Sell Before Buying??
I was reading the Saturday morning real estate section from our local paper and the lead article was about move-up or scale-down buyers. The two agents interviewed both felt that they should sell first before they made an offer on another house. The problem I had with this article was not the position the agents had but the reasons they gave for doing so.
There are many areas in our marketplace where the purchase offer with a contingency of selling a house will not make any difference and will not affect the selling price that is negotiated. This is because the sellers are so glad to see an offer that they will readily accept one even with a contingency.
Unless a neighborhood has a shortage of inventory and is in high demand, most sellers, if properly advised by their agents, will accept a contingent offer. In our area, the listing does not have to be changed to reflect a contingent offer and no one knows it has an offer on it except the seller, that buyer and the agents.
This way, the odds are in the seller’s favor, because now there are two houses on the market and if either one of them gets an offer, the seller is good.
So why wouldn’t a buyer make a contingent offer? Yes, there is the possibility that another offer could come into the picture and they would have to do a bridge loan to keep their offer or they would lose it. But generally, if they price their house properly, de-clutter it, and then stage it, the house will sell fairly quickly. To wait until you have sold your home, to then start looking, you may not find something suitable and you will have to move twice, first into temporary rental housing and then into your next house. This would far out weigh the cost of carrying two mortgages for a few months.
Memorial Day 2009
As we celebrate Memorial Day, and honor those who have served our nation, both in the past and present, we would like to especially remember those who have made the ultimate sacrifice.
We thank them for the work that they do, and for leaving their families behind to keep us all safe. We know in doing so, they have put themselves in harm’s way for us. And for this, we are eternally grateful!
So many times, the military is talked about negatively, but without them, where would we be? Our nation depends on them for our security, our freedom, our way of life! Thank you each and everyone who has served and is serving!
God Bless America!
The Upside & Downside of Home Inspections
I was sitting in a Board of Directors meeting this past week reviewing a new addendum form to approve for our Association to use for the inspection contingency in a purchase and sale offer. There was considerable discussion as to whether the buyer should have to indicate who they were selecting to do the inspection, whether it was Uncle Harry, a licensed home inspector, an engineer, a builder, etc. After all the discussion, the final decision by the Directors was the buyer did not have to disclose who they were choosing to do the home inspection for them on the addendum form.
The reason there was so much discussion around this rather simple item, was because of the experience all of us have had the past several years with home inspections. There are the home inspections that the buyer has their Uncle Harry do for them and he either talks about the selling price and everything else except the house or he finds fault with everything in the house.
Then we have the inspections done by a builder that compares everything to a new home and nothing is to code in the older home.
It seems that features that are characteristic of an older home are overlooked during the initial visit or even second visit, but with the home inspector, suddenly they aren’t acceptable. And even though the buyer may have negotiated off the sales price to address them after he buys the house, they ping the seller again with the list of repairs and ask for a credit at closing from the home inspection.
Inspections can and are an escape route for a buyer, plain and simple. If they want out of the deal after signing, the home inspection provides the door to escape. That’s the way it is and there is no changing it!
Home inspections are part of the process now and they are here to stay with the upside and downside they bring to the home buying process!
the Capitol
We also had the Secretary of HUD, Shaun Donovan, speak to our Realtor delegation and the outcome was a modification that is going to be a tremendous benefit to the first-time home buyers. It is this: HUD has approved the amount of the Tax Credit to be able to be used for the downpayment, through a bridge loan by the bank offering the loan to the home buyer.
This means the home buyers only need good credit and employment and very little money to buy though the FHA mortgage program. This should definitely bring some extra home buyers into the picture who earlier were short on the downpayment.
We all have heard of the $8,000 Tax Credit that the Administration signed to law to help stimulate the real estate industry in an effort to get the economy going. Over the past month, it has definitely helped to get many first-time home buyers off the fence and out buying houses, but it could be better.
Just received word that the new change is temporarily on hold until some details with the advance for the downpayment are figured out. Click here to go to the Mortgagee letters.
Next week I will be flying to Washington, DC for the National Association of Realtors Midyear meetings. This will be my 7th consecutive year going to these meetings, the first five years, as the New Your State CRS President or officer and the last two years, as an officer with the Greater Rochester Association of Realtors.
My earlier blog referenced the increased focus one gets prior to going to a convention or event and the increase in sales activity that happens. Each year as I approach these meetings, my business picks up and it gets really crazy, but I go because I have responsibilities and committee work, not to mention the airline tickets and reservations at the hotel that have been paid for.
So what is it? Fun or Learning?
It is actually both! Each year as May rolls around, I get excited thinking about seeing my Realtor friends across the country in DC and spending some time socializing with them. But it’s not all fun, to spend time with them is actually networking and building a referral base for future business.
Then of course, there are the meetings and breakout sessions that are instructional and educational! Some of the nations top Realtors and instructors participate in forums and roundtables to better prepare us for the changes in the marketplace or nuances in the business, as well as challenge us to become better professionals at what we do!
Maybe you can see why the NAR Midyear meetings are on my calendar every year and that they are both Fun and Learning!
