Agents Heaven - Real Estate Blog

How To Make Successful Low-Ball Offers In Buyers’ Markets

Whether or not you like the future of the real estate market, there is no debate over who currently holds the cards: the buyers.  With home prices projected to fall and more existing homes sitting on the market, buyers are justifiably beginning to wield their power.

The “lowball” offer isn’t exclusive to the buyers’ market, but it’s especially important in a buyers’ market and can lead to you saving a bundle.  MarketWatch’s Amy Hoak has written an article, detailing the “dos and dont’s” of low-balling and the potential outcomes of making these types of offers.

Amy discusses a case study, and then details the three major points of low-ball offering.  The main points follow, but you should read the entire article as she details each of these 3.

1. Learn how motivated the seller is to make a deal
2. Make your case with hard facts
3. Prepare for the possibility of rejection, or negotiation

Elizabeth Weintraub at About.com offers similar advice.

Tags: lowball offer, real estate, make an offer, buyer’s market, real estate offer, first time home buyer, discount real estate, home buyer, buyers market, buyers’ market, low-ball offer, home buyers, cheap real estate, real estate market

Can’t Get Rid of That Home? Try These Tried & True Home Selling Methods in This Buyer’s Market

As the current mortgage situation weighs on the overall outlook for the real estate market, it’s tough to say “it’s a buyer’s market”, as many people are concerned we’re not even close to the bottom yet, and things will get much worse before they get better. Others disagree.

The trouble is, it’s tough to know who’s right. Many of the “experts” are bloggers who’s existence depends on negative developments in the real estate market (evident by their very blog names), so can you really trust them? We’ve heard “experts” say that the “real estate bubble” was about to burst for years, and it never happened. Even now, we’re still in slowdown rather than a crash. Could it crash? Possibly, but we aren’t there yet. We still occasionally see positive numbers pop up in months where negatives were predicted, indicating a softer blow than some seem to be almost hoping for.

Home prices have definitely fallen, and seem set to fall further for some time. Some call it a buyer’s market, others call it the calm before the storm. Either way, the ball is certainly not in the court of the seller at this point, especially with the existing homes on the market piling up. If buyer’s have good credit and can get a loan, one could argue that they’ve got their pick of the litter.

Because of this, BankRate.com offers all you sellers some tips on moving that real estate. It should come as no secret that this one is becoming more common, and almost expected as buyers get more and more picky:

• Closing costs: What buyer wouldn’t welcome some help with those teeth-gritting closing costs (legal, title, filing fees, etc.) that, according to a Freddy Mac estimate, typically run between 2 percent to 7 percent of the loan amount?

Do read the rest, but that one is far and away a buyer favorite incentive.

Tags: selling real estate, selling my home, buyer incentives, real estate incentives, selling your home, real estate for sale, selling homes, realtor incentives, buyer’s market, homes for sale, FSBO

Buyer’s Market = Time To Buy That Vacation Home? Forbes.com Tells You Where to Buy.

There are more existing homes sitting on the market than ever, and with home prices likely to dip significantly, it may be just the type of buyers market you’ve been waiting for, before you seriously considered vacation home shopping.

I’ll let Forbes.com fill you in on all the technicals, as they’ve done the leg work on determining the Best Place To Buy A Vacation Home.  If you find statistics and appreciation values boring, HouseHunting 101 links you directly to the lists of the best places to buy vacation homes in each region of the country, in the Forbes.com famous “In Pictures” sections.

Of course if you aren’t filthy rich, that information may not serve as much more than entertainment.  However, a blogger at Move.com noticed a link buried in the middle of the Forbes.com piece that points to something more useful to the rest of us:  In Pictures: 10 Undervalued Vacation-Home Spots.

If you’ve got the resources and the credit, there may never be a better time than now to buy that vacation home you’ve always wanted.

Tags: buyers’ market, second home, buy real estate, buyer’s market, buy vacation home, home prices, vacation homes, vacation property, cheap real estate, lower home prices, vacation real estate

July New Home Sales Rise as Real Estate Market Continues to be a Mixed Bag

The media would often have us believe that the current mortgage crisis has us on the verge of some massive economic collapse, yet we continue to see strength in the economy and surprising numbers in certain sectors of the real estate market.

The mortgage situation isn’t something to ignore, but we heard the cries of “real estate bubble about to burst!” while in reality it put up record numbers. We still hear those cries today, but it’s tough to take the alarmism seriously given the history. All we’ve seen thus far is a relatively moderate slowdown - a deflation rather than a pop - and it shouldn’t come as a surprise. Shouldn’t anything putting up record numbers year after year eventually slow down?

Most of the problems we’re experiencing are related to mortgage loans taken by people who couldn’t afford to pay them. This isn’t to say they can’t impact us, but it’s important to put the current problem in context.

All that said, the real estate picture continues to be a mixed bag. Every month or so the analysts are “shocked” by positive numbers put up in the housing sector. They certainly don’t put the legitimate concerns to bed, but they do deal a blow to the chicken littles out there.

Today we learn that “new-home sales” rose a significant amount in July. Again, it’s not the rosiest all around picture, but it certainly should calm the nerves of folks who continue to brace for the worst… as they’ve been told to do for years:

Sales of new homes perked up, while factory orders took off in July, raising hopes that the economy can safely weather financial turmoil that has shaken Wall Street.

The Commerce Department reported Friday that new-home sales rose 2.8 percent in July, after falling 4 percent in June. The increase in July lifted sales to a seasonally adjusted annual rate of 870,000 units. A second report showed that orders to factories for big-ticket goods jumped 5.9 percent in July, the most in 10 months.

Of course, the surge was localized:

By region of the country, the improvement in sales in July reflected gains in the West and the South, where sales went up by 22.4 percent and 0.6 percent respectively. Sales, however, tumbled 24.3 percent in the Northeast and were down 0.9 percent in the Midwest.

And again, it’s not all good news:

Even with the overall increase in home sales for July, sales are down a deep 10.2 percent from a year ago, underscoring the toll of the housing slump.

But it’s important to keep in mind that no bubble has been “popped”, and we continue a slowdown that has (so far) been pretty manageable. Before the chicken littles get you too spooked over the mortgage crisis’ implications, consider this: Who would have thought we’d not survive steady $3 per gallon gas prices, but have a booming economy in the face of it?

Tags: real estate market, housing, house sale, new real estate sales, real estate slowdown, new real estate, new home sales, home sales, home buyers, real estate sale, home buying

Attention First Time Home Buyers - Choose A Realtor Wisely

Veteran Nashville real estate broker Pam Rumley has written an excellent article on what to look for in a Realtor, and I highly recommend first time home buyers or otherwise inexperienced home buyers give it a read, as choosing a Realtor is one of the most important decisions a person makes and it’s easy to overlook many of the considerations Pam talks about. Even experienced home buyers could benefit from Pam’s advice, because many of her points are things you wouldn’t necessarily think to consider before settling on a Realtor.

Realtors - How to Find the Right One for You
By Pam Rumley

Why is it important to find the right Realtor? Because this person is going to be representing you in one of the most important transactions in your lifetime. Unless you have a huge portfolio, a home purchase will involve more money than you normally deal with. Treat this transaction with the consideration it deserves and don’t leave anything to chance!

It’s critical that you take the time to interview several different agents before making a choice. The worst thing you can possibly do is to find a home that you like…and then call the Realtor who has their name and number on the yard sign! In the first place, this Realtor is representing the seller of that property…and you should have your own representation. Secondly, you don’t know this agent’s personality or work ethic. You don’t know the scope of services they offer…or their background.

Before you start looking for a home, it’s vital that you talk to different agents until you find one that is a good match for your personality. Find answers to these questions:

• What services do they offer to homebuyers? Do they offer total representation, or has their broker “designated” them to work with you? Will they be available to “preview” homes for you in case you can’t be there?
• What is their experience level? The search for your new home is a journey, sometimes encountering problems that you don’t anticipate. An experienced agent has likely run across more issues than an inexperienced agent…and can head-off many problems before they take root and grow.
• Does this person smoke (or have a problem with people who do)? This can quickly become a problem because you’re likely to be spending a lot of time with them. And even if they don’t smoke in the car, the smell might bother you. Or vice versa. If you smoke, it might be a bother to them. And don’t forget a problem just as bad…perfume! Many people are allergic to perfume…and can’t stand the odor. These are odd questions, but I see them come up more often than you would think!
• Do you get the feeling that this person is “pushy”? Or just trying to make a sale? If the Realtor seems pushy to you, you might wonder if they are pushy to others. Will they possibly antagonize the sellers or their agents in an attempt to negotiate for you? You will surely want a strong negotiator, but there is a fine line between effective negotiation and causing negative feelings with people involved in the other side of the transaction. When sellers feel pushed or insulted, most negotiation stops right then and there!
• Does this agent have strong political or religious views that you don’t agree with? Often, when spending several hours at a time in the car…these issues can come up and cause a conflict between the agent and their clients. I’ve had more than one person call me and say that they’re looking for a new agent because they are being “preached to”. And, it can be very offensive behavior.

These are just a few ideas to think about. Your relationship with a Realtor is often short-term, but can be very volatile. Even in the best of circumstances, pressures can build because there are so many chances for problems to arise. Finding the home…negotiating with the sellers and their agent…applying for a mortgage…working with a home inspector…termite letters…title searches…the list can go on and on. And problems often arise…and the way they are handled can make all the difference in whether you have a smooth or rough transaction.

You might want to ask the agent how they would handle a particular problem. Get a feel for the way this person answers the question. Are they giving you an open, honest answer or do you sense a “bristling” in their answer.

Establish the way you prefer to communicate. Do you want phone calls? And if so, what time of day is better for you? Or, would you prefer e-mails? Always make sure you understand each other.

Finding someone that you can trust and feel comfortable with does take some effort, but the resulting smooth transaction will be well worth that effort.

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer’s Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time!

For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com
Be sure to check out her “Real Estate University” section, where you will find more informative articles on a variety of topics concerning homebuying.

Pam is easily reached at pam@pamrumley - so be sure to check in with her.

Article Source: http://EzineArticles.com/?expert=Pam_Rumley
http://EzineArticles.com/?Realtors—How-to-Find-the-Right-One-for-You&id=558461

Tags: realtor search, real estate, real estate shopper, find a real estate agent, realtor, real estate agent, find a realtor, find an agent, real estate market, find real estate, real estate search