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6 Surprising Benefits Of Buying Or Selling Your Home In The Fall

Seeing fewer for-sale signs now that summer is over? That can be great news for buyers who are looking to score a new home and buyers who want to get rid of their place and buy a new one. If you think you missed the boat on making your move this year, we’re here to tell you why buying and selling in the fall can work for you.

Less competition

Yes, there may be fewer homes on the market, but there are also fewer buyers out there competing for the same home you want. That gives buyers an important edge. “Families on a mission to move into a new home before school starts are out of the picture,” said Forbes. “Competition for houses drops off in the fall, a time many people consider to be off-season in real estate. But there are still homes for sale – and in some cases, there’s just as much inventory as there was during the spring and summer.”

The benefit to sellers is that those buyers who are out there tend to be more serious, which means your REALTOR® can key in on the real buyers without having to sift through the riffraff.

Tax breaks

If you’re a buyer who closes escrow before December 31, and you may get a nice write off on your taxes. “Property tax and mortgage interest are both deductions you can take for your whole year’s worth of income, even if you closed on your home in December,” David Hryck, a New York, NY tax adviser, lawyer, and personal finance expert told Realtor.com. “Any payments that are made prior to the closing of the loan are tax-deductible. This can make a serious difference in the amount you owe the government at the end of the year.”

There are also potential tax breaks for home sellers. “You can include all sorts of selling expenses in the cost basis of your house,” said The Balance. “Increasing your adjusted cost basis decreases your capital gain because this is what’s subtracted from the sales price to determine how much of a gain – or loss in some cases – you’ve realized. If you have less of a gain, you’re more likely to fall within the exclusion limit, and if you’re gain isn’t excluded, you’ll pay taxes on less.” And that’s just the beginning. Closing costs and home improvements may also be write offs for sellers. Check out the full list here.

Home for the holidays

Buy or sell early in the fall and you could be nicely situated in your new home in time for the holidays and before winter weather hits. Moving during a calmer time of year also means you may have better access to movers and other necessary resources than during the busier spring and summer seasons.

The right price

Did you list in the spring or summer with an exorbitant number that you thought you’d have no trouble getting because it was a hot market? That’s pretty common these days. Whether you’ve had a revelation about the price you should be asking or have made updates to your home to justify a higher price, you’re probably in better shape to get your (realistic) asking price in the fall. If you’re a seller and you establish a smart pricing strategy, you could find your home standing out in the crowd and selling while others sit on the market under a blanket of snow.

Buyers also may have a better time getting a home that’s within their budget because when there is less competition for homes, there is less chance of bidding wars and over-asking-price sales.

Fall may be safer for buyers and sellers

Here’s something you may not have thought of. “Did you know that burglars have peak seasons? They do, Sarah Brown, a home safety expert for SafeWise.com, told Forbes. “July and August are prime months for burglaries to take place. Waiting until the fall [to buy] gives you an advantage when learning about a home and the neighborhood. You’ll be settled in your home and can take precautions—like setting up that new alarm system—before the next burglary season rolls around.

For sellers, less competition for your home can be a good thing if it means your home is safer from theft.

Great deals on stuff to fix up your home

Coordinate the timing right, and those items you need to fix up your home for sale in the fall or update and upgrade after a purchase might be priced to your advantage. Check Consumer Reports for a full list of the best times of year to buy everything, and keep in mind holiday and Black Friday sales. You could score some great deals at this time of year.

Position Realty
Office: 480-213-5251

Home Inspectors Are Held To Higher Standards

A California appellate court ruling contains both good news and bad news for home inspectors. The good news is that, in the eyes of the court, home inspectors are in the same category as doctors, attorneys, accountants, and other professionals. The bad news is that being in such a category restricts their ability to limit liability in certain ways.

Armando Moreno and Gloria Contreras purchased a 49-year-old Whittier home in August of 1998. On August 18, Deric Sanchez, doing business as Aaero Spec Quality Home Inspectors, conducted an inspection of the property on their behalf. Moreno accompanied Sanchez during the inspection.

Sanchez’s inspection noted that the heating ducts were “serviceable”, although he did recommend that the buyers contract with a licensed expert to clean out the entire system, including filters.

The preprinted contract used by Aaero Spec contained a clause providing that any lawsuit arising out of the inspection had to be filed within one year from the date of the inspection. The contract noted that, “This time period is shorter than otherwise provided by law.” (Business and Professions Code section 7199 provides a four-year statute of limitations for home inspections.) Moreno, an attorney and licensed real estate broker, signed the contract and initialed the clause shortening the statute of limitations.

Escrow closed on October 8, and the buyers moved in a few weeks thereafter. In December, both began feeling ill. Moreno was ill for one week in December and Contreras was sick for two weeks. Her illness became chronic. Near the end of summer in 1999, a culture revealed she had a bacterial infection.

Subsequent inspections by other companies revealed, “… among other things, an unsealed air return which permitted the unit to draw dust, dirt and rust into the system. It also discovered dirt, dust and debris in the main return which permitted dust and dust mites to be distributed through the system and into the house.”

The buyers, of course, sued the inspector for negligence. Their suit was filed October 19, 1999. The inspector argued that the buyer should not be allowed to sue, because the one-year statute of limitations had run. To this, the buyer responded that the ‘delayed discovery’ rule should apply, meaning that the time period during which a suit is allowed should not begin to run until the alleged negligence has been discovered.

The Orange County Superior Court (held there because the plaintiff is a Los Angeles Court Commissioner) agreed with the inspector. The court noted that the delayed discovery rule applies to a variety of professions, but “…building inspectors really don’t fall into the same public-policy circles as lawyers and doctors, possibly architects, particularly when they are sued for malpractice, and it would be something of an extension, as I see it, to put them there…”

The buyers appealed, and the Second Appellate District agreed with them, reversing the Superior Court. The appellate court noted “…judicial decisions have declared the discovery rule applicable in situations where the plaintiff is unable to see or appreciate a breach has occurred.” It went on to say, “… justification for the discovery rule has not been restricted to regulated and licensed professions. Courts have also employed the rule of delayed accrual in cases involving trades people who have held themselves out as having a special skill…”

The reasoning is simply this. In the case of trades or professions that have special skills, a consumer may lack the ability or opportunity to recognize that negligence has occurred, even if the consumer is as diligent in observation as he is capable of being. In such situations, a statute of limitations should not begin to run until the consumer has discovered that, apparently at least, negligence has occurred.

The court held that this is the situation with home inspections: “…most homeowners will not recognize a problem has been overlooked, or noticed but not reported, until something goes wrong and the damage becomes apparent.” Thus, it held that the delayed discovery rule should apply.

Position Realty
Office: 480-213-5251

The Critical First Two Weeks of Marketing Your Home For Sale

Brokers share their listings with other brokers in the multiple listing service (MLS) under certain rules of cooperation and compensation. One of the rules of cooperation is that each broker and agent make a new listing available to other MLS members within 24 or 48 hours of signing the listing agreement with the seller.

This is to give you, the seller, the greatest chance of selling your home during the first two weeks of marketing. This critical two-week period is your best opportunity to sell your home.

Several key events happen quickly:

1. Your home will be entered into the MLS showing system with your showing instructions, so that other agents can bring their buyers to see your home. While your listing is being prepared for marketing, your agent will contact his or her buyers and inform colleagues of the new listing.

2. Other data such as mapping, satellite image, neighborhood information, tax roll data, school information and other data will be added to your listing so that buyers can get the full picture of what it’s like to live in your home.

3. Your agent will either take photos, or schedule a videographer to help market your home with photos and video. This enables buyers to walk through your home and property virtually, so they can choose or eliminate your home when deciding which home to buy.

4. Your agent may create virtual or printed “feature” sheets that showcase your home’s features to advantage, so buyers can remember it was your home they liked best when it’s time to do side-by-side comparisons.

5. Your agent will schedule your home on the MLS tour for other agents to see, and ask for feedback. The agents who see your home in person are important, as they will be able to report your home’s features and condition to their buyers. Homes in top move-in-ready condition sell faster and for more money.

6. Your agent will distribute your listing data to his or her website or blog, accounts such as Twitter or Instagram, the broker’s website, and third-party sites like Realtor.com, Zillow, or Trulia.

7. Your agent will put a sign in your yard announcing your home is for sale.

8. Your agent may advertise your home in a number of places, including the local newspaper and homes magazines. Your agent may also put your home in their personal marketing tools such as e-magazines, newsletters, or email alerts to prospective buyers.

Anyone who is interested in homes in your price range and area will know your home is available for sale within the first two weeks of marketing.

If you don’t get many showings or offers, chances are good that your home may be facing stiff competition from other homes on the market. They are in a better location, or superior condition or they’re priced more aggressively.

If you don’t have showings within two weeks of listing your home, consult your agent. Perhaps you can do a little more to spruce up your home’s curb appeal, or perhaps stage the interior to better advantage.

Give your home a little more time before you adjust the price. You may be in a buyer’s market with many homes for sale. If so, buyers need more time to sort through the homes on the market.

You don’t want to take chances when marketing your home. Your best chance of selling your home is when it’s new to the market and exciting to buyers. Don’t lose your advantage by overpricing or underpreparing your home for market.

Position Realty
Office: 480-213-5251

Drone Technology Beneficial To The Real Estate Game

Real estate agents and home inspectors are always looking for innovative ways to keep their clients informed. One of the latest tools in the home buying and selling process is drones. Drones are remote-controlled pilotless aircraft that allow aerial shots and different views of the property and can provide an added benefit to real estate transactions.

Here are three key ways drone technology is enhancing the real estate industry:

Additional Images and Video

Before drones became accessible to real estate professionals, aerial photos and videography were limited to grainy satellite images or expensive photography sessions. Drones provide a cost effective and visually stunning alternative — and can be used as a buzz worthy mention to move the sale along. Drones also provide a way for prospective home buyers to experience a video or photo tour in an online home listing before taking the time to physically visit the house. Using this technology can help to diminish the extensive time it takes to tour available homes and can speed along the home transaction.

Catch Potential Property Problem Areas

While home inspectors are trained to uncover potential problems of a home, drones can offer another layer of enhancement to the inspections. They may be useful when inspecting steep/high roofs, chimneys and areas that might otherwise be inaccessible. With the recent changes by the FAA allowing commercial use of drones after going through a licensing process, this technology helps a qualified home inspector to reduce the unknown and potentially save homeowners the cost of previously undiscovered issues.

A Clear View of the Land

Drones have the capability to show an entire property, which is especially beneficial when the area is expansive and includes additional features like stables, acreage, farmland or even a second dwelling. This also benefits home inspectors when looking for things that can sometimes be challenging to identify when conducting inspections on foot.

The industry continues to explore ways to leverage drone-collected data to better assist real estate professionals. This includes increased use of infrared scanning, site modeling and property analysis.

While drones are providing a competitive advantage, it is important they are always used properly. Operating a drone takes extensive practice as misuse can lead to unexpected injuries to people and property. It is critical that the drone operator, whether the real estate or home inspection professional, is properly licensed by the FAA, has a commercially registered drone, understands any local or state guidelines and is properly covered by insurance. As drones are new to the insurance world as well, not all polices automatically cover their use in commercial applications. With the use of real estate technology on the rise, the industry will continue to evolve and become more competitive than ever.

Position Realty
Office: 480-213-5251

What You Need To Know Before You Buy In A Planned Community

A particularly active spring storm season left pockmarked roofs and tumbled fences throughout North Texas this year, including many in my master-planned community, thanks to an EF0 tornado that blew its way through the neighborhood (thankfully missing my house – this time). The process of repairs and replacements was as fickle as the tornado itself. Some homeowners received immediate or at least prompt approval from the community Homeowners’ Association (HOA) and its Architectural Review Committee (ARC), while others were forced to wait and wait and wait – which would be frustrating, even if this weren’t the wettest June in 13 years. In one case, a homeowner’s approval was inexplicably delayed so long, even though she was only looking to replace her damaged roof with the exact same roof, that she suffered leaks and damage to the interior of her home.

That’s one of the rubs of living in a community that is governed by an HOA: You need approval to do stuff to your house, even if that stuff is going to be an improvement over what it currently looks like. It’s not the only potential downside, but there are also plenty of advantages associated with an HOA. And with more than 40 million U.S. households “or 53% of the owner-occupied households in the America” living with an HOA, according to HOA-USA – a number that’s on the rise with new construction, of which more than 60% have an HOA – it’s something you might have to deal with. Get to know the pros and cons so there won’t be any surprises.

Pro: An HOA protects your investment. “HOA rules and regulations help ensure homeowners keep their homes well maintained and in compliance with overall appearance standards,” said Signature Homes. “Combined with proper care of amenities and common areas, the value of your home is more protected than one that does not have HOA oversight.”

Con: Limits your creativity and individuality. HOAs may offer limited options when it comes to updates. Older neighborhoods may have a small color palette available to owners and may be reluctant to expand it to current trends.

Pro: You won’t have to deal with neighbors painting their house pink or letting their grass grow to armpit height. “Homes within an HOA must meet the standards set by the association or face a fine, so you’re less likely to see unkempt lawns, peeling paint or a garishly painted house,” said Realtor.com. “Some HOAs have a design review board with the power to approve any changes to your home’s exterior.”

Con: Those restrictions can be Confining. An HOA demands that you ask permission before making any changes to your home – even if you’re just talking about staining your fence the very same color. Depending on how finicky your HOA is, you might also get fined because your landscaper took the week off or because the basketball net in your driveway is torn (true story).

Pro: File this under the umbrella of “protecting your investment.” Many HOAs have stipulations about how many cars, or what type, can be parked on your property, or even where they can be parked. That can help ensure that the neighbor down the street doesn’t turn his lawn into an auto body shop with multiple non-functioning cars up on blocks.

Con: Looking to park your RV or boat in your driveway? An HOA may nix that idea. Be sure you check ahead of time to make sure this is allowed.

Pro: An HOA decision may not be final. Get a rejection from the HOA on your submitted request to make changes to your landscaping? You can always appeal and state your case.

Con: Deciding to “ask for forgiveness instead of permission” rarely goes well, so, if you decide to go ahead with changes despite not receiving an approval from the HOA, beware: You might be fined.

Pro: Some HOAs take care of things like your front-yard landscaping and trash removal, which means you don’t have to pay for it or worry about it.

Con: That also may mean strict restrictions about what you can and can’t plant in your front yard. You may have to reconsider those rose bushes.

Pro: You might not have to put in a pool because there’s one in the community that you’re helping to pay for through your HOA dues, but don’t have to maintain.

Con: When the pool needs to be redone, it’ll be you and all your neighbors that are on the hook to pay for it – even if you never use it.

Pro: A pool is just the beginning. Planned communities with an HOA can have golf courses, tennis courts, clubhouses, playgrounds, and even private lakes for fishing and recreation.

Con: The more amenities you have, the more you’re likely to pay in HOA dues. In a large masterplan with a couple of pools, a playground, and a tennis court, you can pay as little as $50 per month. The more homes that are added, the more the overall cost is spread out. A more “typical range” is $200–400 per month, said Investopedia, adding that, “The more upscale the building and the more amenities it has, the higher the homeowners’ association fees are likely to be.” In some condos, the fees may be higher if parking and security are considerations, and, especially, in a luxury building with amenities including a fitness center and concierge. “Hollywood’s fancy Sierra Towers condo building, which is filled to the brim with amenities like 24-hour concierge service and valet parking. They charge residents of a 3,400-square-foot condo about $4,000 per month in HOA fees,” said Realtor.com.

Pro: You’ve got a built-in mediator. “Involved in a tiff with your neighbor over that big oak tree that’s losing limbs? You can settle some confrontations with your neighbors by taking your grievances to the HOA’s board or management company,” said RISMedia.

Con: Maybe you’re the type that wants to “handle” grievances in your own way?

Pro: Some HOAs allow you to pay monthly, quarterly, or annually.

Con: Falling behind on HOA dues can lead to foreclosure. “This is another reason you’ll want to make sure those HOA fees are in your budget,” said Credit.com. “An HOA can move to foreclose on your property if you fail to pay its dues and/or associated late fees. Laws can vary by state. A few, for instance, place limits on when an HOA can move to foreclose. So if you’ve fallen behind on payments, you may want to consult a local attorney about your best recourse.”

Pro: Part of what you’ll pay to the HOA every month goes to a reserve fund, which can be used for neighborhood repairs and emergency needs.

Con: The reserves may not be enough to cover large expenses. “In addition to monthly fees, if a major expense such as a new roof or a new elevator comes up and there aren’t enough funds in the HOA’s reserves to pay for it, the association may charge an extra assessment that can run into thousands of dollars,” said Investopedia.

Position Realty
Office: 480-213-5251

Protectecting Yourself During a Move

“I can’t wait to move!”

How often do you hear someone say that? What they mean is they can’t wait to be in their new place, all unpacked and organized and enjoying their new surroundings.

What they don’t mean is, “I can’t wait to spend a month packing up everything I own and hauling it into a truck we’re going to drive across country when I’ve never driven anything larger than a mid-sized sedan, only to have to haul it all out, and into that new house. The new house that has two flights of stairs and narrow hallways. Don’t get me started on unpacking boxes.”

And what they REALLY don’t mean is, “I can’t wait for the movers to break a bunch of my things and lose a bunch of stuff.” Pretty sure they also don’t mean, “I can’t wait for dishonest movers to delay my delivery and charge me quadruple my quote and then hold all my stuff hostage while I sit here helpless.”

Think that could never happen to you?

“Last year, Massachusetts officials sued one moving company and New Jersey officials sued two for providing low-ball estimates and then grossly inflating fees after loading the trucks,” said Consumer Reports. “One of the companies had threatened to auction the possessions of customers who didn’t pay.”

Added MarketWatch about the possibility of mover fraud: “Typically, a mover gives you an extremely low estimate over the phone or Internet without ever actually seeing what needs to be moved. You agree, they show up, load the truck with all your worldly possessions and then tell you it will actually cost a lot more. Then, they hold everything you own hostage on their truck until you cough up the extra cash.”

Yes, moving can be fraught with challenge and frustration and even heartache. So how do you protect yourself? Here are some tips for a safe and fraud-free move.

Do your research

Proper preparation can help you ward off many of the issues that can turn a move into a nightmare, and that’s starts with a healthy dose of research. You always want to ask for a referral rather than using an unknown. And not just anyone is qualified to give a referral, according to MSN.

“Ask your real-estate agent. The general consensus among moving professionals is that word of mouth is the best way to find a good mover,” they said. “Real-estate agents know the ins and outs of the housing industry and are the most reliable sources. Realtors want to make sure that your (moving) transaction is a good one.”

There are also websites dedicated to moving scams. “MovingScam.com maintains a ‘black list,'” they said, as well as a “message board filled with consumer experiences, bad and good.”

Verify licensing and look for complaints

MSN recommends people who are moving investigate the companies they are looking at using. Interstate movers must be licensed by the Federal Motor Carrier Safety Administration.

“Check with your area’s Better Business Bureau to see if any complaints have been filed and whether there are reliable,” they said.

Protect Your Move also provides info on whether a mover’s license is current “and if the company has ever had a federal complaint.”

Watch out for the lowball bid

“You get what you paid for” is often a dangerous reality when it comes to moving. To protect yourself against unethical movers, get several estimates and make sure to weed out any that seem too low. Yes, the desire to save money is strong. But an unusually low bid is often a red flag.

“When shopping for movers, it’s best to get at least three estimates, ” said MSN. “If you’ve got one that’s really, really low compared to the other two, you’re going to know something’s up.”

Have a contingency plan

No matter how well you prepare, the unexpected can still happen. What if the truck doesn’t show up on time? Are you prepared to live without your things for a few days, or longer? Make sure you pack a bag of essentials you can have with you while the rest of your stuff is stuck on the truck.

Protect yourself

The Better Business Bureau suggests paying a little extra for peace of mind.

“Consider accepting full value protection. It may cost a few dollars more up front, but it can eliminate headaches after your move,” they said. “Purchasing full (replacement) value protection from your mover means any lost or damaged articles will be repaired or replaced, or a cash settlement will be made to repair the item or to replace it at its current market value, regardless of age. The cost of full value protection must be included in the initial estimate you receive for an interstate move.”

Position Realty
Office: 480-213-5251

Three Things Home Buyers Should Never Do

Misunderstandings, problems, or shortcomings in the buying process many need correction to end negative results. This is not about blame, but learning how to proceed constructively:

  • Buyers who begin homeownership out of their financial depth are not on the path to success or happiness. Sticking to your budget is not losing out, but progressing sanely.
  • Research-savvy buyers, who ask questions and uncover deal-breaker property weaknesses will not end up as extremely-disappointed property owners faced with expensive problems to correct or law suits to fight.
    Home buyers will be rewarded by remembering that there are three things never to forget when buying real estate:

#1: Never quit: Real estate values continue to rise — rarely getting cheaper. Give up and you end up with nothing. If you quit, you’ll join the ranks of those who spend the rest of their lives talking about the real estate that got away. I’ve heard so many stories about properties that people almost bought or always wanted to buy. When I ask what happened, they usually don’t know. Many say they just gave up. “I guess it was not meant to be” is a common answer. Don’t let this be you. If you’re losing out on offers, find out exactly why.

  • Most sellers care about who buys their home and will make new memories there. Personalize your offer with a video or unique offer. One enterprising chef offered to come and cook dinner for the owners once the offer was accepted. A couple’s short, punchy video showed what they had gone through to find that house and what they dreamed about doing there… all with magazine pictures cut out by their kids. You may not be creative, but be sincere with a letter or short video (less than a minute or two) that your real estate professional can use to introduce you and your offer to purchase.
  • The real estate market may change as you continue shopping. If prices rise, you may end up in the wrong price range. Explore other locations and types of housing. Buying a two- or three-unit income property may give you the financial leverage you need for the area you prefer.
  • Your relationship with your real estate professional may not be working to your advantage. What’s missing? Is it time to quit that relationship, not the buying project?

#2: Never rely on verbals.: Verbal assurances from sellers, home inspectors, or real estate professionals are worth the paper they are printed on! In real estate, it’s what’s on paper that counts[&mdash]what you can rove indisputably in a disagreement or in court.

  • Sellers may say they’ll leave all the appliances, playground equipment, or anything else. If you really want something, include it in the offer with a description that precludes substitution with lesser models.
  • The real estate professional may assure you about many things the sellers will do or not do before closing. If something matters to you, make sure it is written into the offer, so there is no doubt what will be done, to what standards, when, and at who’s cost. Repairing the roof, finishing the bathroom renovation, cutting deadwood out of tall trees…all in writing in the offer.
  • If there’s something of specific value to you on the property, make sure it will remain intact. For instance, a stand of trees was assumed by one buyer to be a permanent fixture. The sellers thought that, since they’d grown the trees, they could harvest the trees as firewood as part of packing to move. What did the offer say on the subject?
  • The builder’s sales staff want to expedite your new home sale, but they may not have the power to make binding promises, warranties, or guarantees. Be sure you get the home you expect, by having details that matter to you written into the offer. Read the entire offer[—]yes all the small print. If you can’t follow the clauses, ask your real estate professional. Translating legalese for clients is a prime function for these professionals. Check important issues and clauses with your real estate lawyer. If you only want the house if it has a three-car garage, not a two-car, it’s vital to get that commitment from the builder into the offer in the correct way to overcome any sidestepping made allowable by the small print.

#3: Never think the work is over once the offer is accepted: Having your offer to purchase accepted is terrific! Hurrah! However, until closing, the house belongs to the seller and a lot can happen.

  • The seller is responsible for insuring the property and keeping it in good repair until closing.
  • Will the lender have all the mortgage funds ready for you on closing?
  • Both sides of the transaction need their lawyers tidying up loose ends. You’ll be busy with movers and perhaps school transfers.

Things can go wrong. I’m not trying to stress you out, but keep in touch with your real estate professional to be sure they are in touch with those finalizing the many details that must be resolved before closing. That’s not calling everyday in a panic. Clarify what details must be taken care of before closing. Then check off that list with your real estate professional, so nothing is left to the last minute. Once you get the keys and move in there may be carryover issues. Remain calm. Document the issues. Never quit until issues are completely resolved. Never rely on verbal assurances. Insist on written sign-offs, warranties, and receipts.

The First Offer May Be The Best Offer

Sometimes when everything goes right we have trouble accepting that fact. Perhaps nowhere is this phenomenon more clearly illustrated than in the case where a seller receives a good offer right away.

The annals of real estate are well stocked with stories of sellers who refused to take a good, but not perfect, first offer, and who then waited a long, long time before finally accepting something else at a considerably lower price. And most agents who have been around for a while know to shudder when a good strong offer is made almost at the outset of a listing; for the seller’s reservations are almost inevitable. “Did we list it too low?” “If someone will offer this much so soon, maybe we should wait a while and see if we can get more.” Etc.

When we read of Silicon Valley listings routinely selling at above list price, and while we are still in a period when multiple-offer situations are commonplace, it is understandable that such thoughts come to mind. Nonetheless, they are generally unfounded, especially if the market is anywhere near “normal”, as ours is today.

As an antidote to the ill effects of the “curse of the first offer”, a couple of observations might be kept in mind.

First, the fact that an offer is received early in the listing period — even in the first few days — doesn’t mean that the property has been listed too low.

It is easy to overlook how very efficient the residential real estate marketplace has become. Modern multiple listing systems (MLS) provide agents, and thus their buyer clients, with virtually instant access to information about existing inventory and about what has newly come on the market. In the old, old days a buyer’s agent did not become aware of new listings until “the book” (i.e. the compilation of MLS listings) was published. There might have been a lag time of ten days or more from the time the listing was taken.

Today, a good buyer’s agent will have electronically entered a “profile” of his client’s needs and price range into the system. Then, whenever he logs on to the MLS, he will be notified if a listing has been entered that matches that profile. In a low-inventory market such as we have had recently, buyers’ agents will log on a half-dozen times a day, or more, to see if an appropriate new listing has been entered. Moreover, in most systems the buyer’s agent is able to place the buyer himself on a similar notification.

The point is that potential buyers learn quickly of the existence of an appropriate new listing. Thus a flurry of activity at the outset of the listing does not necessarily imply a too-low price; rather, it reflects the efficiency of the system.

Secondly, an early first offer does not imply that the seller should hold out for full price.

We all know that there is typically a bit of a dance in the pricing and negotiating for a property. Sellers, with the concurrence of their agents, will usually list their property for an amount that is both higher than what they believe its value to be and higher than what they would be satisfied to receive. Why? Because they know that buyers almost always want and expect to pay less than the listed price

However, when an otherwise acceptable offer comes in near the outset of a listing period, sellers are frequently tempted to hold out for full price, or much closer to it than would normally be expected. Caution should be exercised in this regard.

For one thing, as we have noted, exposure of the property to buyers occurs pretty quickly nowadays, and sellers shouldn’t assume that there are going to be more, much less higher, offers as the listing period progresses.

Secondly, there often can be a transactional benefit to “leaving something on the table.” A real estate transaction is a process. These days, with inspections and disclosures, there are almost always “second negotiations” during the course of escrow. A buyer who feels ground down in the purchase negotiation may well be more difficult to deal with as other issues arise.

Position Realty
Office: 480-213-5251

3 Steps To Saving For Your Dream Home

According to Harvard University’s “State of the Nation’s Housing” report, while more people than ever before want to own their own home, fewer feel financially ready to do so yet. Reasons range from high rents to student loan debt.

Saving For Down

Millennials, in particular, are waiting longer to get married, start families and purchase their first home. But this is not necessarily bad news for the housing market. In fact, it could mean that the millennial generation has something to teach us all about saving consistently towards a big life goal such as owning your own home!

In this article, learn three important steps to take when you start saving for your dream home.

Step 1: Pay down your debt to clean up your credit.

Your credit score is a tricky business when it comes to saving for your first home. You have no history of carrying a mortgage, so you can’t make any real impact there. What you can do is to clean up your overall credit report so your general credit score is as healthy as possible before you apply for your mortgage loan.

According to the National Foundation for Credit Counseling (NFCC), a surprising number of Americans think they have “above average” (60 percent) to “very good” (41 percent) credit, although a full 48 percent have not seen their credit score in the past three years or ever.

So clearly, this is where you need to start. The best way to differentiate yourself from your competition (other people who are trying to convince a direct lender to give them a mortgage loan) is to pay down your debt, clear up any disputes on your credit report and, in so doing, boost your credit score so you can qualify for the best mortgage at the lowest interest rates.

Step 2: Separate and automate your savings.

Saving money is never going to be the easiest goal you attempt. In fact, according to The Atlantic, one of the chief reasons that nearly half of all Americans have little or no emergency savings to fall back on is taking on too much mortgage debt.

So here is a clear area where you should proceed with caution. First, save. Then, buy a home. The best approach to make saving as painless as possible for you is to automate your savings. You can do this by setting up direct deposit on your paycheck and then regular auto-drafts into a savings account reserved just for dream home savings. This way, you never even touch those funds and feel tempted to spend them instead.

Step 3: Downsize to upsize.

Finally, one effective change many adults today are making to save more towards their dream home is to downsize while they save. This can mean anything from moving to a smaller apartment to getting rid of your cable television subscription. Also, you must continually remind yourself why you have downsized in order for this step to work well.

But the key to making downsizing work to serve your greater goals is to make sure you deposit every cent of what you save into your dream home fund. Referring back to Step 2 here, the easiest way to do this is to calculate for yourself exactly what you are saving by paying less rent, giving up cable, etc., and then setting up a monthly auto draft in that amount to deposit directly into your dream home savings account.

By following these three steps, you can make tangible financial progress in saving to buy your dream home. If you can save 20 percent towards a downpayment, you can avoid paying expensive Private Mortgage Insurance (PMI) and you may even qualify for a lower interest rate. Scrimping and saving is never fun or easy, but it will be worth it when your realtor hands you that brand-new set of house keys!

View All Sonoran Mountain Ranch Homes for Sale

Secluded in the foothills of North Peoria you will find the high desert setting breathtaking. Designed to preserve that setting, Sonoran Mountain Ranch offers a community that is harmonious to the desert backdrop. Extensive preserve spaces and washes offer many view lots for home sites. A wide variety of builders ensure there is something for everyone, including high end luxury homes by Camelot, as well as a custom home gated enclave set into the hillside.

Combined with access that gets you places quickly and amenities nearby, you have the best of both worlds at your fingertips. Hiking trails lead up the mountain side right from the sidewalks, lots of bike paths and walking trails complement the trails. The community has a large park area as well as assorted greenbelt and tot lots. There is land dedicated to a K-8 school at some point in the future. The community features approx. 1500 homes and/or lots. Homes here were built from 2004 to present. The community is nearing build out, but there are still opportunities to for a brand new home.

Position Realty
Office: 480-213-5251

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