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Luxury Selling: How to Qualify Potential Buyers to Ensure They Can Afford Your Home

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Luxury Selling: How to Qualify Potential Buyers to Ensure They Can Afford Your HomeLuxury estates can be a challenge to sell. The more expensive a home is, the less potential buyers there are. The biggest hassle is going through the process with people who can’t actually afford the home, only to have it fall apart at the last minute.

Here are some ways to make sure the property is only being viewed by qualified buyers.

Only Accept Offers From Buyers Who Are Pre-Qualified From A Lender

One of the only ways to guarantee a buyer will be able to afford a luxury home is to let the bank do the work on your behalf. By only accepting offers from people who have been pre-qualified by a lender, it allows the seller the peace of mind of knowing that every offer is a legitimate one.

Luxury Agents Will Have Vetted Their Clients

Working with a real estate agent with a specialty in luxury properties is one way to make sure the vetting process is handled effectively and legally. These agents do not have time to waste with people who can’t afford a home in this price range and they will have a roster of clients who are not only looking for a new luxury house, but can afford one. Talk to the neighbors and see who their buying agent was. This will give an idea of which professionals are working with clients who can afford the neighborhood.

Use Broker Open Houses Over The Traditional Open House

Hosting an open house in a luxury home is a dangerous prospect. There is no way of knowing how many visitors can actually afford the home and how many just want to look around to see how the other half lives. On top of that, it’s a serious safety risk as luxury open houses bring out potential thieves to case the place and see what the security is like.

For luxury sellers a broker open house is the best course of action. These open houses are closed to the public and only available to brokers who have clients that are looking for a luxury home.

There are more luxury homes on the market than buyers and standing out is important if you want to sell quickly. Trying to sell a home like this on your own is a disaster waiting to happen. Make sure to talk to real estate agents in the area who deal with luxury properties until you find one you are comfortable with. Contact your local real estate professional today for more information.

Dealing With Stress Related To A Home Sale

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Dealing With Stress Related To A Home SalePutting a house on the market can be a major life decision. Even though there might be a bit of a change during this time, there are ways to deal with the stress. Even though home showings, negotiations, and constant phone calls from real estate agents can be a lot to handle, there are a few tips for dealing with the stress. What do homeowners need to know if they are selling a home? 

Choose The Right Real Estate Agent

First, homeowners must make sure they choose the right real estate agent. Think about the goals during the home sale. Is the goal to sell the house as quickly as possible? Is the goal to sell the house for as much money as possible? Maximizing the value of a home may take some time, so homeowners need to find a real estate agent who can work with them to meet their goals. Always make sure the real estate agent has time to commit to the listing before signing a contract.

Always Do Homework

Even after partnering with a real estate agent, there is still a lot of homework that homeowners need to do during this process. Homeowners need to take a look at comparable properties in the local area to see how much their house might be worth. Then, homeowners also need to take a look at their house and see if there are any red flags that need to be addressed. There might be some repairs to handle before the home gets put on the market. Finally, homeowners also need to consider every offer thoroughly. For example, homeowners should make sure a buyer that requires financing has a pre-approval letter. 

Be Prepared To Adjust

Finally, homeowners should be prepared to adjust during the process. There is a middle ground between being too flexible and staying firm. For example, if a buyer is asking for a lot of repairs, homeowners might want to make some of the repairs but not all of them. Working with a real estate agent can help homeowners make sure they are making a wise decision. There are some offers that should be dismissed right away, but some potential homebuyers might be worth negotiating with. 

 

Important Relationships During The Home Buying Process

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Important Relationships During The Home Buying ProcessPurchasing a home is an exciting time, but there is also a lot to manage. There are a lot of text messages, phone calls, and emails coming in. It is important for potential homeowners to keep them straight. Who are some of the most important people during the purchase process?

The Real Estate Team

First, there are going to be a lot of important people on the real estate side of this transaction. Every home buyer should work with a real estate agent who can help them assess the market, arrange showings, and find the right home. There might also be interactions with other agents along the way who represent sellers. Keep in mind that there may be assistants, secretaries, and other agents who are part of a real estate team.

The Mortgage Team

The vast majority of potential home buyers require financing. Therefore, there will be multiple people who work on the mortgage side of this transaction as well. There will probably be a loan agent, an underwriter, and multiple assistants who navigate this side of the process. The mortgage team might also be responsible for arranging a home inspection and asking for a home appraisal. Potential home buyers might have to work with these individuals as well. 

The Closing Team

If an offer is accepted, there will be a closing team as well. A real estate attorney will probably be required to process the documents. Therefore, a potential home buyer should be expected to work with multiple people from the law firm as well. The real estate attorney is responsible for collecting funds from all responsible parties and disbursing the money appropriately. There will probably be multiple assistants in the real estate attorney’s office who will be asking for information. 

Keep These Relationships Straight

There is a lot that happens during a real estate transaction, and it is important for a potential home buyer to try to keep these relationships straight. Remember that the real estate agent should always be the first point of contact with any questions or concerns. A real estate agent probably has connections throughout the area that can help home buyers make this process easier. Nobody has to go through this process alone. 

 

Taking A Look At The Current Real Estate Market

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Taking A Look At The Current Real Estate MarketThe law of supply and demand governs every area of the economy. The law is relatively straightforward. If there is more demand than there is supply, prices should be expected to rise. If there is more supply than there is demand, prices should be expected to fall. The same is true with houses, which have been rising quickly in price during the past year. Why is this the case, and what does this mean for the future?

Housing Prices Are Going Up

It should come as no surprise that houses are going up quickly. The biggest reason why the prices of homes are going up across the country is that there is more demand than there is supply. Not as many new homes are being built, more people are trying to take advantage of favorable home loans, and some homeowners are hesitant to sell their houses because they are worried they will not be able to find a new one. All of this is contributing to a low home supply, driving up prices. 

Will Prices Stop Going Up Soon?

Nobody has a crystal ball, and it is difficult to predict the future. During the winter, many people are hesitant to move because they do not want to be stuck dealing with a major life change during the holidays. Furthermore, unless there are changes in the supply chain, it will probably be difficult for construction companies to build more houses. Even though housing prices may continue to go up, they will probably not go up as quickly.

What Should Homeowners Do?

There are some people who are hesitant to enter the buying market because they are waiting for prices to come down. Unfortunately, it will probably take a long time for housing prices to drop. Until the market normalizes, housing prices are probably not going to fall. Even when they fall, they probably will not drop by much. Therefore, it is more important for homeowners to work with a  real estate agent who can help them find the right house without overpaying. Even though this can be a difficult market to navigate, there are opportunities for potential homeowners to find the right house at the right price. It simply takes a bit of persistence. 

What’s Ahead For Mortgage Rates This Week – October 18, 2021

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What's Ahead For Mortgage Rates This Week - October 18, 2021

Last week’s economic reporting included readings on inflation, core inflation, and minutes of the Fed’s Federal Open Market Committee meeting held on September 22 and 23. Weekly readings on mortgage rates and jobless claims were also published.

September’s Consumer Price Index rose by 0.10 percent to 0.40 percent. The Core Consumer Price Index for September, which excludes volatile food and fuel sectors, rose by 0.10 percent to 0.20 percent and fell short of the expected reading of 0.30 percent growth.

Feds’ FOMC Meeting Minutes: Policymakers Consider Tapering Securities Purchases

Minutes of the Federal Open Market Committee meeting held September 21 and 22 indicated that policymakers discussed when to taper the Fed’s purchase of U.S. Treasuries and Mortgage-Backed Securities. Opinions were mixed as some policymakers recommended faster tapering of asset purchases and others were concerned about the potentially negative impact on financial markets if the Fed reduced its asset purchases too quickly. No specific dates for tapering asset purchases were set during the current FOMC meeting, but analysts expected the Committee to announce its plan for tapering asset purchases at its next meeting.

FOMC members also discussed inflation and were divided on their forecasts for inflation. While some members expected high inflationary growth in 2022, other FOMC members said that Covid-related bottlenecks in supply chains caused higher inflation in the near term.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by six basis points to 3.05 percent. The average rate for 15-year fixed-rate mortgages rose by seven basis points to 2.30 percent; rates for 5/1 adjustable-rate mortgage rose averaged 2.55 percent and were three basis points higher Discount points averaged 0.70 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 293,000 new claims filed as compared to the previous week’s reading of 329,000 first-time claims filed. Continuing jobless claims also fell with 2.59 million ongoing claims filed; 2.73 million ongoing claims were filed in the previous week.

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders on housing market conditions. Reporting on sales of previously-owned homes, housing starts, and building permits issued are expected; weekly readings on mortgage rates and jobless claims will also be released.

Selling Your Home? Don’t Skip These 3 Essential Steps or Your Sale Will Suffer

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Selling Your Home? Don't Skip These 3 Essential Steps or Your Sale Will SufferIf you want to sell your home quickly — and for the most profit — you can’t just list it and cross your fingers. Successful sales are well-planned sales, and there are several ways in which you can make sure your own home sale turns out as you’d like it to.

1. Know Your Target Market

What kind of people are buying homes in your area? Is your neighborhood popular among new families, retirees, young singles? Do a little research to see what type of buyers are typically attracted to the area, and figure out how your home caters to their lifestyle. Marketing is one of the most important aspects when it comes to a successful home sale, and knowing who to target is the first step.

Once you have learned a bit about your potential buyers and what they’re looking for, use that information to guide the rest of your sale preparations. Consider what you’ve learned about their wants and needs and carry that into any renovations you do, your listing, and your open houses. Make your home one that your buyers really want to live, and you just might find yourself in the midst of a bidding war!

2. Call In The Pros

When you sell your home without enlisting in the help of a professional, you open the door for significant mistakes to be made. Real estate professionals have the expert knowledge and experience that is needed to steer your home sale towards the best possible outcome. They can offer advice on listing price, marketing materials, open houses, offers received, and can take care of paperwork.

Attempting to do everything yourself may sound feasible, but you could sell yourself short by accidentally pricing your home too low, or you may be on the market forever if you price it too high. Mistakes in contractual paperwork could land you in hot water, and overall you’re more likely to experience stress during your home sale if you try to do it all yourself. Find a real estate agent that you’re comfortable with, and you’ll be more likely to get what your home is worth without the extra stress.

3. Fix It Up

Making sure that key renovations are up-to-date before selling your home is another crucial factor if you want to sell it quickly and profitably. Important things to consider include your kitchen, bathrooms, and roof, as buyers tend to scrutinize those areas the most during a walk-through. Make sure that everything is in good condition and looks presentable before listing — you don’t want potential buyers to see any red flags when looking at your property.

Ready to sell your home? Contact your local, experienced real estate professional today to make the most of your sale.