How to Gain Leverage Over Other Buyers in Today’s Competitive Buying Market

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For years now, buyers have been able to come in fairly low and actually get away with offers that sellers would never have accepted just a few years prior to that. But now, things are shifting back to a more balanced marketplace and we are noticing some big changes in the way buyers and sellers are interacting. Here are some ways you can gain the upper hand over other buyers vying for the same (few) properties that are scarcely available in our market today.

Don’t Hold Back When You Find Something You Like

A common mistake made by many buyers in a competitive market is to hold off on making an offer on something they really like. The chance of finding a home that meets every single need is next to impossible, that’s why it is important to recognize your deal breakers and if you like the home for the most part, go ahead and make an offer on it.

If You’re Serious, Present a Serious Offer – The First Time

Now is not the time to be playing games when it comes to trying to get the home of your dreams. With so few homes on the market and so many buyers, there is a good chance you could lose the home altogether if your offer is not strong enough. Carefully consider your offer and act as if that is your only chance.

Engage in the Services of a Local Expert

There is a lot of merit to working with a local real estate agent that knows the area and knows other agents in the area. At times, when all else fails, a seller may opt for your offer just because their agent also knows your agent. Not to mention, the expert advice you can expect from your REALTOR® in being able to recognize a good deal among other things.

Structure An Offer That Makes the Seller Happy

One of the strongest signs of a serious buyer is a large deposit. Though the standard varies from area to area, typically at least 1% is put toward earnest money and it shows some level of seriousness on the buyer’s part when they go above that.
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Other things you can do to make sure sellers pay more attention to your offer and less to others include writing a personal letter to share what you love about the home or be willing to waive contingencies or at least shorten contingencies. Savvy buyers also work to keep their offers simple, clean and easy to read plus they don’t hesitate to offer cash if they can do it, shortening the time period between now and closing.

If you don’t need closing cost assistance, don’t ask for it and finally – if you really love the property, do what works best – offer more money.
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Contact us today to find your perfect dream home!

5 Things To Do When Moving Into a New Home

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Moving into a new home can be an extremely exciting time in a person’s life.  However, it can also be incredibly hectic.  There are some things that can be placed on the back burner during the move in process.  With these five easy tips on moving into a new home, you can be sure to back your house as safe and cost efficient as possible.

Change the Locks

At closing time, the seller of a house turns over the keys to the new owners.  Many times, though, the previous owner will have given a spare key to a friend or neighbor in case of emergency.  Enlist a locksmith to come to the house and change all of the locks and get new keys made.  This final transition from one owner to the next will give the new homeowner peace of mind.

Reprogram Your Garage Door Remote

Along with changing the locks of your home, reprograming your garage door remote will ensure the safety of your house.  Depending on the brand of remote, steps in reprograming it may differ, but the process is simple for nearly all brands.  Most remotes have a “Learn” button, which you must hold until the indicator light blinks.  While the indicator light blinks, press the button on your remote.  This should reprogram your garage door opener remote.  If this does not work, contact your remote manufacturer or local hardware store for assistance.

Change Your Home’s Air Filters

Most air filter manufacturers recommend that you change the HVAC air filters once every month. Due to the increased amount of activity of moving furniture in and out of the house, a larger concentration of dust will collect in the ventilation system.   In order to improve the air quality in your home and increase heating and cooling efficiency, make sure you change your air filters right when you move in.

Install New Batteries in Smoke Alarms 

When a person is selling their home, there are many different procedures they must do to ensure that it is ready for sale.  Often times, during the stress of the home selling process, the smoke alarms are forgot about.  Ensure the safety of your home and family by changing the batteries in the smoke detectors when you move into a new house.  This cheap and quick home improvement has the potential to save your family’s life.

Reprogram Your Security System

If you have a security system in your new house, it is a smart idea to reprogram it. If there is a number-code or word-code for the system, make sure that you choose a code that the whole family can easily remember, especially if you have young children.

By following these five easy steps, a person who has just moved into a new home can make their house as safe and cost efficient as possible.

Need a Real Estate Agent Referral? We Can Help!

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If you moved from one place to another you might ask someone from work to doctor personally recommended a doctor. This new doctor can become a trusted family resource, and you would be thankful to that person.

Referrals like this happen in the real estate field, as well.  Over the past 15 years, we have faithfully invested in our own professional education by attending a wide range of events, and we communicate with top agents across the country.  We mastermind regularly with these agents, who are providing superior results to their clients. So if you have a family member, friend, or business associate with a real estate need anywhere in North America, contact us so that we can provide you with an agent with experience and a proven track record.

Just like the field of medicine, the real estate marketplace is constantly evolving, you need to work with professionals who are willing to continually educate themselves, who innovate, invest in their businesses, and commit to world class service.

Let us help you locate those professionals nationwide.

October 2012 Real Estate Market Update

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If you have been following the real estate market, chances are you already know that things have been slowly but surely improving over the past few years. Particularly during the past two years we have seen a stronger market in terms of sales and inventory levels. Today, we are looking at inventory levels so low that sellers are finally enjoying a market controlled by them for the first time in years.

Record Setting Low Interest Rates Still Going Strong

But the news is not all bad for buyers. Though they are no longer in “control” of the market, buyers are still enjoying very strong buying power with the phenomenal interest rates still available. In fact, with the Fed keeping the base rate low, we can expect to continue seeing such low interest rates until at least late 2013.

Short Sales Continue to Relieve Many Underwater Mortgagors

One of the things we have been dealing with is a higher number of pending short sales. Banks are now streamlining the process more so than what we had seen in the immediate aftermath of the 2007/2008 housing crisis. For those that may not know the clear definition of a short sale; when a house is worth less than what is owed on it, a short sale takes place to satisfy a partial amount of the loan and the bank is left with a shortfall on the rest. There are some eligibility requirements such as there must be a hardship to qualify for a short sale, however for the right candidates it can be a good alternative to foreclosure. In some cases, banks will even provide several thousand dollars in relocation assistance to qualified short sale sellers.

Sellers Enjoying Multiple Offers and Stronger Selling Market

Along with fewer homes on the market, comes increased demand and simultaneously a push toward higher prices. One of the effects of our current seller’s market is that sellers are experiencing multiple offers. The number of days it takes to sell properties is also going down, making it an even more ripe market to sell your home.

For homeowners currently stuck with interest rates that are higher than today’s super low rates, refinances are providing a huge amount of savings. In fact, some borrowers have had multiple refinances over the past 18 months.
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If you would like to sit down to evaluate your real estate situation, goals or needs – contact us today at 661-259-1100, 818-898-2255 or email at rod@teamrod.com. We look forward to hearing from you!

Today’s Real Estate Market Provides Plenty of Financing Opportunities for Buyers

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Understandably, many buyers are extremely wary of approaching lenders about purchasing a property these days.  And this trepidation comes for good reason.  After the 2007 mortgage crisis and the subsequent recession hit people did not know what to expect.  Around the same time a perfect storm was building that ended up in the revelation of one of the most unprecedented mortgage scandals ever to hit the US in 2010.  The result was cautious lenders, nervous borrowers and a lot of uncertainty about mortgages.

Fast-forward to today and a lot of that has cleared up.  The national real estate market has come back down to earth, the banks involved in the robo-signing scandal have settled with regulators and lenders are back in the business of providing loans to deserving homebuyers.

Lenders Requirements Soften As More Consumers Apply for Loans

Just a couple years ago it seemed that in order to buy a home, buyers would have to jump through impossible hoops of proverbial fire. There were countless checks, verifications, documentation requests, explanation letters and more.  Many buyers were faced with grueling processes that left them broken spirited and dejected throughout the ordeal.

But today, more and more buyers are reporting easier mortgage applications.  Lenders still do have their requirements – especially in light of past mistakes that led to countless foreclosures that might have otherwise been avoided today.  As long as a buyer has a job, decent credit and transparent financial records – the mortgage application is fairly simple these days.  Banks like to see stable employment for at least the past two years in most cases and their definition of good credit is a credit score of at least 620.  Being able to demonstrate the source of all income is another factor that weighs heavy on creditors’ decision to approve mortgage applications.

Ideal Market for Buyers In Multiple Scenarios

First time buyers have an excellent opportunity to buy at record-setting low interest rates.  In fact, for buyers with at least a 20% down payment on their home the rate is currently below 4% for qualified buyers in many markets.  Not only does a 20% down payment these days ensure a lower interest rate but it also eliminates the need for Private Mortgage Insurance – an expense that can add a significant amount to each monthly payment.

Homeowners with equity in their existing properties are at a perfect advantage right now with the ability to move up into a bigger and better home, either at the same monthly payment or by reducing their mortgage term and effectively paying it off sooner.   In addition, their property tax bills will be lower given that they are paying less on their properties.

Finally, the current market presents an excellent opportunity for investors – whether to rent out the property, hold on to it as a vacation home or flip it for a short-term return on investment.  Once again, with 20% down this is an unprecedented opportunity to break even or see positive cash flow almost immediately on a new home or condo.
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If you would like to explore your options in today’s market – contact us today!  We’ll review your real estate goals and work to achieve them so that you can create long-term wealth while enjoying the peace of mind and happiness of owning a great home!