Risks of Removing Buyer’s Contingencies
Typical real estate offers include a wide variety of standard contingencies. These can include home inspections, appraisal, and loan approval. In a fast-moving, seller’s market, one of the ways to make an offer more appealing is to remove contingencies. Real estate contingencies are intended to protect the buyer from unforeseen issues. Once these contingencies are removed, the buyer typically has no recourse from these issues. The most important contingencies include: • Home Inspections – including mold, well/septic, structural, geological • Lending Approvals – including appraisal, title, loan rate and terms, final loan approval • Property Condition – this relates to the final walk-through, ensuring the property has been maintained during the escrow period Any, or all of these items can create problems during, and even after, the closing period. Without the contingencies in place, the buyer is obligated to conclude the sale and any financial costs incurred by the seller for not doing so, including the forfeiture of their deposit. Most of the United States is experiencing an advancing market. This means prices are rising at a steady pace. As a result, both buyers and sellers expect to settle on a sales price higher than recent, comparable sales. Buyers are desperate to have offers accepted and are willing to compromise on contingencies designed to protect them. Ensure you thoroughly review all contingencies or the waiver of them with your agent prior to making an offer.
3 Pricing Strategies in a Seller’s Market
Real estate markets across the country are experiencing a strong seller’s market right now. For potential sellers, this may be a golden opportunity to get top value for their property. While it may be tempting to aim for the sky when setting the listing price, that may not be your best option. Here are 3 pricing strategies to consider before deciding on your asking price. 1. Listing at Market Value Buyer’s love “realistic sellers.” After considering the market data for your area, choosing to list at the current market value can attract the right buyer and encourage a solid offer or two. Typically, this results in a full-price offer with straightforward terms. 2. Listing High It is always tempting to list ahead of the market, especially in a seller’smarket. This strategy is risky and can mean you waste valuable time bysitting on the market with little interest. Even in a strong sellers’ market, buyers will shy away from overpriced listings. If listing above market value, experts suggest not higher than 5-7% higher. 3. Listing Low Listing below market value will attract attention. The goal of this strategy is to encourage a bidding war that results in a sales price over market value. This works best for homes in turnkey condition and can backfire if the home is unappealing and you receive low or no offers and must adjust the price again. A seller’s market presents opportunities. Working with your agent, discuss theoptions and trends in your local market to get the best offer and terms.
Landlords - 8 Amenities to Include in Your Rental Unit
The increase of pricing in the housing market and lack of inventory has left some potential homebuyers renting instead of purchasing. As a result, these renters may not just be viewing rentals as just a temporary steppingstone to homeownership and expect their rentals to have nicer amenities than in previous decades. If you’re a landlord, there are 8 amenities your rental should consider including: 1. Dishwasher – Rentals without dishwashers may experience more turnover than those that include one. 2. Washer and Dryer – With all the great space-saver appliances on the market, there is no excuse not to find room for a washer/dryer unit. 3. Alarm System – Security systems cost a few hundred dollars and can add value to your rental. 4. Pest Control, Gardener, Pool Service – Renters are looking for lowmaintenance homes. Including these services in your rent also ensures your property stays in great condition. 5. Private Parking – Whenever possible, make sure there is a designated parking spot for the renter. 6. Outdoor Space – While not always possible, when looking for new investment properties, opt for one with outdoor space. 7. Home Warranty – avoid unexpected repair costs by adding a home warranty to the property. Rentals have become a necessary alternative to homeownership for some. These renters will pay top dollar for the best properties. Make sure your unit stands out by offering the amenities modern renters want.
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