It is amazing what twelve months can do to turn around the Real Estate Market in Metro Detroit. Even though many real estate markets around the country are depreciating, Metro Detroit is one of the hottest markets in the country right now with many communities seeing their home values appreciate over the past year. Home buyers and sellers are experiencing trends that have not been seen in over a decade. Inventory of homes on the market is depleting very quickly, and even though the market has been a buyers’ market for years, with historic low mortgage rates, the job market getting better and with these couple of factors, the market has done a 180 and we are now in a sellers’ market. If you are not prepared knowing what to expect, then you may be set up for some disappointment. I will discuss in this post, some tips on how to help increase your odds in getting that home of your dreams and how to maximize your home sale.
If you’re a home buyer right now, there is something you must be prepared to have before you even think of beginning your house hunt. It is crucial that you speak with a reputable loan officer to get your mortgage pre-approval. No seller will even consider your offer if you do not have the document that states what you’re purchasing ability is. Now most homes that are in average to better than average condition are selling within days of hitting the market. It is very important that when a home hits the market, you see this home as soon as possible. Sometimes, regardless of how quickly you get to see the home, there may be other buyers who get to the home before you do and may write an offer quickly. If so, you may experience a multiple offer situation. If you are in this situation you may want to consider some of these tips to help increase your odds in getting your offer accepted.
1. Write a letter from the heart – If there are multiple offers and a seller is looking at several purchase agreements, you need to make your offer stick out. I always suggest to my home buying clients to write a letter from the heart. This is a brief letter you will write to the seller letting them know how much you love their home and how you can see yourself, your family, your kids create new and wonderful experiences in their home. In your letter, let the sellers know how you will take care of their home and cannot wait to carry on the tradition of keeping their home in great condition.
2. Write in a clause that will let your offer go “X” amount of dollars over the highest offer presented – When you go into a multiple offer situation, you will not have any idea what the competing offers are. One thing you can do to help your odds in getting your offer accepted is write a clause in your purchase agreement that states you will go “X” amount of dollars over the highest offer submitted. For example, the clause could say “Offer will go $1,000 over the highest competing offer up to “X”.”
3. Regardless of the appraisal, agree in writing you will pay the sales price – Appraisals are still the number #1 hurdle to overcome in the home buying process. The appraisal guidelines right now are still making it very challenging for homes in this Metro Detroit Real Estate market to not only appreciate in value, but it is making it very challenging for homes to even appraise at the purchase price. With low appraisals being a common trend, put in writing that you will back your offer up and bring the difference of a possible low appraisal to the purchase price to closing. For example, you have an accepted purchase agreement for $250,000 but the home appraised for $245,000. With writing this clause into your purchase agreement, you would bring $5,000 to the closing to make up the difference in the low appraisal.
These are just some of the many tips I give to all of my home buying clientele and it is very important you have a Realtor who can help give you the upper advantage in these situations.
Now if you’re selling your home, you’re in for some good news if your home falls into one of the many highly desired communities in Metro Detroit. I have created an exclusive home selling program that generates multiple offers, reduces the time your home is on the market and minimizes your inconvenience of keeping your home in “showing ready” condition. With this program, many times we are able to bring you offers close to, if not your asking price. This program has proven to sell your home sooner than if you were to list your home traditionally. Along with your home being put on the Multiple Listing System (MLS), we will advertise your home on over 100 websites promoting that your home will be “Coming Soon”. We will have a virtual open house 24 hours a day by having a virtual tour of your home on-line. We will start to advertise your home to build up a demand of showing requests so when you’re ready, we will have home buyers ready lined up and ready to see your home starting day one. This strategy and exclusive program has proved to be very successful and often, we will sell your home on the home the first day. Visit www.OneDaySold.com for more information. Again, with the market being depleted of inventory, put your home on the market and do not allow any showings for a few days, to build up the pent-up demand for your home so when the first day of showings occur, you will have multiple showings and will increase your odds in not only getting multiple offers, but may increase your chances in getting a list price offer of above a list price offer.
Again, this is a very exciting market to be a home buyer or seller right now and I encourage you to contact me anytime to discuss your options in this market. I can be reached anytime at (248) 939-9393.