Given the lack of homes for sale, we often see multiple offer situations. It pays for buyers to be prepared should they find themselves in a bidding war. Here are some tips to help put your offer in the best position.
- Keep contingencies to a minimum. Decide what inspections you can live without and don’t add in extra clauses.
- Find out the seller’s ideal closing date and use it for your closing date.
- Keep all contractual due dates in as short of time frame as possible.
- Be prepared to offer over the asking price. Money talks and usually the higher price wins.
- Cash offers beat offers with loan conditions. (Unless the offered price is significantly higher than the cash offer). Present a pre-approval letter with your offer if it is based on a loan.
- Even though you may be getting financing, you can write the offer as a cash sale with no loan contingencies. You must be confident you will get the loan with no issues.
- Include a letter to the sellers explaining why you love their house.
Bidding wars are emotionally tough as someone always loses out. Give your best and final offer so you have no regrets if you don’t get the home. Contact me if you want to work with an accredited buyer’s agent to help you navigate the challenges of buying a home. www.DonnaForest.com; Donna@DonnaForest.com; 603-526-4116
If you are considering the purchase of a specific house, it’s best to review the seller’s property disclosure before making an offer. While some disclosures may not be a wealth of information, usually disclosures provide pertinent facts that could impact what you are willing to spend on buying a home. For example, if the water heater is 18 years old, you need to be aware that it will need to be replaced in the near future. Looking at the age of the systems and the roof will help determine if you will be facing costly replacements sooner rather than later. Check when the septic tank was last pumped. If it hasn’t been pumped within the last 3-5 years, it could be a red flag. Is the property located in a flood zone? Flood insurance will be an additional expense to factor in your payments. Reading carefully through the disclosure could provide valuable insight into future costs. Ask questions and get clarification if something doesn’t look quite right. Obviously a home inspection will be the best tool for gauging the condition of a home. However, thoroughly reading the disclosure ahead of time could prevent unwelcome surprises. Contact me to work with a buyer’s agent who will help you make the right buying decisions. 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
Finding your dream home can feel stressful, but there’s plenty of great real estate for sale to suit nearly every buyer. Breaking down the process of buying a new home into steps isn’t only helpful, but it will help it feel manageable. Below are 10 great tips to help you go from dreaming of owning a new home to actually holding the keys.
Make a wish list and prioritize your needs
Now is the time to think about what your perfect home looks like. Unless you have a bottomless bank account, you probably won’t be able to get everything you want. Perhaps you’ve always dreamed of having a fireplace, but when it comes down to it, what you really need is a home located near good schools.Taking time to make a wish list will help you prioritize needs over wants.
Set a realistic budget
Perhaps the most stressful part of buying a home is setting a budget, yet this doesn’t need to be a daunting task. Figure out how much house you can afford by examining your current salary and debts. A mortgage payment should never be more than a third of your income, while your debt should be less than 40 percent of your income.
Hire a great real estate agent
Unless you’re an orthodontist, you probably wouldn’t attempt to fit someone with a pair of braces, right? The same theory holds true for buying real estate. Great REALTORS® will demystify the process of finding your dream home, from working within your budget to putting in a bid. In addition, it’s their job to know the market and they can help you find your perfect home, even when there’s competition from other buyers in your area.
Make a checklist
You’ve prioritized your wish list, set a realistic budget, and hired a real estate agent. Time to sit back and relax, right? Wrong! Now’s the time to make a checklist of all the things you need to consider when finding your dream house. Your list should include the priorities from your wish list. For example, how close is the house to schools and grocery stores? Does the home have a fireplace? How much does the current owner pay annually in taxes? Preparing a list of questions before you purchase your new home will make sure you don’t have questions later.
Location, location, location!
Although it might seem obvious to carefully choose where you buy a home, you’d be surprised how many people cut corners. Is it a priority for you to find real estate close to schools? Or perhaps it’s a priority to be located off a busy street to avoid noise pollution. In short, a dream home isn’t ideal at all if it’s not located in the perfect place.
Think about how you use space
A parlor is lovely, but if it’s only used a couple times a year during holidays, perhaps you’d get more bang for your buck by focusing on a home with well-used rooms. For example, if you spend a lot of time cooking, then it makes sense to buy a house with a large, well-equipped kitchen. Likewise, if you’re a freelancer, then it might behoove you look into a home that has an extra bedroom that could be converted into an office.
Would you like to renovate?
Do you take pleasure in making home repairs or would you prefer to move into a home that requires very little work to move in? Renovating a home can be a tremendous amount of fun, but it can also get expensive. Be realistic about what repairs will cost and whether you have the time and energy to get the work accomplished.
Make an offer
Making an offer on your dream house is one of the most exciting days of your life. It’s also one of the most nerve-wracking. Although the current owners could say “yes,” there is a possibility that they might decline your offer. To make your offer attractive, avoid pushing out the current owners too quickly by asking for a fast closing date. Also, don’t lowball them by offering far less than the listing price. Your real estate agent should be able to give you advice about what will make an attractive offer.
Don’t neglect the home inspection
Once your reoffer has been accepted, it’s time for a home inspection before you finalize the contract. This is the time to look deep and have a professional home inspector look at the foundation, roof, electrical wiring, heating systems, insulation and other items that are generally hidden from view. While it might be tempting to seal the deal as quickly as possible, having a home inspection can save you from expensive problems down the line.
Celebrate!
The entire process, from browsing the real estate for sale in your area to moving into your dream home can be daunting. Once you have the keys to your new home in hand, make sure to celebrate with your loved ones for a job well done!
When considering the purchase of a fixer upper home, it’s important to evaluate how much time and money you will have to spend on renovations. It’s often the case that houses needing a lot of TLC are available at rock bottom prices. However, this can mean excessive costs when it’s time for renovations. Here are a few things to consider before taking the leap.
How much work can you do?
Determine how much of the work you are willing and able to do. If you’re a master at hanging drywall and your significant other has a knack for plumbing, it’s very possible to save big. This could be the difference between an inexpensive property that needs a great deal of work, but is ultimately within your budget after renovations, and one that is not.
Keep in mind when deciding which work you’ll do yourself that safety is key. Anything that you don’t truly know how to do, especially things like electrical work, plumbing or jobs involving power equipment, should be left to a professional.
Consider how much time you realistically have. If you work, take care of your family or otherwise have engagements that occupy most of the day, don’t take on huge DIY renovations.
Choose contractors wisely
Before closing on your fixer upper, speak with a few contractors to get an estimate of the work you plan on handing off to a professional. Without knowing how much you’ll need to spend to make the house look the way you want, you can’t know what the real cost of ownership will be. Once you have quotes from several contractors, work with your real estate agent to come up with an offer that considers how much you’ll be spending to get your new home in top shape. Your agent might suggest putting a clause in the contract to have some of the worst problems repaired by the current owners before the closing.
Before settling on a specific contractor, talk to friends, family and neighbors to get a sense of the quality of work you can expect from each candidate. Reviews go a long way when choosing the best company for specific needs.
Hire a home inspector
In most situations that involve a mortgage or other loan from a bank, you will be required to have the house inspected before the loan is approved. Even if this isn’t the case, hiring a qualified home inspector is a critical aspect of ensuring you know what you’re getting yourself into with a fixer upper. For instance, you might be able to tell that the floors in the kitchen will need to be replaced, but only a skilled professional can say for certain whether the foundation is solid or if asbestos is in the attic.
When it comes to real estate, knowledge is power. Take any information provided by a home inspector and consult your agent about how to proceed. They might recommend working part of the cost into negotiations.
Add a cushion
After you’ve decided which portion of the fixer upper’s remodeling you’ll be able to complete, consulted several contractors and had the home inspected, you may be anxious to close. However, there’s another critical step to ensure you’ll be able to afford the renovations.
Unforeseen circumstances often arise during the process of remodeling. It is essential to account for these when determining what you can afford. A general rule of thumb is to add between five and 10 percent to the anticipated costs, just in case your contractor discovers pipes that need to be moved or if the price of the materials you choose increases. By adding a cushion to your financial projections, you should be in a great position to realistically determine whether a fixer upper home will truly be worthwhile.
Before you purchase a home, hire an inspector to make sure the structure is sound and there aren’t any defects.
An inspection helps buyers identify serious issues with a house, condo, townhouse or other type of home. Some lenders require home inspections before they’ll approve closing on a mortgage loan. Professional home inspections aren’t always a required part of a purchase contract; they’re a smart part of buying a home and a property investment.
Whether or not a loan officer insists on an inspection, getting a home inspected is to your advantage. No one wants to find out there’s something wrong with a property after they’ve signed the papers.
Here’s what you need to know about home inspection, followed by a handy home inspection checklist:
Not all home inspections cover the same points
There will likely be numerous home inspection companies and professionals to choose from when you’re buying a home. As you look for an inspector or consider inspection company referrals, keep in mind that not all inspections cover the same points.
When inquiring or interviewing inspectors, make sure those you’re thinking of hiring will inspect the inside and outside of the property. Inside, an inspector should look for leaks, fire hazards, the health of the house systems and the life of the water tank. Plumbing and wiring inspection are essential to make sure these systems are up to code. Inspectors should look at a home’s ventilation systems and smoke detectors. If the home has appliances, they should be tested.
Outside, inspectors should check for cracks in walls and the foundation. Missing siding, damage to the roof and cracked woodwork are all issues that may point to structural problems with a home.
Most general home inspectors won’t check septic systems or insect damage. These are points that you should hire specialists to address.
Buyers should choose their own home inspector
As a buyer, you can certainly negotiate who pays for a home inspection. However, consider that sellers paying for an inspection may want to choose the company themselves.
It’s in your best interest to choose your own inspector when purchasing a home. This may mean that you’ll have to pay out of pocket for the inspection. This service is not usually included in the fees a lender will roll into a loan.
The cost for a home inspection is typically a few hundred dollars. If you need in-depth inspection of a property, such as a review by a structural engineer, prepare to pay much more.
In some states, a home inspector must have a license. If you aren’t sure where to look for a licensed home inspector, your real estate agent should be able to offer a referral. It’s a good idea to verify any inspector’s license to make sure you’re hiring someone qualified.
Home inspections can offer a way out of a purchase contract
Every purchase contract is different. Buyers should refer to their binding agreement with questions about getting out of a sale due to issues that come up during a home inspection.
It’s wise to write a purchase offer that lets you out back out of a sale if an inspection reveals issues with which you don’t want to deal. Sometimes, buyers are willing to spend the extra time and money to fix problems. Often, it’s just not a good idea. If your agent or you have written a good purchase offer, you’ll be allowed out of the contract should the home inspection uncover problems.
If a home inspection uncovers damage to a property, buyers can ask the seller to pay for repairs as part of the contract. Buyers and their agents may want to submit a Request for Repairs that negotiates part or all of the cost of repairs, or asks for repair work to be completed prior to close of escrow. In lieu of money for repairs, you can request a cash credit (reduced price) for the home.
Refer to the home inspection checklist
It’s always smart to be present when an inspector is checking out your potential home. If you’re working with an agent, your agent should also be there at the inspection. Some of the specific points you’ll want to make sure your inspector looks at include:
- foundation
- lot
- roof
- chimney
- exterior
- attic
- interior leaks
- basement
- electrical
- plumbing
- appliances
- heating/cooling system
- odors
- mold and mildew (consider a specialist in this field)
An inspection is a crucial step in the home purchase process. Remember, it’s there to help you, not discourage you. Many home inspections reveal minor issues that buyers can live with. There aren’t many houses that are completely free of defects.
Having a real estate professional by your side is important during the home inspection process. If the inspection report brings up any issues that you don’t understand, or aren’t comfortable making a decision about right away, your agent can help you navigate the situation wisely and within the time frame indicated in your contract.
Source: www.bhgrelife.com
- Don’t try to second-guess interest rates or the market by waiting for the “right time”. If you find a home you like, buy it.
- Accept the fact that no house is perfect. Concentrate on the items important to you and let the minor flaws go.
- Get approved for a mortgage first before even looking. This will set your price range and also enhance your offer.
- Don’t look at every house on the market just because they are there. Be picky and look at the most appealing. Then add to the list if nothing fits.
- Don’t worry if you feel buyer’s remorse after making an offer. It is common and will pass. Buying a home is a big decision but the benefits far outweigh the negatives.
- Work with an experienced local agent. Buying can be emotional so pick someone you’re comfortable with and respect.
Contact me if you are looking for an accredited buyer’s agent with over 24 yrs. of experience to make your buying experience a success! 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
With rising prices and low inventory, it’s challenging to buy your dream home. Below are some tips to help position yourself for success.
- Get pre-approved for a mortgage before looking. This is different than getting pre-qualified. Pre-approval requires documentation and is not based on estimates.
- Work with a Realtor who has experience and a proven track record. They will provide invaluable advice.
- Be prepared to move quickly. You don’t have days to think it over.
- Don’t make lowball offers. Your offer should be as attractive as possible. Things to consider – make a larger deposit, offer a flexible closing date, don’t sweat the small stuff, and have as few contingencies as possible.
- Decide what you are willing to compromise on ahead of time. Figure out what matters most – is it location? Size? Style?
It’s expected to continue as a sellers’ market and you need to be mentally prepared to up your game when it comes to buying. Contact me if you want expert guidance through every step of your home purchase. 603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com
You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team.
Buying a home is a multi-step process that can be complicated, particularly for first-time buyers. It is crucial to be aware of each step, as competition can be steep: one misstep and the keys to a dream home could go to another family. Read on to discover the best path to acquire one of the greatest investments to date.
Step No. 1: Decide on a REALTOR®
A real estate agent and a REALTOR® are different. While both must be licensed to sell real estate, a REALTOR® goes through numerous background checks and must follow a strict code of ethics, which is consistently enforced by local real estate boards. Another distinction between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Ask for referrals and read online reviews/testimonials. Interview multiple agents to find the right one. Look for agents who have realistic expectations and are experts in desired neighborhoods.
Step No. 2: Get finances in order
A three-digit credit score and credit report tell financial stories more than bank accounts do. Everyone must carry debt in some form, and the process of paying it can span a lifetime. Paying cash for everything results in a lower score than responsibly carrying debt. A steady job and income can bypass a bad score if prospective clients are willing to put down 10-20 percent. To improve scores, future homeowners should pay all bills on time. A single missed payment can stay on credit reports for seven years, with recent delinquencies impacting scores the most negatively. Additionally, credit limits should not be exceeded, and balances should be kept below 30 percent of the credit limit.
Step No. 3: Apply for pre-approval
A pre-approval letter is a statement from a lender demonstrating that one is a qualified buyer who sellers will take seriously once ready to make an offer. Unless one plans on paying cash, a mortgage pre-approval is a good idea before beginning the home-buying process.
Step No. 4: Know the difference between wants and needs
Real estate agent will not know where to begin if a prospective client does not. Start thinking about must-haves. They can range from location to the number of bedrooms. Wants can include a pool or a guest home. Compromises are the things one is willing to exchange for needs. For example, a great school district can be attainable if the number of bedrooms is reduced.
Step No. 5: Begin the home search
Open houses will become a favorite activity when a real estate agent begins showing homes that fit criteria. This is a fact-finding mission. Take notes and jot down ideas about what is liked and not liked. This will streamline the process and give real estate agents all they need to know to make a happy homeowner.
Step No. 6: Check off mortgage approval
An accepted offer will begin the closing stage of the home-buying process. A lender will give the final approval for the purchase and specify the closing date. This is not the time to celebrate by splurging on big ticket items. Unexpected expenses can show up without warning. Paying property taxes or insurance for the first full year on the closing date might be a noted point.
Step No. 7: Get a home inspection
A good home inspector will audit the house from top to bottom, literally. They will look at the basement and the roof and everything in between, including the heating system, plumbing and windows. Given that purchasing a home is likely one of the largest investments a person will make, don’t skip this critical step. If repairs are necessary, this can be negotiated with the seller before the final sale.
Step No. 8: Prepare to close
Once at the final step in the process, one can pat themselves on the back for a job well done. The closing table is the desired location where the deed will be transferred from the seller to the buyer. John Hancocks should be ready because there could be hours of paperwork. An attorney or settlement agent will most likely be present.
May your new home be the happiest one on the block!
Source: www.bhgrelife.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
The answer is “yes”. It is both depending on the property you are trying to buy or sell. I know, the news is full of stories on the shortage of inventory, high demand, and rising prices. The truth is the type of market you face is dependent on the price point and condition. In general, our area does not have enough listings in the price range for the bulk of buyers who are buying. Home prices have reached unaffordable levels for many 1st time buyers. And the downsizing baby boomers have specific needs (newer, 1st floor master, near town amenities, mostly under $400k) for which there is pretty low inventory.
Overall, sales are about the same as 2016 in New London, Sunapee, & Newbury, mainly due to lack of desirable inventory. New London is actually down from last year YTD, thru Oct. With a median price of $342,000 in these 3 towns combined and an average days on market of 127 days, it can be confusing to understand what type of market is in play.
Bottom line, buyers trying to find a move-in ready home under $300k are in a sellers’ market. Sellers with homes that don’t fit the desired condition and price for the bulk of buyers are in a buyers’ market. Whether buying or selling, contact me if you want to know what you are facing!
Figures are based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/16 thru 10/31/16 and 1/1/17 thru 10/31/17.
Donna Forest 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
Don’t Be Surprised By….
Next to price, most buyers focus on the location and appearance of the property. Below are some lesser known factors to consider when house hunting.
- Private Roads – if the house is located on a private road, find out if there is a road maintenance agreement with the other owners. Lenders may require one before they issue a mortgage.
- Flood Zone - Looking at waterfront? Flood insurance could be required if the structure is located in the flood zone.
- Lead Paint – Homes built prior to 1978 could contain lead paint and the paint flakes or dust can present a health hazard. Even if the paint is in great condition, keep in mind any renovations by a contractor that would disturb areas with lead paint may cost more as they have to be certified and follow specific safety practices.
- Age of Systems – Even if it is well maintained, systems don’t last forever. Well pumps, furnaces, water heaters, and even septic systems have a life span. Knowing the age of these systems will help prepare for future expenses and may factor into your offer price.
Avoid costly surprises on your home purchase by working with me as your Accredited Buyer’s Representative! 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team