Showing posts from July, 2020

Do you like to negotiate?

Whether you like to or not, buying and selling a home involves negotiation at all stages of the process.   It is not like the retail world where once you decide to purchase, you pay the price.   It is easily the most expensive purchase or sale that most people experience and emotions get involved that could affect the negotiations adversely. The word "home" by itself conjures up emotions and selling a home you've lived in for a while could even complicate things more.   A real estate professional can separate their emotions from the process to be able to help the one they are representing. The price of the home, the type of financing and concessions, closing costs, personal property, closing dates and possession are just a few of the many things that can be negotiated in a contract.   Since the seller wants to get the most for their house and the buyer wants to pay the least, their objectives are diametrically opposed. Even after the contract is signed, removing the

REALTORS Thoughts on the Recovery

The National Association of REALTORS® just released the Market Recovery Survey of a random sampling to close to 100,000 members conducted June 24-26, 2020.   The following statements are the members' opinion on various aspects of the recovery to the Covid-19 pandemic as it relates to real estate. In response to the safety of buyers, sellers and agents, REALTORS® are expecting within the next year to have increased demand for the following technologies used to market properties: 67% - Zoom or other video technology to communicate with clients 66% - virtual tours 63% - live virtual tours conducted by agent using video 60% - virtual open houses Nine out of ten respondents indicated that some of the buyers have returned to the market or never left the market.   Agents currently working with buyers report that slightly more than half of buyer's timeline has remained the same with about the same level of urgency.   27% believe the buyers have more urg

Who Decides Value?

The seller can put a price on the home but the value is ultimately, determined by the buyer. Individually, a buyer could pay over market value because they love the location, or the elevation of the home or the proximity to something that is important to them.   The shortage of available homes resulting in increased competition among buyers could drive the value higher. Most experts agree initially pricing it properly will generally result in the highest sales price.  If a home starts out too high, it could actually sell for a lower price after it has been on the market for a while.   It gives the impression that there must be something "wrong" with the house because it didn't sell immediately.    So, how does a seller determine what price to put on the home?   It has nothing to do with what the seller needs to get out of it.   Nor does the price the seller paid for it make any difference now.   Even if the seller made considerable improvements, they may not affect th

Good Decision for a Second Opinion

You've done your homework, contacted a mortgage company and believe you are pre-approved.   That part of the process is finished and you can concentrate of finding a home and moving...or can you? Pre-qualified and pre-approved are two different things but some people, including some in the business, use the terms interchangeably.   Pre-qualified is an opinion of likelihood that a borrower will be approved based on preliminary information about their income and credit.   Whereas, in a pre-approval, the borrower's credit report is updated and pulled, income and assets verified and involves pre-underwriting. Even when you have a highly qualified loan officer, the real decision maker is the underwriter who can commit the lender.   Generally speaking, a person who has been pre-approved receives a written letter stating the terms and conditions of the commitment. A second opinion from a different lender can be a comforting thing for a borrower.   It will either confirm that the