I found this photo on the internet, titled “Millennials Finally Buy a House!” It’s a funny picture of proud owners of a cardboard house….it’s almost funny, if it wasn’t so true! It’s a spoof on the current marketplace. The point being is it takes a lot of money to buy a house in today’s market. What you want sometimes doesn’t translate into what you can afford! The current “hot” market in residential real estate has buyers competing over very low housing inventory and pushing prices up over the asking price. (Supply and Demand) Its a great market for sellers. Not so great for buyers. Especially if you are not prepared to present the best offer. How can first-time home buyers navigate this frenzied marketplace? Be prepared!
Follow these simple steps to homeownership:
Be credit ready BEFORE shopping-choose the right mortgage lender to help you get there (Guaranteed Rate Affinity).
Choose a Realtor with local knowledge and experience- Call me!
Forget the new car and SAVE, SAVE, SAVE for a down payment.
Things That Could Help You Win a Bidding War on a Home
With a limited number of homes for sale today and so many buyers looking to make a purchase before mortgage rates rise further, bidding wars are common. According to the latest report from the National Association of Realtors (NAR), nationwide, homes are getting an average of 4.8 offers per sale. Here’s a look at how that breaks down state-by-state (see map below):
The same report from NAR shows the average buyer made two offers before getting their third offer accepted. In this type of competitive housing market, it’s important to know what levers you can pull to help you beat the competition. While a real estate professional is your ultimate guide to presenting a strong offer, here are a few things you could consider.
Offering over Asking Price
When you think of sweetening the deal for sellers, the first thought you likely have is around the price of the home. In today’s housing market, it’s true more homes are selling for over asking price because there are more buyers than there are homes for sale. You just want to make sure your offer is still within your budget and realistic for the market value in your area – that’s where a local real estate professional can help you through the process. Bankratesays:
“Simply put, being willing to pay more money than other buyers is one of the best ways to get your offer accepted. You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”
Putting Down a Bigger Earnest Money Deposit
You could also consider putting down a larger deposit up front. An earnest money deposit is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase. NerdWalletexplains how it works:
“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location. A higher earnest money deposit may catch a seller’s attention in a hot housing market.”
That’s because it shows the seller you’re seriously interested in their house and have already set aside money that you’re ready to put toward the purchase. Talk to a professional to see if this is something you can do in your area.
Making a Higher Down Payment
Another option is increasing how much of a down payment you’re going to make. The benefit of a higher down payment is you won’t have to finance as much. This helps the seller feel like there’s less risk of the deal or the financing falling through. And if other buyers put less down, it could be what helps your offer stand out from the crowd.
Non-Financial Options To Make a Strong Offer
Realtor.compoints out that while increasing these financial portions of the deal can help, they’re not your only options:
“. . . Price is not the only factor sellers weigh when they look at offers. The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”
When it’s time to make an offer, partner with a trusted professional. They have insight into what sellers are looking for in your local market and can give you expert advice on what levers you may or may not want to pull when it’s time to write an offer.
From a non-financial perspective, this can include things like flexible move-in dates or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). For example, you could make an offer that’s not contingent on the sale of your current home. Just remember, there are certain contingencies you don’t want to forego, like your home inspection. Ultimately, the options you have can vary state-to-state, so it’s best to lean on an expert real estate professional for guidance.
Bottom Line
In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.
f you’re in the market to buy a home this season, stick with it. Homebuyers face challenges in any market, and today’s is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a recent survey from Bankrate shows homeownership is so powerful that:
“Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.”
That means the results – owning a home and the benefits that come with it – outweigh the effort needed to achieve their goal. If you’re a homebuyer, let that provide you with the confidence to know the work you’re putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
“Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.”
Your equity is a powerful tool you can leverage in a number of ways. And with recent home price appreciation, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a great investment and a top indicator of financial well-being. As the survey from Bankrate mentioned above shows:
“. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .”
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, homeownership is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, non-financial aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, says:
“From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.”
Even if you face challenges in today’s market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey. Let’s connect to discuss everything homeownership has to offer.
f you’re in the market to buy a home this season, stick with it. Homebuyers face challenges in any market, and today’s is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a recent survey from Bankrate shows homeownership is so powerful that:
“Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.”
That means the results – owning a home and the benefits that come with it – outweigh the effort needed to achieve their goal. If you’re a homebuyer, let that provide you with the confidence to know the work you’re putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
“Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.”
Your equity is a powerful tool you can leverage in a number of ways. And with recent home price appreciation, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a great investment and a top indicator of financial well-being. As the survey from Bankrate mentioned above shows:
“. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .”
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, homeownership is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, non-financial aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, says:
“From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.”
Even if you face challenges in today’s market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey. Let’s connect to discuss everything homeownership has to offer.
I love living in the Valley… the northern Sonoma Valley, that is, the “Wine Country” near Kenwood and Glen Ellen. This area is known for many famous wineries; St Francis Winery, Landmark, St Jean and Kenwood Winery, just to name a few. And towering over this end of the valley are the majestic Hood and Sugarloaf mountains on the east and Trione-Annadel State Park on the west.. this has been my home for more than 35 years. I love where I live. It’s a country setting, close to nature, yet close to town. I hike the park trails, and have a garden. I enjoy the colorful change of seasons of the vineyards from bright green bud-break in early spring to the golden leaves of harvest in late fall. Sonoma Valley is “where the roots run deep” they say.
I’m lucky to have found my country home. Proud to own a “piece of the pie”. In California, real estate has consistently appreciated over the years. If you had bought a home in the 1980’s (as I did) your home or land has certainly increased in value. Now, is the time to jump in and get a “piece of the pie” for yourself! Why not explore a country property? Land is not getting any cheaper. What did Mark Twain say?.. “Buy land. They’re not making it anymore!” And that’s the truth.
Get your’s today. I can help you find your Sonoma Valley home and you too, can love where you live!
I love living in the Valley… the northern Sonoma Valley, that is, the “Wine Country” near Kenwood and Glen Ellen. This area is known for many famous wineries; St Francis Winery, Landmark, St Jean and Kenwood Winery, just to name a few. And towering over this end of the valley are the majestic Hood and Sugarloaf mountains on the east and Trione-Annadel State Park on the west.. this has been my home for more than 35 years. I love where I live. It’s a country setting, close to nature, yet close to town. I hike the park trails, and have a garden. I enjoy the colorful change of seasons of the vineyards from bright green bud-break in early spring to the golden leaves of harvest in late fall. Sonoma Valley is “where the roots run deep” they say.
I’m lucky to have found my country home. Proud to own a “piece of the pie”. In California, real estate has consistently appreciated over the years. If you had bought a home in the 1980’s (as I did) your home or land has certainly increased in value. Now, is the time to jump in and get a “piece of the pie” for yourself! Why not explore a country property? Land is not getting any cheaper. What did Mark Twain say?.. “Buy land. They’re not making it anymore!” And that’s the truth.
Get your’s today. I can help you find your Sonoma Valley home and you too, can love where you live!
Have you been thinking of selling your home? Now is the season! Did you know most homes are listed and sold between the months of May to July before vacations and holidays interfere with time of looking buyers. The preparing a home for sale can be an overwhelming process with many factors to consider. The best way to begin is to have your Realtor of choice assess the home for marketability What does that mean?! First have a CMA (comparative market analysis) to find the value of your home in your current market and neighborhood. Then you can decide the costs of improvements, if any need to be factored into the sale. The next step is to have your Realtor make a list of things that need improvement that will help make your home stand out from the rest. Top of the list? A first impression! Do you know it takes a buyer when viewing your home through pictures on the interest or when entering your home only 10 seconds to decide if they like your home? Making that first impression is key! So, here is a DIY list to start making your home more attractive to buyers:
DO THESE PRE-SALE TIPS:
Curbside appeal- clean and tidy yard? – does landscape need trimming, new lawn, remove debris?
Clean Fresh Paint- does house need new paint, a power wash, have clean gutters, clean roof ?
Inviting Entry- add flowers, new door mats, painted front door, need new hardware, entry lights ?
The biggest BEFORE and AFTER transformations are in the kitchen! Make it inviting. Declutter, declutter, declutter! Check out the above kitchen transformation clients, Mark and Janis did before putting their home at 195 Richards Blvd, Sonoma on the market. What a difference new paint can make! This translates into better photos published to the internet and better appeal brings more buyers.
Contact me for more information about how to prepare your home for sale!
Have you been thinking of selling your home? Now is the season! Did you know most homes are listed and sold between the months of May to July before vacations and holidays interfere with time of looking buyers. The preparing a home for sale can be an overwhelming process with many factors to consider. The best way to begin is to have your Realtor of choice assess the home for marketability What does that mean?! First have a CMA (comparative market analysis) to find the value of your home in your current market and neighborhood. Then you can decide the costs of improvements, if any need to be factored into the sale. The next step is to have your Realtor make a list of things that need improvement that will help make your home stand out from the rest. Top of the list? A first impression! Do you know it takes a buyer when viewing your home through pictures on the interest or when entering your home only 10 seconds to decide if they like your home? Making that first impression is key! So, here is a DIY list to start making your home more attractive to buyers:
DO THESE PRE-SALE TIPS:
Curbside appeal- clean and tidy yard? – does landscape need trimming, new lawn, remove debris?
Clean Fresh Paint- does house need new paint, a power wash, have clean gutters, clean roof ?
Inviting Entry- add flowers, new door mats, painted front door, need new hardware, entry lights ?
The biggest BEFORE and AFTER transformations are in the kitchen! Make it inviting. Declutter, declutter, declutter! Check out the above kitchen transformation clients, Mark and Janis did before putting their home at 195 Richards Blvd, Sonoma on the market. What a difference new paint can make! This translates into better photos published to the internet and better appeal brings more buyers.
Contact me for more information about how to prepare your home for sale!
The road home. We all want a place to call home, to grow roots. I look at this road I’ve followed home for over 35 years and I’m still grateful for my home in the Wine Country of Sonoma, CA. Looking back, while shopping for my first home purchase, before I was in real estate, I stopped by an open house on a whim. I struck up a conversation with the attending realtor, listed my “wishlist” for a home: must have 2 bedrooms, have a country setting, but be close to town for amenities. I said “if you know of a place” I’m ready to buy!” The agent responded with, “Yes, I have clients who are thinking of selling. They have a home that matches your requirements. Let me ask them? “…this was the beginning of my journey down the road of home ownership. The rest is history and memories.
The point of this story is to illustrate the incredible value of local knowledge the agent who was able to put together an off market deal to satisfy both the buyer’s and seller’s real estate needs. I’m of similar passion when it comes to knowing the local market in Sonoma County…and like the rest of California, the real estate is experiencing a fast-paced market at this writing (3/10/22) with low inventory causing many homes to receive multiple offers and selling over the asking price! It takes a local realtor to know what’s for sale on and off the market. Thinking of selling? This may be the best time to sell. And who knows? There is probably an anxious buyer in the waiting. Its time to take the road to your next home.
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