Real Estate Counteroffers: Is There a Limit to How Long This Can Go On

On October 16, 2017   /   Home Buying  
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real estate offers

By: Julie Ryan Evans

Is there a limit on the number of real estate counteroffers home buyers and sellers can make? You might be wondering this if you’re in the throes of negotiating a real estate deal. You offer X, the seller counteroffers with Y, you volley back and hope it’s over; yet on and on it goes, like a never-ending tennis match. Exactly how long can this last? Is there a limit to real estate counteroffers?

Alas, there is not.

“Unfortunately, there’s no legal limit to how many counteroffers buyers and sellers can make,” says Michele Lerner, author of “Homebuying: Tough Times, First Time, Any Time.” “Counteroffers can be made as part of the negotiating process until there’s a signed agreement between the buyer and seller, or the seller decides to take their home off the market.”

Real estate counteroffers, explained: Why won’t they stop?

In some cases, a stream of counteroffers might be a stalling tactic on the part of sellers who are really hoping a better offer rolls in. That makes sense for them, but it’s plenty frustrating if you’re trying to buy the property.

“One way to get past your frustration and perhaps move negotiations forward is to mentally put yourself in the seller’s position,” Lerner says. “If you owned this home, you might want to hold out for the highest possible offer, too.”

If you really want this home—and suspect sellers are holding out for more money—then one thing you can do to safeguard your deal is to include an escalation clause, which basically says, “I will pay a certain price for this home, but if the seller receives another offer that’s higher than mine, I’m willing to increase my offer.”

Kathryn Bishop, a Realtor® in Studio City, CA, says if you do include such a clause, you should make sure to get in writing that the escalation applies only to a verified offer. “Verification includes a copy of the highest offer to the buyer’s agent and a copy of the proof of funds or pre-approval so these can be verified.”

How to end a real estate counteroffer stalemate

In some cases, it’s really not about money. Your Realtor should be able to find out from the listing agent what the sellers really want and if there are other interested buyers.

“If the sellers are looking for flexibility on the closing date or want you to waive the home inspection contingency, you may be able to win their signature on a contract without offering more money,” Lerner says. “You should still have a home inspection for information purposes so you know what you are buying. You can also offer to have the sellers live in the home rent-free for a period of time if they need to find their next home.”

Sean Keene of the Keene Group in Oregon says he’s seen as many as six counteroffers in a deal—which is too many.

“After the first couple, people are getting petty over little things,” he says. “The agents should be on the phone talking it out way before that point and get it done.”

Sometimes, however, the deal is just not meant to be.

“Unfortunately, you may also find you simply cannot compete, and the sellers will accept another buyer’s offer,” Lerner says. “In that case, you’ll need to move on and look for a home in the same area or another neighborhood that meets your requirements.”

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Lake Martin waterfront sales up over the past year

On October 9, 2017   /   Uncategorized  
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lake martin marina

By: Bryan Davis

The Lake Martin waterfront median sales price during August was $421,000, an increase of 15.3 percent from August 2016.

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: Lake Martin waterfront sales totaled 37 units during August, a 23.2 percent increase from the same period in 2016. Sales for August 2016 on Lake Martin’s waterfront totaled 30 units. It is important to note that even single-digit changes in the home sales total can cause double-digit percentage changes.

lake martin graph

Supply: The Lake Martin waterfront housing inventory in August was 247 units, a decrease of 6.8 percent from August 2016 and 44.7 percent below the July peak in 2010 of 447 units. August inventory decreased by 33.2 percent from July. There were 6.7 months of housing supply in August (6 months is considered equilibrium).

Pricing: The Lake Martin waterfront median sales price during August was $421,000, an increase of 15.3 percent from August 2016 and 4.3 percent below the prior month. Pricing will fluctuate from month to month because of changing composition of actual sales (lakefront vs. non-lakefront) and the sample size of data (closed transactions) being subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry analysis: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”

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Don’t Budge: 7 Compromises You Should Never Make When Buying a Home

On September 25, 2017   /   Home Buying  
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7 compromises on home buying

By: Wendy Helfenbaum

Every successful home search begins with a wish list. Armed with your inventory of must-haves, you’ll know how to focus your search and recognize a potential home that isn’t worth your time.

Still, there’s a strange thing that seems to happen when you’re deep in the trenches of house hunting: The more you look, the longer that wish list seems to grow. But sooner or later, you have to own up to the fact that you can’t have everything—it’s inevitable that you’ll make some compromises somewhere.

And, in these days of tight inventory and cutthroat competition from other buyers, you might feel forced to waver far afield from your hallowed wish list in order to land a home.

That’s OK—it’s important to be flexible. But there are a few times when you absolutely should draw the line. Here are seven areas where you’ll want to dig in your heels.

1. Buying a fixer-upper when you really want turnkey

You have never swung a hammer, have a phobia of power tools, and always pictured yourself in something new and shiny. But that doesn’t mean you won’t fall in love with a charming, century-old farmhouse that needs a ton of work. Now’s when you have to decide: Are you up to the financial and emotional challenges of taking on major renovations?

It’s an option you should seriously consider (with the help of an experienced general contractor) if you’re in a highly competitive market. But if you don’t think your bank account or your marriage could survive many months of upheaval, stick to your guns and insist on a turnkey home, says Mike Kessler, a broker with TSG Residential, in Davidson, NC.

“There have been times when I’ve said to clients, ‘after being with you for a week, I really think we need to look at new construction,'” Kessler says. Many of those clients, he adds, were later grateful for the course correction, saying, “We would never have been able to enjoy ourselves in [an older] house.”

2. A good school district

Even if you don’t have children, you should make sure the house you’re eyeing has desirable schools nearby, says Tina Maraj, a Realtor® with Re/Max North Orange County in Fullerton, CA.

Does it matter if you’re not looking to have a few kids? Well, things can always change. But even if they don’t, good schools typically translate to a higher resale value—potential buyers with families will want to be in the right district.

Just make sure to do your research and determine where the home sits in relation to the school district boundaries.

“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” Maraj explains. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”

Go to the school district’s website to get a map of the district boundaries.

3. The floor plan

Does the home fit your minimum criteria in terms of number of rooms and the flow of the main living areas? If not, cross it off your list, says Sarah Garza, a Realtor and military relocation specialist with Trident Homes Realty in Arnold, MD.

Garza can share some personal cautionary tales: A military spouse, she’s moved 12 times in the past 20 years, buying and selling nine homes in the process.

“I regret that I compromised on layout in the past,” she says. “When I really needed four bedrooms, I’ve gone to three and then wished I hadn’t.”

Sure, you can add on. But don’t use that option as a fallback, Maraj warns.

“You can change a layout to make it an open floor plan, but it’s a lot more difficult to change the bedroom and bathroom count,” she says. “In the long run, you could end up having a lot of problems and taking on a really big financial undertaking.”

4. The neighbors

During your search, don’t just focus on the house you’re interested in—check out the neighboring homes as well, Maraj says. Are the properties well-kept, or candidates for an episode of “Hoarders”?

The condition of the properties around you can affect your future resale value. And they can just plain drive you crazy. Make sure you look—and listen—any time you visit your prospective home.

“You can’t change the house in front of you or to the side of you,” Maraj cautions. “And if there’s a barking dog every time you’re viewing the property, that’s another thing that you absolutely cannot change.”

5. Your budget

You’ve probably already determined how much you’re willing to pay for a home—and you shouldn’t budge on that number. But you should also dig in your heels on the additional costs beyond the sticker price. That means setting a budget for your monthly payments, HOA dues, utility costs, and real estate taxes—and sticking to it. (Hint: You want to do this before you start looking at homes, and definitely before you start making offers.)

Yes, a lender will give you a pre-approval and tell you how much house you can afford. But this is just one piece of the puzzle, and the costs of homeownership can still land you in a mountain of debt if you’re not careful, Kessler points out.

“I try to do a lot of pre-planning with clients about what can they really afford, as opposed to what the bank tells you,” Kessler says. “You never want to be house poor.”

6. Commute time

If you’ve already determined that you’re willing to take on a 30-minute commute, don’t allow yourself to be swayed into anything longer, Garza says.

“Sometimes buyers fall in love with all the shiny bells and whistles of a house that’s an hour away from work, and want to compromise on what they’ve told me from the beginning,” she notes. “I tell them, ‘I know it doesn’t matter right now because you really love this house, but that’s two hours every day that you’ll be sitting in the car and not enjoying your house. Is that worth it to you?’”

She adds: Until you’ve actually driven the route to and from your potential home and your office, at the times you’ll be commuting, you should never consider compromising.

In some large cities, being just a few miles from the highway can tack on an additional hour of commuting. Could you handle that after a long day in the office? Think carefully before making the sacrifice.

7. Parking

Speaking of your car, if you own one (or two), you absolutely want a guaranteed spot to park, whether that means an enclosed garage, a driveway, or assigned parking.

“There are many communities that now restrict outside parking, guest spaces, and overnight parking, which could be a real homeowner nightmare if you have to fend for yourself,” Maraj says.

To avoid frustration after you’ve closed a deal, stick to your guns about the things that are most important to you while making your choice, and ignore the rest of the noise.

 

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170 Marina Point Road Lake Martin AL

On September 18, 2017   /   Lake Martin Real Estate  
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170 marina point road

170 Marina Point Road Lake Martin AL
4 Bedroom 3 Bath

Click for Details Here

Recently updated to include hardwood floors, tankless hot water, decks front and back, 4 large bedrooms and 3 large baths. Walking distance to marina and short golf cart ride to the pool, tennis courts, playground, public golf course, and Coppers Grill. Lake view off back decks.
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So Why Are You Selling?’ 10 Answers You Should Never Give

On September 11, 2017   /   Selling a Home  
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why are you selling

By: Daniel Bortz

“Why are you selling your house?” might seem like a perfectly innocent question from home buyers, but watch out—if you’re the home seller they’re asking, this is one of the diciest questions you can answer. The reason: Pretty much any explanation you give is bound to contain revealing info that these home buyers could use against you, thereby compromising your negotiating power.

“Home buyers are looking for any indication that you’d be willing to accept an offer that’s below list price,” says Annapolis, MD, real estate agent Greg Beckman. “If you say the wrong thing to a buyer, the person might make you a lowball offer.”

To prevent that from happening, Beckman recommends sellers let their listing agent handle communication with prospective buyers. “Let your agent do all the talking,” he says, adding that sellers shouldn’t be present for showings or open houses.

That said, there are times when you might still interact with home buyers—say, if they arrive early for a showing or linger until you return. If that happens, and if the seller asks why you’re selling, you want to have a short, neutral response prepared in advance, says San Francisco real estate agent Allison Fortini Crawford. Such as: “We love the home, but we’re ready for a change.”

So, what’s a bad answer? Well, there are many, actually, like these doozies below.

‘I got transferred for my job’

This is one of the most common reasons why people sell their house. In fact, 17% of people surveyed by the moving company Allied Van Lines said they’ve been relocated for a job. Nonetheless, revealing this to home buyers could make them think that you’re desperate to sell fast and, in turn, lead them to make a lowball offer.

‘Our family needs a bigger house’

Trading up? Don’t relay that to home buyers. The reason is pretty simple: “You don’t want to give buyers the idea that the house may not be enough room for them, either,” says Crawford. Similarly…

‘Now that our children have left the nest, we’re ready to downsize’

Downsizing makes total sense for empty nesters and retirees, but likewise, you don’t want home buyers to think that your house is too large and difficult to maintain.

‘We need a smaller mortgage payment’

There are a couple of reasons why this response is a bad idea. First, you don’t want to give the impression that the house is too expensive or overpriced. Second, you don’t want home buyers to presume that your finances are in such poor shape that you’d accept a lowball offer. Put simply, “Never discuss your financial situation,” says Beckman.

‘We’ve already bought our next house’

If you want to fetch top dollar for your house, don’t divulge that you’ve already purchased your next home. “It makes the home buyer think that there’s a sense of urgency and that you have to sell quickly,” says Crawford—which is a valid assumption, considering that a lot of people can’t afford to carry two mortgages at once.

‘We want a quieter neighborhood’

Steer clear of saying anything that could paint the neighborhood in a negative light. Even saying that the area is quiet could backfire. “You don’t know what a home buyer wants,” says Beckman. For instance, some people are drawn to areas with a hopping night life (and the noise that entails), or at least a place where the streets aren’t barren by 8 p.m.

‘We need to move closer to our parents to help care for them’

Many people move to be closer to family—and in some cases, it’s out of necessity. However, there’s no need to share that information with home buyers, since this suggests you have to sell your home pronto.

‘My back problems make it too difficult for me to climb the stairs’

A number of home sellers move out of two- or three-story houses for health reasons. However, you don’t want to draw attention to the fact that there are a lot of stairs throughout the home, since it could scare off older home buyers or home buyers with young children.

‘Our utility bills are through the roof’

Energy-efficient home features are all the rage nowadays, which makes sense when you consider that home owners spend on average $1,945 a year on their energy bills. But some home buyers still overlook utility costs when they go house hunting. So, the very last thing you want to do is draw attention to the fact that your gas or electric bills are expensive.

‘The house is too difficult for us to maintain’

No one wants to buy a money pit. So, even if you’re selling a clear fixer-upper, don’t mention maintenance costs to a home buyer. Also avoid talking about repairs that you just never got around to making, like repairing the bathtub caulking, as well as big projects like replacing the 20-year-old water heater—all reasons for home buyers to think twice about making an offer.

 

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