Writing An Offer

The Complete Guide To Buying A Home In Logan Utah

by Lisa Udy on August 20, 2010

Most real estate markets around the country are considered to be a buyers market. The Logan real estate market is no different. We are in a very strong buyers market, and it only makes sense to me to give you buyers as much information as possible to ensure that a great home for a great price is in your future.

The key to purchasing a home in todays volatile market is education. In order to get the best home, at the best price, you must know the process, the market you’re purchasing, and if it’s the right time for you to buy. So, let’s start off with a little education and some common home buying tips to see if you’re really prepared to purchase a Logan home.

Is It The Right Time To Buy For Me?

Smart Moves For Logan Utah Home Buyers ~ This post gives you some basic tips to consider before  buying a home. Those tips include saving up a down payment, figuring out your finances so you know how much home you can afford, why you should get pre-qualified for a loan before you go house hunting, and being smart about the full home buying process.

5 Reasons To Buy And Not To Buy A Home In 2010 ~ Many home buyers are afraid of what the real estate market is going to do in the future, hence they sit on the fence. Yep, I just rhymed! This post gives you 5 reasons for both sides of the coin. On one hand, home are becoming more affordable, on the other hand home prices are still declining. Use this post to weigh both sides, and decide if now is right time for you.

Key Market Indicators Help Time Real Estate Markets ~ Education is the key to securing your financial future when it comes to purchasing real estate. This post lists 5 key real estate market indicators you should pay attention to. These indicators include: Existing home sales, New home building permits, Notice of defaults, Foreclosures sales, and Interest rates.

Right Time To Buy? Great! Get Educated And Hire A Realtor

How Much Home Can You Afford Without Being House Broke? ~ During the real estate bubble of the 2000′s, many buyers overstepped their abilities when it came to buying a home. This post gives you some guidelines to follow so that you don’t end up in the same situation. Knowing how much house you can buy, and how much house you can afford, are two different things. Learn from others mistakes by reading this post.

Tips To Choose A Real Estate Agent ~ As a home buyer, using a Realtor to help you through the process of buying a home should be a given. Realtors are professionals and they can save you money, time, and headaches. Don’t pick just any Realtor though. You should use these guidelines to ensure you get a Realtor that best suites your personality and one who will work hard in your corner.

Questions Every Buyer Should Ask Their Logan Utah Real Estate Agent ~ Another great post on some questions most buyers forget to ask Realtors when they are interviewing them. This post will give you some much needed help choosing the right agent for you. These questions include the availability of the agent, are their licenses in good standing, do they have assistants, and many more.

Did You Know You Can Use A Realtor To Buy A FSBO? ~ Even if you plan on purchasing a for sale by owner property, most times you can still use a Realtor. This post gives you reasons why using a Realtor to purchase a FSBO is the smart thing to do.

You Have Your Agent Now It’s Time To Narrow Down Your Options

Utah Home Loan Programs ~ Now that you have chosen an agent, get their advice lenders they recommend.  Just like Realtors, all lenders are not equal, and some do better than others. Check this post out to see what special loan programs Utah has to offer.

How To Pick The Right Logan Utah Home To Buy ~ Choosing a home can be extremely stressful. There are a lot more choices  in a buyers market. With the amount of inventory to choose from, you need to distinguish your needs from your wants. Use these tips to help you narrow down your options so you can start viewing homes.

Short Sale Process: Writing The Offer – Short Sale Approval Time Frame – Withdrawing Your Offer ~ If you’re thinking of buying a short sale, you need to understand that the short sale purchase process is much different than purchasing a normal property. This post gives you some information on the short sale process, writing an offer, the time frame of a short sale approval, and when you can withdraw your offer if things aren’t going your way.

Common Short Sale Questions Answered! ~ Short Sales are complicated, time consuming, and can become a frustrating ordeal if you’re not prepared for the process. I have put together some very common short sale questions most buyers have, and you can use this post to learn more about them. If you have any other short sale questions, leave a comment on this post and I will get them answered.

Pros And Cons Of Buying Logan Utah Foreclosures ~ Everyone is talking about buying foreclosures and what a great deal they can be. But hold on there trigger. There is more than the proverbial great deal in the foreclosure market. There are also homes that need lots of work, and a process that can leave you feeling weak in the knees as a home buyer. Learn the pros and cons of purchasing a foreclosure property.

What To Do When You Find The Perfect Home And How To Get To Closing

What To Do Before Writing An Offer On A Logan UT Home ~ When it comes time to write an offer, I would recommend a few things before you write it. Check out the market activity in the area, check out the neighborhood for crime and schools, and take a night to sleep on it. You don’t need to rush into buying a home with so many to choose from. Use these tips to become more confident about your choice.

How To Make An Offer On A Logan Utah Home ~ Once you’re ready to write your offer, here are a few things that need to be included with your offer. Make sure you setup your dates, submit a pre-qualification letter, have your agent run a market analysis on the property, and include your earnest money deposit, and more.

Due Diligence Period For Utah Home Buyers ~ Once you’re under contract, your due diligence period allows you time to obtain financing, inspect the property, and get an appraisal so you don’t overpay. Here is a list of 17 items you should check during your due diligence period.

What To Expect When Closing On A Logan Utah Home ~ During the closing process you will need a few items, and here can learn what they are. Also, depending on your states laws, you may not own the home yet. Here in Utah it usually takes 24 hours for a closing to fund and record. Get the facts about closing on a Logan Utah home in this post.

All of these articles should give you a great understanding of the real estate process. It makes you wonder, with all the information on the internet why you need to use a Realtor at all. The truth is, the information provided here, and other places on the internet, are just stepping stones.

A Realtor knows specific laws and nuances of their markets. A Realtor is also a great way to find people that can help you with your real estate transaction. We all have a database of professional lenders, contractors, inspectors, electricians, and many other parties who get involved in a transaction. No matter how much information you gather online, nothing will replace the expertise of an experience professional Realtor.

This article and all articles linked to were written by Lisa Udy, a veteran real estate broker with Platinum Real Estate Group in Logan, Utah. Many of these articles relate to other markets, and if you want to use them as guidelines with your buyers, feel free. The only request is that you link to this post from your blogs or websites with the anchor text: Home Buyers Guide. If you have any questions please feel free to contact the Lisa Udy team at: Lisa@LisaUdy.com.

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What To Do Before Writing An Offer On A Logan UT Home

by Lisa Udy on July 21, 2010

Yesterday, I wrote a post on how to write an offer on a Logan UT home, and today I wanted to give you some more input on what to do before you write an offer. Here are the things I would recommend you do before writing your offer:

Sign The ContractYou’ll Need Market Information

Knowing the local market is essential to writing an offer. Using a professional Realtor to help you gather this information will give you an advantage over going it alone. Realtors have access to MLS data that you can’t find anywhere else. Sure, you can use sites like Trulia or Zillow, but their stats are way off compared to what’s really going on in the market.

Use the local trends to gauge if the market is going up or down, if the market is a buyers market or sellers market, and what the absorption rates are. Knowing what neighborhoods are “hot or not” should be taken into consideration. You don’t want to purchase a home where home values are declining due to an influx in foreclosures.

Having access to the MLS statistics for a community gives real estate agents negotiating power when they submit offers on your behalf.  Without this data you could end up paying to much and the seller will be laughing all the way to the bank. Get the facts before you submit an offer.

Find RECENTLY SOLD Comparables

Happy HouseIf you plan on using an FHA loan, when you get an appraisal, the appraiser will use market comparables that have sold within the last three months. Why only three months? Because real estate markets today are changing faster than ever.

One month we’re up, the next month we’re down, and the next month we’re up again.  Also, as you try to gauge a descent neighborhood to purchase in, don’t put your faith in listing prices. A homes listing price is usually higher than a home sells for.

In fact, average list-to-sale price here in Cache County is currently at 92%. Which means, homes are selling 8% less than their listing prices.  There are a lot of home sellers who still have their homes priced to high in today’s market. Sorry sellers, I do understand you’re reasoning, but the stats don’t lie.

How’s The Neighborhood?

Happy NeighborsAs a real estate agent, I must follow rules, and due to fair housing laws, I can not answer many questions buyer’s have.

For example, many home buyers like to ask, “what are the demographics of a neighborhood?” I can’t answer this question. You will have to find out yourself by scoping the neighborhood in person or researching online.

Buyer’s like to know crime rates, I can’t answer that questions either. You must talk to the local police departments or reseaerch their websites for that data.  What we can divulge as Realtors are housing statistics, foreclosure rates, and absorption rates. Or anything else related to factual housing data.

You can’t get MLS information from anywhere, and even some Realtors drop the ball when educating their buyers on market trends. Seek out a couple opinions from agents on how they view the market.

If you ask a Realtor how the market is and all they tell you is the market is great, they may not be a great agent for you. Look for agents that answer your questions with specifics, or agents that would rather give you research over blanket statements. Those are the agents you want to be working with. :)


Sleep On It

Sleeping On Contracts

Everyone has buyer’s remorse, it’s normal, and it usually passes. Before you decide to write an offer, I recommend you sleep on it if possible. Sometimes you have to act quickly and I understand those situations.

Getting ready to write an offer will bring on a lot of emotions, and taking a night to let them settle should give you more confidence in your decisions; whether you decide to move forward or not. Buying a home is an emotional experience. Trust me I know.

After 10 years of selling real estate, I have seen buyers cry in sadness, jump for joy, and look like they wanted to kill someone. You d0n’t want your emotions getting in the way of your negotiations. If you get angry with a seller you may lose the house. If you get too excited you might over pay.

Before writing an offer, consult with a third party you trust, whether it’s your buddy, lawyer, or a real estate agent. They can provide level headed advice that will keep you grounded.  Now that you know what to do before writing an offer, I hope you do your homework. After all, this is only the biggest purchase you will make in your lifetime! Happy buying!!

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How To Make An Offer On A Logan Utah Home

by Lisa Udy on July 20, 2010

The first step to buying a Logan UT home is to write an offer. It’s a scary thought to write an offer on a home, especially in a down economy, but many people are still buying homes and getting great deals. Here are some steps you can take to make your offer more powerful on a Logan home:

Gather Pricing Data

Cool Modern Logan UT Home

Nobody wants to overpay on a home, especially in a strong buyer’s market like we’re in today. You need to get information on market activity and what similar homes are selling for over the last three months.

This information can be obtained from any competent real estate agent, and if you aren’t working with an agent, you can check out sites like Trulia or Zillow. However, be wary of the data gathered from those sites, they are usually way off since they don’t have access to the MLS.

You’ll also want to talk to the seller or seller’s agent to get some more information. Knowing how long the homes been on the market and what terms the seller is looking for will help you write a stronger offer. If the seller sounds desperate and has been on the market for a long period of time, you can usually get a better deal.

Ask Your Agent What You Should Offer

For those working with a real estate agent, use their advice. They should know the market and give you a price point to start at. Of course, your  real estate agent provides the advice, but you ultimately make the decision.

Using a real  estate agent as a buyer can save you from getting sued, will get you a better price, and their services are paid for by the seller. If you’re not using an agent to buy a home, know that their are many legal issues that can arise from a real estate transaction. You should at least use the services of an attorney to save your butt from a lawsuit later on.

Get A Pre-Qualification Letter Or A Bank Statement If You’re Paying Cash

Approved For A Loan

A seller won’t take your offer seriously if you don’t have proof you can purchase the home. A pre-qualification letter from a lender lets the home owner know you’re serious about purchasing the property. In order to get a pre-qual, a lender will have to run a preliminary credit report.

If you’re one of the few with the cash to buy a home, submitting a proof of funds sheet should suffice. Just print off a recent bank statement showing the cash in your account. Using cash to buy a home gives you a little extra bargaining power if you can close faster, so keep that in mind when writing an offer on your Logan UT home.

Remember Your Contingencies

As a home buyer, you have a few contingencies that will allow you to walk away from the deal. In the Utah real estate purchase contract we use, the standard contingencies are an appraisal, an inspection, and a financing contingency. If the home doesn’t appraise at your offer price, you don’t have to buy it; although most sellers now a days will lower their price to conform to the appraisal.

When buying a home, you should always get a home inspection, even on a new home. Home builders make mistakes, and older homes, a lot of times, have something lurking under the skin. If your inspection shows problems with the home, you can walk away, request the seller to fix the issue, or reduce your offer price to suit the repair costs.

Obtaining financing today is a beast of it’s own. A financing contingency allows you to walk away if something happens during the loan approval process. You can’t buy a home if you can’t get the money, this is an obvious inclusion in any contract.

Earnest Money

Blank Check Earnest MoneyAn earnest money deposit is a security deposit for the seller to take their home off the market while you go through your due diligence period. If your offer is accepted, the seller’s agent will deposit your money in a trust account.

It will be held until you close on the home and put towards the purchase price when you close.  You will lose your earnest money only if you lapse on your due diligence period and still want to get out of the contract.

It’s pretty difficult to lose your earnest money as a home buyer. As long as you stay on top of your contract dates, you should be fine.

Sumbit Your Offer

Writing an offer can be a scary ordeal, and I would recommend you sleep on it before you submit. With every client of mine, before we submit the offer, I tell them to sleep on it.  If they still want to submit the offer the next day, I give it to the seller’s agent. Of course, some of my clients are ready to go and I submit it right away.

Once you feel comfortable with the market statistics, you have your financing ready, and you’re dates are set. Submit your offer with your earnest money check, your pre-qualification letter, and head into the negotiations. Best of luck on your home purchase!

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