3 Ways That Buyers Turn Off Sellers

 

Buying a home is an emotional decision which is later rationalized by the parties concerned.  Sometimes a buyer can self-sabotage when caught up in the transaction.  Here are some ways that buyers might turn-off a seller.

 

1.  Unjustified low-ball offer - The market has turned around and is up! The days of low-ball offers being accepted are behind us.  Buyers should ask themselves why someone would give their house away when someone else may and probably will be willing to pay market price? 

 

A seller's response will often be to ignore an offer that comes in extremely low and then not even make a counter offer.  If they do make a counter offer, they will usually respond with a higher price than if the offer came in at a reasonable price to begin with.  Once the seller feels that the buyer is being disrespectful and wasting their time, the chances of successful negotiation are reduced substantially.

 

2.  Verbally bashing the house - Pointing out everything that is negative about the property, especially within hearing distance of the seller, is not a good idea.  The seller is usually aware of the negatives and if he needs to be made aware, it should be done carefully.  This is one of the reasons that you should hire a highly skilled agent who will negotiate for you.  

 

Buyers who think they should do their own negotiating are like people who decide to represent themselves in court.  I work with attorneys who hold real estate licenses that still hire me to represent them in their real estate transactions for this same reason.

 

3.  Failing to obtain financing - Not only should a buyer be pre-approved by a lender before making an offer, they should use a lender that has a good track record of actually funding the loan when it is time to close. You can only imagine the stress it causes a seller to find out a week before closing that the buyer's lender is not going to perform for one reason or another.  Don't be fooled.  In almost all cases, a good lender will see any potential problems ahead of time and have a couple of backup plans in place should the problem arise before closing.

 

There are literally thousands of lenders advertising low rates that may seem more attractive on the front end,  but my advice is to be careful.  It is not unusual for less than reputable companies to bait and switch you to another interest rate close to your closing date or to reject your loan entirely.   If this happens, there is no guarantee that the seller will wait until you find another lender who will do the job correctly.

 

If you have questions concerning a purchase or sale of your home, call me at (805)710-2415. I always enjoy hearing from you!

 

Nancy Puder is a real estate broker in Arroyo Grande, CA at Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  Go to Facebook.com/NancyPuderRealtor and "like" her page to access other real estate related articles.

Top Seller Mistakes

Good intentions or not, a seller can actually sabotage their own sale, when trying to sell their home.  Here a some of the things that sellers do which can result in the loss of a sale or produce a low-ball offer.

 

1. Seller hanging around when  buyer is viewing the home - This is a big mistake that some sellers make. A seller may worry that their agent will forget to point out all of the amenities in the home or that the buyer likes the idea of the seller being close by so that they can ask direct questsions.  The truth is, however, that most buyers feel stifled and unable to fully appreciate what the home has to offer when the seller is hovering nearby (or eavesdropping). Buyers need to engage personally with the home and that is not possible if they are not free to verbally express their feelings during the showing and to fully explore the home by opening cupboards etc. Buyers need to be able to envision themselves living there and that is next to impossible if the seller won't give them the space to do so.

 

2. Showing a Messy House - Life is busy, but it is important to remember that buyers expect to see the home in showable condition.  My advice to sellers is to pack up as if you are moving and put what you don't need in storage.  Nicely packed boxes put in the garage is usually ok as long as it doesn't overfill the garage and make it look small and inadequate.

 

3. Overpricing the home - Yes, buyers can always make an offer, you say.  The truth is that if you are overpriced, the buyers will usually just pass you by.  Or worse, buyers won't even notice your property since it is not in the price range they are looking in.   By the time the property is priced correctly, the best buyers have come through already.  

 

My advice is to hire a highly skilled real estate agent to begin with. Share with your agent everything that you love about the home and disclose any negatives.  Then trust your agent to do their job with excellence.  The quality of real estate agents varies so be sure that your agent is hired based on their experience and actual homes sold. 

 

If you have any questions concerning your property, please call me anytime.  I always enjoy hearing from you!

 

Nancy Puder is a real estate broker with Nancy Puder & Associates in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or call (805)710-2415.  Follow her posts on Facebook Nancy Puder Realtor and click "like".

 

Reasons to Check Your Finances Before Selling

There are important financial steps that you should take before selling your home to ensure your goal is accomplished without significant surprises or glitches. 

 

When a homeowner decides to sell, I've found that their primary concentration is most often on property preparation.  The homeowner picks an agent and then has them come out to tell them what to do to make the property irresistible to buyers.  They then go to work and put a lot of time and energy into making their home attractive so that it will sell quickly.

 

More importantly, though, is taking the time to be financially prepared.  This important step will help you to avoid most unnecessary disappointments.  The most common reason for a homeowner's decision to sell is to improve their lifestyle.  The first step in getting ready to do that should be to get fit financially.  These steps are important whether you are moving up or downsizing.

 

* Check your credit report - Be sure to check all 3 credit reporting agencies.  Equifax, Transunion and Experian.  What shows on one report, often does not show on another.  This is what professional lenders do when granting a loan.  There are so many reasons to do this and in doing so, you can save yourself a lot of time and money.  Don't be so sure that your credit is "fine" because you always pay on time. Inaccuracies are found frequently and can take months, even up to a year, to correct.  The sooner you start the better.  If you are planning to make a purchase upon completion of your sale, don't wait until you have the buyer to discover there is a problem that could have or should have been dealt with before putting your home on the market.

 

* Make a Spreadsheet - I recommend that you make a spreadsheet so that you can clearly see your desired financial outcome after selling.  This should be done whether you are looking to decrease your monthly output or to increase in order to accommodate your new lifestyle.  When rates are low and home prices are rising, it's easy to get excited about moving up without thoroughly examining how this will play out financially down the road and after the "honeymoon period" is over.

 

Remember to factor in what the actual increase in your mortgage payment will be.  Be clear on how much you’ll net on your home, how much cash you’ll need to close on your next one, and how much your utilities, property taxes, insurance and other home-related expenses might increase if you move up.

 

If you are downsizing from a home you’ve live in for decades to a brand new, but smaller, condo – you could actually see an increase in property taxes in some areas and get an HOA bill you never had before.  However, the increased bills might be offset by decreased heating, cooling and maintenance, and the fact is that the smaller, new place might just be the right size and style for the next stage of your life.

 

Discuss these things with your agent who can help you understand what sort of downsize or move up property you can get at various price points. Talk to your mortgage broker to discuss different financial scenarios for your next purchase and also speak to your tax advisor to discuss any tax ramifications.  Consult your financial planner so that you have proper perspective on how this move affects your other future plans.

 

* Get inspections and key reports in advance - The potential for financial surprises is real any real estate transaction. Work with your agent to get a termite report, possibly a home inspection report, HOA disclosures if applicable and a preliminary title report.

 

* Create a financial plan for your home sale. Ask your agent to prepare an estimated seller net sheet for you.  Do not depend on the escrow company to disclose all of your costs.  Escrow companies are a neutral processing entity and they are not there to give you advice.  A good agent should be able to provide a personalized net sheet for you which allows for any specific concerns that you have, in addition to the usual sales costs.

 

* Document your financial plan and budget for selling your home -  Many agents will sit right down with you and help you do this; if yours will, take them up on the offer. It also creates a perfect time and space to get educated about the flow of the home selling process and standard bargaining practices in your area. The goal is to get a clear, concrete understanding of the dollars that will flow in and out during this major life change, so you can make clear, calm decisions throughout the process that set you up for success long after closing.

 

Nancy Puder is a real estate broker with Nancy Puder & Associates in Arroyo Grande, CA.  If you have any questions or concerns regarding your property, you may contact Nancy to arrange a free consultation at (805)710-2415 or Nancy@NancyPuder.com.  Go to Facebook.com/NancyPuderRealtor and "like" her page to access other real estate related articles.

 

 

Tips to Increase your Credit Score

Your credit score is calculated from information in your credit report and is a measure of how good of a risk you are to the creditor. If you are thinking about buying a house or even trying to rent one, it is important that you are aware of how your credit score will affect your ability to buy or rent.

 

It's important to know that any lender to whom you apply will obtain your score and provide it to you. As noted below, however, inquiries by lenders may have a negative effect on your score, whereas inquiries by you do not. Hence, it is a good idea to find your score before you apply, so you can make an informed decision on whether you want to apply at that time. 

 

You can obtain your score from many firms in the business, including www.equifax.com, www.transunion.com, www.experian.com and www.myfico.com. 

 

Here are some tips on how you can improve your credit score using data from your credit reports.

 

Pay on time: The core rule is to meet your debt obligations on-time, EVERY time. If you have had payment lapses in the past but your habits have improved, time is on your side. The credit scoring rules weight recent experience more heavily than older experience. 

 

Correct mistakes in your credit report: Your score should not be reduced by reporting mistakes, which are all too common. Detach yourself from the "wrong vendors". Because finance companies lend to relatively poor risks, the credit score of any borrower owing money to a finance company is lower than it would be if the creditor was a bank. By the same logic, borrowers who have credit cards of department stores are penalized, relative to what their score would be if they had cards issued by banks. 

 

Reduce balances on revolving credits to less than 50 percent of the maximums: A high utilization ratio is read as a sign of weakness and potential trouble, reducing your score. Credit cards are the most important type of revolving credits, but HELOCs belong in this category as well. A HELOC used to purchase a house or to refinance a mortgage, where the initial utilization ratio is 100 percent, will jolt your credit score.

 

Note that utilization ratios can be reduced by getting the maximums raised, as well as by paying down the balances. In many cases, credit card issuers are willing to raise the maximum at the borrower's request. 

 

Minimize the number of "hard inquiries". Hard inquiries are requests to a credit agency for your credit score from a credit grantor, insurance company or other entity to which you have applied and to which you have entrusted your Social Security number. "Soft inquiries" made by you or by firms looking to sell you something for which you have not applied don't require your permission and don't impact your credit score. The credit-scoring systems may or may not penalize borrowers who shop multiple credit grantors within a short period -- unfortunately, you can't be sure.

 

The credit agencies tell you that multiple inquiries within a 15-day period count only as a single inquiry, but in fact inquiries for mortgage, auto and student loans would probably count as three inquiries, and even three mortgage inquiries could count as three inquiries, depending on how the credit grantors are identified to the credit scorer. 

 

The bottom line is that in applying for credit, find your own score that you can deliver to the vendors you are shopping who need the score to set the price. The vendor you select will verify the score through his own inquiry, but it will be only a single inquiry. 

 

Pay off collection accounts: This may actually reduce your score in the short-run by converting the account from an older entry with a low weight to a new one with a higher weight. However, you can't get a loan with a collection account on your record, so you must pay it off -- the sooner the better. 

 

Nancy Puder is a real estate broker with Nancy Puder & Associates in Arroyo Grande, CA. For answers to your own real estate questions, she invites you to contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you! To follow her on Facebook, go to Nancy Puder Realtor and click "like".

 

Home Sales Best Since 2006

2013 was a rebound year for the real estate industry that marked the highest level of sales since the housing boom year of 2006.

A report from the National Association of Realtors showed that there were 5.1 million previously owned homes sold in the year, up 9.2% from 2012 and up nearly 20% from 2011.

December sales were up slightly from November, the first month-over-month rise in the reading since July. Mortgage rates have been rising steadily since hitting record lows in May, raising the cost of purchases for home buyers.


Realtors attributed the full-year gain to rising prices, lower unemployment, a drop in foreclosures and pent-up demand, as well as mortgage rates that are still low by historical standards, even with the steady increases most of the year.


The sharp drop in distressed home sales has contributed to the impressive gain in the number of sales. Only 14% of the homes sold in December were in foreclosure or were short sales for less than the amount owed on the existing mortgage. A year earlier, nearly a quarter of sales were distressed home sales. 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your property, you may contact Nancy to arrange a no-cost consultation at (805)710-2415 or Nancy@NancyPuder.com.  Go to Facebook.com/NancyPuderRealtor and "like" her page to access other real estate related articles.

 

Do TV Real Estate Shows Affect the Market?

 

Real Estate "Reality TV" shows have become so popular over the past several years.  Typically, these shows will portray a potential homebuyer or a real estate agent walking through someone's home and making rude (sometimes nice) comments about different features of the property.  The seller then shows slight dismay and gets to work to fix up their home so that it will sell.

While I do agree these shows can be insightful and assist homeowners on how to make their home attractive to a potential buyer, I feel that it is also important to remember these are TV shows and programmed for our entertainment.  They should not necessarily be considered a blueprint for selling or buying a home,.  Remember, if these shows are not entertaining, ratings will go down. Sensible options can be boring and not really good for entertainment, but they may be the right option for you.

I meet people all the time that take these shows a little more seriously than they should. Not everyone is going to get a remodeled kitchen and it is perfectly fine to purchase a home and live in one that has not been remodeled.  Really!

Of course, if your kitchen has not been upgraded and does not have the amenities that your neighbor's house had when it sold, you are not going to get the same price. That should go without saying.

My advice to buyers who are working on a "beer budget with champagne taste" is to loosen up a little and find a home within their budget.  There is plenty of time to plan and remodel.  I have been in lots of homes with older kitchens that are cozy and charming.  Sometimes it takes a little imagination to make them that way, but it can be done. Old-timers may remember when imagination, creativity and working with what you have was considered intelligent.

The most important thing that a seller should do is to make their home as uncluttered and as clean as possible.  Consider having it professionally cleaned inside and out.  After that cost is factored into the budget, then move on to upgrades if there are funds left to do so.  A clean and uncluttered home will sell as fast as a remodeled home in most cases.

 If you have any questions or concerns about your property, call Nancy anytime at (805)710-2415 or email Nancy@NancyPuder.com.  She always enjoys hearing from you!  Nancy Puder is a real estate broker with Nancy Puder & Associates in Arroyo Grande, CA.  Follow Nancy on Facebook.  Go to her page at Nancy Puder Realtor and click like.

 

 

 

Adjustable Rate Mortgages Making a Comeback

 

 

Adjustable rate mortgages (ARMs) are making a comeback as lenders and consumers begin to relax a bit after the housing bubble.  It's important to note that ARM's, in general, should not be considered a bad product and should not be confused with the high risk loans that some lenders flooded the market with. 

During the housing bubble, some lenders encouraged low-income borrowers to take on high-risk loans. Sometimes these loans were set up so that the borrower was actually paying less than what the interest payment should have been. This caused the loans to have a negative cash flow and the amount owed on the loan grew.  In addition, some of these loans were structured with risky adjustable rate schedules which made it impossible for many to keep their homes within a relatively short period of time.

The truth is that a conservative ARM can be attractive, beneficial and manageable in certain instances.  A good lender will access your situation and if applicable, may suggest an ARM to help you accomplish your goals.  If that happens, don't bolt for the door.  Just listen to what he or she has to say and then make an informed decision on the type of loan that will work best for you.

One scenario where an ARM can work well, for instance,  is when a parent takes a year or two leave of absence from work to stay at home and care for a child.  While the family is receiving one income only, it would make sense that they would want a smaller house payment. 

Another reason to consider an ARM would be the length of time that you plan to keep the property.  If you are planning to sell within a few years, an ARM may be the best choice for your situation.

To be on the safe side, be sure to use a lender who has an established reputation in your area. If you need a recommendation, I have several lenders that I've had good success with and will be happy to share their names and contact information.

Nancy Puder is a real estate broker with Nancy Puder & Associates in Arroyo Grande, CA.  If you have any questions or concerns regarding your property, contact Nancy at (805)710-2415 or Nancy@NancyPuder.com  She always enjoys hearing from you!  Follow Nancy on Facebook at www.Facebook.com/NancyPuderRealtor and "like" the page to receive more insightful and current information on the real estate market.