For Buyers
Cincinnati Real Estate Offer and Counter Offer
January 23rd, 2012 categories: For Buyers, For Sellers
How would you like to walk up to your favorite piece of real estate, point at it, then somebody would it scoop up, wrap in a bag, weigh it and tell you what you owed?
Buying real estate would be as easy as buying candy!
Many of today’s real estate buyers and sellers throughout greater Cincinnati are expressing frustration about the entire process and, as an agent, I’d have to agree. Pages and pages of paperwork, confusion how the process works (or doesn’t work), short sales, foreclosures, lender requirements and the list goes on and on. Most agents I know sit down and discuss the process with both their buyers and sellers prior to ever listing or purchasing a property..but somewhere in the excitement lots of people show symptoms of what I call “selective amnesia”. Also known as – we only remember what we want to remember. Sound familiar? I’m not making fun of people with selective amnesia- at times- we all suffer from it. We just need to recognize the stumbling blocks in the real estate buying/selling process and prepare in advance.
One of the most misunderstood steps in the real estate process seems to be making offers and handling counter offers.
For some reasons buyers, sellers and some agents react very personally to offers. Of course, if you’re the seller and the offer is 30% lower than list price, the offer may seem like a personal insult.However I can honestly say that in all the years I’ve never heard a buyer or seller actually say their goal was to upset the other side by making a “low ball offer”. The best way to the “sting out of a low offer” is to take the offer as a “knock on the door” which requires a some type of response or “counter offer” from you. Responses on price can range from full price counter- which sends a signal that if the other party is serious they need to make a better offer. Or the counter offer could be as simple as a slight reduction in price. There are a number of ways of responding and the bottom line is you need to respond and keep negotiating with the goal of coming to an agreement.
Many times buyers and sellers can agree on price but hit a road block when it comes to occupancy, personal property and other miscellaneous things. As for personal items, I’m not an attorney, but I strongly discourage buyers or sellers from adding pool tables, lawn mowers, flat screen tv’s and surround sound systems (and whatever else you can think of) to the contract. This is a real estate deal and appraisers don’t like handling personal property and many deals go south because the buyer or seller gets so attached to $400 item and forgets the bigger goal of buying the $260,000 item. Problems with occupancy, closing dates, inspections are usually resolved with simple communications. Sellers who cannot vacate at closing because of: arrival of new baby, school schedules, next house isn’t built yet- should include a viable alternative in the counter offer. Staying in the house after closing rent free for 90 days is not a viable counter offer! However setting a time frame and paying to stay usually is a win win for both sides- so think about presenting alternatives that might work for both parties.
And one final thought about offers and counter offers- and I need to disclose I’m from the old school- any changes to contract is a counter offer. Sometimes I hear that a contract has been accepted but when the actual contract arrives, the dates, items of personal property or a request for a home warranty have been changed. That’s not an accepted contract- that’s a counter offer and the other party needs to initial/sign and date it before it’s a done deal.
Many years ago (in another life) I had the opportunity to take several courses on negotiation and the most important thing I learned was that the best negotiations happen when neither party walks away thinking they got everything they wanted- in short -no slam dunks.
Offers and counter offers in real estate are really all about give and take.
Now I’m wondering, if I knew then what I know now, if years ago I could have countered and made a better deal with the guy behind the candy counter? What do you think?
| Discussion: Comments Off
What’s Happening with 17% of the Greater Cincinnati Housing Market?
January 6th, 2012 categories: For Buyers, Foreclosures & Short Sales
10880–the current number of active listing of single family homes and condos in the Cincy MLS.
17% (1881) of the the listings are categorized as having somebody other than the consumer as the owner- our way of adapting to the changing real estate landscape. The 17% include:
And like all designations- sometimes agents make a mistake and mark the wrong category- for example several of the “corporate owned” are actually owned by lenders.
So depending on what part of town you’re looking at properties, buyers have a fairly good chance of viewing a home or condo that either is owned by the lender or requires lender approval of the contract. The ownership is not a deal breaker- but may require patience to wait for counter offers and/or contract approvals. Hopefully your agent has discussed the ins and outs of today’s real estate market before you started the home search process. Unfortunately, even though the property was listed as consumer owned you discover, after you make a purchase offer, that lender approval of the contract is required. As agents we rely on the listing details in the multiple listing service to be accurate and up-to-date- but sometimes information is not updated in a timely manner. If you find that a lot of the properties do not have correct ownership displayed, your agent can make a quick phone call to the listing agent prior to writing a purchase contract.
These properties are often “unloved” and shunned because of lender involvement…but if real estate buyers really want a “deal”-how can you ignore 17% of the inventory?
Related Article: Before You Buy a Short Sale
| Discussion: Comments Off
Buying Local in Greater Cincinnati
December 15th, 2011 categories: For Buyers
Many shoppers in greater Cincinnati are trying to do the “right thing” for the economy and are searching for local vendors and stuff “Made in America”!
May I suggest something from our store-such as locally built and locally sold homes. If you don’t find the right size or color- just let me know and I will be glad to check our “stock room”. Check out some sample products below and happy shopping…
Still don’t see the right one- just let me know and I will try to find a perfect match.
| Discussion: Comments Off
Ohio’s First Time Homebuyer Program (OHFA)
December 14th, 2011 categories: For Buyers, Informational, Pricing
Lovingly called OHFA, the Ohio Financing Agency’s First Time Home Buyer Program has helped to fuel some of the greater Cincinnati housing recovery. Many moons ago I provided information about the program Recently the agency took the opportunity to pat itself on the back and published the following statistics about OHFA.
- Recent statistics show that 55,000 homes were sold in Ohio from January to July of this year.
- Of those 55,000 homes, nearly 40 percent of the homes sold during that time were purchased by first-time home buyers.
- Loans closed by the Ohio Housing Finance Agency accounted for nearly 11 percent of the homes sold in Ohio to first-time home buyers.
- OHFA is always working to make the loan process more efficient and accessible for low- to moderate-income Ohioans.
- Home buyers can obtain a lock on their mortgage interest rate for up to 180 days while construction of a new home is being completed.
Plus many buyers don’t know that:
- The Agency also offers programs for buyers needing financial assistance for down payment or closing costs and for buyers who have recently received a college degree.
- Buyers who are veterans or in the medical, public safety, law enforcement or teaching fields may qualify for OHFA’s Ohio Heroes Program offers a .25 percent reduction on our current interest rate for those who are employed full time* in one of these fields and hold a state license or certification in that profession as long as the borrower lives in the home.
All in all, OHFA has provided a much needed boost to the greater Cincinnati real estate market and if you need the names of lenders or help finding a property to purchase- help is only a phone call away!
| Discussion: Comments Off
The Multiple Listing Service of Greater Cincinnati Says…..
December 8th, 2011 categories: For Buyers, For Sellers
The “Cincy MLS” is the local oracle which provides us with lots of useful information. One of my favorite spots is the Market Watch which appears on the home page every time we sign onto the system.
The graph is easy to read and with a few quick clicks, agents can obtain detailed up-to-date Cincinnati real estate market information.
Today the majority of the new listings are residential properties (no surprise) priced from $22,000 all the way to $699,000. There’s lots of land for sale too-27 new listings. In addition to just providing buyers and sellers with detailed information about a specific home or condo, greater Cincinnati has 668 active and 237 pending listings that are require “lender approval” also known as Short Sales.
So while the National Association publishes detailed and informative reports about current home sales and pending home sales which have been regurgitated by the press, media and talking heads- home sales are local and the best way to track real estate activity in greater Cincinnati is the Cincy MLS.
Don’t hesitate to call me when you need detailed information local Cincinnati real estate.
| Discussion: Comments Off
