Multiple offer situations

It's been way too long since I've blogged. I blame the Spring market keeping me busy or maybe my week long vacation to Redondo Beach, CA to visit my sister and brother in-law, but honestly that's really no excuse. So here is my most recent experience that I feel buyers will find helpful in todays real estate market.

While I was away in California, I submitted 2 offers for the same buyers; both of which were rejected for more favorable competing bids. Although it's disappointing and frustrating, my buyers just found a home they both loved (husband and wife didn't always see eye to eye), offer is accepted and we are moving forward with inspections this week. I'm truly a believer in "what's meant to be will be."

*How do you handle bidding wars? How do you beat the competition?*

First a foremost, don't get serious about buying a home without a mortgage pre-approval letter. A seller will not even consider your offer without proof from a bank that you can afford the home.

Secondly, go in strong with the intention of really wanting to the home. Even when there are not multiple offers, make an offer that you believe is fair.
Have your Realtor call the listing agent to get an idea if 1. there are other offers 2. does seller have a settlement preference (it's not always about price, convenience is a negotiating term too) 3. if they would give an idea of where the offers are i.e. low, around asking, over asking, etc.

I'm not going to sugar coat it, usually stronger financing (i.e. 20% down) or cash deals win over FHA or VA financing. Sellers like the stability of a lot of money down. But it's not always the case. One of my sellers chose an FHA buyer over a cash buyer because they felt the young family would enjoy and care for the home more than the other. This is unusual, but it can happen. T.V. shows have showcased buyers writing a letter and that honestly could help.

Third, eliminate or reduce contingencies. I recommend having the mortgage and inspection contingency, but if you can waive certain inspections, that helps.
Also, consider not having an appraisal contingency. Or even reduce the mortgage contingency to 20 days instead of 30 if your lender can do that.

Having an experience buyers agent by your side is priceless in todays market. Multiple offer situations are just one more reason why you need someone representing and fighting for you.
If you have questions or want to start your buying process, contact me today.
Kelly Kneeland Steyn
KSKneeland@gmail.com
484-343-2406
www.KellyKneeland.com

Buying New Construction Important Tips

They invite you in to a beautiful home with perfect landscaping and impeccable interior decorating. It's not difficult to fall in love with everything, it's a model home! Even real estate agents use "Looks like a model home" in their advertisements because people love that look and feel.

If you want a brand new home, here are some things to consider:

You may think you don't need a buyer's agent since there is a sales manager at the community site. This is wrong. You need someone representing YOU and YOUR interests. The sales manager is representing the seller, not you. Just like buying a resale, you don't pay for your buyer agent, the seller does- so have one!

Having personally sold new construction for a builder, I know the right questions to ask and so do other agents who've worked with builders too. Such as; features included ("standard") with homes, upgrades you don't typically think of (i.e. light switch at top & bottom of the stairs may cost extra), lot premiums, understand their complex builder contracts, ect. In general, there are a lot of things to consider when buying "dirt" so it's important to take your time and make sure everything is explained thoroughly.

The process can be long. Some builders are giving a 12 month build time frame, others as little as 6 month. This will depend on builder, location and home. If you want new, it's important to start looking sooner than later.

Pros and Cons:
The biggest advantage, I feel, is you get to design the home to your taste. You choose your flooring, cabinets, countertops, etc to meet your style. Also, everything is new and yours! That can be very exciting!
Another important advantage is new homes are more energy efficient. This will keep your monthly utility costs low as well as your ongoing operating costs over the years.

However, a disadvantage for having all new things is it will result in a more expensive home. You're paying for all those features in the home and at builder cost.
Also, keep in mind when you're in a new development there will be construction for a while. So get use to the dirt and vehicles for a while.
Another important thing to keep in mind is that sometimes settlement gets delayed due to weather and vendor supplies. Don't plan your entire life around their "proposed" settlement date.

Important questions to ask the builder/sales rep:

How long have you been in business?

In what areas have you built?

What sets you apart from other builders?

What type of warranty program do you offer?

What are your fees for building a home (fixed price, costs plus management fee)?

How do you charge for extras?

Who supervises your construction?

How long have your trade people been working with you?

How often will we be updated on the progress of the home?

How often, during the week, are you at the job site?  The superintendent?

Who will I be dealing with during construction?

Like all things, there are pros and cons and being educated helps determine what's best for you.

For more questions or information about buying new construction throughout Philadelphia area, contact me. 

Quick Fixes to sell your home

Home buyers lean towards well-cared for homes, period. 
If you're selling your home this year (and you should because inventory is low throughout Philadelphia!), here are 4 quick and affordable tasks you should do to make your home standout among your competition. 

Clean- It's Spring anyways so get a good deep clean or spend $150-$300 and hire a cleaner to come and really get your home to sparkle. 
Start by purging and putting away unnecessary items. Buyers notice if a home is packed with clutter. The next step is a thorough cleaning. Plan to take a day to scrub countertops and appliances, vacuum and wash floors, dust, clean windows, and scrub bathrooms. Invest in deeper cleaning such as shampooing your rugs, washing curtains, or scrubbing hidden areas like closets if needed. Although you may not think that a messy house will matter to buyers, creating an environment that’s clean and clutter-free will send an important message: that you take pride in your home and it has been well cared-for while you’ve lived there.

Paint Base Boards and Doors
A quick and effective way to refresh is by painting baseboards and doors. Choosing a crisp white paint color will help brighten up and modernize your home. While the process of painting may sound tedious, the results are worth it. 

Replace Cabinet Knobs
While shopping for new hardware, look for a timeless, classic style. Avoid trendy or busy knobs that could turn off certain buyers. This job can be done in a matter of hours and will leave your kitchen looking fresh and new. Remember: kitchens and bathrooms are huge selling points for potential buyers. 

Trim bushes and trees
Don't underestimate the importance of a well maintained lawn. Curb appeal is so important. Potential buyers will drive by your home and will judge the inside by your outside maintenance. 
Trim bushes away from the home and make sure they don't block windows. Get rid of any dead leaves and branches.
Plant a few Spring flowers or place in a container garden on your porch or front steps. 

Weather is warming up so don't hesitate- get your home ready today!