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How to Decide Between Multiple Offers - 5 Tips Worth Reading

by Susan Borrelli

When the market favors the seller, there's always the possibility of a multiple offer situation. These tips from a recent Re/Max.com blog post are worth sharing. 

 

Sellers: How to Decide Between Multiple Offers

Thu, November 12, 2015

What a splendid dilemma! You’ve received several offers on your property. Which one should you choose? It’s not always the highest one.

Here are just some of the areas your agent could ask you to pay particularly close attention to as you're weighing the options.

1. Do the math.
This goes beyond simply calculating the dollar difference between the various offer prices. Before you do that, be sure to do all the math. Subtract things like seller subsidy, home warranty, temporary housing (see 4.) and potential repairs to determine the net proceeds of each offer.

2. Consider the financing.
Can the buyer provide proof from the lending bank that there are funds to back the offer? Your agent can help verify this – and help you understand the terms of the buyer's financing.

3. Motivation.
Do the buyers have a baby-sitting parent in the neighborhood? A new job just around the corner? Buyers with extra motivation to purchase your home are less likely to press for concessions and more likely to work harder to close the deal. Some buyers even include a personal letter with their offer to explain why they want the home. These letters can be particularly helpful in multiple-offer situations.

4. Timeline.
Note the closing date each offer proposes. You'll want a closing date that best meets your needs. You can always counter a closing date, too, if the best offer doesn't quite meet your timeline.

***I've added #5 because it's been a talking point raised by several of my clients recently.

5. Peace of Mind. If a quick sale and peace of mind that the cash is in the bank are your priorities, then a quick settlement may outweigh a few thousand dollars. This was the case for one of my clients who wanted to proceed quickly to settlement before making an offer on a new home. She had two offers but the higher priced offer couldn't close for 60 days. She elected to take a few thousand dollars less in return for a swift settlement. If this sounds more your speed, that's fine- just think it through and do your homework. Do you have a place to stay or will you need to pay for short term housing? How much will it cost to store your belongings? How much will a moving company charge for a tiered move? Those are some of the things to research before accepting an offer on your home. Give me a call, I can help.

Weighing the pros and cons of each offer can be tricky. An experienced agent can help you clarify, calculate and secure the very best deal for you.

If you're considering selling your home and would like to know what your home is worth in today's market, give me a call at 703-216-2620 or contact me by email at SusanBorrelliHomes@gmail.com.

A New Year Brings New Hope to the Spring Real Estate Market

by Susan Borrelli

The beginning of the year always brings about hope, excitement and anticipation of good things ahead and 2016 is no different.  We believe that this year will be a much better year for real estate in Northern Virginia.  There are many reasons for this optimism – great rates, new financing programs, lower inventory levels, positive consumer confidence and pent-up demand.

Let’s review each of these areas.HOPE SPARK IN 2015 REAL ESTATE MARKET

  • Great rates. Although there has been a very slight uptick in rates recently, rates remain very low historically.  Additionally, the interest rates will remain low through 2015 perhaps not reaching 5% until later in the year.
  • New financing programs. Freddie Mac and Fannie Mae have both begun to accept 3% down payments for first time home buyers.  There will be guidelines such as a minimum 620 credit score, borrowers will have to take an educational class, and they couldn’t have owned a home in the last 3 years to qualify.  With 45% of renters delaying a home purchase because of available funds for a down payment, this should increase the number of home buyers in 2015.
  • Lower inventory levels. In September of this year, we reached a 7 year high in inventory in Northern Virginia with 9,163 houses for sale.  Since that time, the number of available homes has declined each week.  We now have just 5,944 homes for sale which resulted in a brisk sales month for December.  Some of these properties will come back on the market this upcoming spring, but many sold.  As long as we have a moderate winter weather-wise, inventory will slowly enter the market and we won’t have the accelerated inventory levels we experienced in May of 2014 due to the weather.
  • Positive consumer confidence. Many more people today believe that the economy, their personal situation and the real estate market are all going to be better in the future.  These optimistic expectations are leading indicators to people purchasing in the upcoming months – including housing.  Additionally, Freddie Mac and builders also have high expectations of the housing market.  These expectations will have a positive impact on housing in 2015.
  • Pent up demand. As previously mentioned, December experienced a brisk sales month here locally.  We continue to receive calls, emails and internet requests on our homes for sale.   This shows us that there are many people ready to buy the right home that suits their personal lifestyle needs.  Also, many people who went through distressed sales just a few years ago are able to purchase again.  Job growth coupled with population growth locally will also increase demand for housing.

One other area to see home ownership grow in 2015 and beyond is the Millennial homebuyers.  They believe in home ownership as a wealth building opportunity and an overwhelming majority of them will be buying in the next 5 years.  Lastly, rising rental rates will push more people into ownership as a cost savings measure.

All of these positive influences in our region will strengthen our housing market in 2015 and beyond.  As we see our local economy continuing to rebound after 4 years of stagnant growth, this will have a positive impact on housing.  To see what this means to you, please feel free to contact me.

Cheers in the New Year!

 

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