Make your offer stand out!
As you may know, when the real estate market is competitive it means as a buyer you could likely be competing with multiple offers on the same property. When this the case you need to make your offer stand out! Here’s a few ways to do just that.
Offer Price
This is obviously the most important part of the deal. When there are multiple offers it almost always means that you need to match the seller’s asking price or beat it. Going above the asking price is a good way to show that you are serious. How much above the asking price? Well that depends on many factors that you and your agent can sort through, but you need to make sure that you can still finance the home and that you don’t offer too much money (although it is OK to splurge a bit if this is the home of your dreams).
Financing
This is the second most important part of your offer, because without financing there is no deal, unless you happen to be a cash buyer. Assuming your offer price is the same or close to the other offers on the table, the seller will be looking for the buyer with the strongest financing, aka the least chance of their loan falling through. Cash is always king in these scenarios, so if you aren’t a cash buyer then you should try to put as much money down as you can reasonably afford to.
Contingencies
The common contingencies in real estate are the mortgage and home inspection, and sometimes the buyer’s home sale. Ultimately, the most attractive offers have the fewest amount of contingencies. If you need a mortgage then it’s impossible to waive that, which is why cash offers are always preferred. It’s also impossible to waive your home sale contingency if you need the equity from your current home to purchase this new one. So what can you control? The home inspection. Depending on you and the property, it is sometimes OK to forgo a home inspection or make it so that the results of the inspection cannot impact the sale. We only advise this if the home is in great condition, or if you have the ability and know-how to tackle the issues that could be hiding in the home.
Other Factors
What else can you do? Be flexible and kind! Try your best to accommodate the seller’s timing. Also, having an easy-going demeanor around their listing agent can go a long way as they often share those things with the seller. No one likes working with people who aren’t pleasant and reasonable. Finally, a nice touch is to include a short letter that tells them a bit about yourselves and what you love so much about their home. Sometimes some sincerity and nice words will go a long way!
Home Inventory is Down 37%
Over the past 3 months, home inventory (single-family and condos) through Massachusetts has dropped 36.6% from 15,879 total homes on market to 10,066.
What does this mean?
It means two things. First, if you've been thinking of selling, now is a great time to get your home listed for sale. In these market conditions, a good agent who properly markets your home should be able to make your home stand out among the rest. While it can't be guaranteed, the low inventory should help your chances of seeing a multiple offer scenario. > Learn about selling with us and reach out for an estimate of your home's value.Second, if you're a buyer, the market is going to be fairly competitive as new homes pop up for sale. This means that you need to set your self apart as a "strong buyer". You should have a solid pre-approval, the ability to put down a decent deposit on the home, and the flexibility to adapt to what the seller is ideally hoping for. These factors vary from home to home and seller to seller, so an experienced agent will know to ask the right questions, and will then be able to position your offer for the best chance of success. A great first step is to have a quick discussion with us about your situation. > We'd love to help find you a home!
Don't forget to prep your home for winter!
There are a few simple, inexpensive maintenance items that every home owner should do before winter hits. Remember, it's always cheaper to prevent rather than repair, and some of these maintenance items could save your life!Check your smoke and carbon monoxide detectors!We say this a lot but it can't be stressed enough, especially in the winter when your furnace will be running 24/7.Have your furnace and chimney inspectedThese inspections very important and thankfully cheap to do (usually under $100). Make sure your furnace is running efficiently and that your chimney is properly ventilating your home.Make sure your gutters and downspouts are clearGutters clogged with fall leaves will lead to poor drainage which could weigh them down with ice in the winter and lead to wood rot, which is never fun to replace.Shut-off external water pipesOutdoor spigots and irrigation systems should be drained to prevent freezes and breaks.Remove your window screensThis will prevent them from being damaged by frost and driven snow, plus it will allow more light in during those dreary winter months and increase the passive solar heating from direct sunlight.
Is condo living right for you?
While this might seem like a simple question to answer, it’s helpful to have the important factors laid out in front of you.Living Space:Typically condos are smaller in both living and storage space, which means that there’s less to clean and maintain, but it can also be limiting to certain lifestyles. (Bonus: It keeps you from saving things that aren’t worth saving!)Close Neighbors:Depending on the style of condo you buy, your neighbors will either be next to you, above you, below you, or all of the above! So if you’re someone who has a tough time getting along with others, lives a noisy lifestyle, or is looking for a great deal of privacy, then condo living may not be for you. On the other hand, you could make some great friends and there is alway someone else around to look out for anything going amiss.Outdoor Space:Much like living space, the majority of condos don’t offer much in the way of a yard. This is a nice plus from a low-maintenance / zero yard work perspective.The above points are great to get you thinking about the condo lifestyle. Also, we recommend you take the time to jot down what is important to you in your day to day living. This will go along way to helping you make the decision that’s right for you.Nearly every day we are helping someone buy or sell a condo, feel free to reach out to us with any questions about the condo lifestyle.
Thinking of selling your condo? Read these must-know finance regulations!
One of the most common and tricky hurdles of condo transactions are financing troubles. They can be caused by a variety of factors and unfortunately many times they’re the issue that makes a sale fall apart. Below are some of the most common financing issues:Renter versus Owner Ratio:This is a stat that your Homeowners Association (HOA) should be monitoring. If the percentage of owners renting out their units is too high then many banks will be weary of providing mortgages to that property. Typically they like to see a rental ratio of under 50%.Single Owner Interest:Banks don’t like to see one person or entity owning more than 10% of the units in a community.Commercial Interest:If your community has a portion of that is commercially zoned, banks typically want to see that it is no more than 25% of the community.These are the typical big 3 issues. How to remedy them? Well that’s something that can be tricky in some scenarios and easier in others. It starts with the HOA. They should be aware of these statistics and proactively impose regulations to make sure that they keep the community as “mortgage friendly” as possible.If that has been neglected, then your other hope is that the agent you work with has a network of lenders that can specialize in unique financing scenarios. An agent who is adept at condo sales should have a repertoire of portfolio lenders to navigate these issues.If you have questions, comments, or require lender recommendations please feel free to reach out to us.