Bidding Process During Home Sale

HUD homes for sale are foreclosed properties but buying them is different from buying regular foreclosed properties. With HUD, homes for sale to purchase them you have to submit a bid and then go through a certain process before you can call the home your own. HUD is short for Department of Housing and Urban Development and they have initiative to help provide potential homeowners with assistance for housing. When you a HUD home for sale it was one that was bought with an FHA loan that has been foreclosed on. FHA stands for The Federal Housing Administration. The resale of these homes are different from that of others homes that have been foreclosed on.

Property inspection

• Because it is a foreclosed home, you will get the house as is and means no repair, no extra financing, and no changes. You will get it in the condition that the previous owners left it in.
• Examine the property thoroughly because if it is going to cost a lot for the repairs to be made it will be a wasteful deal
• When the price is being decided HUD will also consider the repair value so the cost will be less than what its market value is
• Check the home for sale for any cracks, problems with wiring or plumbing, leaking, etc.

Bidding process

• Your real estate agent will send a sealed bid to HUD when the property is out in the market and the offer period if open.
• The bids will be opened after the offer period closes
• The real estate agent will keep watching the website often to see if your bid has been accepted.
• If the home does not sell after the offer period, a bid can be submitted daily and it is opened the next day. The price will also be reduced
• Once a bid is accepted, the real estate agent contacts you and the deal moves forward.

One important thing to remember is that if you decide to cancel your bid it has to be done before the offer period closes.

Initial offer

• Once your bid is accepted you will sign the deal
• You will receive a settlement date, which will be approximately a couple of months instead of the forty to sixty days from the signing of the contract to close the deal and become homeowners
• If you decide not to buy the home for sale you will lose your offer money
• If it is inserted into the contract, HUD will pay approximately six percent commissions to your real estate agent.

HUD will not finance the home so you will have to secure your own financing.

 

Continue Reading

All About Negotiations

At first glance of ideal homes, buyers are already keen on placing offers. But sellers can always place a counter offer. But this doesn’t mean that you can’t place a counter back. According to real estate practices, counter offers can be placed back and forth from the seller and buyer’s sides. There is no particular limit to this. Here are some tips on how you can go through with it.

Ask for something in return.

Typically, transactions inside a home sale should be give and take. Sellers put specific price tags because they want money in exchange of their property. Buyers inspect the house and see appliances not included in the seller’s listing. Then a higher price than that of the seller is raised. This is when counter offers start. Whether or not the seller or buyer would give in to some demands, the counter offers can go back and forth. Sellers and buyers alike should remember that counter offers are made because they want something from this.

In simple philosophy, counter offers are done to tap into either a buyer or a seller’s fairness. In response to changes in prices made from both sides, requests are also slowed down.

Give incentives.

During the counter offer, remember that you should give when you want to take something. Thus, incentives in different forms will likely help. If you are on the seller side, offer buyer like paying for homeowners’ association fees for a specific period. Incentives can spell some trick on the buyer. You have just to be creative yet respectful in putting up your incentive offers.

There are so many incentives you can offer buyers. Capitalize on the primary truth that most buyers will need extra cash after the big purchase. Some other incentives you can give are gym or pool memberships, repainting, a year’s free of lawn services and a lot more.

Know when to split the difference.

It is part of the negotiation process. It is an art leading to closing deals and sealing a home selling endeavor. Low balls and high balls of the price range are exchanged. When few thousands or few hundreds of dollars appear to be the difference, you can typically accept the offer by countering a splitting of the difference. For instance, if your offer is $535 000 and your buyer wants it $530 00), split the $5000 difference to achieve $532 5000. You and the buyer meet halfway the price and both are on winning situations.

 

Continue Reading

How To Improve House Market

When houses are for sale is put on the market the homeowners want to make sure that they can sell it for as much money as possible so this is why it is important that you improve the value of your home. A homeowner can accomplish this in many ways. Some home improvement projects can be expensive while others are inexpensive. When deciding what home improvement projects to do to increase the value of houses for sale the homeowner should try to look at the house from a buyer’s perspective to see what they might see that would make the home worth the price you are asking.

Inside

• If it has been several years since the walls were painted or the colors are outdated or do not seem to go together take the time to repaint. Choose soft colors that coordinate with each other. You do not want to paint your walls a bright color. Have soft colors will give the perspective buyer the opportunity to imagine how their furniture would look in the various rooms and if the colors do not suit them it is easier to paint over soft colors than bright colors.
• Clean and organize your home. Since you are moving pack up some of the personal items such as family photos, personal items, etc and rent a storage area in which to store the boxes. Make your home less cluttered. If you have any extra furniture put those in storage also. You want to have the perspective buyer to view the home with their things in the rooms and not your stuff. It will also make the rooms seem larger without all the clutter.
• Clean the carpets and make sure they have no odor.
• Change the knobs on the kitchen cabinets to give them a new look and wipe down the outside of the cabinets and make sure they are clean and organized.

Outside

• When a perspective buyer comes to your home the first thing that they see is the front of the home and the front yard so make sure that your lawn is mowed and looks neat. If you have children, there should be none of their toys scattered in the front yard. This is referred to as “curb appeal.”
• Make sure any shrubs are neatly trimmed
• Before houses for sale are put on the market, the homeowner should have the roof inspected and replaced if necessary. This would be one of the bigger expenses to improve the value of your home.
• Make sure that the driveway has no cracks and is free of oil spots.

These are just some of the many ways in which homes for sale can improve their market value.

 

Continue Reading

How To Make Condo Eco Friendly

These days, the ‘green’ label gets thrown around a lot. There’s no end to the list of things advertised as less harmful for the environment than their traditional counterparts. Far from following the trend, the housing industry has long been ahead of the curve. Residential development continues to sit at the forefront of this commitment to green building, with alternative insulation materials going mainstream, solar panels popping up on rooftops across the country, and water-saving technology becoming the norm. But while these additions and renovations can be great, many eco-minded homebuyers don’t realize just how efficient and environmentally friendly it can be to live in multi-unit buildings. Luxury condos are green by their very nature!

The Benefits of Population Density

The more that a single structural element, utility, or appliance can be shared, the more efficient it is. In a luxury condo, a shared wall does what two separate walls would in houses. That translates to half as much building material to construct the wall, whether it’s wood, brick, concrete, etc. It’s also common for utilities to be centralized in a condominium complex, meaning that the hot water heater serves multiple units, a far more efficient use of energy than heating multiple small water heaters. The same holds true for air-conditioning and heating, which benefit from scaling up and serving multiple residences. By combining these functions that would need to be replicated at each individual home, multi-unit homes maximize efficient use of building materials and electricity.

Space to Breathe

On the other side of the equation, minimizing sprawl by sharing structures and appliances leaves more room on the property for outdoor features. Luxury condominiums have a much smaller footprint, on a per-unit basis, than individual homes. This means that the grounds can be larger and more luxurious, with water features and even small community gardens that would not be possible on many small lots.

The Cutting Edge

While luxury condos are, by their very nature, environmentally friendly, developers are increasingly using multi-unit residential construction to push the boundaries of green living. This is owed, at least in part, to the overwhelmingly green values and trends displayed by young, hip urbanites. Young professionals have shown especially significant interest in the Leadership in Energy and Environmental Design (LEED) certification for buildings. LEED certification encourages developers to incorporate alternative energy sources like solar panels for electricity or hot water. Another LEED innovation is the use of so-called grey water systems to recycle sink and drain water into the landscape. This water-saving technology is especially popular in the arid West, where drought has forced cities in California and Arizona to mandate cuts in public water.

Today, many homebuyers are interested in spending on environmentally responsible housing choices. Whether it’s a first home or a retirement pad, more and more buyers should look to luxury condos as eco-friendly options.

 

Continue Reading