helpful article from realtor.com in today's Denver Area Market...
In a sellers’ market, competition can turn fierce. Standing out becomes a challenge.
In these tight markets, smart strategies can make a big difference. Money helps, of course, but so does some creative and heartfelt communication—and having the right professional in your corner.
Follow these six tips, and you’re going to find success is just around the corner … along with your new house.
1. A good agent
An assertive, experienced REALTOR® will know the market well and will move quickly to present an offer to the seller.
They’ll be able to guide you through options that may seem a little crazy in a slower market—but could prove the difference between success and more house-hunting in a tight one.
2. An earnest deposit
A substantial deposit makes a big difference.
A reasonable deposit will be about 3% of the value of the property. A seller usually takes such an offer seriously and will feel confident you are committed to stand by this offer.
This could give your offer a winning edge. Submitting a pre-approval letter with the deposit puts your bid ahead of the others by showing the seller you have serious intentions.
3. Money talks
Of course, the more cash you can offer up-front can make a difference. too.
If you can afford a 30% or 40% down payment (or more), that may tempt sellers. And, in the long run, it will save you money on a mortgage, shortening the length of your loan and the interest you pay.
Few homeowners are likely to dismiss an all-cash sale. But let’s be honest—that’s a lot of dough that most people don’t have access to.
4. Get personal
Appeal to the seller’s emotions: include a personal letter in the offer to the person selling the property.
Explain why you want to buy the house and what you particularly like about it. Be as specific as possible. Appeal to what you may know of the property history.
Perhaps it’s a historic house the sellers lovingly restored, and you plan to keep it that way—tell them. Maybe you’re looking forward to raising your children in the specific community.
Other offers will appear impersonal in comparison.
5. Speed things up
Offer to close quickly. Most sellers want to make a speedy transaction—they’ll like this.
A standard closing period is about 30 days. If you can close in three weeks instead, this could convince the seller to accept your bid—even over one that offers more money.
Another winning negotiation strategy is to waive some of the contingencies usually included in a standard contract. For example, a winning offer can be one which agrees to shorten the period the buyer has to inspect a property for lead paint contamination.
Before you agree to waive any contingencies, however, you should check with your attorney.
6. Be nice
The sellers want a few more days in the house. Consider giving that to them rent-free.
There’s a few things ideally you’d like them to fix—but if they aren’t deal-breakers, consider letting that go.
Be friendly and personable, because if you prove to be someone they don’t mind dealing with, that could tip things in your favor, too.
Confirm Your Commitment
Ultimately, the question is this: how much do you want a new home?
In a sellers’ market, you’re probably going to have to give more, in many ways.
But hopefully your perseverance will pay off—for your family, and your bank account.
Tuesday, April 7, 2015
5 Spring Home Maintenance Projects
interesting spring home maintenance reminder from trulia.com article...
With winter behind us, it’s time to freshen up for the warmer weather ahead. Depending on where you live, you might be convinced that Mother Nature is playing a cruel joke. But regardless of your address, spring is officially here which means it’s time to spruce up the old house. According to Trulia, summer is the hottest season for real estate so if you’re thinking of listing soon, spring is your last opportunity to make those home improvements. If you missed out on winter home repairs, here are a few home maintenance items to tackle as spring puts the spring back in your step.
Check those gutters
The weight of snow, falling branches, and cold temperatures can wreak havoc with your home’s gutters. Grab a ladder (and a buddy) and give your gutters the once-over. Check for blockages caused by debris and leaves, make sure seams are firmly held together, and clear the drainage ways as you prep for spring rains.
Clear that chimney
Do you have a home with a chimney? If you live in the Midwest, it’s highly likely you do. While the singing chimney sweep from Mary Poppins might not fit the bill, every home needs a professional this time of year. Make an appointment for an inspection — they’ll check the mortar, flue, and ensure it’s in good repair before the spring rains.
Inspect outside water connections
Sometimes our garden hose don’t make it inside during the winter. Now is a good time to check your hoses for rips, tears, and breaks, as well as check the spigots coming out of the house for any cold-related damage. Remember: thawing still-frozen pipes is a delicate process and to avoid damage, pipes are best thawed slowly. This is one case where slow and steady wins the race (and saves your wallet).
Tune-up your cooling system
Before the heat of late spring and summer set in, have an HVAC professional inspect both your central and window air conditioning units. While you’re waiting for them to arrive, go ahead and replace your air filters for good measure.
Review your roof
The most expensive (and most unwelcomed) repairs are from the damage we can’t see — inspecting your roof each spring is a must. Houselogic has an extensive checklist for seasonal roof inspections, designed to keep you ahead of costly repairs and keep small problems from becoming big ones. The roof over your head has been good to you. Why not be good to it in return by giving it a little post-winter TLC?
With winter behind us, it’s time to freshen up for the warmer weather ahead. Depending on where you live, you might be convinced that Mother Nature is playing a cruel joke. But regardless of your address, spring is officially here which means it’s time to spruce up the old house. According to Trulia, summer is the hottest season for real estate so if you’re thinking of listing soon, spring is your last opportunity to make those home improvements. If you missed out on winter home repairs, here are a few home maintenance items to tackle as spring puts the spring back in your step.
Check those gutters
The weight of snow, falling branches, and cold temperatures can wreak havoc with your home’s gutters. Grab a ladder (and a buddy) and give your gutters the once-over. Check for blockages caused by debris and leaves, make sure seams are firmly held together, and clear the drainage ways as you prep for spring rains.
Clear that chimney
Do you have a home with a chimney? If you live in the Midwest, it’s highly likely you do. While the singing chimney sweep from Mary Poppins might not fit the bill, every home needs a professional this time of year. Make an appointment for an inspection — they’ll check the mortar, flue, and ensure it’s in good repair before the spring rains.
Inspect outside water connections
Sometimes our garden hose don’t make it inside during the winter. Now is a good time to check your hoses for rips, tears, and breaks, as well as check the spigots coming out of the house for any cold-related damage. Remember: thawing still-frozen pipes is a delicate process and to avoid damage, pipes are best thawed slowly. This is one case where slow and steady wins the race (and saves your wallet).
Tune-up your cooling system
Before the heat of late spring and summer set in, have an HVAC professional inspect both your central and window air conditioning units. While you’re waiting for them to arrive, go ahead and replace your air filters for good measure.
Review your roof
The most expensive (and most unwelcomed) repairs are from the damage we can’t see — inspecting your roof each spring is a must. Houselogic has an extensive checklist for seasonal roof inspections, designed to keep you ahead of costly repairs and keep small problems from becoming big ones. The roof over your head has been good to you. Why not be good to it in return by giving it a little post-winter TLC?
4 Reasons to Sell Your Home Now
from Money.CNN.com, interesting info for sure...and definitely applicable in the front range Denver Area Market...
Attention potential sellers sitting on the fence: It could be time to make a move.
Mid-March to mid-April is the best time to hang the sale sign nationally, with homes selling 15% faster and for 2% more than the average sale, according to Zillow. The window tends to be a little earlier for sellers in warmer climates and a little later in colder climates.
"It's still predominately a seller's market, but less so than the last year or two," said Stan Humphries, Zillow's chief economist. "Some advantages are moving back to buyers; but largely and broadly ... it's still favoring the sellers."
Here are four reasons you might want to list your home:
1. Low housing supply: Tight inventory is a main reason the ball is still in the sellers' court.
The level of unsold homes was 4.6 months in February, according to the National Association of Realtors. That means it would take a little less than five months for all available inventory to sell. In a normal market, a five-to-seven month supply is considered balanced, said Danielle Hale, director of housing statistics at the NAR.
Tight inventory tends to prop up home prices and can result in multiple offers and spur bidding wars.
But at the same time, low supply is also keeping some sellers in their homes. "They aren't typically going to sell and then rent," explained Hale. If sellers aren't comfortable that they will be able to find a new home, it can keep them off the market. "There needs to be more construction in the market to ease the pressure," she said.
2. Fewer cash buyers: All-cash and investment buyers helped buoy home sales in the last couple years. And while the acceleration of home prices has slowed from its recent double-digit growth, experts still expect modest gains this year, but with fewer cash buyers.
All-cash offers made up nearly 31% of sales in 2014, according to RealtyTrac, a 13% drop from 2013 and the lowest level in four years.
"We are predicting a more stable and sustainable housing market in terms of price growth," said Ralph McLaughlin, Trulia's housing economist. "A lot of the growth we saw was from cash buyers, but now we are thinking those buyers will play less of a role."
3. Higher interest rates: While mortgage rates remain low, experts predict more buyers will enter the market in the coming months.
The Federal Reserve's recent hint that higher interest rates are coming sooner rather than later could prompt buyers to start their house hunt in order to take advantage of lower mortgage rates.
"When interest rates are thought to be escalating, we see a wave up activity with people getting off the sidelines," said Budge Huskey, president and CEO of Coldwell Banker Real Estate.
4. Rising rents: Rising rental prices could motivate tenants to make the leap into home ownership. Rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn't kept up, according to NAR.
"Every time there's an increase, it triggers the decision processes on whether [renters] should go into the market and buy," said Huskey. Getting more buyers into the market, especially first-timers, can help sellers feel more comfortable about their prospects. "It allows others to move up the chain in the market."
But higher rents can be a double-edged sword, according to Humphries. "Renting is so darn expensive already it makes it hard to save for a down payment."
Attention potential sellers sitting on the fence: It could be time to make a move.
Mid-March to mid-April is the best time to hang the sale sign nationally, with homes selling 15% faster and for 2% more than the average sale, according to Zillow. The window tends to be a little earlier for sellers in warmer climates and a little later in colder climates.
"It's still predominately a seller's market, but less so than the last year or two," said Stan Humphries, Zillow's chief economist. "Some advantages are moving back to buyers; but largely and broadly ... it's still favoring the sellers."
Here are four reasons you might want to list your home:
1. Low housing supply: Tight inventory is a main reason the ball is still in the sellers' court.
The level of unsold homes was 4.6 months in February, according to the National Association of Realtors. That means it would take a little less than five months for all available inventory to sell. In a normal market, a five-to-seven month supply is considered balanced, said Danielle Hale, director of housing statistics at the NAR.
Tight inventory tends to prop up home prices and can result in multiple offers and spur bidding wars.
But at the same time, low supply is also keeping some sellers in their homes. "They aren't typically going to sell and then rent," explained Hale. If sellers aren't comfortable that they will be able to find a new home, it can keep them off the market. "There needs to be more construction in the market to ease the pressure," she said.
2. Fewer cash buyers: All-cash and investment buyers helped buoy home sales in the last couple years. And while the acceleration of home prices has slowed from its recent double-digit growth, experts still expect modest gains this year, but with fewer cash buyers.
All-cash offers made up nearly 31% of sales in 2014, according to RealtyTrac, a 13% drop from 2013 and the lowest level in four years.
"We are predicting a more stable and sustainable housing market in terms of price growth," said Ralph McLaughlin, Trulia's housing economist. "A lot of the growth we saw was from cash buyers, but now we are thinking those buyers will play less of a role."
3. Higher interest rates: While mortgage rates remain low, experts predict more buyers will enter the market in the coming months.
The Federal Reserve's recent hint that higher interest rates are coming sooner rather than later could prompt buyers to start their house hunt in order to take advantage of lower mortgage rates.
"When interest rates are thought to be escalating, we see a wave up activity with people getting off the sidelines," said Budge Huskey, president and CEO of Coldwell Banker Real Estate.
4. Rising rents: Rising rental prices could motivate tenants to make the leap into home ownership. Rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn't kept up, according to NAR.
"Every time there's an increase, it triggers the decision processes on whether [renters] should go into the market and buy," said Huskey. Getting more buyers into the market, especially first-timers, can help sellers feel more comfortable about their prospects. "It allows others to move up the chain in the market."
But higher rents can be a double-edged sword, according to Humphries. "Renting is so darn expensive already it makes it hard to save for a down payment."
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