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10 Tips for a Winning Offer

10 Tips for a Winning Offer

10 Tips for a Winning Offer

With housing inventory being at an all-time low there is a great deal of competition when it comes to buying a home. So how do you as a buyer make your offer stand out – well here are ten things to consider to increase the chances of your offer being accepted:

 

First, Make Your Home Search a Priority

This may sound a little strange but in this sellers market you must be proactive. Ask your Realtor to establish an automatic property search that notifies you when a home meeting your criteria is listed –  and then respond to them quickly.

 

Be Flexible With the Closing Date

Some sellers may be wanting to close quickly, however, some may need some extra time for relocation purposes or having a new home built. Being accommodating to the seller’s schedule may help in closing the deal.

 

Present a Clean Offer

The fewer contingencies the better – if you can avoid making an offer with financial constraints or seller concessions great but before removing any financing contingencies make sure you fully understand the implications.

 

Shorten the Length of Your Inspection Period

The shorter the timeframe for an inspection period, the better for the seller of the home. Some buyers are deciding to waive the inspection period completely but again speak with your Realtor before making that decision.

 

Offer Above-Asking Price on the Home

If you want to secure a home in today’s hot seller’s market, you may have to craft your offer above-asking price. Consider homes that have sold recently and equally important homes that are under contract and likely to close in the near future – your Realtor should be able to provide this information.

 

Put Down a Larger Earnest Money Deposit (EMD)

It will show the seller you are a well-qualified, good-faith buyer serious about purchasing their home.

 

Make a Greater Down Payment

Similar to the Earnest Money Deposit, putting down a larger down-payment than required shows the seller that you are in a good financial position and are serious about going through with the purchase.

 

Include an Escalation Clause in Your Offer

When you add an escalation clause to your offer, you are giving a maximum price up to which you will outbid other offers. Although you may not be the only one adding an escalation clause, it will give you an advantage over buyers without one.

 

Pay in Cash

If you are able to make a cash offer do it. Deals subject to financing contingencies are often at the mercy of the lender’s process so a cash offer is preferred especially if competing against other financed offers.

 

Now these are all great tips but remember every market is different and the details for every transaction are different.

 

Most importantly: Work with an Experienced Realtor

Our Realtors have been in this business for over 30 years here in Central Florida they are a fantastic resource.

 

Contact us today and let us guide you safely through the process and we wish you the best of luck finding the perfect home.

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7 Reasons to Own a Home

7 Reasons to Own a Home

7 Reasons to Own a Home

7 Reasons to Own a Home

  1. Tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.

  2. Appreciation. Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®.  The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.

  3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

  4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

  5. Predictability. Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.

  6. Freedom. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.

  7. Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity. 

Dear Homebuyers: Learn About Your Down payment

Dear Homebuyers: Learn About Your Down payment

Dear homebuyers: Please stop thinking you need 20% down payment

NEW YORK – Feb. 18, 2019 – First-time buyer surveys consistently show the top hurdle to homeownership is saving up for the down payment. But potential home shoppers may be misunderstanding the amount of money they really need to buy a home.

“Paying 20 percent down is, quite frankly, a myth,” Karen Hoskins, vice president at NeighborWorks, told HouseLogic. “Most buyers pay only 5 percent to 10 percent down – some even pay zero.”Several assistance programs can help buyers with down payment concerns break into homeownership. For example, 69 percent of about 2,500 homebuying programs tracked by Down payment Resource offer down payment assistance. The average amount of assistance from these programs tops $11,000.

HouseLogic offers several places where buyers can search for down payment assistance, including through national government programs. The Federal Housing Administration offers loans to first-time buyers with down payments as low as 3.5 percent. Programs like the USDA Rural Development Loans and VA Home Loans offer eligible buyers zero-down payment loans. Mortgage financing giants Fannie Mae and Freddie Mac offer eligible buyers loans where they can put down as little as 3 percent of the purchase price.

When buyers put down less than 20 percent, they pay private mortgage insurance (PMI) each month to protect the lender’s interest, though the PMI can often be cancelled once they build up 20 percent equity in the property. Many state and local homebuying programs offer assistance programs too. There are many different forms of assistance, such as forgivable loans and grants (gifts for some or all of the down payment and closing costs) to soft mortgages (down payment assistance loans that are deferred for some period of time based on the program’s requirements).

Mortgage brokers should also be able to supply buyers with information about programs in their area and help determine eligibility.

SOURCE: © 2019 Florida Realtors®