What You Need to Know About Buying a Home During the Holiday Season

If you’re house hunting over the holidays, you’re likely a serious buyer with an immediate need. Perhaps you have to relocate for a new job opportunity, or there’s been a change in your personal life? Regardless, while you may assume it’s not an ideal time to be looking — namely because there isn’t much to look at — there are some advantages to buying this time of year.

Less competition

Let’s start with the obvious one: less competition. This lowers the chances of multiple offers and bidding wars (something we saw a lot of last spring/summer), and should translate into a bigger discount for you. Know your market! This is where sites like Zillow come in handy. Start your research here for comps in your area and to see what homes are selling for.

Serious home sellers

Why would sellers pick such an inconvenient time — while everyone is busy entertaining family and friends and enjoying the spirit of the holidays — to list their properties? Probably because they need to sell and may feel compelled to do so before the end of the year for tax purposes. What this means for you: less hassle when it comes to negotiating; a greater willingness, on the part of the seller, to agree to concessions; less chance of the seller waffling; and greater respect for your offer, even if it’s a little lower than the seller was perhaps expecting.

Faster mortgage approval

Lenders aren’t as busy this time of year, and less volume could mean faster approval. Some lenders might even be willing to reduce fees during the off-peak season in hopes of gaining your business. Regardless, don’t just go with the first lender who comes along. It pays to shop around. Get multiple quotes and check out lender reviews on Zillow Mortgage Marketplace.

Greater affordability

Sure, home prices have been rising, but they’re typically lower in December than during any other month (so you don’t have to be as aggressive with your initial first offer, compared with buying during peak to high season). Zillow’s third quarter Real Estate Market Reports showed home value appreciation slowing. As we enter the slower home shopping season many overheated markets are moving away from bubble brink and ultimately becoming more affordable than they have been historically. If you want to take advantage of low interest rates, the time to act is now.
Source: http://www.zillow.com/blog/2013-11-19/what-you-need-to-know-about-buying-a-home-during-the-holiday-season/

Knowing Common Mistakes Helps First-Time Home Buyers

When a first-time home buyer begins hunting for the prize that has to serve both as a satisfactory home base and a solid investment, most feel a mixture of excitement (a home is a landmark achievement!) and maybe just a touch of apprehension. Like any expense you’ve never encountered before, it’s appropriate to take extra care the first time out — and to pay attention to what experience teaches. Along those lines, here are some mistakes that are easy for a first-time home buyer to make. Fortunately, they’re also easy to sidestep:

1. Waiting for a better rate

Adjustable rates may well be about as low as they’re going to get right now – and some signs point to an increase in the coming months. For a first-time home owner who will be taking out a loan, if the property is right, hesitating to make a commitment based on a loan rate gamble is seldom a good idea.

2. Thinking short term

Consider thinking of a home as a lifetime investment. Even for those who are single or newly-wedded, it’s possible that being open to a house with extra rooms could end up saving considerably on moving, transaction and agent fees, taxes, etc. It’s equally important to look at neighborhoods and how they are changing and developing. If you do resell your home, location can make a big difference in how.

3. Underestimating hidden costs

The monthly mortgage payment isn’t the ultimate bottom line. When a first-time home buyer comes across a property that fills (or exceeds) everything he or she has been looking for, if the mortgage payment looks to be right, it’s easy to overlook other homeowner expenses. Experienced buyers make hardheaded estimates of maintenance fees and property taxes — they will be every bit as consequential as the mortgage bill.

For a first-time home buyer in Evansville, when thoughtful perspective goes into your final decision, it’s that much more likely to be a decision that pays off in the long run. If you are preparing to buy this fall, I’ll be standing by to help get you started! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Unconventional Wisdom for Beating Out Cash Offers

Conventional wisdom dictates that home sellers prefer cash offers. So what is a typical would-be buyer in Evansville to do when the competition comes forward with an all-cash offer? Cash offers may come from any of a variety of deep-pocketed parties: institutional investors, foreign investors, wealthy families or individual investors.

Beyond doing basic due diligence — gathering as much intel as you can about the property and the seller’s needs — if you’ve found the perfect home and are convinced it is the best property for your family, consider one or more of these tactics:

Bidding over asking — even by as little as 2% or 3% — can sometimes win the day, according to Noah Rosenblatt, founder of Urban Digs, a real estate analytics company. Cash buyers typically factor in opportunity costs, making it less likely that they will go beyond a certain price threshold. No one wants to pay more for a property than necessary, but going “over asking” may be the only way to secure an ideal property when cash offers are competing.

Removing any contingencies from your offer will help strengthen your position and may well convince a local seller that you are the party most likely to close successfully. The downside is that you will be assuming whatever risk had been the subject of the contingency in the first place. For example, if you were to submit an offer less any inspection contingencies, you might have to pay more than budgeted down the road if undiscovered repairs crop up.

The seller’s goal is maximize net return, so any term you add that puts more money in the seller’s pocket can sway the decision in your favor. Creative thinking pays. You might offer to pay the seller’s closing costs, cover your own Home Warranty policy, or any other add-on that has the desired effect.

While cash may be king in most cases, there are ways to compete with cash offers in Evansville. If you are looking for an agent with constructive solutions to help you find and secure the right property, why not call me today to take advantage of this fall’s inventory? You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com

Winter Months Bring Opportunities Along with Challenges

When you step outside and feel a crisp chill in the air, you know it: winter is on the way. If events have so ordered themselves that you find yourself selling your home in Evansville during the winter months, you’re probably aware that it is not the preferred real estate season. Prospects are less likely to be out and about touring properties when the weather can interfere; the holidays take huge chunks out of everybody’s schedule (not to mention the havoc wreaked on family budgets) — plus, the aura of optimism that arrives at springtime won’t arrive until far in the future…

Nonetheless, selling your home during the winter months is eminently doable! In fact, because fewer offerings will be competing for the quite determined corps of would-be homebuyers, selling your home during the winter months can actually yield an outstanding result. Veteran sellers know how to maximize that prospect:

1. Advertise with spring or summer photos

Showing what your house looks like when the weather’s prettiest will be warmly received. Don’t rely on prospective homebuyers’ imaginations to do it as well.

2. Make your home cozy 

Selling your home in Evansville during the cooler months is actually an opportunity to show it at its “homiest.” Light the fireplace; turn on all the lamps; bake those chocolate chip cookies (or light scented candles — cinnamon is a holiday favorite).

3. Fine-tune the thermostat

People are turned off when a home feels chilly — just as they appreciate stepping into a warm and cozy listing (especially if they were just touring a vacant home).

4. Set a reasonable asking price

If you are going to be selling your home in Evansville during the approaching holiday season, it’s not the best time to “test the market.” Selling in a timely manner requires pricing the property accurately. You want to motivate the serious buyers to take a break from holiday obligations to turn out to view your house. 

If you’ve been contemplating the idea of selling your home in Evansville, know that there will be winter buyers out there. Call me today — let’s find them! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com