Local Realtor Kenneth Jones had two ‘unmotivated’ buyers who have officially been upgraded to ‘motivated’ buyers after the recent passage of the first-time homebuyer tax credit was extended and expanded into May 2010.
“I think there’s going to be a tremendous impact,” said Jones of Kenneth Jones Realty and current president of the Greater Fort Worth Association of Realtors of the tax credit’s expansion. “It’s huge.”
After much lobbying, discussing and negotiating, an expansion and extension of the first-time homebuyer tax credit was approved by Congress on Nov. 5. The current credit, which will end Nov. 30, allots an $8,000 tax credit to first-time homebuyers with an income of no more than $75,000 for individuals or $150,000 for couples. Under the new tax credit, those income caps have been raised and a tax credit also has been added for current homeowners looking to sell and buy a new home.
The first-time buyer credit was extended to any homes under contract as of April 30, 2010, and the income level for the credit was extended to individuals making no more than $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000.
In addition, the new version of the tax credit includes a $6,500 tax credit for any home buyer who has lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1, 2010, to close the transaction.
Local real estate experts say the extensions to include a broader income range as well as repeat buyers will have a big impact on the Dallas-Fort Worth market.
“Our business has really increased over the last few months because of it [the first-time homebuyer tax credit]. We’ve seen a lot more closings,” said Carole Wilkinson, vice president/branch manager of Steward Title in Arlington. “But of course now they’ve made modifications and extensions. Just an extension of the program would have been fine, but with the modifications, there are going to be a lot of people who are looking into buying houses and it’s going to be good for everybody.”
In fact, National Association of Realtors economists estimate that the current first-time buyer tax credit has contributed about $22 billion to the national economy, and about 2 million people will take advantage of the tax credit this year. In Texas, NAR reports the home buyer tax credit has brought an additional 26,900 buyers into the market through September and 189,200 first-time buyers will be able to take advantage of the tax credit.
According to NAR, Texas existing home sales in the second half of 2008 were 442,600 at a seasonally adjusted annual rate. NAR estimates sales in Texas could reach 435,500 for the year in Texas in 2009 – and about 177,040 of those purchases were made by first-time buyers at a seasonally adjusted annual rate in the second half of 2008 and will that group will purchase 192,418 for the year 2009.
Jones said he has a few buyers who will take part in those NAR numbers because of the recent extension of the tax credit.
“By increasing the income limits, I’ve got two young buyers who before weren’t motivated because they were outside of the current tax credit’s income limits, but now that they’ve changed, they are definitely motivated,” Jones said.
Robert Gleason, director of governmental affairs for the Greater Fort Worth Association of Realtors, said the credit is likely to motivate lenders and other real estate professionals as well.
“Now that the tax credit has been in place for a while, people are really perfecting how to use it,” Gleason said. “Something positive that’s coming out of it is HUD approved the use of a short-term bridge loan that can be put in place and then buyers can use those funds for additional payments on down payments or to help with closing costs. It’s a good part of it being extended because it’s allowing those programs to take shape.”
The short-term bridge loans still require buyers to put a down payment of at least 3.5 percent on a home purchase, but the bridge loan money can be applied on top of that down payment, Gleason said.
The realtors association advises any buyer thinking about applying the bridge loan in such a matter to “contact their lender for more details as only some lenders perform that type of loan,” Gleason added.
Regardless of the type of loan used to buy the home, though, Gleason said the impact of the tax credit expansion will likely be felt beyond the confinements of the residential market.
“It’s a big economic impact,” Gleason said. “Once someone ends up purchasing, typically that tax credit they received, they spend on upgrades or other purchases for the home, which generates momentum in the economy as well.”
In the mean time, Jones said his firm is hard at work preparing and sending letters to homeowners he or one of his brokers knows might be interested in putting their home on the market if given the right incentive.
“This may be what prompts them to do it,” Jones said. “It may not be something that convinces a home owner to sell, but for those thinking about selling, but not sure, this could be what convinces them to do it.”
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
Robbers Target West Omaha Homes & Both Owners Fight Back
Omaha, NE: West Omaha Homeowners need to be on alert. A warning from Douglas County Sheriffs after three crooks target two homes in ten minutes. To the suspects surprise, both owners fight back.
The suspects first prey on Cindie Marshall Thanasas corner home at 18903 T Circle. Marshall Thanasas says one thought went through her mind, "I was being intruded and this person was not coming through that door."
She says shortly after 1:00 Monday afternoon, a man rang the doorbell. Within seconds the man slipped through the unlocked door and was inside trying to sell Gatorade. "He put a Gatorade bottle in front of him. I said, 'What are you doing in my house?' and he says I'm selling Gatorade. And I that's when I told him you're too old to sell Gatorade! I turned around and I just took the door in my hand and I just shoved him like this and closed the door," she explains.
Marshall Thanasas says the men took off in a silver or gray SUV. The suspects took off and set sights on a second house located only blocks away at 4860 S. 189th Circle. That homeowner also fought back.
"Never was I scared. It was just a matter I didn't want them in the house," he says. We are not identifying the homeowner. He says he heard someone trying to open the back patio door and went to investigate when the dog started barking. That's when the front doorbell rang.
The homeowner quickly peered out a front window and saw the robber. "I saw a kid walking across the front yard and I followed him across all of our front windows." But he wasn't alone. The homeowner says he watched the three suspects as they moved around his home. "I followed them all the way down our wall here and watched as they jumped the retaining wall into our back walk out porch," he explains. That's when the homeowner ran downstairs. "I could see daylight as the door was being kicked open," he continues to explain he yanked the blinds back and scared them off.
With two home invasions in a matter of ten minutes and just blocks apart, Action 3 News went straight to Douglas County Sheriffs Investigators to find out what's being done to get these crooks off the streets. CChief Deputy Marty Bilek says thanks to good descriptions of the suspects from both victims, investigators are working around the clock to follow-up. "It's getting very high priority because home intrusions are very serious crime and the potential for violence and injury or death is very high," he says.
Chief Deputy Bilek wants homeowners in west Omaha to take action to protect themselves. He says think about buying a security system or safety latches for doors and windows. Also, as it gets closer to Christmas, Bilek advises people NOT place gifts out in sight of potential robbers.
Douglas County Sheriffs say two of the three suspects are white males, the other is Hispanic. Marshall Thanasas says one of the white males is over six-feet tall. She says he has short brown hair, brown eyes and a thin beard leading to a goatee.
Source
The suspects first prey on Cindie Marshall Thanasas corner home at 18903 T Circle. Marshall Thanasas says one thought went through her mind, "I was being intruded and this person was not coming through that door."
She says shortly after 1:00 Monday afternoon, a man rang the doorbell. Within seconds the man slipped through the unlocked door and was inside trying to sell Gatorade. "He put a Gatorade bottle in front of him. I said, 'What are you doing in my house?' and he says I'm selling Gatorade. And I that's when I told him you're too old to sell Gatorade! I turned around and I just took the door in my hand and I just shoved him like this and closed the door," she explains.
Marshall Thanasas says the men took off in a silver or gray SUV. The suspects took off and set sights on a second house located only blocks away at 4860 S. 189th Circle. That homeowner also fought back.
"Never was I scared. It was just a matter I didn't want them in the house," he says. We are not identifying the homeowner. He says he heard someone trying to open the back patio door and went to investigate when the dog started barking. That's when the front doorbell rang.
The homeowner quickly peered out a front window and saw the robber. "I saw a kid walking across the front yard and I followed him across all of our front windows." But he wasn't alone. The homeowner says he watched the three suspects as they moved around his home. "I followed them all the way down our wall here and watched as they jumped the retaining wall into our back walk out porch," he explains. That's when the homeowner ran downstairs. "I could see daylight as the door was being kicked open," he continues to explain he yanked the blinds back and scared them off.
With two home invasions in a matter of ten minutes and just blocks apart, Action 3 News went straight to Douglas County Sheriffs Investigators to find out what's being done to get these crooks off the streets. CChief Deputy Marty Bilek says thanks to good descriptions of the suspects from both victims, investigators are working around the clock to follow-up. "It's getting very high priority because home intrusions are very serious crime and the potential for violence and injury or death is very high," he says.
Chief Deputy Bilek wants homeowners in west Omaha to take action to protect themselves. He says think about buying a security system or safety latches for doors and windows. Also, as it gets closer to Christmas, Bilek advises people NOT place gifts out in sight of potential robbers.
Douglas County Sheriffs say two of the three suspects are white males, the other is Hispanic. Marshall Thanasas says one of the white males is over six-feet tall. She says he has short brown hair, brown eyes and a thin beard leading to a goatee.
Source
Saturday, November 28, 2009
Home sales end long fall
Home sales here last month rose 10.8 percent to 336 units from 303 units in the same period last year, the first year-over-year increase in combined sales of single-family residences and condominiums since February 2007, according to Northwest Multiple Listing Service data released Friday. That month 295 homes sold in the county compared to 280 in February 2006.
In June of this year, sales of single-family residences exceeded those in June 2008, although overall sales of residences and condos still were lower than the year-ago period.
“We are back to a healthy market trend,” said Mark Kitabayashi, president-elect of the Thurston County Realtors Association.
July and August are typically the busiest months of the year for home sales, but the market gained an additional boost from an influx of military families from Fort Lewis and those buyers wanting to take advantage of the $8,000 tax credit before it expires at the end of November, Kitabayashi said.
The homebuyers tax credit expires Nov. 30, and with the typical home sale taking 45 to 60 days to complete, buyers are getting into the market now before it’s too late, he said.
The median home price in Thurston County fell 3.27 percent to $239,900 from $248,000 last August, while the number of homes for sale plunged more than 16 percent to 1,831 units from 2,185 units, the combined single-family residence and condo data show.
Median means half the homes sold for more and half sold for less.
Coldwell Banker Evergreen Olympic Realty Inc. owner and broker Ken Anderson agreed that Thurston County’s housing market continues to improve.
“More sellers are getting it,” Anderson said. “They are getting their prices right, and buyers are recognizing that.”
And more home sales are in the pipeline: Pending sales in August rose 5.18 percent to 386 units last month from 367 units in August 2008, the data show.
Although year-over-year sales were higher last month for the first time in a long time, some corners of the market, such as upper-end homes or those along the waterfront priced at $600,000 or higher, aren’t selling as quickly, Anderson said.
He attributes that to tighter restrictions on financing, such as jumbo loans in the amount of $417,000. Interest rates are higher for those loans and more downpayment money is required to qualify, he said.
Source
In June of this year, sales of single-family residences exceeded those in June 2008, although overall sales of residences and condos still were lower than the year-ago period.
“We are back to a healthy market trend,” said Mark Kitabayashi, president-elect of the Thurston County Realtors Association.
July and August are typically the busiest months of the year for home sales, but the market gained an additional boost from an influx of military families from Fort Lewis and those buyers wanting to take advantage of the $8,000 tax credit before it expires at the end of November, Kitabayashi said.
The homebuyers tax credit expires Nov. 30, and with the typical home sale taking 45 to 60 days to complete, buyers are getting into the market now before it’s too late, he said.
The median home price in Thurston County fell 3.27 percent to $239,900 from $248,000 last August, while the number of homes for sale plunged more than 16 percent to 1,831 units from 2,185 units, the combined single-family residence and condo data show.
Median means half the homes sold for more and half sold for less.
Coldwell Banker Evergreen Olympic Realty Inc. owner and broker Ken Anderson agreed that Thurston County’s housing market continues to improve.
“More sellers are getting it,” Anderson said. “They are getting their prices right, and buyers are recognizing that.”
And more home sales are in the pipeline: Pending sales in August rose 5.18 percent to 386 units last month from 367 units in August 2008, the data show.
Although year-over-year sales were higher last month for the first time in a long time, some corners of the market, such as upper-end homes or those along the waterfront priced at $600,000 or higher, aren’t selling as quickly, Anderson said.
He attributes that to tighter restrictions on financing, such as jumbo loans in the amount of $417,000. Interest rates are higher for those loans and more downpayment money is required to qualify, he said.
Source
Sunday, November 15, 2009
Improving energy efficiency to improve odds of selling a home
When real estate agent Lisa Triantafilidis takes clients out to look at one of her listings, two questions typically top their lists of concerns:
"What are the taxes and what are the energy costs," said Triantafilidis, who is a real estate agent with Higgins Group Real Estate.
She can do nothing about the taxes, but now Triantafilidis has some help with the second question. Energy company Gault Inc. is partnering with Higgins to provide home energy audits to the company's 300 agents in Fairfield County.
The audit helps expand upon the things Triantafilidis sees herself. As a real estate agent, she often recognizes things that can be done to improve a home's energy efficiency.
"It can be something very simple, just weather stripping around a door," she said.
Or it can be something as simple as an old refrigerator.
That's what's running up Margi Failoni's energy bill. Failoni, who is trying to sell her house through Triantafilidis, had an energy audit done this summer on the real estate agent's suggestion. She says she was pleasantly surprised by the result; as the owner of a 1,400 square-foot home, she was certain that major changes would have to be made. The audit showed otherwise.
"It has definitely proven that my home was energy efficient," she said.
Instead of suggesting that the windows be replaced, the auditor instead took Failoni through her home, starting outside and moving around the house, pointing out little things that could mean big money for her and anyone who might buy the house.
Failoni's second refrigerator, an old unit that runs in her garage, was one of those things; if she were to unplug it, she would save $30 a month on her electricity bill.
The audit also recommended that the Failonis reduce the home's air infiltration by changing socket plates gasket seals, weather stripping and foaming. In addition, because 80 percent of energy is lost through the attic and the basement, the audit recommended an update of insulation in the home.
"Here are these small cost-saving tips to not use so much energy," she said.
The Gault-Higgins partnership was the brainchild of Megan Smith, director of marketing for Gault.
"It was really an idea I had crystallized in my head," she said.
Smith, herself a licensed real estate agent in Florida, had also heard a number of buyers ask about the energy efficiency of her listings. An energy inefficient house, she said, is extremely difficult to sell.
"Energy conservation is just top of mind of everyone these days," she said. "It really can be a deal maker or a deal breaker."
An energy audit, she thought, would provide answers to the questions of the buyers and energy solutions to the sellers.
"It's a complete energy snapshot of the home," she said.
Smith added that the partnership with the Higgins Group is not exclusive; Gault wants to reach out to other real estate agents as well.
Triantafilidis believes that the energy audit is going to become a trend. She says it has helped her as a real estate agent.
"It has really helped me get the listings," she said. "When you go in to get a listing, you really need an edge."
Source
"What are the taxes and what are the energy costs," said Triantafilidis, who is a real estate agent with Higgins Group Real Estate.
She can do nothing about the taxes, but now Triantafilidis has some help with the second question. Energy company Gault Inc. is partnering with Higgins to provide home energy audits to the company's 300 agents in Fairfield County.
The audit helps expand upon the things Triantafilidis sees herself. As a real estate agent, she often recognizes things that can be done to improve a home's energy efficiency.
"It can be something very simple, just weather stripping around a door," she said.
Or it can be something as simple as an old refrigerator.
That's what's running up Margi Failoni's energy bill. Failoni, who is trying to sell her house through Triantafilidis, had an energy audit done this summer on the real estate agent's suggestion. She says she was pleasantly surprised by the result; as the owner of a 1,400 square-foot home, she was certain that major changes would have to be made. The audit showed otherwise.
"It has definitely proven that my home was energy efficient," she said.
Instead of suggesting that the windows be replaced, the auditor instead took Failoni through her home, starting outside and moving around the house, pointing out little things that could mean big money for her and anyone who might buy the house.
Failoni's second refrigerator, an old unit that runs in her garage, was one of those things; if she were to unplug it, she would save $30 a month on her electricity bill.
The audit also recommended that the Failonis reduce the home's air infiltration by changing socket plates gasket seals, weather stripping and foaming. In addition, because 80 percent of energy is lost through the attic and the basement, the audit recommended an update of insulation in the home.
"Here are these small cost-saving tips to not use so much energy," she said.
The Gault-Higgins partnership was the brainchild of Megan Smith, director of marketing for Gault.
"It was really an idea I had crystallized in my head," she said.
Smith, herself a licensed real estate agent in Florida, had also heard a number of buyers ask about the energy efficiency of her listings. An energy inefficient house, she said, is extremely difficult to sell.
"Energy conservation is just top of mind of everyone these days," she said. "It really can be a deal maker or a deal breaker."
An energy audit, she thought, would provide answers to the questions of the buyers and energy solutions to the sellers.
"It's a complete energy snapshot of the home," she said.
Smith added that the partnership with the Higgins Group is not exclusive; Gault wants to reach out to other real estate agents as well.
Triantafilidis believes that the energy audit is going to become a trend. She says it has helped her as a real estate agent.
"It has really helped me get the listings," she said. "When you go in to get a listing, you really need an edge."
Source
Wednesday, October 28, 2009
Reluctant Landlords Better Off Selling…Even at a Loss
Renting out a home is dicey proposition these days. In the Journal Thursday I spoke with a number of homeowners who were forced to move for a variety of reasons, but who have decided to rent out rather than sell their homes. Some couldn’t sell; others didn’t want to lower the asking price. For many, becoming landlords has been a losing proposition.
One reason: The glut of rental housing on the market. It seems counterintuitive, but some communities with depressed housing sales also have high rental vacancy rates and falling rents, particularly in areas where foreclosed homes and condos have been turned into rental property.
For one thing, just because fewer people are buying homes doesn’t automatically mean more people are renting in every area. “When you have a bad economy, you have consolidation of households and fewer households,” explains Mike Nelson, current president of the National Association of Residential Property Managers. “People move back with their parents and people who would have lived alone take in roommates, anything to reduce financial obligations. There might be more tenants, but there are fewer leases because they are getting together,” he says.
Then there’s the competition from investors who’ve been snapping up foreclosed properties at bargain prices and renting them out, too, prepared to wait far longer for prices to rebound – perhaps a decade or more if necessary. Because they purchased the houses so much more cheaply, they can afford to charge lower rents, often undercutting the individual owner of a pricey house.
That is why so many experts we interviewed are urging sellers to become more realistic about pricing their homes for sale in the first place, based on current market values, not what a neighbor received for his house a few years ago. They say that for many sellers, it’s a better course of action than relying on rental income to wait out the market.
Source
One reason: The glut of rental housing on the market. It seems counterintuitive, but some communities with depressed housing sales also have high rental vacancy rates and falling rents, particularly in areas where foreclosed homes and condos have been turned into rental property.
For one thing, just because fewer people are buying homes doesn’t automatically mean more people are renting in every area. “When you have a bad economy, you have consolidation of households and fewer households,” explains Mike Nelson, current president of the National Association of Residential Property Managers. “People move back with their parents and people who would have lived alone take in roommates, anything to reduce financial obligations. There might be more tenants, but there are fewer leases because they are getting together,” he says.
Then there’s the competition from investors who’ve been snapping up foreclosed properties at bargain prices and renting them out, too, prepared to wait far longer for prices to rebound – perhaps a decade or more if necessary. Because they purchased the houses so much more cheaply, they can afford to charge lower rents, often undercutting the individual owner of a pricey house.
That is why so many experts we interviewed are urging sellers to become more realistic about pricing their homes for sale in the first place, based on current market values, not what a neighbor received for his house a few years ago. They say that for many sellers, it’s a better course of action than relying on rental income to wait out the market.
Source
Thursday, October 15, 2009
Fake Buyers Attack Man Selling House
A couple that approached a man in front of his Glendale house and inquired about buying his house later attacked and robbed him, Glendale police said.
The homeowner, who asked to not be identified for safety reasons, is trying to sell the house. It’s located right near the Glendale-Phoenix border.
He does not live at the house but was working in the front yard about a week and a half ago when the couple approached him and asked about the house.
He referred them to the real estate agent on the "for sale" sign in front of the house. They continued talking to him, though, and eventually he relented and agreed to show them the inside of the house.Once inside, he said the woman from the couple asked about something on the ground. When the homeowner bent over to look, he said the man from the couple attacked him.
“He ran at me from behind and hit me as hard as he could,” the homeowner said. “Split my ear open. Hit me three or four more times. By that time, I was down.”
The man continued to kick the homeowner. He also broke the homeowner’s cell phone, stole about $75 in cash and took credit cards. The homeowner refused to give the attacker the pin number to his credit cards, so the attacker left them.
The couple got away. Glendale police are still looking for them and investigating. The homeowner suffered severely bruised ribs and a lacerated ear.
“It’s a crime of opportunity,” the homeowner said. “I was standing there. It’s an open door. (They thought) maybe we can clean this guy out.”
Glendale police say there are multiple things to be learned from the situation.
First of all, when approached by the couple in his yard, the homeowner should have stuck his original idea, which was referring the couple to the real estate agent. Police suggest never letting strangers into your house.
If the prospective buyer calls you and wants to make an appointment to see your house, Glendale police recommend initially meeting somewhere other than the house.
They think meeting at your office might be a good alternative. Once there, ask to make a copy of the person’s driver’s license. You should also introduce the prospective buyers to a few co-workers.
“We feel it would be much less likely for them to commit a crime against you if they feel they might be recognized,” said officer Karen Gerardo, with the Glendale Police Department.
Source
The homeowner, who asked to not be identified for safety reasons, is trying to sell the house. It’s located right near the Glendale-Phoenix border.
He does not live at the house but was working in the front yard about a week and a half ago when the couple approached him and asked about the house.
He referred them to the real estate agent on the "for sale" sign in front of the house. They continued talking to him, though, and eventually he relented and agreed to show them the inside of the house.Once inside, he said the woman from the couple asked about something on the ground. When the homeowner bent over to look, he said the man from the couple attacked him.
“He ran at me from behind and hit me as hard as he could,” the homeowner said. “Split my ear open. Hit me three or four more times. By that time, I was down.”
The man continued to kick the homeowner. He also broke the homeowner’s cell phone, stole about $75 in cash and took credit cards. The homeowner refused to give the attacker the pin number to his credit cards, so the attacker left them.
The couple got away. Glendale police are still looking for them and investigating. The homeowner suffered severely bruised ribs and a lacerated ear.
“It’s a crime of opportunity,” the homeowner said. “I was standing there. It’s an open door. (They thought) maybe we can clean this guy out.”
Glendale police say there are multiple things to be learned from the situation.
First of all, when approached by the couple in his yard, the homeowner should have stuck his original idea, which was referring the couple to the real estate agent. Police suggest never letting strangers into your house.
If the prospective buyer calls you and wants to make an appointment to see your house, Glendale police recommend initially meeting somewhere other than the house.
They think meeting at your office might be a good alternative. Once there, ask to make a copy of the person’s driver’s license. You should also introduce the prospective buyers to a few co-workers.
“We feel it would be much less likely for them to commit a crime against you if they feel they might be recognized,” said officer Karen Gerardo, with the Glendale Police Department.
Source
Monday, September 28, 2009
Don't be too quick to sell
Sometimes selling your home is something you've planned for a long time.
You weigh the options carefully and do your research and find out how much homes are selling for in your neighbourhood. You take some time to find the right agent for you and then you set the ball in motion. However, sometimes selling your home can just happen by chance.
Imagine you're at a dinner party and are having a great time. You bump into an old friend and catch up with what's new in each other's lives.
During your conversation you mention that you and your family have been thinking about selling your home and will probably start seriously looking into the details in the following months. After an hour or so you make your rounds of good-nights and head home.
A couple of weeks later, the phone rings and it's your friend from the party. They may have potential good news.
After hearing that you were thinking of selling your home they talked to their neighbours who were looking to buy a house in your neighbourhood and were interested in looking at it.
An appointment is set and the following week they come to see the house. They instantly fall in love and promise that they will be in touch
True to their word, only a few days later you receive a call and the family is willing to make you an offer for your house. The offer seems to be a reasonable amount of money. But is it?
Everything seems to be moving so fast and you haven't had time to hire a real estate agent and get the house on the market. Having this offer almost seems like it could be a dream come true. But could it be too good to be true?
Having an offer presented to you before your house has even gone on the market is called a pre-emptive offer. You may not have had time to have the house inspected or have a real estate professional assist you with finding a reasonable price to sell your house. This type of offer can sometimes put the seller of the home in a really tough situation.
Pre-emptive offers can be one method buyers use to try to avoid competition from other buyers. By presenting an offer before anyone else has seen the house it may entice the seller to not seek out other offers, leaving them with the upper hand.
Pre-emptive offers may seem very appealing on the surface but deep down can be very troublesome. The idea of selling your house is great because you are accomplishing your main goal with very little effort. At the same time you may be selling your house for a lot less than what it is actually worth.
Every homeowner sets out to sell their house at a price that will hopefully allow them to make some money. Breaking even would also be an acceptable outcome but no one wants to lose money.
The use of a professional can help ease the stress of knowing what a reasonable asking price for your home would be. They will be able to tell you the worth of your home and whether they believe offers are within the realistic range.
Accepting a pre-emptive offer can be a huge gamble.
The pay-off could work in your favour but could also take a wrong turn and leave you with less money and a difficult situation to handle.
If you are not working with a professional to handle the offers and contract work for selling your home then you will probably be handling it yourself.
This could all go well but there is a chance that things may occur that you are not ready to deal with.
Using the example above, you would be dealing with someone that you do not know too well. You may be relying on a verbal agreement that they will buy the house for a certain amount.
Everything may seem in order but can take a quick turn for the worse.
Their financing could fall through and they would have to pull out of the deal. Or they could come back saying that they had different terms than what you thought were in your original agreement. This could not only cause grief for you but also but a strain on your relationship with the potential buyers and your friends.
Accepting a pre-emptive offer can work in your favour. But as outlined above, it can sometimes be more of a headache and end up costing you in the long run potential lost time, money and perhaps friends. As always, be sure to weigh your options carefully, and then get moving.
Source
You weigh the options carefully and do your research and find out how much homes are selling for in your neighbourhood. You take some time to find the right agent for you and then you set the ball in motion. However, sometimes selling your home can just happen by chance.
Imagine you're at a dinner party and are having a great time. You bump into an old friend and catch up with what's new in each other's lives.
During your conversation you mention that you and your family have been thinking about selling your home and will probably start seriously looking into the details in the following months. After an hour or so you make your rounds of good-nights and head home.
A couple of weeks later, the phone rings and it's your friend from the party. They may have potential good news.
After hearing that you were thinking of selling your home they talked to their neighbours who were looking to buy a house in your neighbourhood and were interested in looking at it.
An appointment is set and the following week they come to see the house. They instantly fall in love and promise that they will be in touch
True to their word, only a few days later you receive a call and the family is willing to make you an offer for your house. The offer seems to be a reasonable amount of money. But is it?
Everything seems to be moving so fast and you haven't had time to hire a real estate agent and get the house on the market. Having this offer almost seems like it could be a dream come true. But could it be too good to be true?
Having an offer presented to you before your house has even gone on the market is called a pre-emptive offer. You may not have had time to have the house inspected or have a real estate professional assist you with finding a reasonable price to sell your house. This type of offer can sometimes put the seller of the home in a really tough situation.
Pre-emptive offers can be one method buyers use to try to avoid competition from other buyers. By presenting an offer before anyone else has seen the house it may entice the seller to not seek out other offers, leaving them with the upper hand.
Pre-emptive offers may seem very appealing on the surface but deep down can be very troublesome. The idea of selling your house is great because you are accomplishing your main goal with very little effort. At the same time you may be selling your house for a lot less than what it is actually worth.
Every homeowner sets out to sell their house at a price that will hopefully allow them to make some money. Breaking even would also be an acceptable outcome but no one wants to lose money.
The use of a professional can help ease the stress of knowing what a reasonable asking price for your home would be. They will be able to tell you the worth of your home and whether they believe offers are within the realistic range.
Accepting a pre-emptive offer can be a huge gamble.
The pay-off could work in your favour but could also take a wrong turn and leave you with less money and a difficult situation to handle.
If you are not working with a professional to handle the offers and contract work for selling your home then you will probably be handling it yourself.
This could all go well but there is a chance that things may occur that you are not ready to deal with.
Using the example above, you would be dealing with someone that you do not know too well. You may be relying on a verbal agreement that they will buy the house for a certain amount.
Everything may seem in order but can take a quick turn for the worse.
Their financing could fall through and they would have to pull out of the deal. Or they could come back saying that they had different terms than what you thought were in your original agreement. This could not only cause grief for you but also but a strain on your relationship with the potential buyers and your friends.
Accepting a pre-emptive offer can work in your favour. But as outlined above, it can sometimes be more of a headache and end up costing you in the long run potential lost time, money and perhaps friends. As always, be sure to weigh your options carefully, and then get moving.
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