Are Cash Buyers Beating You to the Punch?

In today’s credit crunch economy, cash is literally King.         group_running_to_target_11135

Does it mean that a conventional funding buyer will lose every bid war?

In short, NO.

A seller may have many reasons to sell their property.  An all cash offer, is always inviting to a seller, but an all cash offer does not mean that the deal will close.  Many sellers are experiencing a change of funding source after the offer is accepted, but prior to close of escrow.

Other sellers are having issues before the close, with a potential buyer walking away from the deal, most likely due to a funding issue.  Other issues have been extended closes primarily due to a change in funding source prior to the close of escrow; going from an all cash offer to conventional funding.

Should a buyer lie about their funding source, or offer a higher price than market just to get their offer accepted.

No, lying is not an honorable quality.

Always be up front with a potential seller.  If your funding is from conventional financing then submit a copy of your pre-qualification letter along with your offer.   Show that you can potentially close the deal, but it may take longer.

If you decided to offer a higher price, then be careful with that strategy, make sure the offer price is worth the market value of the property.

Even though there are many cash offers promising quick closings, this is still a real estate market where a conventional buyer can compete.

But if the seller wants an all cash offer, that seller has to be ready to accept a lower sale price.

So, if Cash is King, and you have a conventional funding source, your offer may still be accepted, if you use the correct strategy to get your offer accepted.

 

 

Buying Real Estate with Inflation Looming

English: Co-operative Grocery Store (unoccupied)

Image via Wikipedia

When in times of inflation not only does the dollar lose value, but real estate values will almost always go down.  Now factoring in the housing crisis which has created a housing glut plus interest rates staying low to no movement upward, this is possibly one of the best times to invest in real estate.

Times only look bleak, if you chose to place your money in a mattress, instead of having the dollar work for you.  There are many deals and duds in the real estate market of today.  But how can one navigate and discern what would be a good, great or bad investment.

Location, Location, LOCATION.

This really means to know whether the real estate investment is in a great location for its specific type.

For example, you would not open a night club in a family oriented neighborhood; business would probably never take off the way you would want it to.  Another example, you would not open a grocery store in a warehouse district where houses were not close by.  Nor would you consider opening a nursery school within 5 miles of a state prison.  Not too many people would build a multi million dollar mansion in an area where the neighboring houses are valued at $100,000.

The aforementioned are just not sound investments.

Considering the location for the purpose of the real estate, should be the leading factor in evaluating and moving forward with a purchase.

Tips to Edge Out All Cash Buyers for Your Dream Home

Path to a HomeOne way is to include a copy of your pre-qualification letter in your offer.  But you do not want to give away how much, or high you can bid on a property.  Making your offer solid is the key to acceptance.

If you do not want to give the copy of the pre-qualification letter, then let the seller know you can close the deal but it may take more time than someone else with quick cash funds, due to conventional financing.

Not all sellers are looking for a quick close.  Property owners of houses, which you want to become your dream home, may want a nice couple or family to purchase their home.  So don’t be afraid to take the family house hunting.  The kids liking the home and their energy of excitement might be the actual closing factor to your dream house.

Often times doing something as simple as a follow up with the seller and the realtor may also help you edge out your competition.  If you show you want it, and continually follow up the seller will see you are serious about closing the sale of your future dream home.

Remember, to help edge out all cash buyers, be upfront and honest about where your funding is coming from, take the entire family house hunting, and follow up with the seller and realtor.  The home you are trying to purchase, my just become your dream home.

 

 

Be Your Own Home Inspector

dream houseFirst, do not let the title mislead you in any way, shape, or form. It does cost upwards of $200 to have a certified home inspector to inspect your future dream home. What if, you like two different possible dream homes, will you have them both inspected? Will you hire two home inspectors? Only to buy one dream home.
Not necessarily in either case.
The remedy, be your own home inspector. This will be the first step to finding, and purchasing your dream home.
From the outside of the house ask yourself, does it have curb appeal? Does the driveway have large cracks? If the driveway has large cracks, this could show that there is a plumbing issue which could cost more than $30,000 to repair.
Do you see any warping in the sidewalk? This is also indicative of a plumbing and/or a root system issue. The root system of a tree tends to buckle the sidewalk. If the root system is strong enough to buckle a sidewalk, that same root system may invade the plumbing of your future dream home. This can become a bigger issue if the roots have begun invading the plumbing system.
It can cost more than $5,000 to remove a mature tree with its root system. If the roots are left it would be pointless to remove the tree. Yes, root removal may be a separate charge.
Is there a tree in the front yard? What type of tree, one with a shallow or deep root system?
At the front door under the eaves or the porch area look at any exposed wood. Does the wood have a light reddish-brown looking substance resembling pebbles?
Do you see any separation in the wood?
Take a look at the window and door frames; do they seem loose or about to fall out?
These symptoms may be indicative of termites. You can still buy a house with termites as long as a termite inspection states that they are controllable, meaning the wood can be treated to suppress the continuation of the termite population.
Also check the attic and crawl spaces in a house; those are the dark areas which may show signs of water damage, pests’ infestation, and weakening structural issues.
Now, look up in every room you enter. Yes, look up at the ceiling for water spots, rust spots, peeling paint in the corners; these things could indicate a present or past plumbing problem. If the stain is newer looking then the problem may have been recently repaired or the problem persists, and will only worsen with time.
The best thing to do is ask questions of the realtor. Ask for paid invoices of recent work performed on your future dream home. Not only will this help to make you feel better about buying a dream home free of preexisting issues, it will also show that there isn’t a ‘mechanics lien’ on the property.
Does the ceiling sag?
If so, the roof may need to be replaced. If you walk into any room and the ceiling is sagging that will show the roof and the ceiling is in need of replacement.
Look under the sinks, bathrooms and kitchen, if there is water leakage or mold that means a leak was allowed to continue, which means you might have to replace the wood in that area.
Being your own home inspector will help you to make a better buying decision when purchasing your dream home. Try to remain objective so your purchase will be a place where your family’s memories will be great ones.

Thanks!!!!! To All Our Veterans

Not too long ago I had the privilege to meet a few wounded warriors.   It was three young men, no older than 25years old going to Disney Land.  All three had varying types of injuries.  One man was missing his arm, the other man was missing one leg, and the third was in a wheelchair which was pulled by his new service animal named Max.  The man in the chair was missing both hands, legs and thighs.  These men, in the service of our country, were injured but still remain in good spirits.  Many Vets have returned home with injuries to their body, mind, or both.

 

On behalf of Immaculate Enterprises we thank all of our USA Veterans for your dedication and love of this country.