Legal Edge RE

Massachusetts Real Estate | Metro Boston, North Shore & South Shore

How To Avoid Being Beaten Out By Other Buyers Who May Be Competing For Your Dream Home…

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You’ve found your dream home, so you’ll make an acceptable offer and live happily ever after…unless another buyer beats you to the punch!

In a competitive marketplace, this can not only happen, but can potentially have a far greater impact than any negotiating gambit the seller would hurl your way. Yet, more buyers erroneously fear the seller more than they do other competing buyers!

That’s why it’s important to make sure your offer strategy includes a strong stance against other potential buyers and their offers. There are several factors that make buyer competition a threat in today’s real estate market.

It’s a sellers’ market.

First, in a competitive market with relatively few quality properties available, “dream home” category houses will become hot properties – often as soon as the for sale is planted in the yard.

Most buyers want to purchase a home that requires very little fix-up. They comment, “I want to bring in my toothbrush and immediately set up housekeeping.” And to obtain these turnkey benefits, buyers are willing to pay a premium.

That can translate into not only a full-price offer, but one that exceeds the seller’s listed price.Timing is everything.In an active market, timing is everything.

In the good old days, you might have the luxury of viewing a home several times – even dragging your relatives to see it… before you actually made an offer.

“He/she who hesitates is lost” aptly explains buyers who dally to make a buying decision today.
And don’t forget that being pre-approved for a loan has leveled the playing field for a majority of buyers. If they’re all equally qualified financially, the best offer (as interpreted by the seller) gets the property.

So, what can you do to arm yourself to the teeth with added value to capture a seller and counteract offers from other buyers?

Get Pre-Approval.

First, make sure you’re financially pre-approved by a Lender for the loan you’ll need and be prepared to document this fact to a seller if requested.

Be Honest.

Be honest with the seller about your interest in purchasing the property. This doesn’t necessarily mean that you won’t negotiate a fair purchase; but it also doesn’t mean that you’ll act nonchalant and noncommittal either. Sellers often choose one buyer’s offer over another based on the level of personal interest and commitment the buyer appears to have to the seller’s home.

Communicate.

Lastly, make sure you fully communicate the desired outcome to the real estate consultant you’re working with. The consultant will then evaluate the best tack to take in terms of price, purchase terms, and negotiating tactics to help you realize that goal.

The next time you’re inclined to wonder what evil trick the seller might be up to, better look behind you first…to see if other buyers are trying to pull the rug out from under your dream home!

The Art of the Walk Through

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magnifyingglassOne of the last crucial steps to take before you go to the closing table to sign your mortgage documents should be the walk through of your new home. This gives you the opportunity to see that everything is in good working order, and get an opportunity to deal with any last minute problems that might arise.

The walk through should be scheduled within 24 hours of your closing. It will take about 30 minutes to compete.

Now, what are you actually doing when you do the walk through?

Check that the appliances and plumbing are working- you can turn on the dishwasher, turn on light switches, run the faucets to see that everything is operational.

You can also ask for owner manuals for appliances and warranties on any items that may exist.

Double check that any repairs that were supposed to been done have actually happened.

Make sure personal belongings have been removed, or items that should be left behind per your contract are still in place.

Make sure mother nature hasn’t done any damage to the property since the purchase and sale has been signed.

If you do identify some problems, let your real estate agent get involved. They can negotiate a repair that hasn’t happened, get items removed that are still in place, or arrange for funds to be held back until the situation is corrected. Don’t panic if something is out of place. There is always a solution, whether it is a postponement of the document signing or a renegotiation of an item. You have legal recourse as protections and most often times, a mutual agreement can be reached.

We have had situations where flooding has occurred due to a storm, or Sellers have refused to remove their belongings. In each case, a short negotiation remedied the repairs. It is also not uncommon to find that Sellers will ask to leave items that may be useful to you, such as gardening tools that they no longer need, at no additional charges.

The walk through can give you that additional sense of confidence that you have made a great decision with your home purchase.

Once the walk through is complete, you are on your way to signing your documents and receiving the keys to your new home.

What’s the biggest surprise you have come across while doing a walk through?

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Best Buyer Incentives

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How does a Seller make their property more attractive so that it will sell quickly and attract more offers?

Try offering these sure fire incentives…

1. Offer a home warranty policy. Warranties cover repair and replacement costs for appliances and other systems associated with a home and offer a security blanket to cap potential home repairs for the first year a Buyer owns their new home.

2. Offer assistance with closing costs. Homes that offer financial incentives historically sell faster and are generally more appealing when compared to similar homes located  in the same neighborhood.

3. Offer a Remodeling or Repair Credit. If your home is in need of some TLC, adding on a remodeling incentive may just turn the tide for a Buyer that is willing to do the work, but already feeling stretched by the process of purchasing a home. The less a Buyer has to spend to get the home of their dreams, the quicker a Buyer will make the offer.

4 Ways to Beat the Stress of Buying a Home

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1.  Begin with the end in mind. Have an ultimate scenario of where you’re trying to be.  What will life be like when you get there?  How will it be better than where you are now?  Dwell on that picture and write it out, fill up at least a page about how it feels in the new place.  This is imperative. Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations.  Emotions will run high and you need an anchor.  You must focus on that future goal when anxiety threatens to get the better of you.

2.   Be flexible. In your monetary calculations, overestimate by a thousand dollars.  In this market, anything can happen between contract acceptance and closing.  It could be the inspections reveal areas of concern that the seller is unwilling to fix or the repair costs are higher than the amount limited in the contract. Or the interest rate changes which affects the necessary down payment and closing costs you’ll need to come up with.  As your real estate team, we’ll strive to tie up loose ends as quickly as possible, but remember there is no perfect world.  Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home. We’ve seen many buyers get angry when it seems like the cost just keeps going up.  Anger is caused when reality doesn’t match up with the expectations you had in your mind.  If you anticipate this happening in advance, you won’t get angry.  In fact, it’ll probably go better than you expected.

3.  Trust in the process. There’s just so much to do, it’s easy to panic.  You wonder if it will ever work out.  In fact, when we bought our house, we couldn’t eat for a day, we felt so sick to our stomachs!  You think you’re taking a big chance, but the truth is you’re giving yourself a big chance. Even though you can’t see every step of the way, as you move towards your goals, the way opens up.  We know that you haven’t moved in a long time and it’s a major upheaval in your life.  But we’ve been there many times before, and we’ll be looking out for you.  Trust that we know the way to get you there.

4.  Get knowledge. One thing you’ll probably feel during this transition time is being out of control.  It feels like everyone else has taken over your life.  The seller, your Lender, the appraiser, the inspectors, all have the power to say yes or no to your moving plans. We’ll try our best to let you know ahead of time what your expenses will be, and what the unknowns are.  We’ll tie down the loose ends as soon as possible.  We’ll try to get your loan approved within a reasonable time frame.  We’ll educate you as best we can and let you in “behind the scenes” so you won’t ever feel stupid or out of control.

an exerpt from by referral only 

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Legal Edge Real Estate, Inc.
Massachusetts Real Estate
Metro Boston, N. Shore & S. Shore
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P: 339‑237‑3930

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