When your offer is not accepted, it can feel disappointing, but don’t let it discourage you! Here are some steps you can take:
Stay positive: Remember that not every offer will be accepted. This is a normal part of the real estate process. Keep a positive mindset and stay motivated.
Request feedback: Contact the listing agent for feedback on why your offer was not accepted. This information can help you improve future offers and understand the seller’s concerns or preferences.
Analyze the market: Take a closer look at the area is current market conditions and comparable sales. This analysis can help you evaluate if your offer was competitive or if you need to adjust your strategy for future offers.
Review your offer: Assess your offer to see if any areas could be improved. Consider factors such as the purchase price, contingencies, closing timeline, or other terms that may have influenced the seller’s decision.
Stay in touch: If you’re still interested in the property, let Scott and Mary Tynell know you are open to backup offers. Sometimes, the initial offer may fall through, and you could have another opportunity.
Keep searching: Do not put all your eggs in one basket. Continue exploring other properties on the market that meet your criteria. Another great opportunity may be just around the corner.
Rely on your real estate agent: Lean on Scott and Mary Tynell a trusted real estate agent for guidance and support. They can provide valuable insight, help you refine your strategy, and assist you in finding the right property.
Remember, the real estate market is dynamic, and offers can be accepted or rejected for various reasons. Stay resilient, learn from each experience, and stay focused on finding the perfect home for you. Good luck!
Seasonality has a significant impact on the real estate market, influencing both buyer and seller behavior. Here are some key points to consider when discussing the impact of seasonality:
Demand and Inventory: The number of buyers and sellers in the market fluctuates throughout the year. Generally, the spring and summer months see increased activity, as families prefer to move during warmer weather and before the new school year begins. This results in higher demand and more inventory during these seasons.
Pricing: Seasonality can also affect home prices. During the peak season, when there is higher demand, sellers may be able to command higher prices for their properties. Conversely, sellers may need to adjust their prices during the off-peak season to attract buyers.
Competition: The level of competition among buyers and sellers can vary based on the season. In a seller’s market, buyers may face more competition and multiple offer situations when demand exceeds supply. On the other hand, in a buyer’s market, when there is an excess inventory, sellers may need to be more competitive in pricing and marketing their properties.
Market Trends: Real estate market trends can vary throughout the year. For example, buyers may surge during holidays or summer in areas with vacation or second-home markets. Additionally, areas with strong university or college presence may experience increased rental demand during the start of the academic year.
Regional Differences: It’s important to note that the impact of seasonality can differ by region. For example, in colder climates, the winter months may experience a slowdown in real estate activity due to weather conditions. Conversely, winter may be considered the peak season in warmer climates.
Understanding the impact of seasonality on the real estate market can help buyers and sellers make informed decisions. Scott and Mary Tynell are real estate professionals who possess a keen awareness of these market patterns. They adeptly adjust their strategies to maximize success in any given season, demonstrating their mastery of the dynamic real estate landscape.
Selling your house when inventory is low can offer several perks for homeowners. Here are some of the advantages:
Increased demand With fewer homes available on the market, there is typically increased competition among buyers. This can lead to multiple offers, bidding wars, and potentially higher sale prices for sellers.
Faster sales process When inventory is low, homes tend to sell more quickly. This is because buyers have limited options and are often motivated to make a purchase sooner rather than later. You might experience a faster sales process and avoid prolonged listing periods as a seller.
Favorable negotiating position Low inventory can give sellers an advantage during negotiations. With limited options, buyers may be more willing to meet your asking price or make concessions to secure the property. This can put you in a stronger position to negotiate favorable terms.
Less competition from other sellers In a low-inventory market, there are typically fewer sellers competing for buyers’ attention. This means your home may stand out more, attracting serious buyers who are actively searching for properties. This can increase your chances of receiving quality offers.
Potential for higher sale prices When supply is low and demand is high, it often leads to an increase in sale prices. With multiple buyers interested in your property, you may receive offers that exceed your initial expectations, resulting in a higher return on your investment.
Less time and effort spent on marketing In a low-inventory market, the demand for homes often outpaces the supply. As a result, you may not need to invest as much time and effort into marketing your property to attract buyers. This can save you valuable time and resources during the selling process.
It’s important to note that the perks of selling in a low-inventory market can vary depending on your specific location and market conditions. It’s always a good idea to consult Scott and Mary Tynell, real estate professionals who can provide tailored advice based on your circumstances.
Buying a home is a team sport, especially when buyers face the affordability challenges they face now. Volatile interest rates and tough competition for a limited supply of homes pose unique issues for home shoppers. If you have been writing offer after offer even competitive offers over the asking price and still not getting anywhere, it could be time to change tactics.
Strategies tied to mortgage products and seller incentives can help buyers, even in situations involving cash buyers or shoppers offering above the list price. These tactics won’t apply to every situation. Still, they offer buyers an idea about the adjustments to their offers or financing that can make the difference between getting the keys or attending another open house. It is important to note that every real estate market and buyer/seller transaction is unique and results may vary.
1. Offer a partial appraisal waiver An appraisal establishes the current value of a home and is used by lenders to determine how much they’re willing to lend buyers for a given home. Buyers who make an offer on the house usually include an appraisal contingency that lets them cancel the deal without a penalty if the house does not appraise for the agreed-upon price.
Buyers in competitive markets can be tempted to waive appraisals, but doing so could require them to bring more money to the table at closing if there’s a gap between the price they offered on a home and what an expert appraiser thinks it’s worth. This is because a mortgage is tied to what the appraiser determines the home is worth. Anything over that amount is the buyer’s upfront responsibility.
Instead of waiving an appraisal altogether, some clients agree to pay a specified amount over the negotiated sales price if there’s a gap between the asking price and the appraised value. That way, the buyer can still write a competitive offer, but not to the point of putting themselves at risk of having to come to the table with a big check — or losing their earnest money.
2. Show sellers you’re serious with a “time off market” fee In a market where it’s common for buyers to lose a home to a competitor offering over the asking price, there’s an option that could, in some cases, be just as attractive to sellers and potentially less expensive. It’s called a time off-market fee.
When buyers make an offer on a home, they typically put up earnest money — a relatively small amount that can be refunded if certain conditions aren’t met.
However, with a “time off market” fee or TOM, the seller keeps the money regardless of whether the deal closes. It’s paid to them for accepting the buyers’ offer. It’s a bold strategy and it works really well. If the buyer doesn’t close, they still have to pay that.
A TOM fee in place of earnest money, can be more attractive to a seller than an offer over the asking price, especially if the offer would result in an appraisal gap, where the sales price is more than what an appraiser determines a house is worth in the current market.
For instance, a real estate agent negotiated a deal where a competing offer was about $10,000 over the listing price. Rather than match that offer, they successfully made a case that the house was accurately priced based on the sale of comparable homes; an offer above that price would inevitably result in an appraisal gap that could jeopardize the deal.
This competitive offer strategy can be more attractive to the seller, and ultimately cheaper for the buyer, than making an offer of $10,000 over asking.
The size of the TOM fee depends on the price of the house, but usually, it ranges from $500 to $5,000. The buyer has to understand what a TOM fee is be 100% comfortable with it and be committed to that house or willing to lose that TOM fee in the event they don’t close on it.
3. Pay a lender for a lower interest rate over the life of the loan Buying “mortgage points,” also known as discount points or simply points, from a lender can help reduce the monthly payment on a home. Mortgage points are essentially prepaid interest paid at closing in exchange for a lower interest rate over the life of the loan. Each point typically costs 1% of the total loan amount. The more points you buy, the lower the interest rate.
One point generally reduces the interest rate by a specific percentage, often 0.25%. For example, if a buyer applies for a $300,000 mortgage and decides to buy one point, they would pay $3,000 (1% of $300,000) and receive a reduction of 0.25% on their interest rate.
Buyers considering this strategy should consider how long they plan to stay in the home, how much they’ll save by reducing the interest rate, and how much money they’ll have to spend upfront. A loan officer or financial advisor can help determine whether buying points makes sense for you.
4. Pay a lender to temporarily lower your interest rate Another way to lower a monthly mortgage payment is to cut the interest rate for the first one to three years of the loan. The most common mortgage product to do that is a 2/1 buydown. It allows a borrower to ‘buy’ a lower interest rate for the first two years of their mortgage by prepaying a portion of the interest on the loan. For example, a borrower who applies for a 30-year, fixed-rate mortgage at 7% can lower the mortgage to 5% the first year and 6% the second year by pre-paying the interest they would have paid at the 7% rate for those two years. The mortgage then reverts to 7% in the third year.
It’s important to note that the buydown cost is separate from other closing costs, and can be paid for by the seller, builder, or buyer. Buyers who adopt this strategy either plan on dropping interest rates to refinance or increase their incomes over the two years the lower rate is in effect.
Loan officers can provide accurate and up-to-date information on the cost of a 2/1 buydown and specific details based on different loan amounts, interest rates, and loan terms.
5. Bump up the offer price in exchange for a lower, seller-subsidized mortgage rate This tactic is most effective when negotiating with a seller whose house is not selling as quickly as expected or when the market favors buyers.
Example: Offering about $8,000 over list price and asking the seller to credit that money back so the buyer can purchase a lower mortgage interest rate from their lender at closing.
In effect, the buyer increased the loan amount so they didn’t have to pay out-of-pocket to get a lower rate. The result a lower monthly payment and the ability to spread the cost of the buydown over the life of the loan.
There’s a risk if it doesn’t appraise at the higher amount, but if you can use that money for a 2/1 buydown, or just buy the rate down by a certain percentage point, you can lower the monthly payment.
The 2/1 buydown temporarily lowers the mortgage payment for two years while buying points lower payments over the life of the loan.
In the mentioned example, the client could buy down the mortgage rate by 1.5 percentage points, putting them in a better position on their mortgage payments than if they’d paid the listing price without the lower interest rate.
6. Ask for a lender credit to buy down the mortgage rate This is where professional relationships are especially important. He says that agents who work closely with lender partners can help buyers make a better, more competitive offer in neck-in-neck situations.
While some of these scenarios may seem complicated, an experienced agent and loan officer can discuss options. Buyers who want to explore different scenarios can do so with the many resources available.
7. Consider new construction While buying new construction isn’t a competitive offer strategy, it provides one avenue for more affordable mortgage rates. The added bonus is that there is less competition, no bidding wars, and clients get a brand-new home in certain markets. Many builders offer great incentives with in-house financing, such as a 4.99% interest on financing. The rate was about 2% lower than the rates on a 30-year mortgage.
While builders might hold firm on the asking price so as not to affect prices on homes in the rest of the development, they may be more willing to negotiate around concessions and financing.
Whether you’re in the hunt for a home or you’re still in the dreaming phase, it can help to familiarize yourself with strategies for making competitive offers in a seller market, so that when the time is right, you know your options be sure to talk to your agent to know for sure. Every tactic comes with some degree of risk, and it’s critical that buyers understand tradeoffs and consequences and how the tactics fit into the bigger picture.
Selling your house on your own, also known as “For Sale By Owner” (FSBO), can be tempting for some homeowners who want to save on real estate agent commissions. However, it’s important to understand the risks involved in this approach. Here are a few potential challenges you may face when selling your house on your own:
Limited Exposure: Real estate agents have access to multiple listing services (MLS) and other marketing platforms that can significantly increase the exposure of your property. By selling on your own, you may struggle to reach a large pool of potential buyers, resulting in a longer time on the market.
Pricing and Negotiation: Determining the right listing price is crucial to attract buyers. Without an agent’s expertise, you might overprice or underprice your home, leading to missed opportunities or leaving money on the table. Additionally, negotiating with buyers can be challenging, and without professional guidance, you may not secure the best deal.
Legal and Contractual Complexities: Real estate transactions involve many legal documents and contracts. Without the guidance of an experienced agent, you run the risk of making costly mistakes or overlooking important details, potentially leading to legal disputes or financial losses.
Lack of Market Knowledge: Real estate agents possess extensive knowledge of local market trends, comparable sales, and neighborhood insights. This information is vital when making pricing decisions and marketing strategies. You may miss out on crucial market insights and make less informed decisions by selling on your own.
Time and Effort: Selling a house requires significant time and effort. As a homeowner handling the process on your own, you’ll be responsible for tasks such as marketing, arranging showings, coordinating inspections, and handling negotiations. This can be overwhelming, especially if you have other commitments or need more experience in real estate transactions.
Security Concerns: Opening your doors to potential buyers without professional representation can expose you to security risks. Strangers may enter your property, and without an agent’s screening processes, it can be challenging to ensure the safety of your home and belongings.
While selling your house on your own may work in certain situations, it is important to carefully consider these risks and evaluate whether the potential savings outweigh the potential drawbacks. Consulting with Scott and Mary Tynell a real estate professional can provide valuable guidance and support throughout the selling process. Contact them today!
The direction of mortgage rates is influenced by several factors, including economic conditions, inflation, monetary policy, and market demand. While it is challenging to predict the future with certainty, here are some factors to consider when assessing whether higher mortgage rates are here to stay
Economic recovery: Mortgage rates tend to rise during periods of economic growth and higher inflation. As the economy recovers from a downturn, there is a possibility that mortgage rates will increase. However, the pace and extent of the increase will depend on various economic factors, including job growth, inflation levels, and government policies.
Federal Reserve actions: The Federal Reserve plays a crucial role in setting short-term interest rates, which indirectly affect mortgage rates. Currently, the Federal Reserve has indicated that it plans to keep interest rates low to support economic recovery. However, if the economy strengthens significantly, the Federal Reserve may adjust its policy and raise short-term rates, which could potentially lead to higher mortgage rates.
Housing market conditions: The housing market also plays a significant role in mortgage rate fluctuations. Strong demand for housing and limited inventory can drive up home prices, which can, in turn, lead to higher mortgage rates. Conversely, if housing market activity slows down, mortgage rates may stabilize or even decrease.
Global factors: Mortgage rates can be influenced by global economic conditions and events. Factors such as international trade, geopolitical tensions, and global financial markets can impact interest rates. It’s essential to monitor these factors and their potential impact on mortgage rates.
It is important to keep in mind that while mortgage rates may rise in the future, they are still historically low compared to previous decades. Even with higher rates, homeownership can still be a financially advantageous long-term investment.
If you are considering buying a home or refinancing, consult with a mortgage professional for personalized insights tailored to your circumstances and current market conditions. They can assist you in evaluating options and making informed decisions regarding your mortgage. Scott and Mary Tynell can connect you with a reliable mortgage professional. Contact them today!
When choosing a listing agent for your real estate needs, there are several key skills and qualities you should look for. Here are some important ones:
Market Knowledge A good listing agent should deeply understand the local real estate market. They should be familiar with current trends, comparable sales, and the competition in your area. This knowledge will help them price your property accurately and strategically.
Marketing Expertise Your listing agent should have strong marketing skills to promote and advertise your property effectively. They should be proficient in various marketing channels, such as online listings, social media, photography, and virtual tours. A well-marketed property attracts more potential buyers, increasing your chances of a successful sale.
Negotiation Skills Negotiating is a crucial aspect of the real estate process. Your agent should be a skilled negotiator who can advocate for your best interests. They should know how to navigate offers, counteroffers, and any potential obstacles during the negotiation process.
Communication Skills Effective communication is essential in any real estate transaction. Your listing agent should be responsive, keeping you informed and updated throughout the selling process. They should be able to explain complex concepts clearly and address any concerns or questions you may have.
Professional Network A well-connected agent can tap into their professional network to benefit your listing. They should have relationships with other real estate professionals, such as lenders, home inspectors, and contractors, to streamline the selling process and provide you with reliable referrals.
Problem-Solving Abilities Real estate transactions can sometimes encounter challenges. Your agent should be resourceful and proactive in finding solutions to any issues that may arise. Their problem-solving skills will ensure a smoother transaction and minimize stress for you as the seller.
Scott and Mary Tynell, professional real estate agents, possess key skills to enhance your chances of a successful and profitable home sale. Contact them today!
While it might seem a little dramatic to call a seller’s mistakes fatal, especially over something as innocuous as selling your home, selling a home is serious business. Not approaching it as such is a surefire way for your home to remain on the market.
Selling your home does not have to be an emotional roller coaster. By preparing yourself ahead of time for all the inevitable things you are going to face and following these essential ideas you increase the chances of having smooth sailing. Avoiding these mistakes will save you money and heartache in the end.
Getting Attached to the Price
Pricing your home is not based on the opinion of the homeowner or even the agent. It is directly related to perceived value. If buyers look at your home and compare it to others in the neighborhood and it doesn’t meet their requirements for what they believe should be an adequate price then you will receive no offers. In order to stay in line with a buyers’ opinion, you must be willing to base the price of your home on objective and proven research metrics.
Allowing Emotions to Get in the Way
Not allowing emotions into the process of selling your home is much easier said than done. However, don’t let emotions cloud your judgment. Selling your home should be approached like any other large transaction where emotions will not give you the same leverage during negotiations as facts will all, you are selling a product, and the more you look at it from that perspective, the easier it will be to keep the emotions at bay.
Refusing to Negotiate
Negotiations need to be an integral strategy when you receive an offer. By approaching everything from a win-win perspective you can ensure you are not losing too much to your bottom line while still making the buyer feel like they have made a sound decision. Like any negotiation, the mentality of winning at all costs is a good way to have buyers walk away.
Not Taking Professional or High-Quality Listing Photos
Professional photography is a necessity for getting showings for your home. Why? 90% of buyers start their home-buying process by looking at homes online. To draw their attention, the photos need to be high-quality and beautiful to compel them to take a closer look at your home. You are not just selling your home; you are also selling a lifestyle and dream. Exceptional photography captures this by communicating to buyers your home is one they want to see in person. This is accomplished by using adequate lighting and proper angles that appeal to a buyer. The great thing is, unfortunately, there are so many homes on the market with poor photos. By doing this, you already position your home far above the rest.
Thinking you Don’t Need Staging
Great staging is essential to the sale of your home. When a home is beautifully staged, buyers forgo things that normally would have sent them out the door. Proper staging can place your home far above the competition. It is important to note that not all staging is good staging. This is why it is important to hire a stager who understands things like buyer psychology. Colors that elicit the emotions you are trying to get out of the buyer. Trends that are currently in homes that buyers love. Having a stager who knows all these things will ensure your home is placed in the best light possible.
Not Being Properly Insured
With the number of potential buyers walking through your home, the items in your home are exposed to possible theft. It is important to know beforehand if you have the proper insurance to protect your valuables. Furthermore, if anyone should be involved in an accident while being in your home, it is advisable to have proper insurance to protect you in case there are any litigations from it.
Not Investing in a Pre-Inspection
If there is anything that will blow up a deal, it is a disagreement over the handling of repairs. How do you avoid this? By paying heed to the old saying, “the best defense is a good offense” and getting a pre-inspection. Having an inspector come out before you put your house on the market will let you know all the things that might concern a buyer. This will give you leverage. When it comes to contracts, any leverage you can get before you place your home on the market is valuable. This also allows you to make necessary adjustments before having a contract in front of you.
Not Requiring Proof of Funds
Getting an offer especially when you are on a limited time frame can be exhilarating. Unfortunately, this exhilaration can quickly turn into frustration when you do not require buyers to have pre-approval or proof of funds in the case of cash buyers. Requiring this saves you wasted time because a buyer is not financially able to buy your home. Time is money and by accepting an offer you are essentially closing the door on all the other offers which may have come afterward. When you do that you want to do everything in your power to ensure the deal goes through and you are not having to start from the beginning again.
Not Seeing Your Home as a Product
Buyers want what they want when they want it. When it comes time to show your home, buyers do not care whether or not you just cleaned your home. Whether you just came back from work and therefore do not want to leave your home. Showing your home, while at times can be totally inconvenient, it is an integral part of getting your home sold and should be approached as such. Your home is no longer a dwelling, it is now a commodity that is being judged every time a buyer walks into it. Not accommodating prospective buyers will turn them off from making you offers.
Not Considering Selling Your Home Later in the Year
Selling your home during the fall and winter months is the time most people in the industry advise you not to sell because of all the things people are doing during the holidays. The buyers looking to buy during the fall are going to be the most serious. With most sellers following they should not sell their home during the holidays, this means inventory goes down.
Ready to make your home the next success story? Contact Scott and Mary Tynell today. Your dream sale is just a call or email away!”
If your listing expired and your house didn’t sell, you’re likely feeling a little frustrated. Not to mention, you are also probably wondering what went wrong. Here are three questions to think about as you figure out what to do next.
Did You Limit Access to Your House? One of the biggest mistakes you can make when selling your house is restricting the days and times when potential buyers can tour it. Being flexible with your schedule is important when you’re selling your house, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. Do your best to be as flexible as possible when granting access to your house for showings.
Sometimes, the most determined buyers might come from far away. Since they’re traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple. If no one’s able to look at it, how’s it going to sell?
Did You Make Your House Stand Out? When selling your house, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.
Did You Price Your House Compellingly? Setting the right price is extremely important when you’re selling your house. Even though it might feel tempting to push the price higher to maximize your profit, overpricing can scare away buyers and make it hard to sell quickly. The biggest mistake sellers make is overpricing their homes.
If your house is priced higher than others like it, it could make buyers lose interest. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it sold.
Bottom Line It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Connect to Scoot and Mary Tynell to figure out what happened and what to reconsider or change if you want to get your house back on the market.
Deciding whether to rent or sell your house can be a tough decision, as it depends on various factors such as your financial goals, market conditions, and personal circumstances. Here are some key considerations to help you determine the best move for your situation:
Financial Goals: Consider your short-term and long-term financial objectives. If you need immediate cash or want to invest in a different property, selling may be the better option. On the other hand, if you’re looking for a consistent passive income stream, renting could be more beneficial.
Market Conditions: Research the current real estate market in your area. If it’s a seller’s market with high demand and low inventory, you may be able to sell your house quickly and at a favorable price. However, if it’s a buyer’s market with slow sales, renting might be a viable alternative until the market improves.
Cash Flow Analysis: Evaluate the potential rental income compared to your mortgage payments, property taxes, insurance, and maintenance costs. If the rental income covers these expenses and provides a positive cash flow, renting could be a smart choice. If not, selling might be more financially advantageous.
Property Management: Consider whether you’re willing to take on the responsibilities of being a landlord. Renting out a property requires active management, including finding tenants, handling maintenance requests, and dealing with potential vacancies. If you’re not interested in the time and effort required, selling may be a better option.
Tax Implications: Consult with a tax professional to understand the tax implications of renting or selling your property. Selling may lead to capital gains taxes while renting allows for potential tax deductions such as mortgage interest, property taxes, and depreciation.
Future Plans: Think about your future plans and how they align with your property. If you plan to move back into the house in the future, renting could provide flexibility. However, if you’re certain that you won’t return or have long-term plans elsewhere, selling might be the more appropriate choice.
Ultimately, the decision to rent or sell your house depends on your unique circumstances and goals. You can consult Scott and Mary Tynell who can provide market insights and help you make an informed decision.
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