Why Isn’t My House Selling?

Selling a house fast and for the highest net profit is the goal of any prospective home seller. It costs money to keep your house on the market, especially if you’ve already purchased a new home.

If your home has been on the market for more than 30 days is, it may be getting stale. The longer you let your listing sit, the harder it will be to sell. Let’s review the sobering reasons why your home isn’t selling.

Reasons Your House is Not Selling

If your home has only been on the market for a 2-3 weeks, don’t panic yet. Depending on your location, this may be normal. However, if your home has been on the market for 2-3 months and you’ve had zero offers, it may be time to pivot and try something new. To get traction with your listing, consider these 5 reasons your home might not be selling.

1. Your House Needs Updates

One of the most common reasons a house will sit on the market without selling is that it isn’t comparing well to others in the same price range. So, it might be that you need to spend some money on improvements before you can expect to interest serious buyers.

That said, it might not be obvious which aspects of your home need the most attention. Consider Remodeling magazine’s “Cost vs. Value Report” of which home-improvement projects carry the best ROIs. Here are some of the most popular options:

  • Garage Door Replacement
  • Entry Door Replacement
  • Deck or Patio Remodel or Addition
  • Minor Kitchen Remodel
  • Siding Replacement
  • Window Replacement
  • Bath Remodel or Addition
  • Roof Replacement

If any of these are areas where you think your house may currently be struggling, it’s worth considering the investment to improve it.

2. Your Home is Overpriced

Your house may not compare well to other options in the same price range simply because those houses have more rooms, square footage, are in more desirable neighborhoods, or a whole host of other reasons you can’t do much about.

In that case, you have to rethink your asking price.

This is never an easy step and, understandably, it’s usually one that sellers try to avoid at all costs. No one wants to accept that they’ll have to take less for their house. Pride can even come into play. After all, you probably think very highly of your home and for good reason.

If you didn’t originally have one done, now would be the time to get a comparative market analysis (CMA). This report will tell you how much other homes like yours have recently sold for in the area. It will give you a much better idea of what price you should be listing your home at.

3. The Listing Photos Stink or Staging is Needed

What if your house doesn’t need any upgrades and the CMA comes back to support your asking price?

In that case, it may be the your digital listing that’s falling short. It might be that your listing isn’t encouraging much interest in potential buyers. This is especially true if it’s a buyer’s market as your listing is competing with others for a much smaller pool of house hunters.

The first place to start would be reviewing the photos of your house that you’ve included in the listing. It’s impossible to understate their importance when it comes to attracting interest in your home. Lastly, selling a vacant or messy home can be a distraction to buyers. Professional staging can pay dividends and prevent your home from sitting on the market.

Finally, there’s the actual real-estate listing description. Make sure the “bio” of the property is appealing as possible.

4. Your Real Estate Agent Is the Problem

Finally, if none of the three reasons above are responsible for your house not selling, the only other explanation is that your real estate agent isn’t doing their job.

Ask them why they think your house has been on the market for so long. If they can’t give you a reason that’s backed by data (e.g. the market just took a turn for the worse), then you should probably start looking for new representation.

At SimpleShowing, our agents handle more transactions than the typical agent, so they have a better pulse on the current market. Best of all, SimpleShowing offers the same full service as a big brokerage for a 1% listing fee.

5. High Inventory or Interest Rates

High interest rates can deter buyers from entering the market and have recently become a challenge to home sellers as of 2022. Sellers can offer incentives to help with mortgage points, which lower the homebuyer’s interest rate.

Lastly, if inventory in your area is high, this might be the culprit for your home not selling. More competition means more options for buyers. Unfortunately, this is an issue that is not possible to control as a home seller. However, you can selectively decide when to enter the market based on the inventory levels in your area.

Conclusion

Your house selling experience can be significantly impacted by a number of key factors. Understanding the dynamics of the local real estate market, along with having a competitive listing price that aligns with your home’s market value, is crucial to garner interest from prospective home buyers.

Finally, remember that real estate professionals are your allies in this journey. Selling a house can be complex, but with the right team, the process becomes much more manageable. If your house isn’t selling, don’t despair. Take into consideration the factors discussed in this article: make sure your listing price is in line with the market value, enhance your home’s curb appeal and most importantly, collaborate with a seasoned local real estate agent. These strategies can help ensure that your real estate transaction will be a success.

How Does the VA Home Loan Work?

For the vast majority of homebuyers, the process of purchasing a new house includes taking out a mortgage to finance it.

For most of those homebuyers, this entails applying for a conventional loan. These are the kinds offered by private lenders and two government-sponsored entities, the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae).

While these types of loans are often perfect fits for many borrowers, there’s another option that is ideal for a very specific group.

The United States Department of Veterans Affairs (VA) offers a VA loan that carries a number of advantages for those who qualify.

What Is a VA Home Loan?

In short, a VA home loan is a type of mortgage reserved for veterans, active duty service members, and widows of military spouses. These loans are issued by private lenders but backed by the Department of Veterans Affairs.

How Does the VA Home Loan Work?

Like FHA loans, VA loans are nonconventional loans, which means they’re backed by the government and tend to have more relaxed standards for borrowers. After all, our government wants to support servicemen and women and, worst-case scenario, it can absorb an unpaid balance.

To give you some idea of their accessibility, consider these statistics about VA loans in 2019:

  • Total Issued: 624,540
  • 61.6% were for purchasing a house
  • 38.4% were for refinancing a house
  • Average Loan Amount for Purchasing: $286,655
  • Average Loan Amount for Refinancing: $277,834
  • Percentage Issued for Purchases with No Down Payments: 62%

What Are the Requirements for a VA Home Loan?

As you just saw, VA home loans are designed to be as accessible as possible for those who are serving or have served our country.

So, what are the requirements for a VA home loan?

Generally speaking, you only need to fall into one of these five categories:

  • You’re currently an active duty service member
  • You served 90 consecutive days during wartime
  • You served 181 days during peacetime
  • You served in the National Guard or Selected Reserve for 6 years
  • Your spouse was a service member who fell in the line of duty

If you qualify for one of those categories, then all you need to apply for is a Certificate of Eligibility (COE), which you can get through the VA. It will prove to your lender that you are approved for a VA loan.

What Are the Benefits of a VA Home Loan?

Obviously, the biggest benefit of a VA home loan is that it’s clearly designed for active service members, veterans, and widows of military members who otherwise may struggle when it comes to securing a conventional loan.

Specifically, there are four benefits that every qualified candidate should know about before considering any other type of loan. With a VA home loan, there is:

1. No Down Payment Required

As we touched on above, you don’t actually need a down payment in order to secure your VA loan. Last year, the majority of borrowers took advantage of that option.

Of course, that doesn’t mean you can’t put money down, which is often a good idea, even when it’s not a requirement. If the country’s housing market takes even a small unfavorable shift, you could find yourself owing more on your house than it’s actually worth.

2. No Limit to How Much You Can Borrow

In 2020, the VA changed its terms, so that there are no limits on how much a member can borrow, provided they don’t already have an active VA loan and haven’t defaulted on one in the past. As long as you’re free of those constraints, the only “limits” will be based on your credit and income.

For borrowers who already have a loan or have defaulted, the limit for a VA loan is $510,400 in most counties and higher in those with more expensive housing markets.

3. No PMI Necessary

Many borrowers are surprised to learn that there’s actually an extra cost that comes with making a down payment of less than 20% on their home.

In that case, they are required to pay for Private Mortgage Insurance (PMI) that helps offset the extra amount of risk taken on by the lenders.

Depending on how much that risk is perceived to be, PMI can easily cost between 0.5% and 2.25% of the mortgage every year. That might not seem like a lot, but for a $250,000 home, PMI that costs 2% would mean paying another $415.66 every month!

This isn’t the case with VA loans. As they’re backed by the government, PMI isn’t required to help the lenders deal with any extra risk.

4. No Minimum Credit Score

Everyone knows that the lending process involves looking at your credit score and that it will play an integral role in the terms your borrower decides to offer. For most applicants who want conventional loans, this usually means ensuring their score is at least 620.

For those who are eligible to receive VA loans, this isn’t an issue. The VA doesn’t require a minimum credit score from borrowers.

However, credit scores still play a role. The VA can’t tolerate an unlimited amount of liability just because the government backs its loans. So, be aware that a decent credit score will still help you lock in favorable terms for your mortgage.

Find Your Home with an Experienced Real Estate Agent

There’s a lot to love about how VA home loans work, especially their minimal requirements. Even if you have a great income, impeccable credit, and plenty for a down payment, it’s still worth considering how a VA loan could be your best option.

It’s also helpful to consult with an experienced real estate agent, too. Not only are they great during the mortgage process, but they can make all the difference when it comes to picking the best possible house for that money.

At SimpleShowing, we’d love to connect you with a real estate agent who can get you started on your house-hunting journey. Even better, after you purchase your home, you’ll qualify for our Buyer Refund Program which could give you an additional 1.5% cash back on your home.

Contact us today to learn all about how we can help.

Conclusion

The VA Home Loan program offers an unmatched opportunity for veterans, servicemembers, and military families to achieve the dream of homeownership. With unique VA loan benefits, such as no requirement for private mortgage insurance, flexible VA loan eligibility criteria, and potentially lower interest rates compared to traditional mortgage programs, the advantages of this program are undeniable. Plus, the VA loan limits allow for considerable home purchases, maximizing your VA loan entitlement.

An often-overlooked feature of the VA home loan benefit is the VA funding fee, which is usually financed into the loan amount and effectively replaces the mortgage insurance typically required by other mortgage lenders. This aspect, coupled with potentially lower closing costs, further accentuates the financial benefits of the VA loan program.

To cap it off, remember that the key to leveraging the full potential of your VA loan benefit lies in understanding its nuances and working with a knowledgeable lender who is experienced in handling VA loans. Homeownership may be closer than you think with the advantages of the VA home loan program. Consult a reliable mortgage lender today to begin the journey towards securing your dream home.

What Is a Conventional Loan? Everything You Need to Know

Finding the perfect home involves something a little different for everyone, but the vast majority of house hunters will all have to go through the same step at some point: securing a mortgage.

Unless you’re going to pay for your house in cash, you’ll need to speak with a lender about securing a loan to help cover most of the cost.

For many of you, this will mean a conventional loan. While they’re fairly straight forward, picking a mortgage is such an important decision that you should understand what they entail now before you ever enter a lender’s office.

What Is a Conventional Loan?

A conventional loan refers to a mortgage that isn’t backed by the government.

Unlike FHA or VA loans – which we’ll touch on a bit later – conventional loans come from private lenders. Even though these private lenders have complete control over their loan requirements, those for down payments and incomes generally reflect the rules for Freddie Mac and Fannie Mae. Their loan limits also tend to fall in line with those set forth by the Federal Housing Finance Administration (FHFA).

Borrowers who are able to make a down payment of at least 20% aren’t required to buy mortgage insurance, either. The reasoning is that anyone who can afford that higher amount is probably not at risk of missing their mortgage payments.

Minimum Down Payments and Credit Scores for Conventional Loans

As they’re not backed by the government, conventional mortgages will almost always require larger down payments than FHA loans and others that carry less risk because government agencies guarantee their repayment.

Traditionally, this meant that private lenders demanded a down payment of up to 20%. However, this has changed recently, and many borrowers can now secure a mortgage with just 3.5% down.

There’s usually much less flexibility with credit scores, though. While every private lender gets to set their own requirement, a score of 620 is usually the minimum. For a good mortgage rate, the requirement is usually closer to 740.

Terms for conventional loans are 15, 20, or 30 years.

Aside from the down payment, borrowers usually need to pay for origination fees, appraisal fees, and, in cases where the down payment is under 20%, mortgage insurance.

All of these terms depend on the lender, though, which is why it’s always a good idea to shop around for your mortgage.

Conforming vs. Nonconforming Conventional Loans

There are actually two types of conventional loans: conforming and nonconforming.

Conforming conventional loans are the ones we mentioned earlier that conform to the guidelines set by Freddie Mac and Fannie Mae. The prime example of this conformity is how much a lender will offer for a conventional loan.

In 2020, Fannie May set the limit for a conforming conventional loan on a one-unit property at $510,400. Exceptions are made for Alaska, Hawaii, and the Virgin Islands, where the limit is set at $765,600. Therefore, if you apply for a conforming conventional loan, you should expect these limits to apply.

As the name suggest, nonconforming loans do not follow these kinds of guidelines. Nonconforming loans are meant for borrowers who wouldn’t otherwise qualify under those guidelines. One reason might be that the borrower wants more than the $510,400 or $765,000 limit. That’s why these loans are sometimes referred to as jumbo loans.

Other types of nonconforming conventional loans are designed for borrowers who would be considered “high risk.” This might be because of:

  • Excessive Debt
  • Poor Credit
  • Recent Bankruptcy

It could also be that the borrower has their eyes set on a house with a high loan-to-value ratio.

Nonconforming loans tend to be more expensive because of these added factors. It’s not just that the government is backing them, though. It’s because this added risk makes it harder to sell the loans on the secondary market.

Conventional vs. FHA Loans

An FHA loan is an unconventional mortgage because it is backed by the Federal Housing Administration. So, while they are still offered by banks and private lenders, the FHA guarantees their repayment.

These loans are designed specifically for low-income borrowers or people with bad credit (you can qualify with a score as low as 500).

Nonetheless, they have competitive interest rates and may only require a down payment of 3.5%.

This is why borrowers almost always require mortgage insurance. It offsets the perceived risk of borrowing to people who otherwise probably wouldn’t qualify for a conventional loan.

Considering Other Alternatives to Conventional Loans

Aside from FHA loans, there are other alternatives to conventional mortgages.

For example, the VA offers a nonconventional loan. They’re often the absolute best option for those who qualify.

If you’re an active duty service member, a veteran, or the widow of someone who served, you could pay for your house with a VA loan. In most cases, you won’t need a down payment, mortgage insurance, or have to worry as much about your credit score. They almost always have lower interest rates than conventional loans, too.

No other lender – conventional or unconventional – is going to be able to match those kinds of terms.

So, again, it’s worth shopping around before deciding on a lender and type of mortgage. Even finding just a slightly better interest rate will make a massive difference in how much you owe.

Speak with a Real Estate Agent Before Applying for a Conventional Loan

There are a number of reasons that it might make the most sense to go with a conventional loan. Still, it’s best to speak with a real estate agent first before you make this important decision. Their years of experience will help you better understand all of your options, so you choose the one that will work best for your unique needs.

At SimpleShowing, we can connect you with an experienced agent in your area and one of our preferred lenders to get you the best loan for your situation. Plus, when you buy a home with our team, we’ll give you $5,000 on average towards your closing costs with our Buyer Refund Program.

Contact us today to learn how to take advantage of this offer.

Conclusion

Understanding the ins and outs of a conventional mortgage loan is essential in making informed decisions on your home buying journey. This is particularly significant when juxtaposing a conventional mortgage with its widely known counterpart, the FHA loan. While the FHA loan can be more appealing due to a lower credit score requirement and smaller minimum down payment, it comes with its share of mortgage insurance premiums, which can potentially increase your monthly mortgage payments. Conversely, a conventional mortgage requires a higher credit score and larger minimum down payment, but it often comes with lower private mortgage insurance that can be removed after reaching a certain level of equity.

From a broader perspective, the Federal Housing Finance Agency sets the limits for conforming loans and jumbo loans. If your loan amount falls within these limits, you could potentially benefit from lower interest rates and a more streamlined approval process. However, if you’re considering a jumbo loan, be prepared for stricter credit and debt-to-income ratio requirements.

At the end of the day, it’s crucial to understand that the most suitable mortgage loan for you hinges upon your financial circumstances and long-term goals. Be it an FHA loan with a lower credit score and down payment requirements or a conventional mortgage with lower mortgage insurance premiums, the decision will significantly impact your monthly mortgage payment. Always strive to grasp the nuances of each loan type, particularly the details surrounding private mortgage insurance and mortgage insurance premiums, to ensure you’re making the most financially sound choice for your future.

Top 10 Best Homebuilders in the USA

The search for the best homebuilders in the US can be overwhelming. With so many options, it’s essential to find a company that offers exceptional craftsmanship, innovative designs, and a commitment to customer satisfaction.

In this article, we’ve compiled a list of the top 10 homebuilding companies in the US. These builders have established a reputation for delivering high-quality and energy-efficient homes that cater to a range of budgets and lifestyles. Find your dream home with one of these industry-leading homebuilders today!

Largest Homebuilders for Construction Homes

Modular and Manufactured Homes

1. Pulte Homes

Founded in 1950, Pulte Homes is one of the largest and most respected homebuilders in the US. They offer a wide variety of home designs, from single-family homes to luxury estates, and are dedicated to providing energy-efficient and environmentally-friendly construction. With a focus on customer satisfaction, Pulte Homes consistently ranks high in customer reviews and has earned several awards for their commitment to excellence.

2. Lennar Corporation

Lennar Corporation, established in 1954, has grown to become one of the nation’s leading homebuilders. Their innovative “Everything’s Included” approach ensures that customers receive a fully-equipped home with upscale features and state-of-the-art technology at no additional cost. Lennar’s commitment to quality and value has earned them a loyal customer base and numerous industry accolades.

3. DR Horton

As America’s largest homebuilder, DR Horton has been delivering quality homes since 1978. They offer a diverse range of home styles and floor plans to suit various budgets and lifestyles. With a focus on energy efficiency and environmentally-conscious construction, DR Horton has earned a reputation for excellence and customer satisfaction.

4. Taylor Morrison

Taylor Morrison, founded in 2007, has quickly become one of the top homebuilders in the US. Their commitment to creating exceptional homes and communities has earned them multiple awards and recognition within the industry. Known for their stunning designs, excellent craftsmanship, and customer-centric approach, Taylor Morrison is a top choice for those looking to build their dream home.

5. Meritage Homes Corp

Established in 1985, Meritage Homes has made a name for itself as one of the top US homebuilders. Their focus on energy efficiency and sustainable construction has earned them numerous awards and recognition. Meritage Homes offers a variety of home designs and floor plans, catering to a range of budgets and preferences. With a strong commitment to customer satisfaction, Meritage Homes is an excellent choice for homebuyers.

6. Toll Brothers

Toll Brothers is a luxury homebuilder known for its exceptional craftsmanship, innovative designs, and personalized customer service. Founded in 1967, they have built some of the most prestigious communities and homes across the nation. Toll Brothers’ attention to detail and commitment to quality have earned them numerous industry awards and recognition as one of the best homebuilders in the US.

7. David Weekley Homes

With over 40 years of experience in the homebuilding industry, David Weekley Homes has established a reputation for exceptional design, craftsmanship, and customer service. As one of the largest privately-held homebuilders in the US, they offer a variety of floor plans and styles to suit diverse needs and budgets. Their commitment to energy-efficient and sustainable building practices has earned them numerous accolades and a loyal customer base.

8. KB Home

Founded in 1957, KB Home is one of the nation’s premier homebuilders, known for its innovative designs and customizable floor plans. With a focus on energy efficiency and sustainable building practices, KB Home is dedicated to providing high-quality homes at an affordable price. Their commitment to customer satisfaction has earned KB Home a strong reputation within the industry.

9. Shea Homes

Shea Homes, a family-owned business since 1968, has built a legacy of quality, innovation, and customer service. Their award-winning designs and commitment to creating exceptional communities have made them one of the top homebuilders in the US. Shea Homes offers a variety of floor plans and styles to cater to diverse lifestyles, while their emphasis on sustainability and energy efficiency has earned them a devoted customer following.

10. M/I Homes

M/I Homes, established in 1976, is a leading US homebuilder known for its commitment to quality and customer satisfaction. They offer a wide range of floor plans and home styles, ensuring that every buyer can find the perfect fit for their needs and budget. With a focus on energy efficiency and environmentally-friendly construction, M/I Homes has received numerous industry awards and recognition for their dedication to excellence.

Conclusion

Gross Revenue

When it comes to finding the best homebuilders in the US, these top 10 companies stand out for their unrivaled quality, craftsmanship, and commitment to customer satisfaction. These companies are definitely some of the best in home building, giving home buyers the best options for their own home.

Active adult communities

Whether you’re in the market for an affordable starter home or a luxurious custom estate, these home builders offer a range of options and designs to cater to your unique preferences. Home shoppers committing to energy efficiency can go beyond using energy-efficient appliances in helping with their energy bills. You can also look into existing homes with affordable prices.

Energy Star Partner

By choosing one of these industry-leading companies, you can feel confident that you’re investing in a high-quality, energy-efficient, and well-designed home that will stand the test of time. Begin your journey to homeownership today by choosing any home builder from this list, and create the dream home you’ve always envisioned.

Top Tips That Will Help You Decorate Your Bathroom

Are you looking for some tips that will help you transform your bathroom into a relaxing oasis? Whether you’re dealing with cramped quarters or simply want to embrace the latest trends in home design, there are plenty of ways to give your bathroom an upgrade. From choosing the right paint colors and materials to finding creative DIY solutions, we’ve gathered up all the best tips so that decorating your bathroom won’t be a drain on your time or wallet.

With these easy-to-follow steps, giving your space an instant refresh can be painless and enjoyable. Follow our workflow background information and get ready to unleash your inner interior designer!

Start with a plan – decide on a color scheme, style, and budget before you begin shopping for materials

Decorating your bathroom should start by coming up with a plan. Consider the type of color scheme and style you have in mind, as well as the budget you have available. Visiting bathrooms showrooms can be an excellent way to get a feel for what is out there. There are so many possibilities that it’s easy to get swept away by all the options, but keeping your initial vision in mind will help ensure success when it comes time to decorate.

Take inspiration from online images or catalogs to create the look you want before committing, and remember that bathrooms are one of the most heavily used areas of any home – so make sure you select pieces that suit your needs for years to come.

Choose the right fixtures

Don’t underestimate the impact of choosing the right fixtures. A stunning waterfall faucet can effortlessly create a sophisticated aesthetic in any room while selecting a sink and shower head that complements your overall design can add an element of luxury that pulls the space together beautifully. Don’t be afraid to get creative with your choice and decide on something that reflects your individual style – from modern and minimalistic to rustic and whimsical, there are endless possibilities when it comes to picking out the perfect fixtures for your bathroom.

Consider using wallpapers to add texture and pattern

Wallpapers are a great way to add texture and pattern to any room, and the bathroom is no exception. These days, wallpapers come in a variety of colors and designs, so you can find something that will fit your style needs. What’s more, they’re easy to apply and just as simple to remove if you ever want to switch it up.

And when choosing colors, experiment with bright tones and patterns for a modern look or muted pastels for a classic vibe. Wallpapers are versatile decorations that can take your bathroom design from ordinary to extraordinary!

Hang art in strategic places

Another tip for decorating your bathroom is to hang art in strategic places. This will help create visual interest in the room and draw the eye to particular points, such as beneath a bright window or near vanity lighting. Consider mounting artwork with custom frames on the wall that can balance out the scale and create a focal point when designing your bathroom.

When selecting art, consider what colors complement the other elements of decoration that you’ve chosen to give your overall design added appeal. With careful consideration, you’ll be able to achieve a results-driven bathroom design that combines style and practicality with cleverly placed framed artwork.

Invest in luxury towels and rugs to give it an upscale feel

If you want to give your bathroom a luxurious feel without spending a fortune, investing in high-end towels and rugs is the perfect solution. Quality towels and rugs made with luxurious fabrics will instantly upgrade the look of any bathroom, and can often be bought at surprisingly low prices if you take the time to shop around. Go for timeless styles that will blend perfectly with any décor, such as plush white towels or subtle yet stylish gray or tan rugs.

Add some greenery for a fresh and inviting atmosphere

Last but not least, adding some greenery is a great way to give a fresh and inviting atmosphere to your bathroom. A potted plant in need of bright light, such as ferns or ivy, will help bring life into the room and also help purify the air within your home. If you don’t want to commit to a live plant, choose something artificial that still looks realistic and will make the room look vibrant. Greenery can really transform a boring bathroom space into one that feels tranquil and relaxing.

Decorating your bathroom can be one of the most rewarding improvement projects that you take on. By taking into account size, style, and budget and implementing the above tips, you can create a chic bathroom oasis in no time. It’s all about finding the right balance between functionality and aesthetics that works for you. Striking this balance will ensure your bathroom looks great and offers practical solutions for all of your daily needs. Use these top tips to decorate your bathroom the way you want and make it an inviting space where you can relax, get ready in the morning, or retreat to at night. A little planning and creativity can go a long way when it comes to transforming a dull washroom into a stylish and inviting area!

How to Make an Offer on a House

Ready to take the plunge into homeownership? We’ve all been there… you’re on the fence thinking if it’s better to rent or buy and then suddenly you get the bug to buy and can’t stop opening the Zillow app.

Buying a home is one of the most rewarding experiences – giving you a true sense of ownership and allowing you to build equity instead of giving your landlord your rent money!

How to Make an Offer on a House

Buying a house can also be an intimidating process, especially if you’ve never done it before. But don’t worry, making an offer on a house is a lot simpler than you might think. In this article, we’ll give you our pro tips on how to make an offer on a house and how to get your offer accepted.

Step 1: Choose a competitive offer price

Once you find a house that you love in your price range, you’ll need to determine your offer price. You’ll want to make an offer that is reasonable, but you also don’t want to overpay. Pay close attention the number of “days on market.” If the home only been on the market for 1-3 days, you’ll have to be more aggressive with your offer.

One way to determine your offer price is to look at comparable homes in the area that have recently sold. Your real estate agent can help you with this. If there are multiple offers on a property, you’ll likely have to offer over asking price – in which case, the comps become irrelevant unfortunately.

-> Pro tip: in 2022, houses sold for 98% on average nationally. In hot markets, houses sold for 101% of asking price.

Step 2: Provide earnest money of at least 1%

The last thing you want to do is make a great offer, but skimp on the earnest money deposit. Earnest money is a good faith deposit and is typically 1% of the home price. But keep in mind that more is better! An earnest money deposit of 2-3% can offset of low offer or help you stand out among other buyers.

Earnest money is refundable if you back out, but you’ll still have to write a check (or send a wire). So, you’ll need the cash available once you write the offer. Typically, you’ll deliver earnest money to the broker, attorney or title company within 3-7 days of a binding agreement if your offer is accepted.

Step 3: Use contingencies in your offer

When making an offer on a house, it’s important to consider contingencies. Contingencies are conditions that must be met in order for the sale to go through. For example, you may want to make the sale contingent on a home inspection or the appraisal. These are the two most common contingencies. The home inspection contingency is commonly referred to as the due diligence period.

Step 4: Be a savvy negotiator

In a hot market when the seller has more than one offer, it’s rare for a seller to accept the first offer that comes in. So, be prepared to negotiate. Remember, negotiation is a give-and-take process, so be willing to compromise. These are the terms that are important in a negotiation:

  • Earnest money: generally this needs to be 1% but 2% is even stronger.
  • Due diligence (inspection period): make your offer stronger by keeping this short.
  • Close date: generally you’ll want to close in 30 days but a savvy negotiator will uncover the seller’s desired close date and write the offer to reflect this.
  • Special stipulations: you’ll want to minimize any special stipulation if there are multiple offers, otherwise this could be your chance to ask for special concessions.
  • Closing costs: you could ask for a seller contribution, which would offset your closing costs.

Step 5: Write a personal letter

One way to make your offer stand out is to write a personal letter to the seller. In this letter, you can explain why you love the house and why you would be the perfect buyer. This can be a great way to make a personal connection with the seller and increase your chances of getting your offer accepted. Keep in mind that personal letters are not allowed in some states due to discrimination laws.

Step 6: Make a wise counteroffer

Inevitably, the seller will counter one or more of the terms of your offer. Keep in mind that they may counter something other than the price. It is very common for sellers to counter the closing date, the financing contingency, earnest money amount or special stipulations.

This is when you can make a “best and final” offer or express an interest to “meet in the middle” on a given term. It’s also a great opportunity to ask for a seller concession, which is a monetary contribution towards your closing costs.

Final Tips for Making an Offer on a Home

The process of buying a house can be lengthy, and it’s not uncommon for there to be some bumps along the way. But if you’re patient, you’ll eventually find the perfect home. In a hot seller’s market, you might need to compromise on a few things – whether that be location, price, condition or size of the home.

Once you begin house-hunting, you’ll want to speak to a loan officer or get pre-approved for a mortgage. You don’t necessarily need to pull your credit, you simply need to determine how much house you can afford.  If the asking price for your dream home is $400,000 but you’re only pre-qualified up to $380,000, it might be best to keep shopping.

Making an offer on a house doesn’t have to be intimidating. By getting pre-approved for a mortgage, determining your offer price, considering contingencies, and negotiating key terms, you’ll be well on your way to becoming a homeowner. Happy house hunting!

Multi-Family Property Investing

Multi-family property investing is an increasingly popular and profitable avenue for real estate investors. By investing in multi-family properties, individuals can generate consistent cash flow and build long-term wealth.

This article will provide an in-depth understanding of multi-family property investing, discussing the benefits, strategies, and essential considerations for success.

Benefits of Multifamily Real Estate Investing

Multifamily investing

1. Steady Cash Flow

One of the primary benefits of multi-family property investing is the potential for steady cash flow. When you invest in a multi-family residential property, you can earn income from multiple tenants simultaneously. This can help to offset expenses and create a regular income stream that is often more reliable than single-family rental properties.

2. Easier Management

Managing a multi-family property can be simpler than managing multiple single-family properties. With a multi-family property, you have all of your units in one location, making it easier to oversee maintenance, tenant issues, and other aspects of property management. This can save both time and resources, especially if you choose to work with a professional property management company and hire a property manager.

3. Scalability

Investing in multi-family rental properties allows for greater scalability in your real estate portfolio. Instead of purchasing multiple single-family properties, you can acquire a single multi-unit property to increase your rental income and overall investment. This can lead to faster portfolio growth and greater wealth accumulation.

4. Financing Opportunities

Financing multi-family properties is often more accessible than single-family properties, as lenders view these investments as lower-risk due to their income potential. Additionally, government-backed programs, like the FHA (Federal Housing Administration) and Fannie Mae, offer competitive loan options for multi-family investors, making it easier to secure financing and grow your portfolio.

5. Tax Advantages

Multi-family property investors can benefit from various tax advantages, including depreciation, which allows you to deduct the cost of the property over time. Additionally, expenses related to property management, maintenance, and improvements are tax-deductible, reducing your overall tax liability.

Strategies for Multi-Family Property Investing

Residential rental property

1. Buy and Hold

The buy and hold strategy involves purchasing a multi-family property, holding onto it for an extended period, and collecting rental income. This approach allows you to benefit from long-term appreciation, while the property’s value increases over time.

2. Fix and Flip

With the fix and flip strategy, investors purchase a multi-family property in need of repair, renovate it, and sell it for a profit. This method can provide a quicker return on investment, but it requires expertise in property renovation and market timing.

3. Value-Add Investing

Value-add investing involves acquiring underperforming or distressed multi-family properties, making improvements to increase rental income, and then holding or selling the property for a profit. This strategy can lead to significant returns on investment, as you capitalize on the property’s untapped potential.

Essential Considerations for Multi-Family Property Investing

Multi-family real estate

1. Market Research

Thorough market research is crucial for successful multi-family property investing. Analyze local market trends, rental rates, vacancy rates, and population growth to identify promising investment opportunities. It’s also essential to understand the local economy and employment landscape, as these factors can significantly impact rental demand.

2. Property Analysis

Before investing in a multi-family property, conduct a thorough property analysis to assess its potential. Evaluate the property’s location, age, condition, and amenities. Additionally, consider the property’s historical occupancy rates, rental income, and expenses to determine if it’s a sound investment.

3. Financing

Securing financing is a critical aspect of multi-family property investing. Research various loan options, including conventional loans, government-backed loans, and private lending. Ensure you have a solid credit score and a healthy debt-to-income ratio to improve your chances of securing favorable loan terms.

4. Property Management

Effective property management is vital for maximizing your investment returns. Decide whether you will manage the property yourself or hire a professional property management company. Keep in mind that self-management can be time-consuming and requires a strong understanding of tenant relations, maintenance, and local laws.

5. Exit Strategy

Developing an exit strategy is essential for any real estate investment. Determine your long-term goals for the property and establish a plan for when you may want to sell or refinance. This can help you make informed decisions about property improvements, financing, and other aspects of your investment.

Conclusion

Multifamily Property

Multi-family property investing offers a wealth of benefits, including steady cash flow, easier management, scalability, financing opportunities, and tax advantages. By employing various strategies, such as buy and hold, fix and flip, or value-add investing, you can maximize your returns and build long-term wealth.

Commercial Real Estate Investing

However, it’s essential to conduct thorough market research, analyze properties, secure financing, manage your property effectively, and develop an exit strategy to ensure success in your multi-family investment endeavors.

Multifamily Properties

By understanding the dynamics of multi-family property investing and implementing these strategies and considerations, you can create a profitable and sustainable real estate portfolio. With patience, diligence, and a well-informed approach, multi-family property investing can be a lucrative way to diversify your investments and achieve financial freedom.

Top Real Estate Marketing Ideas to Boost Your Business in 2023

The real estate market is a highly competitive industry, with real estate agents and brokers constantly looking for creative ways to stand out and attract new clients. To succeed in this field, it’s essential to have a strong marketing plan that incorporates both traditional and digital strategies.

In this article, we’ll share some of the top real estate marketing ideas for 2023 that can help you generate leads, build brand awareness, and ultimately, grow your business. Get your real estate marketing plan ready with these ideas.

1. Leverage the Power of Social Media

Real Estate Marketing Ideas

In today’s digital age, social media platforms are indispensable tools for promoting your real estate business. Create a strong presence on popular platforms like Facebook, Instagram, Twitter, and LinkedIn to reach a wider audience and showcase your properties.

Here are some tips to optimize your social media marketing efforts:

  • Post high-quality images and videos of properties
  • Share valuable content, such as market insights and home improvement tips
  • Engage with your audience by responding to comments and messages
  • Use relevant hashtags to increase the visibility of your posts

2. Invest in Professional Photography and Videography

Marketing Strategies

High-quality visuals play a crucial role in attracting potential buyers and sellers. Invest in professional photography and videography services to showcase your properties in the best possible light. Additionally, consider offering virtual tours and 360-degree videos, as these can provide a more immersive experience for potential clients.

3. Create a User-Friendly Website

Real Estate Website

A professional, user-friendly website is a must for any real estate agent or broker. Ensure that your website is easy to navigate, mobile-responsive, and includes essential features such as property search functionality, contact forms, and client testimonials.

To improve your website’s SEO, focus on creating valuable and relevant content with targeted keywords, and optimize your site’s meta tags and descriptions.

A good website also requires solid hosting underpinning it to ensure performance is top notch. Using a reputable service, like the web hosting solution from NameHero, is a must in this context.

4. Utilize Content Marketing

Real Estate Blogs

Content marketing is an excellent way to establish yourself as an expert in the real estate industry and drive traffic to your website. Create engaging blog posts, infographics, and videos that address common questions and concerns of home buyers and sellers.

In a digital-forward world, even the real estate industry can benefit from innovative technologies; you can create art using AI to make compelling visuals for your blog content, which in turn can make your real estate posts more engaging and memorable for your audience. Topics can include market trends, neighborhood guides, home staging tips, and mortgage advice.

5. Develop a Strong Email Marketing Strategy

Target Audience

Email marketing remains one of the most effective ways to nurture leads and maintain relationships with existing clients.

Build a robust email list by offering valuable resources, such as market reports, e-books, or exclusive property listings in exchange for contact information.

Segment your list based on clients’ interests and preferences to send targeted email campaigns, and always include a clear call-to-action to encourage engagement.  Pro Tip: Always use a business email address to send out the marketing mailers to avoid landing up in the spam of the end user.

6. Partner with Local Businesses

Local Community

Establishing partnerships with local businesses can help you expand your reach and build a strong referral network. Consider collaborating with home improvement contractors, interior designers, mortgage brokers, and other professionals in the real estate industry.

Host joint events, cross-promote each other’s services, and share referrals to create mutually beneficial relationships.

7. Utilize Google Ads and Facebook Advertising

Real Estate Listings

Paid advertising on platforms like Google Ads and Facebook can help you reach a wider audience and generate leads quickly. Target your ads to specific demographics and locations to ensure they reach your ideal clients.

Utilize remarketing strategies to keep your brand top-of-mind for potential customers who have previously visited your website or interacted with your content. Monitor your ad campaigns regularly and adjust your targeting and budget as needed to maximize ROI.

8. Optimize Your Local SEO

Search Engine Optimization

Local SEO is essential for real estate agents, as most clients search for properties and agents within their desired area. Optimize your Google My Business listing by including accurate information, high-quality images, and encouraging clients to leave reviews.

Also, create location-specific content on your website and use geo-targeted keywords to improve your visibility in local search results.

9. Host Webinars and Virtual Events

Mobile Devices

Hosting webinars and virtual events is an excellent way to showcase your expertise and connect with potential clients in a more personal manner.

Topics can include home buying or selling tips, local market updates, or expert panels featuring other professionals in the real estate industry. Promote your events through social media, email marketing, and local online communities to attract a diverse audience.

10. Leverage Testimonials and Reviews

Past Clients

Client testimonials and reviews are powerful marketing tools that can help establish trust and credibility. Encourage satisfied clients to leave reviews on platforms like Google, Facebook, and Zillow, and feature their testimonials on your website and marketing materials. Positive reviews can significantly influence a potential client’s decision to work with you.

Conclusion

Real Estate Marketing Strategy

In the competitive world of real estate, staying ahead of the game requires a comprehensive and dynamic marketing strategy. By incorporating these top real estate marketing ideas into your plan, you can build a strong online presence, generate more leads, and ultimately grow your business.

Real Estate Business

Remember, the key to success lies in continually adapting and refining your marketing efforts to stay in tune with industry trends and consumer preferences. Stay proactive, innovative, and client-focused to thrive in the ever-evolving real estate market.

How to Sell Your House

Most people don’t know how to sell a house, but if you’re hoping to put yours on the market soon, you are going to want to know what to expect.

After all, one mistake could be extremely costly.

So, before you move forward with putting a “for sale” sign in your front yard, make sure you know how to sell a house first.

6 Steps You Must Take to Sell Your House

Fortunately, by the time you finish this article, you’ll know exactly how to sell a house. All you have to do is follow these six simple steps.

1. Decide How You’ll Sell Your House

This first one is probably the easiest. The vast majority of homeowners still use real estate agents when selling their houses. If you’re like most owners, you’ll choose to do the same and engage a property agent to sell your home.

However, it’s worth pointing out that For Sale By Owner is also an option.

If you have the time and are familiar with real estate, you may be able to save some money by handling the sale yourself. Otherwise, it might actually be a costly mistake to take on this extra work.

Furthermore, low-commission real estate agents are becoming commonplace throughout the country. With this method, you can get the support you need while also making the most profit during your home sale. There are many options out there, so make sure to do your research to find out which option suits you best. At SimpleShowing, we offer a full service listing for only 1%.

2. Determine How Much You Want to Sell Your House For

The next step is a lot more involved.

It also tends to be the step where a lot of homeowners get stuck. After all, no one wants to list their house for too little. At the same time, if you ask too much for your house, you probably won’t see a lot of interest and your listing will suffer as you eventually have to drop the price.

This is one more reason to work with an experienced real estate agent.

Among other things, they’ll know how to put together a Comparative Market Analysis (CMA) that will not only tell you what you should price your house at but why.

A professionally-prepared CMA will show you what comparable homes have sold for in the area, taking into consideration other factors like renovations or upgrades that may have been done.

This is why CMAs are so great for peace-of-mind when selling your house. It takes the guesswork out of pricing your home, so you can move forward with confidence.

3. Prepare Your Home for Listing

Once you’ve established the right price for your house, you’re almost ready to list it.

First, you’ll need photographs, though, which is why you should ensure your home is looking its best by:

  • Decluttering – Selling your house is the perfect time to throw out, give away, or sell those things you simply don’t need anymore. Hold yourself to this rule: everything stays once you move into your new house. A lot of people convince themselves they’ll go through their belongings while unpacking to decide what’s worth keeping. Of course, this is usually just a stall tactic. If you aren’t 100% sure you’ll have a place for something in your new house, sell it, give it away, or toss it.
  • Adjusting Your Décor – Your home may be a lot tidier after the decluttering process, but you should still go through a second time and look for any opportunities to depersonalize your décor. Most people know that removing family photos makes it easier for potential buyers to see themselves in the house, but you can take other steps, too. For example, loud colors, busy wallpaper, and collectables can also be distracting. While removing these personal touches may make your home feel boring, it may also help it sell faster.
  • Handling Any Maintenance Issues – Finally, now would be the time to address any small projects you may have been putting off. Does your HVAC system need its air filter changed? Is your hot water heater due for a flushing? Aside from mowing it, could your lawn use a little love?

Once you have your home looking flawless, take high-quality photos to capture this perfection.

4. List Your House and Market It

Out of all of the steps mentioned here, this is one of the most important. The success of your home sale is highly dependent on the exposure of your listing. Again, an experienced real estate agent can help here. Even better, you can list for 1% with a SimpleShowing Agent to save you money and get your home the maximum exposure.

Whichever way you choose to list, it’s important to make sure your home is getting in front of potential buyers. If you list your home on the MLS, you will get exposure from all of the most popular real estate websites like Trulia, Zillow, Realtor.com and more. Plus, most experienced agents offer a marketing plan, so it’s important to ask about then when deciding who to list with.

If you decide to go the “For Sale By Owner” route, you may have a harder time getting exposure as you’ll have to figure out your own ways to market your listing. In addition, you won’t have access to the MLS and some of the websites mentioned above.

Once you decide how you plan to list your home, you should get professional photos taken. The vast majority of buyers are searching for homes online, so you want to make sure your house looks its best and stands out to drive them to tour. If you’re working with an agent, they will likely schedule photos immediately.

Once your home is listed, they’ll put a sign in your yard that announces it’s for sale and your listing will go live online.

5. Stage Your Home For Showings

Not enough emphasis can be placed on the importance of staging your home. Though it could cost you $300 to $500 – or even more – the results are worth it.

In many markets, every home for sale gets staged, so yours will stand out for all the wrong reasons if it isn’t.

Alternatively, in other markets, staging your home may help it capture the spotlight, meaning it sells faster or even for more than you had hoped.

According to the National Association of Realtors (NAR), 17% of sellers reported that staging their homes increased offers by 6-10%.

6. Negotiate with Potential Buyers

If you followed the five steps above, you shouldn’t have much trouble attracting buyers to your home.

Instead, the real challenge will come from negotiating with them, so you feel like you received a fair amount for your house.

While your agent will be a huge help during this step, here are some factors to consider:

Ultimately, it will be completely up to you to decide what kind of offer is acceptable, but it’s worth keeping these factors in mind and your real estate agent’s counsel.

Are You Ready to Sell Your House?

selling your househttps://www.simpleshowing.com/blog/how-to-sell-your-house

While there’s plenty you need to do as an owner to successfully sell your house, securing the help of an experienced real estate agent will make all the difference.

At SimpleShowing, we’d love to connect you with one. Even better, we’ll connect you with an agent who only charges a 1% listing commission.

Contact us today and we’ll tell you all about our simple process.

Conclusion

Conclusion

In determining the appropriate asking price for your property, a comparative market analysis plays an instrumental role. This is a strategic way to understand your home’s sale price in the context of the local real estate market. A good real estate agent, experienced in these kinds of analyses, can be an invaluable asset. They have a deeper understanding of the nuances and fluctuations in the real estate transaction process, and can give you insights that could potentially increase the final sale price of your home.

Furthermore, you might consider seeking the advice of a real estate attorney. This professional can provide legal assistance to ensure all documentation and legal requirements are handled correctly, which can protect your interests and possibly avoid costly errors.

Engaging with a great real estate agent can help streamline the selling process. These agents have networks of prospective buyers and professional connections, such as other agents and attorneys. Their knowledge of the National Association regulations and the local real estate market trends can be extremely beneficial in maximizing your profit and reducing the time it takes to sell your home. Plus, they can negotiate effectively with the buyer’s agent, further influencing the final sale price. The home selling process can be complex, and having an experienced partner on your side can make a significant difference.

Lastly, it’s important for home sellers to understand their remaining mortgage balance and how it affects the net profit from the sale. Once the house is listed on the multiple listing service, attracting potential buyers becomes a crucial task. Highlighting key selling points and showcasing your property in the best possible light is essential. Remember, every aspect of your home – from its location, size, condition, to the price – impacts the perception of prospective buyers. Navigating these aspects proficiently can help home sellers turn a real estate transaction into a successful sale.

How Much Will My Mortgage Be?

If you’re beginning the process of looking for a new home, you’ve probably begun asking yourself a lot of crucial questions.

For example, what kind of house do you want?

Where do you want it to be?

Of course, before you begin searching for the perfect home, the most important question you have to answer is, “How much will my mortgage be?”.

8 Factors That Affect What Your Mortgage Will Be

How much your mortgage will be depends on how much your lender believes they can risk offering you.

This is why it’s a good idea to shop around for your mortgage. Different lenders follow different guidelines when assessing applicants.

However, every lender will consider the following eight factors when determining how much they can offer you as a mortgage.

1. Gross Income

This first factor is fairly self-explanatory. Lenders want to know how much you regularly earn from your job as this will give them a great point of reference for how much you can afford to pay them every month.

Obviously, the more you make, the more of a mortgage you can afford.

Just keep in mind that your gross income is what you make before taxes or any other deductions. It should also include any bonuses you receive.

Aside from your main occupation, other sources of income matter, too. Do you do any part-time work on the side? Do you receive disability or Social Security benefits? Child support?

All of these factor into the “front-end ratio”, which is an important topic we’ll cover in just a moment.

2. Assets

Similarly, lenders will be interested in your assets – specifically, your liquid assets – as these could also be used to help pay your mortgage. It also wouldn’t be ideal to, say, cash out your 401(k) to make your monthly payments, but showing this would be an option will still work in your favor.

Other examples of these types of assets include:

  • Your Savings
  • Your checking Account
  • Certificates of Deposit
  • Stocks
  • Bonds
  • Mutual Funds
  • Other Retirement Accounts

You can even list any large amounts of cash you keep on hand, though you’d need to document their sources on your application.

3. Debts

While your gross income and assets tell a lender how much you can spend every month, your debts show them how much you’re already spending.

The more you’re already spending, the less your mortgage will be for as lenders don’t want to risk a default because you depleted your funds.

Debt covers any payments you need to make because of money you’ve borrowed. Common sources would be student loans or credit cards. Debt doesn’t include things like your phone bill or utilities, even though they require regular payments.

4. Liabilities

Most people won’t have to worry about this factor, but if you own your own business, you may have liabilities that a lender will want to know about.

If you’re a sole proprietor or a partner, you’ll most likely need to disclose any business liabilities during your mortgage application. This is why, if possible, you may want to form an LLC before applying.

5. Front-End Ratio

Okay, we can now discuss the all-important front-end ratio that we alluded to earlier.

In short, your front-end ratio is the percentage of your annual income that could go toward paying your mortgage. Most lenders will be comfortable with any mortgage that represents less than 28% of your gross annual income.

So, for example, if you make $100,000 a year but need to spend $20,000 of it on your debts, your debt-to-income ratio is 5:1.

That still leaves plenty of room for other ongoing expenses (e.g. groceries, utilities, etc.) and a mortgage that wouldn’t take up more than 28% of your income.

6. Back-End Ratio

Your back-end ratio is just another name for your debt-to-income ratio.

If you’re applying for a mortgage, you’ll be a much more appealing applicant if it’s below 36%.

Combined, these two ratios are what is commonly referred to as the “28/36 rule.”

Unless you absolutely must buy a house in the immediate future, take the time to bring these two ratios into their respective percentages and you’ll be able to qualify for a much better mortgage.

7. Your Credit Score

Your credit score doesn’t affect how much your mortgage will be for, but it does directly affect how much your interest payments will be.

The reason is simple: your credit score tells lenders how reliable you are when it comes to making regular payments.

The better your score, the better they’ll feel about keeping interest low. The worse your score is, the more they’ll need to raise that interest to justify the perceived risk of lending to you.

Once again, if you have some time before you must buy a house, it’s worth working on your credit score. That interest payment will make a massive difference in how much you spend on your mortgage. Even dropping your interest rate by a percentage could save you $1,000 a year.

8. Your Down Payment

Finally, your down payment will arguably have the biggest impact on how much your mortgage will be. This is the amount you’re able to immediately put down on the house.

Lenders love to see a large down payment because they never need to worry about that money again. Even with a great credit score, they can’t be 100% sure you’ll make all of your payments. The same goes for a small front-end ratio. Any number of things could happen (e.g. you lose your job) that keep you from making monthly mortgage payments.

However, nothing can affect your down payment once it’s made. The lender gets that money right away and keeps it no matter what.

Therefore, a large down payment can result in a lower interest rate.

At the very least, it will drop the amount you need to pay every month by dropping the total you’ll need to borrow from a lender.

Speak with a Real Estate Agent About Your Mortgage Payment

Buying a house is always easier with a real estate agent, but they can also be a lot of help when it comes to better understanding how much your mortgage payment will be.

With SimpleShowing, it’s easy to find an experienced real estate agent in your area, but we can also give your budget some help, too. By buying a home with a SimpleShowing Agent, you could earn up to $15,000 cash with our Buyer Refund program.

Contact us today to learn all about how it works!

Conclusion

Understanding how much your monthly mortgage payment will be is crucial to financial planning when buying a house. The combination of principal, interest, property taxes, and homeowners’ insurance forms a significant part of the total sum. Yet, other considerations, such as private mortgage insurance, may also apply if your down payment is less than 20% of the house price. This need to pay private mortgage insurance can add a significant amount to your monthly payment, underscoring the importance of careful financial forecasting.

A mortgage calculator can be an invaluable tool to provide an estimate of these costs. By inputting your loan term, interest rate, and property price, the mortgage payment calculator will provide a comprehensive breakdown of your expected monthly payment. However, always remember to add in the costs of property taxes, homeowners’ insurance, and any required private mortgage insurance. This way, you can obtain a more accurate representation of your expected mortgage expenditure.

Finally, maintaining open communication with your mortgage lender can go a long way in helping you plan for your monthly payments. A lender can provide personalized advice based on your financial situation and even provide options that might help you reduce or avoid costs such as mortgage insurance. By incorporating this comprehensive understanding of all the factors influencing your mortgage payments, you can better plan your finances and avoid potential pitfalls, leading to a smoother homeownership journey.

Should You Buy A Home Amidst COVID-19 and Social Distancing?

Typically, this time of year starts the busy season for the real estate market.

Around this time, more and more sellers are either listing or getting their homes ready to sell in the coming months. On the other hand, home buyers are typically beginning the preapproval process with mortgage lenders and checking online real estate websites hourly to see the newest listings to hit the market.

This was the case about a week ago, but now you may be wondering if you should put your plans to buy a home on hold? With the recent spread of COVID-19 and increasing sentiment of social distancing, there have been changes to the market that you should consider before you decide to buy a home.

3 Factors to Consider When Deciding If You Should Buy A Home Right Now

1. Income Stability

As many industries are suffering from the impact of COVID-19 and social distancing, people all across the country are finding themselves without work or a definite timeline of when they will receive their next paycheck.

On the other hand, some industries are booming as a result of increased demand for delivered goods and technical needs for many people now working from home.

Wherever you fall among this change, it is important to realistically look at your source of income and determine if it is stable or not. If your income is not affected by this change, then it may be a good time to start building equity in a tangible property. If you are short on cash for the unforeseeable future, then it is probably best to postpone your home search to avoid putting yourself at an even greater financial risk.

2. Mortgage Rates Are Lower Than Ever

Mortgage rates have been on the decline for a while now and are expected to stay low.

According to Freddie Mac this week, the current rate for a 30-Year loan is hovering around 3.36% and 2.77% for a 15-Year loan.

As a result, many homeowners are rushing to refinance to take advantage of these low rates, but what does this mean for homebuyers?

With mortgage rates at historic lows, this could be a good time to get preapproved and lock in a low rate if you’re in the market to buy.

However, with the rising demand, lenders are having a hard time keeping up and are actually offering different rates. So if you are planning to take out a mortgage, it may be a good idea to shop around.

3. Urgency to Move

Whether or not you have a strong need to move could be a big factor to consider right now when debating on halting or continuing your home search.

Even though the coronavirus has drastically affected the lives of almost everyone around the world, this doesn’t mean that life in itself has stopped.

Some people are in the middle of job relocation which means they have to find housing in a new place. On the other hand, many renters have leases ending which poses an urgent need to figure out if they are going to sign another lease or start building equity in a home. This is also the time when parents are starting their moving process to get into a new home before the coming school year.

Whichever the case may be, it’s a good idea to consider whether you feel this move is urgent or if you feel more comfortable waiting a little longer to see how things pan out.

How to Stay Safe When House Hunting

As you can see, the recent changes across the world with the spread of COVID-19 are impacting life tremendously. However, that doesn’t mean you can’t carry on and move forward.

If you are looking to continue your home search and take advantage of some of the positive opportunities out there right now for homebuyers, then there are several things you can do to stay safe and continue house hunting.

4 Ways to Protect Yourself While Buying A Home

  1. Search for homes online. Most homebuyers are already searching online, so this one won’t be a big change. Luckily with the numerous real estate websites out there today like SimpleShowing, Zillow and Realtor.com, you can search all of the available homes on the market without ever leaving your couch. Some websites even show virtual tours that can give you an even better feel of what the home is like inside.
  2. Protect yourself while touring homes. If you’ve found homes that you’d like to see, then you can also book showings online without needing to leave your home. To protect yourself during the in-person tour, it is probably best to wear gloves and avoid touching items with your hands. You can also request that the showing agent either wait outside while you tour or kindly ask them to keep the recommended distance of 6 feet away to protect both parties. If you do not feel comfortable touring in-person, you can also request a virtual tour from SimpleShowing where the agent will video call you from the property to show you around. To request a virtual tour, just book a showing as normal and mention the “virtual tour” in the notes section.
  3. Add a Coronavirus Addendum to your contract. Many states are now offering the use of a coronavirus addendum that allows extensions of things such as the closing date, due diligence and financing period. This can also protect buyers should things fall through on the lender’s side as a result of the pandemic.
  4. Keep all in-person contact with your mortgage lender, realtor and all involved parties to a minimum. With the technology available, you can sign documents online, have meetings virtually, and discuss important topics over the phone which should enable you to keep contact with all involved parties to a minimum. Your agent should be able to write up your offer online and send it to you virtually, so you don’t have to be present to make a move on a house you love. In addition, some real estate attorney’s have even started limiting the number of people who attend closings, so you will be protected when you need to close at the end of the process.

Chat With SimpleShowing at No-Obligation to Discuss Your Situation

If you would like to speak to a professional who is up to speed on the current market, then you can call our team of real estate professionals at no-obligation to figure out what’s the best next step for you.

To reach our team, call us at 833-500-7469 or schedule a call with a buyer specialist today.

Plus, if you decide to buy, we’ll give you an average check of $5,000 towards your closing costs or as cash at closing with our Buyer Refund Program.

Conclusion

The tumultuous global economy, coupled with the uncertainties of the COVID-19 pandemic, has indeed impacted the real estate sector. Yet, real estate agents have adeptly navigated these uncharted waters, enabling property buyers to continue investing despite the crisis. The housing market has shown incredible resilience, with property prices remaining steady, even as other sectors like the stock market and small businesses have felt the brunt of the pandemic.

Lower credit scores, which were once a hurdle for potential home buyers, are now less of a concern as many lenders have adjusted their requirements. There’s a significant increase in home loan approvals, and mortgage applications are on the rise. Interest rates are at historic lows, making it an opportune time for home buyers to secure a home loan. However, it’s critical to get pre-approved before diving into the market as lenders are implementing stricter criteria due to economic uncertainties.

The dynamics of the real estate market have also transformed, with many locations reporting multiple offers on properties and home inspectors adapting to social distancing protocols. Moreover, despite a higher down payment requirement in some cases, there’s still a robust demand from buyers. Overall, the decision to buy a home amidst COVID-19 and social distancing is a personal one. With the help of experienced real estate agents and a thorough understanding of the current market dynamics, potential home buyers can make informed decisions that best suit their financial situation and lifestyle preferences.

How to Make a Counteroffer in Real Estate

A lot goes into putting your house up for sale, but one of the hardest steps will be deciding how much you should ask for it.

Even then, you may still receive an offer that comes in just below what you decided on.

While the right move is often to accept that offer and proceed with selling your house, you should know how to counter it just in case.

Understanding how to make a counteroffer in real estate could easily net you thousands of dollars in the end.

Plan on a Counteroffer

Wouldn’t it be great if you listed your house for the price you believed it was worth and someone immediately offered you that amount?

Unfortunately, more often than not, homeowners get offers that are less than the amount in their listing.

When this happens, you can accept it, reject it – which we’ll cover how to do in a moment – or make a counteroffer. This is when you counter their offer with another price or different terms.

Counteroffers are simple enough, but there are a couple of ways you can improve your approach.

Put an Expiration Date on Your Counteroffer

First, consider reducing the window of time your buyer has to accept the offer. In most states, they have about three days. After that, you can move on and consider other offers or even raise your price.

So, your counteroffer could stipulate that the buyer only has two days to consider it before you can entertain others.

Consider Paying the Closing Costs

Another way to improve your chances of getting the buyer to accept your counteroffer is by volunteering to pay their closing costs.

This usually turns out to be about 2% of the home’s purchase price. Buyers are often low on cash by the time they reach the negotiation table, which is why it’s become fairly commonplace for them to ask the seller to help with the closing costs.

Before they do, you can include closing costs as part of your counteroffer. In fact, you could actually increase how much you were asking for your house. The buyer can cover that with their mortgage. It’s the closing costs that they’ll probably need more help with.

Counteroffer with Your List Price

After receiving a counteroffer, most buyers should simply respond by countering with the list price. It’s always best to consult an experienced real estate agent in these matters, but again, this is usually the right move.

For one thing, many buyers simply assume that offering less than the list price is expected. Once they see you won’t budge, they’ll know you were serious about your price and offer it.

Secondly, some buyers are just looking for a good deal. They’ll make a number of low-ball offers across numerous listings just to see if anyone will bite. Counter with your list price and they’ll probably lose interest because they were never serious about paying anywhere near that much.

List Prices Are Strongest in a Seller’s Market

If you had a comparative market analysis done before listing your home, you know what your local market has to offer and should feel confident in what you’re asking. Don’t be afraid to counter with that original amount.

That said, your list price will always hold up best in a seller’s market. If the buyer has the upper hand and their offer isn’t obscenely low, it might make sense to take it.

This is also why it’s so important to invest in effectively marketing your house. No matter what kind of market you’re in, the more interest you attract, the more confidence you’ll have in your counteroffers.

Rejecting a Buyer’s Counteroffer

As we just touched on, you’re under no obligation to accept whatever offer a seller makes.

Furthermore, many won’t be remotely surprised when they get word that their offer wasn’t accepted.

However, what they may not expect is an outright rejection of their offer. Instead of responding to it with what you feel is a fair compromise, you simply say, “no” and leave it at that.

In effect, it’s the same as countering with your list price, except that you’re not giving them a new amount that they could accept. It’s up to them to come up with a better offer.

The great thing about this strategy is that it leaves the buyer in the dark. You haven’t given them a counteroffer to accept or a frame-of-reference for how much they should offer the second time. This puts pressure on them because they know another buyer could offer the right amount at any moment.

When You Should Reject the Buyer’s Offer

Responding to a buyer’s offer with a flat-out rejection works best if they’re aware that you have showings coming up. They’ll know this means that a lot of offers are probably on the horizon, so they can’t risk making any more unreasonable ones.

This tactic is also stronger when your house is new on the market. Again, the buyer will know that competing offers are probably on the way.

Try to Start a Bidding War for Your Home

The best-case scenario for a homeowner who’s selling is to see a bidding war break out as a result. This means that two or more buyers have actually increased their initial offer in an effort to win the house. It means you’re going to get more than you asked for no matter what. How much more depends on how long the auction-like bidding continues.

Needless to say, this should be your goal. This is also why it’s so important to know how to make a counteroffer in real estate. If you automatically accept the first offer you get or don’t know how to counter the right way, there will be no bidding war for your home.

Work with a Real Estate Agent to Get What Your House Is Worth

The first step to making an effective counteroffer in real estate – the kind that will attract a bidding war – is to price your home correctly. We offer a free no-obligation home valuation report that can help with this.

After that, speak with an experienced real estate agent on our team who will refine that figure further and even prepare you for the possibility of a counteroffer.

Plus, when you list with SimpleShowing, you’ll make even more by selling with our 1% listing fee.

Contact us today to find out more.

Conclusion

In the realm of real estate transactions, a well-executed real estate counter offer can make the difference between a successful sale and one that falls through. It can become a strategic tool to increase the likelihood of the seller’s counter offer being accepted, potentially bringing the asking price closer to the seller’s expectations. Remember, this game of negotiation usually entails the buyer’s agent preparing a detailed response to the buyer’s original offer, emphasizing the importance of the earnest money deposit and other details that may make the proposal more appealing.

Navigating a buyer’s market can be challenging, but understanding the intricacies of a counter offer will undoubtedly provide an advantage. In the bustling real estate market where multiple offers are the norm, the seller counters with terms that could include a higher earnest money deposit, the buyer to pay closing costs, or even changing the closing date. Also, it’s not uncommon for the seller to include personal property as part of the deal, making the buyer’s personal offer even more tempting. In all of this, the buyer’s agent is pivotal, bridging the communication between both parties, and ensuring the other party understands the nuances of the offer.

However, it’s crucial to note that while a counter offer might allow the seller to secure a higher price or more favorable terms, it’s a two-way street. The buyer accepts the terms, revisits the buyer’s initial offer, or walks away. Hence, striking a balance that favors both parties becomes crucial. The success of a counter offer lies in the understanding of the real estate market dynamics, patience, and a willingness to compromise. Armed with these insights, both sellers and buyers can confidently navigate the real estate negotiation landscape, making the most out of their respective positions.