Graphic look at why people use a Realtor
Graphic look at why people use a Realtor
Six easy things every homeowner can do to stage their home for a faster sell.
Most homebuyers aren’t able to pay for a home outright with cash. They finance the loan and pay a monthly mortgage. The homebuying process is a carefully choreographed process the could involve your Realtor, your lender, a home inspector, appraiser, and others. Once you have an accepted offer on a home, my job as Realtor becomes that of the choreographer—making sure everyone else hits their steps and performs their responsibilities.
One of the lead players is your lender. Here’s a brief checklist of what your lender does throughout the homebuying process.
Have questions? Let me know.
1. It’s a Sellers Market
Central Florida real estate has been in a strong Seller’s market since mid 2012. A Seller’s market occurs when residential property inventory is low, but Buyer demand is stable/strong. As a Buyer, you may have to compromise on some features you want in a home in order to purchase one. Home choices are few, so you can’t be ultra choosy.
2. Make Your Offer Stand Out!
Some Buyers today are including a personal note (and even a family photo) with their offer telling the Seller about their family, what they like about the Seller’s home, and that they will love and cherish the home as the Sellers did. Hokey? Maybe. But it is winning deals for these Buyers, so go ahead and be hokey. The only thing you have to lose…is the home you really want to buy.
3. Traditional Banks Are Not As Competitive As Mortgage Brokers
If you are using a traditional bank for your mortgage loan you need to understand that they have stricter requirements and are more likely to deny financing to you than a mortgage broker is. A mortgage broker “shops” your loan to numerous non-bank Lenders who have more leeway to compromise on issues than a bank does. You should at least consider having a mortgage broker look at your financial situation to see what they can offer you before you settle with a bank.
4. Buyers Must Make Strong, Appealing Offers
If you lose a property knowing you would have paid just a little bit more for it, will you regret it? If so, then make the highest and best offer you can make the first time. Don’t ask for extra with your offer. Buyers are asking for closing costs, a home warranty, appliances listed as not included, etc. These offers will not be as competitive as strategic Buyers who do not ask for them.
5. Use An Escalatory Addendum
Use of this form allows you to make your original offer at a lower price, but will allow you to raise that price to a maximum price in order to beat out other Buyers. It can be used only for short sales and traditional purchases. Just be sure you can qualify for the higher price, because if it appraises for that price, you are obligated to pay it if your offer is accepted.
6. Consider Making A Larger Deposit
A larger deposit equals a more serious Buyer, period. When a Seller is reviewing the multiple offers for his home, his Realtor will likely direct him to the cash or conventional Buyers, and those making larger deposits. Even if you are financing, you can make a larger deposit that will be applied to your closing costs and you could even receive a refund back at closing!
7. Ask Your Lender To Pay Your Closing Costs
If you are financing your purchase, you are competing against many cash Buyers who don’t need a loan. Cash sales in Central Florida have been over 53% of all purchases in 2012. Cash Buyers are easier to get closed than you are if you finance. Conventional Buyers have an advantage over FHA, VA, and USDA Buyers. If you are among the latter, ask your mortgage broker to increase your loan interest rate so they can pay much of your closing costs, allowing you not to have to ask the Seller to contribute! If they won’t do this, ask me about Lenders that will.
8. Consider Paying More Than The Appraised Value
Many Buyers today are offering MORE than the comparable sales indicate the property is worth. If you are willing to do this, your Realtor can include this in your offer, and it will be very appealing to the Seller. Be sure your Lender will approve this term, because they have specific criteria for you, and one of them may be having a minimum balance in your bank account. If your offer is accepted and the home appraises for less than sales price, the Seller may consider a price reduction, but he is not obligated to. If you do offer more, you may want to perform the appraisal before the inspections, so have your Realtor include this as a term on the contract as well. There is no need to pay for inspections if we can’t overcome a low appraisal.
9. Communicate And Be Honest With Your Realtor
Your Realtor is a licensed professional, but they can’t read your mind. Tell him/her what your specific needs and desires are. Do you have to move by a certain time? Are there any financial issues to overcome? Would you consider a fixer-upper? Could one of your relatives be living with you one day? Are you expecting? Are schools important? The more information you can provide the better you will be served. Buying a home is a huge decision, so be sure to communicate thoroughly.
Have any questions? I’m happy to answer them. Message me.
Taken from a class given by Melanie Ladines, Compliance Manager for Keller Williams Advantage. Thank you Melanie for always being on the forefront of legal compliance!
A look at the trends in Orlando for the past month.
I came across this recent news and wanted to share. It’s great news for those who have been impacted by the recession.
The Federal Housing Administration (FHA) is making it easier for once-struggling homeowners to qualify for a mortgage backed by the agency.
For borrowers who meet certain requirements, the FHA is trimming to one year the amount of time that homebuyers must wait after a bankruptcy, foreclosure or short sale before they may qualify for a FHA-backed mortgage.
The waiting period had been two years after the completion of a bankruptcy and three years after a foreclosure or a short sale.
But only certain consumers who’ve been in those circumstances will be able to meet the criteria attached to the eased restrictions. Borrowers must be able to show their household income fell by 20 percent or more for at least six months and was tied to unemployment or another event beyond their control. They also must prove they have had at least one hour of approved housing counseling and, among other things, have had 12 months of on-time housing payments.
“FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” said FHA Commissioner Carol Galante, in a letter to mortgagees announcing the changes.
FHA-backed mortgages are a popular option for first-time buyers and for consumers with lower credit scores who might not otherwise qualify for a loan backed by Fannie Mae or Freddie Mac. However, the agency has recently increased the fees tied to FHA-backed loans.
I can get you in touch with a great local mortgage broker/lender. Message me for details.
Copyright © 2013 the Chicago Tribune. Distributed by MCT Information Services.
Discover the trends, prices, and sales of homes—both nationally and in the Central Florida region–for August 2013.