If you are considering purchasing a home in San Ramon or surrounding communities most likely you will need a home loan. The very first step in looking at properties is to get preapproved for financing. This puts you steps ahead of others that have not done their financial homework, and it shows sellers that you’re a serious buyer with your financing in place. [Read more…]
Considering purchasing a home in San Ramon or around the Tri-Valley area? Are you a senior citizen looking to buy, rent or potentially lease a new property? Here are some of the top home buying mistakes that seniors can make when considering purchasing a new property, home or condominium. [Read more…]
A buyer’s agent is that unknown entity that most first time buyers don’t even know about. Most people head out into the real estate world, scared and uninformed. A buyer’s agent is exactly that; an agent for the buyer.
When a homeowner lists their home they call on the knowledge of a listing agent. This agent draws up a contract to sell the property. The listing agent markets the property and can even bring the buyer. BUT a buyer’s agent is only for the buyer and represents the buyer’s side throughout the process, not the seller. [Read more…]
A lot of my clientele are over 50 years old and many of them are moving to the Bay area to retire, enjoy the waterfront and a more laid-back, peaceful way of life. However, some homebuyers are still reluctant about purchasing a home later in life. Is it scary? Are there negative connotations? How easy is it to buy a home after 50? [Read more…]
There are some homebuyers the know exactly what they want and when they see it they’ll know. Other buyers may have no idea what to look for and even though they are open-minded, nothing seems to stand out as a home they’d really want to buy. [Read more…]
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.
Consider 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.
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 than 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 answered. If you have any further questions regarding either buying or selling a home discuss them with your realtor.
If 2017 is the year you are going to be a homeowner or perhaps you’re going to sell your house and purchase a new one, start now before you’re even looking at any homes.
Let’s start with first-time homebuyers; if you’ve never purchased a property before but you’re tired of renting in 2017 is your year to be a homeowner, start now, immediately, by saving up some money and getting your credit in good condition. [Read more…]
Protecting Your Credit Score
Your credit score; that magical little number that tells lenders how big of a risk you are when they take you on as a borrower. It can literally mean the difference of getting a loan or not. Your credit score can also affect your interest rate and how much you’ll be paying monthly in a mortgage payment or any type of loan. You’ll want to protect your credit score and increase it if possible and here are some ways to do that.
When selling your home the last thing you want to do just turn off of a potential homebuyer. I mean, you are probably doing everything you can to appeal to the vast majority of homebuyers out there. You’ve cleaned, swept, maybe even done some home improvement projects but if you’ve done these five things or your home has these five things, you may be turning off homebuyers and not even know it. Here are five things that completely make homebuyers run for the hills.
I’m sure that you love your animals, whatever they may be, but many homebuyers may be allergic or simply not like animals. It also depends on what type of animal you have. If the first thing homebuyers see when they walk through the front door is a giant aquarium with an enormous live snake, they may turn right around and not even get past the front entrance. Dogs, cats, and a fish tank maybe one thing, even though homebuyers may be allergic. Many people can look past the simple dog or cat but even if you have these domestic pets, it’s best to take them out of the house and any and all evidence that they exist before a showing. If you have something more exotic such as a rabbit, bird, small rodent, reptile or another type of animal, it may be best to remove them completely while your home is on the market.
[Read More: How to Market a Luxury Home in the Bay Area]
This might be any type of trophy including a dead animal head on the wall. But, people also don’t want to see bookcases filled with sports trophies, awards or other items as they mean nothing to the homebuyer and only detract from the look and ambiance of the room.
I know, I know, we are getting into a solution society where sometimes even the American flag can turn people off but I’m not saying that you should take down your American flag if it’s on a pole in the front yard. However, I have run across several homes that you may have a teenagers room with a swastika flag on the wall, Confederate flag or maybe something as simple as a sports flag from a team that the homebuyer hates. Simply best to put anything that might give away the homeowner’s personal beliefs whether it’s political, religious or even sports related away until the home sells.
[Related Post: 5 Simple Tricks to Make Your Home Look Like a 5-Star Resort]
Nothing is more uncomfortable than walking into a house where there are naked pictures of people on the wall. I’m not even kidding, we have walked into homes with naked baby pictures on the wall, erotic pictures, and wallpaper patterns with nude women. Anything that is remotely offensive should be removed. You never know when kids, families or people that are simply offended by this will be touring your home. You don’t want them to quickly leave and never return.
#5. Too many substances.
This could go for a lot of different things; cigarettes, drugs, alcohol, pills etc. Homebuyers don’t want to see your vice, regardless of whether it’s prescribed or not. It gives an uneasy vibe to the house regardless of whether items are legal or not.
[Read More: Here’s What to Do When Your House Isn’t Selling]
These are on things but we wouldn’t be talking about them if we hadn’t come across them at some point. The best way to set your home up for the majority of homebuyers is to have your real estate agent go through the house offering tips, suggestions and advice for each room before listing and marketing the property.
Would you like to set that up? Give us a call today and I’d be happy to set up a listing presentation to find out how much your home is worth and how quickly it could sell. [Article adapted from Bankrate.com]