1. Understand the process

All offers are negotiable, as your agent will tell you. When you receive an offer, you can accept it, reject it, or respond by asking that terms be modified, which is called making a counteroffer.

2. Set baselines

Decide in advance what terms are most important to you. For instance, if price is most important, you may need to be flexible on your closing date. Or if you want certainty that the transaction won’t fall apart because the buyer can’t get a mortgage, require a prequalified or cash buyer.

3. Create an offer review process

If you think your home will receive multiple offers, work with your agent to establish a time frame during which buyers must submit offers. That gives your agent time to market your home to as many potential buyers as possible, and you time to review all the offers you receive.

4. Don’t take offers personally

Selling your home can be emotional. But it’s simply a business transaction, and you should treat it that way. If your agent tells you a buyer complained that your kitchen is horribly outdated, justifying a lowball offer, don’t be offended. Consider it a sign the buyer is interested and understand that those comments are a negotiating tactic. Negotiate in kind.

5. Review every term

Carefully evaluate all the terms of each offer. Price is important, but so are other terms. Is the buyer asking for property or fixtures—such as appliances, furniture, or window treatments—to be included in the sale that you plan to take with you?

Is the amount of earnest money the buyer proposes to deposit toward the downpayment sufficient? The lower the earnest money, the less painful it will be for the buyer to forfeit those funds by walking away from the purchase if problems arise.

Have the buyers attached a prequalification or pre-approval letter, which means they’ve already been approved for financing? Or does the offer include a financing or other contingency? If so, the buyers can walk away from the deal if they can’t get a mortgage, and they’ll take their earnest money back, too. Are you comfortable with that uncertainty?

Is the buyer asking you to make concessions, like covering some closing costs? Are you willing, and can you afford to do that? Does the buyer’s proposed closing date mesh with your timeline?

With each factor, ask yourself: Is this a deal breaker, or can I compromise to achieve my ultimate goal of closing the sale?

6. Be creative

If you’ve received an unacceptable offer through your agent, ask questions to determine what’s most important to the buyer and see if you can meet that need. You may learn the buyer has to move quickly. That may allow you to stand firm on price but offer to close quickly. The key to successfully negotiating the sale is to remain flexible.

For additional information, please contact The Dan Adler Team.

But surprisingly, of those who were satisfied with owning a home, only 24 percent said it was because of home appreciation. The majority, 76 percent, had many other reasons they were happy to own their own home including the one that proves the American Dream is alive and well: pride of homeownership. Following closely behind were the freedom to control their home improvements and upgrades. All this according to HomeGain’s 2012 National Home Ownership Satisfaction Survey.

Of those who were unsatisfied with owning their home, 63 percent blamed depreciation as the root of their dissatisfaction. However, the cost of owning a home, such as paying for property taxes, homeowner’s association fees, upkeep, and routine repairs, also sucked the joy out of homeownership and led this group of 37 percent to be unhappy about homeownership.

On the bright side, most – three out of four – are very happy with homeownership even in spite of such rocky real estate times where declines in home values have crippled some homeowners severely.

The survey polled homeowners all across the country. So you might be wondering is there a connection between where you live and how satisfied you are with owning a home?

The highest percentage of satisfied homeowners comes from the Northeast where there is 77-percent satisfaction, according to HomeGain. Pulling in at a close second is the Southeast at 73 percent satisfaction. The West and Midwest were at 71 percent and 68 percent, respectively.

Those who purchased their homes within a timeframe of the past three to eight years were the least satisfied. If they bought more than eight years ago, they tended to be more satisfied.

The higher-end market was the least satisfied with owning a home, especially if they paid more than $800,000 for it. This group’s dissatisfaction rate was 69 percent. But those who purchased homes for under $75,000 are cheering. This group’s satisfaction rate was 77 percent.

Of course, a lot of homes are sold through foreclosure and short sale, which, depending on the side of the sale you’re on, can leave you satisfied or very dissatisfied. Those purchasing a foreclosed or short sale had the highest satisfaction ratings; 79 percent and 83 percent, respectively.

New and existing homes didn’t fare so well with homeowners. They were fairly dissatisfied and showed it in a 73 percent and 71 percent rating, respectively. Most seemed to have expected an increase in the value of their home and when depreciation hit, this highly disappointed them, making this the primary reason for their dissatisfaction.

An interesting statistic may reflect the need for freedom from being tied down to a home and its maintenance as well as other costs. Homeowners ranging from 18 to 25 were the least satisfied (45 percent) with owning.

On the other end of the spectrum, those homeowners between 55 to 65, were the most satisfied with their homeownership. This group’s satisfaction rating was 76 percent.

HomeGain collected some comments from some of the surveyed homeowners. Here’s how one satisfied homeowner summarizes homeownership, “Just knowing I own it. I rented a house two times after owning a home for 16 years, and I do NOT like relying on, and dealing with, a landlord! I also feel pride in owning my home. I just bought a house 8 months ago and am very happy!”

The Mayo-Clinic explains why allergies are such a serious issue. “The Mayo-Clinic gives some great tips for homeowners.Your immune system produces substances known as antibodies. Some of these antibodies protect you from unwanted invaders that could make you sick or cause an infection. When you have allergies, your immune system makes antibodies that identify your particular allergen as something harmful, even though it isn’t.”

They continue, “When you come into contact with the allergen, your immune system’s reaction inflames your skin, sinuses, airways or digestive system. The severity of allergies varies from person to person and can range from minor irritation to anaphylaxis — a potentially life-threatening emergency. While allergies can’t be cured, a number of treatments can help relieve your allergy symptoms.”

One of the biggest culprits of allergens is fabric, including the carpets under your feet. If you are a true allergy sufferer you’d be served well by upgrading your home to hard surface floors such as hardwoods, laminate, polished or stained concrete, or tile.

Carpets have a way of holding on to dust, mites, and dander. Hard surfaces on the other hand can be wiped clean.

If you are committed to carpet it’s time to step up the cleaning routine! Use a vacuum with a HEPA filter and opt for natural fiber carpets, such as wool.

For the rest of your fabrics, choose washable curtains, blankets, and throws. If you have a front-loading washer or dryer you may even have a “allergen” setting. This particular setting uses very hot water that removes 99.9 percent of allergens, such as pet dander.

For those bedding items that can’t be washed on a regular basis arm them with dust-mite covers. These pillow and mattress covers can be bought online or at your local bedding store.

Allergens also circulate through your air. If you need proof just shake out a blanket that is backlit by sunlight and watch for all those lovely floating particles. Air filtration systems can be godsends when it comes to allergy. Be sure to change filters (in your regular system as well) and use HEPA filters when possible.

To keep extra allergens out, be sure to close all of your windows during high pollen days and season. Finally, be on watch for moisture.

Kitchen and baths can be breeding grounds for mold, which is a top allergen for many people. Mold thrives in moisture rich environments, such as around tubs, sinks, and refrigerators. Clean your fridge regularly and dispose of old or moldy food. Keep water from standing around sinks and tubs and apply extra caulking where needed.

Allergens are all around us, but take a few easy steps to protect your arm and your pains will be eased this allergy season!

If you’ve got the income. If you’ve got plenty of tenure on the job. If your credit is solid. If you can otherwise past muster at the mortgage loan desk. If it’s cheaper for you to buy than it is to rent.

Yes, there are lots of “ifs,” but it’s one of the best times in America to buy a home. And it won’t last forever.

To wit

• Distressed homes– foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales, according to the National Association of Realtors (NAR). The bargain basement is open for business.

• Investors know a party when they see one. They snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, NAR reported.

• The second home market is back with a vengeance. Both investors and playhouse buyers are jumping on this bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.

• Meanwhile, owner-occupied purchases fell 15.5 percent last year.

Numbers talk

The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, which means you may have already missed rock-bottom in this sector.

The median sales prices for vacation properties was $121,300 in 2011, down 19 percent from 2010, which means you may still have a shot at the basement here.

Likewise, NAR reported the median price of all single-family homes dropped 4 percent from $170,600 to $163,500 in the fourth quarter 2010 to 2011 and, during the same period, condo prices fell almost 2 percent $163,500 to $160,800.

Housing market forecasts for a recovery remain mixed, but it’s about when, not if. If this isn’t the Year of the Dragon for the housing market, it could begin to breathe fire next year.

But consider many of those forecasts are based on lagging information. One study by John Burns Consulting says many are lagging by a full quarter and prices have been rising in many markets for a full quarter.

And then there are those record low interest rates.

Don’t get behind the curve and wait until a line forms and multiple offers are the norm, rather than the exception.

“Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today’s market,” said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez.

“But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner,” Rodriguez added.

NeighborWorks’ advice

• Be mortgage ready. If you haven’t already, check your credit reports from the only federally-sanctioned source of free reports, AnnualCreditReport.com,to make sure your credit is mortgage worthy. Don’t get taken by sound-alike websites that offer you “free” credit reports that are only “free” after you buy a credit monitoring service.

Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost or no mortgage at all. Work with a homeownership advisor at a NeighborWorks HomeOwnership Center or other NeighborWorks organization to start the homeownership process.

• Know all your costs More than just a mortgage payment, homeownership comes with insurance, tax, utility, maintenance and transportation costs, among others. Include them in your budget to determine what is truly affordable.

• Know your mortgage Fixed-rate mortgages (FRMs) offer payment certainty, while adjustable rate mortgages (ARMs) frequently provide lower initial monthly payments, but those low rates could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.

• Hire good help. Hire The Dan Adler Team. 

• Take your time. There may be some pressure to get in the market at today’s affordable prices and low interest rates, but if you move too quickly that could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district and buy only what you can truly afford, not a home based on the largest loan the lender will lend.

The latest NAR Profile of Home Buyers and Sellers showed a growing trend among recent buyers.

The latest figures show that 89 percent of buyers purchased their home with the help of a real estate agent or broker. This is a sharp increase from a decade ago in 2001, when only 69 percent of buyers enlisted the help of an agent or broker.

Why do today’s buyers buyers choose to work with an agent? Let’s look at just a few of the many reasons an agent can be your biggest ally.

First, agents are licensed professionals, which means they had to complete coursework and pass an exam in order to become and agent. They have the education and experience to help you navigate what will be one of the biggest purchases of your life.

They also have access to a wide range of properties and can guide you to those that are the best fit for you, which can save you time and energy. If you are unsure what type of property you’re interest in, an agent can help explain the pros and cons of things such as condo life versus single-family detached living.

Where are the up and coming neighborhoods? Which areas are more walkable or have access to better schools? These are all issues an agent deals with daily.

They can also ease the burden of buying by simplifying the process. They set up showings, drive you to appointments if needed, and help you handle the intricacies of negotiations.

Today’s market also presents challenges that simply weren’t present or didn’t dominate the market a decade ago. Buyers are faced with some great deals, but through some complicated channels, such as short sale or foreclosure. How does one handle these sort of contracts? Your agent or broker will know.

According to the NAR, “More than ever home buyers are relying on real estate agents and brokers to help them with their home purchase regardless of whether the home they are buying is a foreclosure, short sale, or even a FSBO sale because they need a real estate agent to help them through the process.”

Finally, buyers are unsure if now is really a good time to buy. They need to rely on someone with local market knowledge. Is this a good neighbor to invest in? Are prices still dropping in this community? How long do homes take to sell? What is the median selling price? Buyers want the best deal out there.

The 2011 Profile found that more buyers are opting against dual agency, where the agent represents both the buyer and seller. This could signal that today’s buyers are very cautious about getting into the market. While a dual agent isn’t supposed to harbor any bias, buyers now want to be extra sure they are getting the best deal possible. In fact, “60 percent of recent buyers had an oral or written arrangement with the real estate agent or broker so that the buyer’s agent only represented the buyer and not the seller.”

Don’t buy a home without an agent! Contact the Dan Adler Team to find a Realtor anywhere in North America!

It’s a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today’s market conditions have changed.

 With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish.

However, if you take action and you have a plan, there’s a good chance that your home will sell faster.

The first important action step is to bring in the most qualified expert to help. Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.

Make your home stand out. In a sea of homes for sale, you have to highlight and advertise what makes your home stand out. The upgrades, the location, the amenities, the curb appeal, the well-maintained landscape, the outdoor living space you’ve created, the “aging-in-place” remodeling you’ve done… you get the picture.

Take a pad of paper or your iPad and do a walk-through of your home. Look for all the things that a buyer would see as a benefit and list them. When you meet with your agent share these details. Your agent will be able to tell you which features are most important to highlight.

Get real on your pricing. It’s hard to deal with this next action step but it’s among the most important. Let your agent guide you to the right pricing. I’ve written columns in the past about how pricing a home too high and how it is a painful, humbling lesson. Your home will sit on the market and, in many cases, not even get walk-throughs, if it’s not properly priced.

A qualified, experienced agent, studies the market and understands realistic pricing. The agent isn’t emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.

Then when an offer comes in be sure to give careful consideration to it. If it’s reasonable take it. If the home is priced right, you will see offers come in and you must be ready to take action.

Depersonalize and declutter. You must realize when you’re selling your home, that buyers want to see the home as their own. That’s really hard to do when you have your personal mark all over it. Sellers often say, “But I live here.” Yes, that’s true, but you’re now trying to sell the home.

So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.

Also, some items that sellers have in their home might actually offend the buyer, such as game hanging on the walls. Professional stagers or agents, who also have a staging background, can help you easily decide which things should stay and which must go.

In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed, make your home stand out, and sell your home faster, even in a market that’s saturated with homes for sale. Contact the Dan Adler Team to have a free analysis done on your home.

As household spending and income adapt to meet the needs of today’s economic conditions, new single-family home have followed suite. In a surprise divergence from recent trends, homes seem to be on a growth spurt again.

According to the latest Census Bureau data homes for the first half of 2011 new home being built were following this surprising trend. Data found that in comparison to 2010 the average size of homes grew along with the number of four+ bedroom homes.

This data is surprising considering that many potential homebuyers have been sidelined by high unemployment and weak economic growth. Fed Chairman Ben Bernanke spoke recently about the slow economic recovery at the 2012 National Association of Homebuilders International Builders’ Show in Orlando, Florida.

He noted that “although some progress has been made in reversing the losses in jobs and income sustained during the recession, the pace of expansion has been frustratingly slow and the unemployment rate remains very high by historical standards. The state of the housing sector has been a key impediment to a faster recovery.”

Does this Census Bureau data mean we are on the road back to McMansions? The NAHB is asking the same questions, “These facts lead to an interesting question: how can the average home be getting bigger, more expensive, and have more amenities when the housing market remains weak and the overall economy is yet to see a robust recovery?”

They key difference in these early 2011 findings is who is building homes as well as the number of new housing starts. There were only 429,000 new housing starts in the first half of last year.

Because of recent crackdown on mortgage lending, many would-be buyers of new homes are instead waiting on the sidelines. Today’s buyers need excellent credit as well as at least 20 percent to put down. This has changed the pool of buyers and these buyers are building bigger.

Other key findings of the study were as follows:

• Average size rose to 2,522 square feet, up 6% from 2,381 square feet in 2010.
• The share with 4 or more bedrooms rose to 42%, up from 36% in 2010.
• The share with 3 full bathrooms or more jumped to 28%, up from 23% in 2010.
• The share with a finished basement jumped to 30%, up from 25% in 2010 (basement counts towards total square footage only if finished by the builder).
• The share with a 3-car garage or more reversed a six year trend, rising to 18% from 16% in 2010.
• The average sales price of homes started for-sale rose to $274,400, up from $264,900 in 2010.

To ensure more new housing starts hit the market in 2012, however, changes need to be made. Bernanke notes, “The weak housing market also impairs homeowners’ financial health and diminishes the quality and stability of neighborhoods and communities. For these reasons, and because the troubled housing market depresses construction activity and employment, we need to continue to develop and implement policies that will help the housing sector get back on its feet.”

Contact the Dan Adler Team to find out about the latest policy changes coming your way and how these could affect single-family housing across the nation.