Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Selling Your Home? 3 Reasons Why You May Need to Accept a Bid That’s Below Your Asking Price

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Selling Your Home? 3 Reasons Why You May Need to Accept a Bid That's Below Your Asking PriceWhen a homeowner makes the decision to sell his or her property, it is most common for a skilled real estate professional to provide valuation services so that a reasonable asking price can be established. While the asking price may seem fair to the homeowner, the fact is that not all properties will sell at the original asking price. There are several instances when a homeowner may need to consider accepting a bid that is below the asking price.

When The Property Has Been On The Market For A While

Most homeowners will learn about the average listing time for similar properties in the market through their trusted real estate agent, but some homes will remain on the market for longer than average. When this happens, a homeowner may begin to get concerned, and the real estate agent may even bring up the idea of reducing the asking price. When an offer is received below asking price in this situation, a homeowner may need to consider the offer.

When There Is A Question About Property Style Or Condition

There are many factors that will play a role in the desirability of a property in the marketplace, and some of these factors relate to the property style and condition. Some similar homes in the local area may be selling more quickly or for a higher price than others due to better overall condition or improved style. If the homeowner has concerns about this or if the real estate agent or others who have toured the property have voiced concerns about style or condition, accepting an offer below asking price may need to be considered.

When The Homeowner Needs To Sell Quickly

Even if property has not been listed on the market for a long period of time or the property style and condition are desirable, the owner may consider accepting the first offer received regardless of the asking price in some cases. For example, a homeowner may need to sell the property quickly due to financial issues, because of a job relocation or to take advantage of other financial opportunities. Unless the offer is unreasonable, the homeowner may consider accepting a lower bid in these situations.

Homeowners often wonder if they should wait for a higher bid or accept the offer that has been presented to them. Each situation is unique, so there is not a catch-all answer to this question. Those who are thinking about selling their home in the near future can contact their trusted real estate professional for further assistance.

Did You Know? The Location of Your Home Plays a Role in Your Selling Price – Here’s Why

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Did You Know? The Location of Your Home Plays a Role in Your Selling Price - Here's Why One of the most common questions homeowners have before listing their home for sale relates to the selling price. Understanding the value of the home is about far more than just comparing the square footage of the space with other homes that have recently sold in the area. While there are many factors that will play a part in a selling price, location is an important factor for several different reasons.

Neighboring Properties

The properties that are located next to the home for sale are critical to the property value. For example, a home that is located next to a park or a beautifully maintained home may have more appeal than a home located next to a strip center or a gas station. Even with homes that are located just a block or two apart, this difference in adjacent properties can have a dramatic impact on properties values.

Safety Concerns

When a home is located in an unsafe area or an area that is riddled with crime, safety concerns can lower property values. Many home buyers will review crime statistics about a location before making a buying decision, and high crime areas are far less appealing to buyers. Properties are ultimately only worth what someone will pay for them, and buyers may overwhelming opt to purchase homes in safer locations unless the sales price is lowered.

Vehicular and Pedestrian Traffic

There are some advantages to being in an area with heavy vehicular or pedestrian traffic, such as if you live in an urban area and are searching for a property that offers this lifestyle. When a home is located in heavily trafficked areas in a suburban or rural location where a quieter way of life is desired, these can be drawbacks that impact the selling price. If one home is located on a busy street corner and another similar home is located a few blocks away removed from traffic, the home with a more desirable location will typically have a higher selling price.

Desirability is often directly related to property location, and homes in more desirable locations will therefore have a higher selling price than those in an undesirable location. For those who are thinking about selling a property soon and who want to learn more about its value, a consultation with your trusted real estate agent can provide you with helpful information.

What’s Ahead For Mortgage Rates This Week – June 8, 2015

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What's Ahead For Mortgage Rates This Week - June 8, 2015Last week’s economic news included reports on construction spending, Freddie Mac’s mortgage rates survey and several employment related reports. The details:

Construction Spending Jumps

The Commerce Department reported that construction spending reached its fastest annual pace since November 2008. Most of the momentum was caused by construction of apartments, commercial projects and roads, and construction of single family homes. Builders spent 2.20 percent more in April than they did in March, which equated to an annual outlay of $1.01 trillion for all types of construction spending. Analysts said that increased spending in construction indicated that the housing sector could see improvement as construction provides more jobs.

Mortgage Rates Mixed

Freddie Mac’s weekly survey of mortgage rates reported that average mortgage rates were mixed last week. Average rates were reported as follows: 30-year fixed rates were unchanged at 3.87 percent with discount points also unchanged at 0.60 percent. The average rate for a 15-year fixed rate mortgage fell from 3.11 percent to 3.08 percent with discount points unchanged at an average of 0.50 percent. The average rate for a 5/1 adjustable rate mortgage rose by six basis points to 2.96 percent with discount points unchanged at 0.50 percent.

Employment Reports Suggest Stronger Labor Market

Several labor-related reports released last week suggest that job markets are gaining strength as they continue to improve. ADP, a private-sector payrolls company, reported 201,000 new jobs in May against April’s reading of 165,000 new jobs. The Labor Department released its Nonfarm Payrolls report for May and reported 280,000 new jobs against expectations of 210,000 new jobs and April’s reading of 221,000 new jobs.

Average hourly wages rose by 0.30 percent and surpassed expectations of a 0.20 percent increase and April’s reading of 0.10 percent. Although incremental, this suggests that labor markets are strengthening to a point where employers are comfortable with increasing wages.

Weekly Jobless claims were reported at 276,000 new claims filed as compared to expectations of 278,000 new claims and the prior week’s reading of 284,000 new jobless claims filed. The national unemployment rate for May ticked up to 5.50 percent from the prior month’s reading of 5.40 percent, but this reading remains below the Federal Reserve’s original benchmark of 6.50 percent for potentially raising the target federal funds rate. The Fed has not moved to change the rate, but analysts expect that this could occur by Fall if economic conditions hold steady.

What’s Ahead

Next week’s scheduled economic reports include job openings, retail sales, consumer sentiment along with the usual weekly reports on mortgage rates and weekly jobless claims.

Hunting for the Best Local Schools? Here Are 5 Checklist Items You’ll Want to Look For

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Hunting for the Best Local Schools? Here Are 5 Checklist Items You'll Want to Look ForThere are numerous factors that you may review when choosing a new place to live. If you have children, the quality of the schools and the level of education that your kids will receive in the schools is important. However, you may not be certain how to determine if a school is good or not. When you are looking at schools, use this helpful checklist to guide you in making a great decision.

Achievement Data

One of the easiest factors for you to research about different school districts and individual schools is achievement data. This may include the percentage of students graduating high school versus dropping out, the enrollment percentage for college, SAT and ACT scores and other relevant data. This is typically published online, or a call to the district’s office may provide you with the information.

Student to Teacher Ratio

The student to teacher ratio can vary drastically between school districts. This will impact how much personal attention your child receives as well as how crowded the classrooms are. Generally, the lower the number, the better overall experience your child may receive.

A Safe Location

The last thing you may want is for your child to be exposed to safety issues or to feel threatened or intimidated in school or while getting to or from school every day. You can research crime statistics online for the area surrounding the schools, and you can visit the school personally to visibly inspect the area.

Extracurricular Activities

The school age years are a time for kids to experience many new things. Everything from a drama and art club to a wide range of sports can benefit kids. Consider reviewing extracurricular activities available for younger and older students alike so that you can get a better idea for the experiences that a child may have outside of the classroom.

A Positive Environment

A final important factor to consider is the environment in the school. You will need to set up a tour of the school to experience this yourself. The staff members and students should be happy and positive. Remember that this is a place where your child may spend many long hours each day.

Where you choose to live will impact what school your child attends. Therefore, it is important to review the schools carefully before you make a final buying decision for a new home.

Understanding Escalation Clauses and When You’ll Want to Automatically Raise Your Offer

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Understanding Escalation Clauses and when You'll Want to Automatically Raise Your OfferReal estate sales contracts can be confusing, and there seem to be contingencies and special circumstances for many different events built into a standard contract. One option that your real estate agent may ask if you are interested in is an escalation clause. This is typically an optional clause that you can choose to invoke if you desire, so you should take time to learn more about what it is before you make your offer.

What Is an Escalation Clause?

It can take a considerable amount of effort and time on your part to locate the perfect home to purchase, and the last thing you may want to do is to lose the home that you have fallen in love with during a bidding war with another buyer. However, you also do not want to make an offer that is so high that it is not attractive or beneficial to you. Ideally, you want to get your dream home at the lowest price possible.

An escalation clause essentially permits you to make an offer, but it has a built in option for a higher offer that will go into effect if the seller receives an offer higher than what you have offered. Essentially, it serves as an immediate response to a second offer to protect you in the event you are involved in a bidding war.

How to Use an Escalation Clause

An escalation clause can be highly beneficial, but you do need to understand how to use it. First, your initial offer should be competitive enough so that the seller shows interest in it. Second, your escalation clause offer should serve as your maximum offer. This offer ideally will remain in the limits of the market value of the home. It also should still be affordable for you to purchase. If you are not comfortable making a higher offer or if your higher offer would price it out of market value range, you may consider not using the escalation clause.

The ability to automatically raise your offer with an escalation clause can be beneficial when this clause is used properly. You can speak with your agent more about the interest in the home by other buyers as well as the overall market conditions to determine if using an escalation clause would be beneficial for you when you are structuring an offer to present to a seller.

Saving Up for Your Down Payment? Try These Money-Saving Tips To Speed Things Up

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Saving Up for Your Down Payment? Try These Money-saving Tips to Speed Things UpOne of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home.

You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the options that others have successfully used to save money for their home purchase.

Make Saving Automatic

One idea that works well for many people is to make saving for your new home automatic. This may be as simple as scheduling a regular draft or transfer from your checking account when your paycheck is deposited into your savings account. Some employers may even facilitate this process by contributing some of your funds into a savings account on your behalf. With this option, the money would go directly into your savings account without you having a chance to spend it.

Take Advantage of Retirement Accounts

If your employer provides you with the option of investing in an employer-sponsored retirement account, you should take advantage of this option. Many will offer a dollar-for-dollar matching program, and this may essentially double the amount of money that is saved in the account.

More than that, the funds from many retirement accounts may be withdrawn without penalty if they are used for a first-time home purchase. There are some rules and regulations regarding this, so you should research this option more thoroughly.

These are among the two best options for saving money for a down payment for your first home purchase. There are other ideas that you can consider as well. For example, you may borrow from a whole life insurance policy, obtain a gift from a family member or even sell some of your personal belongings that you no longer need or use.

When you combine many of these ideas together, you may be surprised how quickly your down payment fund can grow.

Do You Need a Real Estate Attorney to Help Close Your Home Purchase? Let’s Take a Look

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Do You Need a Real Estate Attorney to Help Close Your Home Purchase? Let's Take a LookWhen buying a new home, you may have a close eye focused on your budget and expenses, and your goal may be to keep related expenses to a minimum. However, you may also be well aware that a real estate purchase is a legal transaction, and you may be wondering if you need to pay for legal services from a real estate attorney. With a closer look, you can make a better decision that is right for your home buying plans.

The Legal Forms Used With A Typical Transaction

The majority of real estate contracts will be written using standard legal forms. These are legally binding forms with clauses that protect buyers and sellers alike. While they are standard forms, you do want to read the forms in their entirety and understand your obligations before signing the contract. Keep in mind that you are not required to use these forms, and you can request an attorney to prepare a separate contract for you. However, these are commonly used forms that real estate agents typically will use.

The Services Of A Real Estate Agent

A real estate agent is not a legal professional, and your agent likely will not be licensed to practice law in the state. However, the agent can explain your obligations with a standard contract so that you have a better understanding about what you are committed to. Your real estate agent may refer you to a real estate attorney if you require a special contract to be drawn up or if you are not comfortable with different clauses in the standard forms.

When Special Situations Arise

The standard real estate contracts will typically be feasible for use with most transactions, but there are special situations that may arise from time to time. For example, you may only want to purchase a portion of a large estate. While the seller would need to subdivided, your attorney would need to review special documents to ensure the transaction is legal. Perhaps you want to purchase real estate in a corporation or under another entity, or you want to protect your rights when purchasing property with a partner who you are not legally married to.

While real estate agents are not legal professionals, they are able to prepare standard contract forms for you and explain them to you. Because of this, many people will not need to pay for additional legal services, but each situation is unique. When you speak with your trusted real estate agent about your upcoming purchase, he or she can help you to learn more about services an attorney may provide that the agent is not able to.

What’s Ahead For Mortgage Rates This Week – June 1, 2015

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Whats Ahead For Mortgage Rates This Week June 1 2015Last week’s economic reports included the Case-Shiller Home Price Indexes, FHFA’s House Price Index and Pending Home Sales from the Commerce Department. The details:

Home Prices Dip in March, Pending Home Sales Up

According to the Case-Shiller 20-City Housing Market Index, the national reading for average home prices dipped in March. The 20-City Index moved from February’s year-over-year home price growth of 4.20 percent to an average year-over-year home price growth rate of 4.10 percent in March. San Francisco, California reclaimed the top spot for home price growth of 10.30 percent year-over-year.

The Federal Housing Finance Agency reported results that mirrored the Case-Shiller report. The FHFA House Price Index tracks purchase-only transactions for homes connected with mortgages owned or backed by Fannie Mae and Freddie Mac. The March reading for home price growth slipped to 5.20 percent year-over-year as compared to February’s reading year-over-year growth rate of 5.50 percent. Lingering winter weather conditions were seen as a contributing factor to lagging home prices.

Meanwhile, the Commerce Department provided some good news for pending home sales. April’s pending sales reading increased to 3.40 percent from the March reading of 1.20 percent. Pending home sales are considered an indicator of future closings and suggest that the peak home selling and buying season is gaining momentum.

Sales of new homes in April brought spring home sales to their highest level in seven years. New home sales rose to an annual rate of 517,000 homes sold in April as compared to expected sales of 490,000 new homes sold and March’s reading of 484,000 new homes sold. The Midwest led the charge where new home sales surged by 36.80 percent. The latest readings for pending and new home sales suggest that 2015 can expect a healthy sales activity during the spring and summer.

Mortgage Rates, Weekly Jobless Claims Rise

Average mortgage rates rose last week according to Freddie Mac. The rate for a 30-year fixed rate mortgage rose by three basis points to 3.87 percent; discount points dropped from 0.70 percent to 0.60 percent. The average rate for a 15-year fixed rate mortgage rose by six basis points to 3.11 percent with discount points lower at 0.50 percent than the previous week’s average of 0.60 percent. The average rate for a 5/1 adjustable rate mortgage rose by two basis points to 2.90 percent. Discount points were unchanged at 0.50 percent.

Weekly jobless claims rose to 282,000 new claims filed as compared to expectations of 270,000 new claims and the prior week’s reading of 275,000 new claims filed. In spite of the higher reading for new jobless claims, analysts said that layoffs are few and far between. New jobless claims hit their highest level in five weeks, but remain close to a 15-year low. The four-week rolling average of jobless claims increased by 5000 new claims to a reading of 271,500 new jobless claims filed. The four-week average is considered a more reliable source for tracking unemployment trends as it evens out highs and lows that occur in weekly readings.

What’s Ahead

This week’s economic reports include Construction spending and several labor-related news topics including Non-Farm Payrolls, the National Unemployment Rate and Average Hourly Earnings. Analysts expect improving labor conditions to further bolster housing markets.

Concrete Countertops: Learn Why Concrete May Be the Best Thing to Hit Your Kitchen

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Concrete Countertops: Learn Why Concrete May Be the Best Thing to Hit Your KitchenUpdating your kitchen may be a project that you have been looking forward to for a long time. Now that the time has come to get started working on your project, you may be exploring the different materials that are available to use in your kitchen. The counter tops are often a prime focal point for a kitchen remodeling project. While there are several materials available to consider, concrete may be the best option for a number of reasons.

Endless Design Options

Concrete is a popular material that is used on patios, decorative floors and more because it can be stained, scored and shaped with almost endless possibilities. Just as the design options are limitless for other areas of the home, the same holds true when using concrete for your counter tops. You can customize the size, shape, finish, edge style and color without limits to achieve the desired look for your space.

Affordable Material

Concrete is not quite as affordable as laminate counter tops, but it is far more affordable than most other options. It also has a higher end look than laminate, and it can be poured, scored, and stained to mimic other higher end materials. This is a great way to get a luxurious look for your counter tops without paying a high price for them.

Highly Durable

Like many other materials that you may be thinking about for your counter tops, concrete will need to be sealed for long-lasting beauty and style. Once sealed, this is a material that is resistant to damage from heat exposure, staining, water exposure and more. Essentially, it is one of the most durable materials that you can use in your kitchen.

The kitchen is by all accounts a functional room, and counters will be exposed to heat, water, sharp edges and more over the course of time. Concrete is a material that holds up well in this type of environment.

It is rarely easy to select the perfect materials to use in your home remodeling project. After all, you may be concerned about style, durability and cost, and each material may have pros and cons. After discovering the benefits of concrete counter tops, however, you may have found the material you are searching for. You can request a quote for your concrete counters and review the incredible design possibilities.

Received an Offer for Your Home? How to Respond with a Counter-offer Asking for a Higher Price

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Received an Offer for Your Home? How to Respond with a Counter-offer Asking for a Higher PriceGetting an offer on your house is the first step in getting it sold, but buyers often feel that they have to come in lower than your asking price. After all, everyone wants the deal to work out in their favor. If the offer you received isn’t quite what you hoped, you can always make a counter-offer. Getting the details right can help make your deal go more smoothly.

Deciding On A Price

When your real estate agent helped you set the price of your home, you already had an idea of what it should fetch in the marketplace. If the offer wasn’t far off from your asking price, it’s acceptable to counter with your original asking price. Many buyers could be willing to pay full price. If you feel that technique is a bit brazen for your style, you could instead drop the original price by a few thousand dollars.

Another technique is to try to “meet in the middle”. For example, if there’s a $10,000 difference between the asking price and the offer price, you might offer to drop the price $5,000. Of course, the bigger the difference, the less enthusiastic you’ll be about dropping your price.

Factors To Consider

Keep in mind that the actual selling price of the house isn’t the only thing that will be negotiated. If you’re giving in a little bit, then you should expect to get a bit in return, but the same is true for the buyer. For example, a first-time homebuyer might not have a lot of money for a down payment. If you counter with an offer that’s too high, they might respond with another offer accepting the price, but asking for seller’s concessions at closing time.

Additionally, as you start to come down in price, you might consider taking out items that you might have included in the original offer, such as high-end appliances.

Don’t Forget The Fine Details

Discuss the details of what you want with your real estate agent. They’ll be able to let you know if you’re making the right move, considering the current market in your area. They may also have information about the buyers, such as an educated guess about how high they’re willing to go. Your agent will also have all the paperwork you need readily available. In most cases, all you have to do is fill in the blanks in a few spaces.

You want the highest price for your home, but getting the best deal is often a delicate dance. Know your limits and work together with the buyers to reach an agreement that is mutually beneficial.