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Are Bidding Wars Good For Sellers Of Luxury Homes?

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When your home is for sale, there’s nothing better than having multiple buyers expressing serious interest. You know one of them is going to come out on top, right?

While it seems like a bidding war would be a good thing for sellers of luxury homes in Redlands, CA — and it often can be — no sale is guaranteed until closing, which means multiple bidders can sometimes leave you empty-handed.

If you get lots of interest on your home, it’s best to protect yourself right off the bat from any potential setbacks due to competing bidders. Your real estate agent will be a tremendous asset during this period, but you can make sure you’re the one who comes out on top by taking these precautionary measures.

The Highest Price Does Not Equal The Best Deal

The benefit of a bidding war is that the numbers keep going up, but that doesn’t mean the highest price is the best offer. In fact, the highest bidders are often doing so because they are including other caveats, such as:

  • Contingencies
  • Clauses and language allowing for them to back out
  • No guarantee that funding can be lined up

Be Careful With Emotions

A relatively new step some buyers are adding to the process is sending homeowners letters about themselves and why they’d be a good fit for the home. In theory, this is a great way to single out who cares about buying your home and thus will be more likely to follow through with the deal. The problem is, if you’re already emotional about selling, you may be more susceptible to being swayed by a letter than you are about the right deal.

Stop While You’re Ahead

As bidders keep the price going up, you also have to know when to stop looking for more. If you get multiple bids on your home, you may request another round of offers. But if you come back again for a third round, you run the risk of buyers giving up and losing their interest altogether.

So What Makes A Good Deal?

While price will always be a factor in accepting an offer on your home, the other elements that can determine whether the deal is a good one include:

  • Bank preapproval letters/financing secured
  • Enthusiasm about the home and quick response to requests
  • Flexibility on contingencies and other clauses

 

 

About Us

Redlands California Homes for sale is run by Results Group. Jessica, Alan, and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.

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Is Your Credit Score Keeping You From Qualifying For A Mortgage?

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Your credit score is one of the most important factors when it comes to being approved by a lender for a mortgage. If it’s too low, you’ll be flat-out rejected, but if it’s not high enough you won’t have access to the lowest rates and best terms.

But there are multiple types of credit scores: which one are lenders looking at when looking at your mortgage loan application? Your scores will be pulled from all three credit bureaus, Equifax, Experian, and TransUnion, each of which uses a different version of the traditional FICO® scoring method.

The good news is, you can check your scores via each of the bureaus’ websites before you apply for a mortgage, but it won’t be free. While you are entitled to a free credit report from each bureau each year, you’ll need to pay to access your actual scores.

Keep in mind that because scoring models used by each bureau are different, and because some lenders may only report to a specific bureau, your score may look different at each one. When this happens, lenders will typically look at the middle number of the three.

The bulk of mortgages issued are conventional loans, in which most lenders are going to expect a score of at least 620 for approval. But that’s the minimum credit score needed, so you won’t get access to the lowest rates; for that, you’ll need a score of 740 or higher.

But there are also FHA loans which are designed to have an easier qualification process for home buyers. With an FHA loan, you’ll need a credit score of at least 500 to qualify for a loan with a 10% down payment, whereas a score of 580 or higher can get you access to a down payment of only 3.5%.

 

About US

Redlands California Homes for sale is run by Results Group. Jessica, Alan and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general  in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.

 

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Interest Rate Rises: What This Means For Your Mortgage Prospects

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It’s that time again: the Federal interest rate is on the rise and showing signs of continuing to do so before the year ends.

So far, the Fed has focused mostly on raises to short-term interest rates, which includes things like credit cards. For the most part, rates for mortgages have been left to a slower climb.

But that is likely to change.

What steps should you take if you plan on taking out a mortgage in the near future? Is now the time to make a move – literally?

You won’t see much immediate change with mortgage rates.

While rates for mortgages are going up, they’re not tied to short-term Fed rate changes, so you won’t see as much of a difference in your interest rate. Taking out a mortgage now is a good idea if you want to lock in current rates and you have the security and means to do so. However, think carefully about fixed-rate vs. adjustable mortgages during this time. A fixed rate will lock you into current terms, which aren’t too bad, but an adjustable rate mortgage can leave you susceptible for the rises that we know are coming. On the other hand, an adjustable rate will let you take advantage of the dips that tend to follow rapid rate raises.

Make sure you have job security.

A side effect of rising rates is a slow-down in many business sectors. Companies tend to downsize or freeze hiring practices given the new costs of doing business. If you’re not entirely confident that your income source is secure, now might not be the right time to take on a mortgage.

It’s not a great time for home equity loans.

While your rising credit card interest rate may be causing concern about debt, taking out a home equity loan at a period like this can mean you’re getting yourself right back into a situation of debt. The Fed has made it clear that higher rates are coming, so focus on paying off your debt without taking on a new one.

 

About US

Redlands California Homes for sale is run by Results Group. Jessica, Alan and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general  in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.

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How Long Does It Take To Sell A Home?

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One of the most frustrating parts of selling your home is the waiting. You have to wait for offers to come in, for documents to be signed, inspections to be done, and then more waiting until you actually receive any sales proceeds.

So how long does it take to sell your home from start to finish?

The truth is, no one can tell you that upfront. The sales process will look different for each transaction, and you’ll be depending on a whole slew of people to hold up their end of the bargain.

However, you can estimate an average length of time it will take to sell your home based on the factors that will most influence it.

What does the market look like? If you’re selling property in Orange County, you’ll find that the market is to your benefit – 2018 started with the smallest inventory of homes for sale in the last five years.

What is the surrounding economy like? If you live in Irvine, does the price of your home stand up to comparable others around it? You need buyers available in the area, so if you list your property too high, it may end up sitting longer.

What are recent sales like? Look at those comps and see what similar houses are selling for and how your home looks compared to those.

How desirable is the area? If you are steps from the water, you’ll probably have people knocking down your door to make an offer on your home. But if you’re in an area that is changing or is considered less-desirable, you may not see as much activity.

How proven is your real estate agent? Has your seller’s agent been working in the area for years? If they’re just starting out, they may give you plenty of attention, but it may also take them longer to sell your home.

How flexible are you in negotiations? When someone makes an offer, your agent needs to go to their agent to discuss negotiations, and their agent will ultimately bring that back to the buyers. Meanwhile, you’re the one who waits. Decide on what you’d be willing to give up to make the sale happen.

Source

www.ocregister.com/2018/01/04/no-end-in-sight-housing-market-still-has-legs-economists-say/

 

 

About US

Redlands California Homes for sale is run by Results Group. Jessica, Alan and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general  in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.