8 Secrets To Getting Your Offer Accepted In A Multiple Offer Situation

8 Secrets To Getting Your Offer Accepted In A Multiple Offer Situation: Here is where a Great Agent Seals The Deal!
In this shifting real estate market comes new (and in many cases) welcome problems to have to deal with. Take the relatively new occurrence of multiple offer situations in our area lately. After months (and years) of a buyer-controlled market, we are finally seeing fewer homes available and more buyers interested in the choice properties that are out there.

So what do you do if you are a buyer faced with multiple offer competition?  You BEAT that competition!  Here are eight ways to get around those other offers, make yours stand out and GET the home of your dreams!
Avoid a Bidding War in the   First Place 
One of the easiest ways to avoid a bidding war is to act fast on your interest in a home. If you see it, like it and want it – make an offer on it! There is no reason to delay things because eventually you will have a chance to look back on the purchase while it is under contract and iron out any details. But if you don’t want other buyers fighting for the same house, beat them to it.

Keep The Emotions Out of It
Some overzealous buyers that don’t have their offers accepted lash out and retaliate against the sellers. Expressing anger and disappointment through a letter or via their agent is not a smart way to handle the situation. Often the first offer on a home is not even realized, where the seller revisits other bids received, going to their next choice. If you handle rejection gracefully, maybe with a thank you letter expressing regret but that you’re interested in the home should they change their mind, you may walk away with your dream home after all.

Bring Some Personality to Your Offer
While some agents prefer to make offers on behalf of their clients in writing and other impersonal ways, the best way to do it is by bringing an element of personality into your offer. Write a handwritten letter expressing what you love about the house and that you’ll take care of it just like they have for so many years (if applicable). This will show your sincerity in wanting the house and it will also stick in their minds when they go back to review all offers received on the property.

Choose a Communicative Agent
As mentioned in the previous point, some agents choose lackluster means of communication. When hiring your agent, be sure to select someone that is warm but also on the ball and quick.
Accessibility is key for the buyers’ agent as much as it is for the sellers’. If the seller is to gauge the level of your enthusiasm then they must be getting those signals from your agent.

Know Your Numbers
Sometimes the final sales price doesn’t matter. There will be an appraisal before the home is financed, which is the value that you will end up paying on the home. Knowing in advance gives you a head start over other buyers since you will be armed with knowledge ahead of time and can anticipate a reasonable offer accordingly. You should be aware of price per square foot as well as other comparable sales in the area. Keep in mind, there may not even be a need for a bidding war because the price might be capped by the appraisal anyway.

Don’t Stray From the Straight and Narrow
Offers that are simple, cleanly written and to the point are the ones sellers respond to the most. Especially in a multi-offer situation, sellers do not want to have to rifle through endless pages of contingencies, conditions, minor detail mongering and other unnecessary things. The easier you make it for the seller, the better your chance to get the home of your dreams. Remember that at the end of the day you can go back and identify any specific wants you may have but just wait until you have an accepted offer.

Choose Your Priorities Carefully
A common request these days is for FHA buyers to request assistance from the seller with closing costs. If you are a buyer that is faced with a multi-offer situation and you have the choice to not ask for closing costs – you may just be able to win your bid after all. Most sellers today are selling their homes after 10, 20 years and they have no idea of the recent trend of closing cost sharing. To avoid this and the potential of losing your bid on the home overall, don’t ask the seller – make alternate arrangements for closing costs. Borrow from someone. Accept a gift from a family member. Tap into your savings.

Do Better Than the Rest
An excellent tool used by buyers in these situations is to offer more than everyone else. Everyone wants more money and in today’s market sellers are already getting less than what they had expected to get. If you have found the home of your dreams pay extra money to make sure your offer is the one that is accepted and it will offset any costs you may have needed to put into a less-than-perfect property otherwise.
Remember, this is a time when more buyers are vying for fewer available homes. So nothing is foolproof and there is always the potential of not winning your bid. The best defense you can have against that happening is to be prepared in advance. Get ready to be disappointed. If the home you are looking at is perfect, chances are there are others looking at it with the same eyes too. Aside from putting into our secrets into play, the best thing you can do is to stay realistic. When the right house comes along – things will fall into place. Good luck!

1031 Tax Deferred Exchanges:

Advantages of Trading Real Estate Thru Tax Deferred Exchanges

There are three basic types of 1031 tax deferred exchanges that can take place:

1.) Straight exchanges
—two parties trade properties of equal or approximate value. This is the simplest exchange.

2.) Multi-party exchanges
—this involves three or more parties buying, selling, or exchanging properties. Don't attempt these exchanges without the aid of a tax professional; they tend to be very complex.

3.) Delayed exchanges
—this exchange allows the sale of the relinquished property and the buying of the replacement property to occur at different times as long as stringent rules are followed. This is the exchange most often used.

What's the Advantage of the 1031 in Terms of Taxes?

As the law's title indicates, the capital gains tax is deferred, but not eliminated. However deferral is a great way to leverage small real estate holdings into larger ones! Since you can postpone gains, you're able to use a tax-deferred exchange strategy to transfer equity to a larger property, all without paying taxes!

Another advantage is that there’s no limit on exchanges. This means you can make as many exchanges as you want! So, over the course of your lifetime, you can keep growing income and appreciation by adding new properties without having to pay the capital gains tax!

If you specialize in buying and renovating properties and want to keep reinvesting your profits into larger properties, then this strategy is especially attractive.

Note: If you don’t keep reinvesting, you risk being classified as a real estate dealer by the IRS and will not be able to participate in exchanges.
What Are the Basic 1031 Qualification Rules?

There are some basic rules that must be followed in order to qualify for a 1031 exchange. These include the following:

1.) The properties to be exchanged must be located in the United States. Note: You can exchange foreign property for foreign property and domestic for domestic. However, you can’t mix these exchanges together.

2.) You must trade only like-kind real estate.
3.) An exchange must be made that’s equal to or greater in both value and equity. Any cash or debt relief received above this amount is considered “boot” and is taxable.

4.) The like-kind property must be identified within 45 days of the closing on the initial property.

5.) All proceeds from the initial sale must be turned over to a"qualified intermediary" (also called a QI, facilitator, exchanger, etc.) who is the person or company playing the role of middleman.

6.) Any of the proceeds not under the control of the middleman are subject to taxation.

7.) The middleman holds the funds from the initial property in escrow until such time as the closing on the second property occurs.

8.) The middleman also assists the owner with the preparation of paperwork and other services to ensure the transaction progresses in a smooth manner.

9.) The closing on the second property must take place within 180 days following the closing on the first property.

Wow, as you can tell, this is pretty complex subject and can't completely covered here! But if you're an investor or plan to be one, I hope I whetted your appetite for this subject.

As always consult your tax and legal counsel before investing.  And please, if you have any further questions, feel free to call me.  I'd love to show you more was to benefit when investing in real estate.

Big Advantages of Selling & Buying in Winter

Fall and Winter Present Great Opportunities for Selling and Buying 

Contrary to popular belief Fall and Winter present a great opportunities for smart Sellers and Buyers. Many sellers are unsure whether or not to wait until next spring before listing their home. The confusion comes with a combination of age-old schools of thought that predict the spring season as being almost the only season that homes to sell. Not true.

Many homeowners are under the impression that homes don't sell during fall and winter, whereas in our current market the opposite is true with actual shortages of homes in several price ranges.  We are actually defying the myths of never ending days on market statistics with many properties going under contract in approximately two weeks. Here’s why.

There are so many buyers in the marketplace right now that are eager to lock in the phenomenal interest rates and there is simply not enough inventory in some parts of town.  Market conditions continue to allow a significant amounts of buying power. The interesting thing is that while it is a strong buyers’ market in that sense, sellers are still enjoying an edge with the lower inventory that comes with it being this time of year.

Regardless of which side of the fence you are on, either way you look at it the market is strong. People are out there buying. If there are fewer homes available on the market, then that only means that there is less selling competition. This of course translates into more money for you and incredibly quick, hassle-free transactions in which everyone comes out a winner.

And Now The Top Ten Reasons To Sell During Winter

1.  Fewer Showings means less hassle with less buyer traffic, but the buyers that are coming are very serious about buying a home. 

2. Less Competition- Most people wait until spring and summer to list their home, which means during the winter you will have far less competition than at any other time of the year. 

3. Homes Show Better During the Holidays- Buyers love homes that can tell a story. The holidays are a great time to show homes because the home is usually dressed up for holiday celebrations. 

4. January is the Biggest Transfer Month- Did you know that more corporate moves happen during the month of January than at any other time of year? This is  be a great reason to list your home during the winter. 

5. Timing- By putting the home on the market during the winter months you will probably have your home sold by spring and be looking at the biggest inventory of homes available when it sells. 

6. Pricing- By starting to market your home early you may be able to secure a higher price, because of less competition. 

7. Great Time to Shop- If your home sells quickly you will be able to shop for your next home during the winter and winter sellers are motivated. 

8. More Market Exposure- Because most agents and offices have less inventory during the winter so your home will have more presence and be more visible websites and more often than during the spring months

9. More Attention- Most agents will be able to devote more specialized attention to your needs during the winter because they have fewer clients to manage. This means your property gets more attention and it of your listings to more websites, search engines, and portals. 

10. The Market- Today’s interest rates are at historical lows. This gives buyers more buying power, and will be even more important when you begin shopping for your next home!

This is a Great time to buy or sell real estate. That’s why it is important to make sure in today’s market, you hire someone who knows what they’re doing and will work hard to get the job done. My knowledge of the real estate market, technology, negotiating skills, and ability to listen to my client’s needs and wants has always kept us ahead of the competition. 

Buying or selling a home in today’s greater Milwaukee, Wisconsin real estate market can be complicated without having the proper expertise and guidance throughout the process. Plan ahead to reach your real estate goals by contacting us early to make the most of the season.  As always call or email us and let us know what we can do for you.