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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

Can Home Buyers Contact a Listing Agent for a Home Showing?

by Amy McLeod Group


It's bound to happen: You're browsing real estate listings and one day spot a house you'd love to see in person. Should you contact the listing agent directly for a home showing?

After all, most real estate listings (unless they're for sale by owner) mention a listing agent, along with an invitation to contact the agent if you're interested in the property.

If you're already working with a buyer's agent, your first move should be to contact this pro—after all, she's representing you and won't appreciate your doing an end run around her. But if you haven't yet partnered with a buyer's agent, what then?

Here's how to navigate this stage of the home-buying process.

Can buyers contact a listing agent directly?

Technically—yes. The only people who may frown upon contacting a listing agent are buyer's agents, who make their commissions based on representing buyers. But there is no law or rule saying a buyer cannot contact a listing agent.

If you're not actively looking to buy and are just curious about the house, simply be clear about that with the listing agent. Say you're in the early stages of the home-buying process and haven't yet employed the services of a buyer's agent. Ask when the listing agent will be in the neighborhood and would be able to show you the property, says Jane Jensen with Century 21 New Millennium in McLean, VA.

Do buyers need to sign an agreement to see a property?

Touring a property doesn't require signing any documentation. If a listing agent does ask you to sign something, make sure you thoroughly read it. Most likely it is a disclosure about agency, which is required by some local laws. Agency refers to whom the agent represents—in this case the seller—and expectations you should have of the agent's professional responsibilities in regard to showing a property.

However, some agents may be asking you to sign an exclusivity agreement saying they represent you—for this particular property, or all properties you might see in the future. This is rare but possible, so you should make sure you're clear on what you're signing before you move forward.

Do buyers need to find their own agent to see a property?

Checking out a home doesn't require representation, says Shawn Breyer, owner of Breyer Home Buyers, in Atlanta. The listing agent is usually present at the property simply for the security of the homeowner. Think of it this way: Viewing the property individually is the same as attending an open house. And you don't need a buyer's agent to attend open houses.

When do buyers need their own agent?

As a buyer, the option to be represented by an agent is yours. However, if you are actively looking for a home, consider getting a buyer's agent. The listing agent represents the best interest of the seller, says Michael Chadwick, a real estate agent with Citi Habitats in NYC. While a buyer's agent represents the best interest of, yep, the buyer.

In most markets, the seller pays the entire commission fee (usually about 5% or 6% of the sale price of the home)—which includes both the seller's and buyer's agents' fees. So by retaining an agent, you'll have a seasoned professional in your corner who won't cost you a dime.

"But not having an agent could leave you without invaluable help about negotiating, say, inspections that uncover issues," says Larry Simons, a real estate professional with Century 21 Maselle & Associates in Brandon, MS.

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

By: Realtor.com, Margaret Heidenry

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


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


Conventional wisdom dictates that one of the more successful tactics out there to convince a home seller to accept your offer is get personal: Include some sweet and heartfelt information to them in a note, expressing why you're just dying to buy the house.

“A personal letter from a buyer can make an offer shine,” says Nancy Newquist-Nolan, a real estate agent with Berkshire Hathaway in Santa Barbara, CA.

 
 
 

However, attaching a so-called “love letter” to your offer also gives you the opportunity to stick your foot in your mouth, warns Bryan Zuetel, a real estate attorney and managing broker of Esquire Real Estate in Irvine, CA. Say the wrong thing, and it could turn off or even offend the seller so much that they don't even want your money.

Trust me: I’ve been a real estate agent for the past six years, and I’ve read dozens of offer letters ... and some aren’t pretty. At all.

Don’t want to ruffle the sellers' feathers? Here are six phrases never to include in an offer letter.

'I can see our family celebrating Christmas here.'

Sadly, some view other people negatively if they do not share their religious views. And although it’s illegal under the Federal Fair Housing Act for a home seller to discriminate based on religion—or on race, color, national origin, sex, family status, or disability—a claim based on what's in an offer letter can be difficult to prove in court, says Craig Blackmon, a broker and real estate attorney in Seattle. Consequently, Blackmon recommends that home buyers not reveal their religion in an offer letter—plain and simple.

'We're not nuts about your shag carpet, but we'll just tear that out.'

Here’s a good rule to follow throughout a real estate transaction: Don’t insult any sellers you may be dealing with, or their taste! Discussing changes you’d want to make to the house can be offensive. Put yourself in the seller’s shoes. Would you want a buyer criticizing your taste in home decor? No way!

Andrea Gordon, a real estate agent with Red Oak Realty in Oakland, CA, offered one experience as a cautionary tale to home buyers: "In one case, the buyer went on and on about the huge remodel he would do when he owned the house. But this was a slap in the face to my sellers, who had spent a considerable amount of money in the past five years renovating the property."

Flattery can go a long way. So, tell the sellers how great their taste in color is, how much you'd love to have their lifestyle, or what an incredible art collection they have.

'We would do anything to get this house.'

Don’t tip your hand too much—say, by hinting that you’re desperate to buy the home. Doing so can only hurt your negotiating power should the seller come back with a counteroffer.

'Our lease is up soon, so we really need to close quickly.'

This kind of statement can weaken an offer if the sellers are looking for a longer closing period—or just realize they have you over a barrel, and can negotiate accordingly.

Moreover, it’s important for your real estate agent to communicate with the listing agent and find out what the sellers want, and to learn their backstory. How long have they lived in the house? How many children did the sellers raise in the home? Having this kind of info can help you craft a compelling offer letter that touches their soft spots.

'Your home’s fenced-in backyard will be a perfect place for my dog to run around.'

You may love pets, but a seller may not feel the same way. In particular, mentioning your dog’s breed could be risky. For example, let's say you own a pit bull. Considering the stigma surrounding the breed, some people are afraid of these canines—and, even though the sellers will be moving, they may be concerned about their neighbors’ safety.

On the other hand, if you know that the sellers love dogs, mentioning yours in an offer letter can help you find common ground, says Mindy Jensen, a real estate agent in Longmont, CO.

'Although my offer has a lot of contingencies, I know we can make this deal work.'

This might sound like a no-brainer, but some home buyers still make the mistake of drawing attention to negative aspects of their offer. On one occasion, I was selling a house, and we received an offer letter that said the buyer wasn’t willing to pay full price for the home, but was willing to pay in cash. An all-cash offer is great, but why call any attention to the fact that the seller's asking price won't be met? Ultimately, the seller decided to accept another buyer’s offer instead.

Bottom line? Writing a personal offer letter to a seller can help seal the deal, but what you don’t say in an offer letter is just as important as what you do.

Contact The McLeod Group Network for all your Real Estate needs! 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

Your Tax Refund Is The Key To Homeownership!

by Amy McLeod Group


According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $3,143 this year when filing their taxes. This is down slightly from the average refund of $3,436 last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals. For anyone looking to buy a home in 2019, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state.

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%. Veterans Affairs Loans allow many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

The darker the blue, the closer your tax refund gets you to homeownership! For those in Oklahoma looking to purchase their first homes, their tax refund could potentially get them 85% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

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

By: KCM Crew

6 Things You'll Love—and Hate—About Buying a Home This Spring

by Amy McLeod Group


Welcome to the best—and worst—time to buy a home: spring! Yes, it's peak home-buying season. However, it’s no bed of roses.

Knowing what to expect is half the battle, and can help you use these highs and lows to your advantage!

So consider this an essential prep course. Ready to dive into the best of times and the worst of times for home buying?

You’ll love: All the inventory

One of the best things about buying a house during the spring is that you have a lot more options to choose from.

“New listings tend to flood the market in April and May,” says Kimberly Sands, a real estate broker in Carolina Beach, NC. Just keep in mind that with so much inventory out there, you’ll want to make sure to stick to your search and price parameters to avoid getting overwhelmed.

You’ll hate: All the competition

Busier times mean more buyers and, thus, more competition—which explains why bidding wars are more common during the spring, says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis.

As a result, you have to act fast when the right listing pops up, says Seth Lejeune, a real estate agent with Berkshire Hathaway in Collegeville, PA. Signing up for instant alerts, so you can see homes as soon as they hit the market, can help you stay a step ahead.

That being said, don’t expect a computer to do all the work for you. In hot markets, listings may be scooped up before they are even posted online, which is why most housing experts suggest working with a real estate agent throughout the home-buying process.

You’ll love: All the open houses

More homes on the market mean more open houses for you to attend. That’s exciting news for buyers who relish ogling homes in person. Going to more open houses means you’ll get a better feel for the neighborhood you’re interested in, while also giving you the opportunity to size up the other home buyers you’re going up against.

But with so many open houses to hit, make sure to plot out on a map the ones you want to see, with the times they're open, in order to maximize your time.

You’ll hate: The time pressure

Great listings get snatched up quickly year-round, yet home buyers are under even more pressure when there's more competition among buyers. You have to be prepared to make an offer fast, since indecision could potentially cost you your dream home. That’s why it’s crucial to zero in on what type of home you’re looking to buy and what your price range is before you start seriously looking, Dossman says.

Moreover, you should get pre-approved for a mortgage before you start your home search. Plus, having a letter from a mortgage stating that you’ve been pre-approved for a loan will speak volumes to a home seller, says Linda Sanderfoot, a real estate agent at Coldwell Banker in Neenah, WI.

“Sellers want reassurance that you’ll be able to obtain a home loan,” says Sanderfoot, “otherwise the deal can fall through.”

You’ll love: Shopping in warmer weather

You can breathe a sigh of relief knowing that the season’s warmer weather makes for a more enjoyable house hunting experience. After all, who enjoys trudging through snow or suffering through cold weather to look at houses? No one! Also, clearer skies and warmer temps make for better moving conditions.

You’ll hate: Higher prices

Home buyers generally have more wiggle room to make lowball offers during the slower seasons, since there’s less competition. However, buyers have less negotiating power during the spring. Therefore, “be prepared to pay full list price for a house, assuming it’s been priced at fair market value,” says Lejeune.

Also, if possible, be prepared to offer a seller something that other buyers won’t, such as a longer closing period or a rent-back agreement so that the seller has extra days to move out. This is where having a great buyer’s agent comes in; a savvy agent will talk to a listing agent to find out what the seller is looking for—giving you the ability to make a more attractive bid.

The bottom line

Spring home-buying season has its pros and cons, but by preparing for them you’ll be in a much better position to clinch your dream home. And, if you don’t manage to buy a house this spring, summer is still a great time to buy a house, too.

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

By: Realtor.com, Daniel Bortz

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Contact Information

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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.