5 Ways to Write a Winning Offer in Today’s Real Estate Market
5 Ways to Write a Winning Offer in Today’s Real Estate Market Our nation is in the midst of a shifting real estate market. But even as the buying frenzy begins to slow, many properties are still receiving multiple offers. So what’s the best way to compete as a buyer–especially if you’re wary about overpaying? While a high offer price gets attention, most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition. We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm. 1. DEMONSTRATE SOLID FINANCING Sellers favour offers with a high probability of closing. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer. It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. If you’re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business. 2. PUT DOWN A SIZEABLE DEPOSIT Buyers can show sellers that they have “skin in the game” by putting down a large deposit. The deposit is typically held in a trust account by the seller’s brokerage or lawyer. If the purchase goes through, it is applied to the buyer’s down payment. However, if the sale falls through, the buyer could lose some or all of their deposit, depending on the contract terms. We can help you determine an appropriate deposit to offer based on your circumstances. 3. ASK FOR FEW (OR NO) CONDITIONS Conditions enable a buyer to cancel the purchase agreement if certain requirements are not met. Buyers in a competitive market often volunteer to waive certain conditions. However, it’s very important to recognize the risks of doing so. For example, a buyer who chooses to waive an inspection condition may find out too late that the home requires extensive renovations. If you back out of a purchase without the protection of a condition, you could lose your deposit.We can help you assess the risks and benefits involved. 4. OFFER A FLEXIBLE CLOSING DATE When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may appreciate an option to advance or postpone their closing date. We can reach out to the listing agent to find out the seller’s preferred terms and then collaborate with you to write a compelling offer that works for both parties. 5. WORK WITH A SKILLED BUYER'S AGENT In today’s market, one of the greatest advantages you can give yourself is to work with a skilled real estate professional. We will help you submit an appealing offer without taking on too much risk. Once your offer is accepted, we’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way. HELPING YOU GET TO THE RIGHT OFFER In many cases, a competitive offer doesn’t need to be condition-free or significantly above asking price. But if you’re buying a home in today’s market, it’s important to consider what you can do to sweeten the deal. And if you’re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.
Seller’s Checklist: A Timeline to Prep Your Home for Sale
Seller’s Checklist:A Timeline to Prep Your Home for Sale Even a strong seller’s market doesn’t mean your home is guaranteed to easily sell. If you want to maximize your sale price, it’s still important to prepare your home before putting it on the market. Start by connecting with a real estate agent as soon as possible. Having the eyes and ears of an insightful real estate professional on your side can help you boost your home’s appeal to buyers. What’s more, beginning the preparation process early allows you to tackle repairs and upgrades that can increase your property’s value. Use this checklist to figure out what other tasks you should complete in the months leading up to listing your home. While everyone’s situation is unique, these guidelines will help you make sure you’re ready to sell when the time is right. Of course, you can always call us if you’re not sure where to start or what to tackle first. We can help customize a plan that works for you. AS SOON AS YOU THINK OF SELLING Whether you have months or weeks to plan your move, these first steps will help you get ahead. Contact Your Real Estate Agent: We go the extra mile when it comes to servicing our clients, and that includes a series of complimentary, pre-listing consultations to help you prepare your home for the market. Address Major Issues and Upgrades: Give yourself ample time to address any significant structural, systems, or cosmetic issues that could limit your home’s sales potential. We can guide you on the renovations that are worth your time and investment. 1 MONTH (OR MORE) BEFORE YOU LIST Turn your attention to the minor updates that play a major role in how buyers perceive your home. Make Minor Repairs: Tackle the ones you can and be sure to call a professional for any repairs you’re not comfortable doing yourself. We can refer you to local service providers who can help. Refresh Your Design: A recent survey found that staged homes often sell faster and for more than their list price.1 We can connect you with a local stager or offer our suggestions if you prefer the DIY route. Declutter and Depersonalize: Start by donating or discarding possessions you no longer want or need. Then pack up any seasonal items, family photos, and personal collections you can live without for the next few weeks. Bonus: This will give you a head start on packing for your move! 1 WEEK BEFORE YOU GO TO MARKET Now it’s time to focus on the small details that will really make your home shine. Check-In With Your Agent: We’ll connect again to make sure we’re aligned on the listing price, marketing plan, and any remaining prep. Tidy Your Exterior: Make sure your lawn is freshly mowed, hedges are trimmed, and flower beds are weeded. If you haven’t already, empty gutters and wash siding and windows. Deep Clean Your Interior: Your house should be deep cleaned before hitting the market, including steam cleaning for all carpets. Also take some time to tidy up the inside of closets, pantries, and cabinets. DAY OF SHOWING Take care of these finishing touches to give buyers the best possible impression. Pre-Showing Prep: Tidy up by vacuuming and sweeping floors, emptying trash cans, and wiping down countertops. Open blinds to let in as much light as possible. Don’t forget to secure prescription medications and items of value in a safe or off-site. Finally, it’s best to have pets out of the house during showings. DON’T WAIT TO PREP YOUR HOME FOR SELLING If you want to get top dollar for your home, don’t put it on the market before it’s ready. The right preparation can make all the difference when it comes to maximizing the offers you get. Call our team if you’re thinking about selling your home, even if you’re not sure when. It’s never too early to seek the guidance of your real estate agent and start preparing your home to sell.
Hedge Against Inflation With These 3 Real Estate Investment Types
Hedge Against Inflation With These 3 Real Estate Investment Types The annual inflation rate in the United States is currently around 7.5%—the highest it has been since 1982. It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend U.S. dollars, inflation impacts you. Economists expect the effects of inflation, like a higher cost of goods, to continue. Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help. WHAT IS INFLATION AND HOW DOES IT IMPACT ME? Inflation is a decline in the value of money that can lead to: Decreased Purchasing Power: As prices rise, your dollar won’t stretch as far as it used to. So you’ll be able to purchase fewer goods and services with a limited budget. Increased Borrowing Costs: In an effort to curb inflation, the Federal Reserve is expected to raise the federal funds rate. Prepare to pay a higher interest rate on new mortgages, car loans, and variable-rate credit cards. Lower Standard of Living: Wage growth tends to lag behind price increases.Therefore, you may have to make lifestyle changes and prioritize essentials. Eroded Savings: As of February, the national average interest rate for a savings account is 0.06%, not nearly enough to keep up with inflation. And economists don’t expect that rate to go much higher. REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION So where is a good place to invest your money to protect (hedge) against the impacts of inflation? Here are a few investment vehicles financial advisors typically recommend: Stocks: Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months. Commodities: In theory, the price of commodities should climb alongside inflation. But the classic choice–gold–hasn’t risen consistently during periods of inflation since the 1970s. Inflation-Indexed Bonds: Treasury inflation-protected securities, or TIPS, are considered low risk, but the returns they offer are generally low, as well. Real Estate: Real estate prices often rise with (or faster than) inflation.That’s one of the reasons demand for real estate is soaring right now. We believe real estate is the best hedge against inflation. Home prices rose nearly 17% from 2020 to 2021, 10% ahead of the inflation that occurred in the same timeframe. Plus, certain types of real estate investments can help you generate a stream of passive income. TYPES OF REAL ESTATE INVESTMENTS There are three basic investment types that we recommend for beginner and intermediate investors. We can help you determine which options are best for you. Primary Residence: If you own your home, you’re already ahead. As inflation rises, the value of your home is likely to go up. At the same time, you’ve locked in a set mortgage payment, so you’ll be immune to rising rental costs. If you don’t currently own a home, our team can help you find a property that fits your needs and budget. Long-Term (Traditional) Rentals: A long-term rental is a dwelling that’s leased out for an extended period. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality can help provide stable returns in uncertain times. A well-chosen property should pay for itself through rental income, and you’ll benefit from appreciation as it increases in value. Short-Term (Vacation) Rentals: Short-term rentals function more like hotels in that they offer temporary accommodations. A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of more hands-on management. Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself! Contact us today if you’re interested in exploring options in either rental market. Mortgage rates are expected to rise, so you’ll want to act fast to maximize your investment return. WE’RE INVESTED IN HELPING YOU Inflation is a fact of life in the U.S. economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact us. Our team can help you find a primary residence or investment property that meets your financial goals. The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.
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