Whether buying or selling a home, the Offer To Purchase is the starting point for making the sale go through.  If the sellers do not accept the offer outright, they may make a counter-offer, which the buyers may likewise accept or counter again.

In the interest of speed and success, it’s best to keep counter-offers to a minimum.  If you are trying to sell with urgency (and who isn’t?), weigh the buyers’ offer against your need to move quickly.  Perhaps the value of the concession is quite small against the profit you’ll see upon a sale.

If you are asking $100,000 and receive an offer of $98,000, that’s equivalent to just 2% less, which is like offering $.98 instead of $1.  Similarly, buyers must also be realistic about the possible costs of “over negotiating” in today’s rapidly changing economic atmosphere.

If you balk at the sellers’ counter-offer now, and decide to walk away and begin your home search over again, you could be facing higher interest rates and/or rising home prices.  Today, time literally is money, and the longer you postpone your purchase, the more it will likely cost you.

Before making (or accepting) an offer, discuss the offer and counter-offer process with your REALTOR® from Don Kingsley Real Estate, so that you know what to expect and can be more prepared to see the transaction to a successful close.

If you are ready to make the move, whether selling or buying, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.

Now that we’ve experienced the fallout from the subprime lending disaster, there is no longer such a thing as “easy money.”  Now you need perhaps ten to fifteen percent down, an excellent credit record and verifiable proof of income when you apply for financing.

One reason for all this scrutiny is that many lenders sell their loans on the secondary mortgage market, and they are using required (and automated) software to factor in all the variables in the equation that results in a thumbs up or a thumbs down.  In other words, it’s not quite as personal as it used to be.

Save yourself time, stress and heartbreak by seeking preapproval for financing before you even look at House One.  I say “preapproval,” and not “prequalification,” because prequalification is only an “estimate” of the loan amount for which you might qualify once your application has been fully reviewed.

Preapproval puts you in the driver’s seat with sellers, because it means that you have already basically “applied” for financing with your credit report, verified income, and proven ability to make a respectable down payment.  Preapproval goes several steps beyond prequalification, and gives you the best indication of how much home you can afford.

Maximize the time spent on your home search by taking the all-important step of seeking financing first.  Then make your offer with confidence!

If you need help starting the process of prequalification and purchasing a home, call a REALTOR® from Don Kingsley Real Estate.  We’ll be happy to share our knowledge and experience with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

Yes, it’s true; many lenders in recent years have written sub-prime mortgages that could only be expected to default.  However, foreclosure is nothing new, and there are myriad reasons that a homeowner might be facing dire straits.  

Challenges might include economic hardship due to job loss, bad health or divorce, or payments that jumped too high after a rate adjustment, or simply increased cost of living outpacing income.

Whatever the reasons, the best way to avoid foreclosure is to be well educated and prepared before making a home purchase, and anticipating worst-case scenarios before choosing the loan that is right for you.

If default appears inevitable, know that there is help available, with a “short sale” being the last resort for resolution.  Such a transaction is called “short,” because the home is sold for less than the amount remaining on the mortgage, and the lender willingly accepts some of the loss.

If you’re facing foreclosure, contact your lender’s loss mitigation department immediately.  While you are in the midst of negotiations, keep a log of all phone calls - the date, time, contact person and discussion.  Lenders are overwhelmed right now, so be patient and don’t expect an immediate answer.

Whether it’s a loan adjustment or short sale, there is a solution to the problem.  Your lender and your Don Kingsley Real Estate REALTOR® are here to help.  Call your lender, and then call us.

Feel free to stop by or call our office to discuss your options.  We will be happy to share our knowledge and experience with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.