Fielding a Lowball Purchase Offer on Your Home

Article From Houselogic.com

By: Marcie Geffner

Published: June 10, 2010

Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.

You just received a purchase offer from someone who wants to buy your home. You're excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counteroffer that keeps the buyers involved in the deal.

CHECK YOUR EMOTIONS

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that's a counteroffer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.

COUNTER THE PURCHASE OFFER

Unless you've received multiple purchase offers, the best response is to counter the low offer with a price and terms you're willing to accept. Some buyers make a low offer because they think that's customary, they're afraid they'll overpay, or they want to test your limits.

A counteroffer signals that you're willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you'd like to take with you.

CONSIDER THE TERMS

Price is paramount for most buyers and sellers, but it's not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

REVIEW YOUR COMPS

Ask your REALTOR® whether any homes that are comparable to yours (known as "comps") have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

CONSIDER THE BUYER'S COMPS

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

If the buyers don't include comps to justify their low purchase offer, have your real estate agent ask the buyers' agent for those comps.

GET THE AGENTS TOGETHER

If the purchase offer is too low to counter, but you don't have a better option, ask your real estate agent to call the buyer's agent and try to narrow the price gap so that a counteroffer would make sense. Also, ask your real estate agent whether the buyer (or buyer's agent) has a reputation for lowball purchase offers. If that's the case, you might feel freer to reject the offer.

DON'T SIGNAL DESPERATION

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home's listing describes you as a "motivated" seller, you're signaling you're open to a low offer.

If you can remedy the situation, maybe by renting furniture or asking your agent not to mention in your home listing that you're motivated, the next purchase offer you get might be more to your liking.

MORE FROM HOUSELOGIC

6 Tips for Choosing the Best Purchase Offer for Your Home(http://buyandsell.houselogic.com/articles/6-tips-choosing-best-offer-your-home/)

6 Reasons to Reduce Your Home Price(http://buyandsell.houselogic.com/articles/6-Reasons-To-Reduce-Your-Home-Price/)

Marcie Geffner is a freelance reporter who has been writing about real estate, homeownership and mortgages for 20 years. She owns a ranch-style house built in 1941 and updated in the 1990s, in Los Angeles.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.

7 Tips for a Profitable Home Closing

Article From Houselogic.com

By: G. M. Filisko

Published: February 10, 2010

Be sure you're walking away with all the money you're entitled to from the sale of your home.

When you're ready to close on the sale of your home and move to your new home, you may be so close to the finish line that you coast, thinking there's nothing left for you to do. Not so fast. It's easy to waste a few dollars here and for mistakes to creep into your closing documents there, all adding up to a bundle of lost profit. Spot money-losing problems with these seven tips.

1. TAKE SERVICES OUT OF YOUR NAME

Avoid a dispute with the buyers after closing over things like fees for the cable service you forgot to discontinue. Contact every utility and service provider to end or transfer service to your new address as of the closing date.

If you're on an automatic-fill schedule for heating oil or propane, don't pay for a pre-closing refill that provides free fuel for the new owner. Contact your insurer to terminate coverage on your old home, get coverage on your new home, and ask whether you're entitled to a refund of prepaid premium.

2. SPREAD THE WORD ON YOUR CHANGE OF ADDRESS

Provide the post office with your forwarding address two to four weeks before the closing. Also notify credit card companies, publication subscription departments, friends and family, and your financial institutions of your new address.

3. MANAGE THE MOVERS

Scrutinize your moving company's estimate. If you're making a long-distance move, which is often billed according to weight, note the weight of your property and watch so the movers don't use excessive padding to boost the weight. Also check with your homeowners insurer about coverage for your move. Usually movers cover only what they pack.

4. DO THE SETTLEMENT MATH

Title company employees are only human, so they can make mistakes. The day before your closing, check the math on your HUD-1 Settlement Statement.

5. REVIEW CHARGES ON YOUR SETTLEMENT STATEMENT

Are all mortgages being paid off, and are the payoff amounts correct? If your real estate agent promised you extras-such as a discounted commission or a home warranty policy-make sure that's included. Also check whether your real estate agent or title company added fees that weren't disclosed earlier. If any party suggests leaving items off the settlement statement, consult a lawyer about whether that might expose you to legal risk.

6. SEARCH FOR MISSING CREDITS

Be sure the settlement company properly credited you for prepaid expenses, such as property taxes and homeowners association fees, if applicable. If you've prepaid taxes for the year, you're entitled to a credit for the time you no longer own the home. Have you been credited for heating oil or propane left in the tank?

7. DON'T LEAVE MONEY IN ESCROW

End your home sale closing with nothing unresolved. Make sure the title company releases money already held in escrow for you, and avoid leaving sales proceeds in a new escrow to be dickered over later.

OTHER WEB RESOURCES

(http://www.realtor.com/home-finance/sellers-basics/closing.aspx)Closing costs explained(http://www.homeclosing101.org/costs.cfm)

G.M. Filisko is an attorney and award-winning writer who has survived several closings. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.

6 Tips for Choosing the Best Offer for Your Home

Article From Houselogic.com

By: G. M. Filisko

Published: February 10, 2010

Have a plan for reviewing purchase offers so you don't let the best slip through your fingers.

You've worked hard to get your home ready for sale and to price it properly. With any luck, offers will come quickly. You'll need to review each carefully to determine its strengths and drawbacks and pick one to accept. Here's a plan for evaluating offers.

1. UNDERSTAND THE PROCESS

All offers are negotiable, as your agent will tell you. When you receive an offer, you can accept it, reject it, or respond by asking that terms be modified, which is called making a counteroffer.

2. SET BASELINES

Decide in advance what terms are most important to you. For instance, if price is most important, you may need to be flexible on your closing date. Or if you want certainty that the transaction won't fall apart because the buyer can't get a mortgage, require a prequalified or cash buyer.

3. CREATE AN OFFER REVIEW PROCESS

If you think your home will receive multiple offers, work with your agent to establish a time frame during which buyers must submit offers. That gives your agent time to market your home to as many potential buyers as possible, and you time to review all the offers you receive.

4. DON'T TAKE OFFERS PERSONALLY

Selling your home can be emotional. But it's simply a business transaction, and you should treat it that way. If your agent tells you a buyer complained that your kitchen is horribly outdated, justifying a lowball offer, don't be offended. Consider it a sign the buyer is interested and understand that those comments are a negotiating tactic. Negotiate in kind.

5. REVIEW EVERY TERM

Carefully evaluate all the terms of each offer. Price is important, but so are other terms. Is the buyer asking for property or fixtures-such as appliances, furniture, or window treatments-to be included in the sale that you plan to take with you?

Is the amount of earnest money the buyer proposes to deposit toward the downpayment sufficient? The lower the earnest money, the less painful it will be for the buyer to forfeit those funds by walking away from the purchase if problems arise.

Have the buyers attached a prequalification or pre-approval letter, which means they've already been approved for financing? Or does the offer include a financing or other contingency? If so, the buyers can walk away from the deal if they can't get a mortgage, and they'll take their earnest money back, too. Are you comfortable with that uncertainty?

Is the buyer asking you to make concessions, like covering some closing costs? Are you willing, and can you afford to do that? Does the buyer's proposed closing date mesh with your timeline?

With each factor, ask yourself: Is this a deal breaker, or can I compromise to achieve my ultimate goal of closing the sale?

6. BE CREATIVE

If you've received an unacceptable offer through your agent, ask questions to determine what's most important to the buyer and see if you can meet that need. You may learn the buyer has to move quickly. That may allow you to stand firm on price but offer to close quickly. The key to successfully negotiating the sale is to remain flexible.
G.M. Filisko is an attorney and award-winning writer who has survived several closings. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.

Ron Howard & Associates, one of the leading real estate teams in the Baltimore-Metro area, was named the number twenty two Re/Max sales team in the Central Atlantic Region for 2010 up to May. 

During one of the toughest real estate markets in recent history, Ron Howard & Associates created many innovative programs, including the 1st Baltimore area iPhone app.  They also increased their advertising online, launched a video blog and have continued to sell many homes.   "Generally you see agents with big or many different builders as clients on the top 25 list, most of our clients are individual home owners and our team is so proud of helping so many families in this tough market" said Ron Howard, team leader of the group. "We're proud to be on the list, volume has never been our focus, it's been customer service, and with good service, you'll grow and make these kind of lists".

“I’ve got a great team of highly motivated, educated and succesful agents,” Ron said, “you'd be hard pressed to find a sharper group of agents in our market". "We've been on the front lines of this tough market, battling in the trenches and getting winning results, I'm so proud of our team to step up and get the results our clients need".

For more information contact Ron Howard @ 410-814-2404.

The Top Market Pro iphone app allows you to view Maryland real estate information on every home for sale around you. It's free! Move through a neighborhood and see homes for sale with GPS technology pinpointing properties for sale.

Watch it in Action...

Check out our launch party...

May 28, 2010

By Hibah Yousuf, staff reporterMay 24, 2010: 12:18 PM ET

NEW YORK (CNNMoney.com) -- Existing home sales soared in April as home buyers scrambled to claim the tax credit that expired at the end of the month, according to a real estate industry report released Monday.

The National Association of Realtors reported that existing home sales jumped 7.6% last month to a seasonally adjusted annual rate of 5.77 million units, up from the upwardly revised rate of 5.36 million in March. Sales year-over-year were up 22.8%.

The home buyer tax credit, which expired April 30, pushed sales up during the month since buyers had to sign contracts by the end of last month. First-time home buyers qualified for a tax credit up to $8,000, while those trading up could score as much as $6,500.

Despite the termination of the tax credit, NAR president Vicki Cox Golder also anticipates buyer traffic to hold up in May and June.

"Some realtors tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months," she said.

Price and inventory: The NAR report showed that the median price of homes sold in April was $173,100 in April, up 4% from a year ago. About a third of homes sold during the month were distressed properties.

Total housing inventory rose 11.5% to 4.04 million existing homes for sale. That represents a 8.4-month supply at the current sales pace, up from a 8.1-month supply in March.

Yun said that although inventories remain higher than normal, the house pricing correction is nearly over.

"In fact, a majority of the markets have seen price gains lately," he added. "A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles."

Sales by property and region: Sales of single-family homes rose 7.4% in April compared to the prior month, while condominium and co-op sales spiked more than 9%.

The Northeast fared best last month, with sales surging 21.1% to an annual level of 1.09 million units in April, which was 41.6% higher than a year earlier.

Resales in the Midwest climbed nearly 10% last month, while they rose 8.6% in the South and 6.2% in the West.  

http://money.cnn.com/2010/05/24/real_estate/existing_home_sales/index.htm?section=money_latest&utm_source=twitterfeed&utm_medium=twitter

Las Vegas

LAS VEGAS — Smaller, cheaper, simpler.

Or, as Eliot Nusbaum put it, it's all about cents and sensibility. Nusbaum is executive editor for design at Better Homes & Gardens magazine, which annually polls its readers and others to get a sense of what's hot in housing or, as the current case may be, tepid. In the current market, even tepid will do.

Nusbaum recently presented the magazine's read of current homebuyer sentiment recently to attendees at the International Builders Show, the annual convention and trade show of the National Association of Home Builders. The publication polled readers who say they plan to purchase a home within the next year, in addition to gauging the sentiments of designers, builders and others. Their responses indicate that they absolutely get it that the real estate boom is over and it's time to start acting like grown-ups.

"Downsizing continues," said Nusbaum, who added that his reader sentiments were right in line with NAHB data showing that, for the first time since the early 1980s, the average newly built home declined in size, to 2,480 square feet from 2,520 square feet. "And we're seeing practical considerations. Homebuyers' priorities are price, energy, organization and comfort."

So, they're looking for rooms that can do double duty, he said. For example, buyers and people who are remodeling still want a home office, but many said they'd prefer one that also can serve as a craft or hobby room.

And though, like last year's show, the exhibitor booths on the trade show floor were filled to overflowing with products that boasted a "green" label, consumers are tailoring their definition of the word.

"They're moving away from that term to ‘energy efficiency,'" Nusbaum said. That is, when it comes to their houses, saving the rain forest is less on homebuyers' minds than saving on their heating bills.

He said home features made from recycled materials or produced with sustainability in mind are important to buyers only up to a point.

"Builders say their clients have a general interest in it, but as the price is presented, it falls away," Nusbaum said.

That sentiment was seconded by Rose Quint, the NAHB's assistant vice president for survey research, who poured out a raft of separately compiled data on just what homebuyers are looking for.

"I see a theme of energy efficiency," Quint said. She cited a list of 40 features that are considered "must-haves" by active home seekers. The top spots were dominated by such things as programmable thermostats, energy-efficient windows and well-insulated front doors.

Granite countertops didn't make that must-have list, she said. I heard the same thing at a separate presentation on kitchen trends, in which prominent kitchen designers said the material has become so widely available that it's being looked at as something for a "starter kitchen."

Is this a whoa moment?

Not at all, said Nusbaum, who's confident that granite is still an object of desire.

His magazine's research suggests that it's such a priority that home remodelers will make economic trade-offs, such as painting the old cabinetry, in order to get it.

Along the downsizing lines, the percentage of homes with three or more bathrooms or four or more bedrooms declined in 2009, Quint said. Along the same lines, the average new home cost $267,000 in 2009, down from $293,000 the year before.

Both Quint's and Nusbaum's studies indicate that even with other space-squeezing going on, homebuyers will dig in their heels on larger kitchen size.

"There's a return to thinking about spending more time with family," Nusbaum said, and thus the ability to eat at a kitchen table, as opposed to stools at a countertop, is highly desirable.

Make the exterior, including landscaping, as low-maintenance as possible, Nusbaum said. "Gardening is still America's top hobby, but most people don't want to deal with it."

This housing sobriety is probably going to outlast the recession, said Quint. She said this movement is being driven by first-time and financially chastened buyers.

"First-time homebuyers coming to the market is an impact that will last for years," she said. "Plus, the era of easy money is over. And because money is tight, I think this is here to stay."

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.

Visit for all the details: http://www.federalhousingtaxcredit.com/