Are you currently shopping for a new home? While it’s true that real estate transactions can be stressful, this stress can be minimized by following a few simple tips. For example, following proper etiquette plays a big role in making your real estate experience go smoothly, and in this post we’ll share four key etiquette tips that are sure to help.

Get Preapproved

Prior to shopping, a buyer should check with a lender to determine the maximum loan amount they qualify for. This is proper etiquette because both the seller and the real estate broker have likely prepared themselves and assume you have as well.

Keep It Professional

Shopping for a home seems personal, but keeping interactions on a professional level can ease the awkwardness of the process. One step in that direction is being considerate of others’ schedules. Proper etiquette includes being realistic about how many properties can be seen in a span of time. Allowing time for a sellers’ special conditions, pets or children is also good etiquette.

Negotiate Through A Representative

When it’s time to negotiate pricing between a buyer and seller, the real estate agent should be used as the intermediary. While touring a property, it is best not to make offers or discuss how much the house is priced for, or make any counter offers without involving the real estate agent. It is also not advisable to point out stains, outdated designs or noticeable damage in the hopes of getting a discount.

Use Closing Credits

Home sellers should not be surprised once a buyer has decided to close and begins to negotiate the price. Home inspections reveal problems a home has and the buyer’s willingness to continue negotiating can depend on how willing the seller is to address those problems. A closing credit can be a win-win for both parties. If the buyer and seller of the home agree on closing credits instead of repairs and inspections, the buyer has the option of hiring a contractor and dealing directly with the contractor if not satisfied. Meanwhile, sellers are typically ready to move out or are not living at the property, so closing credits save them time.

Well-mannered people handle real estate transactions in a way that lets them join the ranks of successful buyers and sellers who operate with as little stress as possible. The good news is that real estate agents can help with understanding what proper home-buying etiquette is. Call a real estate agent to receive guidance on how to navigate a real estate transaction with ease.

Bidding wars can be ugly, nasty things – but with the right tactics, you can come out a winner without having to double your offer. Welcome to basic training – today, you’ll learn how to navigate the obstacle course that is a real estate bidding war and come out on top. Put these three strategies to use and you’ll easily win the home of your dreams.

Offer To Pay The Deposit In Cash

It’s not usually wise to make a down payment in cash, but paying cash for the deposit is a brilliant strategy that will put you first in line for your new house. One major reason why homes don’t sell is because the buyer didn’t get approved for financing – and that inconveniences the seller. Paying your deposit it cash proves your reliability to the seller, and it means the seller gets paid faster.

Add A Personal Touch With A Letter

Want to get a completely unfair advantage over other buyers in your neighborhood? Make your offer personal by writing the sellers a heartfelt letter. Marketing professionals know that emotional experiences are highly persuasive, and a personalized hand-written letter shows that you care.

For maximum effect, do a quick Google search on the sellers and look for common threads. Do the sellers have a child in college? Talk to them about your college-aged son or daughter and what program they’re taking – it may sound cliché, but a little bit of bonding really does go a long way.

“Escalate” The Situation With An Escalation Clause

When most buyers write up their formal offer, they simply name a price and that’s it. But you can set yourself apart from other potential buyers by including an escalation clause in your offer.

An escalation clause is a piece of a real estate contract that increases your offer in the event that you get outbid. An escalation clause usually lists your original offer, the amount by which you’re willing to beat other bids if you get outbid, and the maximum amount you’re willing to offer in the event that there are multiple offers. Escalation clauses are usually best used when you know that there will be a one-day review of all offers or when you’re anticipating multiple offers – otherwise it may compromise later negotiations.

Bidding wars aren’t ideal, but they are a reality of the real estate market – especially in competitive areas where it’s the norm to see multiple offers on a house. But with these tactics, you can outgun competing bidders and come out with the house you’ve always wanted. Contact your trusted real estate professional to learn more about navigating a bidding war and making a winning offer.

It can take a time and effort to find the perfect home to purchase. After you have found that home, you need to convince the seller that your offer is the one they want to choose. There may be multiple offers made at the same time, and you may be in a situation where you are competing for the home.

Even if your offer is the only one the seller receives, there is no requirement that they must accept the offer you make. Crafting an effective offer that will catch the seller’s attention is important, and you may be able to accomplish this by following a few tips.

Offer Close To The Asking Price

One of the first things most sellers will look at when they receive an offer is the price you are offering to pay. You may feel as though the seller is asking too much for the home, and your agent may advise you to offer a lower price. On the other hand, there may be multiple offers, and you may feel as though you need to offer a price higher than what is being requested. With your real estate agent’s advice in mind, consider that a seller will be more inclined to accept an offer if it is close to what they are asking. If your offer is too low, they may decline it without looking at the other merits to your offer.

Request A Quick Closing

When you prepare your offer, one of the factors that you will have control over is the requested closing date. Sellers generally want to close quickly, but this is not always the case. Each market is unique, but a general rule of thumb is to offer a closing date that is 21 to 28 days away, contingent on mortgage approval. You may work with your real estate agent and mortgage company to determine when a reasonable closing date is. However, offering a quick closing generally shows that you are a motivated buyer.

Choose A Shorter Option Period

A sales contract has an option period, which allows the buyer to back out of the deal for any reason. This may be a time when you get your third party reports, such as the property inspection, completed. A shorter option period may be preferred by sellers. This is because the buyer is generally locked into the contract contingent on mortgage approval after the option period has expired.

Offer A Higher Non-Refundable Good Faith Amount

When you make an offer, you will also give the seller a good faith or earnest money deposit. The amount of the deposit will be disclosed in the contract, and you will typically hand it off after the offer has been accepted. This is the amount of money that you stand to lose if you do not follow through on the terms of the contract. A higher good faith or earnest money amount shows that you are serious about buying the home.

There are many factors that a seller is thinking about when reviewing an offer. While the entire offer will be reviewed fully, the fact is that these factors are generally given significant weight in most seller decisions. You can work with your real estate agent to structure the best offer possible.

You’ve found the perfect new house or condo, and you are now preparing an offer that you believe the seller will find tempting enough to accept. However, you know that there are going to be thousands of dollars in closing costs that need to be paid before the sale is completed and you become the home’s new owner.

The question is, should you ask the seller to pay some or all of the closing costs? In today’s blog post we’ll address this question and list a few scenarios in which you may want to consider having the seller pick up the tab.

Ask if You’re Offering the Full Listing Price

If you’re prepared to offer the full asking price for the home you can certainly include the caveat that the seller assist with some or all of the closing costs. Many sellers will price their home slightly higher than they expect to receive as they believe that buyers will submit low initial offers which need to be negotiated.

For example, if a home is listed at $275,000 a seller might actually be expecting $260,000 or $265,000 for it. You can offer $275,000 but ask that they take care of the closing costs.

Ask if You’re Confident the Seller Has Few Other Options

If the home has been on the market for a number of months or if you’re fairly confident that the seller isn’t going to find much luck elsewhere you can ask them to pick up the closing costs as one of your purchase conditions. You’ll obviously want to negotiate in good faith, but if you’re coming from a position of strength you can leverage this in to some additional savings.

Ask if You’re Ready to Close Immediately

Are you ready to sign on the dotted line today? If you’re sure that this is the right home for you, let the seller know that as long as they’re willing to assist with the closing costs and accept your bid that you’ll start the closing process today. Nearly all sellers will be willing to make a small sacrifice to get the deal done.

As you can see, there are a number of situations in which it makes sense to ask the seller to shoulder some of the closing costs. If you have found a home that you wish to purchase and you’d like advice on how to proceed, contact a real estate agent today. An experience real estate professional can help you craft an offer that the seller won’t be able to refuse.

If you’ve been searching the real estate market for a while and you’ve finally come across a home that you love, it’s possible you may be ready to pounce at any price. However, if you’re hoping to bring the seller’s price down for a deal that’s closer to what you want to spend, here are some ways you may be able to have your home and pay the right price too.

Get Some Background on the Sale

It’s important to realize that by understanding the motivation of the seller, you’ll be better able to give them the kind of deal they’re looking for. So, instead of going into it blind, ask questions to try and determine why the home is on the market. If the motivation happens to be time-related, and the current owners are moving to a new city or have purchased another home, you may have some leeway in terms of what you’re offering. By knowing the motivation ahead of time, you’ll be able to better align your offer with the seller’s expectations.

Research the Surrounding Market

This will definitely be something that a real estate agent should help you with, but utilizing a Comparative Market Analysis (CMA) will enable you to determine the sale price of houses in the area and should give you an idea of what constitutes a reasonable offer. While it’s important that this compendium is made up only of properties that have successfully sold in the local neighborhood, this can easily reveal if the seller’s price is standard and should give you insight into what the limitations in your offering price should be.

Consider a Quicker Close

It can seem like real estate all comes down to price, but there are a number of things you may be able to offer the home seller that may make them seriously consider a lower offer than they were hoping for. Instead of thinking only in terms of price, you may want to suggest a closing date that is sooner than usual; in the event that they’ve already purchased a home this will work out better for them in terms of cost savings and may make up for a difference on price.

If you’ve found your ideal home after viewing a lot of houses and you’re wondering how you can make it a better deal, you may score a lower price by being aware of a seller’s motivations or offering a quicker closing date. If you’re curious about other tips for real estate success, you should contact your trusted real estate agent for more information.

Bidding wars can be ugly, nasty things – but with the right tactics, you can come out a winner without having to double your offer. Welcome to basic training – today, you’ll learn how to navigate the obstacle course that is a real estate bidding war and come out on top. Put these three strategies to use and you’ll easily win the home of your dreams.

Offer To Pay The Deposit In Cash

It’s not usually wise to make a down payment in cash, but paying cash for the deposit is a brilliant strategy that will put you first in line for your new house. One major reason why homes don’t sell is because the buyer didn’t get approved for financing – and that inconveniences the seller. Paying your deposit it cash proves your reliability to the seller, and it means the seller gets paid faster.

Add A Personal Touch With A Letter

Want to get a completely unfair advantage over other buyers in your neighborhood? Make your offer personal by writing the sellers a heartfelt letter. Marketing professionals know that emotional experiences are highly persuasive, and a personalized hand-written letter shows that you care.

For maximum effect, do a quick Google search on the sellers and look for common threads. Do the sellers have a child in college? Talk to them about your college-aged son or daughter and what program they’re taking – it may sound cliché, but a little bit of bonding really does go a long way.

“Escalate” The Situation With An Escalation Clause

When most buyers write up their formal offer, they simply name a price and that’s it. But you can set yourself apart from other potential buyers by including an escalation clause in your offer.

An escalation clause is a piece of a real estate contract that increases your offer in the event that you get outbid. An escalation clause usually lists your original offer, the amount by which you’re willing to beat other bids if you get outbid, and the maximum amount you’re willing to offer in the event that there are multiple offers. Escalation clauses are usually best used when you know that there will be a one-day review of all offers or when you’re anticipating multiple offers – otherwise it may compromise later negotiations.

Bidding wars aren’t ideal, but they are a reality of the real estate market – especially in competitive areas where it’s the norm to see multiple offers on a house. But with these tactics, you can outgun competing bidders and come out with the house you’ve always wanted. Contact your trusted real estate professional to learn more about navigating a bidding war and making a winning offer.