What Do I Do If the Seller Rejects My Offer?

There is a good chance that a seller will reject your offer if it is a low ball one, say 15-20% below the asking price.

The best approach to negotiation when making an offer is to propose a sale price that the seller will at least consider, and will counter-offer if they are not willing to accept it. But some buyers insist on making really low offers in the hope of getting a great deal, especially in this market where the inventory is large and homes are sitting on the market for long periods (in some cases).

Just as you have the right to make any offer, so can the seller respond any way desired.

If your offer is simply rejected without a counter, you have a couple of choices:

• Come back with another, better offer if you are truly interested in acquiring the house
• Walk away from the deal and pursue something else

You must decide what the home is worth to you and if pursuing it makes sense. While rejection of a low-ball offer is to be expected, I think, a seller may also reject a reasonable offer for a variety of reasons, which is harder to understand as the buyer.

If you really want the property and feel you can get to the point where you and the seller can agree on a price, then negotiations should continue. Otherwise it’s time to say NEXT!

Are You Interested in a New Home in the La Costa (Carlsbad) Area?

If you are looking for a new construction home and are interested in the Carlsbad area, specifically La Costa, check out the possibilities (let me know if you need more information).

I will be writing more about new homes in Carlsbad periodically, but if you want more information, let me know. There are also new homes in other areas of North San Diego that I can tell you about if that would be useful.

Just a quick thought – as a new buyer you want representation in the transaction. If you go directly to a new home builder/agent you will not be able to have that representation. Work with your agent and let them introduce you to the new homes in your area. Once you walk into a new home without your agent you have lost the opportunity for them to help you. Could be a big mistake.

Is Now a Good time To Buy?

I get this question alot, from first time buyers as well as more experienced folks. It’s a good question.

And I’m not going to answer it!

I’ll give you some things to think about, but I am not going to tell you YES or NO, since I can’t. It depends on you, your personal situation, and your goals.

There is lots of inventory (bet you already knew that), so from that perspective it is a good time to be looking, since there are choices. Plus you likely won’t have to make a rush decision for fear that there won’t be anything to buy (on the other hand, do NOT assume that homes will stay on the market forever). And you may have an opportunity to negotiate, and perhaps even obtain some concessions along the way.

Interest rates are pretty good right now, and have been for some time. Yes, they have gone up a bit, but if you look back several years ago they were quite a bit higher.  But we don’t know where they are going to go or if they will stay at or near the current level. A bump up in rates can cost you thousands of dollars in your mortgage payments, and off-set any savings you might obtain through negotiation.

Homes in many areas have slowed in appreciation, or have even lost value as compared to a couple of years ago. This sort of thing is part of the typical real estate cycle and really no different than what has happened in the past. And so you have to consider what your goal of buying a home is. If it is to make money in the short term, then you probably are not going to be able to do that. But if the goal is to have a home to live in for a number of years, with side benefits of tax advantages, building equity, and improving credit, then the decision to buy now could be right for you.

No one has a crystal ball, although I am often asked about it.

You have to weigh all the pros and cons of your situation and goals to decide if now is a good time to buy. Given the market conditions, I think it is…for some people. Sure you can wait to see if things changes, and they might – ut maybe prices will go up, or rates will, or both. But whether you wait or not, there will always be that decision that must be made.

My best advice:

• be as informed as you possibly can be about the local market conditions
• fully understand your financial situation
• have a top-notch mortgage person to advise you (I can provide some suggestions there)
• work closely with a knowledgeable agent who knows that local market conditions and can share with you the pros and cons
• do your research

I can’t tell you what the right decision is – YOU have to decide. But I can give you the information you need to make those choices or suggest the things you must consider.

Is it the right time to buy? Yes….and no. It depends on you.

Look Before You Leap

I am a strong advocate of using the Internet to your advantage. I use it myself a great deal for conducting research on products, services and of course in my real estate business. I suspect many of you do as well.

In the “old days” buyers did not have much opportunity to research properties other than to simply drive around. When they wanted t o see things they HAD to use an agent, since agents had access to the MLS books and everything buyers might want to know about the homes for sale – agents were in control. Sure, you could go to open houses, but the only way to see what was on the market was to go looking with an agent.

Today is different. You have an opportunity to view an amazing quantity of information and see just about any listing (in multiple sites), inside and out, before you even set foot outside your door to start looking.

If you are NOT taking advantage of the ability to do substantial research before you start looking at homes, you are doing yourself a disservice. It’s critical that you be prepared, in this complex market, so you can make the right decisions. It takes times, but it is time well spent. Look before you leap and do your research. And don’t hesitate to ask for help and suggestions, especially if things don’t make sense, or your research raises other questions.

Good luck. If I can help in any way, just ask!

Do You Know What a Mold Inspection Is?

As you have probably read, either here or in the media, mold has become a huge issue in the real estate business. And it CAN be a significant problem.

You may run across it in a home inspection and wonder what to do. And curious if you should be concerned or not.

In my continuing series on mold, written by Guest Blogger Andy Konapacki, President of VM3 Environmental, Inc. we learn more about the mold inspection itself.

Read more here >>>>

Want to Impress Me? Here’s How.

I like working with buyers. Having bought a bunch of homes myself, I guess I get turned on by the possibilities when a buyer decides to search for a home. Assisting someone with the acquisition of their dream home, and seeing their pleasure when they become a new home owner (whether for the first time or not) is a real ego booster.

I write a lot about working with buyers. Much of my buyer business is first time buyers, so I know that niche pretty well. I especially like the educational and advisory role I can take on when working with new buyers – there is so much for them to learn about the purchasing process. I help lots of relocating buyers too, in part because I have some personal experience in moving around – 4 major moves (most recently from Boston to Carlsbad, CA).

So, buyers, you want to impress me? Here’s how:

• Get pre-approved up front unless you have made other financial arrangements – and let me know your financial situation (good and bad). Please be honest.
• Make a conscious decision to buy and commit to that decision. If plans need to change for some reason, that’s fine, just let me know.
• Have realistic expectations of what you can afford and what you can buy in your price range – I will certainly help with a reality check
• Decide on the things that are important to you in your new home (it doesn’t have to be carved in stone, but if you have no idea that does not impress me as an agent)
• Do your research , especially on-line – get some idea of where you want to be, and so on (I am impressed when buyers come armed with lots of information and knowledge, but of course I will help sort it our and clarify where needed)
• Ask to meet with me to discuss your needs and how I can help you – I don’t mind if you interview several agents either, in fact I welcome it.
• Allow me to share with you how I work and what I expect so we can decide if a mutual working relationship makes sense
• Ask good questions – about the process, terminology, what ifs, potential pitfalls and more.
• Don’t ask me to meet you at a house to show it without having met you first
• Be willing to commit to a working relationship with me if we all agree it makes sense. I will be loyal to you, and I expect the same.
• Be decisive, not wishy washy about what you like and don’t like. Be able to weed out the properties that are not right for your needs.
• Give me feedback on what homes you like and why, and those you don’t
• Be honest with me about how things are going, your frustrations, your needs, and our working together.
• Do what you are supposed to do in the process, in a timely manner – things like your due diligence, reviewing disclosures, applying for a loan, and in general meeting the deadlines.
• Keep me informed of any issues, problems, changes, and concerns

There you have it. These are good strategies for you as a buyer anyhow, so in that regard it does not take much to impress me.

If I can help in any way, please don’t hesitate to ask.

Should I Ask for Seller Concessions?

When buying a home in today’s market (at least in those areas where the market favors buyers, not sellers), it is not unusual for buyer’s to wonder if they should ask for seller concessions.

And sellers will often consider offering them as well.

Is this something to ask for?

• First, you should find out from your agent if the seller is offering anything up front. It may be common in your competitive market and if so these terms will be listed in the MLS listing (e.g., seller is offering a credit of $XXX for carpet, or paint).
• Second, are concessions fairly common in your marketplace. This does not mean you can’t ask if they aren’t, but it is easier if it is commonplace. And sellers might not be taken by surprise.
• Third, consider the advantages and disadvantages of asking for any concessions and what those concessions might be.
  • It is common for buyers to ask that some of the closing costs be paid for by the seller. And some sellers might be willing to pay a fee toward the loan to paydown the mortgage rate (e.g., the points). Does it financially make sense for you to have these concessions or not?
  • Further, you must consider whether asking for concessions will make your offer less desirable or even unacceptable to the seller. If you make a good offer, accepting concessions will be easier for the seller, depending on their financial circumsances.

Beware of These Signs

This is a warning to all first time buyers (and any experienced buyers who are reading this as well).

There are signs out there that are fiction. I’m talking about certain FOR SALE signs that you see.

So why beware? Well, these homes really aren’t for sale, because the seller is asking a ridiculous price, the home is in bad shape, and the seller is just not very motivated or is just testing the market to see if s/he can get the desired price.

READ MORE>>>>

Take a Tour of Solana Beach, CA

If you are house hunting, or perhaps just for fun, why not take a tour of Solana Beach in North County San Diego.

Solana Beach is nestled between Cardiff and Del Mar along the coast and offers a pretty nice lifestyle along the beach. It’s not inexpensive, but nothing is along the coast, unfortunately.

If I can answer any questions, please let me know (760-840-1360 or email me at JDowler@remax.net)

What Do You Say?

You probably are getting lots of questions from friends and family who know you are house hunting.

So what do you say when they ask you “how is your house hunting going?”

Are you able to tell them the truth? Do you really know how it’s going? And how do you feel about how it’s going?

Has it been a positive experience for you thus far?Are you learning alot? Have you made headway regarding what you want and would like to buy? Or is that still not clear to you?

Are you feeling that it is not going well but don’t want to admit it? And if it isn’t why do you feel that way? Are you frustrated? Worried that you will never find what you want to buy? Having trouble deciding, or afraid to make that big decision?

This is all very normal, and everyone goes through these thoughts and questions at different times when buying a home. And with different answers.

I think being asked the question “how is your house hunting going” is a great one, since it forces you to think about the process, where you are with it, and to make changes as needed so that you can move forward in the right direction.  And to get help from your agent (depending on the issues) to address problem areas (like not finding the type of home you like, needing to explore other communities, and so on).

Have a great holiday!!