Real Estate Information Archive

Blog

Displaying blog entries 1-10 of 79


Considering buying a foreclosed home? Any home buyer looking to pay below market value should be paying attention to foreclosure listings. But the process of buying a repossessed home is full of misconceptions—and we're here to help separate the false stereotypes from the reality.

These are some common myths that need to be set straight.

Myth 1: The house must be bought in cash

That all depends on what stage a foreclosure property is in, says Bill Gassett with Re/Max Executive Realty in Hopkinton, MA. If the home is in pre-foreclosure or “short sale,” the buyer does not need to shell out an all-cash offer.

“They can procure a mortgage just like any traditional sale,” Gassett says.

If the bank sells a property at public auction, the mortgage holder usually does require that the home is bought with cash and mortgage contingencies are not allowed in the sale.

If you don't have a lot of cash on hand but know you'd like to buy a home in foreclosure, Bobbi Dempsey, author of "Idiot’s Guide to Buying Foreclosures," suggests drawing from a line of credit obtained using current property.

When the foreclosure is a bank-owned property, Gassett says the bank is usually actively looking for an end buyer.

“The purchaser of a bank-owned property is almost always able to procure a mortgage as part of the contract with the bank,” he says.

Myth 2: Buyers forfeit their right to have a home inspection

Definitely not true! Buyers have the right to do a home inspection and ask for repairs, but banks or sellers aren’t required to make them, says Rob Jensen, broker and president of Rob Jensen Co., in Las Vegas. But home inspections are actually encouraged since nearly all banks sell their foreclosed homes in as-is condition, and want to avoid liability down the line.

“It is common for structural, electrical, and plumbing issues that pertain to the safety and integrity of the home to be repaired, but there's no guarantee,” says Jensen. “Every bank and every deal is different.” However, don't count on the bank to fix those cosmetic issues.

Jensen says paint, carpet stains, and other minor blemishes are not likely to be addressed.

Buyers considering a foreclosure should make sure the sales contract has a contingency clause that requires a passing home inspection. This way, buyers can either choose to accept any issues with the home or back out of the contract.

With courthouse sales, however, homes are sold as they are, with no inspection.

Myth 3: Foreclosure homes require huge overhauls

It's incorrect to assume that all homes in foreclosure are in shoddy condition. A large percentage of foreclosures are the result of job loss, illness, death, divorce, or even fluctuations in the real estate market, which means many of these homes were well maintained and may need only minor touch-ups.

“It quite often depends on the attitude of who last owned the property and whether or not they went out of their way to destroy the place,” says Jensen.

Myth 4: Foreclosures sell at heavy discounts

A common belief is that a foreclosure home will sell for at least half of its original value. But remember, the bank still wants to make a profit. Buying a foreclosure home can save you green, but the seller will hold out for the maximum price possible.

Home buyers often make a beeline to foreclosures because they think they can get a home for pennies on the dollar. But, Jensen says, by the time they factor in the time and renovation costs, they may reconsider.

“Foreclosures can provide opportunity to save, but you usually need time and extra cash to take advantage of it,” he says.

Myth 5: Foreclosure homes carry hidden costs

The fear of hidden costs may send would-be buyers running, but it’s not necessarily a worthwhile concern.

"A lot of the costs involved are typical for any real estate purchase—things like inspections, appraisals, transfer fees, etc.,” says Dempsey.

Yes, repairs or liens on a foreclosure can prove costly, but a home inspection will reveal any potential problems during escrow (this is where that inspection contingency comes in handy).

Also, the property deed can be researched on a foreclosed home. And, buying a HUD home or REO (or real estate–owned property) means the Department of Housing and Urban Development is required to clear the title of liens before it resells the home. Lenders will usually clear them, too, but buyers should make sure of that before they purchase.

“Generally speaking, there are not any more hidden expenses in purchasing a foreclosed home than there would be in a traditional sale,” says Gassett.

Myth 6: Foreclosures lose value faster than regular homes

Foreclosed homes actually tend to rise quickly in value. With any home, there’s no guarantee it will deliver increases, but buying a foreclosure sold below market value can provide instant equity. And any extra work done to the home can only increase the value.

“There are a variety of factors that influence home values, including economic conditions, local market conditions, and the overall condition of the property,” says Andrew Leff, senior vice president and head of strategic alliance programs at Wells Fargo in New York City.

Myth 7: Buying a foreclosure is risky

Let’s be honest. Any real estate purchase comes with risk. Gassett says the only scenario where there’s some extreme risk is when buying at auction, since you are buying the property as is. Buyers are not able to conduct a professional home inspection and often not even able to see the inside of the property. Plus, they will be inheriting whatever came with the home.

“For example, if there is a lien on the property, you could become responsible for it. When buying a home at auction, it is essential to do a title search first,” says Gassett.

Leff says buyers should be informed before entering into any type of real estate transaction. This means aligning themselves with resources that can help them navigate the purchase and financing process with confidence.

“A knowledgeable real estate agent and lender can help ensure that a buyer is making an educated decision so that the property and any resulting financing is the right fit for them,” says Leff.

Contact The McLeod Group Network for all your real estate needs! 971.208.5093 or [email protected].

By: Realtor.com, Anayat Durrani

Do You Get Your Earnest Money Back at Closing?

by Amy McLeod Group


Do you get your earnest money back at closing? If you're buying a house and planning to finance the purchase with the help of a mortgage, the question is bound to come up. The short answer is: You don't usually get your earnest money back at closing.

But hold on! Sometimes earnest money is returned at closing. What? Read on to find out what happens to your earnest money at closing.

What is earnest money, anyway?

So you've heard the term "earnest money" thrown around during the purchase process, and you're not quite sure what it means? Sometimes called "good-faith money" or a deposit, earnest money is a sum that home buyers put down when they make their offer on a house, to show they're committed to the purchase.

Earnest money (typically about 1% to 2% of the amount you plan to pay for the house) is put down by a buyer within five days of an offer being accepted by a seller. The money is then deposited into an account by an escrow agent.

Maybe you've heard it called "going into escrow"? That's because the escrow officer will set the earnest money aside while you continue the steps of buying a house, such as getting an appraisal so your bank will approve the purchase or sending a home inspector to the house to ensure there are no reasons you should back out of the deal. They can't touch that money during that time, and neither can the seller!

Do I get my earnest money back at closing?

If the appraisal comes through at a price that makes your lender happy, and the home inspection doesn't turn up anything alarming, eventually you'll get to closing—the end of the home-buying process—when you pay the seller and walk away with keys to your new castle.

This is when your escrow agent is going to pull your earnest money out of escrow. What happens with it next is typically dependent on the sort of earnest money that was put down, says Keith Lucas, broker and owner of the Charleston Real Estate Company, in Charleston, SC.

If you put down cash (which is nearly always the case), the earnest money is traditionally applied to closing costs or toward your down payment—the portion of the sale price that buyers pay on their own in conjunction with a mortgage.

But there are times when you might get the earnest money back. Maybe you have secured a loan with no down payment required, such as a Veterans Affairs loan or a mortgage backed by the U.S. Department of Agriculture. If that happens, the earnest money will be applied to closing costs instead of down payment. If there's money left over after the closing costs are paid, you will get the surplus back.

But sometimes the earnest money isn't actually money at all.

Wait a second. How can there be money that isn't, well, "money"? It turns out, sometimes that good-faith deposit can just be something of "good and considerable value."

"There are cases where a watch, car, boat, real estate, or precious metals have been used as an earnest deposit," Lucas says. "In that case it might be returned to the buyer or liquidated by the seller and put toward the purchase price at closing."

Bottom line: Even if you don't get your earnest money back at closing, don't worry! That big chunk of change you put down at the beginning of the home-buying process hasn't disappeared. It's been used to help pay for your brand-new house.

Starting the search for your new homeContact The McLeod Group Network for all your real estate needs! 971.208.5093 or [email protected].

By: Realtor.com, Jeanne Sager

2 Myths Holding Back Home Buyers

by Amy McLeod Group


Freddie Mac
 recently released a report entitled, “Perceptions of Down Payment Consumer Research.” Their research revealed that,

“For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment…

…Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the funds needed to qualify for a home loan. According to the same report:

22% of renters and 31% of homeowners believe lenders require 20% or more of a home’s sale price as a down payment for a typical mortgage today. And,

“If a 20% down payment was required, 70% of those who were planning to buy a home in the next three years said it would delay them from purchasing and nearly 30% indicated they would never be able to afford a home.”  

While many believe at least 20% down is necessary to buy the home of their dreams, they do not realize programs are available which permit as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined!

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Many either don’t know or are misinformed concerning the FICO® score necessary to qualify, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As indicated in the chart above, 52.4% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

Starting the search for your new home? Let the professionals with The McLeod Group Network help you find your dream home! 971.208.5093 or [email protected].

By: KCM Crew

The Feeling You Get from Owning Your Home

by Amy McLeod Group


We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful and compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, that feeling of safety and security you gain from owning your own home is simultaneously one of the greatest and most difficult to describe.

Frederick Peters, a contributor for Forbesrecently wrote about that feeling, and the pride that comes from owning your own home.

“As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize the space; it touches a chord even more fundamental than that.

Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiate not only pride but also a sense of arrival, a sense of being where they belong. It cannot be duplicated by owning a 99-year lease.”

Bottom Line

Owning a home brings a sense of accomplishment and confidence that cannot be achieved through renting. If you are debating renewing your lease, let’s get together before you do to answer any questions you may have about what your next steps should be, and what is required in today’s market!

Starting the search for your new home? Let the professionals with The McLeod Group Network help you find your dream home! 971.208.5093 or [email protected]

By: KCM Crew


Buying a home is a complicated process that involves sharing sensitive information with multiple people. And the latest major data leak highlights the risk consumers take on when they share that information.

Roughly 885 million mortgage-related files stretching back over a decade were exposed by First American Financial Corp., one of the country’s largest title insurance companies, thanks to a flaw in the design of a website that stored the files.

The files, which could accessed if someone had the proper URL, contained a wide array of personal information for parties to thousands of real-estate transactions, including bank-account numbers and statements, mortgage and tax records, Social Security Numbers, wire-transaction receipts, and driver’s license images.

The data leak was first reported by the watchdog website KrebsonSecurity.com.

First American confirmed that the information was leaked and said it rectified the situation once it was notified of it. The company also said it has hired an outside forensic firm to investigate whether any customer information was compromised due to the security flaw.

So far it does not appear that there was any large-scale access to the information, according to the company, but if that changes First American said it will notify consumers and provide credit-monitoring services.

“We deeply regret the concern this defect has caused,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “We are thoroughly investigating this matter and are fully committed to protecting the security, privacy and confidentiality of the information entrusted to us by our customers.”

This is not the first time this year that a data breach involved mortgage documents. In January, news site TechCrunch revealed that some 54,000 mortgage borrowers had their financial data exposed by Ascension, a financial data firm that converts paper documents into computer-readable files. Among those affected included past customers of Wells Fargo, Citigroup,  and Capital One.

While major data breaches like these attract headlines, many consumers nationwide have fallen victim to much simpler, email-based scams, which involved hacked or spoofed email accounts, losing thousands of dollars in the process.

In some cases, scammers will pose as real-estate agents requesting money for a down payment. In other instances, they will dupe unsuspecting consumers into handing over the money for closing from their escrow account by pretending to be a title insurance firm or hacking into their systems.

“Business email compromise can happen to anyone involved in the transaction,” said Katie Johnson, general counsel and chief member experience officer at the National Association of Realtors.

Here are steps that consumers can — and should — take when buying a home to ensure their personal information and money are protected.

Make sure your cyber house is in order. A lot of sensitive information will be shared throughout the process of buying a home and getting a mortgage. Now is a good time to ensure that all of that information is well-protected, Johnson said. This includes changing passwords to make them more secure and enabling two-factor authentication whenever possible. And since you can’t freeze your credit during the mortgage process, it’s not a bad idea to sign up for credit-monitoring or identity-theft protection services.

Ask every company how they will protect your data. Not all companies have the same policies when it comes to cybersecurity — while banks may be subject to stringent federal oversight, the same is not true of smaller mom-and-pop real-estate agencies or title insurers. Before going with a certain company, consumers should find out how they protect information — for instance, do they store documents in encrypted databases?

Avoid sending documents or other sensitive information over email. Many wire-fraud schemes involve hacked or spoofed email addresses. If a real-estate agent, lender or insurer asks for sensitive information over email, consumers should call them to double-check the email is really from them, Johnson said. If possible, consumers should opt to deliver information in person, verbally over the phone or through a secure online portal rather than over email.

Starting the search for your new home? Let the professionals with The McLeod Group Network help you find your dream home! 971.208.5093 or [email protected]

By: Realtor.com, Jacob Passy

4 Good Reasons to Not Get a Mortgage Online

by Amy McLeod Group


Applying for a mortgage these days can be accomplished entirely online—no need to schlep to a bank and suffer hand cramps filling out paperwork.

Instead, you can punch some basic info into an online mortgage site, and up pops a bunch of loan choices. An industry renowned for being slow and cumbersome is now wooing customers with the promise of ease, speed, and transparency. Rocket Mortgage, Quicken Loan's online platform, for example, promises qualified customers approval in as little as eight minutes.

 
 
 

But taking out a six-figure loan is one of the most complicated and substantial financial transactions most people will ever make. Does it really make sense to handle it by pushing a few buttons on your smartphone?

Maybe for those with a typical 9-to-5 job and good credit.

"If you are a salaried employee with no overtime, no bonus—no funky income, if you will—just a plain-vanilla borrower, then sometimes the online mortgage does work," says Brian Minkow, a divisional vice president and loan originator at Homebridge Financial Services, a non-bank lender. "You know: You have a five-year work history, you're putting 20% down, and have an 800 FICO score."

But then there's everybody else.

Here are some of the many reasons why those borrowers might consider taking more time with the process, including consulting with an experienced loan officer or mortgage broker.

1. You want to shop around for the best loan

First and foremost, it's always in a borrower's best interest to comparison shop on rates and fees, says Keith Gumbinger, a vice president at HSH.com, a mortgage information website. Speed and convenience alone do not always translate into a better price for borrowers.

"You should invest some time in it, do your research," Gumbinger says. "Also, do your diligence on your credit. And think about how long you're going to be in your home." The reason? The length of time you estimate you are likely to be staying in the home can be a factor in whether you apply for a fixed or adjustable rate loan.

Gaining an understanding of different loan programs is a smarter approach than just "going online and filling out things," says Minkow. "A lot of people really don't know if they're getting the right loan program, the right interest rate, the right down payment."

The research process may ultimately lead you straight to the speedy online mortgage site as the best option anyway. But, Gumbinger says, "You won't know that unless you go out and take a look around."

2. You're a first-time home buyer

Researching all your options is especially important if you've never purchased a home before, advises David Weliver, founder of MoneyUnder30.com, a personal finance advice site. First-time buyers should always talk through important details like rates, points, and closing costs with an expert. "After you've been through the process once, you have a better idea of what to expect and what information you'll need to provide to make the process go smoothly," he says.

Even those who have borrowed before may want to consult with someone if there is anything about their circumstances that might make qualifying more difficult. For example, Weliver says, "a real person could be a helpful advocate" for borrowers who are buying a second home or rental property, have spotty credit, or have inconsistent income.

3. You're self-employed

About 15 million Americans are classified as self-employed, according to the Pew Research Center. While salaried workers generally only have to show the lender their W-2 tax forms to prove their income, self-employed workers "should expect that they will have to provide the lender with more income documentation, such as tax returns from the last few years," Weliver says.

The fact is, some online lenders are more strict about documentation requirements than federal guidelines require, because they want to reduce their risk, says Minkow. That can make qualifying even tougher for a borrower who is already perceived as a higher risk—for example, applicants who have only been in their current job for a few months, or those who want to include overtime pay as evidence of their buying power. The lender will want to see proof that the overtime pay is consistent. "Certain guidelines say you have to show you have it for 12 months or 24 months—it depends on the loan," Minkow says.

4. You want some extra handholding

Working with someone one on one may also help prevent last-minute problems when it comes time to buy that house. "I can't tell you how many clients who have come to me after they'd gone online and gotten a pre-approval from a lender," Minkow says. "Then they go to purchase a house, and halfway through the transaction, the online lender says all of a sudden, 'You can't get approved.' The client freaks out. And that's when they get ahold of someone like myself."

Finally, there is the matter of personal preference. Not everyone likes the impersonal approach. Before applying for a loan, borrowers might consider whether they are the kind of person who appreciates a lot of help and attention in other shopping experiences. "If you like a hands-on environment, like a Macy's, you're a different kind of shopper than someone who enjoys going to a warehouse club," says Gumbinger. "Your expectations going in will influence how satisfied you are with the process."

Let's get together to discuss your current situation and how The McLeod Group Network can help! 971.208.5093 or [email protected]

By and Photo credit: Realtor.com, Lisa Prevost


What's the most common home-buying mistake? If you're reading this from a cramped living room, or while lying in your itty-bitty "master" bedroom, you probably know the answer: buying a too-small home.

The mistake is so common that I—a seasoned real estate writer!—made it, too. And plenty more otherwise-smart homeowners are realizing their starter home might be their forever home and wishing they had sprung for a few more bedrooms.

"All too often, this mistake is made by first-time home buyers upgrading from an apartment rental," says Mark Cianciulli, co-founder of The CREM Group.

But soon enough, the buyers realize their mistake—just like we did. Our cozy two-bedroom suited us fine until we began floating the idea of having kids. Panic quickly gripped us: As two work-from-home adults with three animals and regular visitors (thanks, out-of-state fam!), we didn't even know where we'd put them.

Suddenly, calling our home "cozy" seemed like a euphemism for something far more sinister.

Fellow small-home buyers, don't give up hope: Making your adorable abode work long-term isn't an impossible task. Here's how to make your cramped space function for you.

1. Add on to your home

If you adore the neighborhood, adding space to your existing home can turn a cramped cottage into a lifelong home. Check local restrictions first, then consider whether you could double your square footage with a second story, or transform an unused part of the backyard into a master suite.

This is the easiest way to make a tiny house suit your family's growing needs. But keep your budget in mind.

"This can be an expensive undertaking," Cianciulli says. "You're essentially building a new portion to the home."

Costs vary dramatically depending on your location. Expect to spend $80 to $200 per square foot to expand your home's footprint, and $100 to $300 per square foot to add a second story.

2. Inside, think vertical

You're not interested in selling, and you definitely don't have the budget to add on. No sweat! Think up. Find a talented carpenter and get yourself some serious built-ins—complete with hidden helpers.

"It's relatively easy to complement built-ins with clever, space-saving furniture that not only looks great, but serves many purposes," says Andrew Hillman, a broker at Hillman Real Estate.

Create gorgeous workstations by integrating a desk that folds into a bookshelf, or upgrade your laundry space with pull-out drying racks. Use every inch of real estate to make your home feel like a mansion.

3. Reconfigure the layout

Ready to knock down some walls Chip "Demo Day!" Gaines–style? Your floor plan will thank you.

"The best and most economical solution can be reconfiguring the existing layout of the home," Cianciulli says.

Perhaps your home would feel larger if you transformed your rarely used dining room into a master bedroom. Or maybe the living room is awkwardly placed, interrupting the home's flow.

"Even if each day has you frantically searching for ways to streamline and simplify, each home has the potential to be efficient with the right design," says Larry Greene, the president of design and remodeling company Case Indy.

But this isn't a DIY job: Hire a professional architect or remodeling company to creatively reconfigure your space. Consider going with a local company that has worked with similar homes.

"They'll be able to show you how remodelers have dealt with similar design problems and provide solutions that are specific to the challenges of your local area," Greene says.

4. Swap out your furniture

Maybe you used to have an oversize living room—so you bought a huge sectional. Now it's crammed into your current home's much-smaller TV room, making the entire floor plan feel cramped.

It's time to ditch old furniture that doesn't suit your space and integrate sleek, smaller pieces.

A few years ago, Hillman helped a buyer purchase a small city apartment. Then came buyer's remorse. Hillman stepped in to help her redesign, choosing minimalist, transformative furniture.

Soon, "she was happy about her hip, trendy, spacious small home," he says. "She's now addicted to optimizing and organizing her home with creative furniture concepts."

In addition to ditching bulky items, choose furniture that has storage or does double duty, like this industrial pop-up coffee table ($599) from West Elm.

5. Expand your outdoor space

A versatile outdoor living area "immediately expands your living room outward, making it a fun place to entertain and relax with guests," Greene says.

If you're located in a warm climate—or even one that enjoys a decently long summer—create unique, cozy dining and entertaining spaces outside. Need inspiration? Lifestyle blog A Beautiful Mess' comfortable outdoor living room is serious backyard goals.

If you live in a cold climate, you don't have to sacrifice outdoor living, either. Transform a rarely used porch into a sunroom and enjoy natural light all year long.

6. Sell your home

OK, fine: This isn't really salvaging the situation. But any discussion including the words "I hate my house" deserves at least a quick peek at this last-ditch option. If you're suddenly expecting triplets, a two-bedroom bungalow very well might strain your sanity.

If you're truly down in the dumps, consult with your real estate agent. This is "the obvious solution," Cianciulli says, but also a major commitment.

Consider exhausting all the options above before you settle on selling, and prepare to make difficult sacrifices. If you picked your too-small space because it fit your budget and you loved the surrounding neighborhood, don't expect to find a larger home nearby unless you're willing to pony up significantly more cash.

Contact The McLeod Group Network to start the search for your new home! 971.208.5093 or [email protected]

By: Realtor.com, Jamie Wiebe


Offering over asking price on a house often makes buyers wince. But let's face it, paying above list price is just a reality in certain circumstances—at least if you really have any hopes of getting that house!

So when exactly should you aim high and offer over asking? Check for these signs below that suggest this pricey move is essential.

1. It’s a seller’s market

seller’s market is when there are more home buyers than sellers—meaning demand outpaces the supply of homes for sale. As a result, home buyers in a seller's market face a tough challenge: Due to increased competition, they often have to act fast and bid high to woo sellers into accepting their offer, says Seth Lejeune, a real estate agent with Berkshire Hathaway in Malvern, PA.

Looking at a couple of key factors can help you determine whether you’re in a seller’s market, Lejeune says, starting with the average days on market.

A good rule of thumb: “If houses are selling in your neighborhood in less than 10 days, it’s a strong seller’s market,” Lejeune says. You can find what the average days on market is in your city using realtor.com's Local Market Trends tool.

You’ll also want to evaluate what homes are selling for compared with their list price. In a strong seller's market, Lejeune says, the final sales price is typically at least 10% higher than the asking price. (Your real estate agent can pull this data for you.)

2. You know, for a fact, you're going up against other offers

Bidding wars can erupt, even in a buyer’s market—sometimes all it takes is an aggressively priced home, which is why it’s important to find out whether there are other bids on a property before you make an offer. So go ahead and ask (or have your real estate agent ask on you behalf); generally it's in their interests to say if other offers are on the table since it might spur you to act fast.

3. The house is blatantly underpriced

Some sellers decide to list their home well below the property’s fair market value in an effort to spark a bidding war. In that instance, it may make sense for you to offer over asking price in order for your bid to outshine other offers.

To figure out if a house is underpriced, you and your agent should assess recently sold homes in the area (also known as comparables, or “comps”). This will give you a baseline that you can use to calculate a home’s true market value, which you can use as a benchmark when pricing your offer.

4. You’re competing with cash buyers

Home sellers swoon over all-cash offers for one simple reason: It means there's no doubt that you've got the coin to close the deal. Consequently, all-cash home buyers have a distinct advantage over those who need a mortgage, because there's no guarantee that lenders will fork over the money.

Cash offers made up 29% of single-family home and condo sales in 2017, according to ATTOM Data Solutions. So, if you know you’re competing against one, making a bid that’s over a home’s list price could persuade the seller to accept your offer.

5. The seller isn’t motivated

Some home sellers have to unload their house as quickly as possible, say, due to an imminent relocation for a new job or a need to raise cash to purchase their next home. Other sellers, though, aren’t quite as motivated—and they may just be listing their house to “test the market” and see what sized offer they can get, which is why it’s important to ascertain what the seller’s motivations are, says Diana George, founder of Vault Realty Group, in Oakland, CA.

“I always call the real estate listing agent and speak to them directly to get a better understanding as to what's driving the seller,” George says.

If you find yourself dealing with an unmotivated seller, offering above the home’s list price could make the seller bite. The caveat, of course, is you don’t want to offer so much above asking price to the point where you significantly overpay for the home.

6. You absolutely adore the home—and can’t risk losing it

Sometimes buyers simply fall head over feels for a house, says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis. If you find a house and feel your heart would be broken if you lose it, offering over asking price can help you lock down the property, Dossman says.

7. You can afford to pay over asking price

One word of warning: If you’re obtaining a mortgage, be aware that if you pay way over what a home is really worth, the home still has to pass appraisal in order for your lender to provide you with the loan that you need. Any difference between a home’s appraised value and your contract price would have to come out of your pocket. As always, you’ll want to rely on your real estate agent to help you craft a winning offer you can afford.

Contact The McLeod Group Network to start the search for your new home! 971.208.5093 or [email protected]

By: Realtor.com, Daniel Bortz

With Inventory Low: Will Your Dream Home Need Some TLC?

by Amy McLeod Group


According to a new survey from Move.com, the wave of first-time homebuyers hitting the market this summer has resulted in an interesting statistic. Nearly 60% of buyers searching for a home this spring are willing to consider buying a fixer-upper, with 95% believing that the projects needed will increase their new home’s value!

Realtor.com’s Chief Economist, Danielle Hale, pointed to low-inventory at the entry-level price range for the increase in willingness to renovate.

“The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating.

Replete with inspiration at their fingertips – like Pinterest, Instagram, and various home renovation TV shows – some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget.”

Just over half of all respondents who said they would be willing to buy a home in need of some TLC, would also spend more $20,000 to make the home fit their needs.

The most common ‘expected’ renovation is a kitchen remodel which can run anywhere from $22,000 for a minor remodel to $66,000 for a major remodel.

This isn’t a new trend by any means. According to the Joint Center for Housing Studies at Harvard University,home improvement project spending reached a new high in 2018.

“Americans spent $336.9 billion on remodeling projects, up 7.4% from the $313.6 billion a year earlier.”

Home renovation television shows have given many buyers hope that they could renovate a home they can afford into their dream home!

Bottom Line

If you are one of the many Americans considering buying a home this spring, let’s get together to help you find a house with the potential to be your dream home! 971.208.5093 or [email protected] 

By: KCM Crew

'How's the Housing Market Right Now?' Answers Ahead

by Amy McLeod Group


Yeehaw, the latest home-buying season is now in full swing! And if you're hoping to buy a house soon, listen up: The real estate market changes on a dime, so if you want to succeed in today's environment, you'll want to take its temperature and act accordingly.

And buyers are in luck: By and large, this year's home-buying season is a far better bet for buyers than in the past. So if you're craving some intel on what to expect—and how to use this to your advantage—here's the info you need to confidently buy a house right now.

The strong seller's market is on the wane

In the recent past, you weren’t altogether wrong if it seemed like buyers were offering their firstborn child in order for their offer to get a fair look—and often for houses that you would have snubbed in less-sizzling markets. But now it’s OK to breathe—and even sleep on it.

As inventory begins to rise, the strong seller's market that characterized last season's home-buying season is fading fast. In fact, many say we’re back into what can be considered more of a buyer’s market, where the seller doesn’t hold all the cards, says Brad Cox, a real estate agent at the Vesta Group of Long & Foster Real Estate, in Lutherville, MD. That means you’re going to have some wiggle room to negotiate.

“While you still want to prepare a competitive offer, your time window is likely to expand—meaning you can think it over before rushing in with an offer," Cox says. "And you aren’t going to have to include some of the riskier elements, such as waiving financing or inspection contingencies, that were a hallmark of past years."

But what you face still varies by the Big L

You’ve heard the adage "location, location, location," but it will definitely be a huge factor in 2019's home-buying season, Cox says. Because while bidding wars are out in most markets, real estate is still very neighborhood-driven.

“While you might see a softening market in some areas, others may still be in a strong seller’s market," he explains.

He says the key metric to look for is “days on market,” which means how long a property has been waiting to sell. If you’re hoping to buy in an area where days on market are staying low, you’ll have to be prepared to act a little faster. But in areas where this number has started creeping up, you might be able to look around a little more.

For an accurate pricing picture, look only at the latest comps

Both buyers and sellers rely on comparables, aka comps, when determining a fair price. But that can get tricky as the market starts to turn, because sellers might be remembering a months-ago heyday and pricing accordingly.

“Buyers should only consider the most recent comps, which means the last three months, because that is the most accurate reflection of where the market is,” says agent Jed Lewin of Triplemint in New York City.

But don’t forget that it’s still very easy to insult a seller

Yes, the house might have been on the market a few more days than it would have been last year and the comps might be sliding, but that doesn’t mean you can expect that anything goes when you’re buying a home in 2019.

“I am seeing far more buyers starting to make very aggressive lowball offers in an attempt to test sellers’ appetites, even if they’re totally serious about a given property,” says Lucas Callejas, an agent at Triplemint. But in places where the market is still warm, that can turn sellers off—and turn their attention to the next offer that comes along instead of yours.

You may be able to get a better interest rate than you think

One of the big stories of 2018 was rising mortgage interest rates—but while they ticked up precipitously by the end of last year, they’ve fallen a bit again, so you could be in a good spot, says Beatrice de Jong, director of residential sales at Open Listings, in Los Angeles.

Bottom line: Now is the time to lock in a great rate, since today’s appealing numbers might not last long.

“Interest rates are predicted to rise in 2019 and 2020, so buyers would be wise to shop for and lock in their interest rate as soon as possible,” de Jong says.

Increasing rates can make a huge difference, she points out, noting that the difference between a 5% interest rate and 5.5% interest rate is $93 a month on a $300,000 mortgage loan, which can easily derail a buyer’s budget.

So even if you are trying to improve your credit or save a few more bucks for the down payment, you might be better off just wading in and locking in the rate, says Jason Lerner, vice president and area development manager for George Mason Mortgage, in Lutherville, MD.

“You might work for three months to burnish your credit, and then find that the rate has risen so much that it doesn’t make a difference,” he adds.

Your credit score might be better than you thought

Two recent developments in credit scoring may help would-be buyers: One is the new UltraFICO, which takes into account how you manage your checking, savings, and money market accounts, in addition to your credit cards and consumer loans. And the second is Experian Boost, which adds your utility and cellphone bills into the mix.

But even if you have a stellar record in all those areas, there’s no guarantee these will be your golden ticket, cautions Lerner. That’s because it’s still early days for these initiatives: UltraFICO is currently available only in a pilot phase in certain areas, and Experian has yet to launch the booster product, although it is taking sign-ups. But as these products become more widely available throughout the year, home buyers may reap the benefits.

“A difference in 10 or 20 points to your credit score can make a difference between approval or denial—and can lower your rate, which can save thousands over the life of a mortgage,” Lerner points out. He also predicts that requirements will loosen a bit in 2019: “You might not think your credit is good enough for a mortgage, but it’s worth talking to a lender to see if there is a program out there that can help.”

Contact The McLeod Group Network to find your new home! 971.208.5093 or [email protected] 

By: Realtor.com, Cathie Ericson

Displaying blog entries 1-10 of 79

Share This Page

Contact Information

Photo of The McLeod Group Network Real Estate
The McLeod Group Network
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.