First Offer Could Be Best Offer

First Offer Could Be Best Offer

Why is it that more often than not, the first offer a seller receives on their home is usually the best offer? Of course, this is not true in every situation, but there are reasons why sellers should give serious consideration to the first offer they receive.

Buyers usually start off slowly by going to a few open houses, going online, and doing their homework.  They then  make first contact with an agent to assess what the agent thinks about the local market.

From there, the buyers begin to get more serious.  They may go on a few private showings with their agent and eventually become what we call a "real buyer"  approved for a mortgage, and actively engaged in the process of buying a home. Real buyers are often the ones who write the first offer a seller receives on a property, and that’s why their offers should be taken seriously.

A real buyer's offer may not come in within days of a property going on the market.  It will, however,  come from an informed buyer who is knowledgeable of the market.  If a home is priced too high and a month or two goes by without an offer, it will be the real buyer who has been watching the listing and waiting to see how the market responds.  If the buyer sees that there aren’t any offers on it and there is no activity after some time,  the real buyer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While sellers sometimes see the low offer as insulting,  the seller should still look at this offer closely and investigate who the buyer is, how long they have been looking, ask whether they’ve written other offers nearby, determine if they are working with a good local agent, and ask if the offer comes with a pre-approval letter.

As hard as it may be for a seller to contemplate an offer much lower than their asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Time to Push the Reset Button!

Time to Push the Reset Button!

It is safe to say that there are conflicting reports coming from the media on a daily basis regarding the real estate market.  The truth is that the housing market is  definitely turning around.  Why? Because there is a shortage of homes that are available for sale combined with the fact that most builders stopped building when it became evident the economy was on a downward slide. The result of the shortage is that buyers are now competing with each other, many losing out to a better offer if the home is in a good location, priced right and shows well.

Here on the Central Coast of CA, we  have been experiencing this shortage ot inventory since January. What I didn't expect to find, however, was that after attending an event hosting 200 top Realtors across the country this week, almost every Realtor I met reported the same conditions in their area!

Low interest rates are fueling this new surge of buyers coming on the market as economists and lender predict a rise in rates at some point. 

It's important to know that things have not returned to the old normal.  A lot has happened over the past few years and it is important that you discuss your particular situation with a trusted real estate advisor.

The world is not changing.  It has changed already! If  you are waiting for things to go back to normal, you will miss the boat waiting for something that likely will not happen.   As usual, some change is good and some not so good. If we want to move forward with our lives, one thing is sure that a certain level of acceptance of the facts is necessary to operate in the new world we live in! 

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Beware of Mortgage Scams

Beware of Mortgage Scams

If someone, even an attorney, has made you a promise or guaranteed mortgage relief and asked for money up-front,  my advice is not to do it.

Mortgage fraud reports have shown an increase from more than 6,900 in 2003 to more than 93,500 in 2011, according to the FBI.  The nonprofit Homeownership Preservation Foundation reported the number of mortgage foreclosure scams has shot up 60 percent so far in 2012.

In response, the California Association of Realtors (CAR) is educating homeowners and warning consumers they are at risk of being scammed by third parties, such as those that promise loan modifications for an up-front fee, which is illegal. 

Many so-called foreclosure rescue companies or foreclosure assistance firms review foreclosure notices in newspapers, the Internet, and public files to identify potential victims.  They then ask for money up-front and claim they can help homeowners save their home.  Some are bold enough to offer a money-back guarantee.  However, the scammers simply take the homeowners’ money, often leaving them in worse circumstances than before.

Consumers should NEVER pay money up-front for services promised. Instead, get a referral to a free HUD-approved housing counselor to advise on loan modifications, short sales, and other alternatives for avoiding foreclosure by calling (888) 995-HOPE. http://www.995hope.org.

To learn more about loan fraud,  go to the California Association of Realtors website and watch videos in Spanish, English and other languages. http://www.car.org/aboutus/forconsumers/loanfraud/

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!