With the way the current market is, sellers are receiving multiple offers with some of those received being much higher than list price. The competition is fierce, especially if your home is price correctly. With the lack of inventory, properties are selling quickly with many buyers all competing for the same home. That being said, do you know what to do when you receive 3, 4, or even 10 offers on your property? How do you pick the best offer? These simple tips will go a long ways when determining how to handle multiple offers on your home. First off, you want to make sure you select a list price that is in line with the current market activity. You don’t want to list your home too high to where it ends up sitting on the market for too long without general interest or showings. You will ultimately then need to do a price reduction which will cause people to wonder, “What’s wrong with that home?” “Why isn’t it selling?” Doing a comparative market analysis will give you the best idea of what a home should be listed for. From there, if priced correctly, you should expect to receive offers within the first few days of being on the market and in the MLS. The next thing you want to do after selecting a solid list price is to set a timeframe of when buyers need to have their offers in by. It creates an urgency to where a buyer MUST view your home immediately, and submit an offer right away to show their interest. This will help to get the looky-loos out of the way so you can focus on those people who really want to buy your home. Once you receive those multiple offers, the real focus is on the terms and conditions of the offer. What is the price? Is it financed or is it cash? How much down payment are they putting down? How many days is the escrow? Those are the main things that people think of right away, however there are other costly or pertinent items that a seller can negotiate to help them pick the best offer that suits their needs. How long are the contingency timeframes? Are they asking for termite repair? Government Retrofitting? Do they want the appliances? Is there a request for closing costs? Will they give you time to move out? These are all items that are necessary when picking a solid offer that you are going to open escrow with. You can counter all of them, or one of them, but just remember, don’t get too greedy and demanding that you end up scaring a good buyer away.  If you have a solid offer, but you counter it too aggressively because you have other ones on the table as well, that solid offer may disappear, and then you’re left with ones that weren’t so attractive to begin with. Make sure you and your realtor take the time to strategize to ensure you will make the best choice and get the best deal possible.

Buying a home is one of the biggest purchases that a buyer will ever make. Even though this is something that people are taught throughout their entire life, there are still many that forego the inspection because they simply want to save a few hundred dollars up front. Unfortunately, there can be major repercussions when waiving an inspection, some that will end up costing 10K, 20K, even up to 100K or more. 

When viewing a property, even the most experienced and skilled home inspectors are not able to tell what items are of concern just by looking with their own eyes. Without getting under a home, up on the roof, testing all the electrical circuitry, inspecting the plumbing and drainage, running the appliances and HVAC etc, there is no way to tell what the issues truly are unless a professional inspector gets his/her hands dirty and inspects everything from the ground up.

Skipping a home inspection not only poses a problem for the buyer as they won’t know what they’re going to encounter once they take over ownership, but it prevents the buyer from negotiating any repair work needed that would have been encountered during a professional home inspection. The buyer essentially loses the right to make any requests for additional repairs, credits, or reductions that aren’t agreed to at the time during their inspection contingency.

 

Aside from the inspection itself, inspectors can provide an in-depth analysis of the home and can give insight into what the buyer may encounter in the future with that specific property. They can also advise the buyer on certain items to help improve the life and durability of the home by recommending other repairs or improvements before they’re needed. 

For example, there may be things a buyer can do to extend the life of their water heater, their HVAC, or their roof, and the inspector can help provide that invaluable information that will end up saving $1000s down the road.

To sum it up, it’s not worth the risk to waive a professional property inspection. Whether it’s $300 for a condo or $1800 for a 5-plex, it’s better to pay a little bit up front for an inspection rather than pass on it and buy something that will end up breaking the bank after. Having a professional property inspection can give you peace of mind and security when buying property so that you know exactly what you’re getting into.

 

 

When buying a new home, don’t forget that you’re also buying the neighborhood.. 

So, how do you choose the right neighborhood?
1) What are the best and worst qualities of the neighborhood and the surrounding areas? Do the area’s values increase a lot over time? Are you close enough to schools, shopping, or work? Do you feel comfortable walking around the neighborhood at night? Can you envision yourself living there in the long term future?
2) What kind of vibe are you looking for? Do you want to be in the middle of the hustle and bustle? Do you want peace and quiet so you rarely hear a car drive by? Are you looking for dog parks? Nightlife? All of these play a major factor into what kind of area you’re planning to buy in. 
3) What is your proximity to work? Play? School? Friends and family? Life? This is a huge factor that many people must consider because your home’s distance to all of your activities is a big indicator for quality of life.

4) Are you looking for easibility and low maintenance? Or are you a handy individual that prefers to do your own yard work and projects around the property? This is a big decision on whether HOA condominium style living is right for you, or if you prefer single family detached housing where you are the one in charge of everything within your property’s boundaries. Do you want to take care of putting a new roof on, landscaping, and other costly items, or would you rather an HOA handles those projects?
5) Transportation accessibility is crucial. With the way the paradigm shifts towards public transit and low emissions vehicles, public transit when commuting is a main indicator in major cities. Trolleys, city buses, commuter trains, etc are all important factors that play a part in picking your new neighborhood location.
6) In Laws. As the baby boomers generation continues to age, more people are living with other family members, young and old. This is something to consider when you’re looking at multi-unit, multi family housing. Certain areas in cities are zoned accordingly to help fit more homes and people in smaller sized areas, therefore increasing the population density. This results in more people, more cars, and more noise, so if you’re looking for something quiet with a bit more space, this is not the realm you’re interested in.If you have a large extended family who you will be living with, this may be something right up your alley.