VIP Realty Platinum's blog

How to Use First Right of Refusal on Contingent Offers on Plano Real Estate

If you are going to make an offer to buy Plano Real Estate when your current home is not yet sold is a challenge for many of today’s home buyers. Regardless of whether it's a seller’s market or a buyer’s market most sellers aren't eager to accept an offer that has a home sale contingency of the buyer's current home, either.

Types of Home Sale Contingent Offers

Although there are many types of a contingent offers, most adhere to one of two types of formats:

1. Seller take take their property off the market and wait for the buyer to sell their existing property.
2. Seller to keep the property on the market but can accept a non-contingent offer, providing the first buyers with a 72 hour kick out clause to perform in the event seller receives a better non-contingent offer.

Most sellers of DFW homes and Denton County Real Estate will choose option one. The reason a seller may accept option two is if there are not likely to be any other buyers making an offer on the property.  Many sellers will not wait very long and will stipulate a date for the transaction to close.  If the buyer's property has not sold by this date, the transaction can be canceled.

What is a 72 Hour Kick Out Clause?

A 72 hour kick out clause will state that if another non-contingent offer comes in the first buyer will be notified of such and they will have 72 hours to make their offer non-contingent or the second non-contingent will move into first place and the first buyer will be “kicked out”. If the buyer does not remove the home sale contingency, the seller has the right to cancel the contract and refund the earnest money to the buyer.

Removing Sale Contingency Under First Right of Refusal Options

• Take a home equity loan. Most lenders will not approve a home equity loan once your home is on the market, and a seller is not likely to accept a contingent offer unless your home is on the market and at a salable price.
• Get a bridge loan. It is best to get approved for a bridge loan before receiving a 72 hour notice to perform. This way you won't have to scramble trying to line up financing over an impossible 72 hour period. Bridge loans are an expensive option because you may pay high loan fees.
• Get a higher loan-to-value loan. If you were planning on putting down 20% to buy your new home, put down less, maybe 10% and get a higher loan amount. Then, when your home does sell you can use the proceeds to pay down the mortgage.  Note that many higher loan-to-value ratios carry higher interest rates and fees.
• Borrow the down payment from a friend or relative. Some home buyers can access the bank of Mom and Pop.  Keep in mind it is not generally wise to do business with family and friends.
• Remove your sale contingency.  Really?  If you are confident your home will eventually sell, and you can stand the pressure and stress some buyers choose this option.

Risk for Removing Sale Contingency

While considering removing your home sale contingency, review your sales contract with a lawyer and obtain legal advice to determine your rights under the contract.  In some States a sales contract, for example, clearly state your earnest money at risk if you default on the contract.  If you can live with losing the amount your earnest money by taking a gamble that your property will sell, it may be worth it to you.

Proof of Funds to Close               

When a home sale contingency is removed the astute seller will ask for evidence of funds to close. This helps prevent some buyers from arbitrarily removing their contingency without the ability to close.

 

Is It Safe to Use a Lockbox When Selling Plano Real Estate?

http://www.realtown.com/viprealtyplatinum/blog/is-it-safe-to-use-a-lockbox-when-selling-dfw-real-estate/ Most agents in the DFW real estate market area, including the Ft Worth real estate and Highland Park real estate markets use electronic, blue Supra box (called an iBox), manufactured by General Electric.

When listing DFW real estate for sale, home sellers eagerly hand over their house keys to their DFW Realtor. Then your Realtor puts your door keys in a lockbox so that your home can be shown to potential buyers. Lockboxes that hold house keys and attach to a door handle, gas meter or gate, much like a bicycle lock.

A Bit About Lockboxes

Most agents in the DFW real estate market area, including the Ft Worth real estate and Highland Park real estate markets use electronic, blue Supra box (called an iBox), manufactured by General Electric. These lockboxes operate on an infraRed system. The iBox release mechanism is triggered by pointing an electronic display key or, in some cases, a synchronized cell phone, at the sensor which are only available to licensed real estate agents. These sensors record the user's information and releases the bottom of the lockbox, which contains the keys. Houses with a lockbox get more showings because they are easy to access.

How Much Do These Supra Lockboxes Cost?

Local Realtor associations charge varying fees for lockboxes, but they range around $100 each. That does not include the rental for a display key or right to use an eKey. Full service DFW real estate and Plano real estate agents will provide a lockbox for sellers free of charge. Agents who discount services often charge sellers for using a lockbox.

Is it Safe to Use One of These Lockboxes?

· Outdoor Placement: Some Realtors think it is better to put a lockbox on the side of the house, maybe on a gas meter, or on the back-door handle or on the garage door or a gate. The reasoning is that most people won't see it. If you have a real estate for sale sign in your yard, however, even dumb crooks will figure out that there is probably a lockbox on the side of the house or in the back of the house.

· Restricted Hours: Keep in mind that many lockboxes only operate during certain hours. For example, lockboxes do not open after 9pm or before 8am. This lessens the chance that an unscrupulous agent will just walk in on an unexpecting family or host a party in an empty house at night time. There is almost no reason for someone to have to gain access to a property outside of regular hours.

· Periodic Placement: Some sellers feel more secure if the lockbox is not attached to their house. These sellers put the lockbox in an agreed upon spot after leaving the house or upon a scheduled showing appointment time.

Manny sellers feel more comfortable with the lockbox in plain sight and on the front door. A good reason to hang a lockbox in another location other than the front door is if the lockbox interferes with opening and closing the door. If a crook wants to break into your house, they don't want to call attention to themselves at the front door. Use common sense and make sure the location of the lockbox is easily accessible by a Realtor. Do your best to not make female agents walk through grass in high heels or have agents duck under low hanging trees or fight through a mess of overgrown bushes or rose thorns to find the lockbox.

Investing in Plano Real Estate

You have seen all of the articles that say this is this best time, probably in our lifetime, to buy a home. If it is the best time to buy a home for yourself then is it a good time to invest in Plano Real estate? If you're financially able to spend time doing research, and you have cash to burn, then investing in real estate is likely to be a good financial decision for you. There are a number of excellent reasons for a part-time real estate investing business.

Can you can do real estate investing part-time: Yes. Before the Internet, this wasn't as easy thing to do. Now you can do your own due diligence which used to be the biggest time consumers in real estate investing. The Internet has opened the door to anyone with limited time to spend on the process. What used to take a full day of tramping through courthouse offices in any DFW real estate city and looking through several dozen records can now usually be accomplished in an hour or so on the Internet at any time of day or night.

Costs have nothing to do with income: Doing everything right in the real estate investment process and getting tenants into the property will not guarantee success. An unexpected vacancy or two for longer than anticipated has ruined many new real estate investors. The mortgage, property taxes, utilities and upkeep costs continue, even when the rental income stops. At those times of stress, regular income from the property is nonexistent and you will be paying these costs out of your own pocket. Even when buying Dallas foreclosures where many times your initial investment is less you can still find yourself in a negative cash flow situation.

Don’t make investment decisions under stress: Getting into a negative cash flow situation creates much stress. Too many real estate investors have lost money selling properties at the wrong time for the wrong reasons. Keep your whit anytime you have to make a decision about your real estate investment.

Is Starting Part-time easier? Taking on your real estate investments slowly and carefully at first may save you financially when you find it's not as you expected. Real estate investing part-time is definitely the way to go for most investors. Keep that steady income for stress reduction and backup funding. As you learn the business and grow your rental property portfolio you may find yourself someday where you can simply walk away from that job that you detest.

Below is some great information about rental properties:

• Property improvement for increased equity - Many investors purchase properties at a discount because they could use some improvements in condition or amenities. They have calculated that the value of the improvements will exceed the cost, resulting in an immediate increase in equity.

• Rental yield - This is the percentage yield from direct rental income, and can be calculated as either gross or net. To calculate the Net Rental Yield, take the expenses, taxes and other costs into account, and divide by the property cost/value. It could turn out to be a negative cash flow, as it doesn't take mortgage payments into account. Many investors prefer to look at the cash-on-cash yields. Though the investor can purchase and manage for a yield on this single component that exceeds average stock or bond dividend yields, it is only one of the ways in which real estate returns on your investment.

• Appreciation - Properties normally appreciate in value as inflation increases. Increased value can mean sale and reinvestment in higher valued properties. This is the second, and a historically proven value component of real estate investment return.

• Inflation – Rent Friendly - Rents generally increase with inflation, while mortgage payments on the property remain stable. This increases cash flow, with more rent income without increased expense for holding the property. When inflation is up, it can also mean more renters, as the affordability of homes can be negatively impacted by inflation. More renters increases demand, so rents will generally increase.

• Leverage - Using leverage provides much greater returns. Using $200,000 to purchase three properties with down payments, instead of one for $200,000 cash, can greatly increase your returns. Keep in mind that all leverage involves risk, so the successful investor must understand how this leverage will impact their real estate investments.

• Paying down the mortgage - Amortization, or paying down the mortgage, frees up more investment resources to increase leverage. Some investors use increased equity in one property to free up funds to invest in others. One of the best things about owning rental property is that your tenants are the ones paying down your mortgage.

Is Your Plano Real Estate Website in Your Marketing Plan & Budget?

Every year I get my copy of the local Profile of Home Buyers and Sellers. This year I want to share some data with you about how buyers are finding Plano homes that they ultimately purchased. I am talking about how they first started their home search that resulted in them finding the home they ultimately purchased. The data takes into consideration two types of buyers: those who used the Internet for home searches, and those who didn't. This included both regular Plano homes and Plano foreclosures. By also asking those who didn't use the Internet for home searches, we hope to get a more balanced picture of the value to both types of buyer of both websites and traditional “regular” media. Here are some of the results:

• 83% of those who used the Internet ended up using DFW Realtors to purchase their home.

• Of those who used the Internet, 37% found the home they bought on the web.

• 33% who used the Internet found their home through a professional Realtor.

• 38% of those who didn't use the Web found their home through a professional real estate agent.

• 2% who used the Internet found the home they purchased in a newspaper print advertisement.

• Only 1% of both Internet and non-Internet users found their home in a real estate book or home magazine.

You can see trend is clearly moving from traditional marketing to online marketing. One of your main concerns should be the return on investment of your marketing dollars. And, the data shows that the Internet is a very useful tool for home buyers. Also, the huge majority of those Internet home searchers ended up using a Realtor to assist them in their purchase. There are two very important points to be made here:

• Internet searches are the primary tool of today’s home buyers.

• Realtors are still very valuable to the home buyer and the home buying process.

It would be logical to assume that home buyers are definitely searching and locating homes on the Internet, but what can we assume about how they found the ultimate choice for a real estate professional? Unfortunately, there isn't any data to tell us the percentage of real estate agents chosen from their web presence. My opinion is that the Internet has become an extremely important tool to the home buyer, but they are still using real estate agents for their purchase. It is logical that we want to present an effective and useful Internet presence to attract buyers to use our services. Yes, many will still choose the personal referral route, but we all need to be aware that the Internet is growing as an extremely strong marketing force, while traditional media is shrinking. This means more and more of your marketing

Plano Realtors - Talk to Your Sellers About Absorption Rates

What are “absorption rates” as they pertain to real estate sales? The absorption rate takes into account how many homes are on the market and how long, on average, it will take that home to sell on the open market. Professional Plano Realtors and DFW Realtors have a duty to their Seller clients to explain this calculation so they will have an idea about how long it may take them to sell their home. Whether you are at the listing presentation, or you're following up with a seller who's been listed a while, providing the added service of helping the sellers to understand absorption rates and how their price falls into the current pool of available homes for sale in their area. Absorption rates are now required from appraisers for all government related loans; which is just about every loan out there today.

Fannie Mae's Form 1004MC, and Freddie Mac's Form 71 both require that appraisers calculate days on market, inventory levels, and absorption rates for the comparables and immediate area around the subject home. The assumption is that tracking the variability of these three measures across time periods can provide trend information to determine home value direction. The appraisers must also take into consideration the Plano foreclosures on the market which could impact the absorption rate.

Absorption Rate Calculation Example- Say we take the number of closed sales for the last six months in a certain area, and it is 110. We then check the current number of active listings, and it is 420 in that area. First, divide the 100 sales by 6 months, to get a rate of 17 closings per month. Then, divide the 420 active listings by 20 to arrive at 21 months to move that inventory; that's the absorption rate.

Under the Freddie Mac's Form, we see that they require this number for three time periods; the immediately preceding three months, four to six months back, and seven to twelve months in the past. Then, the appraiser must indicate whether the absorption rate is decreasing, stable, or increasing. If it's decreasing, then the market appears to be slowing, and this could cause the value of the home to be adjusted downward. Also considered are corresponding periods for days on market, inventory, and the sale-to-list price ratio. If sale prices are getting lower in relation to list prices, this will be evident on these addendum forms, and the appraiser should be adjusting the home value downward. So, it's clear that a good market is showing higher absorption rates, lower inventories and shorter times on market on average. They prefer to use "median" numbers.

On the bad side, if median absorption rate is declining, and days on market and inventory are rising, this doesn't look good for the market in the near term. Couple that with wider spreads between list and sale prices, and the picture darkens as well. But, good or bad news, you should be on top of this information and sharing it with sellers and prospects to help them in their decision processes.

Earnest Money Deposits and Your Plano Home Purchase

Home Buyers always ask how much earnest money deposit they should offer.  Generally, there is no set amount. In most States, contracts must contain a consideration to be valid, but that amount can be as little as one dollar. Laws in your state may be different. Keep in mind that the amount of your earnest money deposit depends primarily on your local marketplace and customs. 

What is an Earnest Money Deposit?

An earnest money deposit is a good faith deposit.  When buyers execute a purchase contract the contract specifies how much money the buyer is initially putting up as earnest money to secure the contract.  It will also show how much down payment the buyers are agreeing to make.   The balance is usually financed as a mortgage. An earnest money deposit says to the seller that you are serious about buying their house.  An earnest money deposit for Plano foreclosures also shows the bank that you are a serious purchaser.

How Much Earnest Money is Enough?

Because there is no set amount, it varies from market to market and across the country. Where I work, selling Plano homes and DFW Homes in Texas, generally this amount is between 1% and 5% of the purchase price.  Buyers here do not often put down more than 5% since the sales contract contains a liquidated damages clause that awards that earnest money to the sellers should they default and not close on transition.  If we were in a seller's market, with many buyers fighting over limited amount of home, it makes sense for the buyer to put down a much larger earnest money deposit to entice the seller to accept their offer. In a buyer’s market, a larger earnest money deposit might entice a seller to accept a much lower purchase price. 

Who Do You Give Your Earnest Money Deposit To?

In every jurisdiction that I am aware of, the earnest money deposit should either go to the Title Company or legal firm handling the closing or to the listing brokers escrow account.  Review the advice below:

• Never give an earnest money deposit to the seller.
• Verify that the third party will deposit the funds into a separately maintained trust account.
• Obtain a receipt.
• It is not advisable to authorize a release of your earnest money until your transaction closes.

Is Your Earnest Money Deposit Refundable It You Do Not Close?

Study your sales contract and addenda to see what it says about what happens to your earnest money deposit if the transaction doesn’t close.  The answer will depend on why the transaction didn’t close.  Were you not able to get your financing approved or maybe you couldn’t get clear title to the property.  Did you or the seller simply change their mind about closing?  Upon cancellation, the sellers and buyers are asked to sign mutual release agreement. If an agreement cannot be reached, the party holding the earnest money deposit will continue to hold it until an agreement is reached. If no agreement has been reached after certain period of time, title companies will send the parties a certified letter asking for mutual instructions. The letter will state that if no one responds within a certain time period, then title agent will return the money to the buyer. If the seller contests the action then the parties will have to go to arbitration or court to get the issue resolved.

Do You Need a Deed of Trust With your Plano Real Estate Purchase?

The amount of paperwork a Plano real estate buyer signs at closing is overwhelming to say the very least. Almost all of these documents will be generated by the buyer's mortgage company. Without ever reading them and just signing off on them, it generally takes buyers an hour to complete them. Every blue moon, I attend a closing with buyers who actually take time to read through the closing documents. 

 

Unless you are paying cash or you are in a mortgage state you will be required to sign a Deed of Trust.  It doesn’t matter if you are buying a Highland Park Home or Dallas Foreclosure properties the Deed of Trust works exactly the same. 

What is a Deed of Trust?

A Deed of Trust is the security instrument for your loan. It is the document that is recorded in the public records and secures a lien for the lender against your property.

A deed of trust contains three parties:

• Trustee, which is an entity that holds "bare or legal" title
• Trustor, which is you, the borrower
• Beneficiary, which is the lender

The deed of trust is a security instrument that identifies the following information:

• Original loan amount
• Legal description of the property being used as security for the mortgage
• The parties to the transaction
• Inception and maturity date of the loan
• Provisions of the mortgage and requirements
• Legal procedures, including acceleration and alienation clauses
• Riders, such as clauses for prepayment penalties

Who or What is a Trustee?

Deeds of trust contain a trustee who is an independent third party that does not represent the borrower, the lender, or the owner.

• The trustee can be a person or an entity that holds the "Power of Sale" in the event of a loan default.
• The trustee also reconveys the property once the deed of trust is paid in full.
• In the event of a default, the trustee files a Notice of Default; however, in most instances, the trustee will substitute another trustee to handle the foreclosure process under a Substitute Trustee.
• After the required period of time in the public records, and the required period of time in the publication period in the newspaper, the trustee then has the power to sell the property without a court procedure or lawsuit.
• In many jurisdictions following recordation of the Notice of Default, the borrower can redeem the property by making up the back payments and paying the trustee's fees.
• Once the trustee sells the property at a Trustee's sale, it is final.

What is a Promissory Note?

Whereas the deed of trust is security of the loan, secured by the property, the promissory note is the evidence of the debt and the promise to pay.

• The promissory note is a promise to pay, signed by the borrower.
• It contains the terms of the loan such as the interest rate and payment terms.
• The promissory note is generally not recorded in the public records.
• When the loan is paid, the promissory note is marked "paid in full" and returned to the borrower.

Before Signing a Promissory Note and Deed of Trust

Read both of these documents thoroughly, including the small printed sections. You should consider asking the closer to send you a copy of the preliminary deed of trust and promissory note beforehand. Because closers are human and make mistakes, here are the important items to review:

• Address of property
• Spelling of trustors' names
• Principal balance of the loan
• Interest rate
• Payment amount
• Prepayment penalties, if applicable

Looking Twice at Overpriced Plano Real Estate

Common logic dictates that if a home doesn’t sell there must be something wrong with it. This is a very true statement. In a normal market there is something wrong with Plano real estate that doesn't sell. But contrary to what most people believe, it's not always the condition or location of the house.  The number one reason why an otherwise home in good condition in a good location does not sell is the listing price. Homes that are overpriced often never sell at all. Why is this the case? Because home buyers will rarely look at overpriced houses let alone make offers on them.

Home Buyers Don’t Make Offers on Overpriced Listings

• Sometimes they believe that if the buyer is not reasonable about pricing the house correctly in the first place that they will be difficult to deal with.
• They don't want to offend the seller. It goes against human nature to offer substantially less than asking price to a seller. It's can be insulting to the seller and embarrassing for the buyer.
• Buyers many times believe that the seller knows the home is overpriced. They believe that if a seller would be willing to sell for less, the seller would simply lower their list price.

How Do You Find an Overpriced Listing?

The easiest way to find overpriced listings is to ask your real estate agent.  He or She can search the multiple listing system for Collin County Homes or Highland Park real estate for example of homes that have been available for higher than normal days on market (DOM).  Then ask your agent to study the listings and give you a print out of every home that has been on the market longer than the average DOM.

If your agent is a specialist in the neighborhood you are searching in, it is likely he has viewed many of these homes and has hands on knowledge of the condition and layout of these homes. Ask him to share this information with you.  Also ask your agent which of the homes he thinks are overpriced. You will learn that often buyers agents don't tell listing agents that their listings are overpriced because agents don't want to offend anyone either.  But listing agents sometimes make mistakes when estimating the market value for a seller.  Ultimately, it is the seller who set the listing price. 

Why Would a Seller Lower the Price?

A couple who bought a beautiful house at first wondered the same thing. The home sat on the market for more than three months at an asking price of almost $840,000. In a market seller’s market, it probably could have sold for about $820,000, but the market was soft and demand was weak and the sellers had moved out of the area, leaving the home vacant. The listing agent was not aware that the home was overpriced. The sellers were certainly motivated. Pointing out this information to the sellers, this couple was able to negotiate a deal to buy the home for about $160,000 less than the list price.  To make their offer more attractive to the sellers, the buyers did not include the sale of their existing home as a contingency. They also offered the seller a large earnest money deposit to show that they were a serious buyer. And they also showed the seller a list of homes that sold in the neighborhood at prices closer to their offer.

Not every home that is overpriced will end up selling for less than its market value. But many homes that are listed at unrealistically high prices are sometimes owned by sellers who are motivated and who are willing to listen to reasons why they should sell at a lower price to you. If you find out that a seller has turned down other offers for less money, it might mean that it's just a matter of timing. At some point the seller will come to his senses and say yes. There are overpriced gems hiding among the inventory of homes for sale every day. Don't just pass them by. You could be passing up an opportunity to buy your dream home at a dream value.

Plano Real Estate and Buyer's Broker Agreements

Plano real estate buyers generally sign a buyer broker agreement with their Plano Realtors before writing an offer on a home. This buyer broker agreement spells out precisely that the Realtor represents the buyer only. This is also known as a “buyer representation agreement”. There are a variety of buyer broker agreements that are used throughout the United States. For example, we will review three most common types of buyer broker agreements, with most weight given to Exclusive Right to Represent because it's the preferred form for many Realtors use when selling Plano real estate and Collin County Real Estate.

Buyer Broker Agreement / Non-Exclusive

This agreement outlines the Realtors duties and obligations to the buyer, agency relationships to all parties, Realtors scope of duty and buyer obligations; it does not provide for Realtor compensation for DFW homes for sale .

• Buyer has the right to single agency
• Buyer may hire more than one Realtor to locate property
• Buyer is not obligated to compensate the Realtor

Buyer Broker Agreement / Non-Exclusive Right to Represent

A non-exclusive agreement outlines the Realtors duties and obligations to the buyer, agency relationships of all parties, Realtors scope of duty and buyer obligations.  This type of agreement does provide for Realtor compensation. It also removes the buyer's responsibility to pay a commission if the Realtor is paid by another party such as the seller.

• Buyer has the right to single agency
• Buyer may purchase a property through another Realtor, as long as the property is not a home the first Realtor brought to the buyer
• The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and as long as it is disclosed

Buyer Broker Agreement / Exclusive Right to Represent

This is a standard form that many Realtors prefer to use with their buyer clients. It is similar in scope to the non-exclusive form except for one major difference; the buyer has agreed to work exclusively with this particular Realtor.

• The commission is negotiable
• The buyer cannot hire more than one Realtor to represent them
• Buyer has the right to single agency
• The buyer is not responsible for the commission if another party pays it, such as the seller
• The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and it is disclosed to all parties.

A non-exclusive agreement may run for a month or two, exclusive agreement terms generally run anywhere from three months to a year. If the buyer elects to purchase any property introduced to her by the Realtor, they will owe the Realtor a commission. Exclusive representation gives the Realtor the ability to negotiate with unrepresented sellers (for sale by owners as an example) on the buyer's behalf. In these cases, the commission is typically added to the sale price and then paid by the buyer to the Realtor as part of the financing. If the buyer is able to purchase the property at a discount through the Realtors negotiating ability, the Realtor will have earned their commission. Exclusive representation means the Realtor is retained by the buyer and will work diligently on their behalf and have a fiduciary duty to that buyer client.

Termination of Buyer Broker Agreement

Ask the Realtor if they will release you from the buyer broker contract if you find that the relationship is not a good fit for you or and/or them. While Realtors are not bound to release you, if they won't agree to a termination upfront, don't sign the agreement with them find a Realtor that will agree to it. Professional Plano Realtors will give personal guarantees that the customer will be satisfied.

Are You Ready to Make an Offer to Purchase Plano Real Estate?

Making an offer to purchase on  Plano real estate and actually closing on that purchase are two different actions, but many times  home buyers confuse the two especially when the purchase offer is not the final negotiation due to contract contingencies.  In some areas on the East Coast, for example, it is common to write a letter of intent to purchase a home so save a lot of time and frustration. However, many other states contain provisions in their standard sales contracts that let a buyer withdraw their offer and get back their entire earnest money deposit.

Are You Hesitating to Make an Offer?

If the home you are considering buying is likely to sell quickly, and if you have a way to later cancel the contract, you should immediately make the offer. There is no reason for you to wait.  Don't sleep on it or try to get every single question answered a head of time or you may lose the home to another buyer. Somebody else could beat you to the draw and steal it out from under your nose while you're busy weighing the pros and cons.  This is common place with the sale of popular Highland Park real estate.  If you really like the home, odds are other home buyers will like it too. 

The Reality of Purchase Offers

When a home seller accepts an offer, they are hoping the buyers will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of their home. The home buyer is hoping the transaction will close because the home is in great condition.  It's rare that either of those expectations are the reality. No home is perfect and many conditions can change once a contract is accepted.  You should utilize the services of Plano Realtors to help avoid issues that could derail the sale or cost you additional money. 

• Mortgages can be rejected
• Buyers often submit a repair list.
• Low appraisals can kill the sale.

Types of Homes That Quickly Sell

In a seller’s market, almost every home sells quickly. In a buyers’ market, the sale times will be longer. There are many inherent characteristics and qualities that determine whether homes are likely to sell fast, but these are the top three:

• Plano Foreclosures
• Cosmetic fixer uppers in good locations and priced below comparable homes.
• Ready to move in homes in great neighborhoods, excellent condition and priced right.

If the home you want to buy falls within those two categories, you should make an offer on it quickly, providing you have cancellation rights. Some Realtors don’t like to waste time writing an offer that a buyer might later cancel and will try to persuade you from making an offer. Some might not even disclose to you that you have a certain number of days to withdraw your offer. Don't hire a Realtor who doesn't have your best interest at heart.

Benefits to Making Immediate Offers

• The obvious reason to make an offer right after you find a home you love is you will prevent anybody else from buying it. When the seller accepts an offer from you, the seller cannot accept another, except a back-up offer, good only if your contract is canceled by you.
• If your offer is first and only offer, you can many times negotiate the price and terms. You can try to make a lowball offer but your negotiation power is minimized if there are other offers.
• Even if other buyers are interested, they will generally back off once the seller accepts an offer, opening the door for your renegotiations. 

Cons to Making Immediate Offers to Purchase

• If you're undecided between two homes and go enter into a contract on property 1, property 2 might not be available if you should back out of the first contract.
• Return of an earnest money deposit is not a given. Both parties are required to sign a cancellation agreement. In some States a seller can delay signing for 30 days, without penalty, an authorization to return the good faith deposit.
• Buyers can incur credit report, appraisal and home inspection fees that are non-refundable. Generally, closing cost, escrow and title policy costs are waived upon cancellation.

Given the alternative of losing the home you want it is advantageous to learn from the mistakes of others who have lost opportunities.