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Whether you like to or not, buying and selling a home involves negotiation at all stages of the process.   It is not like the retail world where once you decide to purchase, you pay the price.   It is easily the most expensive purchase or sale that most people experience and emotions get involved that could affect the negotiations adversely. The word "home" by itself conjures up emotions and selling a home you've lived in for a while could even complicate things more.   A real estate professional can separate their emotions from the process to be able to help the one they are representing. The price of the home, the type of financing and concessions, closing costs, personal property, closing dates and possession are just a few of the many things that can be negotiated in a contract.   Since the seller wants to get the most for their house and the buyer wants to pay the least, their objectives are diametrically opposed. Even after the contract is signed, removin...

The National Association of REALTORS® just released the Market Recovery Survey of a random sampling to close to 100,000 members conducted June 24-26, 2020.   The following statements are the members' opinion on various aspects of the recovery to the Covid-19 pandemic as it relates to real estate. In response to the safety of buyers, sellers and agents, REALTORS® are expecting within the next year to have increased demand for the following technologies used to market properties: 67% - Zoom or other video technology to communicate with clients 66% - virtual tours 63% - live virtual tours conducted by agent using video 60% - virtual open houses Nine out of ten respondents indicated that some of the buyers have returned to the market or never left the market.   Agents currently working with buyers report that slightly more than half of buyer's timeline has remained the same with about the same level of urgency.   27% believe the buyers...

The seller can put a price on the home but the value is ultimately, determined by the buyer. Individually, a buyer could pay over market value because they love the location, or the elevation of the home or the proximity to something that is important to them.   The shortage of available homes resulting in increased competition among buyers could drive the value higher. Most experts agree initially pricing it properly will generally result in the highest sales price.  If a home starts out too high, it could actually sell for a lower price after it has been on the market for a while.   It gives the impression that there must be something "wrong" with the house because it didn't sell immediately.    So, how does a seller determine what price to put on the home?   It has nothing to do with what the seller needs to get out of it.   Nor does the price the seller paid for it make any difference now.   Even if the seller made considerable improvement...

You've done your homework, contacted a mortgage company and believe you are pre-approved.   That part of the process is finished and you can concentrate of finding a home and moving...or can you? Pre-qualified and pre-approved are two different things but some people, including some in the business, use the terms interchangeably.   Pre-qualified is an opinion of likelihood that a borrower will be approved based on preliminary information about their income and credit.   Whereas, in a pre-approval, the borrower's credit report is updated and pulled, income and assets verified and involves pre-underwriting. Even when you have a highly qualified loan officer, the real decision maker is the underwriter who can commit the lender.   Generally speaking, a person who has been pre-approved receives a written letter stating the terms and conditions of the commitment. A second opinion from a different lender can be a comforting thing for a borrower.   It will either ...

Paying off your mortgage can provide peace of mind and is a worthy goal but is it the best thing for you to do at this time. Do you have higher interest rate debt currently?   If you have credit card debt with double-digit rates or personal, car or student loans, you'll probably save more money from interest by paying these things off before you pay off your mortgage which is usually one of the lower rates on debt. Many financial advisors recommend funding your annual retirement contribution before paying down a mortgage.   If your company offers matching funds for your contribution, you would be leaving money on the table by not making the contribution to your retirement.   For instance, you would be getting a $10,000 value by putting $5,000 into your retirement if your company matches it. Creating an emergency fund is another favorite of financial advisors.   When the rainy day arrives and you need funds, it may be difficult to get money from the equity of yo...

Homeowners still have considerable advantages from the amortization of the mortgage and the appreciation enjoyed by most homes even with taking the standard deduction instead of itemizing to take the interest and property tax deduction.   There is an adage, "Rent or buy, you pay for the house you occupy."   You either pay for it yourself or for your landlord.   The people who have job security, sufficient income, good credit and the funds for the down payment and closing costs can enjoy the many financial and emotional benefits of homeownership. Looking at a $350,000 home purchased with an FHA mortgage with 3.5% down payment at 3.25% interest for 30-years, the total payment would be $2,420 a month.   During the first year, the average monthly principal reduction is $573 a month which build the owner's equity in the home. At an estimated 3% appreciation, this home would increase in value at the rate of $875 a month during the first year which again builds the ow...

Homeownership is a privilege and a responsibility. Even after decades of owning a home, you may still need some help to handle some of its challenges by focusing on the three "M"s of homeownership: maintenance, minimizing expenses and managing debt and risk. While many people recognize the benefits of annual wellness, financial, vehicle and equipment maintenance visits, an important checkup that you may not have considered is an annual homeowner advisory or real estate review. Why would you treat the investment in your home with less care than you treat your car or your HVAC system? Consider exploring the following: Do you know the current value of your home? (You can, by obtaining a list of comparable sales in your immediate area, as well as what is currently on the market for sale.) Have you compared your assessed value for tax purposes to the fair market value in order to possibly reduce your property taxes? Even if you've refinanced in the last...