Connect with us

Real Estate

How to win a multiple offer battle when buying a home in D.C.

Personal letters, escalation clauses can help

Published

on

multiple offer, Gay News, Washington Blade
The D.C. market remains hot, so take advantage of these tips for winning a multiple offer battle.

If you are looking for a new home right now, you are more than aware that the market is hot. Most listings are receiving multiple offers within a week of going on the market. The past few months have been filled with highly competitive offer scenarios for buyers in Washington D.C. As a buyer, you should be prepared to enter a multiple offer scenario and receive a seller’s counter. 

If you find yourself in a multiple offer scenario, here are some effective strategies that will give you a competitive edge. We work with buyers every day to succeed in these situations. The goal is to get the home for the least amount of money as possible, and our agents will help guide you with the specifics on how to get this done.

The first step in the process is for the home buyer to understand the strategy. After reviewing this information, you’ll speak with your agent to confirm how you will move forward.

TIPS FOR WINNING A MULTIPLE OFFER SCENARIO

1. Demonstrate a Strong Financial Position. Be approved with a local lender who can get on the phone and back up your qualification. Out of town lenders with weak lender letters will make your offer unnecessarily weak. Local lenders can also settle quickly.

If you are confident in your financing, consider dropping the financing contingency. The financing contingency only protects you if your lender rejects your financing. If you are confident your loan will not get rejected, this contingency can make your offer unnecessarily weak. Ask your loan officer to have underwriting review your file or issue you an approval prior to making an offer.

Increase your Earnest Money Deposit. A large deposit shows the seller you are serious and are financially stable. You risk losing your deposit if you default.

Consider a general home inspection contingency, which would give you the right to inspect and cancel but without the right to negotiate repairs. From the seller’s perspective they won’t be “nickeled and dimed” over minor issues that may come up and you reserve the right to cancel for any reason.

Pre-Inspection: Have an inspection before a seller sets a deadline. Pre-inspections are often pared down versions where you might not get a written report. If time permits, having a full inspection is possible.

The Appraisal Contingency is often the riskiest contingency for a seller, so having a shorter or no contingency is a huge tool in winning multiple offer scenarios. You can have a partial contingency as well. For example, if the sales price is $600,000, you can stipulate the home must appraise for at least $580,000. If the home appraises for anything between $580-600k, you would proceed with the contract and pay the difference. 

2. Appeal to the Seller. Work with agents that are negotiating experts (Like Glass House Real Estate!). A great buyer’s agent will develop a relationship with the listing agent and try to get as much information as possible. They will try to find out how many offers the listing agent expects, what is in those offers, what the sellerā€™s ideal settlement scenario is, and anything else that might be helpful in crafting an offer. Once we get this info, we will move forward with trying to accommodate the seller/listing agent’s needs if they are reasonable.

Write a letter to the seller. The best letters to sellers end with a proposition to the seller that includes a counter if you are not the best offer. Include a picture as well if you can.

Escalation Clause: An escalation clause can be a valuable tool. Your offer would say ā€œI will pay “x” (starting offer) price for this home, but if the seller receives another offer thatā€™s higher than mine, Iā€™m willing to pay “y” (escalator factor) more, up to “z”” (Escalator Ceiling).ā€

An escalation clause contains an escalating factor, which is how much you are willing to pay over the next best offer. and an escalator ceiling, which caps the top price you are willing to pay for the home.

The escalation also contains an option to retain or waive the appraisal contingency. (Note: If your escalation clause is exercised by the seller, they must provide proof the other offer was valid.)

The Bottom Line. Sometimes it just comes down to price, but oftentimes the seller wants to accept a contract from the party who will most likely close without delay and drama. This is a combination of demonstrating you are well qualified and working with an agent with a track record of closing deals.

If you want to learn more about the strategies Glass House agents use to win multiple offer scenarios and how we help our buyers achieve their real estate goals, contact us today.

Khalil El-Ghoul is principal broker for Glass House Real Estate. Reach him at [email protected] or 571-235-4821.

Advertisement
FUND LGBTQ JOURNALISM
SIGN UP FOR E-BLAST

Real Estate

Donā€™t procrastinate buying your home

Some experts predict rates will fall in June

Published

on

Spring is in the air and itā€™s a great time to buy a new home.

As springtime fills the air, cherry blossoms are blooming, much of the year still lies ahead and many have started to think about how they are progressing with their 2024 goals. If the dream of buying a house was put on hold when the interest rates went from 3% to almost 8%, and life got in the way of an idea that had gotten onto your to-do list, maybe now is the time to dust it off. 

Mortgage lender Tina Del Casale from Sandy Spring Bank says, ā€œThere is still hope the Fed will be happy with inflation numbers by June to finally pull the trigger on lowering interest rates.ā€  

The rates might not be as low as they were in 2021, but historically, they are still not as high as they were 20 years ago. Some peopleā€™s parents remember getting interest rates that were 12%, 14% or even higher.   

One of the biggest questions I get at homebuyer seminars is about is the process. What is buying a house ACTUALLY like?  I usually tell them that itā€™s like anything else. One step at a time. One form at a time. One bank transfer at a time. One house showing at a time. One home inspection at a time. If you have the wherewithal to plan a vacation, you can buy a house. 

  • Finding a Realtor
  • Finding a lender to get pre-approved (how much is your budget and what is a comfortable monthly payment)
  • Are there any first-time buyer programs that could be used? Is there down payment assistance?
  • Looking at the houses.
  • Finding one you like, and putting an offer together:
    • An offer usually involves a sales contract, any special forms that the jurisdictions require (lead-based paint acknowledgements, what appliances and systems in the house are included/excluded, if the home is part of a homeowners association, or a condo association, etc.)
    • Any forms related to getting an inspection done.
    • Who is selling the house, who is buying the house, how much is it being sold for, where it is exactly, and who are the others involved in the transaction (title company, agents, etc.)?
  • Getting any inspections done.
  • Negotiating any changes in the sales price or terms, or credits for inspection items.
  • Getting the final approval for the loan and then going to settlement.

Many people get interested in buying a house, but the ā€œunknownā€ of it all can be daunting. It could be that the best way to think about it, is that like most things in life, you canā€™t cross every bridge BEFORE you get there. You just take it one day at a time. Some things will be surprisingly easy. Some things will require the advice of experienced lenders, Realtors, home inspectors and title attorneys.  

But if the process doesnā€™t begin somewhere, somehow, the idea just stays in oneā€™s head in the ā€œto do listā€ file.  And then 3 years go by, 5 years go by, 7 years go by. And your friends that DID buy a house laugh themselves to the bank when they go to sell the house they bought 3 years ago, 5 years ago, or 7 years ago.

If you need any recommendations for a local lender or Realtor, please donā€™t hesitate to ask.

Joseph Hudson is a referral agent with Metro Referrals. Reach him at [email protected] or 703-587-0597.

Continue Reading

Real Estate

Down payment strategies: Financing your home purchaseĀ 

Understanding the options key to unlocking the door to a dream home

Published

on

Looking for your dream home? First, you need to understand how to make the down payment.

Navigating the path to homeownership can be a complex journey, especially when it comes to accumulating the necessary down payment. For members of our LGBTQ community, understanding the available options for saving and financing this crucial aspect of home buying is key to unlocking the door to their dream home. Let’s explore effective methods and resources specifically designed to support LGBTQ individuals on their path to homeownership.

Traditional Savings Strategies

Saving for a down payment often begins with traditional methods such as setting aside a portion of your income into a dedicated savings account. High-yield savings accounts and automated savings plans, some offering up to 5% interest in today’s market, can expedite the process, providing a disciplined approach to accumulate funds over time. Additionally, exploring investment opportunities that match your risk tolerance can offer potential growth for your down payment savings.

Down Payment Assistance Programs

A variety of down payment assistance programs exist to help homebuyers with their initial costs. These programs often offer grants or low-interest loans to first-time homebuyers or those who haven’t owned a home in the past three years. 

It’s essential to speak with a GayRealEstate.com agent to determine what programs may be available, plus online research into local and state assistance programs, as many are designed to support individuals in specific communities, including the LGBTQ+ community.

For medical professionals, police, teachers, firefighters, and other community heroes, there are several special loan and assistance programs designed to help with home purchases, often offering benefits like down payment assistance, reduced closing costs, and more favorable loan terms.

The Hero Home Loan Program provides first responders, including police officers, firefighters, and paramedics, with benefits such as lower interest rates and reduced closing costs. This program aims to make homeownership more accessible by offering more flexible credit score requirements and down payment assistance .

For educators, firefighters, law enforcement officers, and medical professionals, the Everyday Hero Housing Assistance Fund (EHHAF) offers closing cost assistance through gift funds. This program is designed to support those who serve their communities by making homeownership more affordable, with no repayment required for the grant fundsā€‹ā€‹.

The HUD Good Neighbor Next Door Program offers up to 50% off the list price of homes for law enforcement officers, pre-Kindergarten through 12th-grade teachers, firefighters, and emergency medical technicians. This initiative aims to encourage community revitalization by assisting these professionals in homeownership within the communities they serveā€‹ā€‹.

Homes for Heroes provides assistance specifically to first responders and offers significant savings through Hero Rewards when buying, selling, or refinancing a home. On average, participants save $3,000, with the program offering real estate and mortgage specialist connections tailored to the needs of first respondersā€‹ā€‹.

LGBTQ-Friendly Lending Options

Finding a lender that understands and supports the unique needs of our LGBTQ community can make a significant difference. Some lenders and organizations specialize in offering inclusive financial products and resources to assist LGBTQ+ homebuyers. These may include specialized mortgage products, financial planning services, and guidance through the home buying process.

The journey to homeownership is a milestone that requires careful planning and support. Remember, every step taken towards saving and financing your home purchase brings you closer to the dream of homeownership.

(GayRealEstate.com offers valuable resources and advice tailored to meet the unique needs of our LGBTQ+ community in their journey towards homeownership. For more comprehensive guidance and support in navigating the home buying process, visit GayRealEstate.com choose an agent and start a no-obligation conversation today.)

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at [email protected].

Continue Reading

Real Estate

Turn your bare walls into captivating focal points

Paint, wallpaper, statement installations and more

Published

on

Whether you prefer artwork, paint, wallpaper, or statement walls, there are countless ways to adorn and decorate your walls.

Are you tired of gray walls and white kitchen cabinets with white granite or marble countertops? Have you gone back to the ā€œBuilder Beigeā€ that was popular in the ā€˜90s?

Your walls are the blank canvases of your home, waiting to be transformed into stunning expressions of your personality and style. Whether you prefer vibrant artwork, paint, eye-catching wallpaper, or statement walls, there are countless ways to adorn and decorate your walls to elevate your space. Here’s a guide to help you turn those bare walls into captivating focal points. 

Wallpaper: Wallpaper has again become a versatile option for adding texture, pattern, and color to your walls. Whether you prefer subtle designs or bold prints, there’s a wallpaper to suit every taste. 

It now even comes in peel and stick rolls, so you donā€™t have a mess of water and paste. For some new designs, check out www.spoonflower.com

Before selecting wallpaper, consider the scale of your room and the atmosphere you want to create. For small spaces, opt for light, airy patterns to make the room feel more spacious. Conversely, in larger rooms, you can go bold with intricate designs or vibrant colors to make a statement. Don’t be afraid to mix and match wallpaper with paint, or even wallpaper the ceilings for a unique and dynamic look.

Statement Walls: Statement walls are a bold way to add personality and drama to any room. From accent paint colors to textured finishes, the possibilities are endless. Consider using a contrasting color or texture to highlight a specific wall and create visual interest. For a contemporary touch, try incorporating geometric patterns or asymmetrical designs with strips of wood. Hand-painted murals are another option for creating striking statement walls. Choose a mural that reflects your interests or transports you to another world for a truly immersive experience.

Paneling/Brick: The shiplap phase may be dying out, but there are still many ways to use wood and paneling in your wall dĆ©cor. Reclaimed wood is a popular option, as are wood slats such as the ones found at www.woodpanelwalls.com. Use them on walls or ceilings, or as a background for wall-mounted televisions and sconces. Amazon also has lots of options for wood veneer available and exposed brick is popular in many contemporary homes. If you donā€™t have a brick wall to uncover, select from options such as lightweight faux brick or stone.

Artwork: Art has the power to breathe life into any room. When choosing artwork, consider pieces that resonate with you personally and complement your existing dƩcor. Experiment with a mix of styles, sizes, and mediums to create visual interest. Hang artwork at eye level to ensure it is easily visible and balanced within the space. Enhance gallery walls by arranging multiple pieces in a cohesive layout. Remember that art is subjective, so whether you choose an inexpensive poster or a gallery quality painting, select pieces that speak to you.

Photo Displays: Showcase your favorite memories and moments with a curated photo display. Whether it’s a collection of family photos, travel snapshots, or artistic prints, arranging photos on your walls adds a personal touch to your space. Try out different frames, sizes, and layouts to create a gallery-style display that reflects your unique style. It makes a nice presentation on that odd wall going up your stairs. 

Mirrors: Mirrors are not only functional but also serve as decorative accents that can enhance the visual appeal of any room. Strategically placing mirrors on your walls can create the illusion of space, brighten dark corners, and reflect natural light. Choose mirrors with interesting frames or shapes to add an extra layer of style to your dƩcor. Try different sizes and arrangements to find the perfect balance between form and function.

Textile Hangings: Textile hangings are a bohemian-inspired alternative to traditional wall art. From tapestries to woven rugs, textile hangings add warmth, texture, and color to your walls. Hang a large tapestry behind your bed as a dramatic headboard alternative or layer smaller textiles with framed artwork for a cozy, eclectic look. Consider mixing and matching different textures and patterns to create visual depth and dimension.

Adorning and decorating your walls is a creative and personal process that allows you to infuse your space with personality and style. The key is to trust your instincts and have fun with the process. Use different techniques, colors, and textures until you find the perfect combination that speaks to you and transforms your walls into works of art. With a little imagination and creativity, you can turn any blank wall into a stunning focal point that reflects your unique taste and aesthetic.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate/@properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

Continue Reading
Advertisement
Advertisement

Sign Up for Weekly E-Blast

Follow Us @washblade

Advertisement

Popular