From 2004-2007, non-contingent contracts were the norm, as it was a pure sellers market but with the change and flux in today’s current credit markets, buyers will utilize contingent contracts to protect their earnest money deposit, if by chance they can’t obtain a mortgage within the terms of the agreement.
Key things to remember regarding contingent contracts.
1) The clause usually states that the buyer has 30 days from the contract signing, to obtain a mortgage commitment. This term can be negotiated, if needed.
2) Utilize financial forms to get a proper picture of each potential buyer, so valuable time isn’t wasted with a non-qualified buyer.
3) If the buyer obtains a commitment letter within the 30 days, the contingency has been met and the buyer is liable for the contract.
4) The sellers’ attorney can verify and receive a copy of the commitment letter from the buyers’ attorney to further assure a smooth process.
Tuesday, September 23, 2008
Monday, September 22, 2008
Selecting a Attorney
Important: When you decide to sell your property - make sure you research and select a Real Estate attorney before you place your property on the market to be sold.
The following points should be researched when selecting an attorney.
1) Speed – How fast can they turn-around a contract?
2) Accessibility – Will they be available to answer all your questions, when needed?
3) Payment – Do they charge a flat-fee or by the hour?
4) Experience – Are they experienced in your area and have they worked with your property type before? If so, how many sales have they done in the past?
Since attorney’s can make or break a deal, selecting one that’s familiar with the selling process or requirements regarding your situation is absolutely a critical step that sellers shouldn’t take lightly.
The best ways to find a Real Estate attorney is to talk to friends or trusted acquaintances and ask for a few referrals. Ask the referrer, what was great working with this person? This should tell you some valuable information, especially if they can’t come-up with any answers. This’ll give you a head start in your research; then contact as many attorneys as needed to see how each one answers/handles your questions. Select the one that answers all your questions in a “language” that you understand and ultimately, the one you feel most comfortable with.
The following points should be researched when selecting an attorney.
1) Speed – How fast can they turn-around a contract?
2) Accessibility – Will they be available to answer all your questions, when needed?
3) Payment – Do they charge a flat-fee or by the hour?
4) Experience – Are they experienced in your area and have they worked with your property type before? If so, how many sales have they done in the past?
Since attorney’s can make or break a deal, selecting one that’s familiar with the selling process or requirements regarding your situation is absolutely a critical step that sellers shouldn’t take lightly.
The best ways to find a Real Estate attorney is to talk to friends or trusted acquaintances and ask for a few referrals. Ask the referrer, what was great working with this person? This should tell you some valuable information, especially if they can’t come-up with any answers. This’ll give you a head start in your research; then contact as many attorneys as needed to see how each one answers/handles your questions. Select the one that answers all your questions in a “language” that you understand and ultimately, the one you feel most comfortable with.
Wednesday, September 10, 2008
What pops in today's marketplace?
Another reader asked me the following question.
What pops in today’s marketplace?
1) A turn-key property that’s in move-in condition.
2) A well-priced property that doesn’t include inter-year appreciation. (Because there’s no such thing)
3) Quality photos and a detailed floor plan.
4) A relaxed showing – no hard sells or attempts to induce an offer.
5) Presenting reliable information about the property to potential buyers – be very open and transparent.
6) A property that’s visually pleasing – interior and exterior.
What pops in today’s marketplace?
1) A turn-key property that’s in move-in condition.
2) A well-priced property that doesn’t include inter-year appreciation. (Because there’s no such thing)
3) Quality photos and a detailed floor plan.
4) A relaxed showing – no hard sells or attempts to induce an offer.
5) Presenting reliable information about the property to potential buyers – be very open and transparent.
6) A property that’s visually pleasing – interior and exterior.
Tuesday, September 9, 2008
Qualifying an Offer
Over the past couple of weeks, I’ve received several e-mails about what to look for/at when receiving an offer from a potential buyer. I’ve listed below the top 5 things to check for when an offer is made:
1) Employment: Salary Level, Length of Employment (Stability) and the past years salary level.
For Co-op’s: The buyer should have less than 30% of debt to income ratio.
2) Liquid Cash: How much does the buyer have, that’s liquid?
Important: Don’t forget to deduct the down payment and closing costs from this amount.
3) Debt Level: What type of debt does the buyer have and how much? If this amount is substantial, there will be an issue in attaining a mortgage.
4) Is the buyer Pre-Approved for a mortgage? Make sure that the buyer is pre-approved NOT pre-qualified for a mortgage. The differences between the two are quite significant.
5) Does the buyer have an attorney? Speed is of the essence, so the buyer should be prepared.
Make sure the buyer fills out a REBNY Offer Form and REBNY Financial Statement. These are essential in obtaining a proper picture of an offer.
1) Employment: Salary Level, Length of Employment (Stability) and the past years salary level.
For Co-op’s: The buyer should have less than 30% of debt to income ratio.
2) Liquid Cash: How much does the buyer have, that’s liquid?
Important: Don’t forget to deduct the down payment and closing costs from this amount.
3) Debt Level: What type of debt does the buyer have and how much? If this amount is substantial, there will be an issue in attaining a mortgage.
4) Is the buyer Pre-Approved for a mortgage? Make sure that the buyer is pre-approved NOT pre-qualified for a mortgage. The differences between the two are quite significant.
5) Does the buyer have an attorney? Speed is of the essence, so the buyer should be prepared.
Make sure the buyer fills out a REBNY Offer Form and REBNY Financial Statement. These are essential in obtaining a proper picture of an offer.
Wednesday, September 3, 2008
Performing an Open House
Before taking the necessary steps needed to perform a successful Open House, you should check/research for similar properties being advertised within your area and mimic their Open House show times. This will enable you to feed of their marketing and increase the traffic flow to your property.
Here are some basic tips to help you with a successful Open House.
1) Remove all valuables and clutter.
2) Clean and polish all areas of your home.
3) Create a pleasant aroma.
4) Play some pleasing music, such as classical or soft jazz.
5) Print out multiple show sheets of your property with full details.
6) Print out sign in sheets. Have pens/pencils on hand.
7) Adjust lighting and open shades.
8) Have your pet stay with a friend or neighbor. (If possible)
9) Have a friend or significant other assist you with your Open House. (Optional)
10) Put a sign/note in front of your home or building denoting open house details. (Optional)
As you know, there are so many other ideas and things you can do when performing an Open House but if you follow what I've listed above, you'll have a great head start on the road to success! Just image yourself as the potential buyer, and ask yourself “ What would I expect if I were in their shoes?”
Here are some basic tips to help you with a successful Open House.
1) Remove all valuables and clutter.
2) Clean and polish all areas of your home.
3) Create a pleasant aroma.
4) Play some pleasing music, such as classical or soft jazz.
5) Print out multiple show sheets of your property with full details.
6) Print out sign in sheets. Have pens/pencils on hand.
7) Adjust lighting and open shades.
8) Have your pet stay with a friend or neighbor. (If possible)
9) Have a friend or significant other assist you with your Open House. (Optional)
10) Put a sign/note in front of your home or building denoting open house details. (Optional)
As you know, there are so many other ideas and things you can do when performing an Open House but if you follow what I've listed above, you'll have a great head start on the road to success! Just image yourself as the potential buyer, and ask yourself “ What would I expect if I were in their shoes?”
Greatest find for a Homeowner
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OK – So you may have to pay to become a member, but I guarantee that the listed website below is one of the best things on the Internet for a Homeowner to utilize.
Angie's List
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The feedback is extremely reliable and doesn’t allow for self-promotion of their services.
OK – So you may have to pay to become a member, but I guarantee that the listed website below is one of the best things on the Internet for a Homeowner to utilize.
Angie's List
This website provides user reviews and ratings of services within your area. I personally can tell you that the reviews and ratings are accurate and I’ve received and seen professional results from every person that I came across. This website will alleviate all the stress and worrying about who to use, by providing referrals and ratings on each service profession.
The feedback is extremely reliable and doesn’t allow for self-promotion of their services.
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