Danny Resendes' Blog
If a seller is motivated and your offer is the only one that comes in on a home for sale, you may have an easy time getting the home of your dreams. If there are multiple offers on a property, it’s a different story.
If there’s competition, it’s simple math that your odds in favor of you getting the home are reduced. You need something that will grab the seller’s attention. Writing an offer letter can be just what you need to sway the decision in your direction. Even if your offer is less than what other people have put on the table, an offer letter is a perfect way to get the attention of the seller.
What To Include
You may wonder what you should include in an offer letter. You’re charming the sellers in a way, but also giving them an opportunity to get to know you. If someone has lived in a home that they have loved for a long time, they’ll be happier knowing the next occupants will be just as happy living on the property.
What Do You Like About The Property?
You should include a lot of positive things involving the property and your ability to care for and maintain it. Tell the seller about the features you most love about the house. You should let the seller know that they hard work they have done over the years has paid off and you appreciate it. Do you like the skylights? Does a remodeled kitchen get your attention? Is the deck a great feature for you to entertain on? Let the seller know any and everything that enticed you to put an offer on the property in the first place.
Share Some Of Your Life
You don’t have to get overly personal or mushy, but you should include a bit about yourself and why you chose this property among the many you have seen. Maybe you grew up in the neighborhood. Maybe the home is perfect for your expanding family. Whatever the reason is for you to want this particular house you need to let the seller know.
In addition to personal details, you can include a pre-qualification letter, demonstrating your ability to afford the home. This helps sellers to feel comfortable with your financial background and continued upkeep of the property.
What Not To Include
While your plans for a property may be grandiose in your mind, don’t tell a seller what you plan to do with the proeprty in your offer letter. It’s nice that you want to update the kitchen, or re-do the bathrooms. It’s an insult of sorts to the seller so just omit these items. Keep your offer letter positive and brief and you may be well on your way to securing the property of your dreams.
Searching for a house should be a fun, exciting experience. It represents an opportunity to discover a residence that you can transform into your very own home. As such, conducting an effective home search may require both hard work and patience to ensure that you can achieve the best-possible results.
Ultimately, there are many factors to consider as you search for your ideal house, and these factors include:
A home's location can have far-flung effects on a homeowner's day-to-day activities, and perhaps it is easy to understand why.
For example, a city home may provide quick, easy access to a wide range of attractions. On the other hand, this home may be located near major highways, which could create traffic problems for those who need to commute to school or work regularly.
As you search for your dream house, consider where you want to live both now and in the future. If you enjoy the hustle and bustle of city life, you may want to pursue houses in big cities. Or, if you prefer the serenity of small town living, you can search for a top-notch home in the suburbs.
2. Home Condition
It is paramount to assess a house's condition. Otherwise, you risk making an offer on a home that may have many "hidden" problems that probably will need to be corrected in the foreseeable future.
A home requires maintenance over time, and an older house may be more susceptible than others to costly, time-intensive structural problems. Thus, depending on a home's age, you may need to account for many potential upgrades sooner rather than later.
It also may be worthwhile to find out which home upgrades that a home seller has already completed. If a seller recently replaced a house's roof or heating and cooling system or performed other major home upgrades, you may be able to reap the benefits of these house updates for years to come.
3. A Home's Price
The initial asking price of a home rarely, if ever, is set in stone. Therefore, if you find a house that is priced above your budget, you may be able to negotiate the house's price with the seller.
If you find a house that you want to buy, it helps to submit a competitive offer right away. This offer should account for the age and condition of a house, as well as the current housing market's conditions. And if the offer meets a seller's expectations, he or she should have no trouble accepting the proposal.
Lastly, if you need help searching for a house, you may want to hire a real estate agent as well. This housing market professional can keep you up to date about new houses that become available, provide plenty of homebuying tips and suggestions and help you submit an offer on your dream house. Perhaps best of all, a real estate agent is happy to respond to your homebuying questions, guaranteeing that you can make informed decisions at each stage of the homebuying journey.
When looking for a contractor online to work on a project for you, you might end up getting discouraged and afraid to hire one. There are too many stories about homeowners having terrible experiences of theft, delayed jobs, or poorly done work that required another repair.
These experiences happen everywhere but it doesn’t make all contractors bad, there are still great and trustworthy contractors out there. But how can you determine if someone is a good contractor or a swindler out for your money? Below is a list of what you should do to ensure you do not only have the best guy for the job but also that you have someone who seems trustworthy.
Do Your Research
There are various options available to get a contractor; you can use an internet search or contact local building association in your area to ask for recommendations. You can also contact your insurance company for help and take advantage of the goodwill the contracting company enjoys.
Ask For Referrals
Asking friends and family members for references for a contractor whose services they used reduces your chance of getting duped. Looking at jobs that a contractor completed in the past for relatives or friends gives you an idea on what to expect in terms of work from the contractor.
Interview A Couple
If you have gotten a few choices, to determine the best man for the job, interview a few. During the interview process ask relevant questions, negotiate prices with each and be sure to read body language.
During the interview or after but before signing the contract, make sure you satisfy all issues that need answers. It makes it easier to accomplish when you have a list of questions drafted before the interview session. Ask questions like:
- What is their association membership?
- How long have they been in business?
- Ask for referrals of recent jobs
- How long would they need to execute your project?
- What would the payment style be?
All these questions and more should be on your list. Do not feel like you are asking too much because it’s your money, and you need to be sure about getting value for the money spent.
Ask To See An Itemized Bid
Asking to see an itemized proposal from all the contractors you interviewed allows you compare prices, items required and to determine your best guy for the job. The bid also gives you a clear idea of how much would be needed to execute the project. The itemized proposal should include information on:
- Labor cost.
- Material cost.
- Work permit fee.
- And other miscellaneous expenses.
On seeing the bid, if the amount is more than what you budgeted for, you can easily adjust the scope of the plan to fit your budget.
Working with the steps detailed in this article would serve as a guide for you when next you need the service of a contractor.
You know when you buy a home that your credit score matters, but do you see all of the numbers that matter to your financial picture when you’re buying a home? Your debt-to-income ratio is one of the most critical figures that will influence if you can get a mortgage and what type of rate you can get.
What Is A Debt-To-Income Ratio?
This number is exactly what it states: the ratio of debt divided by your gross monthly income. Your credit report doesn't include any of this income information. This number is actually the best way to see if you’re living within your means or not. This way, your lender will know your monthly debt payments along with your monthly income.
If your ratio of debt is high, you may not get a loan or get less desirable interest rates than if you had lower amounts of debt. Even if you have a high credit score, your debt-to-income ratio could affect these things. In reality, a higher debt ratio will make it harder for you to pay back your debt, so it’s important to you.
How It’s Calculated
You can use an online tool to help you calculate your debt-to-income ratio. You can also use a simple formula if you’re up for doing some math yourself:
Divide your monthly debt payments by your monthly gross income then multiply that number by 100. For example:
Student loans: $400
Car loan: $300
1400/4000= 0.35 x 100= 35%
You should also be aware of something called your household ratio. The household is the amount of home-related expenses which includes property taxes, prospective mortgage, home insurance, and more. These costs are divided by your monthly income to get this ratio as well. Obviously, your household debt adds to your financial commitments and is also put into consideration by your lender.
What’s A Good Debt-To-Income Ratio?
It’s ideal that you keep your ratio less than 36%. Your household ratio should be even lower than this. It’s great to be debt free, but in the real world, that’s not always possible. Your best bet is to be responsible with your finances and work on paying your debt down as much as you can. Then, little by little all of the critical numbers that are required to get a mortgage will fall into place.
Let's face it – stress can be problematic, particularly for a homebuyer who is competing with others to find the best house at the lowest price. Lucky for you, we're here to help you minimize the guesswork associated with purchasing a house, increasing the likelihood of a stress-free homebuying experience.
Now, let's take a look at three tips to help you enjoy a stress-free homebuying journey.
1. Study the Housing Market
The housing market conditions in one city or town may vary from the real estate conditions in another. As such, you'll want to assess the local housing market closely to identify patterns and trends. This will allow you to obtain comprehensive real estate market insights that can help you become a diligent homebuyer.
Of course, don't forget to analyze the prices of recently sold houses in your city or town too. This housing market information can help you differentiate a seller's market from a buyer's one so you can tailor your homebuying journey accordingly.
2. Prep Your Finances
Although you know that you want to buy a house as soon as possible, you still have no idea how you'll pay for a residence. Fortunately, if you prepare your finances today, you'll be better equipped than ever before to enjoy a stress-free homebuying experience.
Consult with a variety of banks and credit unions to learn about all of the mortgage options at your disposal. That way, you can explore a wide range of mortgage options and select one that matches your finances perfectly.
Also, be sure to ask lots of questions when you meet with lenders. These financial institutions employ friendly, knowledgeable mortgage specialists who can help you evaluate all of your home financing options. And if you ask plenty of mortgage questions, you can gain the insights that you need to make the best-possible mortgage decision.
3. Collaborate with a Real Estate Agent
If you want to avoid stress throughout the homebuying journey, it helps to hire a real estate agent. In fact, with a real estate agent at your side, you can get the support that you need to thrive.
A real estate agent will learn about your homebuying goals and help you map out a successful homebuying journey. As a result, a real estate agent will make it easy to identify potential homebuying hurdles and ensure that you can avoid such issues.
Furthermore, a real estate agent delivers extensive assistance at each stage of the homebuying journey. He or she will help you examine a broad array of houses and find a home that is right for you. Plus, after you discover your dream house, a real estate agent will help you submit a competitive homebuying proposal.
As you get ready to enter the real estate market, it helps to plan ahead as much as you can. Take advantage of the aforementioned tips, and ultimately, you can minimize stress as you proceed along the homebuying journey.