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HOW TO GET THE EDGE ON MULTIPLE OFFERS

 

DON’TS

 

*Don’t say anything negative about the home in the presence of the seller or the seller’s agent.

*Don’t load down the offer with contingencies.

*Don’t offer to purchase personal property unless it was advertised as part of the listing.

*Don’t mention remodeling or tearing down the house in the presence of the seller or agent.

*Don’t delay in responding to a counteroffer or requests for information.

*Don’t make an offer below the asking price if the home is fairly priced.

 

DOS

*Find a good agent who is honest and has integrity.

*Be immediately reachable from the time the offer is made, through acceptance.

*Sell a current home first.

*If comfortable with the seller’s counteroffer, sign it immediately and return it without any changes.

*Agree to the seller’s title and escrow company choices.

*Write a letter to the seller expressing why you are right for this house.

*Offer a deposit above the standard 3%.

*Have the broker submit the offer in person if possible.

*Proved a pre-qualification letter or re-approval letter from a reputable lending institution.

*Provide evidence of job history and proof of funds so that your seller will feel confident of your ability to purchase the property.

*Consider shortening the standard contingencies in the residential purchase agreement.

 

 

HOME  BUYERS HAVE CLOUT NOW

Home buyers have more clout now than they've had for years. So, they are more discerning, and focus only on the best houses at the best prices. If the seller won't negotiate a satisfactory deal, buyers would rather walk away than overpay.

The incidence of failed transactions appears to be rising. Last year, buyers couldn't buy fast enough. Many paid over asking price, overlooked property defects and bought "as is."

Today's buyers are cautious going into a transaction and less likely to accept full responsibility for correcting defects found on inspections. When a resolution can't be reached on an inspection issue and the buyer decides to search for a better deal, the seller is left with two options: He can either put his property back on the market, or he can wait for a friendlier market. 

The second approach is risky if you want or need to sell in the near future. Although the current market won't last forever, it may be some time before we see a market that's better for sellers than it is today.

HOME SELLER TIP: Before letting a deal fall apart, sellers should seriously consider their chances of negotiating a better deal with another buyer. Depending on state disclosure requirements, a seller might be required to disclose the inspection issues to future buyers.

For example, in California , sellers are required to disclose all material facts to prospective buyers. A material fact is one that affects a buyer's decision to buy or the price he'd be willing to pay.

Disclosing newly found defects to a subsequent buyer could affect how much he'd pay for the property. Also, remarketing a property is a hassle, it takes time and it might be no more lucrative than the first deal. In fact, it could be worse.

Putting a property back on the market in a rising inventory environment can be challenging. Rekindling enthusiasm is difficult because most buyers focus their attentions on the new listings coming on the market, not than those that are back on the market.

A listing comes back on the market because something went wrong. If there are plenty of new listings to choose from, there's less incentive to narrow in on a listing that someone else didn't buy, even the listing is back on the market for a reason other than the condition of the property. For instance, a certain number of transactions fail because the buyers were unable to secure financing.

Last year, buyers were less inclined to withdraw from a purchase over inspection issues. The listing inventory was so limited that they were afraid it would be difficult to find something else to buy. According to the National Association of Realtors, inventories nationally now represent a 6-month supply at the current sales pace. This puts inventory levels in balance for the first time in years. By comparison, in April 2005, inventories in California represented a little over a 2-month supply; it gave sellers a decided advantage over buyers.

The primary reason there are more listings back on the market is that some sellers are reluctant to accept that the market has changed. It has often been said that when the market changes, sellers are the last to know. This is understandable. No one likes to hear that a valuable asset is worth less than anticipated.

There are sellers who realize weeks after they let a deal fall apart that they made a mistake. If you find yourself in this situation, consider a price reduction to send a message to prospective buyers that you've changed your stance.

THE CLOSING: Sellers can keep further negotiations over inspection issues to a minimum by providing presale inspections reports and disclosure statements to buyers before they make an offer.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle  

 

 

THE 12 STEPS OF BUYING A HOME:  BY TERRY SMULEN  310 390-9041

 

1.  FIND OUT HOW MUCH OF A HOME YOU CAN AFFORD:  Go to a lender and get your credit checked.  Discuss all your financial history with the lender and let him or her help you work out a deal.  Get a letter of approval from the lender before you make an offer on a home. Look into specialized loans and grants for first time buyers.

 

2. CREATE A WISH LIST FOR YOURSELF.  WHAT KIND OF HOME DO YOU WANT?

 

3.  LOOK FOR A GOOD AGENT.

 

4.  SHOP AROUND FOR YOURSELF.  Newspapers, realtor.com, open-houses,  look around your own

 neighborhood and see what’s listed.

 

5.  MAKE AN OFFER.  The Best offer you can.  Seller’s markets are different than buyer’s

 markets.  Decide how long your escrow will be.

 

6.  THE COUNTER OFFER: The seller wants you to change your offer.  You can counter offer

 the seller or accept his/her terms and if you do  you are in escrow!

 

7.  INSPECTION.  What kind of shape is this house really in?  You’ll spend $250-$500.00 to

 find out.

 

8. GET THE PROPERTY APPRAISED.  Your lender will not lend you money unless the house is worth

 what you offer and you need a professional appraiser for that.

 

9.  HOME OWNERS INSURANCE…shop around it’s required by the lender.

 

10.  WHAT IS ESCROW? It is the time from the accepted offer to the close of escrow, when

 you are allowed to move into the house. An Escrow Company or neutral party will make sure

 everything is sign sealed and delivered to all the parties involved…the Title company will make  sure the title is clear.  The loan company will make sure the loan comes through in time.

 

11.  THE FINAL WALKTHROUGH.  After the previous owner clears out but before the end of escrow the buyer will have a last check of the house and property and make sure everything

was done to his/her satisfaction.

 

12.   CONGRATULATIONS YOU ARE A HOMEOWNER.  WHEW!!!!