This is a buyer's market

Right?!?!

Wrong!  This statement hasn't been true for about 1.5 - 2 years now.  Things have slowly been turning to where it is now a seller's market.

What does that really mean anyways?  The difference between the two is where the supply and demand is.  

                  Previously, there was an abundance of houses available and not enough buyers for them all.  This meant that the buyer was able to be very choosy over which house they wanted and were able to get the seller to agree to almost anything if they really wanted to sell their home.  A buyer's market.  

                 Now that the excess foreclosed homes have been purchased, the interest rates are down and the sellers were so scared due to media coverage, there are not as many homes that are on the market and available to be purchased.  Buyers are having to sometimes fight for the house that they want and don't always win.  Sellers are able to ask a higher price and get it, offer less upgrades and have their house on the market for a shorter amount of time.  A seller's market.

How does this affect me as the Buyer?

                 The biggest way that this leaves an impact is that the buyer now has to add in additional time.  Before the buyer was able to find a home very quickly and get the process completed in 30-45 days.  This time period of looking and bidding is now longer because they are not always going to get the first one that they are putting an offer in on and there is sometimes more negotiations than before.

                 Another thing is that they buyer has to be willing to settle a little bit more than they did before.  You can't make demands upon the seller and expect to be the winner in that battle.  When you are putting an offer in on a property, you have to bring your best offer first because you don't know how many other offers may already be in or will be following yours.  Sellers are saying No now.

                  Please be realistic!  We try to explain to you that there are a low number of homes available to choose from but you still have a very specific list of items that you are expecting us to produce, it makes us look like we are not doing our jobs when in fact...it's just not possible!  Make a list of the items that are the most important to you.  Your agent should be able to put all of the items in and slowly remove items to open up the possibilities that are out there.  Just don't give her a hard time for not being able to find you everything you are looking for in that dream home.  (You could always build new then lol)

What can help get my offer picked?

                  As I stated above, bring your best offer first.  This is not a time to give the seller a low-ball offer and think that they will give you a counter offer.  The sellers are confident enough now to say no and have no problem waiting for the next offer to be presented.

                  Make it a clean offer.  What this means is that the more requests that you are adding into your offer, the muckier it gets.  This could include items such as closing costs, appliances, window coverings, furniture, washing & dryer, home warranty, points & pre-paids, having a closing date that is beyond a reasonable time period, possession date, etc.  The more things that you ask of the seller, the more likely it is that they will say no.

                  Pre-approvals are soooooooooooooooo necessary.  Hopefully you have spoken with a lender before you even started looking for homes.  If not, shame on you because you may have just cheated yourself.  I am going to have another post dedicated just to pre-approvals so you'll want to make sure that you watch for that to see why they are so necessary.

                   Closing costs.  This is a subject that I always have a lengthy discussion with my buyers about.  Your lender should be able to give you a pretty good idea about what this number will be.  It is a negotiable amount that can usually be asked of the seller to pay to help the buyer out.  The amount differs depending on the type of loan that you get.  BUT, don't ask the buyer to pay closing costs after you have just insulted them with a really low offer.  This is not the way to get your offer picked!

I know that this isn't a complete list of everything that you should and shouldn't do, but hopefully it has given you a good idea of why this is now a seller's market and what you can do to get that home of your dreams purchased!

           

Welcome to the New Year!

It's a New Year and this is YOUR year!  This is the year that you are going to keep every single resolution and that you are finally going to buy that new house, right?

Awesome.  Let me be the first to help you out with that :0)  This really is going to be the year to buy.  More sellers are finally realizing that they are able to get the most out of their homes.  You're not going to be seeing a lot of rent with the option to buy and rental pricing is going to be increasing too.  Why keep making someone else's mortgage payment and getting nothing for it?

In 2014, I worked with 2 buyers that started out thinking that they were not able to buy a home.  They thought that their credit wasn't good enough and that there wasn't going to be any homes in the price range that they were going to be looking in.  Thankfully they were smart enough to call me and have the discussion about it.  I work with a variety of different lenders which allowed me to find the perfect match for them.  And guess what, they now both own homes!

Don't discount it.  Let's get this year started off and get you into a new home.  You never know until you ask, right?  Call me and ask!

The Perfect Holiday Gift: A New House!

How many of you read that title, said "Yeah right" but had to read more any way?  Was that you?

Well never fear because it definitely could be a possibility!

One of the reasons that I am given most (after credit) when asked why someone isn't buying their own home instead of renting is that the potential buyer doesn't have the funds for a down payment.  

I have a couple different solutions that could help you this holiday season to buy your very own home as your present.  And I know the perfect Realtor to help you find that dream house :0)

There are loans out there that don't even require a down payment.  Some people don't even know this.  

• USDA is a loan that is offered in rural areas.  There are requirements on the price of the home and an income cap that you have to meet to qualify, but it could be a good thing to look in to.  
• VA loans don't require money out of your pocket either.  Of course there are items that have to be met in order to get one of these.

When talking with friends and family about your wish list, ask them to simply make a deposit into a savings account that you are using as your down payment money.  This is something that is completely acceptable and will be recorded by the bank about who the transactions are from.  Speak with a lender first, but for most this will be satisfied as a gift letter.  Parents, grandparents and older family members will usually be especially responsive to this and may give more than $20 if they know that you are using it towards something for your future.

If you would like other creative ideas about getting the money down for your home, contact me today and we can work together to figure out a way to help you.  Remember, FHA loans are usually on 3% of the purchase price ($100,000 home purchase price would only require $3,000 down).

Happy Holidays!

How Much Does A Realtor Cost?

Guess I gave it all away at the beginning with this cute picture, huh?

Seriously, in most cases you are able to use a real estate professional to help you purchase a home at no cost to you.  It is traditional in Central Ohio for the seller to pay the fee for both their agent helping sell their home as well as the agent that is helping the buyer.  There are a few times that this rule doesn't apply and your real estate agent should discuss it with you if this arises.  

Instance 1 is when working with a For Sale By Owner (FSBO).  Because the inventory has been so low lately, we are finding buyers are seeking out these properties and the sellers are not willing to pay the commission fees.  You will find in another of my blogs why you should use a real estate professional.  But most of all, it is to make sure that everything is completely legal for you.  If this happens, the agent should discuss with you the possibility of your paying the negotiated fee.

Instance 2 is when working with investment properties.  There are times when the purchase price is very low and the commission rate offered is very low as well.  Again, the agent should discuss with you before starting this process.  What generally happens is that there could be a flat rate set that would be paid to the real estate person by the buyer to compensate for their time and effort.

Don't feel that you cannot ask your professional right up front if you can expect to pay for their services.  It's all part of the job.