Writing Offers that get Accepted!

Lately the market is going crazy. There are 20 or more offers on some homes, many well over asking price. So how does a Buyer get an offer accepted. There seems to be two approaches:

The first approach is to keep writing offers that are very reasoned, with a price based on sold comps. Sometimes asking for closing cost credits and maybe 30 days to close. Many people will submit dozens of offers like this; and in this market they will all be rejected. These are not offers that anyone will take seriously.

In this market at the time of this post to get an offer accepted you need to submit it almost as soon as the home comes on the market – don't take too much time to think about it – that is what a contingency period is for.

The price needs to be at asking (assuming asking is on the proper side of the moon) and maybe more. Don't think so much about sold comps and what it might appraise at. Think about how high the offers were you had rejected and how much higher you may have to go to get the offer accepted. Having cash or huge down payment is big, because the odds are that to get an offer accepted you will have to offer more than the home will appraise for. Think about how much the home is worth to you, not the appraiser. See my Post on How Do You View the Value of a Home!

Here is where Cash is King. Not because it gets you a better price – but it can help you get your offer accepted. With cash the appraisal is not that big of an issue and you can offer a quick closing time. Yes quick closing times and short contingency periods are big.

If you are a first time buyer and have a minimal amount for a down payment you may think you are being squeezed out. To some extent that is true, but there are still ways to make this market work for you and get a great home. However, those secrets of this market are for those that call me for help at 925-260-4321.

What I find with my buyers it is really hard for them to accept what they need to do to get a home. They will put in 5 to 10 or more offers before they get it. I give them the best advise I can then submit the offers they tell me to and realize it is part of educating the buyer. But when they finally get it and start putting in the offers they need to then all of a sudden they find themselves getting offers accepted on 2 or 3 properties.

Some people like to learn from experience – however it can be better to learn from other peoples experiences. Get a good Realtor and put in the right offers to get your dream home.

What to look for when Buying a Two Story Home in Brentwood

Right of the Bat I am going to say that Two Story Homes tend to be cheaper per SF. That is why there are so many of them compared to single story homes. Especially in newer or larger construction. Now I have found people that prefer two story homes over a single story, but most do not. A lot don't care

What Should I look for in a Two Story Home?

Things that will help you avoid using the stairs. What are those things, Downstairs Master Suites, or a downstairs bedroom. With many multi-generaltional families the downstairs bedroom is becoming more important. Often times homes around here will have a “Den” downstairs that can be converted to a bedroom, but make sure you have a full bath downstairs To avoid hauling laundry up and down stairs, upstairs laundry rooms are becoming popular.

Making the Two Story Home Work!

Sometimes people think they need a One Story Home, but there are alternatives. One of my clients in a wheel chair needing a larger home found it was cheaper to buy a two story home and put in an elevator.

Let Home Point Real Estate Help you find a Two Story Home!

Home Point Real Estate can help you find your Two Story Home in Brentwood or any of our fine local communities in East Contra Costa County of Brentwood, Oakley, Antioch, Discovery Bay, Pittsburg, Bay Point, Byron, Knightsen or Bethel Island. Give us a call at 925-260-4321.

Follow this link for more info on Buying a Two Story Home.

This weekend was beautiful and with football season over the buyers were out.  I had one of my best open houses ever.  The buyers were serious and they spent a lot of time in the home going over details of the home.

It seems that every year when the sun comes out in the Spring we find the buyers coming out.  This year with the Home buyers tax credit expiring April 30th (You need to be in escrow by this date) the buyers are particularly interested in getting a home.  Also many buyers understand that interest rates will begin to climb soon and want to beat the interest increases.

If you are thinking about Buying now is the time to get moving.

Why Should I over pay for that House?

I had a couple that over paid the appraised value of the home they purchased by $5,000.00.  They did this with my reccomendation.  Many of you might think that I am crazy for reccomending this but there are some things you need to consider:

1. Many homes are not being appraised properly due to new government rules to "protect" the consumers.  Often the appraisers are underpaid, over worked, in experienced, from out of the area, and pressured to come in low.
   
   
2. In this market we have about 10 offers on every Bank Owned Home on the market.  Frequently the person getting the home comes in with the highest price and an ability to pay what they offer, not what it appraises for. 
   
   
3. I am seeing more Asset Mangers and REO Listing Agents force buyers to agree to the price without an appraisal contingency. 
   
   

I realize this is not easy for a lot of buyers to do.  You can still get a loan if the property does not appraise for the purchase, but your loan can only be for the set Loan to Value (LTV) for that Loan Program.  With FHA that LTV is 96.5%.  So if you were buying a home for $100,000.00 they will only loan up to 96.5% of the offer; or $96,500.00.  Now suppose you put in an offer of $105,000.00 on the same home so you can be the top offer and get the home.  If it only appraises for $100,000.00 you would need to come up with the down payment of $3,500.00 plus another $5,000.00 on the down payment to cover the difference between the offer and the appraised amount.

I know this strategy does not work for everyone, but it is a good one if you want to get the home that you want.  There are also now loan programs with as little as 1/2% down and loans for closing cost; both can increase your purchasing power.  Ask me for a refferal to a qualified lender if you are interested in these programs.