Tag: homesale

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Mortgage News Matters

Pros and Cons of Holding an Open House

What is an Open House?

An open house is a scheduled time set for potential buyers to walk through a property that is for sale. Typically hosted by a broker, the owners or renters of the property are absent from the viewing and many potential buyers are welcome to tour the space.

How Does it Work?

Typically scheduled during weekends, brokers welcome potential buyers to leisurely view the property and ask questions, they would otherwise not have the opportunity to do so without a broker present. It is customary for brokers to provide drinks and small plates for those who attend, and many provide collateral that buyers can take with them and refer to with information on the home, such as square footage, number of rooms, and information on the surrounding neighborhood.

The goal of an open house is to secure interest from buyers by providing a rare opportunity to take their time looking at a property closely, before placing an offer.

Advantages of Holding an Open House:

  1. Provides an opportunity to attract potential buyers. When an open house is planned correctly and properly marketed, it can provide a great opportunity to attract potential buyers, and possibly even lead to an offer. Many realtors suggest sellers hold an open house the first weekend that the property goes on the market – to generate the most buzz.

    Open houses can also bring in potential clients who may not have even planned for such an event but happened to be driving by. It’s a great way to appeal to potential buyers in a more casual way and low-pressure scenario.

  2. Provides feedback to realtors from visitors. Another benefit of holding an open house is for the potential for realtors to gain real feedback from visitors – both positive and negative.

    Many realtors find that potential buyers often share their feedback out loud as they walk through the home. This can give realtors crucial insight into buyers’ perceptions and any issues that could keep the owners from making the sale.

  3. Can lead to an immediate offer. If done properly, and by generating enough buzz, an open house can sometimes lead to an immediate offer. When potential buyers are browsing a home with many others also looking to buy, they can get a good sense of their competition. If competition is high, this may encourage them to make an offer much quicker than they ordinarily would otherwise.

    This is beneficial to sellers and buyers alike, as it gives the buyers a realistic idea of how many others like them are also looking to buy in their desired neighborhood.

  4. Allows sellers to cast a wide net. Showing a home to multiple buyers, rather than one at a time only widens the reach of potential buyers for the seller. It is also much more efficient to spend the same amount of time showing a home to a group of people, rather than an individual.

    This, in addition to potential feedback from viewers and an understanding of competition in the market, are huge benefits to holding an open house.

So now that we’ve covered its advantages, what are some of the disadvantages to holding an open house?

Disadvantages of Holding an Open House:

  1. Requires much effort – sometimes more than it’s worth. Planning and executing an open house is not an easy task. In addition to coordinating a time that works best for the owners to be out of the house for an extended period, making accommodations for pets or children, and removing all personal items throughout the home, putting on an open house requires money and time spent on marketing to bring viewers in. And if no offer is made – it can feel like a huge waste.

    That’s why it is important to take the time to properly plan, market, and organize for your open house, if you decide to hold one.

  2. Compared to online listings, an open house requires more time to reach potential buyers. Nowadays, most homes for sale are listed online before they even schedule an open house. And most buyers go online and browse properties from the comfort of their own home.

    Buyers can find almost all the same information online as they would at an open house, like the condition of the home, its details, and even view photos of the property from every angle. This alone, can make open houses seem unnecessary and even antiquated.

  3. Owners are typically required to leave their home for a designated amount of time. Typically, when holding an open house, the homeowners are asked to leave their home and take with them any personalized photos or memorable that can be found throughout the home.

    This can be tedious and difficult to plan for with the daily bustle of normal life. Some would rather avoid having to deal with this added stress and simply list their home online.

  4. Can open the home up to potential theft. Though there are benefits to opening your home for sale to many individuals – with hopes that with increased awareness, comes increased offers – doing so can open you up to potential theft. Open houses can give opportunities for criminals to explore a property and plan a break-in.

    If you are considering hosting an open house, make sure to hide any valuables, or take with you anything that you would not want to get stolen or damaged.
Categories
Mortgage News Matters

How to Get Your Contract Accepted: Tips on Making Your Offer

Making an offer is a thoughtful process that should be done with great care and consideration. To help, we’ve shared 8 helpful tips for getting your contract accepted.

  1. Get pre-approved. Getting preapproved by a lender before making an offer tells you how much buying power you truly have and helps pre-determine your bottom line.
  2. Offer earnest money. Earnest money is a deposit made from the buyer to the seller once the offer has been accepted and is typically kept in an escrow account. This ‘good-faith deposit’ shows the buyer’s commitment in selling the home and can be kept as cash or later applied towards the purchase of the home.
  3. Shorten inspection, or due diligence period. The due diligence period is the time between signing the contract and inspection of the property. During this time, the buyer still has the option to walk away from the sale. Shortening this period separates the serious buyers from those who are not so sure.
  4. Reduce or eliminate certain contingencies, such as inspections or move-in dates. This reduces common time-consuming obstacles to the home buying process.
  5. Include an escalation clause. Ideal for a multiple offer situation, an escalation clause states that your bid will automatically raise, if another buyer bids higher than you. This allows buyers to continually remain on top of the competition.
  6. Submit an offer letter. A personal note expressing an emotional connection to the home shows the seller that you are not just any other buyer – you genuinely care and would take great pride in owning their home. This also helps to provide buyers with a competitive edge.
  7. Make a clean offer. A clean offer is a simple offer. Meaning, it is easier to close. Clean offers refer to those that have short financing and appraisal contingencies, and a shortened due diligence period. Clean offers are essential when buyers find themselves in a competitive seller’s market.
  8. Present a strong (or best) offer price. If it is in your budget to do so, consider offering more than the asking price. This will set you apart from other buyers and provide you a competitive edge.



To learn more about making an offer and tips to getting your contract accepted, contact your local VanDyk Mortgage Loan Originator today!

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Mortgage News Matters

Sit Down with Steve Richman

We sat down with VanDyk’s new National Director of Strategic Growth and Branding, Steve Richman to talk about his new role and his plans on growing the team with a thoughtful approach while building brand awareness and bringing an exceptional client experience to every interaction.

Q: Why do you want to work with VanDyk?

Q: What sets VanDyk apart?

Q: Can you talk a little about your title and responsibilities?

Q: What can we expect to see happen in the industry in the next couple of months?

What is your perspective on customer service?

Categories
Mortgage News Matters

How to Prepare for your Homebuying Journey

So, you’ve decided you’re ready to buy a new home? Congratulations! Now you’re probably asking yourself, what’s the next step? There are plenty of things you can do to prepare yourself for the next step on your homebuying journey, and we listed a few below to help you on your way!

  1. Know your credit score. A good credit score is essential to any new or prospective homebuyer. It gives your lender insight into how reliable you are as a borrower, and ultimately, whether they will lend to you or not. To obtain a free credit report, go to annualcreditreport.com and enter your information. Once you have accessed your reports, you can review and dispute any errors you find.

  2. Consider taking a home buying class. Homebuying classes can prepare you for things you may have not even thought about as a new homebuyer. These classes can give you information on saving for a down payment, searching for the right mortgage loan program for you, working with a real estate agent and so much more. They are a great way to get answers to questions you didn’t even know you had.

  3. Implement financial planning techniques. Saving towards any large monetary goal doesn’t happen overnight. Consider implementing money-saving techniques 3-6 months before purchasing your new home. This can be by setting up automatic transfers to a savings account, savings bonuses, raises, or tax refunds, applying for a credit card with cash rewards, and by not taking on any new unnecessary expenses, such as a new car payment or lease. These simple actions can make all the difference when you’re finally ready to make your big purchase.

  4. Get pre-approved. It is helpful to get pre-approved for your mortgage loan early on in your homebuying journey. Getting pre-approved will allow you to set your budget, which in turn helps you narrow your search.

  5. Communicate regularly with your lender & realtor. One of the most important ways to prep for buying your new home is by consistently communicating with your lender and realtor, so they can help with any questions you may have. The home buying process can feel overwhelming for anyone, regardless of it being their first home or their fifth. Clear and open communication with your real estate professionals is the best way to create a seamless homebuying experience.