How To Handle A Bidding War

Posted by Naples Real Estate Team

Friday, April 27, 2012

How To Handle A Bidding War

So you have found the home of your dreams, it has all the features you want, and it is in the right neighborhood. Even the price is right, but suddenly you find yourself in a bidding war with one or more people who also think this is the perfect home. This can be a stressful and sometimes even heartbreaking experience, but what knowledge should you arm yourself with before entering a bidding war with other potential buyers? Here are a few important tips to remember in order to get the house of your dreams without breaking the budget.

Know Your Budget

Having a good idea of what you can afford and knowing your target price can really prevent you from making a bid that you may ultimately not be able to honor. The best way to do this is to get pre-approved for a mortgage before you begin house hunting. That way you will be certain of what you can afford, and if you do find that perfect house you will be able to move quickly to make the purchase.

Know Its Value

While the home for which you are involved in a bidding war may be the house of your dreams, paying considerably more for it than it is worth is never a wise choice. To avoid getting yourself into this situation, do your homework before making an offer. Look at the value of similar homes in the area, and contact a real estate agent or expert to determine the fair value.

Know What You Are Paying For

Getting the results of a home inspection, determining what features actually come with the house, and knowing how much you will have to spend to get it in livable condition will give you a clearer picture of what you are paying for, what comes with the house, and what your budget can hold.

Bid Smart

The fears in any bidding war are that your bid will not be the highest, or that the bidding will keep raising the price higher and higher. To prevent this from happening your best approach in any bidding war is to bid right the first time. If you are prepared to bid, making your best offer first time around will prevent your bid from being rejected due to another higher offer. Bidding odd amounts can sometimes make the difference between your bid or another being the highest.

In general, being caught in a bidding war for a home you really want is always a stressful situation, but armed with these few tips you can end up with the house you want at the price you are prepared to pay.

Hiring A Home Inspector

Posted by Naples Real Estate Team

Wednesday, April 25, 2012

Hiring A Home Inspector

You've gone to countless open houses, searched online for months, and have finally found the house of your dreams, but before signing your name on the dotted line there are a few key steps you should not overlook. When purchasing a home, hiring the right home inspector can be the most important decision you make. Knowing the condition of the house you are going to purchase cannot be left to appearances or promises, and some undetected problems can be even more costly than the price of the house itself. Making sure you have the services of a home inspector who knows what he or she is doing can prevent what should be a great investment from becoming a financial disaster. So what steps can you take to be sure your home inspector is qualified? Here are a few things to consider.

How Long Have They Been In The Business, And What Is Their Professional Background?

The housing market has steadily increased over the last several decades, and the home inspection business is booming. With new home inspectors becoming certified each day from a variety of programs, hiring the services of an experienced inspector can really make a difference. Though experience is always a good indicator of qualifications, also consider hiring an inspector who has a background in the housing industry, whether as a real estate agent or home builder.

What Are Their Qualifications?

With the incredible number of courses and schools offering certification in home inspection, knowing where your home inspector got their training and whether or not the course is actually recognized by the certifying body in your area is definitely worth the extra time to find out. Always ask to see proof of their certification, and make the necessary calls to the institution if there is any doubt.

Do They Have References?

This may seem an obvious question to ask any professional, but many people skip this step, and even fewer actually follow up on the references that they ask for. Always call the references that your home inspector provides, and be sure they can give you at least three recent referrals.

How Much Do They Charge?

While the costs involved in purchasing a new home can add up quickly, the temptation to try to save when hiring a home inspector should be resisted. Call several home inspectors for quotes, and if the one you have selected is considerably cheaper than the others, ask yourself why. Most certified and qualified home inspectors know what the competition is charging and will usually charge a similar rate.

While all this work may seem like a lot of effort for what may turn out to be just red tape, if there is a serious problem with the property you are hoping to buy and it goes undetected, what should be your greatest investment may turn out to be your greatest liability.

How To Handle A Motivated Seller

Posted by Naples Real Estate Team

Monday, April 23, 2012

How To Handle A Motivated Seller

Often ads for homes on the market include the phrase “motivated seller,” and while this sounds as if it may be to your benefit as a home buyer, what does it actually mean? If a seller is truly motivated you can benefit from a number of potential perks they may be willing to throw in to get their home sold, or they may even be willing to accept a lower offer than the asking price. Here are a few tips on how to find motivated sellers, and how to get the best deal possible.

Is The Seller Really Motivated?

Believe it or not, all “motivated sellers” are not really motivated. The phrase is often used by sellers and real estate agents to get a response from potential buyers. From the perspective of agents, if a seller is fairly insistent that they want a particular price for their home, which the agent feels is above the market value, they may use this phrase to encourage bids below the asking price. Sellers, on the other hand, may request this phrase be used whether they are motivated or not, in order to encourage a bidding war. Whether the seller is actually motivated or not may not always be apparent, but the best way to gauge the situation is by contacting the agent and making a low offer if you are interested.

So The Seller Is Really Motivated! Now What?

If you have put in a below asking price offer and it has been accepted, or a counter offer has been given, then you may really be dealing with a motivated seller.

So what should you do to make the most of this situation while protecting your own interests? The first thing you should always do is be sure you are clear about why the homeowner is so motivated to sell. Is there something wrong with the house or the property? Getting a qualified home inspector to carefully check the property before signing anything is very important to protecting your investment. If all goes well with the home inspection, you may have the opportunity to negotiate other bonuses as well, including the appliances, financing options, or a renovation budget.

Whatever the situation, it is always a good idea to have an agent represent you through the home buying process. They are your insider in getting the most out of the situation, and can help you wade through all the jargon of the home purchasing experience.

Negotiating Contract Contingencies From The Seller

Posted by Naples Real Estate Team

Friday, April 20, 2012

Negotiating Contract Contingencies From The Seller

When the housing market is up and sales seem to favor sellers rather than buyers, negotiation contract contingencies may seem like a lost cause. But there are always cases where you as the buyer can effectively negotiate purchase protection into the contract of your home, and you may even be able to convince your seller to throw in a few perks. Here are some tips to negotiating contract contingencies from the seller.

Common Contract Contingencies

Knowing what contingencies are often included in home purchase contracts is the first step in getting what you want from the seller. There are a number of contingencies that are commonly included in contracts, and while this list is not exhaustive, it can give you a good idea of what you may want to consider.

Appraisal-This is usually required by your lender, and while traditionally it is the responsibility of the buyer, you can get it covered by the seller.

Home Inspection-This important step can find any major problems with the house or property that could cause a decrease in value, or make it an unwise investment.

Loan Contingency-This is a term in the purchase contract that allows a buyer to back out of the contract if, after making a good faith effort to obtain a loan, the buyer is unable to obtain the loan. The buyer must remove the loan contingency (agree to proceed with the transaction) within the stated amount of time or withdraw from the contract. If a buyer withdraws from a contract because of failure to obtain a loan, generally the buyer is entitled to a refund of his or her earnest money deposit, less any costs actually incurred.

Early Occupancy Agreement-This agreement can speed up the usual 60-day closing period by allowing you to move in faster.

Existing Home Selling Clause-This clause makes the purchase of your new home contingent on your selling your existing home. This prevents you from being in a situation where you may be paying two mortgages at once.

How To Negotiate Contract Contingencies

In most cases if the seller is happy with your offer, and is looking to sell their home hassle free, they are likely to offer at least a few contingencies to a buyer. The best approach is to inform your agent of any contingencies that are an absolute necessity for you, such as an existing home selling clause, so they can clearly express this to the seller and the agent representing them.

Another Closed Short Sale Listing

Posted by Naples Real Estate Team

Wednesday, April 4, 2012

Thanks to another satisfied customer. For information on short sales see this link; http://www.naplesrealestateteam.com/short_sale_faq