Home Buyers Can Face Multiple Offers!
We are moving into the spring market and things are starting to pick up for home sellers and home buyers. There is currently still a lack of inventory on the market, making it more competitive for home buyers to make an offer an the home that they want to purchase. Just this past week, I wrote an offer for my home buyers and within 12 hours, we heard from the seller that there were multiple offers. The seller utlimately went with the highest and best offer.
If you're a home buyer in the $100,000 to $250,000 range, you are already at a handicap, since you will be bidding against investors, who can normally pay cash for homes in this price range. Cash isn't always king, but if your neck and neck in a bidding war, it does give the investor the upper hand.
What Are Some Things Home Buyers Can Do?
Sellers love bidding wars and will welcome them, in hopes that the bids will go over the list price, and they can net more money. As a home buyer they can be frustrating. Especially if you keep getting out bid several times, on homes that you written offers on.
Bidding wars add an extra layer of complexity to an already complex and sometime overwhelming process. As a home buyer this is where hiring an experienced MDREPros Professional Buyers agent with superior negoiation skilles can make all of the difference! Here are some things you can think about when you are making an offer, that might help them stand out and be more appealing to home sellers.
Build A Relationship:
This doesn't always help, but it can't hurt. Sometimes offering the most money isn't the most important thing to the home seller. They might be more concerend with someone taking care of this place that they love and have called home. As a home buyer you can write a personal letter to the seller and explain how much you and your loved ones like their home, and how much it would mean to you all if this was your new home. Sometimes, this can give you a slight edge over the competiton. You could even include a picture of you and your loved ones, so the home seller can see the "faces" behind the bid.
Other Ideas to help home buyers win a bidding war!
We haven't seen a lot of escalation clauses lately, but they will be making a comeback soon. You can have your Maryland Real Estate Professional Realtor add this addendum to the offer you are writing. Let's say you make an offer of $200,000 for a home (But you know that you are willing to go up to $220,000). The esculation clause could be a simple as saying you will go $1,000 over the highest bidder... all the way up to $220,000. So if the highest offer that comes in is $211,000, you would automatically offer $212,000. This could potentially save you $8,000 on your home, and win you the bid. Be aware, not all sellers will accept an escalation clause. (i.e. bank owned properties, short sales, etc...) So be sure and discuss with your Realtor and see if this is a good option for you.
Most offers on homes involve alot of contingencies. Before you ask your Realtor to add every contingency in the book in the offer, see what their expert opinion is on what to include and what can be excluded in writing an offer. Alot of contingencies can be wrapped into the home inspection, it just might take some well timed planning and quick scheduling. Sellers want to see the minimal number of contingencies when they are looking at and comparing offers.
An Experienced Realtor CAn Save Your Thousands
As you can see, there are a lot of things to consider when making an offer on a home. And this is only the tip of the iceberg. As a home buyer want to make sure the Realtor you are using has the experience and knowledge on how to negoiate the best deal on your behalf and to be able to out negoiate the other home buyers realtors.
Remember, when you work with Maryland Real Estate Professionals w/ REMAX Realty Plus...
Hakuna Matata - It means no worries for all of your Real Estate Days.
Let us represent you when you are ready to buy your next home. It's FREE to you, and we could save you thousands!
Have a Great Week!!
Simple Steps To Attract Buyers!
If you are thinking of selling your home, or you are committed and planning to sell your home this spring, there are some simple things that you can do to attract buyers.
The first thing you want to do is think like a home buyer. 99% of all home buyers today, begin on the internet. They go to REMAX.com, Realtor.com, SearchForMarylandHome.com, or one of the other thousands of home searched and start looking for homes. So you want to make sure your home looks amazing online when you are selling your home.
There are some pretty basic things homes buyers start with and look for when starting a home search. Some you can control and some you can't. You want to make sure when selling your home, that you make it as appealing to the buyer as you can, to attract their attention.
1) Area - They search a certain area. It can be a neighborhood, a city or even a county.
2) Price - The buyer will put in the price points that they are looking for. This is normally in $25,000 increments, meaning they would search for homes, priced from $200,000 to $225,000 or maybe from $225,000 to $250,000.
3) Bedrooms and Bath - They will search for a certain number of bedrooms and bathrooms. Normally it will be 3+ bedrooms or 2+ bathrooms.
This is home most home buyers begin their home search. You can control the price when your selling your home, so make sure that you price your home correctly, or the buyers you want, won't see your home.
The Home Search Playing Field Has been leveled!
The reality of the situation is that all search engines (Realtor.com, Zillow, Truilia, REMAX.com, SearchForMarylandHome.com, etc...) all pull from the same source, the Multiple List. So it's critial that everything is entered into the MLS carefully and properly. This means you want to hire a Professional Realtor who will take the care needed to make sure your home looks the best, no matter what search engine a buyer will use. It has to look good online, when your selling your home!
If you want to attract buyers today, you need to do it online!
1) Make sure the first picture is the buyer sees, catches their eyes. You want it to be impressive enough to stop the scroll.
2) Make sure all the pictures are bright and clean (It's amazing how many realtors post dark and cluttered pictures of homes). If your serious about selling your home, then make sure it is clean and decluttered, especially when the photographer is taking the pictures! Remember, a pictures says a thousand words!
3) Make sure the description is well written and easy to understand. There is less and less constrants on how many characters a desciption can have, so make sure your Realtor writes away
4) Make it easy for the buyer. There is no need for vague appreviations these days. Write it out. Show pictures that make it easy for the buyer to see home, and entice them to come and tour the home.
5) Make the home accessible! It's alot harder today to get people out from behind their computer and out touring homes. (I hear it all the time... "I don't "see" anything I like!" So the agents haven't done their job, making your home look good.) So if your serious about selling your home, let the buyers come and look at it!!!
Home Buyers Care ABout the price!
In the age of Uber, Lyft, VRBO, AirBNB, etc... the internet has changed the way people shop. Why are these websites so popular? Because the users are "getting A deal", they feel like they are getting a discount or a substantial savings over the traditional ways of renting a car, getting a hotel, etc. However there are still cab companies, they are still building hotels.
Travelocity, HotWire, Expedia have all changed the way that travel is done. However, there are still travel agents and they are still helping people plan trips.
When you are selling your home, your most valuable asset, do you really want a discount Realtor, usually an agent with no experience... representing and negoiating for you? I am always stunned by some of the blunders that I see agents make that can cost home sellers thousands of dollars.
The internet has made it easy to see all the homes on the market. I think that this is amazing. But you still want an experienced Realtor to help you market your home with a powerful description, stunning pictures, and the ability to negoiation and the experience to know how to get you the most money possible for your home.
Contact Maryland Real Estate Professionals when you want to discuss selling your home, we have the experience, we have the negoiation skills, we have the marketing experience and knowlegde to make your home stand out from the rest. Go to www.MDHomesValues.com and sign up for a FREE home valuation.
We also offer FREE drone footage and pictures with our the homes that we represent. We also create FREE marketing videos, that make your home stand out from the standard "slide show".
Maryland Real Estate Professionals, it's the experience that counts. Hundreds of Maryland home sellers and home buyers have trusted myself and the Maryland Real Estate Professionals team with thier most valuable negoiations... their homes! We look forward to earning your trust as well. Have a great week!
Should You Wait For Values To Go Up, Before You Sell Your Home?
THAT'S A GREAT IDEA, IF YOU HAVE NO INTENTION OF EVER OWNING ANOTHER HOUSE
If you want to move up to a larger, more expensive home, but are waiting for the value of your current property to increase before initiating the move, you may be making a mistake. Please keep in mind that as the value of your present home increases so does the cost of the one you want to buy. In fact, more expensive homes increase in cost at a greater rate than do lesser expensive houses.
As you can see from the above comparisons, a homeowner who currently chooses to sell a $200,000 home and purchase a $400,000 property would pay a differential cost of $200,000. If that same homeowner waits until values inflate 30% before selling, he would sell his current residence at $260,000 and would then have to pay $520,000 for his new house, a difference of $260,000. By waiting for the value of his present home to increase, he has, in essence, cost himself an extra $60,000 to make the move.
IF YOUR GOAL IS TO OWN A LARGER, MORE VALUABLE HOME, YOU MAY SAVE THOUSANDS OF DOLLARS BY MAKING THE MOVE RIGHT NOW!