December 28, 2009

THE MYSTERY OF THE MULTIPLE COUNTER OFFER

Posted to Julie Sarton

Your home has been for sale for over a year, but finally the market is picking up and showing signs of recovery. From almost no showings, all of a sudden there have been three in two weeks; two of them came back for a second showing and seem very interested. Your agent calls in several days with the news that you‘ve received not just one offer to purchase…. you’ve received two! After reviewing them both with your agent, you discover that they’re both good offers and each have attractive features. Neither, however, is good enough at this point to accept. What to do now?

This is the perfect situation for the Multiple Counter Offer (MCO) to come to the rescue. If you counter only one of the offers, you run the risk of not being able to come to an agreement with that buyer and having buyer #2 walk away in the meantime. The MCO allows you to counter to both buyers, see how they each respond, and then choose the one you like. And, you don’t have to counter the same to both buyers, but can choose items in each offer that you want to change. For example, one buyer’s purchase price may need countered, and the other buyer’s closing date may need countered. Since the buyers will each know that there is another offer being considered, sometimes they will counter back higher than asking price to get their bid accepted. In a standard counter offer from a seller, once the buyer signs it it’s binding. In a multiple counter offer, once each buyer signs it, it goes back to the seller to pick one; once the seller signs one, it then becomes binding.

It can be a tricky transaction and both buyers and sellers should make sure they’re working with an agent that understands all the options and can explain it to their clients. SELLERS: the main downside is that if two buyers think they’re going to get into a bidding war, they could both walk away and you’ll end up with no buyers at all. BUYERS: once you receive a MCO from the seller, you must come back with your BEST AND HIGHEST OFFER, as you probably will not have another chance. Many buyers don’t believe that, and lose a home they really want (I just had this happen with a buyer). Good luck!

Posted by:Julie Sarton



December 04, 2009

Staging your home on a shoestring... the bathroom

Posted to Julie Sarton

When showing your home, the bathroom is definitely the room where cleanliness matters the most.  Buyers want to walk into a bathroom that literally sparklesand is as impersonal as a good quality hotel bathroom.  After scrubbing everything until it squeaks, including the ceramic wall tiles, tackle the rest by polishing the faucets, cleaning all the glass and mirrors, and using a squeegee on any shower doors.  Other tips to make buyers feel comfortable are:

  • Put away all personal toiletries so that surfaces are uncluttered.  No one wants to see your worn out toothbrush or what pills you take every day.
  • Have a fresh, unused bar of good smelling soap in a clean soap dish ready to bring out only for showings.
  • Pick up all rugs from the floor, and make sure your floors shine, as this conveys cleanliness.
  • Treat yourself to some new, fluffy towels and bring them out only for showings.  Once the house is sold, you can take them with you.  If your bathroom is a neutral color, make them a colorful, coordinated statement.
  • If you have room, a small dried flower arrangement, a bowl of potpourri, or a scented candle (match the new towels) can add some warmth and color.
  • Make sure the window treatments let light in and keep the toilet lid closed.
  • As in the other rooms, leave the lights on for the showing if possible.

Although it’s difficult to keep this room ready to show, it will pay off.  I can’t tell you how many times I’ve shown a home that buyers loved until they got to the bathroom and were turned off by tooth paste splotches in the sink and personal items everywhere.  A recent survey by HomeGain.com shows that home staging can result in one of the highest price increases to a home’s resale value and ranks second in a return on investment.  The #1 return on investment in this survey was cleaning and de-cluttering, the two pre-requisites to home staging.  For tips on staging the rest of your home, see: Getting Started, The Front Door, The Living Room, The Kitchen, and The bedroom.


Posted by:Julie Sarton



December 03, 2009

Waiting for the “bottom” can put you over the top!

Posted to Julie Sarton

Ahh, if we only had a crystal ball we could pick the perfect time to buy a home at its lowest price. It’s been difficult to keep up with the swings of this housing market, and even the ‘experts’ differ on predictions of its future. Will asking prices continue to decline over the next six months? There’s a good chance. Will you save money by waiting for lower prices? Probably not.

The asking price of a home is only one of the components that determine the total amount you will pay monthly over the next 25-30 years. Even though prices may lower over the next six months, there’s a good chance that interest rates will start to climb; if the housing industry continues its current recovery, the government will stop subsidizing it, and interest rates will probably start to climb from the present historic lows. If the cost of a home drops but mortgage interest rates increase, chances are your overall monthly payment will increase. And, to make matters worse, if you wait until after April 30, 2010, you will have lost the chance to qualify for the $8000 first time homebuyer’s credit, or the $6500 existing homeowner credit, making those monthly payments even higher.

This is one of the most favorable buying windows in the history of the housing industry. Do the math…low fixed mortgage interest rates, tax credits, and low home prices. This may be your window of opportunity, don’t let it pass you by. Lastly, make sure you work with a qualified realtor to help you take advantage of it all.


Posted by:Julie Sarton