Michele Parrish's Blog
After you add your house to the real estate market, it may be only a matter of days before you receive the first offer on your residence.
Ultimately, the initial offer on your home may prove to be the best proposal for a number of reasons, including:
1. The offer matches or exceeds your expectations.
An informed home seller understands the condition of his or her house, and as such, sets realistic expectations for the home selling journey.
For a home seller, it is paramount to conduct a home appraisal before you list your residence. With this appraisal, you can learn about your residence's strengths and weaknesses and price your house accordingly.
Furthermore, a home appraisal will help you understand the true value of your home. And if you receive an initial offer that matches or surpasses your expectations, you should have no trouble accepting the proposal and moving forward with a home sale.
2. The offer corresponds to the current state of the real estate market.
Operating in a buyer's market is far different from operating in a seller's market, and perhaps it is easy to understand why.
In a buyer's market, there is an abundance of high-quality houses and a shortage of property buyers. This means a buyer's market typically favors property buyers over property sellers.
On the other hand, a seller's market usually favors property sellers. This market includes many property buyers and a shortage of top-notch houses. Thus, the likelihood of receiving a terrific first offer may increase in a seller's market and decrease in a buyer's market.
As a home seller, it is essential to allocate the necessary time and resources to learn about the housing market. If you understand the differences between a buyer's market and a seller's market, you can identify a great initial offer on your house.
3. The offer is a must-accept in the eyes of your real estate agent.
When it comes to selling a house, it often is a wonderful idea to work with a real estate agent. In fact, this housing market professional may prove to be a difference-maker at each stage of the home selling journey.
A real estate agent will help you list your residence, promote it to potential homebuyers and set up home showings and open houses. That way, he or she can make it easy for you to generate substantial interest in your residence as soon as it becomes available.
Perhaps most important, a real estate agent is happy to provide honest, unbiased home selling recommendations. This housing market professional will help you differentiate between a mediocre initial offer and a stellar one and ensure you can make informed home selling decisions.
Lastly, be sure to analyze the initial offer on your home closely before you accept it. By taking a diligent approach to this home proposal, you can evaluate the pros and cons of it and make the best possible decision based on your individual needs.
American homes have been growing larger for decades. This trend is partly due to personal preference for more space, and partly caused by local laws mandating minimum square-footage of all new properties.
Owning and maintaining a home is a huge expense. Especially if you’re heating and maintaining parts of your home that you don’t really need.
As a result, a growing number of people are renting out parts of their home in various ways. From Airbnb to subletting, and all the way up to renting out their basement as a separate apartment, there are a number of ways you can earn money on your home.
The appeal is obvious. However, there are a number of factors you should consider before renting out part of your home. After all, your home is the place you and your family spend your days and nights, and sometimes the idea of having a stranger in your midst can be frightening to some homeowners.
For others, however, welcoming people into their home is a fun way to meet new people, help someone find affordable housing in a place they otherwise wouldn’t, and earn some extra money.
Know your local laws
It should be noted up front that not everyone can just legally rent out a portion of their home. Whether it is due to local laws, building code requirements, or homeowners association rules, there are a number of reasons you might not be able to rent out part of your home.
Before you consider listing a room or portion of your home, read up on the landlord-tenant laws in your area to make sure you’re comfortable with your legal obligations.
Make the necessary preparations
Renting a room in your home isn’t just a matter of giving someone the key to the front door. You’ll have to plan to install deadbolts, remove doorknobs with inside locking mechanisms, make repairs to the room and any amenities the tenant will have access to and document the state of your home.
Make a clear renter’s agreement
Would it make you uncomfortable to have a dog or cat in your home? Does your home have a smoking policy?
There are a number of things you should think about and add to your renter’s agreement and any online listing you post. This will help you narrow down your renter options and give you a better chance of finding someone right for your home.
Finding a tenant
There are a number of ways you can find people to live in your home. Most homeowners list their spare room or apartment online, but it can also be a good idea to reach out to people you know and trust.
Once you have interested parties, you might want to purchase a background check and determine if you’ll require certain documents (proof of income, credit score, etc.).
There’s a reason you have to do so much paperwork when you rent an apartment--the landlord wants to make sure they are covered in case anything goes wrong.
Before signing an agreement with your new renter, make sure it covers all of the “what-if” scenarios that could happen. There are several sample lease agreements online that you can use as a template.
Furthermore, once the tenant moves in, be sure that your discussions and agreements are documented. If the tenant denies you access to perform a check for pests, make sure you have some documentation that shows this denial.
If you intend to purchase a house, it helps to submit a competitive offer. In fact, if you submit a competitive offer, you may be better equipped than ever before to enjoy a fast, seamless homebuying experience.
Ultimately, there are many reasons to submit a competitive offer on a home, and these include:
1. You can increase the likelihood of an instant "Yes" from a home seller.
Let's face it – no home seller wants to deal with a "lowball" offer on a house. Fortunately, a competitive offer helps improve your chances of receiving an instant "Yes" from a seller, thereby increasing the likelihood of a stress-free homebuying experience.
A homebuyer who allocates the necessary time and resources to understand a house and its strengths and weaknesses should have no trouble defining a competitive offer. Then, this buyer can submit a proposal that accounts for a house's age and condition. And if a seller accepts the homebuying proposal, both the buyer and seller can work together to finalize a purchase agreement.
2. You can open the lines of communication with a home seller.
Although a competitive home offer may suit your interests, it may not match a seller's expectations. However, a buyer's decision to submit a competitive proposal may open the lines of communication with a seller.
If a buyer submits a lowball proposal on a house, he or she may receive an immediate rejection from a seller. Comparatively, a competitive home offer may force a seller to consider his or her options closely. And even though a seller may not be fully satisfied with the proposal, he or she could counter the offer and negotiate terms with a buyer.
3. You can avoid the risk of overspending to acquire a residence.
A homebuyer who analyzes the real estate market can find out what a home is worth based on a variety of housing sector conditions. Therefore, this buyer can submit a competitive offer, one that minimizes the risk that he or she will overspend to acquire a residence.
When it comes to putting together a competitive home offer, you may want to collaborate with a real estate agent as well. This housing market professional can work with you throughout your home search and ensure you can pounce at any opportunity to purchase your ideal house.
A real estate agent understands all aspects of the housing market. He or she will help you search for residences in your preferred cities and towns. Plus, once you discover your dream house, a real estate agent will make it simple to put together a competitive offer.
Furthermore, a real estate agent is happy to respond to your concerns and questions throughout the homebuying journey. This housing market professional will offer expert homebuying insights, enabling you to make the best-possible homebuying decision.
Limit the guesswork associated with submitting a competitive homebuying proposal – use the aforementioned tips, and you can make an aggressive offer on any house, at any time.
Ready to buy a new home? Not so fast! You'll first want to establish a budget to understand exactly what you can afford month after month.
What does it take to set up a homebuying budget? Here are three tips to help you establish the right homebuying budget.
1. Consider Your Monthly Expenses
How much do you spend on food, electricity and other monthly essentials? You'll want to consider these costs closely before you begin your search for the perfect home.
Ultimately, your monthly expenses can play an important role in your ability to afford your dream house. And if you can assess your monthly expenses, you can map out your home costs accordingly.
Make a list of your monthly expenses versus your monthly earnings. Then, consider if there are non-essential items that you can remove from your monthly budget.
Remember, if you save money now, you may be better equipped to land your dream house when you kick off you your home search. If you can cut non-essential items from your monthly expenses, you can start saving for a down payment on a new house.
2. Get Pre-Approved for a Mortgage
Banks and credit unions across the United States offer a wide range of mortgage options. Review all of the mortgage options at your disposal, and you should have no trouble getting pre-approved for a mortgage that meets your needs.
Adjustable- and fixed-rate mortgages are two of the most common mortgage options for homebuyers. However, if you discuss your financial needs with a bank or credit union, this lender may be able to provide you with additional mortgage options as well.
After you are pre-approved for a mortgage, you will be able to set a price range for your home search. As a result, you can narrow your search and accelerate the process of finding the perfect home at the best price.
3. Consult with a Real Estate Agent
Real estate agents are available to assist you throughout the homebuying journey. These real estate professionals can put you in touch with lenders, keep you informed about new homes that fall within your price range and even offer tips to establish a homebuying budget.
Perhaps best of all, real estate agents will make it easy for you to explore a broad array of homes that match your budget. These real estate agents can help you determine which homes you can afford – and which ones you can't – and ensure that you can stick to your homebuying budget.
Your real estate agent is committed to helping you get the best results, and he or she is happy to respond to any homebuying queries. That way, you can receive expert guidance as you start your search for your ideal residence.
When it comes to buying a home, there is no reason to browse the real estate market on your own. Instead, work with an experienced real estate agent, and you can find a great home at a budget-friendly price.