Home ownership is a goal that is worth striving for. Many people seem to think that getting there is all but impossible now, but just the opposite is true. Here in Chattanooga, we still have more homes than buyers and many of them are a great value. With all of the large companies like Volkswagen, Wacker Chemical, Amazon, and more coming here, this buyer's market will not last forever.
Still, there are several steps that you will need to take in order to purchase a home.
1. Contact a lender. This should always be the first step. A good lender will be able to guide you to the type of mortgage that best suits your needs. You will want to get PRE-APPROVED! If you have credit issues they can even steer you in the right direction to get your scores straightened out so that you can get better rates and become credit worthy. I typically use Angel Sherlin with iServe Residential Lending. asherlin@iservelending.com.
2. Contact me. Well, I hope you contact me, but if you don't you still want to contact a REALTOR. Preferrably one who has the experience to get you what you need and help you reach your goals. You don't want to just call every agent on every sign of every home you want to see. It will be difficult for you to get an agent willing to give their all for you if they know you will just call the next agent on the next sign. Buyer's agents are on your side and look out for your best interests, whereas a listing agent typically represents the seller and must look after the seller's interests.
3. Sign a Buyer Representation Agreement. This shows your REALTOR that you are committed to them and they to you. If your agent doesn't ask you to sign this right away, ask them.
4. Look for homes. I can get you set up with homes that match the criteria of what you say you need. Remember, needs outweigh wants, but hopefully you can find what you want and need. Just don't fall into the trap of passing on your perfect home because you haven't seen all the homes out there. By the time you see all the other homes the one you wanted may have been sold. Typically, you will probably only look at 7-10 homes.
5. Make an offer. When you find the home you want you will want to write an offer. Now, it seems that lately buyers will make an offer of $130,000 for a $200,000 home and think it's great...only to be disappointed when the seller doesn't even counter them. You want to be realistic with your offer. See what comparable homes in the area are selling for. If the property is hot you might need to offer right around full price! Typically in our area, well priced homes are selling for about 97% of list price. You may also expect a counter offer (see my previous blog on counters).
6. Inspections. Once an offer is accepted you will enter a period where all of the inspections, title work, etc get done. In Tennessee, all of the inspections will be your responsibility. I will help you the entire way so you don't need to get worried, but there are a lot of steps. Actually, this is where my real work begins and you get to relax a little bit. If the home inspection finds some things to be fixed, we submit another form to the seller. Here we enter another short negotiation period. Once things get hammered out we move to the next step.
7. Closing. This is where you and the seller along with the agents meet at a Title Company to sign off on everything. Typically, at the end of the closing, which is about 45 minutes to an hour, the home is yours.
Now, this is obviously just a bare bones run down of the steps you need to take to home ownership, but it will give you an overall idea of what is needed.
If you have any questions please don't hesitate to contact me at 423-902-9836. You can also shoot me an email to David@MyChattanoogaHome.com or visit my website, http://www.mychattanoogahome.com/. I have been a full time REALTOR since 1999 and work with Crye-Leike, REALTORS.
Wednesday, March 30, 2011
Friday, March 25, 2011
Counter Offers
Almost every real estate transaction has a counter offer included in it. What exactly is a counter offer and how do you handle it? Well, whether you realize it or not, you probably deal with counter offers every day of your life. Here's an example. I ask if you want to go to Subway for lunch, you say you would rather go to Quizno's and I say OK. There, you just saw an offer, a counter offer, and an acceptance. Of course, with a home there is a little more on the line that a sub!
Not all offers will require a counter offer. Naturally, if someone offers full price on a home there probably won't be a counter offer. If you have done your research and used comparable sales when coming up with your offer and make a really good offer, you may not receive a counter offer. Also, remember, it is not always about price, sometimes the terms are very important, if not more important than the actual final sales price.
Let's just assume that the price being asked for the home is fair for the market and we'll use $250,000 for the asking price. The buyer offers $230,000 but also wants the seller to pay $6,000 in closing costs. This offer is now actually only $224,000. Even if the buyer offered full price but asked for closing costs, it is no longer a full priced offer and may be countered!
The seller has 3 options at this point: 1. Accept the offer. 2. Reject the offer. 3. Counter the offer.
More than likely he will counter. Let's say he counters back with $245,000 and offers to pay the $6,000 in closing costs. In reality, he is accepting $239,000 for his home.
The buyer now has the same 3 options the seller just had. Also, realize that the more counter offers there are, the less chance the deal has to coming together...and, a better offer may be presented to the seller during all this negotiation.
Ultimately, what both the seller and buyer are trying to do is come up with a price and terms that are acceptable to both of them. Both sides may need to be flexible and realize that counter offers are just part of the transaction.
Right now we are still in a buyer's market, meaning there is a lot of inventory and not enough buyers. Buyers have a slight advantage over sellers, but this does not mean that sellers are going to give their homes away. On the flip side, the seller should realize that he only has one home to sell where as the buyer may have 20 homes just like it to look at.
Naturally, every offer and every transaction is different. There are many other things to consider (time to close, buyer loan approval, inspections, etc.) which is why it is important for both the buyer and seller to consider using a REALTOR who has experience with these types of transactions and deals with them on a daily basis. Let's face it, most people move every 7 years or so, that doesn't give them a lot of experience in dealing with all that goes into a real estate transaction. It by no means makes them ignorant or incapable, but experience does go a long way in this arena.
If you have any questions, please feel free to contact me at 423-902-9836 or by email at David@MyChattanoogaHome.com. For more tips, visit www.MyChattanoogaHome.com. I am a full time REALTOR with Crye-Leike, REALTORS in Chattanooga, TN.
Not all offers will require a counter offer. Naturally, if someone offers full price on a home there probably won't be a counter offer. If you have done your research and used comparable sales when coming up with your offer and make a really good offer, you may not receive a counter offer. Also, remember, it is not always about price, sometimes the terms are very important, if not more important than the actual final sales price.
Let's just assume that the price being asked for the home is fair for the market and we'll use $250,000 for the asking price. The buyer offers $230,000 but also wants the seller to pay $6,000 in closing costs. This offer is now actually only $224,000. Even if the buyer offered full price but asked for closing costs, it is no longer a full priced offer and may be countered!
The seller has 3 options at this point: 1. Accept the offer. 2. Reject the offer. 3. Counter the offer.
More than likely he will counter. Let's say he counters back with $245,000 and offers to pay the $6,000 in closing costs. In reality, he is accepting $239,000 for his home.
The buyer now has the same 3 options the seller just had. Also, realize that the more counter offers there are, the less chance the deal has to coming together...and, a better offer may be presented to the seller during all this negotiation.
Ultimately, what both the seller and buyer are trying to do is come up with a price and terms that are acceptable to both of them. Both sides may need to be flexible and realize that counter offers are just part of the transaction.
Right now we are still in a buyer's market, meaning there is a lot of inventory and not enough buyers. Buyers have a slight advantage over sellers, but this does not mean that sellers are going to give their homes away. On the flip side, the seller should realize that he only has one home to sell where as the buyer may have 20 homes just like it to look at.
Naturally, every offer and every transaction is different. There are many other things to consider (time to close, buyer loan approval, inspections, etc.) which is why it is important for both the buyer and seller to consider using a REALTOR who has experience with these types of transactions and deals with them on a daily basis. Let's face it, most people move every 7 years or so, that doesn't give them a lot of experience in dealing with all that goes into a real estate transaction. It by no means makes them ignorant or incapable, but experience does go a long way in this arena.
If you have any questions, please feel free to contact me at 423-902-9836 or by email at David@MyChattanoogaHome.com. For more tips, visit www.MyChattanoogaHome.com. I am a full time REALTOR with Crye-Leike, REALTORS in Chattanooga, TN.
Thursday, March 24, 2011
Why right now is a great time to buy a home!
People ask me all the time, “Should I wait until the market bottoms out to buy a home?” My answer to this is no. The reason is that you only know when the market has hit the bottom when it starts to go back up.
There are also other reasons, the main being interest rates. Right now, rates are hovering around 4.9% for a 30 year fixed mortgage. This would mean that a $200,000 mortgage is around $1,061/ month (excluding taxes and insurance). The current mortgage trend is rising, so let’s say that rates rise by just 1% to 5.9%. That same $200,000 mortgage will now cost you $1,186/ month, or $125 more. Over the life of a loan that’s $45,000! Got a nice car?
What’s worse is that if the market does start to improve, and it looks like it will. That house you have your eye on that will have a $200k mortgage might go up in price, so you might wind up with a $220,000 mortgage, which at the higher interest rate would be $1,304 a month….you can see where this is going.
Right now, in our market, there are more homes for sale than buyers. This means that you, as a buyer, have more control and negotiating power. However, with Volkswagen, Wacker Chemical, Amazon, and other large companies coming to Chattanooga, the pendulum may swing back the other way and cause a seller’s market.
So, to answer the initial question…..YES! If you are in the market to buy a home it just does not make financial sense to wait, unless you have more money than you know what to do with…and in that case just pay cash. For the rest of you, get out there and find that dream home. You may not have another opportunity like this again.
If you have any questions about real estate, what your home is worth, or just need to find a home; don’t hesitate to call me at 423-902-9836 or shoot me an email at David@MyChattanoogaHome.com. You can also visit one of my websites for all kinds of helpful information: www.MyChattanoogaHome.com.
I have been a Realtor in Chattanooga since 1999 and would love to help you out.
There are also other reasons, the main being interest rates. Right now, rates are hovering around 4.9% for a 30 year fixed mortgage. This would mean that a $200,000 mortgage is around $1,061/ month (excluding taxes and insurance). The current mortgage trend is rising, so let’s say that rates rise by just 1% to 5.9%. That same $200,000 mortgage will now cost you $1,186/ month, or $125 more. Over the life of a loan that’s $45,000! Got a nice car?
What’s worse is that if the market does start to improve, and it looks like it will. That house you have your eye on that will have a $200k mortgage might go up in price, so you might wind up with a $220,000 mortgage, which at the higher interest rate would be $1,304 a month….you can see where this is going.
Right now, in our market, there are more homes for sale than buyers. This means that you, as a buyer, have more control and negotiating power. However, with Volkswagen, Wacker Chemical, Amazon, and other large companies coming to Chattanooga, the pendulum may swing back the other way and cause a seller’s market.
So, to answer the initial question…..YES! If you are in the market to buy a home it just does not make financial sense to wait, unless you have more money than you know what to do with…and in that case just pay cash. For the rest of you, get out there and find that dream home. You may not have another opportunity like this again.
If you have any questions about real estate, what your home is worth, or just need to find a home; don’t hesitate to call me at 423-902-9836 or shoot me an email at David@MyChattanoogaHome.com. You can also visit one of my websites for all kinds of helpful information: www.MyChattanoogaHome.com.
I have been a Realtor in Chattanooga since 1999 and would love to help you out.
Wednesday, March 23, 2011
Quick and easy tips for selling your home
Increasing your home's appeal
Remember the 60-second rule: That's all the time you have to create a winning first impression. Here are some simple to significant ways to maximize your home's appeal. Exterior
* Keep the grass cut and remove all yard clutter.
* Weed and apply fresh mulch to flower beds.
* Apply fresh paint to wooden fences.
* Tighten and clean all door handles.
* Clean windows inside and out.
* Powerwash home's exterior.
* Ensure all gutters and downspouts are firmly attached and functioning.
* Paint the front door.
* Buy a new welcome mat.
* Place potted flowers near the front door.
Interior
* Evaluate the furniture in each room and remove anything that interrupts "the flow" or makes the room appear smaller. Consider renting a storage unit to move items off-site.
* Clean and organize cabinets, closets and bookshelves.
* Clean all light fixtures and ceiling fans.
* Shampoo carpets.
* Remove excessive wall hangings and knick-knacks.
* Repair all plumbing leaks, including faucets and drain traps.
* Make minor repairs (torn screens, sticking doors, cracked caulking).
* Clean or paint walls and ceilings.
* Replace worn cabinet and door knobs.
* Fix or replace discolored grout.
* Replace broken tiles.
* Replace worn countertops.
Special details for showings
* Turn on all the lights.
* Open all drapes and shutters in the daytime.
* Keep pets secured outdoors.
* Buy new towels for bathrooms.
* Buy new bedding for bedrooms.
* Replace old lamps or lampshades.
* Play quiet background music.
* Light the fireplace or clean out the ashes and light a candelabrum.
* Infuse home with a comforting scent, such as apple spice or vanilla.
* Set the dining room table for a fancy dinner party.
* Vacate the property while it is being shown.
Now, there are still plenty of other things that can help move a home. Be sure to visit my website, www.MyChattanoogaHome.com to find more information.
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