Becoming a real Buyer...

Inventory is dramatically shrinking and it is commonplace in many markets to have multiple offers on a home. While the sellers would prefer to be able to choose the best offer for them, it can be incredibly frustrating for the buyers who might consider the following tips to get their offer accepted.

1. Remove the uncertainty that you may not be approved for a mortgage by having a pre-approval letter from your mortgage company.
2. Show your sincerity by increasing the normal amount of earnest money customary for the area and price of the home. The earnest money will be applied toward your down payment and closing costs. Consider placing even more money in escrow when the contingencies have been met.
3. Specify a closing date in the contract but acknowledge that you can be flexible to accommodate the sellers moving date. If it becomes an issue, it still must be mutually agreed upon.
4. Make the contingency periods shorter if possible to make the seller feel that they’ll know sooner that the offer is solid.
5. If the contingency really isn’t important to you, leave it out of the offer. The more contingencies included in a contract, the more the seller will feel might happen to keep it from actually closing.
6. Write a personal note to the seller explaining why you like and want their home. Consider including a picture of your family and pets.
7. Physically sign the offer with a felt tip pen of contrasting color. You’d be surprised how this adds a personal touch to the offer.

Offer a fair price for the property in your initial purchase agreement. It shows sincerity and good faith that you’re actually trying to purchase the home and not trying to take advantage of the seller. The old adage that you can always go up later may never happen if there are multiple offers on the property in the beginning.

Crowded skies in Alameda....kite surfing

Kite surfers were jamming the skies and waters off of Crown Beach last Sunday.  They were moving so fast I couldn't count them!  This was taken with my iPhone and is only just a portion of what was out there!

BOOMER CHICK MUSINGS  - my take on what is happening out there, it's mostly personal.

MARILYN'S SHORT SHOTS! (videos, on the right).  If you haven't looked at them...check them out!

COMMENTARY
I just don't get it.  If we, as a people, want our government to be 'transparent' or at least try to be 'transparent', then it seems to me, as individuals we need to lead the way in our own lives.  Now I don't mean spewing forth all things.  That's TMI (to much information).

I do mean, in real estate (because that's my focus here), it seems proper that sellers (not selling short or R(eal) E(state) O(wned), should want to put out on the table everything the buyers need to know, and that includes stuff that the sellers don't even know but have the opportunity to find out.  Like the stuff behind and in the walls (mold, leaks in pipes, dry rot, etc), roofs, and foundations, (who looks at those?).  

So that brings us to reports and inspections.  Even though most buyers will want to get their own inspections,  in my perfect world and most other agents' worlds, sellers need to know what they heck they are selling!  And buyers want to see what the sellers are selling!

There have been a few properties (normal equity sales), in the past weeks, that sellers are leaving $$ on the table by not obtaining viable and/or reliable inspections before going to market.  If my clients thinking this  way...I try to explain to them why it's important to get this out there...and what the costs of not doing so can mean to them, relative to the bottom line.

And one more thing....if a seller is not feeling the love that his/her agent has for them when it comes to price, I'd suggest taking them on a tour of houses on the market and recently closed, that are both worse and better (but about the same size and similar  location) to see what the competition is out there.  Then the sellers may realize that the agent wants to sell the property to the market niche that is focusing on these properties....and not have to beat them up later on for price reductions.

Just thinkin'.

ALAMEDA REAL ESTATE THIS WEEK...
Tuesday Tour 12 on tour...great bike ride after going via bike to the marketing meeting at Jim's on the Course.

Highest and Lowest priced new listings this week

Active and pending listings this week 68, 93

New  20
BOM back on market  1
Pending  15
Sold  12
Withdrawn temporarily  1

ALAMEDA REAL ESTATE AWARDS THIS WEEK...remember this is only my perspective!
Winner (tie)
Get me a facelift  Otis


Wrap it up!  Carry on!  Make it work.  Call if you need vendors...I've had two clients who wanted out-of- area (across the bay and behind the hill) rental info.  In both cases, I've struck out.  I told them both to check Craig's list for rental (rates and availability), and any local online newspapers that may have listings for rentals.  Otherwise...give me a try at something else!

best, marilyn

Renters Want to Buy

Fannie Mae, in a recently released study, states that consumer attitudes continue to be favorable about homeownership, particularly with the younger generations, ages 18 to 34. Slightly over half of them think that owning makes more sense than renting when comparing the financial and lifestyle benefits.

90% of aspiring owners expect to purchase a home someday and slightly over half think they’ll do it within five years. The primary challenges are having sufficient savings and the difficulty of getting a mortgage today. Younger renters see renting as a temporary stepping stone toward homeownership.

Homeowners are far more likely than renters to be “very positive” about their housing experience. Some of the benefits identified are:

• Having control over what you do with your living space
• Having a sense of privacy and security
• Having a good place for your family or to raise your children
• Having the best investment plan
• Living in a nicer home
• Building up wealth
• Saving for retirement
• Living in a place where you and your family feel safe
• Feeling engaged in your community

To satisfy a buyer’s doubts about qualifying for a mortgage, make an appointment with a trusted mortgage professional. If you’d like a recommendation at no cost or obligation, please contact me at marilynschu@gmail.com.  Check out this Rent vs. Own to see the real cost of owning a home.

For more information about the Fannie Mae survey in presentation form, Click Here.

 

Alameda has more inventory! But it's going pending pretty quickly...

Speaking of the America's Cup (which for a number of reasons has been and will be on sailors' minds from the Bay Area and around the world)  this is the mini version of the AC boats.  It's Sean (my son-in-law) and his crew  sailing/foiling the R Class super light weight boat they race in New Zealand.  Daugher Sutter races on a more traditional boat down there...but it's coming into winter and getting colder.  So we get to see them here in a few weeks for a second summer!

BOOMER CHICK MUSINGS - this is my take on what is happening today in other parts of my life.

Check out the VIDEOS to the right!  They're around the island!

COMMENTARY - I heard it several times this week.  Buyers are complaining about two different items...well, the obvious is the price of housing going up up up, but I'm not talking about that.

They are saying that the photos are not true to the size of rooms.  And they would love to have a floor plan of the property  they can download.

Even I've been surprised at some of the mls photos.  These wide angle lenses make one think they are walking into the Taj Mahal.  Recently I looked at a house online, and then I did a double take on the address.  That house either couldn't be there, or it was completely remodeled and I didn't know it!  These are tract homes.  And in Alameda they are not easily knocked down and rebuilt.  Since I go by the place  you'd think I would have noticed something say..different.

So when I rode my bike on the broker tour to see the place I was quite surprised to see it was the same old traditional floor plan.  Nothing new except the photos with staged furnishings.  Maybe I have a warped sense of space...but the photos vs reality made the house look ridiculous!

And the floor plans?  Yes, they should be there.  When I was showing some property to clients this week, they were expecting something else!  Yes, it was very nice...but the photos just don't show how rooms relate to other rooms.  Thus...floor plans!  For a minimal amount of $, I find it imperative to put floor plans for prospects on the property website. I either pay for it, or I have many of the tract homes in my database.  But a floor plan is, to me, a necessity.

Just saying....

What do you, the consumer, want to see for marketing a property?  Floor plans?  Virtual tours?  Narratives?

ALAMEDA REAL ESTATE THIS WEEK...
Broker Tour Tuesday!  16 on the tour this week.  I drove the car to BFI, and the came home and saw the rest!

Highest and Lowest priced NEW listings this week.  66, 91

New  20
Price change  3
BOM Back on market  
Pending  22
Sold  19
Withdrawn/cancelled
Expired  1

ALAMEDA REAL ESTATE AWARDS THIS WEEK...
Winner
Get me a facelift
Get me to rehab...tied!

OK!  That's a wrap!  Make it work!  Carry on!  Stay cool over the weekend!  Call if you have market questions...or if your son needs a job (got a summer internship for a college graduate by making a phone call), or if you need a proper disposal of a US flag (called a good friend about what to do).

Be well and fine!

best, marilyn

What's It Worth?

How much is a one carat diamond worth? Anyone who has shopped for one knows that the price could have a significantly wide range of value. It's been said that purchasers  should consider the color, cut, clarity and carat size to compare stones but when it gets down to decision time, buyers still want to know “how much is it worth?”

Real estate valuation can be equally as confusing to the public. There are three commonly used tools that today’s home buyers rely on to make decisions but they vary significantly in the methods used to make the determination as well as the possible final consideration.

Appraisals are an opinion or estimate of value based on specific guidelines made by individuals who are licensed and possibly certified. Buyers and sellers may be reluctant to engage an appraiser because there is a fee of several hundred dollars that must be paid in advance even if no sale is ever consummated.

A Broker’s Price Opinion (BPO) as defined by the National Association of REALTORS® is an “estimate of the probable selling price of a property.” The Dodd-Frank Act describes a BPO as “an estimate…that details the probably selling price of a particular piece of real estate property and provides a varying level of detail about the property’s condition, market, and neighborhood, and information on comparable sales, but does not include an automated valuation model.”

A Comparative Market Analysis (CMA) is a commonly used tool of salespeople to provide information to buyers and sellers to facilitate a sale. In most cases, it would be difficult to distinguish a CMA from a BPO because the steps considered are essentially the same and practitioners commonly use the terms interchangeably.

Another method called Automated Value Model (AVM) use software to search available data on the Internet to arrive at an approximation of value. Zestimates found on the Zillow site use this method. AVM’s may not consider all the market activity such as MLS sales and active listings. They can’t make adjustments based on human experience and market knowledge.

For what it’s worth, a buyer or seller might want to acquire as much current and factual information as possible from a trusted real estate professional familiar with the market before making a decision on the largest single asset most people acquire.