How to Make the Best Offer on a Home

20. September 2012 · Write a comment · Categories: Financing Your New Home, Home Buyers, Home Sellers, Market Conditions, Our Listings, Uncategorized

How to Make the Best Offer on a Home

How to make the best bid on a houseWe all have seen how fast homes were selling in Austin TX and very little has since changed.  The one change in homes for sale in Austin, the entire Central Texas Area for that matter, might simply be more questions, for example  “What do I have to do to get my offer accepted?   I keep making offers and never get one!”.

In this fast paced environment, making the winning offer means being prepared beyond belief.   Writing the winning offer is more technical than in the recent past.  Naturally, having a pre-approval letter is still the number one item on the list of things to have.  There are many others too.  I would recommend this list be fulfilled before you submit another offer on any home for sale in San Jose.

Realtor… A seasoned Austin Realtor is the one asset in the home buying process that you get to choose.  Choose a Realtor that you feel comfortable with.  Take the time to talk to more than one.  Find one that you feel is listening to your needs and wants.  Often, you may choose one that has been referred to you by a friend.   After all, if your friend liked them, there is a strong probability that you will like them too.

Lender… A Mortgage Broker is more flexible than your bank.  Every bank does mortgage loans, right? Yes, however, they only offer mortgage loans that they have available at a given time.  Mortgage Brokers offer a nearly endless number of mortgage options for you to choose from.  The big banks offer loans in cycles and while one bank may have a great mortgage option this month it may be unavailable next month.  A mortgage broker will be your best source to secure the mortgage loan that fits your needs all the time.   They are usually much more affordable in the long run too.

Multiple Pre-Approvals… Realtors are pushing their own lenders an awful lot lately.   You can overcome this by obtaining multiple pre-approvals  from a few major banking institutions.  If a seller is requiring a Wells Fargo pre-approval, to test your credibility, be prepared in advance and get one.. This will also expedite your offer process and could secure the home before anyone else has a chance to produce the required pre-approval.

Proof of Funds… This can be in the form of a letter, however a copy of your bank statement is more suitable.   Warning:   Your account numbers should be redacted from any form you choose to use.    If your money is in an account that requires several days to be made liquid, consider depositing those funds in your savings account where they are readily available.  Speak to your financial adviser or accountant to be certain you are doing so in a fashion that does not introduce negative tax ramifications.

Deposit Check… This is a required item that is often handled poorly.   I have seen some pretty bad examples and I want you to give this item some serious attention.   The date of the check should be current and the memo should not refer to a previous property that you have made an offer for.   The recipient should be the title company where escrow is being held and the amount should be correct and reflect the structure of the offer.

Offer Summary… Today, most homes for sale in Austin and other homes for sale around Travis and Williamson Counties receive multiple offers.  This can cause confusion for an unprepared listing agent.   Purchase offers are full of detail and some very slight differences could make or break your chance of getting yours in front of the seller.  My suggestion is to have your Realtor create an ‘offer summary’ to help the listing agent understand your offer.  This should also be used in the text of any offers submitted electronically.  This summary is simply an outline of the offer structure.  It must include offer price, timelines, deposit amount, type of loan, loan amount, down payment amount, length of contingency periods and any specific exclusions or inclusions that will upsell your offer.

Disclosures and Inspections… If the home for sale in Austin that you are considering has the seller disclosures or inspections available, review them prior to making your offer and sign them.   This will put you another step ahead of other buyers.  Every advantage has to be taken in this market.

Contingencies… This is where most successful buyers are finding the greatest potential to gain an advantage.  The loan, appraisal and property condition are the important ones.   If you can get a written guarantee of loan approval or the seller’s inspection reports are sufficient then you might remove these contingencies or make them very short term, for example 3-7 days.

Applying these fundamentals and executing them properly will not guarantee your success.   They will however, put you ahead of more than half of the competition out there.

All of this information would be moot if I did not discuss appraisal gaps.   Appraisal gaps have been a serious issue for the last few years.   When multiple offers push the price above market value, the buyer who is using a mortgage loan will not receive a loan approval if the value does not match the offer price.  A buyer who has additional cash resources to cover any appraisal gap will have an advantage.

I strongly recommend that you find a way to cover an appraisal gap prior to making a high offer.   How do I do that, you ask?  Choose a loan that allows you to keep some of your cash, discuss any rebate programs your Realtor or lender may offer or choose a home priced below your loan approval amount, saving you some cash.

House Hunting Tips – The Basics

09. August 2012 · 1 comment · Categories: Home Buyers, Home Sellers · Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The decision whether to rent or buy a house is a big one and should not be taken lightly in any circumstance. When you do decide to take the plunge, put some useful house hunting tips into action so you find exactly what you’re looking for with the least amount of hassle.

Location is one of the key factors that goes into determining where and what house you select. Take a look at the places of employment, schools and entertainment venues that are local. Don’t select a house that has a longer commute than you are willing to make every day.

Take a look through the neighborhood where you’re contemplating moving. Look in peoples’ yards for signs that say “for sale” and, if you have interest in any of them, call the realtor to get more information about the home. Make a list of your wants and your needs. Do not confuse the two of them when searching, especially when you’re on a strict budget or have limited time to select the home you want to buy. Browse through shopping guides so you can look at the different aspects of each house.

Bring a paper and pen to each house that you look at so you can write down the positives and negatives for each home. It may also be beneficial to bring someone else such as your spouse, best friend or even your children with you to get someone else’s perspective. Someone else may see a problem that you overlooked or point out something that drastically alters your decision.

Don’t exclude a potential home or homes based solely on the square footage. Different homes have different layouts, and one with less square footage may appear larger than ones with more square footage if the layout is created just right.

Be realistic when looking for your dream home. It can be very difficult to find the perfect home to meet both your needs and wants while fitting into your budget. Look at any potential homes with an eye open for what it can be, not what it is. Remember that you can always change the paint or carpet, but you can’t relocate the windows or where the doors are.

Follow the advice for home hunters from the professionals in the field who have plenty of experience with buying and selling homes to make the process as smooth as possible.

Is Now A Good Time To Sell Your Cedar Park Home?

09. March 2012 · Write a comment · Categories: Home Sellers, Market Conditions · Tags: ,

YES…now is the time to sell your home in Cedar Park.

According to the the Austin Board of Realtors MLS, Cedar Park has between a 2.85 and 3.8 months supply of inventory.  It’s worth pointing out that a 6 months supply of inventory is considered a healthy real estate market.  Anything higher is looked at as a buyer’s market, while anything lower is a good seller’s market.   Below is a chart provided by Alamo Title that shows statistics broken down by price range.

Cedar Park/Leander North Market
Price Range # of Solds Avg Sales Price Avg DOM Current Actives Avg. # of Solds Months of Inventory
< 100,000 55 $79,440 76.24 5 4.58 1.09
100-149,999 432 $127,642 81.05 67 36.00 1.86
150-199,999 230 $168,293 74.31 94 19.17 4.90
200-299,999 106 $241,275 117.75 45 8.83 5.10
300-399,999 42 $344,738 134.81 38 3.50 10.86
400-499,999 27 $434,566 127.59 15 2.25 6.67
500-749,999 18 $561,504 156.22 20 1.50 13.33
750-999,999 3
> 1 Million 1
Total 910 $175,948 88.68 288 75.83 3.80
Cedar Park/Leander South Market
Price Range # of Solds Avg Sales Price Avg DOM Current Actives Avg. # of Solds Months of Inventory
< 100,000 13 $81,909 62.08 1 1.08 0.93
100-149,999 107 $132,884 78.10 14 8.92 1.57
150-199,999 247 $175,320 85.78 52 20.58 2.53
200-299,999 343 $236,810 95.91 87 28.58 3.04
300-399,999 89 $339,768 91.25 29 7.42 3.91
400-499,999 26 $426,704 138.81 8 2.17 3.69
500-749,999 9 $534,367 170.00 2 0.75 2.67
750-999,999 1 $825,000 674.00 4 0.8 50.00
> 1 Million 1
Total 835 $223,690 92.43 198 69.58 2.85

(Based on MLS Sold Data from 2-1-2011 through 1-31-2012. Based on Active Listings on 3-5-2012)
To see all homes available for sale in Cedar Park:
Homes for Sale In Cedar Park

 

 

 

The Nyland Team has helped many home sellers and home buyers throughout the Cedar Park/Leander community. Our success in the area has helped us develop a unique and innovative marketing system that harnesses the power of the internet to get your property sold quickly.

For a closer look at the real estate market in your neighborhood, please contact Jeffrey Nyland at 512-626-8552 or email him at Jeffrey@NylandTeam.com We’re here to answer all your real estate questions.

Austin Real Estate Market One to Watch in 2012

22. December 2011 · Write a comment · Categories: Home Buyers, Home Sellers

I read this interesting post today by Tara-Nicolle Nelson, a writer for Trulia.com.  The news was just too good to keep to myself.   It appears we have found the bottom and are on the upswing of the real estate market in Austin, TX.

Tara posts:

Ah, the end of the year. Time to look back, contemplate on the high points and lessons learned over the year, and start to look forward to the next one.

And when it comes to looking forward in the real estate realm, it’s most interesting to wonder: where will the market be bright in the coming year?

I posed precisely this question to one of the smartest real estate prognosticators I know, Trulia’s Chief Economist, Jed Kolko.  His answer was concise and provocative: “Smart cities are hot.”

I asked him to elaborate, and what he said was so interesting I thought I’d let you all in on the conversation that ensued. Here are 5 real estate markets that Jed says you should definitely keep your eye on in 2012.

“In 2012, the local housing markets that will enjoy rising prices, new construction or both, are those that start the year with stronger job growth and fewer empty homes holding back the market. Based on these factors, along with other leading indicators, here are my top five cities to watch:

1. and 2. Austin, TX, and Houston, TX. The bloom’s not off the yellow rose of Texas. Steady job growth and a construction revival make Austin and Houston two of my five cities to watch. Texas isn’t hung over from the housing boom like the other big states of the South and West, so there’s little to hold back growth. Honorable mention to Fort Worth and San Antonio.

3.  San Jose, CA. Wasn’t California at the center of the foreclosure crisis? Didn’t prices there fall more than everywhere else in the country? Yup. But there’s no such thing as the California housing market: California is almost as diverse as the U.S. Even though prices plummeted and foreclosures skyrocketed in inland California, the coast is another world. San Jose’s perennially tight housing market makes it faster to bounce back. The San Jose market –which includes most of Silicon Valley – has rapid job growth and the lowest vacancy rate in the country.

4.  Suburbs of Boston, MA. This Cambridge-Newton-Framingham market just west of Boston has a strong jobs engine and, like most of New England, missed the worst of the housing bubble. Honorable mention goes to Worcester, one step further west, and Boston’s northern suburbs around Peabody. These areas all benefit from offering more bang for the buck than crowded, expensive Boston: this is because most people looking to move are searching in more suburban or smaller areas than where they live now.

5.  Rochester, NY. That’s my hometown, and knowing what’s happened to Kodak and other pillars of the local economy, I was surprised when Rochester scored on the top 5 list. (I applied the same formula to all cities and did not have my thumb on the scale.) Prices – which fell little during the boom – are stable, and the economy has weathered blow after blow and is expanding.

What do these markets have in common? Three – Austin, San Jose, and the area west of Boston – are technology centers. In those three metros, as well as in Rochester, a center of high-skill manufacturing industries, education levels are well above the national average. As the recovery proceeds, smart cities are leading the way. During the housing boom, the go-go cities tended to be lower-skill, lower-education metros. But in 2012, smart is hot: it’ll be the revenge of the nerds.”

Believe it or not, Jed was just getting started! He’s also compiled a list of 2012 Real Estate Market predictions that goes way beyond which markets are hot, which you can read in full, here.

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Is now the time to sell in Austin?  You bet!  For an Instant Value of Your Home, Call Jeffrey at 512-626-8552 or email at Jeffrey@NylandTeam.com.  He will be happy to sit down with you and discuss the market in your neighborhood.