RealNews RoundUp
Each week I round-up the best real estate articles and break them down for you in an easy to digest format. Here are the articles I’ve found most interesting over the last couple weeks:
The Article: Inman: Multiple offers? Here’s how to write a competitive contract and win
The Highlights: Competition is fierce these days, and there is an art to writing the right kind of offer—one appeals to sellers and gets you the house! Almost everything in real estate is negotiable—here are the terms that you can negotiate to elevate an offer that will sets your client apart, especially in a multi-offer situation!
1. Earnest money: More is better. When you offer a higher-than-market-normal earnest money deposit, you show the sellers and listing agent how serious you are about the property and about closing.
2. Repairs and appraisal: Inspections and appraisals are a top concern for sellers. If you partially waive the appraisal and/or are flexible with repairs, this eliminates risk for the seller.
3. Financing options: Cash is king! But if that’s not an option, the next best plan is to use delayed financing to then “pay themselves back.” This method requires a new title policy and another closing, so it’s not for everyone and will cost one to 1.5 percent in fees. For those who can do it, it’s a powerful move to secure your offer.
4. Impact letters: A pre-approval letter from a reputable local lender assures the seller that the buyer has good financial backing.
Additionally, a personal note to the seller could help sway the seller if they feel like they connect to the buyer’s family/personal story. Everyone likes compliments and connection!
5. Leaseback: Moving can be stressful and expensive, and a leaseback gives the seller more time to execute a move without needing to figure out a short-term housing solution. The leaseback could be inexpensive or free.
My Take: These are such great tips! I’ve talked about many of these at length on my Instagram page (like here, here, and here for starters).
Some are of course more impactful than others. For instance, appraisals are a top concern for sellers--especially lately when the market’s seen such rapid home price acceleration. Appraisal gap coverage is going to be much more appealing to a seller over a nicely written personal note.
That said—a note is FREE! Home buying is expensive and if funds are tight these tactics that sweeten your offer with no additional cost to the buyer.
Article: CNBC: Barbara Corcoran says this is the number one mistake new home buyers can easily avoid: ‘Go back for another look’
The Highlights: Barbara Corcoran has logged over 40 years in the real estate industry and owns a wide range of properties—from Manhattan high rise apartments to converted trailers in Malibu. On two separate occasions Corcoran has said it’s essential to see a house more than once before you make an offer:
“People fall in love with the house and think at that moment in time it’s their new house. No, you got to see it in the morning and you got to see it at night. Do your snooping.”
And…
“…go back for another look. That’s when you discover the noisy neighbor, the barking dog, the party house right across the street. Go back for another look.”
My Take: There is nothing worse than buyer’s remorse—especially when the thing you bought is a HOUSE! There are lots of mistakes home buyers can make, especially if their team of advisors (loan officer, realtor, etc.) offer bad advice, but I’d agree with Barbara that this is near the top of the list.
If you’re serious about a home, go back and see it at least twice. This is something your realtor should be more than willing to do and should in fact encourage.
I’d add that you don’t need a formal appointment to observe the neighborhood that a home is located in. Drive through on weekends to see what’s happening, park the car and take a stroll. This will allow you to get a closer look at surrounding homes. Neighbors make an impact on home values and quality of life—for better or worse!
The Article: Today: Here is every 2024 Color of the Year we know so far
The Highlights: Every year paint and décor brands from Dutch Boy to Pantone analyze interior design trends and declare a “Color of the Year”.
For example, last year Pantone decided on a color called "Viva Magenta."--"an unconventional shade for an unconventional time." A bold and polarizing choice!
So far, the colors exemplifying 2024 are looking a little more natural. But it's still early in the game, and plenty of brands have yet to weigh in.
My Take: This is a fun annual tradition—to look through all the colors and glean some inspiration. But! Take these suggestions with a grain of salt! You’re not rushing out and repainting your entire house just because a color has been bestowed with this title.
That said, I do think color is making its way back into design. Long gone are the days of all-white kitchens. People are looking to infuse some color into their homes, and paint is by far the easiest and most simplistic way to do this! In fact, the average Zillow listing with a blue-gray painted kitchen sold for over $1,800 more than kitchens in other colors.
Your home should primarily reflect you, but when it comes time to sell, remember that paint colors do have an impact on home value and paint color can attract or detract buyers—especially when viewing online photos!