factors that go into putting your home on the market. Everyone can agree that the quicker you sell your home the better right? One of the best ways to get your home sold quickly is to get the word out about your home. The more people that know your home is available the better because it will enable you to find that perfect buyer to fall in love and deem your home the perfect home for them. [Read more…]