What to expect when negotiating a real estate deal

Buying or selling a home is a process. It is likely to get a counter offer from either the real estate agent/seller or the buyer. It indicates the acceptance of your initial upon making a few changes that are to be agreed upon before signing the agreement.

Depending on the proposed changes, counteroffers negotiations can take place in weeks and even months. Therefore it is essential to understand the whole concept of counteroffers.  There are various reasons behind a counter offer. If you offer a closing date that is not suitable to the seller either because they want to move earlier or later, they may reject the offer. They would want to make changes to the agreement in line with their needs.

A seller may reject your purchase amount if it is way below the asking price. In this case, the real estate agent will give multiple options to the seller for them to find the value for their property. Alternatively, the seller may provide you with room to renegotiate the price or wait until the offer has expired. If a home inspector finds fault in a home you intend to buy it requires a counter offer to save you the trouble of incurring unexpected costs. If appraisals come higher or lower, it affects the mortgage amount, therefore, drawing counter offers from either the seller or buyer.

During the negotiations process it’s important to find as much information as you can about the seller/buyer. You can also ask your agent to get the information about the other person if need be. This will help you make a good negotiation plan.

Acquiring the services of an experienced real estate agent will ensure that you get the upper hand in the negotiation process. As a seller, if your house has problems, negotiations will suggest that the amount for fixing be deducted from the sale price or you can fix the roof yourself.

Smart planning can put either party at an advantage. However, a seller may be at a disadvantage when there is a problem with the home since they will have to agree to either fix the problem or sell at a lower rate. Upon receipt of a counter offer, it is important to read carefully through the contract. This will enable you to understand every aspect before you can put down your signature. Reading through the contract will also ensure that you do not tie yourself down to a disadvantage due to ignorance.

Compare the counteroffer with the original documents and establish the suitability of the counteroffer. If you are responding to a counteroffer after an appraisal considers the list price and the cost of the assessment. When you receive a counter offer before inspection and evaluation consider them first. Counteroffers may be more than one. It is essential to prepare yourself for more counter offers in the future before the closing deal is made.

When purchasing you do not want to spend all your money or time on numerous counteroffers. When the counteroffers become too many, you should walk away to the next house. As a seller, you do not want to spend your time on negotiations instead of investing your money or moving on to the next home.

Renovation choices that will cut your budget in half

There is nothing as exciting as planning a home remodelling with an approved equity loan, line of credit loan and even your own savings. The changes you can make to the house to make it more desirable and increase the value is endless. Since you will be making these changes every now and then, there is no need to overdo the finances and end up paying more on the loan and not enjoying the home.

Here is what you can do for a pocket friendly renovation that will do the trick

You should leave your toilet, sink and tub where they are

When you are planning to remodel your home, it is pretty simple to create a new plan floor. The problem is, most people do not consider what it costs to move the tubs, sinks, toilets and all the planning that is associated with the plumbing. Thinking about all these plans could be a headache and going through with the plans could cost you a lot more than you can afford. Unless the plumbing does require some replacement, you can look for other ways to renovate those areas of the home. Replacing the bath tab and adding a new color and a decorative mirror will change up the style in your bathroom for a cheaper cost

Work with what you have

An old bathtub that has digs or chips is easily fixed by renewing or filling it with fibreglass even a refinishing kit will make your tub as good as new. Fixing what you have won’t cost you as much as getting an entire renovation. You can keep the parts of your home that you like and refurbish the styles to make them look as good as new.  Save more money by using affordable materials to fix the home. 

Use affordable materials where you can

Some people prefer stone slabs or granite over the kitchen counter tops. These materials are pretty expensive and can cost you more than twice what you could have spent on the project. To cut the cost in more than half, you could mix and match the tile and add two or three expensive tiles for a unique and eye catching design. Repaint and gloss the cabinets in the kitchen, bedrooms and bathrooms. If the doors seem old, you can use the same technique to refurbish and also change the locks instead of replacing the whole doors

Solar orientation can change the perspective of your whole house

It is very important to consider all the aspects of the home when you are dealing with remodelling. Home construction and remodelling deals with more than just the furniture, floors and ceilings. Windows are a big part of the home and they can change a lot in a room. Installing larger windows that allow the light to shine will make the house appear brighter, larger and more modern. Windows on the north and south side will allow ventilation and light.

Change the light fixtures

Arguably, light makes the house brighter and bigger which is better for most home owners. You can change the location and type of fixtures to emit a stronger light into the living room area to make it appear larger and more modern.

How to prepare for cost overruns when purchasing your first house.

Additional and unexpected costs are bound to occur when purchasing your first house. Proper preparation will give you an upper hand and prevent you from being caught unaware.

The buying process is usually inclusive of all the insurance, appraisal and lender fees. These costs are easy to plan for. Other costs that are not included in the buying process vary. Buying things like home appliances may seem like small expenses in comparison to buying a house. However, these costs add up and may weigh you out especially if you just made a huge cash payment on your home.

Here is how you can prepare for such unexpected costs.

Expect the unexpected

If you acknowledge that there are expenses that will come up during the process of acquiring a house, you will keep some money aside for this occurrence. With such knowledge, you will have an opportunity to negotiate in the purchase agreement. This will help you to avoid the charges that come with having to do repairs that were unprecedented.

Homeownership also comes with utility payments such as electricity, garbage, and water. If you were living in a rented apartment, your landlord might have paid these bills for you. You will also need to include these bills in your budgets.

Hire a home inspector

A home inspector will perform all the necessary checks on your house to ensure it is worth your money. Home inspectors will review and evaluate the overall condition of your house. They will look into heating, plumbing or electrical systems and identify a problem when they see one. While you need money to hire a home inspector, it can save you from the misery of buying a not up to the standard house.

Consider your comfort.

You should consider what you expect from your house before purchasing it. Identifying things that you are not comfortable with will make sure that they are fixed before moving in. This will relieve you from the trouble of having to incur extra cost when installing things like cables.

Plan ahead

Facing the unexpected without preparation can be traumatizing. Before buying a house, you should do thorough research and budget on the same. If you are purchasing a home that needs improvements, you should compare your budget against the improvement costs. Buying a house thinking you could fix the drainage system at a few hundred dollars and realizing that it will cost you thousands of dollars is frustrating.

Likewise, when you buy an old house at a lower price and you end up spending more money on insurance makes your home more expensive than your initial budget.

To make educated decisions, research for home insurance and house prices in an area you intend to buy a house. Decide on the amount that you will make as the down payment and consider the improvements that need to be made. Come up with a precise figure for these improvements as well. This will help you to walk away from properties that are beyond your budget range.

Final word

Buying a house is a lot let scary if you know exactly what you are getting into. Thorough research and consultation will make you get ready for the unexpected issues that will occur.

Habits that will make you succeed in Real Estate

The definition of success varies from person to person. Success in the Real Estate industry cans e seen as a having more money, gaining more exposure or having a fulfilling relationship with your clients. While success comes with a sense of pride and fulfilment attaining success in the Real Estate world requires discipline. The Real Estate industry requires resilience and hard work to achieve success. It can be very tiring as it involves working around the clock with a demanding client and dealing with the competitive nature of the industry.

Here are the habits of highly successful Real Estate Agents

Consistency

Success comes with the ability to be consistent in everything you do. Keeping your word and fostering honesty with your clients will promote trust. Trust leads to a fall through sale hence success. Taking up those small things that people prefer not to get involved in will make you unique and double your chances of success.

Perseverance

The difficulties that come with the competitive nature of the Real Estate industry require an agent to find solutions to problems and keep working. Everyone who finds success has to have started from somewhere. You can struggle to find clients, listings or falling through a deal. What separates you from the rest is your willingness to survive through every setback you encounter.

Transparency

The process of homeownership might be tedious for the buyer. They will need your complete openness and honesty to make the right purchases. Building a successful business requires you to be honest since dishonesty would ruin your business as well as the dreams of aspiring homeowners.

Empathy

Fostering empathy towards your clients enables you to put yourself in your clients’ shoes. This builds more respect and trust in your business. Your clients will identify with you and will help in growing your business through successful sales. The homeownership journey is filled with many insecurities and anxiety. You need empathy to calm down your clients and convince them to buy a property with your help.

Motivation

While it feels good to draw motivation from others, it is essential to find ways to motivate yourself naturally. A self-drive has higher chances of success because whatever you do rests on your shoulder. You also do things genuinely and from the heart. This fosters effectiveness and efficiency in your work hence success.

Planning

Nobody achieves their success by accident. They plan their objectives and turn them into great businesses. The failure to plan is equal to plan to fail. As a Real Estate Agent you need to prepare your schedules properly to ensure you keep time and follow through with your clients quickly. A well laid out plan will also do your work with the so competitive and intense line of work.

Final word

Successful Real Estate agents manage their time effectively. Just like success, so is a business, so is the real estate business. Taking one step at a time will help you get to success and keep you at the top. However, it’s only continued hard work that will keep you there.

Common myths about Real Estate Agents

You have probably needed to buy or sell some property and stopped to contemplate about all the myths you have heard about Real Estate Agents. These myths come from friends or family members who may have had a bad experience with an Agent. While it’s okay to feel skeptical, the selling /buying of property can be a tedious process without the help of a Real Estate agent. It is exhausting and time-consuming to do this on your own.

Most people assume that being an Agent means that you have easy money. This is not true because Agents make money depending on the sales they make. On average property takes up to 3 months to complete a purchase. The Agent would have put three months of work featuring making follow up interviews, phone calls, and even fuel costs when visiting the property. They end up splitting the commission with the company they work for. This commission, however, is usually almost used up due to the various expenses.

Home buyers believe that it’s ok to use the homes selling agent. In today’s world, you can find almost anything on the internet. Properties listings also take place online. As a buyer, you can assume that you can purchase a property from the listings on your own without the help of an agent. It is essential to consult an agent because they are familiar with the industry. They know more about properties that you do and they can quickly point out a red flag and can tell you when to quit pursuing a particular home. They will be worth your money and will save you time and the pain of making a mistake when buying your dream home.

People tend to believe that all agents are suitable. This is a myth since not all agents are worth your money and your time. Finding the right agent can save you money and time. While looking for a good agent, you should consider their familiarity with the area you are interested in purchasing your property. An agent who knows an area well also knows all the properties on sale in that area and their history. Chances of getting the best property in that area are high as compared to an agent who needs a GPS to find their way around.

Once you start with an agent, you do not have to get stuck with them. You deserve to get a sales agent that you feel comfortable around. It is essential to check on their reviews to ensure their credibility. Since agents only get paid when they sell a property when you are a buyer. It is ok to break up with an agent if you feel discomfort towards them early before you get too involved.

It’s easy to assume that the Real Estate agents work part-time. This is probably because of the unconventional working times. This is not true because they have to put in a lot of work to make a sale. They have to follow-ups on their clients, make phone calls and a lot of visits to a property with different clients. They work for an average of 40 hours a week.