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How to make the best purchase offer in a seller’s market

By: Noel Anderson – Realtor®
January 24, 2020

You’ve worked with a Realtor® to scour the listings, toured what feels like a million houses and finally found it: the house you want to call home. The next step is to make your purchase offer, and if you are like most people, the prospect can be quite intimidating. In a seller’s market, there can be even more pressure on the buyer to submit an impressive bid. So how can you make sure that the offer you submit is the one that is accepted?

In a seller’s market, home prices are a bit higher and inventory is lower. This means you are more likely competing with multiple bidders. In a competitive market like this, buyers need every advantage they can get, and working with a Realtor® to make the best purchase offer is a smart move. And, believe it or not, the bid with the highest price is not always the one that wins.

Of course, sellers want to get the best price for their home, but that isn’t always the deciding factor. Eliminating or reducing the number of contingencies with your bid, through things like pre-offer inspections, can also help make your offer stronger. The bid that causes the least amount of hassle for the seller is the one that will probably win.

That doesn’t mean, however, that you should just submit a below market offer with no contingencies.  This is not the time to make a lowball offer.  When you are going up against more than one potential buyer, it’s the time to put your best foot forward.  This might be your one chance to convince the owner to sell their home to you, so it’s all the more important to submit your best possible purchase offer.   

If you can pay cash for your home, will increase the chances your offer will be accepted. Sellers’ appreciate all-cash offers as they usually mean a quick, streamlined purchase. Financing issues, such as delays in mortgage approval or getting funds moved from the buyer’s bank account, are the primary causes of delays in the closing process. If a seller can avoid a lengthy or complicated process by choosing an all-cash buyer they likely will.  

For most people, however, a cash offer isn’t a possibility, and you’ll need to qualify for some variety of mortgage financing. If this is your situation, I cant stress the importance enough of getting preapproved for a mortgage before you begin the search process. With loan preapproval, you’ll be able to make a solid commitment to buy, and your offer will be more appealing to the seller.

And of course, the most important thing that you can do to give yourself an advantage is to hire a Realtor®. Realtor®s have real insights and unparalleled knowledge of your local market and can help you navigate the complicated home buying process.

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Press Release

Noel Anderson – HomeSmart Realtor™
Earns NAR’s Military Relocation Professional Certification
Military Personnel and Veterans Benefit from
Realtor® Expertise in Military Benefits, the Relocation Process, and Support

Phoenix, Arizona, January 26, 2020 —Noel Anderson with HomeSmart International, has been awarded the nationally recognized Military Relocation Professional Certification.  The National Association of Realtors® awards the MRP certification to Realtors® who help military personnel, veterans and their families find housing that lets them make the best use of their benefits and serves the unique needs of military life.

When military staff and their families relocate, the services of a real estate professional who understands their needs and timetables can make the transfer easier, faster and less stressful.  Realtors® who earn this certification know to work with active duty military buyers and sellers, as well as veterans. 

“Service members may only have a couple of days to view properties and make an offer, and others might be deployed at the time and need someone who can represent them while they’re away. Working with a Realtor® who understands the singular complications that arise with military service can help make the home buying process simpler, faster and less stressful,” said National Association of Realtors® President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “The MRP certification lets home buyers and sellers know that a Realtor® knows the ins and outs of military housing benefits, such as zero-down payment loans, and the specific needs service members and veterans have when searching for their new home.”

The certification provides NAR’s members with resources to accommodate current and former military service members at any stage of their military career and is an approved elective for NAR’s Accredited Buyers Representative designation. To earn the MRP certification, Realtors must be in good standing with NAR; complete the MRP Certification Core Course; complete a reading providing background information on the military, included acronyms and understanding military culture; and complete two webinars.

For more information about the MRP certification, visit www.militaryrelocationpro.org

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Pending Home Sales Jump Despite Lagging Inventory

December 30, 2019 – Realtor Magazine

Pending home sales rose 1.2% in November after slipping the prior month, according to the National Association of REALTORS®’ latest housing report, which was released Monday. Year-over-year contract signings were up 7.4% nationally, according to the report.

November’s Pending Home Sales Index reached 108.5; an index of 100 is equal to the level of contract activity in 2001. The West region of the country reported the highest monthly growth in pending home sales at 5.5%, while the Midwest jumped 1%. The Northeast and South saw only minor adjustments in month-over-month contract activity.

“Despite the insufficient level of inventory, pending home contracts still increased in November,” said NAR Chief Economist Lawrence Yun, noting that housing inventory has been in decline for six straight months. “Favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand.”

At NAR’s first-ever Real Estate Forecast Summit earlier this month, housing economists predicted 2% GDP growth, a 3.7% unemployment rate, and a 3.8% average mortgage rate. “Sale prices continue to rise, but I am hopeful that we will see price appreciation slow in 2020,” Yun said at the event. “Builder confidence levels are high, so we just need housing supply to match and more home construction to take place in the coming year.”

Here’s the regional breakdown of November results:

  • West: Pending home sales grew 5.5% and were up 14.0% from a year ago.
  • Midwest: Pending home sales rose 1%  and were  5% higher than a year ago.
  • Northeast: Pending home sales slid 0.1% but were 2.6% higher than a year ago. 
  • South: Pending home sales decreased 0.2%, but were 7.7%  higher than a year ago.