3 Industry Secrets for Getting Top Dollar When Selling Your Home

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The market is on fire! Partly because of the time of year we are in and partly due to the dramatic shift in our marketplace. As of just a few months now, we are completely in a seller’s market where there are far fewer homes for sale than there are buyers. So how does a seller in this environment get top dollar on their property? It’s more than just time of year or general buyer trends; it’s a matter of actively, aggressively going after the best outcome. Here are three tried and true strategies that we use to get our sellers top dollar.

Price Your Property Effectively
I'm not suggesting you set a price lower than everyone else in the neighborhood to get it sold. But we are saying it’s critical to know and understand the market pulse in your area as it relates to today. The key word here is today. It’s no secret that one of the most prevalent methods used to determine market value is by evaluating comparable properties.

Appraisers and Realtors® in general, look at homes sold in the last 6 months to a year when considering values. However, when we are dealing with the drastic change that is our housing market today, it’s important to look at under contract values. This is what shows the truth of what buyers and sellers value in the market right now.

Follow the Laws of Supply and Demand
In any marketplace, whether real estate or otherwise, the basic principles of supply and demand play a huge a role in market activity. With real estate, we tend to see an upswing in activity beginning the spring months and it stays active until the fall when people slow down from their home search. Listings also follow closely with those trends.

When there is increased supply, demand goes down. Conversely, the fewer homes available for sale will dictate increased demand – a phenomenon we are experiencing these days. This translates to the spring and summer markets being better for sellers, with the expectation they will earn top dollar if the home is well priced.

Promote, Promote, Promote!
You can have any number of homes on the market but until and unless the word gets out, they will just sit there. Promotion is the key word and the way you promote your listing is also critical. In today’s fast paced, very NOW world – it is essential to cater to buyers’ needs. That means putting your property on social media, on every syndicated property home search site possible and advertising in other locally preferred ways.

Kick it up one more notch by working with a broker that has an extensive database of active buyers that are just waiting to be matched with the right property. Imagine – finding a buyer that is willing to pay over and above your asking price because your home is exactly what they’ve been looking for!
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The first step to getting top dollar on your home is to know and understand your local neighborhood’s buying and selling trends. Contact us today for an updated market analysis that’s catered to your locale. We’ll give you real time values so you can move forward with your listing with all the leverage you need to come out on top!

Six Ways Buyers Can Turn Up the Heat and Make an Offer Sellers Can’t Resist

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When you’re in the midst of a seller’s market there really is very little you can do but just watch the market, find the right home and jump on it! Because if you don’t, there’s a good chance someone else will beat you to it. But if you are making an offer, there are some ways you can make it one the sellers can’t refuse. Here are six key strategies to use as a buyer making an offer on a home in a very competitive seller’s market. 

Prove Your Ability to Pay
Gone are the days when you could present an offer on a home with the expectation that you would apply for a loan after it’s accepted. Even when we’re not in the midst of a seller’s market, sellers today expect to see proof of your financing or funds. They want to know that your offer is a viable one and having a preapproval from a lender gives them the peace of mind needed to proceed. Unlike being prequalified, preapprovals entail a credit pull and a look at your financial position, including things like debt-to-income ration, job history and more.

Make It Reasonable
As you may already know, an earnest deposit accompanies an offer. So as you decide the amount to put toward your earnest money deposit, be sure to be reasonable. Typically 1% of the purchase price, you can go up or down depending on your interest but generally, you should stay at or above 1%.

Don’t Lowball the Offer
There was a time when buyers could get away with making lowball offers but those days are long gone. Contrary to popular belief, making a reasonable offer will increase your chances for stronger negotiations. A higher offer is the better offer because you won’t offend the seller.

Go Easy on the Contingencies
When buying a home there can be a lot of contingencies in place ranging from waiting for the sale of another home, to inspection results to mortgage contingencies as well. Some are unavoidable but whenever possible if you can reduce the length of time for some of these processes or better yet, eliminate the contingency altogether – the seller will be more inclined to accept your offer.

Keep It Simple
Rather than bog down your offer with complex language that is hard to read and complicated to understand, make it as simple as possible. There is no need for legalese and if you can, put things in bullet point form to really make it easy for the seller. Less is more but be sure not to leave out anything important. 

Make It Personal
Sometimes multiple offers will come in and they are all very close to one another in price, terms and contingencies. Believe it or not, these are the opportunities for buyers to turn on the charm – literally. Write a personal letter explaining what you love about the house. Introduce yourself to the seller and do it in a handwritten note or card that will be memorable to them when they are considering all offers.

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Keep in mind, no two offers are the same and no two situations are the same – so you will benefit from having a strong Realtor® by your side, working in your best interests. Contact us today so we can work to getting you the home of your dreams!

Filing Last-Minute Taxes? Here Are Eight Tax Breaks Homeowners Love to Receive

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Tax time is fast approaching and if you’re like most Americans, you either filed way back in January or you’re scrambling to get them in before April 15th rolls around. With the housing market on fire lately, there are lots of new homeowners filing taxes this year and with the right knowledge, there is much money to be saved! Here are eight tax breaks available to homeowners that make tax time a little more bearable.

Interest Deduction on Construction Loans
Last year marked the comeback for new construction in many areas of the nation, with more and more buyers building to suit their own needs rather than buying existing homes. When a parcel of land is sold and a construction loan is taken out – you can deduct the interest paid on that loan.

There are some specifics though, so be sure to share the details with your tax pro and be prepared to show that the loan was for either your principal residence or second home used only for personal purposes.

Deductions on Mortgage Interest Paid At Closing
This is a favorite of homeowners since they are usually filling taxes for the first time after buying a new home and most new homebuyers can use every dime that comes to them. Toward tax time or during the beginning of the year, our lender will send a statement outlining that amount specifically. The only requirement to be able to deduct mortgage interest from your settlement is that you itemize your deductions using a Schedule A form.

Costs Associated With Purchase or Refinance Points Can Be Deducted
Mortgage fees that stem from points paid to bring down the interest rate can be deducted. There are some varying rules depending on whether the points were for a purchase or a refinance but the deduction quickly adds up in savings.

State and Local Property Tax Deductions
Cash paid for property taxes can be deducted when they are according to your home’s assessed value. The municipality will send a letter with the amount that is deductible, or you can check with your tax professional. For homeowners that pay their taxes through escrow, the deductible amount only applies to funds taken out of escrow and paid.

Private Mortgage Insurance Premiums
Though not always deductible, a lot of homeowners benefit from this deduction of the premiums paid on mortgage insurance. It applies for principal residences as well as second homes used for personal use by the owner. This is ideal for homeowners with an adjusted gross income of $100k or less or $50k for those married but filing separately and it works for insurance premiums paid during the current tax year.

Renovation or Rehab Loan Interest Deductions
When you improve your home and get a loan to cover those costs, as long as you are making improvements to the house that will increase its value, you may be able to deduct the interest from that loan. This only applies to major renovations such as updating kitchens, bathrooms, installation of new structures or other things that will increase the home’s value.

Costs Associated With Selling a Home Can Be Deducted
Every year sellers file their taxes without realizing they can deduct some of the expenses from when they sold their home. This includes things like broker fees, title insurance, expenses from advertising or repairs done during the process. There are some guidelines to follow such as the 90-day window of time within which repairs must me made from the time of sale.

Home Office Expense Deductions
If you are like countless Americans that use a designated portion of their home as an office, you can deduct expenses related to operation, maintenance and upkeep of the space. The important thing to know about this deduction is that your home office must be designated space in your home used just for this purpose. Space used to store things related to your business also applies.