Many sellers in Queen Anne and Magnolia are receiving multiple offers after listing their homes for sale. Bidding wars have pushed sales prices ever higher and this seller’s market should continue into 2017. This is obviously great for sellers but there are a few things sellers should discuss with their brokers as it relates to multiple offers. In order to win a bidding war, some buyers instruct their broker to submit an offer waiving the right to order a professional home inspection. Doing so could give this buyer a leg up on competing offers. If the terms of two competing offers are relatively similar, but one has a contingency giving a buyer an out, and the competing offer does not have this contingency, many sellers prefer the offer that does not have the inspection contingency. This thinking makes sense. The offer without the contingency is more likely to close as the buyer has one less opportunity to back out of the deal without penalty. But what happens if a structural issue comes to light after
the transaction closes? As a seller you want a clean break from the buyer. If a problem comes up after closing, and the buyer had the opportunity to do an inspection of the property, there is less chance the buyer could successfully come after the seller for damages after closing. Therefore, it could be argued that the strongest offers actually contain a condition allowing buyers to investigate the property and neighborhood. When problems are discovered by
buyers prior to closing, sellers still have leverage to negotiate the repair; it’s cost, and the quality of the work to be done. They can consider how the issue affects their decision to sell and how the cost of a repair could be shared or assumed by a buyer eager to purchase the property anyway.
Some sellers order a professional inspection of their property and provide the inspection report to potential buyers. In this scenario, some buyers will use the inspection report provided by the seller, and not order their own inspection nor attach an inspection contingency to their offer. This can be an effective strategy if carefully handled, but is not without risk. There could be a similar issue if the seller’s inspector misses something that comes to light after closing, and the buyer wasn’t given the option to order their own inspection.
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Moving 101: Simple Solutions to Streamline Your Move
Whether it’s your first move or your tenth, the process can be overwhelming. In fact, in a recent survey, commissioned by Duck brand, conducted online by Harris Poll, over half of Americans (56 percent) say packing to move is extremely/very stressful.
Some easy ideas can help you pack and unpack like a pro.
• Purge before Packing: Before loading boxes, get rid of items you haven’t used in a year or more. Make piles to sell, donate or toss. Sell valuable pieces online or to a consignment store, and donate other items in good condition to charity -- some organizations even pick things up at your home.
• Tap into Apps: Nearly half of Americans (48 percent) describe their moving style as “organized chaos” -- stating they have it all under control, even though it may not look like it. To help you truly organize the chaos, download a free app like Move Advisor or MyMove to create moving day checklists and timelines.
• Be Picture Perfect: Create a catalogue of photos before you move. Snap pictures of how your furniture was arranged, favorite knick-knacks were displayed and complex electronics were installed to make set-up easier in your new place.
• Box it Up: Over one quarter of Americans (26 percent) say finding enough boxes is frustrating when packing to move. While many are searching the local grocer or a friend’s basement for containers to reuse, it’s better to use new boxes, as secondhand boxes have often lost their strength. New, sturdy boxes, like those from Duck brand, are easy to find and available in a variety of sizes and levels of durability. Then, seal your boxes with a strong packaging tape, such as EZ Start packaging tape. It won’t split or tear, and features “Frustration Free” special release technology, so you never lose the tape end.
• Disassemble a Day Ahead: Taking apart large furniture is time-consuming. Disassemble items before moving day, so your crew isn’t bogged down unbolting beds. Keep screws and other small parts together in sandwich bags taped to the furniture to which it belongs.
Ken Graff
COLDWELL BANKER BAIN
QUEEN ANNE & MAGNOLIA NEWS REAL ESTATE SECTION
Multiple offers advice continued...
Another common practice for buyers to give themselves a competitive edge is to do their own pre-inspection. They have an inspection done before submitting an offer, and then attach the inspection contingency form with their offer indicating the home was pre-inspected, but making closing not subject to further inspection. This certainly provides a greater chance of the clean break than if no inspection was done by the buyer, but is not without its own potential issues. Multiple inspections could cause wear and tear or damage to a property and it could be impossible to determine which inspector was responsible for the damage. Multiple sewer scope cameras entering our aging sewers can actually damage the line. Also, potential buyers could be discouraged from placing an offer if they know preinspections are being done and they are not willing to do so.
I see both sides as I also represent buyers who want to win the bidding wars, and of course my sellers want to sell their homes at top price. I recommend to my clients that we discuss all issues so that they can make informed decisions. There are several other issues I discuss with sellers I represent in multiple
offer situations such as the pros and cons of allowing buyers and their brokers to present their offer in person to the seller (I am generally for it.) I discuss with them best practices for reviewing the offers, (but that is a whole ‘nother article). I also discuss with them things to look out for in offers that could increase the likelihood of the transaction to fail. Sellers don’t want just the highest offer; they want the highest offer that has the best terms which enable the transaction to close with few issues.
The various forms and contingencies available are there for a reason. They serve to protect the interests of all parties. And while it is tempting, and often profitable, to limit their use, doing so carries varying degrees of risk. Each individual case is different and should be discussed with an experienced REALTOR®. We do not make these decisions, that is up to our clients. But sellers must consider the risks and rewards of the decisions they make with respect to multiple offer situations.
Ken Graff is a native Seattle REALTOR® named to Coldwell Banker Bain’s International President’s Circle for his exemplary record of success.
How to Make Your Dream Home a Reality
Spring is peak homebuying season, but for some, a low credit score may make it difficult for their dream home to become a reality.
Nearly a third of millennials (ages 18 to 34) hope to purchase a home within the next year, but more than 40 percent may not have the credit to do so, according to a survey from TransUnion, a leading credit bureau.
In contrast, the survey found older people’s intent to purchase a home better aligns with their financial standing. For example, 17 percent of those ages 35 to 54 said they plan to buy a home within the next year -the same percent that has a super prime credit score -- an attractive trait for mortgage lenders.
As you stArt house hunting this spring, whAt mArkets Are heAting up?
The Northeast is a hot market, according to TransUnion findings, with 25 percent of respondents indicating intent to purchase a home in the region. The West was a close second, with 24 percent, followed by the South with 21 percent and 15 percent of people in the Midwest.
If you’re planning to purchase a home this year, TransUnion offers several important tips to consider to help make your dream home a reality:
• Check your credit report: Applying for a mortgage? Mortgage lenders will look at your credit score and report when you apply for a mortgage, so make sure your information is up to date.
It’s best to check your report three months before you start looking at new homes to make sure your score is in a healthy range.
• Start planning early: Your credit score is built over a lifetime of spending. Keep an eye on your score and track how your spending habits affect it.
• Build credit: Consumers with low or no credit should take steps to build a healthy credit score. How? Paying bills on time, making sure you’re keeping a low credit utilization ratio (the amount of credit you’re using out of your available credit), and even asking your landlord to report rent payments to a credit bureau such as TransUnion are all ways you can build credit.
• Shop around: Research mortgages and interest rates to receive a competitive offer. Your credit score is of the utmost importance since lenders will check your score and report to make sure you will be able to responsible pay back the mortgage loan.
• Make a financial plan: Putting down a larger down payment will lower your monthly mortgage payment, but don’t put down more than you can afford. Also keep in mind that you will need funds for closing costs, including a home inspection, before you can purchase your home.
• Keep an open mind: It may take time to build credit and save enough money for a down payment. Even if your finances aren’t in shape
for a home now, it doesn’t mean homeownership isn’t a realistic possibility for the future.
More home-buying tips can be found at www.transunion. com. Happy hunting!
(Statepoint)
Pack & unpack like a pro
duct tape. Duck Tape brand offers hundreds of colors.
• Wrap with Care: It’s no surprise that one third of Americans (34 percent) say worrying about items breaking is the most frustrating part when packing to move. Wrap fragile belongings with a reputable cushioning material, like Bubble Wrap cushioning. Dish and glass kits also provide pouches and dividers to protect delicate goods.
• Learn to Love Labeling: Avoid having to answer, “Where does this go?” by clearly labeling each box on the sides, so you’ll be able to see its destination when boxes are stacked. Or, color-code them using colored
• Moving Day Must-Haves: Clearly mark one box with immediate essentials, such as tools to re-assemble furniture; plates and utensils for feeding your moving crew; toiletries; and clothes for your first night. And, don’t forget to prepare for inclement weather -- have plastic runners on hand to cover floors if rain strikes, plus towels to wipe up wet spots. With prep and planning, you’ll complete your move in no time, so you can relax and experience life’s next adventure in your new home. (Statepoint)
s a Founding Member of Realogics Sotheby’s International Realty’s new Madison Park branch office, The “Park House”, I am proud to offer my clientele and neighbors alike an extraordinary level of service and expertise, international exposure and innovative marketing endeavors. As a long-standing resident of Broadmoor/Madison Park with over two decades of experience, I look forward to continuing my legacy as a trusted advocate for my clientele in Seattle’s preeminent neighborhoods. With the heritage of a trusted global brand, Park House represents the extraordinary, one client at a time.
Working with Laura Halliday was a real pleasure! She represents on all levels with the utmost professionalism! She is up on what is happening in the current market. Her style is warm, open, honest, clear and direct. Which helps all parties on all levels of communication and understanding!
