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How to Make A Good Offer Better!

by Dennis Baum

Having been in the real estate business since 1995, it never gets any easier to relate to a client that the offer we submitted on “THE” house they wanted to purchase wasn’t the one that the seller has accepted. BUMMER!
One of the hardest lessons for today’s buyers to understand is that writing an offer doesn’t always mean that your offer will be accepted; or that the seller will even make you a counter-offer. The current inventory affecting housing in the Pine Belt requires a different strategy in order to give you the best chance to get the home you want. Following are some “tips” that you can implement to increase your chances of ending up in first place and then being the offer with whom the seller accepts to negotiate.

Make your best offer initially; or you may not get a chance to accept a counter offer. Or, if you absolutely have to have the house and know you have competition in the offering process, and will pay whatever it takes; tell the seller that you’ll pay “x” number of dollars more than the highest offer they have received. It takes a lot of guts and will cost you more money, but you may end up with the home you have to have! You might also agree to pay cash and arrange financing after closing. Be prepared to disclose to the seller where you have the cash.
Find out if closing quickly is of interest to the seller and then agree to close quickly.
If you are going to finance the purchase like most buyers, always submit your offer with a letter of pre-approval.

Increase your earnest money deposit beyond what is normal and customary. Agree to use the seller’s agent’s title company for convenience and comfort. Earnest money can be refunded if the offer isn’t accepted.
Eliminate unnecessary contingencies, like having to sell your existing home to close on the one you want to buy. Pay all normal and customary closing costs, and don’t ask for personal property that’s not included in the listing.

Shorten the inspection period. Let the seller know you can act FAST. Buy the home “as is” subject to inspections which still allows you to get your earnest money back if the inspections are unacceptable but doesn’t require the seller to make repairs.

Write the seller a hand-written, personal letter telling them why you want their home; include a picture of your family. This should be “warm and fuzzy” and pull at their heartstrings!
Remember! Making an offer on a home is much like applying for a job; you only have one chance to make a good FIRST impression!

Star Chat with DeLois

by DeLois Smith

Thank you for your wonderful patriotic spirit as so many of you joined in our 14th Annual July 4th Celebrations! Veterans of WWII, Korea, Vietnam, Desert Storm, Iraq, and Afghanistan joined together to pay tribute to POW Veteran, the late Colonel George Robert Hall. Other special guests were Pat Hall, Diane Williford, Patty and Sam Hall; Ted Tibbett, our emcee and the area’s Voice for Veterans; Rear Admiral Charles Gaouette and his wife Karen; Brigadier General Larry Harrington and his wife Rosie; Commander William Thomas and his wife Sally; Senator Joey Filligane; and Brandi Downs, a renowned artist whose portrait of Ronald Reagan hangs in the presidential library. We were also inspired by the vocal and instrumental performances of our outstanding USM Music Department….vocalist Dr. Taylor and Kerrin Hightower and the Larry Panela trio. Also special thanks to Judge Charles Greer for the delightful boat tours of Canebrake main lake enjoyed by our guests.
The local yearly market performance demonstrates frequent articles in the Wall Street Journal, Hattiesburg American, and other publications stating that there is not a national real estate market, but rather, a huge combination of very local markets. Mississippi really is very slow in economic recovery; furthermore we are all struggling from federal compliance legislation which tends to choke the life out of financial, medical, manufacturing, and small business.
The better news is that overall our Hattiesburg area sales volume is up +6%, while the number of sales from 2013 to 2014 is 866 verses 843 – which is at -2.7%. Another year-to-date increase that we are experiencing is the number of new listings for sale which is up +2.4% over this time last year - all signs of a slow, but recovering real estate market.
The area markets can be broken down into four main categories: Hattiesburg, Oak Grove, Petal, and Purvis/Sumrall. Looking at each area’s year-to-date numbers demonstrates the variances in the local markets. These numbers are derived from local HAAR MLS data.

Area Number of Sales Sales Volume
Hattiesburg -2.4%

+2.6%

Oak Grove -15.4%

-10%

Petal +14.9% +19.2%
Purvis/Sumrall -11.6% +13.5%


The DeLois Smith All Star Team’s volume is up year-to-date by +13.35% and the number of units is up +5.13%. Thanks to many of you!!


Despite any sluggishness in the economy, buying a home is still the single best, long-term investment you can make. Consider these recent statistics released by real estate guru Pat Zaby who compared the value of a down payment verses a standard certificate of deposit (CD) and the stock market.
A 3.5% down payment on a $175,000 home is $6,125.00. If you invested that amount in a CD that would earn 2%, you would have $6,372.00 in two years. The earnings would be taxed at ordinary income tax rates. It would be safe, but it wouldn’t earn much.
The same amount would grow to $7,013.00 in the stock market IF you picked the right stock or fund and it yielded 7%. The earnings would be taxed at the long term capital gains rate. The return would be greater but so would the risk.
If you were to purchase a home today that appreciated at 2% in value over the next two years, the equity in the home would grow to $18,769 due to value going up and unpaid balance going down.
More money has been lost to indecision than was lost to making the wrong decision. The economy and the housing market have caused some people to take a “wait and see” position that will likely cost lost opportunity. Our highly trained and dedicated home buying specialists are waiting for the opportunity to serve you and your family and friends. Rates are still very low; inventory is outstanding; and now is a great time to make a home buying or selling move!
Thank you again and again for your continued loyal support.
Your Grateful Realtors,


DeLois & Team
 

Displaying blog entries 1-2 of 2

Contact Information

The All-Star Team, REALTORS®
Bringing you home...again and again!
4 Willow Bend, Suite 2A
Hattiesburg MS 39402
601.545.3900
800.335.6477

The All-Star Team, REALTORS brings you over 200 years of accumulated experience along with the most innovative marketing strategies in the real estate industry. We specialize in the real estate properties located in Hattiesburg, Oak Grove, Petal, Sumrall, Purvis, Columbia, and the entire Pine Belt region. Put The All-Star Team, REALTORS® to work for you as you consider your next home sale or purchase. Experience the team approach to real estate and make us your REALTOR® for life! See how The All-Star Team, REALTORS® really is bringing the Pine Belt home again and again.