Tag Archives: pre-approval

What Sellers Wish Buyers Knew Before Submitting an Offer

With property selling at lightening speed, sellers are in the position where they can review multiple offers. However, not all offers are created equal and some are down right off. Here are 4 things sellers hope buyers know when submitting an offer.

1- Nitpicking and nickel-and-diming will not get you a discount.

Pointing out every little stain and out-dated design will not have the seller agree to a discounted price. Sellers and seller’s agents know the difference between cosmetic issues and major concerns, and they (should) price the home accordingly. If you want to offer a certain price based on what you are going to have to do to the home, fine, but if it’s significantly less than asking and what you need to do is cosmetic, it will not be considered a serious offer by the seller. Even if you come back with a more reasonable offer, (and the property is still available) the seller may have taken your original offer personally and may decide not to work with you.

2- Giving a sad story with a sloppy offer will not impress or move a seller.

I have suggested to my buyers to write a brief letter about themselves and why they want to buy this particular property. This is a good idea when the sellers have multiple offers and the property was the seller’s home rather than a new construction from a developer. The letter gives the seller a chance to identify with you and in the best case scenario allows the seller to see you are in the same position they were in when they bought this home.

However, if your offer is incomplete (missing pre-approval letter, offer not signed, no deposit check, etc.) and you have a letter saying how you would rather be homeless than live in any other home than theirs, it could raise a red flag to the sellers and they may not want to deal with you.

Tips for Buyers from Sellers3- Making everything easy for the seller will make everything easy for the buyer.

First, have all your the paperwork signed, complete, and organized. Not every agent types the offer to purchase paperwork, which is fine as long as the offer is written clean and legible. Second, know what your timeline is but also be flexible to what the seller’s timeline is. Many sellers want to sell as soon as possible, so consider having your offer with accelerated closing dates. This will also give sellers more confidence your offer will make it to closing. Of course, paying cash will bring the most comfort, but if the buyer can have an inspection in two days, sign purchase and sale within a week, and close in 30 days, the seller may find those terms more comforting than a cash offer at a lower price.

4- Mind your manners.

Asking for a seller to fix something or give credit toward fixing something is not uncommon. Little issues are almost always found during an inspection. But do not demand to have the something done that doesn’t need to be fixed. If there is an issue, politeness and rationality goes a long way. Even beginning a request by stating, “I understand that I may asking this too late but…” or “Thank you for considering” will help your cause. As always “Please” and “Thank You” goes a long way.

5-Choose your agent wisely.

From beginning your search to closing your transaction, your agent is there with you at every step acting in your best interest. Whether you are selling a home or buying a home, your agent should be acting professionally, responsibility, and constantly communicating with you. If you are putting in an offer to purchase, your agent should make sure you have all the paperwork to sign, have the dates clear, and go over everything to make sure you know what you are offering. I have written this many times, but it bears repeating, buying property and selling property is emotional. Anything that involves egos, memory, and money will be emotional, real estate transactions involve all of these with multiple parties. As your Realtor, it is our job to represent your best interests and keep emotions calm. Many of the tips I’ve written above can and should be explained by your Realtor, so it is very important to work with a Realtor you trust and who will represent you in the best possible light.

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The Home Buying Process Simplified

Condo on Boston's Real Estate Sales MarketBuying a home can be the biggest purchase a person can make in their lifetime. For first-time home buyers this can be the most overwhelming and stressful experience they could go through. Here is a general breakdown of the steps you need to take to buy your home.

The first step is to figure out how much can you afford. The most common formula used to figure out how much to spend on your home purchase is equal 3x your annual income. Keep in mind, your mortgage payments together with your other monthly bills should not exceed more that 36% of you monthly income.

Next, you will want to save for a down payment. Depending on the loan you qualify for, you will need anywhere between 3%-30% for the down payment.

Once you have your price in mind and a down payment saved, get a pre-approval letter. This is incredibly important to have before you start your home search. You can get a pre-approval letter from any bank, but you are not locked into an agreement to get your mortgage from that bank. Having the letter can mean the difference between getting your dream home or getting lost in a pile of other offers.

Understand that not only will you need the down payment for your mortgage but closing costs and the other costs that come up in buying a home such as lawyer fees, inspection costs, etc.

Once you have the price and monies ready, begin a list of wants verses needs for you home. Do you really need walk-in closets? How important is a fireplace? Is size or location the top priority?

Now you will want to start talking to Realtors. Make it clear to your Realtor what your price range is and what you want and need in your new home. There are many different reasons to choose a Realtor: their experience, your past relationship with them, accessibility, etc. The most important factor is an understanding of what you want and for you to understand what your real estate agent will do for you.

Now that you have your priorities and a Realtor to help you navigate the real estate market, start seeing places in person that fit your criteria. Don’t feel discouraged if or when your lists of wants and needs change. You may go into this process with one idea of what you want and then you end up with something completely different.

Buying Property and signing PaperworkOnce you find the home for you, talk to your Realtor about making an offer. Your Realtor will explain what is the best price to offer based on a comparative market analysis. This will show you what comparable properties have recently sold for. Whether it is a buyer’s market or seller’s market, listen to your Realtor and make sure you understand the data they are presenting you. The comparative sales indicate market value for the given property which will dictate the best amount to offer. Your Realtor will help guide you through the contingency addendum. The contingency addendum protects the buyer’s interest and deposit money and allows the buyer to re-negotiate or withdrawal the offer based on the results of inspections preformed during the due diligence period. It’s important to do your due diligence about the house you are trying to buy but the more unnecessary contingencies you put in your offer, the less attractive your offer becomes to a seller. If you check off any contingency, you are not only costing yourself more money by having these tests done, but you are inadvertently telling the seller that you want as many ways out of buying the property as you can get. Many sellers would prefer to go with another buyer or even leave the property on the market instead of accepting an offer they think will fall through.

After your offer is accepted this is where the paperwork starts and lawyers become involved. This is when you actually preform your due diligence and have your potential home inspected and tested. If everything comes back to your satisfaction, time to sign the Purchase and Sale (P&S) agreement and to start choosing paint colors and furniture placement.

If you have any questions or are ready to start the process of buying a home, contact the Realtors of Matthew and Alisa Group Real Estate.

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A First-Time Home Buyer’s Emotions

Buying a home is one of the most stressful experiencesA dear friend of mine recently put in an offer on her first home. This could be the most emotional I have ever seen her and I was at her wedding. She was nervous, excited, and on edge waiting for the phone to ring with news from her real estate agent. She was buying her first home on the South Shore of Boston, an area beyond my expertise, so  my role was that of a friend, a friend who happens to be a Realtor.

The friend in me wanted to say something to help her feel better but the Realtor in me knew her situation was not traditional and somewhat intimidating for a first home purchase. The listing went on the market not long before she and her husband saw it. Because they were not pre-approved, the another offer was accepted before they could get their finances in order. Fortunately for them the offer fell through and they were able to put in their offer right away but so did another couple.

The house was listed using the uncommon method of value price range, meaning the owner would entertain offers between x and y. After they put in their offer, they learned the owner would not provoke a bidding war; he would look at each parties’ best and final offer before choosing the one he liked most. Talk about nerve racking! Of course the listing agent could not disclose what the other offer was so they had to blindly decide what the other couple’s best offer could be and make theirs a little better.

All I could say, as her hand was glued to her phone, was, “Worst case scenario, you don’t get the house. Best case scenario, you bought your first home. But either way, once you know, you will know what to do next.”

Buying a home can be stressful, emotional, and overwhelming whether it’s your first home or your fifth home. One source of comfort through this experience should be your Realtor. This was my friend’s first home buying experience and she was grateful to have an agent that she was completely comfortable with, felt confident in, and knew was in their corner.

We at Matthew and Alisa Group Real Estate understand the emotions that can go into buying a home. We are available to discuss the process of buying property and specialize in assisting first-time homebuyers.

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