Pamela Bailey
RE/MAX On the Move | Insight | Advantage | 603-770-0369 | pebailey001@gmail.com


Posted by Pamela Bailey on 5/16/2018

When you find a home you love, you most likely will want to take the steps you can to buy it. When a home is already under contract, there’s actually a little-known strategy that can be used to help you have a chance at getting the property. 


When you make a backup offer, you’re doing all of the same things you’d do under normal circumstances. The only difference between a normal offer and a backup offer is that you’re not guaranteed to get the home. The first deal needs to fall through in order for you to have a shot.


Advantages To Backup Offers


The backup offer is a bit of a stretch, but it still does give you a little bit of a chance to get a home. When a backup offer is in place, the home won’t just go back on the market if something falls through. This is especially smart when it comes to lower inventory markets. When a home is re-listed, you’ll need to compete against other buyers. If a bidding war is initiated, the home’s price will keep going up. The backup offer being in place helps the seller to feel secure in the sale of their home one way or another. If for any reason the first buyer falls through, you’ll be able to swoop in and get the home yourself.


Timing Is Everything


Keep in mind that there’s a certain period of time before a deal needs to be closed on for a home. The original buyer will need to close the deal on the home in an average of 50 days. Knowing the time frame that you’ll need to wait around for a decision is helpful for you in your own search for a home.


You can also have your agent check in with the listing agent for the property on a frequent basis. This lets the agent ad seller know that you have a keen interest in the property in case there are any difficulties coming from the other side of the deal. 


If The First Deal Doesn’t Go Through


If the first deal on a home does fall through, you’re not the new owner of the home just yet. There’s always a possibility that the first buyers found some very difficult problems with the home during the inspection. These could be big issues like an issue with the roof or the foundation of the home. Be sure to include a home inspection contingency with your contract so that you can have your own inspection conducted. This way, you’ll know if there are any problems with the home and that you will be able to deal with them.


A backup offer can be a great tool to use in tight markets to help you get a home that you love. It’s always a good idea to proceed with caution in any home deal to make a sound financial decision.




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Posted by Pamela Bailey on 5/2/2018

Buying a house should be a fast, simple process. However, problems sometimes can arise that prevent a homebuyer from discovering his or her dream residence.

Ultimately, there are many factors to consider before you purchase a house to ensure you can avoid myriad homebuying hurdles, and these factors include:

1. Your Home Needs

No two houses are identical, and much in the same vein, no two homebuyers have the same definition of the perfect residence. As such, a homebuyer should consider his or her dream home demands prior to kicking off a home search.

Making a checklist of home "must-haves" and "wants" is paramount. With this checklist in hand, a homebuyer will be able to refine his or her home search and map out the property buying journey accordingly.

It may be helpful to consider your day-to-day activities as you evaluate where you want to live too.

For example, if you work in the city, you may want to find a house that is located near public transportation. Comparatively, if you have kids, you may want to consider houses that are located close to top schools.

2. Your Budget

You know that you want to buy a house. On the other hand, you still have no idea how much money is available to ensure you can make your homeownership dreams come true.

When it comes to buying a house, it pays to meet with banks and credit unions. With pre-approval for a mortgage, you'll know precisely how much you can spend on a house.

To get pre-approved for a mortgage, set up consultations with several potential lenders. Then, you can learn about all of your mortgage options and select a mortgage lender that matches or surpasses your expectations.

3. Your Homebuying Timeline

Are you looking to buy a home as soon as possible? Or, can you afford to take a wait-and-see approach throughout the homebuying journey?

Examine your homebuying timeline and plan ahead as much as possible. By doing so, you can boost your chances of finding a terrific house and minimize stress as you browse the real estate market.

Regardless of your homebuying timeline, it always helps to work with a real estate agent. This housing market professional can take the guesswork out of searching for a residence and ensure you can discover a stellar house at a budget-friendly price.

Typically, a real estate agent will keep you up to date about new residences as they become available. He or she also will provide honest, unbiased homebuying recommendations and respond to any homebuying concerns and questions.

Let's not forget about the support that a real estate agent can provide during homebuying negotiations, either.

A real estate agent is happy to negotiate with a home seller on your behalf. That way, he or she can help you secure a great house without having to worry about paying too much.

Streamline the process of acquiring your ideal residence. Consider the aforementioned factors, and you can keep things simple as you proceed along the homebuying journey.




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Posted by Pamela Bailey on 4/18/2018

Have you heard the term “earnest money” but really aren’t sure what it means? Once you have found the perfect home and are all set to make an offer, there’s one more step that you need to take. That’s to make a deposit on the home you want to buy. This is known as an “earnest money deposit.”  


The Purpose Of The Deposit


The deposit shows the seller that you’re serious about buying the home. It’s a measure that allows the seller to have some faith in you as a buyer that you’re truly moving forward with your decision; you’re ready as a buyer to make the financial commitment. This deposit allows the deal to begin on a solid basis without much question. 


Is The Deposit Required Legally To Buy A Home?


From a seller’s perspective, a deposit keeps a buyer from changing their mind. If there is a significant amount of money involved, the seller sees the deposit as a way to keep the buyer locked in. This makes it easier for sellers to accept an offer. 


How Much Is Expected For An Earnest Money Deposit?


These deposits don’t quite have a standard amount. The general rule is that they range from 1% of the home price up to 5%. The more expensive of a home that’s being purchased, the larger the earnest money deposit should be. In some cases, the seller may even ask for a certain amount of a deposit to ensure that buyers are serious. How much money you pay at once is often negotiable. You may be able to pay part of the money at one time and the other part at a later date.


New Construction Can Require Large Deposits


New construction homes can require large earnest money deposits- up to half of the purchase price of the home. This is because the construction costs need to be paid upfront and the bank wants proof that the units being constructed with loan money are being sold to buyers who can pay for the home. 


New construction homes are often customized as well. It would be detrimental to a developer to make special changes to a home only for a buyer to walk away. 


Getting The Deposit Refunded


As with everything in real estate, you’ll have a contract. If you don’t follow the terms of the contract, you risk losing your earnest money deposit. Two main reasons for buyers to walk away are a flopped home inspection or financing that falls through. Read your contracts carefully. Sellers sometimes state that deposits are nonrefundable after a certain number of days. 


You need to be sure that you are covered as a buyer in the purchase and sales agreement. If you back out of a home purchase without good reason like a contingency included in the agreement) you could be out of luck when it comes to getting your deposit back.    






Tags: Buying a home   finances  
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Posted by Pamela Bailey on 3/28/2018

A property deed is used to transfer the title of the property of a grantor (the seller) to a grantee (the buyer). For the deed to be active, certain conditions must be set in place. The property must have a complete and accurate description. The buyer and seller must also be clearly identified. This formulation is due to the fact that a deed is a signed legal document.


The deed has a few important requirements for it to be valid and legal. First, the deed must be in writing. Next, the grantor must have some sort of a legal capacity (represented by a lawyer) and the grantee must have the competent ability to receive the property grant. Finally, the deed must actually be accepted by the grantee. 


Although this process sounds complicated, it’s usually prepared ahead of time and done at the closing of a property transaction. Different states have different rules and procedures that allow for the transfer of ownership of property, so be sure to check on the specifics in your area.


Different Types Of Deeds


There are many different kinds of deeds. Deeds can be official or private. The type of deed that we are specifying here is known as “official” since the transaction is executed in agreement with legal proceedings. This is just one reason why every home buyer, no matter where you live, is important. Deeds are typically characterized by the type of warranty that they carry.


General Warranty Deeds 


These deeds actually offer the grantee the largest amount of protection. The grantor of this deed makes a series of promises that protect the grantee from prior claims and demands to the land. This document would state that the property is free of liens, unless specifically stated on the deed itself. This also protects the grantee (the buyer) from a defective title. This is the most desirable type of deed. 


Special Warranty Deeds


A special warranty deed defends the title of the home. The grantor certifies that they have received the title to the property and that nothing has happened while the title has been in their possession that would create a major defect on the property. This means that only defects that occurred on the property while the grantor owned it are valid. This provides less protection than a general warranty deed does. Many buyers will insist that they have a general warranty deed instead in order to feel protected in the property transaction.


Other Types Of Deeds To Be Aware Of


  • Quitclaim deed
  • Special purpose deeds
  • Executor’s deed
  • Administrator's deed
  • Sheriff’s deed
  • Tax deed
  • Deed of gift

 

As a homeowner, much of the legal jargon that’s involved in the transfer of title isn’t something that you need to study up on. The important thing to know is that the deed is the means of the transfer of title. The deed must also meet certain conditions for it to be legally binding. The type of deed that you have determines the type of protection that the deed provides. A qualified real estate attorney should be consulted regarding all legal matters in the home buying and selling process.




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Posted by Pamela Bailey on 12/20/2017

If you plan to attend an open house, it usually pays to be prepared. That way, you'll know exactly which questions to ask during an open house and can ensure that you can gain the insights that you need to determine whether a residence is right for you.

Now, let's take a look at three key questions to ask a listing agent during an open house.

1. Why is this home for sale?

Although a home listing provides plenty of information about a residence, it is unlikely to explain why a homeowner is selling his or her house. Thus, you should use an open house to find out exactly why a home is for sale.

In many instances, a listing agent will be honest and forthright about why a homeowner has decided to add his or her residence to the real estate market. Once you receive an answer to your query, you can better understand whether a house matches your expectations.

On the other hand, if a listing agent hesitates or shies away from your question, you should be skeptical. At this point, you should continue to dig for more information about a residence to learn about any potential flaws.

2. Are there any home problems that I need to know about?

An open house enables you to get an up-close look at a residence. Furthermore, the event allows you to find out about a residence's pros and cons from a listing agent.

Ask a listing agent about any home problems – you'll be glad you did. The listing agent should be able to provide you with plenty of insights into a home's condition, ensuring you can make an informed decision about whether to submit an offer.

A listing agent is likely to be honest with you about any problems with a house. By doing so, this agent will reduce the risk of a homebuyer later rescinding an offer after a home inspection.

3. Have there been any offers on the house?

It is important to find out if there is any competition for a house, especially if you discover your dream residence. Thus, during an open house, you should ask a listing agent if any offers have been submitted on a residence.

If a listing agent responds "Yes" to your query, you may want to act fast to submit a competitive offer on a house. Because if you wait too long to make an offer on your dream residence, you risk losing this house to a rival homebuyer.

Lastly, if you need help getting ready for an open house, you should collaborate with a real estate agent. This housing market professional can provide deep insights into a residence before you attend an open house. Therefore, a real estate agent will help you take the guesswork out of getting the most out of any open house, at any time.

Want to optimize the value of an open house? Ask the aforementioned questions, and you can get the information that you need to fully evaluate a residence.




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