Como ganar en ofertas Multiples

Como ganar en ofertas Multiples

Hace un año mostré una casa en NE Minneapolis cuyos dueños habían pasado meses preparándose para la venta. Había una corriente constante de compradores pasando por la casa. Esa noche recibí un correo electrónico del agente de listado, “Gracias por su paciencia mientras revisamos 28 ofertas”.

El próximo fin de semana mostré una casa más pequeña, y los 27 que no ganaron se habian presentado para intentarlo de nuevo. Hubo 14 ofertas en esa casa. Hay algunas cosas que los compradores deben saber del por qué una oferta se acepta en lugar de otra. La decisión no se toma solamente en el precio.

1. Incluya una carta al vendedor sobre por qué quiere comprar su casa. Si un vendedor ha puesto mucho trabajo en su casa, aprecia a un comprador que aprecie esos detalles. Eso hace una diferencia.

2. Adjunte una carta de pre-aprobación de su prestamista que incluya la dirección de la casa. Pídale a su prestamista que llame al agente de cotización para verificar que usted es un comprador sólido que ha comprobado su empleo y que no anticipa ninguna dificultad para cerrar.

3. Incluya buena fe que sea al menos el 1% del precio de compra, o más para demostrar que eres un comprador serio, que puede pagar la casa y que tiene la intención de cerrarla.

4. Haz tu primera oferta tu mejor oferta. Aunque podría pensar que un vendedor va hacer una contraoferta para solicitar un aumento, no es el caso. Los vendedores no están obligados a anunciar que hay ofertas multiples ni el desarrollo de esas ofertas. Los electrodomésticos, no se incluyen en una tasación, ni forman parte de la venta. Los préstamos FHA y los préstamos VA no quieren que se mencione la propiedad personal en su oferta y se negocean por separado.

5. Evitar insistir en una fecha tope. Una fecha límite indica que el comprador, o su agente, es inflexible y exigente.

Para ganar en ofertas múltiples, es útil saber qué buscan tanto el vendedor. El precio es un factor importante, pero hay otros factores que contribuyen. Recibirá muchos consejos de amigos y familiares, pero recuerde que ellos no están haciendo su oferta. Piense en su oferta como una presentación, use los 5 consejos y manténgase flexible. Si el vendedor necesita una fecha de cierre diferente, intente trabajar con ellos para que trabajen con usted y haci tu oferta ganara en ofertas multiples.  Felicidades por tu nuevo hogar!

The KonMari Method: Helping You Prep Your House for Sale

The KonMari Method: Helping You Prep Your House for Sale

One of the biggest challenges sellers face when listing their house is decluttering. Cleaning out some of the more personal decorating choices allows buyers to imagine themselves living in the house.

Those planning to sell soon are in luck! Marie Kondo, the inventor of the KonMari Method of Tidying Up, has gained popularity with her new Netflix series. She gives some great tips for sorting through years of accumulated possessions that we all collect in our homes.

“The KonMari Method™ encourages tidying by category – not by location – beginning with clothes, then moving on to books, papers, komono (miscellaneous items), and, finally, sentimental items. Keep only those things that speak to the heart, and discard items that no longer spark joy. Thank them for their service – then let them go.”

When you subjectively look at all of your belongings, you can sort through the ones that mean the most to you. Not only will you increase space for more joy-bringing items in your new home, but you will also have a much easier time packing remaining belongings!

“Remember, tidying up isn’t about getting rid of stuff. It is about creating an environment that sparks joy and improves your quality of life.”

When selling your house, first impressions matter! Before you or your agent schedule a photographer to take photos for your listing, make sure to tour your home with fresh eyes. Look for any imperfections that a buyer might notice.

When you sort through your more sentimental items, consider packing them away to ensure that you know where they all are. That way, they are safe during open houses and showing appointments. This will also cut down on the amount of packing you need to do right before you move!

Bottom Line

Whether you are selling your house to move up to a larger one, downsizing, or moving in with family, only bring the items that truly spark joy for you. This will not only help cut down on the items you move but also ensures that you’re off to a great start in your new home!

My Life as a TV Real Estate Reality Show Star

My Life as a TV Real Estate Reality Show Star

Every morning I wake up with my head exploding with brilliant Instagram images on rehabbing houses. It’s not an easy work, it takes a village. There are project plans, the decor has to be gorgeous, crew lined up, and buyers vetted. Hair and wardrobe make or break the image. What should I wear swinging a sledgehammer or showing a dingy basement? The look has to be professional and glamorous, yet with homey relatable images.

At 10 AM I meet the new couple at my office. They’ve been vetted by the casting team, contracts are signed, budget is set, and they’ve already bought one of the three houses we’ll show. They are so excited!!! We go over the script, and plan the day’s shooting. I’m ready, cameras on, let’s roll.

In the opening shot we’re doing introductions and I’m asking them everything about what they’re looking for, what would be their dream home? She goes on with the litany of, “I want, I want, I want, I want…” Listening attentively I nod my head, “You want four bedrooms, a gorgeous master spa bath, custom kitchen with a mile and a half of granite countertops, an outdoor entertainment center for under $200,000? Is that all?” Of course she does, I smile cheerfully. Let’s go see some houses!

The first house is a tiny bungalow with deferred maintenance for $120,000 begging for an $80K remodel to make it livable. Let’s call it The Witch is Dead Gingerbread house. Next, a spacious two story in need of coming out of the 1900s built on a hill with 300 steps. We’ll call that one Goat Hill. The third house is a brick 1.5 story with an unfinished 1/2 story and basement. Lots of naked space. It’s within the budget, they like the neighborhood, not far from schools and a hop to work. This one is Head Start. No brainer right? No wait, they want to think about it? I whip out my iPad showing 3D floor plans where we are moving walls, opening up the back with sliding glass doors, building a patio with beautiful grape vines, acres of granite in the kitchen and adding a couch with nautically themed pillows. They love it, let’s write an offer. Whew, we won the bidding, had to go over list price which means we cut back on the pillows.

The next morning we huddle over the iPad blueprints. We make color selections, cabinets, and finalize the design in 20 minutes. I’m wearing overalls and a hardhat prepared for demo. Most Realtors don’t do demo. I don’t either but my producer says that buyers want engagement and love to see Realtors in action. We already closed on the house, so we can head over for an early start. The crew is coffeed up, they’ve started without us. The buyers are excited, they get to knock out a wall. I grab a sledgehammer, give it a swing, and OMG it hit a water line. There is water all over the place! The buyers are watching bug-eyed with their mouths gaping. The producer yells, “Somebody get a plumber!” I’m soaking wet, my hair is dripping down my face, my right shoulder is screaming at me, and I’m not video ready. Can we cut PLEASE? Things happen. We joke that this kind of thing can happen to anyone. God, I hope that they don’t sue.

While I went to the emergency room our videographer got some good footage of the buyers ripping out cabinets and taking out a demi wall. Only one ugly surprise, flattened dead squirrel was found under the fridge (apparently he was hiding, but couldn’t escape.)

I met again with the buyers with my arm in a sling for a photo op just to show that this is not a job for wimps, I’ve got grit, and it’s an Instagram moment. We’re all together at base camp smiling. The crew takes over sheet rocking, wiring, plumbing. I’m taking a couple weeks away to work on my Instagram for my online store, Fantasy Fixes, everything you need for a rehab for pennies on the dollar. Only a phone call away.

The phone rings Saturday night. Mrs. Buyer just walked through a Restoration Hardware, she wants to change the theme as she fell in love with a $5K couch. I pour myself a vodka, straight. She’s crying, she insists that the couch will change her life. I’m crying, she is ruining mine. Thinking of 14 ways to asphyxiate her with the nautical pillows or get her to change her mind I purr into the phone, “Don’t worry, you sound so stressed. Why don’t you take a hot bath (scalding), relax, and we’ll meet at the house in the morning to work it out.”

The next morning we met at the house, which is nearly finished. Mrs. Buyer is excitedly placing the $5K couch along a load bearing wall of her mind. We measure, measure again. The couch is ginormous, but the house is not. It would take up over half of the living room, it won’t even fit in through the front door. The husband stands quietly glassy-eyed, he knows when he can’t win. “Well, what is it that you love about THAT couch?” She loves the creamy linen and the charcoal piping. We picked out a deep blue velveteen. “What if, just what if we have a cream linen slipcover with charcoal piping made for the couch that looks like the RH couch, but can fit in this room? That way, you get both a summer and a winter look, and stay on budget?” She stopped, rolled her eyes left, then right, sighed, looked at her husband, and back at me with a huge grin, “Alright!” We all breathed deeply in unison.

After that, things moved along uneventfully. The buyers weren’t allowed anywhere near, but I think that they sneaked around at night. Finally, the day for the big reveal. The slipcover for the couch is done, the kitchen glows with sunlight, we even came in $25 under budget. It’s a win for all sides. My producer blindfolded the buyers, I’m their guide dog and lead them down the path. Cameras are rolling, “ARE YOU READY?”

Of course, they are ready. Smile, and call it a day.

Whether you’re selling a house or buying a new home in the Minneapolis, MN, area, turn to Mary Jo Quay with RE/MAX Results for quality real estate assistance. Contact her at (612) 384-1360 or visit the website to learn more about her services or browse local real estate listings.

Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts

Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts

It should come as no surprise that buying a home in a good school district is important to homebuyers. According to a report from Realtor.com, 86% of 18-34 year-olds and 84% of those aged 35-54 indicated that their home search areas were defined by school district boundaries.

What is surprising, however, is that 78% of recent homebuyers sacrificed features from their “must-have” lists in order to find homes within their dream school districts.

The top feature sacrificed was a garage at 19%, followed closely by a large backyard, an updated kitchen, the desired number of bedrooms, and an outdoor living area. The full results are shown in the graph below.

Buyers are attracted to schools with high test scores, accelerated academic programs, art and music programs, diversity, and before and after-school programs.

With a limited number of homes available to buy in today’s real estate market, competition is fierce for homes in good school districts. Danielle Hale, Chief Economist for Realtor.com, explained further,

“Most buyers understand that they may not be able to find a home that covers every single item on their wish list, but our survey shows that school districts are an area where many buyers aren’t willing to compromise.

For many buyers and not just buyers with children, ‘location, location, location,’ means ‘schools, schools, schools.’” (emphasis added)

Bottom Line

For buyers across the country, the quality of their children’s (or future children’s) education ranks highest on their must-have lists. Before you start the search for your next home, let’s get together to discuss the market conditions in our area.

Are You Thinking of Selling Your Home? Competition Is Coming!

Are You Thinking of Selling Your Home? Competition Is Coming!

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of building permits issued in June was 850,000, a 0.8% increase from May.

How will this impact buyers?

More inventory means more options. Mark Fleming, First American’s Chief Economist, explained that this is good news for the housing market – especially for those looking to buy:

“The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages.”

How will this impact sellers?

More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

  1. A great price on their home as buyers outbid each other for it.
  2. A quick sale as buyers have such little inventory to choose from.
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal.

Bottom Line

If you are considering selling your house, you’ll want to beat this new competition to market to ensure that you get the most attention on your listing and the best price for your house.

Housing Market: Another Gigantic Difference Between 2008 and 2018

Housing Market: Another Gigantic Difference Between 2008 and 2018

Some are attempting to compare the current housing market to the market-leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Bottom Line

We will not have a glut of inventory like we did back in 2008 and home values won’t come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).

Rising Prices Help You Build Your Family’s Wealth

Rising Prices Help You Build Your Family’s Wealth

Over the next five years, home prices are expected to appreciate, on average, by 3.6% per year and to grow by 18.2% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchased and closed on a $250,000 home this January. If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?

Since the experts predict that home prices will increase by 5.0% in 2018, the young homeowners will have gained $12,500 in equity in just one year.

Over a five-year period, their equity will increase by over $48,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

How Much Do You Need to Make to Buy a Home in Your State?

How Much Do You Need to Make to Buy a Home in Your State?

It’s no mystery that cost of living varies drastically depending on where you live, so a new study by GOBankingRates set out to find out what minimum salary you would need to make in order to buy a median-priced home in each of the 50 states, and Washington, D.C.

States in the Midwest came out on top as most affordable, requiring the smallest salaries in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy with California, Washington, D.C., and Hawaii edging out all others with the highest salaries required.

Below is a map with the full results of the study:

GoBankingRates gave this advice to anyone considering a home purchase,

“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”

As we recently reported, research from Zillow shows that historically, Americans had spent 21% of their income on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of income needed today is only 15.7%!

Bottom Line

If you are considering buying a home, whether it’s your first time or your fifth time, let’s get together to evaluate your ability to do so in today’s market!

Is Family Mortgage Debt Out of Control?

Is Family Mortgage Debt Out of Control?

Some homeowners have recently done a “cash out” refinance and have taken a portion of their increased equity from their house. Others have sold their homes and purchased more expensive homes with larger mortgages. At the same time, first-time buyers have become homeowners and now have mortgage payments for the first time.

These developments have caused concern that families might be reaching unsustainable levels of mortgage debt. Some are worried that we may be repeating a behavior that helped precipitate the housing crash ten years ago.

Today, we want to assure everyone that this is not the case. Here is a graph created from data released by the Federal Reserve Board which shows the Household Debt Service Ratio for mortgages as a percentage of disposable personal income. The ratio is the total quarterly required mortgage payments divided by total quarterly disposable personal income. In other words, the percentage of spendable income people are using to pay their mortgage.

Today’s ratio of 4.44% is nowhere near the ratio of 7.21% during the peak of the housing bubble and is instead at the lowest rate since 1980 (4.38%).

Bill McBride of Calculated Risk recently commented on the ratio:

“The Debt Service Ratio for mortgages is near the low for the last 38 years. This ratio increased rapidly during the housing bubble and continued to increase until 2007. With falling interest rates, and less mortgage debt, the mortgage ratio has declined significantly.”

Bottom Line

Many families paid a heavy price because of questionable practices that led to last decade’s housing crash. It seems the American people have learned a lesson and are not repeating that same behavior regarding their mortgage debt.