The annual holiday parade in Noblesville was yesterday. It was a rainy, dreary day, but that didn't stop many from attending the parade - including the Noblesville Carpenter office! It was a first for our office, being in the parade, and we worked hard to put it together. From ordering candy to pass out, organizing logo apparel, and decorating the awesome cardboard house, it took a group effort. At the end of the day, we were a wet bunch of Realtors with a collapsed house (dah, cardboard doesn't hold up in the rain), but we all had a terrific time. Noblesville is such a great town - and rain or shine, the towns people will show up to support a local parade.
Holiday Parade Photos
Monday, November 28, 2011
Sunday, November 20, 2011
An offer doesn't always mean a sale
"We got an offer? Terrific!". My sellers were so excited!!! It was a low offer, but in today's environment that isn't uncommon. It also is pretty normal to counter, sometimes several times. So they did. They made a good counter, showed willingness to negotiate and expected a counter in return.
The buyer walked. No counter. No reason. They just rejected the counter.
What????
One month later, another offer. Awesome! This time the sellers were more aggressive with their counter offer. They didn't want to lose another buyer. The buyer countered, a slight movement indicating hard negotiations or possibly their unwillingness to move much on the offer price. So the seller countered again, conceding more.
And the buyer walked. No counter. No reason. They just rejected the counter.
Not again!!!!
The reality is it is a buyer's market. To have two counter offers rejected before indicating an impasse is tough to swallow. There was no indication of 'a final offer', no communication about 'the house is over-priced'. In fact the agent indicated that the buyer wanted to get this together. Obviously they changed their mind.
The moral of the story? The obvious one - get a contract signed as quickly as possible. But the true lesson is to negotiate in good faith, don't play games and hold out to save a thousand dollars. Be aggressive and remember it is a buyer's market!
In case you wondered - my sellers did negotiate aggressively and they gave it all they could. They controlled what they could but unfortunately, the buyers didn't think it was enough. I did talk with both agents, attempting to understand the motivation and rationale behind the buyer's logic and neither could offer much. Both indicated the decision surprised them, too. The buyers apparently just changed their minds.
Now they hope that the third time is a charm!
The buyer walked. No counter. No reason. They just rejected the counter.
What????
One month later, another offer. Awesome! This time the sellers were more aggressive with their counter offer. They didn't want to lose another buyer. The buyer countered, a slight movement indicating hard negotiations or possibly their unwillingness to move much on the offer price. So the seller countered again, conceding more.
And the buyer walked. No counter. No reason. They just rejected the counter.
Not again!!!!
The reality is it is a buyer's market. To have two counter offers rejected before indicating an impasse is tough to swallow. There was no indication of 'a final offer', no communication about 'the house is over-priced'. In fact the agent indicated that the buyer wanted to get this together. Obviously they changed their mind.
The moral of the story? The obvious one - get a contract signed as quickly as possible. But the true lesson is to negotiate in good faith, don't play games and hold out to save a thousand dollars. Be aggressive and remember it is a buyer's market!
In case you wondered - my sellers did negotiate aggressively and they gave it all they could. They controlled what they could but unfortunately, the buyers didn't think it was enough. I did talk with both agents, attempting to understand the motivation and rationale behind the buyer's logic and neither could offer much. Both indicated the decision surprised them, too. The buyers apparently just changed their minds.
Now they hope that the third time is a charm!
Monday, October 17, 2011
Why Professional Photos?
90% of home buyers begin their home search on the internet. If they are looking at homes with terrible pictures, what are the chances that they will like the house? And imagine if there aren't any photos!
I hire a professional photographer to take pictures of every home I list. They have the proper cameras, flashes, and do a much better job capturing the home than I do. A home seller's first showing is on line and without good photos, a potential buyer may overlook the house.
If you hire a Realtor to list you house, don't let them cut corners by taking their own photos. Professional photos DO make a difference!
I hire a professional photographer to take pictures of every home I list. They have the proper cameras, flashes, and do a much better job capturing the home than I do. A home seller's first showing is on line and without good photos, a potential buyer may overlook the house.
If you hire a Realtor to list you house, don't let them cut corners by taking their own photos. Professional photos DO make a difference!
Saturday, June 11, 2011
Lending....sometimes it is a shell game and the buyer often loses.
What's the best interest rate? And how much are the origination charges? Those are two very important questions. But they aren't ALL the questions. Is there a processing fee? Underwriting fee? Is the rate quoted with points? How about the survey and appraisal? How long is the lock on the rate - does it cost more for a 45 day lock? All these questions are important to get an accurate quote.
This week I reviewed three buyer's good faith estimates and to my surprise, on one HUD there were some hidden charges that accounted for $$1500 in additional fees and a .25% higher interest rate. Now, the buyer did get a $2500 credit because they went with a 'preferred lender' - whatever that means. So the additional $1500 in fees was netted out of the $2500 credit leaving the buyer with a $1000 credit. But they are still paying a higher interest rate which quickly adds up. The $1000 savings will soon translate into many thousands of dollars in extra interest.
Buyers are sometimes private about their finances (ok - always private) and as a Realtor, I respected their privacy and let them do their own homework when it came to lenders. Through experience, I have learned to respect their privacy while helping them understand a Good Faith Estimate early in the process. All the numbers are on a HUD statement at closing anyway, so why not help buyers price shop before they commit to overpaying? It is just another service I can provide my clients!
This week I reviewed three buyer's good faith estimates and to my surprise, on one HUD there were some hidden charges that accounted for $$1500 in additional fees and a .25% higher interest rate. Now, the buyer did get a $2500 credit because they went with a 'preferred lender' - whatever that means. So the additional $1500 in fees was netted out of the $2500 credit leaving the buyer with a $1000 credit. But they are still paying a higher interest rate which quickly adds up. The $1000 savings will soon translate into many thousands of dollars in extra interest.
Buyers are sometimes private about their finances (ok - always private) and as a Realtor, I respected their privacy and let them do their own homework when it came to lenders. Through experience, I have learned to respect their privacy while helping them understand a Good Faith Estimate early in the process. All the numbers are on a HUD statement at closing anyway, so why not help buyers price shop before they commit to overpaying? It is just another service I can provide my clients!
Saturday, February 19, 2011
Two Costs to Consider when Buying a House
The price of the house and the price of the money - the two cost you MUST consider when you buy a home.
Think about it. You want the best price, or a deal, on the house. Right? You negotiate down to the final $100. Of course the price of the house is important!
Now it's time to finance the great priced home you just agreed to purchase. Do you consider the cost of the loan? Or is it a cost you assume you can't control?
Consider this:
$150,000 loan for 30 years - 5% interest rate . Monthly Principle and Interest Payment = $805
Two years worth of interest = $15,392
Now take the same loan at 5.25% interest. Monthly payment = $828
Two years worth of interest = $16,173
Hmmm...that's nearly $800 more interest in just two years! Plus $23 a month more for the payment (or $552 over two years). And the equity in the home increased by $200. That means a .25% increase in rates just cost $1500 in two years. And that number grows over the life of the loan. Makes that last $100 you negotiated on the price seem almost irrelevant, doesn't it?
Consider a home worth more than $150,000? Higher priced home = greater difference.
Don't be short sited when you buy a house. Just because you got a great house at a great price, doesn't mean you got the best deal. Make sure you consider the cost of the money. Interest rates are still extremely low! Take advantage or pay more. It's that simple.
Think about it. You want the best price, or a deal, on the house. Right? You negotiate down to the final $100. Of course the price of the house is important!
Now it's time to finance the great priced home you just agreed to purchase. Do you consider the cost of the loan? Or is it a cost you assume you can't control?
Consider this:
$150,000 loan for 30 years - 5% interest rate . Monthly Principle and Interest Payment = $805
Two years worth of interest = $15,392
Now take the same loan at 5.25% interest. Monthly payment = $828
Two years worth of interest = $16,173
Consider a home worth more than $150,000? Higher priced home = greater difference.
Don't be short sited when you buy a house. Just because you got a great house at a great price, doesn't mean you got the best deal. Make sure you consider the cost of the money. Interest rates are still extremely low! Take advantage or pay more. It's that simple.
Thursday, February 10, 2011
How late payments, short sales and foreclosures impact your credit score
I thought this article had a lot of good information regarding the impact a mortgage late payment can have on your credit score. It also explains the implications on your credit score of a short sale and a foreclosure.
How Foreclosure Affects Your Credit Score
Foreclosures—and how you handle them—may have long-term credit score implications. Read
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
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