Making an Offer: Tips for Painless Purchase
Prospective buyers should obtain written mortgage approval from a lender for the amount they will spend on a home, or in the case of a condo, Buyers should also make sure their lender is able to lend on the type of complex they are interested. Using a lender who is local to Summit County and familiar with lending in Summit County is critical in this time of unsure mortgage lending practices. Finding a Realtor who knows the local market and is skilled in negotiating is also essential. The Realtor will be able to find answers to questions that could influence the purchase price.
When negotiating, prospective buyers should avoid “low-balling” their first offer; but they should have a good idea of how much room they have to negotiate. They should never reveal how much they are willing to pay and should be prepared for counter-offers. The average list to sell ratio in Summit County is 97%. Remarkably, it has been this way for roughly the past 20 years. That number, while valuable, can be misleading because it doesn’t take into consideration any price reductions that the property may have had. Basically, property in Summit County will sell, on average, for 97% of the listing price once it’s priced correctly! Ask your Realtor if the property you are looking at has had any price reductions and how many days it has been on the market. It’s also fair for your Realtor to ask the listing broker if the property has had any other offers.
Make your offer as “clean” as possible and keep in mind that having too many conditions will make your offer less attractive to the sellers. Prospective buyers should focus on trying to get their dream home at a fair price.
Finally, prospective buyers should never sign a contract for purchase and sale until they have reviewed the document very carefully.
According to Remodeling magazine's annual Cost vs. Value report, kitchen remodels are the most profitable upgrade, offering homeowners an 88 percent return on project costs. Some homeowners actually stand to lose money on a sale if they fail to modernize their kitchens and bathrooms, says Vince Butler of the Northern Virginia Building Industry Association Remodelers' Council.
On the hand, homeowners only recoup an average of 55 percent on the costs of a home office, making it the least profitable improvement. Remodeling investment returns are tied to the properties' values, as well as local market conditions.
Sellers and salespeople consider factors such as the number of bathrooms and bedrooms; curb appeal; the local school system's quality; and the home's proximity to public transportation to set a sales price. But some buyers are willing to pay tens of thousands of dollars above market price, if they fall in love with a property, says American Society of Appraisers Executive Vice President Edwin Baker.
An appraiser will determine a house's value based on the prices of similar homes that have recently sold in the area, as well as the number of bedrooms and bathrooms, yard size, additions, and the property's overall condition.
The assessed value--used to calculate the amount of property tax the homeowner must pay--is typically less than appraised and market values. To determine the home's worth, assessors will either compare recently sold homes, factoring in influences that may have boosted or reduced the sales price; tabulate the cost of replacing the home with a similar one; or calculate how much income the property would generate if it was rented.
long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com