April 27, 2021

Navigating Multiple Offers As A Seller

Make a game plan

Go through each offer with your agent and discuss your negotiation strategy. Will you inform all buyers that there are multiple offers and invite them to present their ‘best and final terms within a set time frame? This strategy allows you to compare all terms at once and make your decision. Or will you counter one offer before making a decision on the others?

There are a number of different strategies so be sure to consult your agent to make sure you are getting all of the details from each buyer and making the best decision for your own situation.

Think more than price

Sure, it’s tempting to accept the highest bid, but the highest-priced offer isn’t always the best offer. Remember that once an offer is accepted, there are many more steps to complete in order to successfully close the transaction.

Every seller has unique goals, so factors like finance contingencies and closing date may be as important as the offer price. In addition, you should take the appraisal of your home into consideration if you choose the highest-priced offer. Some buyers will bid above list price and possibly above market value just to “win”, but if the appraisal comes in at a price lower than the offer, the buyer may have no choice but to cancel the contract or ask you to reduce the purchase price.

Act quickly

Respond to offers in a timely manner, and once the terms are to your liking, be sure to sign the contract as soon as possible. The longer a negotiation drags on, the more tenuous it becomes as buyers may become suspicious or concerned and rescind their offers.

Maintain your goals

Multiple offers can be stressful for all parties in the transaction so it’s important to be clear-headed and stick to your objectives. For example, if you want a quick closing, keep that in mind when evaluating every bid that you’ve received. There are often elevated levels of emotion during the negotiation of multiple offers so try not to get caught up in those emotions.

Tread lightly

While you likely have the leverage in negotiations, you always want to keep a buyer engaged and avoid ultimatums. Buyers are generally more likely to walk away from a negotiation when they feel as though they’ve lost control or they suspect unethical behavior (whether it is happening or not – perception is reality).

While the goal is to get you the best possible price and terms for your home, not losing your buyer(s) and successfully closing should be just as important.

Posted in Selling Your Home
April 27, 2021

Inventory Challenges

How Home Buyers Can Navigate Inventory Challenges

Whether you’re in the process of buying or selling a home or just keep up with real estate news, you’ve probably heard about the lack of inventory in housing markets throughout the country.

While fewer properties on the market mean increased competition for buyers, there are still ways for home shoppers to navigate inventory challenges and have an edge in the marketplace. Here are a few tips :

Tap into Pre-Market Opportunities

Pre-market (or private market) listings are homes that are for sale (i.e., there is a signed listing agreement), but are not yet publicly listed on the MLS. As a result, buyers won’t find these listings on major search portals like Zillow, Trulia, or Realtor.com, or national brokerage sites such as Redfin.

This could be for a variety of reasons. For example, a seller may want to do some prep work to get their home ready for sale or may be waiting for the spring market. In some cases, it’s the desire for more privacy.

Pre-market listings make up a growing segment of the market, and they are typically on networks only available to real estate agents. And when inventory is low and there is strong competition among buyers, it’s so important to work with an agent that can tap into these networks and keep you informed on new opportunities.

At @properties, all of our agents and their clients have access to Zenlist, a home search app that includes both active listings from the MLS and pre-market listings, all in one collaborative platform. Meanwhile, @properties’ internal @agent app is another resource that helps our agents match buyers with homes for sale. Reach out to an @properties agent to learn more about these networks.

Get Pre-Approved

An up-to-date mortgage pre-approval (or proof of funds if you’re a cash buyer) is essential if you’re looking to purchase a home nowadays. As a buyer, this not only lets you know what you can afford but also lets the seller know that you’re a qualified buyer, which is especially important in today’s environment if in-person showings are involved.

Talk to your mortgage broker to make sure your pre-approval is current, and if you don’t have a mortgage broker, your agent can share recommendations.

Request a Digital CMA

Whether you’re just starting your home search or preparing to make an offer on a property, a Comparative Market Analysis (CMA) will give you insights into pricing and market activity in your specific area.

@properties’ proprietary Digital CMA takes the traditional CMA (think paper printouts and PDFs) to the next level by providing real-time MLS data in an interactive, digital platform that you can access on the fly. You can also add properties to the report and leave comments for your agent to review.

Ultimately the Digital CMA ensures you always have the most accurate data to make the most informed offer on a property.

Make Your Offer Stand Out

When inventory is low, multiple offer scenarios are more common. If you’re ready to make an offer on a home you love, work with your agent to do everything you can to make your offer stand out, especially if the seller has other offers.

Beyond being pre-approved, there are other ways to make your offer more appealing, such as increasing your earnest money deposit, waiving certain contingencies, or being flexible on terms that may be important to the seller, such as the closing date.

 

Find more tips on how to navigate multiple offers as a buyer here, and discuss the best strategy with your agent.

Posted in Buying a Home
April 27, 2021

Mortgage Rates Up A Tick

What Borrowers Need to Know About the Uptick in Mortgage Rates

When we recorded our  2021 Market Outlook at the beginning of the year, Proper Rate executive vice president of sales, Dan Moran, talked about how national average mortgage rates were sitting at record lows, with the rate on the 30-year fixed rate averaging 2.65%. Fast forward a couple of months, and that national average rate has jumped to 3.18%*, its highest level since last summer.

While rates in the 3% range are still extremely low by historical standards, the recent increase is a reminder of how quickly the rate environment can change, and why potential buyers, as well as homeowners looking to refinance, may have more incentive to act fast.

“There are a number of factors that drive mortgage rates up and down, so it’s important for borrowers to lock in their desired rate as quickly as possible,” Moran said, adding that a pre-approval is an essential part of the process.

He also noted that applicants should be focused on their payment just as much as their rate.

“In most instances, rates become a psychological trigger in that people want to get the lowest rate possible, but the actual amount of the monthly payment also greatly impacts loan qualification,” said Moran. “If rates are up or down a half a percent it could decrease or increase the loan amount a borrower could obtain, so it’s something to keep an eye on with your mortgage lender.”

Whether you’re planning to obtain a mortgage for an upcoming home purchase or thinking about refinancing, reach out to a loan officer. Meanwhile, be sure to contact your @properties agent for more information about your local real estate market.

Posted in Buying a Home